CSR and Sustainable Development : a Multinational ...

CSR and Sustainable Development : a Multinational Perspective

Editors Prof. Saurabh Mittal Dr. Anu Gupta ISBN: 9781634153270 Published by:

Society for Education & Research Development India

CSR and Sustainable Development:


A Multinational Perspective


ISBN: 978-1-63415-327-0

ISBN: 978-1-63415-327-0

Copyright: Society for Education & Research Development, India






Edited By:

Edited By:

Prof. Saurabh Mittal

Prof. Saurabh Mittal

Asia-Pacific Institute of Management 3&4 Institutional Area, Jasola, Sarita Vihar New Delhi – 110025 India [email protected]

Asia-Pacific Institute of Management 3&4 Institutional Area, Jasola, Sarita Vihar New Delhi – 110025 India [email protected]

Dr. Anu Gupta

Dr. Anu Gupta

Seth Jai Parkash Mukand Lal Institute of Engg and Technology Chhota Bans, Radaur Yamunanagar - 135103 Haryana, India [email protected]

Seth Jai Parkash Mukand Lal Institute of Engg and Technology Chhota Bans, Radaur Yamunanagar - 135103 Haryana, India [email protected]

ISBN : 978-1-63415-327-0

ISBN : 978-1-63415-327-0



Society for Education & Research Development

Society for Education & Research Development

V: Salempur Banger, Yamuna Nagar, Haryana - 135103 INDIA E-Mail : [email protected] Phone No. : +91-9136014181 www.serd.org.in

V: Salempur Banger, Yamuna Nagar, Haryana - 135103 INDIA E-Mail : [email protected] Phone No. : +91-9136014181 www.serd.org.in

Acknowledgements

Acknowledgements

The compilation of this edited volume has been possible with the sincere and timely efforts of a number of intellectuals. We are indebted to all the Authors and Contributors for reposing their confidence in us, sending their original contributions and working as per the specific timelines. We are thankful to the reviewers from industry and academia, who worked so hard to make this work a novel piece. Our special thanks goes to Mr. Anil Kumar Pundir (SERD, India) and Mr. A K Shrivastava (Chairman, Asia-Pacific Institute of Management, New Delhi), without his inspiration and support, this book would have never been possible. Dr. J P Banerjee (Director, JMIT, Radaur) has always been a constant source of motivation, his blessings and support have proved vital in the success of this Endeavour.

The compilation of this edited volume has been possible with the sincere and timely efforts of a number of intellectuals. We are indebted to all the Authors and Contributors for reposing their confidence in us, sending their original contributions and working as per the specific timelines. We are thankful to the reviewers from industry and academia, who worked so hard to make this work a novel piece. Our special thanks goes to Mr. Anil Kumar Pundir (SERD, India) and Mr. A K Shrivastava (Chairman, Asia-Pacific Institute of Management, New Delhi), without his inspiration and support, this book would have never been possible. Dr. J P Banerjee (Director, JMIT, Radaur) has always been a constant source of motivation, his blessings and support have proved vital in the success of this Endeavour.

Our sincere thanks to Mr. Rusen Kumar (INDIACSR), Dr. R K Garg (Coal India Ltd.), Mr. Pratap Bhanu Singh (Advisor- IRCON India Ltd.), Sh. Ashwini Kumar (Ex-GM CSR at BHEL India), Dr. Surendra Kumar (Professor- Asia-Pacific Institute of Management, New Delhi), Dr. Anand Rai (Army Business School, Greater Noida) and other CSR leaders who have motivated and helped us a lot in this project. We are thankful to the members and board of SERD (Society for Education Research and Development) for having confidence in us for this project and providing us such an opportunity to bring together the knowledge from all the corners of the world in the form of an Edited Book on CSR and Sustainable Development.

Our sincere thanks to Mr. Rusen Kumar (INDIACSR), Dr. R K Garg (Coal India Ltd.), Mr. Pratap Bhanu Singh (Advisor- IRCON India Ltd.), Sh. Ashwini Kumar (Ex-GM CSR at BHEL India), Dr. Surendra Kumar (Professor- Asia-Pacific Institute of Management, New Delhi), Dr. Anand Rai (Army Business School, Greater Noida) and other CSR leaders who have motivated and helped us a lot in this project. We are thankful to the members and board of SERD (Society for Education Research and Development) for having confidence in us for this project and providing us such an opportunity to bring together the knowledge from all the corners of the world in the form of an Edited Book on CSR and Sustainable Development.

We appreciate the designers, production experts and officers at Enriched Publishers, who worked with interest and devotion to ensure that the book is available for launch in the International Conference on CSR & Sustainability, Bangkok (Thailand) on June 03, 2013.

We appreciate the designers, production experts and officers at Enriched Publishers, who worked with interest and devotion to ensure that the book is available for launch in the International Conference on CSR & Sustainability, Bangkok (Thailand) on June 03, 2013.

Finally, an honorable mention goes to our parents, family members and friends for the time stolen out of their share, their understanding and support in completing this project.

Finally, an honorable mention goes to our parents, family members and friends for the time stolen out of their share, their understanding and support in completing this project.

Anu Gupta

Anu Gupta

Saurabh Mittal

Saurabh Mittal

Editorial Board

Editorial Board

1. Dr. Anil Vohra, Kurukshetra University, Kurukshetra, India

1. Dr. Anil Vohra, Kurukshetra University, Kurukshetra, India

2. Dr. Vishnu Srivastava, CEERI, Pilani, Rajasthan, India

2. Dr. Vishnu Srivastava, CEERI, Pilani, Rajasthan, India

3. Dr. Vikas Kumar, Asia-Pacific Institute of Management, New Delhi, India

3. Dr. Vikas Kumar, Asia-Pacific Institute of Management, New Delhi, India

4. Prof. R Srinivasan, Indus Business Academy, Greater Noida, India

4. Prof. R Srinivasan, Indus Business Academy, Greater Noida, India

5. Dr. Ajit Kumar, Indira Gandhi National Open University, New Delhi

5. Dr. Ajit Kumar, Indira Gandhi National Open University, New Delhi

6. Dr. Amar Patnaik, Malaviya National Institute of Technology, Jaipur, India

6. Dr. Amar Patnaik, Malaviya National Institute of Technology, Jaipur, India

7. Mr. Pratap Bhanu Singh (Advisor- IRCON India Ltd.)

7. Mr. Pratap Bhanu Singh (Advisor- IRCON India Ltd.)

8. Sh. Ashwini Kumar (Ex-GM CSR at BHEL India)

8. Sh. Ashwini Kumar (Ex-GM CSR at BHEL India)

9. Dr. Surendra Kumar (Professor- Asia-Pacific Institute of Management, New Delhi)

9. Dr. Surendra Kumar (Professor- Asia-Pacific Institute of Management, New Delhi)

10. Dr. Anand Rai (Army Business School, Greater Noida)

10. Dr. Anand Rai (Army Business School, Greater Noida)

11. Dr. Emmy Indrayani, Gunadarma University, Jakarta, Indonesia

11. Dr. Emmy Indrayani, Gunadarma University, Jakarta, Indonesia

12. Mr. Rusen Kumar, IndiaCSR, India

12. Mr. Rusen Kumar, IndiaCSR, India

13. Dr. R K Garg, Coal India Ltd., New Delhi, India

13. Dr. R K Garg, Coal India Ltd., New Delhi, India

14. Mr. Subhash Bhaskar, MMTC Ltd., New Delhi, India

14. Mr. Subhash Bhaskar, MMTC Ltd., New Delhi, India

Preface

Preface

In the recent years, the corporate has become more involved and active in the works related to social development. Various compliances and directives issued by the business forums and governments have started the regime of responsible business. Focus is shifting from philanthropy to strategic CSR. Not only corporate, but the public sector organizations and academic institutes are also coming forward for the social good. This edited book presents the recent developments in the domain of CSR & Sustainable Development from various parts of the world.

In the recent years, the corporate has become more involved and active in the works related to social development. Various compliances and directives issued by the business forums and governments have started the regime of responsible business. Focus is shifting from philanthropy to strategic CSR. Not only corporate, but the public sector organizations and academic institutes are also coming forward for the social good. This edited book presents the recent developments in the domain of CSR & Sustainable Development from various parts of the world.

The business landscape is changing right before our eyes and whether we acknowledge it or not, we can't escape its impact. One new dimension of the business strategy has emerged across the globe and that is the sensitivity to the Society in form of Corporate Social Responsibility. Since the formal adoption by the modern enterprises, the topic of social responsibility has attracted several debates and controversies in various parts of the world. Some countries have an age-old culture for Corporate Philanthropy while countries like India have formally included CSR in the 2013 Companies Act in India. Large number of organizations have already started following the directives in the act, about constituting the board of directors, independent directors, their CSR project plan, execution and monitoring, impact assessment and reporting. In the near future we would see the medium and small enterprises too complying with the CSR directives.

The business landscape is changing right before our eyes and whether we acknowledge it or not, we can't escape its impact. One new dimension of the business strategy has emerged across the globe and that is the sensitivity to the Society in form of Corporate Social Responsibility. Since the formal adoption by the modern enterprises, the topic of social responsibility has attracted several debates and controversies in various parts of the world. Some countries have an age-old culture for Corporate Philanthropy while countries like India have formally included CSR in the 2013 Companies Act in India. Large number of organizations have already started following the directives in the act, about constituting the board of directors, independent directors, their CSR project plan, execution and monitoring, impact assessment and reporting. In the near future we would see the medium and small enterprises too complying with the CSR directives.

The need to have robust public-private partnerships to engineer social change in the growing economies. Regional and trade groups of nations like BRICS, ASEAN, SAARC, G-8 need more inter-country understanding and collaboration on various issues related to environment, women rights, child labour, ethical business practices etc. Concepts like Ethical Business, Supply Chain Management, Green Production (Zero Defect and Zero Effect) are now discussion point of the corporate.

The need to have robust public-private partnerships to engineer social change in the growing economies. Regional and trade groups of nations like BRICS, ASEAN, SAARC, G-8 need more inter-country understanding and collaboration on various issues related to environment, women rights, child labour, ethical business practices etc. Concepts like Ethical Business, Supply Chain Management, Green Production (Zero Defect and Zero Effect) are now discussion point of the corporate.

Especially, when the charity work is not directly contributing to the profits of the company, it is considered to be an important factor for enhancing the company goodwill. Hence, the need of adopting sustainable practices, in addition to bringing goodwill helps a company remain profitable, is the need of the hour. CSR is being looked upon as one of the newest management strategies where companies try to create a positive impact on society while doing usual business in some added/ modified form. All the companies have common main agenda but somewhat different CSR goals. Stake holders of every company are increasingly taking an interest in “the outer circle”-the activities of the company and how these are impacting the environment and society. The recent researches have shown that the customer is also becoming more sensitive to the social issues like poverty eradication, education, medical and health related issues, pollution, child labour etc. and is ready to pay even 10% extra for a product/service from an ethical company!

Especially, when the charity work is not directly contributing to the profits of the company, it is considered to be an important factor for enhancing the company goodwill. Hence, the need of adopting sustainable practices, in addition to bringing goodwill helps a company remain profitable, is the need of the hour. CSR is being looked upon as one of the newest management strategies where companies try to create a positive impact on society while doing usual business in some added/ modified form. All the companies have common main agenda but somewhat different CSR goals. Stake holders of every company are increasingly taking an interest in “the outer circle”-the activities of the company and how these are impacting the environment and society. The recent researches have shown that the customer is also becoming more sensitive to the social issues like poverty eradication, education, medical and health related issues, pollution, child labour etc. and is ready to pay even 10% extra for a product/service from an ethical company!

This edited book has total thirty chapters in the form of research articles and case studies on Corporate Social Responsibility and Sustainable Development. These thirty chapters have been arranged in the form of six units, covering the multiple issues and cases in that domain.

This edited book has total thirty chapters in the form of research articles and case studies on Corporate Social Responsibility and Sustainable Development. These thirty chapters have been arranged in the form of six units, covering the multiple issues and cases in that domain.

First unit on Carbon Credits, Waste Management and Environmental Sustainability has paper highlighting the issues related to opportunities for entrepreneurship from waste management and recycling of waste materials. Chapter on Climate change and its impact on women livelihood presents a reality of the modern society, where the development is having adverse effect on the planet and its habitants. The chapter on CSR and environmental responsibility by Saudi Companies presents the various activities being carried out by them and their impact on the performance of the companies. Along with the climate change the cases related to Natural Disaster Management have also been included in this unit. Hence the first unit discusses multiple dimensions like Human aspect, waste management, environmental sustainability and disaster management.

First unit on Carbon Credits, Waste Management and Environmental Sustainability has paper highlighting the issues related to opportunities for entrepreneurship from waste management and recycling of waste materials. Chapter on Climate change and its impact on women livelihood presents a reality of the modern society, where the development is having adverse effect on the planet and its habitants. The chapter on CSR and environmental responsibility by Saudi Companies presents the various activities being carried out by them and their impact on the performance of the companies. Along with the climate change the cases related to Natural Disaster Management have also been included in this unit. Hence the first unit discusses multiple dimensions like Human aspect, waste management, environmental sustainability and disaster management.

Second unit presents the Case Studies on CSR & Sustainable Development from various parts of the world. Case of Shell’s CSR activities and its sustainability in the Niger Delta Region. Case study on the Social Responsibility of a University in Indonesia suggests a fresh area where the academic institutions can also participate in the causes of social good. Cases from Oil India Ltd., and other Indian companies discuss the various projects being undertaken in the different parts of the country and their impact on the livelihood. Case study on Indonesian market on the CSR as Investment gallery presents partnership and mutual coordination required for the success of such projects. Some cases of CSR from Ethiopia have been discussed too.

Second unit presents the Case Studies on CSR & Sustainable Development from various parts of the world. Case of Shell’s CSR activities and its sustainability in the Niger Delta Region. Case study on the Social Responsibility of a University in Indonesia suggests a fresh area where the academic institutions can also participate in the causes of social good. Cases from Oil India Ltd., and other Indian companies discuss the various projects being undertaken in the different parts of the country and their impact on the livelihood. Case study on Indonesian market on the CSR as Investment gallery presents partnership and mutual coordination required for the success of such projects. Some cases of CSR from Ethiopia have been discussed too.

Third unit on Ethical Business Practices and Corporate Governance presents the chapters on varied themes like CSR and Leadership in the organisation. It has been repeatedly proven that the success of any CSR project is heavily dependent on the Leadership skills and team management. Chapter on the study of effectiveness of CSR practices on the MNEs and a Case study on the employees’ response to the CSR projects by Indian Hotel Industry present the interesting aspects of employee loyalty and brand recognition. Chapter on image building and reputation through Social Responsibility for university in Indonesia presents new dimension for reputation management and good will for corporate too.’

Third unit on Ethical Business Practices and Corporate Governance presents the chapters on varied themes like CSR and Leadership in the organisation. It has been repeatedly proven that the success of any CSR project is heavily dependent on the Leadership skills and team management. Chapter on the study of effectiveness of CSR practices on the MNEs and a Case study on the employees’ response to the CSR projects by Indian Hotel Industry present the interesting aspects of employee loyalty and brand recognition. Chapter on image building and reputation through Social Responsibility for university in Indonesia presents new dimension for reputation management and good will for corporate too.’

Fourth unit on Human Rights, Disabled and Women Empowerment includes chapters from topics like education and social inclusion for the visually impaired in the study of mathematical equation, and mathematics teaching to the visually impaired students. Chapter on Gender Barriers discusses the role of media in the politics of Pakistan. Chapter on the women’s health and hygiene discusses the importance and opportunities for the weaker section and labourers. The human aspect of business and research is the core theme for this unit.

Fourth unit on Human Rights, Disabled and Women Empowerment includes chapters from topics like education and social inclusion for the visually impaired in the study of mathematical equation, and mathematics teaching to the visually impaired students. Chapter on Gender Barriers discusses the role of media in the politics of Pakistan. Chapter on the women’s health and hygiene discusses the importance and opportunities for the weaker section and labourers. The human aspect of business and research is the core theme for this unit.

Fifth unit on Impact Assessment, CSR Standards and Reporting presents chapter on the accounting models for the measurement of effect of social responsibility on the financial performance of economic entities. Chapter on impact of financial and non financial disclosure of CSR reports, Reasoned action and accountability perspective in developing countries like Indonesia and Nigeria have been included.

Fifth unit on Impact Assessment, CSR Standards and Reporting presents chapter on the accounting models for the measurement of effect of social responsibility on the financial performance of economic entities. Chapter on impact of financial and non financial disclosure of CSR reports, Reasoned action and accountability perspective in developing countries like Indonesia and Nigeria have been included.

Sixth unit on Role of NGOs and Government in CSR has chapters on the regulation of CSR in developing countries in Nigeria, Bangladesh have been included. Chapter on cross cultural communication in India presents the case of sustainable development on Food habits. Chapter on the patriotic vigilance on transnational arena and alternative to gloabalisation is also included.

Sixth unit on Role of NGOs and Government in CSR has chapters on the regulation of CSR in developing countries in Nigeria, Bangladesh have been included. Chapter on cross cultural communication in India presents the case of sustainable development on Food habits. Chapter on the patriotic vigilance on transnational arena and alternative to gloabalisation is also included.

We sincerely hope that this edited book shall provide a truly multinational view of the various facets of corporate social responsibility to the researchers, students, practitioners and the strategists from the corporate. The discussions from various countries shall serve as a reference to the readers having an interest in the area.

We sincerely hope that this edited book shall provide a truly multinational view of the various facets of corporate social responsibility to the researchers, students, practitioners and the strategists from the corporate. The discussions from various countries shall serve as a reference to the readers having an interest in the area.

All the contributions are reviewed and edited to ensure quality and originality of content. Readers would definitely gain insights of responsible business practices from this book.

All the contributions are reviewed and edited to ensure quality and originality of content. Readers would definitely gain insights of responsible business practices from this book.

Anu Gupta

Saurabh Mittal

Anu Gupta

Saurabh Mittal

[email protected]

[email protected]

[email protected]

[email protected]

INDEX Sr. No.

Topic

INDEX Page no.

Sr. No.

Section 1: Carbon Credits, Waste Management and Environmental Sustainability 1 2

3

4

5 6 7

Climate Change and its impact on women livelihoods in Nigeria Rindap Manko Rose Waste to Wealth: Innovative Technologies to Create Beneficial Products through Entrepreneurship for Inclusive Growth Sarita Kumar and Sanjay Vohra Step Towards SOCIAL ENTREPRENEURSHIP: Innovative Ideas to Create Mosquito Repellent Products through waste and low cost material under Entrepreneurship for Inclusive Growth Akshat Chadha and Sanjay Vohra The Nature and Adequacy of Corporate Social and Environmental Responsibility (CSR) Reporting Among Saudi Companies Moneera Alwahaibi and Nevine El- Tawy Green marketing, self-regulation and marketing trust: A discourse analysis of ISO 14001 Anna Nyquist A Review on Scientific Approcach to Waste Managemeent Amit Madahar and Rajeev Varshney The Role of top 100 Fortune Companies in Natural Disaster Management Arvind Kumar, Hamendra Kumar Dangi, Rashmi Rashmi and Khimendra Singh

9 10 11

12

13

Qualitative Evaluation of Shell’s Corporate Social Responsibility and Its Sustainability in the Host Communities of Niger Delta Region. Jemimah Timothy Ekanem , Ike Nwachukwu Desing Model: Reinventing Social Competance in Campus Sanjana Mathew and Ashwin K V Corporate Socail Responsibility : A Study of Multinational Companies in India B Ramesh and Savia Mendes Corporate Socail Responsibility Practices in India (A Case Study on the Initiatives of Oil India Limited) Asha Sharma and Ashutosh Kumar Implementation of Corporate Social Responsibility in The Form of Investment Gallery (A Case Study: Indonesia Stock Exchange Gallery Universitas Nusantara PGRI Kediri and PT.Sucorinvest Central Gani) Gesty Ernestivita, H Samari and Subagyo Subagya Practices of Corporate Social Responsibility in Ethiopia - Some Cases Krishna Shekhar Lal Das and Dejene Ayele Tessema

1-9

1 2

10-20 3 21-26 4 27-34 35-46

5

47-52

6

53-62

7

15 16

17

The Link of Corporate Social Responsibility and Leadership– A Literature Review Araz Nasirian and Mikael Viklund Tallgren Evaluating the Effectiveness of CSR Practices in a MNE Isra Abuzayed and Reeny Mary Thomas Exploring & Understanding the Responsiveness of Employees towards Corporate Social Responsibility: A Study of Indian Hotel Industry Savita Sharma, Pratika Mishra and Jitender Bhandari Building University Image and Reputation Through Social Responsibility Sri Aliami, Subagyo Subagyo and Diani Nurhajati

63-74 75-90

9

91-99

10 11

100-106 12 107-110 111-115

13

116-121

14

Education and Social inclusion of People with Visual Impairment in the Study of Mathematical Functions Lorena Del Cisne León Quiñonez and Luiz Cesar Martini

1-9

10-20

21-26

27-34 35-46 47-52 53-62

122-132

15

Qualitative Evaluation of Shell’s Corporate Social Responsibility and Its Sustainability in the Host Communities of Niger Delta Region. Jemimah Timothy Ekanem , Ike Nwachukwu Desing Model: Reinventing Social Competance in Campus Sanjana Mathew and Ashwin K V Corporate Socail Responsibility : A Study of Multinational Companies in India B Ramesh and Savia Mendes Corporate Socail Responsibility Practices in India (A Case Study on the Initiatives of Oil India Limited) Asha Sharma and Ashutosh Kumar Implementation of Corporate Social Responsibility in The Form of Investment Gallery (A Case Study: Indonesia Stock Exchange Gallery Universitas Nusantara PGRI Kediri and PT.Sucorinvest Central Gani) Gesty Ernestivita, H Samari and Subagyo Subagya Practices of Corporate Social Responsibility in Ethiopia - Some Cases Krishna Shekhar Lal Das and Dejene Ayele Tessema

63-74 75-90 91-99

100-106

107-110 111-115

Section 3: Ethical Business Practices and Corporate Governance

16 133-140 141-148

17

Section 4: Human Rights, Social Inclusion and Empowerment 18

Climate Change and its impact on women livelihoods in Nigeria Rindap Manko Rose Waste to Wealth: Innovative Technologies to Create Beneficial Products through Entrepreneurship for Inclusive Growth Sarita Kumar and Sanjay Vohra Step Towards SOCIAL ENTREPRENEURSHIP: Innovative Ideas to Create Mosquito Repellent Products through waste and low cost material under Entrepreneurship for Inclusive Growth Akshat Chadha and Sanjay Vohra The Nature and Adequacy of Corporate Social and Environmental Responsibility (CSR) Reporting Among Saudi Companies Moneera Alwahaibi and Nevine El- Tawy Green marketing, self-regulation and marketing trust: A discourse analysis of ISO 14001 Anna Nyquist A Review on Scientific Approcach to Waste Managemeent Amit Madahar and Rajeev Varshney The Role of top 100 Fortune Companies in Natural Disaster Management Arvind Kumar, Hamendra Kumar Dangi, Rashmi Rashmi and Khimendra Singh

Section 2: Case Studies on CSR & Sustainable Development 8

Section 3: Ethical Business Practices and Corporate Governance 14

Page no.

Section 1: Carbon Credits, Waste Management and Environmental Sustainability

Section 2: Case Studies on CSR & Sustainable Development 8

Topic

The Link of Corporate Social Responsibility and Leadership– A Literature Review Araz Nasirian and Mikael Viklund Tallgren Evaluating the Effectiveness of CSR Practices in a MNE Isra Abuzayed and Reeny Mary Thomas Exploring & Understanding the Responsiveness of Employees towards Corporate Social Responsibility: A Study of Indian Hotel Industry Savita Sharma, Pratika Mishra and Jitender Bhandari Building University Image and Reputation Through Social Responsibility Sri Aliami, Subagyo Subagyo and Diani Nurhajati

116-121 122-132

133-140 141-148

Section 4: Human Rights, Social Inclusion and Empowerment 18 149-155

Education and Social inclusion of People with Visual Impairment in the Study of Mathematical Functions Lorena Del Cisne León Quiñonez and Luiz Cesar Martini

149-155

19 20 21

Consolidating gender barrier: Mediatization of politics in Pakistan Hassan Shehzad and Shafqat Munir Education and math teaching for visual impairment children. Henderson Souza and Luiz César Martini Women’s health and hygiene issues – Importance and opportunities at the bottom of the pyramid. Dr. Asha Bhatia and Dr. S.N.V. Sivakumar

156-173

19

174-180

20 21

Consolidating gender barrier: Mediatization of politics in Pakistan Hassan Shehzad and Shafqat Munir Education and math teaching for visual impairment children. Henderson Souza and Luiz César Martini Women’s health and hygiene issues – Importance and opportunities at the bottom of the pyramid.

181-187

156-173 174-180

181-187 Asha Bhatia

Section 5: Impact Assessment, CSR Standards and Reporting 22

23

A Proposed Accounting Model to Measure the Effect of Social Responsibility on the Financial Performance of Economic Entities - An Applied Study Dalia Moustafa Rezk The Impact of the Integration of Financial and Non-Financial Disclosure on Accuracy and Dispersion of Financial Analyst's Forecasts: The Case of Corporate Social Responsibility Reports.

Section 5: Impact Assessment, CSR Standards and Reporting 22 188-200 23

A Proposed Accounting Model to Measure the Effect of Social Responsibility on the Financial Performance of Economic Entities - An Applied Study Dalia Moustafa Rezk The Impact of the Integration of Financial and Non-Financial Disclosure on Accuracy and Dispersion of Financial Analyst's Forecasts: The Case of Corporate Social Responsibility Reports.

201-206 24

25 26

Reda Abdelrehim Theory of Reasoned Action and Accountability Perspectives on CSR Contribution to Environmental Sustainability in Developing Countries Mfon Jeremiah, Kumba Jallow and Natalia Vershinina Sustainability Reporting Standards and Its Future Prospects Anand Rai and Sandhya Rai Determining Factors Influencing Corporate Social Responsibility Disclosure of Manufacturing Sector in Indonesia Susy Suhendra and Emmy Indrayani

201-206 24

207-219 220-227

25 26

228-236

Section 6: Role of NGOs and Government in CSR 27

28 29

30

Regulating Corporate Social Responsibility in Developing Countries: Nigeria Oil Multinational Perspective Adetokunbo Alase Sustainable Development of Food Habits in India: Role of Cross Cultural Communication Gopa Pramanik Does patriotic vigilance make any sense in the transnational arena? A cosmopolitan alternative to the globalization paradox Marc Pilkington Exploring dynamics of internal migration to slums of Dhaka city in Bangladesh:A study on drivers and factors Kazi Md Mukitul Islam Islam and Mohammed Abdul Baten

188-200

Reda Abdelrehim Theory of Reasoned Action and Accountability Perspectives on CSR Contribution to Environmental Sustainability in Developing Countries Mfon Jeremiah, Kumba Jallow and Natalia Vershinina Sustainability Reporting Standards and Its Future Prospects Anand Rai and Sandhya Rai Determining Factors Influencing Corporate Social Responsibility Disclosure of Manufacturing Sector in Indonesia Susy Suhendra and Emmy Indrayani

207-219 220-227

228-236

Section 6: Role of NGOs and Government in CSR 27 237-253 254-261

28 29

262-277 30 278-292

Regulating Corporate Social Responsibility in Developing Countries: Nigeria Oil Multinational Perspective Adetokunbo Alase Sustainable Development of Food Habits in India: Role of Cross Cultural Communication Gopa Pramanik Does patriotic vigilance make any sense in the transnational arena? A cosmopolitan alternative to the globalization paradox Marc Pilkington Exploring dynamics of internal migration to slums of Dhaka city in Bangladesh:A study on drivers and factors Kazi Md Mukitul Islam Islam and Mohammed Abdul Baten

237-253 254-261

262-277

278-292

Section 1

Section 1

Carbon Credits, Waste Management and Environmental Sustainability

Carbon Credits, Waste Management and Environmental Sustainability

CLIMATE CHANGE AND ITS IMPACT ON WOMEN LIVELIHOODS IN NIGERIA

CLIMATE CHANGE AND ITS IMPACT ON WOMEN LIVELIHOODS IN NIGERIA

Rindap Manko Rose Assistant Lecturer, Department of Political Science, Plateau State University Bokkos, Nigeria [email protected]

Rindap Manko Rose Assistant Lecturer, Department of Political Science, Plateau State University Bokkos, Nigeria [email protected]

Abstract

Abstract

Climate change refers to a change which is attributed directly or indirectly to human activities that alter the composition of the global atmosphere and which are in addition to natural climate variability observed over comparable time periods. Human activities have tended to exacerbate climate change and its impacts on agriculture and livelihoods in some communities in Nigeria. Climate change impacts such as increase in temperature, sea-level rise in the coastal areas of Nigeria and desert encroachment in the northern part of the country are threatening the well-being of the people in these areas. Women in their social roles as principal care-givers, but often with fewer rights and freedom of action, may be more affected because of their roles as gatherers and providers of subsistence can make their workloads particularly heavy following a catastrophic event as their ability to meet the needs of their family and their livelihood are made impossible by scarcity pressures. These effects of climate change affect men and women in different ways; but women tend to be affected differently and more harshly because of their social roles and impoverished status in Nigeria and women are among the most vulnerable groups owing to a reduced ability to access finance and information needed to adapt to climate change impacts. This paper will look at the effects of climate change on gender, women especially as well as make recommendations on how they can adapt to such environmental changes.

Climate change refers to a change which is attributed directly or indirectly to human activities that alter the composition of the global atmosphere and which are in addition to natural climate variability observed over comparable time periods. Human activities have tended to exacerbate climate change and its impacts on agriculture and livelihoods in some communities in Nigeria. Climate change impacts such as increase in temperature, sea-level rise in the coastal areas of Nigeria and desert encroachment in the northern part of the country are threatening the well-being of the people in these areas. Women in their social roles as principal care-givers, but often with fewer rights and freedom of action, may be more affected because of their roles as gatherers and providers of subsistence can make their workloads particularly heavy following a catastrophic event as their ability to meet the needs of their family and their livelihood are made impossible by scarcity pressures. These effects of climate change affect men and women in different ways; but women tend to be affected differently and more harshly because of their social roles and impoverished status in Nigeria and women are among the most vulnerable groups owing to a reduced ability to access finance and information needed to adapt to climate change impacts. This paper will look at the effects of climate change on gender, women especially as well as make recommendations on how they can adapt to such environmental changes.

1. Introduction

1. Introduction

Climate change is one of the environmental life-threatening to economic development and sustainability of mankind worldwide. Natural climate cycle and human activities have contributed to an increase in the accumulation of heat-trapping “greenhouse” gases in the atmosphere thereby contributing to increase in temperature in the global climate (UNFCCC, 2007). Global warming causes unpredictable and extreme weather events impact and increasingly affect crop growth, and availability of soil water, forest fires, soil erosion, droughts floods, sea level rises with prevalent infection of diseases and pest infestations (Bello et al 2012: 49).

Climate change is one of the environmental life-threatening to economic development and sustainability of mankind worldwide. Natural climate cycle and human activities have contributed to an increase in the accumulation of heat-trapping “greenhouse” gases in the atmosphere thereby contributing to increase in temperature in the global climate (UNFCCC, 2007). Global warming causes unpredictable and extreme weather events impact and increasingly affect crop growth, and availability of soil water, forest fires, soil erosion, droughts floods, sea level rises with prevalent infection of diseases and pest infestations (Bello et al 2012: 49).

Nigeria is already being plagued with diverse ecological problems which have been directly linked to the on-going climate change. The southern ecological zone of Nigeria largely known for high rainfall is currently confronted by irregularity in the rainfall pattern, while Guinea savannah is experiencing gradual increasing temperature. The Northern zones faces threat of desert encroachment at a very fast rate per year occasioned by fast reduction in the amount of surface water, flora and fauna resources on land (Obioha 2008:311). This makes people to exploit more previously undisturbed lands leading to depletion of the forest cover and increase on sand dunes in the Northern axis of Nigeria. On the otherhand, those in the coastal region are vulnerable to incessant floods, destruction of mangrove ecosystems, contamination of water leading to displacement and communal crises (Odjugo:47).

Nigeria is already being plagued with diverse ecological problems which have been directly linked to the on-going climate change. The southern ecological zone of Nigeria largely known for high rainfall is currently confronted by irregularity in the rainfall pattern, while Guinea savannah is experiencing gradual increasing temperature. The Northern zones faces threat of desert encroachment at a very fast rate per year occasioned by fast reduction in the amount of surface water, flora and fauna resources on land (Obioha 2008:311). This makes people to exploit more previously undisturbed lands leading to depletion of the forest cover and increase on sand dunes in the Northern axis of Nigeria. On the otherhand, those in the coastal region are vulnerable to incessant floods, destruction of mangrove ecosystems, contamination of water leading to displacement and communal crises (Odjugo:47).

The negative effects of climate change are likely to hit the poorest people in the poorest countries hardest. Women constitute the majority of the world’s poor since they are often more dependent upon natural resources, yet control fewer resources. Climate change is likely to increase the females’ burden of meeting their household responsibilities. They will also bear the burden of caring for the sick as they and other household members are more predisposed to ill health as a result of greater stress (Olawoye et al 2010:1).

The negative effects of climate change are likely to hit the poorest people in the poorest countries hardest. Women constitute the majority of the world’s poor since they are often more dependent upon natural resources, yet control fewer resources. Climate change is likely to increase the females’ burden of meeting their household responsibilities. They will also bear the burden of caring for the sick as they and other household members are more predisposed to ill health as a result of greater stress (Olawoye et al 2010:1).

More so, women constitute 49.7 percent of the national population in Nigeria (CBN, Statistical Bulletin Vol.5, No.2, 1994, p.130) and majority of these women reside in the rural areas where they live mainly by exploiting the resources of nature. They are involved in agriculture as suppliers of labour, food crops and

More so, women constitute 49.7 percent of the national population in Nigeria (CBN, Statistical Bulletin Vol.5, No.2, 1994, p.130) and majority of these women reside in the rural areas where they live mainly by exploiting the resources of nature. They are involved in agriculture as suppliers of labour, food crops and

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livestock producers, processors of food and fish products, marketers of peasant farm surplus and transporters of farm supplies and farm products between the farm and the home (Oluwasola 1998:59). These they do in addition to their domestic and household chores which they perform in a hostile and discriminatory socioeconomic and cultural environment (Oluwasola 1998:59). Additionally, women in these rural areas have greater responsibility for household water supply, energy for cooking and heating and for food security. Thus, women are negatively affected by drought, uncertain rainfall and deforestation (Zabbey 2011:5).

livestock producers, processors of food and fish products, marketers of peasant farm surplus and transporters of farm supplies and farm products between the farm and the home (Oluwasola 1998:59). These they do in addition to their domestic and household chores which they perform in a hostile and discriminatory socioeconomic and cultural environment (Oluwasola 1998:59). Additionally, women in these rural areas have greater responsibility for household water supply, energy for cooking and heating and for food security. Thus, women are negatively affected by drought, uncertain rainfall and deforestation (Zabbey 2011:5).

While these dangers imperil the well-being of all men, women and children around the world to varying degrees, many groups of women experience heightened levels of insecurity unique to their gender owing to their subjugated social position, limited education and restricted economic freedom and social capital (Goldsworthy 2010:215). The study of the effect of climate change on women in Nigeria is therefore critical given its impact in changing livelihood patterns in the country.

While these dangers imperil the well-being of all men, women and children around the world to varying degrees, many groups of women experience heightened levels of insecurity unique to their gender owing to their subjugated social position, limited education and restricted economic freedom and social capital (Goldsworthy 2010:215). The study of the effect of climate change on women in Nigeria is therefore critical given its impact in changing livelihood patterns in the country.

2. Theoretical Framework


This work will be situated within the ecologist perspective and is championed most notably by Muir Gifford Pinchot (1865-1914, Rachel Carson 1962, Thomas Malthus. Theory of ecology is a reaction against the predicament we have created as humans to the environment through the combination of anthropocentrism and modernisation (science, technology, industrialization, materialism). Ecologists believe that humans have wrongfully violated nature by attempting to become its master. They see nature as an economic resource to be harnessed rather than a domicile to be nurtured and accommodated. As a result, humans have created an artificial, anti-natural world one that fouls the air and water on which every living creature depends. The great rain forests that do so much to regulate the climate and oxygenate the air are disappearing under the threads of giant earth movers; global warming due to the greenhouse effect caused by gases released into the atmosphere has begun the dangerous melting of glaciers and the polar icecaps; and the ozone layer depletion because of industrial pollution threatens us with lethal solar radiation (Baradat 2006:278).

This work will be situated within the ecologist perspective and is championed most notably by Muir Gifford Pinchot (1865-1914, Rachel Carson 1962, Thomas Malthus. Theory of ecology is a reaction against the predicament we have created as humans to the environment through the combination of anthropocentrism and modernisation (science, technology, industrialization, materialism). Ecologists believe that humans have wrongfully violated nature by attempting to become its master. They see nature as an economic resource to be harnessed rather than a domicile to be nurtured and accommodated. As a result, humans have created an artificial, anti-natural world one that fouls the air and water on which every living creature depends. The great rain forests that do so much to regulate the climate and oxygenate the air are disappearing under the threads of giant earth movers; global warming due to the greenhouse effect caused by gases released into the atmosphere has begun the dangerous melting of glaciers and the polar icecaps; and the ozone layer depletion because of industrial pollution threatens us with lethal solar radiation (Baradat 2006:278).

Muir Gifford Pinchot (1865-1914), was important in alerting people to the danger posed to the wilderness by human economic activity, but it was not until the 1960s that people were made aware of the danger posed to human survival itself by industrialization (Baradat 2006:278). In 1962 biologist Rachel Carson published Silent Spring. Principally about the deadly and broad effects of the pesticide DDT, the book awakened the world to the mounting problems of environmental degradation Baradat 2006:278).

Muir Gifford Pinchot (1865-1914), was important in alerting people to the danger posed to the wilderness by human economic activity, but it was not until the 1960s that people were made aware of the danger posed to human survival itself by industrialization (Baradat 2006:278). In 1962 biologist Rachel Carson published Silent Spring. Principally about the deadly and broad effects of the pesticide DDT, the book awakened the world to the mounting problems of environmental degradation Baradat 2006:278).

There is also a long tradition of concern over the relationship among humans, the environment, and the potential for conflict. Thomas Malthus (1798) wrote an essay on the Principle of population, in which he argued “that the power of population is indefinitely greater than the power of the earth to produce subsistence for man”. The imbalance between human needs and food availability, Malthus predicted, would lead to famine, disease and war (Richard et al 2010:11). Fairfield Osborn (1945:201) reiterated this concern: “ when will it be openly recognised that one of the principal causes of the aggressive attitudes of individual nations and much of the present discord among groups of nations is traceable to diminishing productive lands and to increasing population pressures” (Richard et al 2010:11).

There is also a long tradition of concern over the relationship among humans, the environment, and the potential for conflict. Thomas Malthus (1798) wrote an essay on the Principle of population, in which he argued “that the power of population is indefinitely greater than the power of the earth to produce subsistence for man”. The imbalance between human needs and food availability, Malthus predicted, would lead to famine, disease and war (Richard et al 2010:11). Fairfield Osborn (1945:201) reiterated this concern: “ when will it be openly recognised that one of the principal causes of the aggressive attitudes of individual nations and much of the present discord among groups of nations is traceable to diminishing productive lands and to increasing population pressures” (Richard et al 2010:11).

These assumptions became increasingly prominent and served as a common explanation on how human activities have adversely affected the environment which humans depend for their sustenance.

These assumptions became increasingly prominent and served as a common explanation on how human activities have adversely affected the environment which humans depend for their sustenance.

3. Definition of concepts

3. Definition of concepts

Climate change refers to a change which is attributed directly or indirectly to human activities that alter the composition of the global atmosphere and which are in addition to natural climate variability observed over comparable time periods (United Nations Framework Convention on Climate Change, 1992). Ikeme (2001) defined “climate change as the variation in the earth’s global climate or in regional climates overtime. It describes changes in variability or average state of the atmosphere overtime scales ranging fro m a decade to millions of years”

Climate change refers to a change which is attributed directly or indirectly to human activities that alter the composition of the global atmosphere and which are in addition to natural climate variability observed over comparable time periods (United Nations Framework Convention on Climate Change, 1992). Ikeme (2001) defined “climate change as the variation in the earth’s global climate or in regional climates overtime. It describes changes in variability or average state of the atmosphere overtime scales ranging fro m a decade to millions of years”

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The Intergovernmental Panel on Climate Change (IPCC) describes climate change as any change overtime whether due to natural variability or as a result of intense human activities (Zabbey 2011:2). Weather means daily fluctuating state of the atmosphere around us, characterised by temperature, wind, rainfall, clouds etc. Climate on the other hand refers to long time average weather conditions of a region (Zabbey 2011:2). Thus, climate change resulted from years of accumulated green house gases emission; of the gases carbon dioxide as a principal cause or agent. Green house gases are able to absorb and radiate heat. Some are naturally occurring like carbon dioxide, water vapour, methane and nitrous oxide etc others emanate from industrial processes such as hydroflurocarbons, perfluorocarbons, chlofluorocarbons etc (Zabbey 2011:3).

The Intergovernmental Panel on Climate Change (IPCC) describes climate change as any change overtime whether due to natural variability or as a result of intense human activities (Zabbey 2011:2). Weather means daily fluctuating state of the atmosphere around us, characterised by temperature, wind, rainfall, clouds etc. Climate on the other hand refers to long time average weather conditions of a region (Zabbey 2011:2). Thus, climate change resulted from years of accumulated green house gases emission; of the gases carbon dioxide as a principal cause or agent. Green house gases are able to absorb and radiate heat. Some are naturally occurring like carbon dioxide, water vapour, methane and nitrous oxide etc others emanate from industrial processes such as hydroflurocarbons, perfluorocarbons, chlofluorocarbons etc (Zabbey 2011:3).

Nigeria is already experiencing the impacts of climate with more extreme weather events, more variability in timing and intensity of rainfall and higher temperatures over the whole country. This is particularly so for agriculture and food production where farmers in Nigeria rely on unpredictable weather patterns to grow and harvest their food crops (Fofana 2013:1)

Nigeria is already experiencing the impacts of climate with more extreme weather events, more variability in timing and intensity of rainfall and higher temperatures over the whole country. This is particularly so for agriculture and food production where farmers in Nigeria rely on unpredictable weather patterns to grow and harvest their food crops (Fofana 2013:1)

4.

Effects of Climate Change on Women Livelihood in Nigeria

4.

Effects of Climate Change on Women Livelihood in Nigeria

Nigeria lies between latitudes 4oN and 14oN. It is bounded in the north by the Sahara Desert and in the south by the Gulf of Guinea, an arm of the Atlantic Ocean (Udo 2012:1). However, in the process of settlement, man has become the major agent in changing the natural environment of Nigeria. As may be expected, the groups that have brought about the greatest changes are the settled cultivators of the grasslands and forest areas of the country. These changes are most obvious in the vegetation and the micro-climate of some areas, as well as in the serious cases of soil impoverishment and soil erosion in parts of the country (Udo 2012:12). As a result of the dominant influence of rainfall on vegetative life in the tropics, the natural vegetation of Nigeria is arranged in zones which replicate the climatic (rainfall) belts of the country. The drier north which has a shorter growing season supports savanna vegetation of grass and scattered trees, while the wetter south supports dense forest vegetation. There are however, only a few sparsely settled areas in the country with vegetation that can be described as natural. Rather, as a result of the long period of human occupation and exploitative use of the land, the vegetation of the country has been greatly modified (Udo 2012:14). In the Sudan savanna zone which is the main cattle area of the country, overgrazing and intensive cultivation of the land around the Sokoto and Kano regions have resulted in soil deterioration. In these areas where the bush is regularly set on fire either for hunting purposes or cultivation as well as for quickening the regeneration of succulent grass for cattle, the vegetation consist of very short grasses with scattered and stunted fire-resistant trees.

Nigeria lies between latitudes 4oN and 14oN. It is bounded in the north by the Sahara Desert and in the south by the Gulf of Guinea, an arm of the Atlantic Ocean (Udo 2012:1). However, in the process of settlement, man has become the major agent in changing the natural environment of Nigeria. As may be expected, the groups that have brought about the greatest changes are the settled cultivators of the grasslands and forest areas of the country. These changes are most obvious in the vegetation and the micro-climate of some areas, as well as in the serious cases of soil impoverishment and soil erosion in parts of the country (Udo 2012:12). As a result of the dominant influence of rainfall on vegetative life in the tropics, the natural vegetation of Nigeria is arranged in zones which replicate the climatic (rainfall) belts of the country. The drier north which has a shorter growing season supports savanna vegetation of grass and scattered trees, while the wetter south supports dense forest vegetation. There are however, only a few sparsely settled areas in the country with vegetation that can be described as natural. Rather, as a result of the long period of human occupation and exploitative use of the land, the vegetation of the country has been greatly modified (Udo 2012:14). In the Sudan savanna zone which is the main cattle area of the country, overgrazing and intensive cultivation of the land around the Sokoto and Kano regions have resulted in soil deterioration. In these areas where the bush is regularly set on fire either for hunting purposes or cultivation as well as for quickening the regeneration of succulent grass for cattle, the vegetation consist of very short grasses with scattered and stunted fire-resistant trees.

The southern Guinea savanna zone is populated by tall grasses and a denser stand of fire-resistant forest trees. The destruction of the rainforest in parts of Owerri, Ikot- Ekpene and Abak show the extent to which the natural vegetation has been altered by man. Over large parts of these areas present day vegetation consists of open palm bush (Udo 2012:14).

The southern Guinea savanna zone is populated by tall grasses and a denser stand of fire-resistant forest trees. The destruction of the rainforest in parts of Owerri, Ikot- Ekpene and Abak show the extent to which the natural vegetation has been altered by man. Over large parts of these areas present day vegetation consists of open palm bush (Udo 2012:14).

It has become an accepted fact that environmental degradation has led to climate change which in turn exacerbates existing degradation. In Nigeria, the intensification of the use of fragile and marginal ecosystems has led to progressive degradation and continued desertification of marginal agricultural lands. It is feared that damage by drought, population pressure, overgrazing and continuos exploitation of marginal lands have aggravated desertification. Pressure on the dwindling resources in the arid prone areas (Katsina, Sokoto, Jigawa and Borno states) has caused a number of socio-economic and sectarian conflicts in the country with high deaths, injuries and heavy economic losses (UN, 1997).

It has become an accepted fact that environmental degradation has led to climate change which in turn exacerbates existing degradation. In Nigeria, the intensification of the use of fragile and marginal ecosystems has led to progressive degradation and continued desertification of marginal agricultural lands. It is feared that damage by drought, population pressure, overgrazing and continuos exploitation of marginal lands have aggravated desertification. Pressure on the dwindling resources in the arid prone areas (Katsina, Sokoto, Jigawa and Borno states) has caused a number of socio-economic and sectarian conflicts in the country with high deaths, injuries and heavy economic losses (UN, 1997).

Although, women make up a large number of poor people in communities that are highly dependent on local natural resources for their livelihood and are disproportionately vulnerable to and affected by climate change. For instance, women in rural areas in Nigeria have greater responsibility for household water supply, energy for cooking and heating and for food security. Thus, women are negatively affected by drought, uncertain rainfall and deforestation. Again, because of their roles, unequal access to resources and limited mobility, women in many contexts are disproportionately affected by natural disasters such as floods, fires and coastal erosion. In countries that rely on agriculture in coastal zones such as Nigeria, where coastal agricultural land accounts for about 75 per cent of the total arable land, rising sea levels will impact negatively on food

Although, women make up a large number of poor people in communities that are highly dependent on local natural resources for their livelihood and are disproportionately vulnerable to and affected by climate change. For instance, women in rural areas in Nigeria have greater responsibility for household water supply, energy for cooking and heating and for food security. Thus, women are negatively affected by drought, uncertain rainfall and deforestation. Again, because of their roles, unequal access to resources and limited mobility, women in many contexts are disproportionately affected by natural disasters such as floods, fires and coastal erosion. In countries that rely on agriculture in coastal zones such as Nigeria, where coastal agricultural land accounts for about 75 per cent of the total arable land, rising sea levels will impact negatively on food

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supplies (Brown and Crawford 2009:17). Also, during the early stages of a disaster, women may be made especially insecure by their inability to receive warnings and evacuation notices where they are available, owing to the rural location of most homes, the social restrictions that keep women inside the home and prohibit interacting with non-kin men, and the nature of the work most women perform largely agricultural tasks and self-employment (World Health Organization, 2002). For example, with increasing drought, it is women who have to walk longer distances to collect water (LEG, 2002). This is very much pronounced in the northern part of Nigeria where rivers and wells are drying up as a result of climate change or desert encroachment.

supplies (Brown and Crawford 2009:17). Also, during the early stages of a disaster, women may be made especially insecure by their inability to receive warnings and evacuation notices where they are available, owing to the rural location of most homes, the social restrictions that keep women inside the home and prohibit interacting with non-kin men, and the nature of the work most women perform largely agricultural tasks and self-employment (World Health Organization, 2002). For example, with increasing drought, it is women who have to walk longer distances to collect water (LEG, 2002). This is very much pronounced in the northern part of Nigeria where rivers and wells are drying up as a result of climate change or desert encroachment.

Changing temperature and precipitation variability or unpredictable climate can alter yields, health and physical safety and ultimately the paths and levels of development. Already, Nigeria is manifesting low agricultural yields and ill-health such as malaria (Emaziye 2013 :57). Climate change affects agriculture in a number of ways. For example, uncertainties in the onset of the farming season, due to changes in rainfall characteristics (early rain may not be sustained and crops planted at that instance may become smothered by heat waves. This can lead to an unusual sequence of crop planting and replanting which may result in food shortages due to harvest failure. Extreme weather events such as thunderstorms, heavy winds and floods, devastate farmlands and can lead to crop failure. Pests and crop diseases migrate in response to climate changes and variations (e.g the tsetse fly has extended its range northward) and will potentially pose a threat to livestock in the drier northern areas (Emaziye 2013:57).

Changing temperature and precipitation variability or unpredictable climate can alter yields, health and physical safety and ultimately the paths and levels of development. Already, Nigeria is manifesting low agricultural yields and ill-health such as malaria (Emaziye 2013 :57). Climate change affects agriculture in a number of ways. For example, uncertainties in the onset of the farming season, due to changes in rainfall characteristics (early rain may not be sustained and crops planted at that instance may become smothered by heat waves. This can lead to an unusual sequence of crop planting and replanting which may result in food shortages due to harvest failure. Extreme weather events such as thunderstorms, heavy winds and floods, devastate farmlands and can lead to crop failure. Pests and crop diseases migrate in response to climate changes and variations (e.g the tsetse fly has extended its range northward) and will potentially pose a threat to livestock in the drier northern areas (Emaziye 2013:57).

These roles of women as gatherers and providers of subsistence can make their workloads particularly heavy following a catastrophic event as their ability to meet the needs of their family are compromised or made impossible by scarcity pressures (Goldsworthy 2010:223). Also, human activities have tended to exacerbate climate change and its impacts on agriculture and livelihoods in some communities in Nigeria. For example, the Niger Delta region of Nigeria is reported to have over 123 gas flaring sites making Nigeria one of the highest emitters of greenhouse gases in Africa (Akinro et al, 2008). Agriculture in the Niger Delta is highly dependent on rain as irrigation is seldom practised. The changes in the rainfall pattern have greatly affected vegetation and agriculture. There is almost complete absence of primary forests, uncontrolled logging, agricultural activities, acid rain, oil exploration and exploitation, urbanization and mining activities contribute to lose of vegetation. All these have contributed to climate change, the impacts of which are already being felt in the region with food insecurity, increasing risk of disease and the rising costs of extreme weather damage (Thaddeus et al, 2011:7). This environmental degradation caused by oil exploration and oil spillage in the coastal region of the Niger Delta of Nigeria has affected the livelihoods of rural women. Hassan et al (2002:88), argued that “in times past, women used to fish just around the beach and swamps. Women then used crayfish and other marine products by the beach. Periwinkle, from which women used to derive a good income, is not easily available now. We have to go very far to get periwinkles now. Frogs that used to live under mangroves are no more. Crabs? No more”.

These roles of women as gatherers and providers of subsistence can make their workloads particularly heavy following a catastrophic event as their ability to meet the needs of their family are compromised or made impossible by scarcity pressures (Goldsworthy 2010:223). Also, human activities have tended to exacerbate climate change and its impacts on agriculture and livelihoods in some communities in Nigeria. For example, the Niger Delta region of Nigeria is reported to have over 123 gas flaring sites making Nigeria one of the highest emitters of greenhouse gases in Africa (Akinro et al, 2008). Agriculture in the Niger Delta is highly dependent on rain as irrigation is seldom practised. The changes in the rainfall pattern have greatly affected vegetation and agriculture. There is almost complete absence of primary forests, uncontrolled logging, agricultural activities, acid rain, oil exploration and exploitation, urbanization and mining activities contribute to lose of vegetation. All these have contributed to climate change, the impacts of which are already being felt in the region with food insecurity, increasing risk of disease and the rising costs of extreme weather damage (Thaddeus et al, 2011:7). This environmental degradation caused by oil exploration and oil spillage in the coastal region of the Niger Delta of Nigeria has affected the livelihoods of rural women. Hassan et al (2002:88), argued that “in times past, women used to fish just around the beach and swamps. Women then used crayfish and other marine products by the beach. Periwinkle, from which women used to derive a good income, is not easily available now. We have to go very far to get periwinkles now. Frogs that used to live under mangroves are no more. Crabs? No more”.

Resource scarcity also creates insecurity for women when clean water and fuel wood become difficult to find because of deforestation, pollution or desertification, women who cannot afford to pay for these resources must travel farther to gather them. Women’s physical security may also be compromised when they have to travel farther out to less secure areas or move their residence to look for resources, women and girls become more vulnerable to injuries from carrying heavy loads from long distances and also face increase risk of sexual harassment and assault. If the wood supply becomes critically problematic, the livelihood of many individuals that depend directly (wood vendors) and indirectly (household food providers and food vendors) would be adversely affected (Eleri, 2007).

Resource scarcity also creates insecurity for women when clean water and fuel wood become difficult to find because of deforestation, pollution or desertification, women who cannot afford to pay for these resources must travel farther to gather them. Women’s physical security may also be compromised when they have to travel farther out to less secure areas or move their residence to look for resources, women and girls become more vulnerable to injuries from carrying heavy loads from long distances and also face increase risk of sexual harassment and assault. If the wood supply becomes critically problematic, the livelihood of many individuals that depend directly (wood vendors) and indirectly (household food providers and food vendors) would be adversely affected (Eleri, 2007).

For the women of Enugwu Nanka in Enugu state, Nigeria, the destruction of farmlands and crops by landslides and erosion were as a result of climate change and it is responsible for food insecurity as almost all the women were left without food and loss of income by landslides and erosion respectively. These women took up menial jobs such as weeding and working at construction sites and this increased their work burden (Agwu and Okhimamhe 2009:56).

For the women of Enugwu Nanka in Enugu state, Nigeria, the destruction of farmlands and crops by landslides and erosion were as a result of climate change and it is responsible for food insecurity as almost all the women were left without food and loss of income by landslides and erosion respectively. These women took up menial jobs such as weeding and working at construction sites and this increased their work burden (Agwu and Okhimamhe 2009:56).

Health related environmental problems in Nigeria vary with the social and economic development achieved by different states and even different towns and villages. They are linked to poverty, absence of adequate water supplies, lack of sanitation services and poor housing conditions. With increasing

Health related environmental problems in Nigeria vary with the social and economic development achieved by different states and even different towns and villages. They are linked to poverty, absence of adequate water supplies, lack of sanitation services and poor housing conditions. With increasing

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industrialisation, the risk of respiratory illness and cancer related deaths also rises and a reduction in fuel wood availability can lead women to use agricultural residues or animal waste as fuel for cooking fires inside the home, this fuel create indoor air pollution when burned that leads to illness and deaths (World Bank, 2003). The major public health problems associated with poor environmental sanitation and exposure to communicable diseases and poor personal hygiene are often compounded by malnutrition which reduce resistance to diseases especially among vulnerable groups that is, children, pregnant and lactating mothers and the aged(UN, 1997).

industrialisation, the risk of respiratory illness and cancer related deaths also rises and a reduction in fuel wood availability can lead women to use agricultural residues or animal waste as fuel for cooking fires inside the home, this fuel create indoor air pollution when burned that leads to illness and deaths (World Bank, 2003). The major public health problems associated with poor environmental sanitation and exposure to communicable diseases and poor personal hygiene are often compounded by malnutrition which reduce resistance to diseases especially among vulnerable groups that is, children, pregnant and lactating mothers and the aged(UN, 1997).

Thus, the consequences of climate change is adversely affecting the livelihood and well being of a massive number of people and inhibiting the development of many poor communities in Nigeria(Gebremedhin 2000:221).

Thus, the consequences of climate change is adversely affecting the livelihood and well being of a massive number of people and inhibiting the development of many poor communities in Nigeria(Gebremedhin 2000:221).

5. Adaptation Strategies adopted by women in Nigeria

5. Adaptation Strategies adopted by women in Nigeria

Adaptation is a broad concept usually implying a process of adjustment to survive and ideally, thrive in the face of change. In the context of climate change, adaptation takes place through adjustments to reduce vulnerability or enhance resilience to observed or expected changes in climate and it involves changes in processes, perceptions, practices and functions (Brown, Hammill and McLeman 2007:1141). Adaptation can take place at a number of different scales, from institutionally driven, policies at the national level to adjustments and decisions at the level of individual households (Mcleman and Smith 2006:62).

Adaptation is a broad concept usually implying a process of adjustment to survive and ideally, thrive in the face of change. In the context of climate change, adaptation takes place through adjustments to reduce vulnerability or enhance resilience to observed or expected changes in climate and it involves changes in processes, perceptions, practices and functions (Brown, Hammill and McLeman 2007:1141). Adaptation can take place at a number of different scales, from institutionally driven, policies at the national level to adjustments and decisions at the level of individual households (Mcleman and Smith 2006:62).

Conversely, the existence of adaptive capacity can reduce the likelihood of violence and instability occurring. The case of drought and water scarcity in northern Nigeria, in these arid and semi-arid regions of West Africa, dry season migration is one of several components of a typical rural livelihood strategy (Haan, Brock and Coulibaly 2002:37). Rainfall levels vary significantly within the growing season; they also vary considerably from one year to the next and from one locale to the next within the region (Hulme 2001:19). Thus, rural livelihoods must be inherently flexible and adaptive, and severe droughts resulting in crop and livestock losses may alter seasonal migration patterns from affected areas (Brown and McLeman 2009:1151).

Conversely, the existence of adaptive capacity can reduce the likelihood of violence and instability occurring. The case of drought and water scarcity in northern Nigeria, in these arid and semi-arid regions of West Africa, dry season migration is one of several components of a typical rural livelihood strategy (Haan, Brock and Coulibaly 2002:37). Rainfall levels vary significantly within the growing season; they also vary considerably from one year to the next and from one locale to the next within the region (Hulme 2001:19). Thus, rural livelihoods must be inherently flexible and adaptive, and severe droughts resulting in crop and livestock losses may alter seasonal migration patterns from affected areas (Brown and McLeman 2009:1151).

These migration patterns can create conflicts between pastoralist and agricultural communities. Nyong et al (2006:248) observed that incidents of violence and conflict do occur periodically between farmers and herders, particularly during the dry season, and especially around sources of water and cattle fodder. However, they also observed that such incidents rarely spread beyond the immediate participants, because traditional conflict resolution institutions that have evolved over generations have proved to be highly successful. The authors worry that traditional institutions have suffered erosion in recent years and recommended a reversal of this erosion in order to increase the capacity of the rural population to adapt to future climate change.

These migration patterns can create conflicts between pastoralist and agricultural communities. Nyong et al (2006:248) observed that incidents of violence and conflict do occur periodically between farmers and herders, particularly during the dry season, and especially around sources of water and cattle fodder. However, they also observed that such incidents rarely spread beyond the immediate participants, because traditional conflict resolution institutions that have evolved over generations have proved to be highly successful. The authors worry that traditional institutions have suffered erosion in recent years and recommended a reversal of this erosion in order to increase the capacity of the rural population to adapt to future climate change.

For the southwest and southeast of Nigeria, attention has to be paid on actions that would make whatever is on ground sustainable. One of these which are closely linked with agriculture is the forestry sector. This sector is important for overall environmental sustainability and socio-economic development of the country. Its relevance for carbon sequestration is particularly significant in the context of global warming. The forest resources especially wood are already being exploited at the limits. Fuelwood and charcoal remains the most widely used domestic energy in Nigeria and this is affecting the country’s stock of wood. Already, there are deficits in the north and the middle belt. Most of the fuelwood required in the country comes from the south. A further pressure on the sector may create crisis in the economy which may wipe off whatever advantages that presently make the south west and southeast to have stronger adaptive potentials.

For the southwest and southeast of Nigeria, attention has to be paid on actions that would make whatever is on ground sustainable. One of these which are closely linked with agriculture is the forestry sector. This sector is important for overall environmental sustainability and socio-economic development of the country. Its relevance for carbon sequestration is particularly significant in the context of global warming. The forest resources especially wood are already being exploited at the limits. Fuelwood and charcoal remains the most widely used domestic energy in Nigeria and this is affecting the country’s stock of wood. Already, there are deficits in the north and the middle belt. Most of the fuelwood required in the country comes from the south. A further pressure on the sector may create crisis in the economy which may wipe off whatever advantages that presently make the south west and southeast to have stronger adaptive potentials.

To cope with deforestation in Augie community in Kebbi State, Nigeria, the women sometimes resorted to the use of guinea corn stalk or animal dung for cooking and these have health implications, but are the cheapest alternatives available to them. The smoke affects the aroma and taste of the food prepared and it requires that the fire has to be tended constantly (Agwu and Okhiamambe 2009:31). Also, during flood period and the dry season, men embark on temporary migration to urban areas to do mostly menial jobs in order to earn some money for the family. Consequently, women are left alone (under the supervision of older members of the extended family) to take care of the household. During this period, some may choose to engage in petty trading to augment earnings from the men who had become temporary immigrants. In most cases, girls and young boys

To cope with deforestation in Augie community in Kebbi State, Nigeria, the women sometimes resorted to the use of guinea corn stalk or animal dung for cooking and these have health implications, but are the cheapest alternatives available to them. The smoke affects the aroma and taste of the food prepared and it requires that the fire has to be tended constantly (Agwu and Okhiamambe 2009:31). Also, during flood period and the dry season, men embark on temporary migration to urban areas to do mostly menial jobs in order to earn some money for the family. Consequently, women are left alone (under the supervision of older members of the extended family) to take care of the household. During this period, some may choose to engage in petty trading to augment earnings from the men who had become temporary immigrants. In most cases, girls and young boys

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also got involved through street hawking of commonly required household items like tomatoes and pepper, pure water etc (Agwu and Okhimamhe 2009:31).

also got involved through street hawking of commonly required household items like tomatoes and pepper, pure water etc (Agwu and Okhimamhe 2009:31).

Also, unsustainable resource extraction and land modification all reduce the quantity and quality of these necessities and degrade land, reducing productivity. As resources are diminished and land is depleted, agricultural practices such as increased chemical inputs and reduced fallow periods are adopted by women to increase crop yields, further damaging the land and creating a cycle of degradation (Goldsworthy 2010:225)

Also, unsustainable resource extraction and land modification all reduce the quantity and quality of these necessities and degrade land, reducing productivity. As resources are diminished and land is depleted, agricultural practices such as increased chemical inputs and reduced fallow periods are adopted by women to increase crop yields, further damaging the land and creating a cycle of degradation (Goldsworthy 2010:225)

Thus, building the capacity to adapt to climate change can help prevent or resolve climate-related conflicts and insecurity. Building adaptive capacity in this context can involve introducing or strengthening measures that protect and diversify livelihoods, ensure access to and availability of key natural resources and support conflict resolution institutions (Brown and McLeman 2009:1151).

Thus, building the capacity to adapt to climate change can help prevent or resolve climate-related conflicts and insecurity. Building adaptive capacity in this context can involve introducing or strengthening measures that protect and diversify livelihoods, ensure access to and availability of key natural resources and support conflict resolution institutions (Brown and McLeman 2009:1151).

6. Challenges Facing Nigerian Women

6. Challenges Facing Nigerian Women

It is important to note the challenges confronting women lives in Nigeria that make environmental change such a credible threat to their human existence which are:

It is important to note the challenges confronting women lives in Nigeria that make environmental change such a credible threat to their human existence which are:

Cultural Constraints: like most other patriarchal societies of the world, a Nigerian woman is socialized into a culture of female subordination. She is not only subordinate to her husband and men in her own family of orientation, but also to the entire members of her husband’s family (males and females) (Aina 1998:6). Women have variously been confined to activities which were of secondary importance and spend a lot of effort on activities which aided household consumption rather than capital accumulation (Aina 1998:10). Boulding argued that in all societies from the past to the present, the breeding of babies and the feeding of humans of all ages, is almost exclusively the work of women. In addition, Boulding argued that women also participate in certain producer roles like gathering and growing food, fetching water and so on.

Cultural Constraints: like most other patriarchal societies of the world, a Nigerian woman is socialized into a culture of female subordination. She is not only subordinate to her husband and men in her own family of orientation, but also to the entire members of her husband’s family (males and females) (Aina 1998:6). Women have variously been confined to activities which were of secondary importance and spend a lot of effort on activities which aided household consumption rather than capital accumulation (Aina 1998:10). Boulding argued that in all societies from the past to the present, the breeding of babies and the feeding of humans of all ages, is almost exclusively the work of women. In addition, Boulding argued that women also participate in certain producer roles like gathering and growing food, fetching water and so on.

The role of the Nigerian woman in the economic sphere is largely inhibited because of lack of access to family land, and control over her own time and the products of her labour. Most of the time, husbands manage the family farm, keeping the proceeds of export crops under their control, while wives use earnings from food crops and trading to meet the family’s daily needs. The ability of women to participate in independent economic activities is thus limited by social obligations to their husbands (Aina 1998:10).

The role of the Nigerian woman in the economic sphere is largely inhibited because of lack of access to family land, and control over her own time and the products of her labour. Most of the time, husbands manage the family farm, keeping the proceeds of export crops under their control, while wives use earnings from food crops and trading to meet the family’s daily needs. The ability of women to participate in independent economic activities is thus limited by social obligations to their husbands (Aina 1998:10).

Restricted Financial Autonomy: women do not earn enough income from their agricultural production activities to invest in farming as they are engaged mainly in the production of arable crops. The typical rural woman has no choice but to depend on the expansion of her food crop farm to earn any substantial income (Oluwasola 1998:62). Since women do not own land, they lack a basic resource that they can use as collateral security to obtain loans. Even when credit is available, the factor of illiteracy makes it difficult for women in agriculture to take advantage of such facilities (Oluwasola 1998:62). Without adequate cash and access to credit facilities, women are unable to take advantage of productive resources like irrigation water, herbicides, fertilizers etc.

Restricted Financial Autonomy: women do not earn enough income from their agricultural production activities to invest in farming as they are engaged mainly in the production of arable crops. The typical rural woman has no choice but to depend on the expansion of her food crop farm to earn any substantial income (Oluwasola 1998:62). Since women do not own land, they lack a basic resource that they can use as collateral security to obtain loans. Even when credit is available, the factor of illiteracy makes it difficult for women in agriculture to take advantage of such facilities (Oluwasola 1998:62). Without adequate cash and access to credit facilities, women are unable to take advantage of productive resources like irrigation water, herbicides, fertilizers etc.

Access to Education: The Nigerian woman is born into a culture of male supremacy, as exacerbated in the general preference for a “male child”. This is because, sons were believed to provide more economic support for the parents while the continuity of the family name depended on whether or not there is a male child (Aina 1998:8). Education for girls’ right from the beginning was designed to make them primarily effective mothers and housewives. Hence, girls were brought up in the traditional family set-up to be obedient, and always submissive to men. Boys on the other hand, were encouraged to be aggressive, competitive and independent. Boys were further assisted by a traditional political arrangement, where men were at the helms of affairs either as kings, chiefs or family heads (Alao 1998:92).

Access to Education: The Nigerian woman is born into a culture of male supremacy, as exacerbated in the general preference for a “male child”. This is because, sons were believed to provide more economic support for the parents while the continuity of the family name depended on whether or not there is a male child (Aina 1998:8). Education for girls’ right from the beginning was designed to make them primarily effective mothers and housewives. Hence, girls were brought up in the traditional family set-up to be obedient, and always submissive to men. Boys on the other hand, were encouraged to be aggressive, competitive and independent. Boys were further assisted by a traditional political arrangement, where men were at the helms of affairs either as kings, chiefs or family heads (Alao 1998:92).

Also, many parents consider women’s education as a waste of funds. Such parents believe that money spent on a girl’s education is a waste, since she will soon marry into her husband’s family. Therefore, when families are faced with the option of choosing between sons’ and daughters’ education, the daughters are always

Also, many parents consider women’s education as a waste of funds. Such parents believe that money spent on a girl’s education is a waste, since she will soon marry into her husband’s family. Therefore, when families are faced with the option of choosing between sons’ and daughters’ education, the daughters are always

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the victims (Alao 1998:94). Thus, the structural position of women not only limits the contribution they are able to make to policy and decision making, it also limits their strengths to cope with the challenges they face as a result of climate change.

7. Conclusion Climate change is a global phenomenon and is already evident in Nigeria. The negative impacts of climate change such as temperature rise, erratic rainfall, desertification, low agricultural yields, drying of water bodies, flooding and environmental degradation as a result of population pressure, intensive agricultural land use and extraction of fuel wood are real threat to lives and livelihoods of women in Nigeria. Women are particularly the most vulnerable because these effects of climate change will increase the females’ burden of meeting their household responsibilities forcing them to spend more time and energy to meet their domestic obligations by providing food for their families and trekking long distances to fetch fuelwoods and water to meet the needs of the family. Adapting to climate variability and mitigating its impacts on the livelihoods of these women has to be done and this can be achieved by making them understand what climate change is and how they can adapt and reduce vulnerabilities.

8. Recommendation

the victims (Alao 1998:94). Thus, the structural position of women not only limits the contribution they are able to make to policy and decision making, it also limits their strengths to cope with the challenges they face as a result of climate change.

7. Conclusion Climate change is a global phenomenon and is already evident in Nigeria. The negative impacts of climate change such as temperature rise, erratic rainfall, desertification, low agricultural yields, drying of water bodies, flooding and environmental degradation as a result of population pressure, intensive agricultural land use and extraction of fuel wood are real threat to lives and livelihoods of women in Nigeria. Women are particularly the most vulnerable because these effects of climate change will increase the females’ burden of meeting their household responsibilities forcing them to spend more time and energy to meet their domestic obligations by providing food for their families and trekking long distances to fetch fuelwoods and water to meet the needs of the family. Adapting to climate variability and mitigating its impacts on the livelihoods of these women has to be done and this can be achieved by making them understand what climate change is and how they can adapt and reduce vulnerabilities.

8. Recommendation

Providing seasonal weather forecasting and warning of approaching severe weather events: This can be achieved by using effective extension workers services at the grassroots especially to enlighten the women of the weather variations and how they can manage such situations. A way must be found within our cultural and religious setting to access women who farm to extension services. This may involve training female extension workers who can then reach other women, especially those in seclusion. Relevant agencies should increase the availability of local water supply, storage as well as improved access to ground water sources to communities to reduce the impact of disasters on women.

Providing seasonal weather forecasting and warning of approaching severe weather events: This can be achieved by using effective extension workers services at the grassroots especially to enlighten the women of the weather variations and how they can manage such situations. A way must be found within our cultural and religious setting to access women who farm to extension services. This may involve training female extension workers who can then reach other women, especially those in seclusion. Relevant agencies should increase the availability of local water supply, storage as well as improved access to ground water sources to communities to reduce the impact of disasters on women.

Introduction of alternative income generating activities when traditional activities are no longer adequate to meet livelihood needs. This can be achieved through small loans, most often without requiring collateral from these women. This facility will help women build assets and savings to buffer against seasonal variation in income, to improve living conditions by moving out of areas prone to disaster. The socio-cultural restraint in Nigeria is an issue. There is a need to educate men to see women as partners in the decision making process who should be allowed to contribute their quota to national development. As at now, men who are the policy-makers are very sceptical about programmes targeted at women. This affects their implementation. Including both women and men in the decision making on climate change mitigation and adaptation initiatives may necessitate the empowering of women to play increasing roles in leadership positions, as well as management and decision making processes to ensure that women’s voices are heard and their needs are addressed.

Introduction of alternative income generating activities when traditional activities are no longer adequate to meet livelihood needs. This can be achieved through small loans, most often without requiring collateral from these women. This facility will help women build assets and savings to buffer against seasonal variation in income, to improve living conditions by moving out of areas prone to disaster. The socio-cultural restraint in Nigeria is an issue. There is a need to educate men to see women as partners in the decision making process who should be allowed to contribute their quota to national development. As at now, men who are the policy-makers are very sceptical about programmes targeted at women. This affects their implementation. Including both women and men in the decision making on climate change mitigation and adaptation initiatives may necessitate the empowering of women to play increasing roles in leadership positions, as well as management and decision making processes to ensure that women’s voices are heard and their needs are addressed.

Government must introduce stringent measures to control the disposal of pollutants to the environment by industries so as to control the pollution of waters and land for economic purposes. These can be done by making those industries responsible for such offences to pay heavy compensations to such host communities affected. Involvement of all stakeholders in both mitigation and adaptation measure to climate change through enhancement of indigenous knowledge and creation of awareness among citizens about the need to be conscious of their carbon foot prints. Women organizations, the Ministries or Offices of Women Affairs should play active roles in the discussions and decisions that are being made in the climate change arena.

Government must introduce stringent measures to control the disposal of pollutants to the environment by industries so as to control the pollution of waters and land for economic purposes. These can be done by making those industries responsible for such offences to pay heavy compensations to such host communities affected. Involvement of all stakeholders in both mitigation and adaptation measure to climate change through enhancement of indigenous knowledge and creation of awareness among citizens about the need to be conscious of their carbon foot prints. Women organizations, the Ministries or Offices of Women Affairs should play active roles in the discussions and decisions that are being made in the climate change arena.

9. References

9. References

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Author’s Profile

Author’s Profile

Rindap Manko Rose Miss Rindap Manko Rose is from Nigeria and an Assistant Lecturer in the Department of Political Science, Plateau State University Bokkos, Plateau State, Nigeria. She is an international author of a book titled “Ethnic Minorities and the Nigerian State”.

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Rindap Manko Rose Miss Rindap Manko Rose is from Nigeria and an Assistant Lecturer in the Department of Political Science, Plateau State University Bokkos, Plateau State, Nigeria. She is an international author of a book titled “Ethnic Minorities and the Nigerian State”.

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Waste to Wealth: Innovative Technologies to Create Beneficial Products through Entrepreneurship for Inclusive Growth

Waste to Wealth: Innovative Technologies to Create Beneficial Products through Entrepreneurship for Inclusive Growth

Sanjay Vohra1, Sarita Kumar2 1,2 Acharya Narendra Dev College (University of Delhi), Govindpuri, New Delhi, India 1 [email protected], [email protected]

Sanjay Vohra1, Sarita Kumar2 1,2 Acharya Narendra Dev College (University of Delhi), Govindpuri, New Delhi, India 1 [email protected], [email protected]

Abstract:

Abstract:

Worldwide, scientists and policy makers are actively engaged in looking beyond islands of “Entrepreneurship Excellence” and disseminating benefits derived from creative minds to the local populace. Constant efforts are on to motivate citizens convert from job-seekers to job-creators with an aim to boost entrepreneurship in order to facilitate the values of education, R&D and growth percolate down to the rural, under-employed and financially weaker sections of society. The prime objective behind these ideas is to develop „Entrepreneurship with Indigenous Innovation‟ in the local context leading to the development of a commercial product with short and inexpensive product cycle. India being a vast industry for silk production, a huge amount of silk waste and waste water is produced every year leading to enormous environmental contamination. In the present endeavour, incubation of micro-business idea is set to be implemented utilizing the concept of using waste water to create economic wealth. Further, combined efforts of waste minimization and recovery of commercially significant product is expected to substantially reduce the amount of waste and boost the environmental profile of country. The applied work includes investigation of a practical and effective way to extract sericin from silk industry wastewater and formulate certain protein-rich beneficial products of human use. Fresh healthy cocoons were procured from silkworm industry and sericin was isolated from them by high temperature and pressure treatment followed by ethanol precipitation. The investigations showed the gradual increase in yield with enhanced concentration of ethanol, the extraction yield ranging from 35 – 73 % with 25 to 90% ethanol. All the four isolates were found to be composed of almost pure sericin with 99.7 to 99.9% proteins. The cosmetics; face cream and hair shampoo; were formulated and manufactured with the extracted sericin. Laboratory testing of the prepared cosmetics proved them to be safe for human use. Our investigations suggest a practical and effective way to extract sericin from silk industry wastewater and formulate certain protein-rich beneficial products of human use. The ideas implemented in the enterprise are known to be eco-friendly, safe and cost-effective especially in view of the growing awareness for environmental hazards. The products are currently being retailed through small and medium players in the rural and semi-urban markets saving on sales and distribution costs. It is envisaged that these eco-friendly products have a huge market and growth potential not only in India but throughout the world. Extraction of the waste material will not only help us to create wealth from the enormous amount of water wasted from the silk industries but also stimulate industrial and economic growth, generate employment and contribute towards national wealth. Subsequently, success, reliability and acceptability of the product can lead to expansion of business with addition of more sophisticated equipments giving the entrepreneur opportunity for business scale-up from the levels of cottage industry to a smallscale industry.

Worldwide, scientists and policy makers are actively engaged in looking beyond islands of “Entrepreneurship Excellence” and disseminating benefits derived from creative minds to the local populace. Constant efforts are on to motivate citizens convert from job-seekers to job-creators with an aim to boost entrepreneurship in order to facilitate the values of education, R&D and growth percolate down to the rural, under-employed and financially weaker sections of society. The prime objective behind these ideas is to develop „Entrepreneurship with Indigenous Innovation‟ in the local context leading to the development of a commercial product with short and inexpensive product cycle. India being a vast industry for silk production, a huge amount of silk waste and waste water is produced every year leading to enormous environmental contamination. In the present endeavour, incubation of micro-business idea is set to be implemented utilizing the concept of using waste water to create economic wealth. Further, combined efforts of waste minimization and recovery of commercially significant product is expected to substantially reduce the amount of waste and boost the environmental profile of country. The applied work includes investigation of a practical and effective way to extract sericin from silk industry wastewater and formulate certain protein-rich beneficial products of human use. Fresh healthy cocoons were procured from silkworm industry and sericin was isolated from them by high temperature and pressure treatment followed by ethanol precipitation. The investigations showed the gradual increase in yield with enhanced concentration of ethanol, the extraction yield ranging from 35 – 73 % with 25 to 90% ethanol. All the four isolates were found to be composed of almost pure sericin with 99.7 to 99.9% proteins. The cosmetics; face cream and hair shampoo; were formulated and manufactured with the extracted sericin. Laboratory testing of the prepared cosmetics proved them to be safe for human use. Our investigations suggest a practical and effective way to extract sericin from silk industry wastewater and formulate certain protein-rich beneficial products of human use. The ideas implemented in the enterprise are known to be eco-friendly, safe and cost-effective especially in view of the growing awareness for environmental hazards. The products are currently being retailed through small and medium players in the rural and semi-urban markets saving on sales and distribution costs. It is envisaged that these eco-friendly products have a huge market and growth potential not only in India but throughout the world. Extraction of the waste material will not only help us to create wealth from the enormous amount of water wasted from the silk industries but also stimulate industrial and economic growth, generate employment and contribute towards national wealth. Subsequently, success, reliability and acceptability of the product can lead to expansion of business with addition of more sophisticated equipments giving the entrepreneur opportunity for business scale-up from the levels of cottage industry to a smallscale industry.

Key Words: Silkworm, sericin, cocoons, soluble protein, environment, industry

Key Words: Silkworm, sericin, cocoons, soluble protein, environment, industry

1. Introduction

1. Introduction

Silk has been a scientific curiosity for centuries and a new insight about these polymers are surfacing with new and improved analytical methods and tools of molecular biology. Silk production is an important cottage industry throughout the world. In 2013, the production of raw silk rose to almost 19%; 159776 metric tonnes from 129662 metric tonnes produced in 2011 (Table 1; Figure 1). Sericulture in India is essentially a cottage industry. The post-rearing operations are cost-effective and silkworm rearing is the only side activity to the main farm activity. India is the second largest producer of the silk in the world after China. It has the distinction of producing

Silk has been a scientific curiosity for centuries and a new insight about these polymers are surfacing with new and improved analytical methods and tools of molecular biology. Silk production is an important cottage industry throughout the world. In 2013, the production of raw silk rose to almost 19%; 159776 metric tonnes from 129662 metric tonnes produced in 2011 (Table 1; Figure 1). Sericulture in India is essentially a cottage industry. The post-rearing operations are cost-effective and silkworm rearing is the only side activity to the main farm activity. India is the second largest producer of the silk in the world after China. It has the distinction of producing

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all the four varieties of silk. In 2013, India produced approximately 16.7% of the raw silk produced at the global level (Table 1).

all the four varieties of silk. In 2013, India produced approximately 16.7% of the raw silk produced at the global level (Table 1).

Table 1: Raw Silk Producing Countries

Table 1: Raw Silk Producing Countries

Country

2008

2009

2010

2011

2012

2013

Country

2008

2009

2010

2011

2012

2013

Bangladesh

-

-

-

-

-

24

Bangladesh

-

-

-

-

-

24

Brazil

1177

811

770

558

614

550

Brazil

1177

811

770

558

614

550

Bulgaria

7.5

6.3

9.4

6

8.5

8.5

Bulgaria

7.5

6.3

9.4

6

8.5

8.5

China

98620

84000

115000

104000

126000

130000

China

98620

84000

115000

104000

126000

130000

Colombia

0.6

0.6

0.6

0.6

0.6

0.6

Colombia

0.6

0.6

0.6

0.6

0.6

0.6

Egypt India

3 18370

3 19690

0.3 21005

0.7 23060

0.7 23679

0.7 26538

Egypt India

3 18370

3 19690

0.3 21005

0.7 23060

0.7 23679

0.7 26538

Indonesia

37

19

20

20

20

16

Indonesia

37

19

20

20

20

16

Iran

180

82

75

120

123

123

Iran

180

82

75

120

123

123

Japan

96

72

54

42

30

30

Japan

96

72

54

42

30

30

North Korea

-

-

-

300

300

300

North Korea

-

-

-

300

300

300

South Korea

3

3

3

3

1.5

1.6

South Korea

3

3

3

3

1.5

1.6

Philippines

1

1

1

1

0.89

1

Philippines

1

1

1

1

0.89

1

Syria

0.4

0.6

0.6

0.5

0.5

0.7

Syria

0.4

0.6

0.6

0.5

0.5

0.7

Thailand

1100

665

655

655

655

680

Thailand

1100

665

655

655

655

680

Tunisia

0.08

0.04

0.12

3

3.95

4

Tunisia

0.08

0.04

0.12

3

3.95

4

Turkey

15

20

18

22

22

25

Turkey

15

20

18

22

22

25

Uzbekistan

770.5

780

940

940

940

980

Uzbekistan

770.5

780

940

940

940

980

Vietnam

-

-

550

500

450

475

Madagascar Total

15

16

16

16

18

18

120396

106170

139100

129662

152846

159776

Vietnam

-

-

550

500

450

475

Madagascar Total

15

16

16

16

18

18

120396

106170

139100

129662

152846

159776

Source: http://inserco.org/en/statistics

Figure 1: Total Production of the Raw Silk at Global Level

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Figure 1: Total Production of the Raw Silk at Global Level

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India has a vast industry for silk production. Most of the states are involved in the silk production, traditional or non-traditional; though maximum production takes place in Southern India (Figure 2). Almost 1/3rd of the total silk production takes place in Karnataka which is followed by Andhra Pradesh and Tamil Nadu. A considerable amount of silk is also produced in West Bengal and Jammu & Kashmir. Other states add a little to the total silk production. According to Central Silk Board of India, India produced 142538 mulberry cocoons and 18755 metric tonnes of raw silk till May 21, 2013 (Table 2).

India has a vast industry for silk production. Most of the states are involved in the silk production, traditional or non-traditional; though maximum production takes place in Southern India (Figure 2). Almost 1/3rd of the total silk production takes place in Karnataka which is followed by Andhra Pradesh and Tamil Nadu. A considerable amount of silk is also produced in West Bengal and Jammu & Kashmir. Other states add a little to the total silk production. According to Central Silk Board of India, India produced 142538 mulberry cocoons and 18755 metric tonnes of raw silk till May 21, 2013 (Table 2).

Table 2: Latest Sericulture Statistics in India showing Production of Cocoons and Silk in Metric Tonnes

Table 2: Latest Sericulture Statistics in India showing Production of Cocoons and Silk in Metric Tonnes

Particulars

2008-09

2009-10

2010-11

2011-12

2012-13 (P)

Particulars

2008-09

2009-10

2010-11

2011-12

2012-13 (P)

Bivoltine Cocoon Crossbreed Cocoon Total Bivoltine Raw Silk Multivoltine Raw Silk Total

8429 116409 128438 1250 14360 15610

8080 1243581 131661 1200 15122 16322

9290 121424 130714 1400 14960 16360

11393 128478 139871 1685 16587 18272

13392 129146 142538 1984 16771 18755

Bivoltine Cocoon Crossbreed Cocoon Total Bivoltine Raw Silk Multivoltine Raw Silk Total

8429 116409 128438 1250 14360 15610

8080 1243581 131661 1200 15122 16322

9290 121424 130714 1400 14960 16360

11393 128478 139871 1685 16587 18272

13392 129146 142538 1984 16771 18755

Source: Central Silk Board, India

Source: Central Silk Board, India

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Figure 2: State-wise Raw Silk Production in India Source: www.sikkimforest.gov.in/images/sericulture_map.jpg

Figure 2: State-wise Raw Silk Production in India Source: www.sikkimforest.gov.in/images/sericulture_map.jpg

Silk is a continuous and delicate strand of two filaments produced by the silk spinnerets of Bombyx mori which are cemented together forming the cocoon of the silkworm. Natural silk is composed of two kinds of proteins (Table 3); the crystalline fibroin is present inside the silk thread which is held together by a gummy and amorphous substance called silk sericin or silk gum present as a tube outside the silk thread (Fabiani et al., 1996). Sericin envelops the fibroin with successive sticky layers during formation of the cocoon constituting about 20–30% of the total cocoon weight (Masahiro et al., 2000).

Silk is a continuous and delicate strand of two filaments produced by the silk spinnerets of Bombyx mori which are cemented together forming the cocoon of the silkworm. Natural silk is composed of two kinds of proteins (Table 3); the crystalline fibroin is present inside the silk thread which is held together by a gummy and amorphous substance called silk sericin or silk gum present as a tube outside the silk thread (Fabiani et al., 1996). Sericin envelops the fibroin with successive sticky layers during formation of the cocoon constituting about 20–30% of the total cocoon weight (Masahiro et al., 2000).

Table 3: Composition of Raw Silk from the Silkworm Bombyx mori (Shanbhag, 2010)

Table 3: Composition of Raw Silk from the Silkworm Bombyx mori (Shanbhag, 2010)

Component Fibroin Sericin Waxy Matter Moisture Carbohydrates and Starch Inorganic matter Pigment

Per cent 70-80% 20-30% 0.4-0.8% 10-11% 1.2-1.6% 0.7% 0.2%

Component Fibroin Sericin Waxy Matter Moisture Carbohydrates and Starch Inorganic matter Pigment

Per cent 70-80% 20-30% 0.4-0.8% 10-11% 1.2-1.6% 0.7% 0.2%

Silk fibroin is a glycoprotein composed of two protein subunits of 370 and 25 kDa whereas silk sericin is a kind of water-soluble globular protein representing a family of proteins whose molecular mass ranges from 10 to 310 kDa (Wei et al., 2005). The protein subunits of fibroin reported to possess high percentage of alanine (12%), glycine (30%) and serine (40%) whereas sericin has been reported to contain 18 kinds of amino acids most of which have strong polar side groups such as hydroxyl, carboxyl, and amino groups (Padamwar and Pawar, 2004; Wei et al., 2005). Furthermore, the sericin has also been reported to be especially rich in serine (32%) and aspartic acid (19%) (Kwang et al., 2003) In the silk manufacturing sector, the silk production involves the process of degumming which removes external sericin from the silk strand prior to dyeing. The process consumes large amount of water and thus, results in the production of huge volume of waste water containing a substantial amount of sericin. Water consumption in silk processing industry can be considered to have a moderate rate. According to Food and Agricultural Organization (1999), approximately 850-1,000 tons of water is used to manufacture 1 ton of raw silk in India.

Silk fibroin is a glycoprotein composed of two protein subunits of 370 and 25 kDa whereas silk sericin is a kind of water-soluble globular protein representing a family of proteins whose molecular mass ranges from 10 to 310 kDa (Wei et al., 2005). The protein subunits of fibroin reported to possess high percentage of alanine (12%), glycine (30%) and serine (40%) whereas sericin has been reported to contain 18 kinds of amino acids most of which have strong polar side groups such as hydroxyl, carboxyl, and amino groups (Padamwar and Pawar, 2004; Wei et al., 2005). Furthermore, the sericin has also been reported to be especially rich in serine (32%) and aspartic acid (19%) (Kwang et al., 2003) In the silk manufacturing sector, the silk production involves the process of degumming which removes external sericin from the silk strand prior to dyeing. The process consumes large amount of water and thus, results in the production of huge volume of waste water containing a substantial amount of sericin. Water consumption in silk processing industry can be considered to have a moderate rate. According to Food and Agricultural Organization (1999), approximately 850-1,000 tons of water is used to manufacture 1 ton of raw silk in India.

Silk sericin due to its proteinaceous nature is susceptible to the action of proteolytic enzymes present in the body and is thus digestible. This property makes it a biocompatible and biodegradable material. Several reports are available which accounted for the influence on many of the physical and biological properties of sericin based on the chemical characterization. Annamaria et al. (1998) have found that environment-friendly biodegradable polymers can be produced by blending sericin with other resins. In 2000, Masahiro et al. reported that consumption of sericin enhances bioavailability of Zn, Fe, Mg and Ca in rats. They suggested the possible use of sericin as a valuable natural ingredient for the food industry. Kato et al. (1998) provided the first evidence of antioxidant action of the silk protein by showing the potential of sericin to suppress in vitro lipid peroxidation. They contributed the activity of sericin to hydroxyl group chelation with trace elements such as copper and iron. Masakazu et al. (2003) found that sericin possesses the biological activity of preventing cell death and promoting cellular growth after acute serum deprivation. Moreover, sericin has been shown to be useful as a degradable biomaterial, biomedical material and polymers for forming articles, functional membranes, fibres and fabrics (Zhang, 2002).

Silk sericin due to its proteinaceous nature is susceptible to the action of proteolytic enzymes present in the body and is thus digestible. This property makes it a biocompatible and biodegradable material. Several reports are available which accounted for the influence on many of the physical and biological properties of sericin based on the chemical characterization. Annamaria et al. (1998) have found that environment-friendly biodegradable polymers can be produced by blending sericin with other resins. In 2000, Masahiro et al. reported that consumption of sericin enhances bioavailability of Zn, Fe, Mg and Ca in rats. They suggested the possible use of sericin as a valuable natural ingredient for the food industry. Kato et al. (1998) provided the first evidence of antioxidant action of the silk protein by showing the potential of sericin to suppress in vitro lipid peroxidation. They contributed the activity of sericin to hydroxyl group chelation with trace elements such as copper and iron. Masakazu et al. (2003) found that sericin possesses the biological activity of preventing cell death and promoting cellular growth after acute serum deprivation. Moreover, sericin has been shown to be useful as a degradable biomaterial, biomedical material and polymers for forming articles, functional membranes, fibres and fabrics (Zhang, 2002).

Sericin has also been reported to be a valuable ingredient for medical, pharmaceutical and cosmetics because of its properties like gelling ability, moisture retention capacity and skin adhesion. Sericin alone or in combination with fibroin has been used in skin, hair and nail cosmetics. Padamwar et al. (2005) revealed that the silk sericin has resemblance with the natural moisturizing factor (NMR) and can overcome the excessive transepidermal water loss (TEWL), one of the causes of dry skin. They found that the sericin can form a moisturizing,

Sericin has also been reported to be a valuable ingredient for medical, pharmaceutical and cosmetics because of its properties like gelling ability, moisture retention capacity and skin adhesion. Sericin alone or in combination with fibroin has been used in skin, hair and nail cosmetics. Padamwar et al. (2005) revealed that the silk sericin has resemblance with the natural moisturizing factor (NMR) and can overcome the excessive transepidermal water loss (TEWL), one of the causes of dry skin. They found that the sericin can form a moisturizing,

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semi-occlusive, protective, anti-wrinkle film on the skin surface imparting an immediate, long lasting, smooth, silky feeling. Interestingly, the configuration of sericin found to be very close to the skin of human beings caused its natural saturation into skin and revitalization of cells.

semi-occlusive, protective, anti-wrinkle film on the skin surface imparting an immediate, long lasting, smooth, silky feeling. Interestingly, the configuration of sericin found to be very close to the skin of human beings caused its natural saturation into skin and revitalization of cells.

In 1998, Kato et al. discovered that sericin can restrain the functions of active-oxygen, which is the major factor of ageing bringing wrinkles and dark spots. They also reported that sericin inhibits the activity of tyrosinase enzyme which is responsible for biosynthesis of skin melanin. Siqin et al. (2003) found that sericin exerts inhibitory activity on ultraviolet radiation, induced acute damage and tumour promotion by reducing oxidative stress in the skin of hairless mouse.

In 1998, Kato et al. discovered that sericin can restrain the functions of active-oxygen, which is the major factor of ageing bringing wrinkles and dark spots. They also reported that sericin inhibits the activity of tyrosinase enzyme which is responsible for biosynthesis of skin melanin. Siqin et al. (2003) found that sericin exerts inhibitory activity on ultraviolet radiation, induced acute damage and tumour promotion by reducing oxidative stress in the skin of hairless mouse.

All the above properties of sericin can lead to its beneficial use in food, cosmetics and pharmaceutical products as well as for biomaterials manufacture. Nevertheless, processing of raw silk cocoon produces about 50,000 tons of sericin worldwide each year and sericin is mostly discarded in silk processing wastewater (Zhang, 2002). Furthermore, the discard of sericin in degumming wastewater results in a high COD (Chemical Oxygen Demand) leading to enormous environmental contamination (Fabiani et al., 1996). If this protein by-product is recovered and recycled, it can represent a significant economic and social benefit. According to Central Silk Board, New Delhi; approximately 4580 metric tonnes silk waste was produced by silk industries in 2012. Till May, 2013, already 4689 metric tonnes silk waste has been produced.

All the above properties of sericin can lead to its beneficial use in food, cosmetics and pharmaceutical products as well as for biomaterials manufacture. Nevertheless, processing of raw silk cocoon produces about 50,000 tons of sericin worldwide each year and sericin is mostly discarded in silk processing wastewater (Zhang, 2002). Furthermore, the discard of sericin in degumming wastewater results in a high COD (Chemical Oxygen Demand) leading to enormous environmental contamination (Fabiani et al., 1996). If this protein by-product is recovered and recycled, it can represent a significant economic and social benefit. According to Central Silk Board, New Delhi; approximately 4580 metric tonnes silk waste was produced by silk industries in 2012. Till May, 2013, already 4689 metric tonnes silk waste has been produced.

Keeping the above reported properties and potential use of sericin in view, present studies were carried out to investigate a practical and effective way to extract sericin from silk industry wastewater and formulate certain protein-rich beneficial products of human use. The study could help in devising strategies to formulate valuable and eco-friendly wealth from the enormous amount of wastewater that is released from the industries every day causing environmental contamination. Moreover, it would help us to create employment keeping in view the huge market and the growth potential of the products.

Keeping the above reported properties and potential use of sericin in view, present studies were carried out to investigate a practical and effective way to extract sericin from silk industry wastewater and formulate certain protein-rich beneficial products of human use. The study could help in devising strategies to formulate valuable and eco-friendly wealth from the enormous amount of wastewater that is released from the industries every day causing environmental contamination. Moreover, it would help us to create employment keeping in view the huge market and the growth potential of the products.

2.

Materials and Methods

2.

Materials and Methods

2.1 Procurement of Silk Cocoons

2.1 Procurement of Silk Cocoons

Freshly spun mulberry cocoons were procured from the Sericulture unit in Palampur, Himachal Pradesh, India. The healthy and disease-free cocoons were sorted out and stored in a clean, moisture-free polythene bag. The selected cocoons were cut longitudinally and pupae were removed from them. The empty cocoon shells were chopped using a clean knife into small pieces and stored in a sealed polythene pack.

Freshly spun mulberry cocoons were procured from the Sericulture unit in Palampur, Himachal Pradesh, India. The healthy and disease-free cocoons were sorted out and stored in a clean, moisture-free polythene bag. The selected cocoons were cut longitudinally and pupae were removed from them. The empty cocoon shells were chopped using a clean knife into small pieces and stored in a sealed polythene pack.

2.2 Isolation of Sericin

2.2 Isolation of Sericin

Sericin was isolated from the chopped cocoon shells by adopting the methodology of Wu et al. (2006). The chopped pieces of cocoons were subjected to high temperature and pressure treatment in an autoclave. Thereafter, the pieces were boiled in distilled water for an hour in order to remove water-soluble sericin from them. The degumming wastewater, thus obtained was concentrated at 40 °C by vaporizing water under steam heating, and recycling the condensate three times. The concentrate was dried as flour and was assessed for protein content according to the method of Lowry et al. (1951) with bovine serum albumin used as standard.

Sericin was isolated from the chopped cocoon shells by adopting the methodology of Wu et al. (2006). The chopped pieces of cocoons were subjected to high temperature and pressure treatment in an autoclave. Thereafter, the pieces were boiled in distilled water for an hour in order to remove water-soluble sericin from them. The degumming wastewater, thus obtained was concentrated at 40 °C by vaporizing water under steam heating, and recycling the condensate three times. The concentrate was dried as flour and was assessed for protein content according to the method of Lowry et al. (1951) with bovine serum albumin used as standard.

The flour was then dissolved in distilled water at the ratio of 1:10 (w/v). The solution obtained was chilled close to 4 °C. Pure ethanol previously chilled to 20 °C was slowly added to sericin solution with constant stirring to obtain a final ethanol concentration of 75% (v/v). The obtained mixture was then kept at 18 °C overnight. Sericin powder was obtained by centrifuging the sericin solution at 3500 rpm for 20 min, followed by alcohol evaporation under reduced pressure at 40 °C. The methodology was repeated with different amounts of ethanol in order to obtain a final ethanol concentration of 25% (v/v), 50% (v/v) and 90% (v/v).

The flour was then dissolved in distilled water at the ratio of 1:10 (w/v). The solution obtained was chilled close to 4 °C. Pure ethanol previously chilled to 20 °C was slowly added to sericin solution with constant stirring to obtain a final ethanol concentration of 75% (v/v). The obtained mixture was then kept at 18 °C overnight. Sericin powder was obtained by centrifuging the sericin solution at 3500 rpm for 20 min, followed by alcohol evaporation under reduced pressure at 40 °C. The methodology was repeated with different amounts of ethanol in order to obtain a final ethanol concentration of 25% (v/v), 50% (v/v) and 90% (v/v).

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Sericin extraction yield was calculated by weight method, as shown in the following formula: Extraction yield (%) =

Sericin powder by weight X 100

Sericin extraction yield was calculated by weight method, as shown in the following formula: Extraction yield (%) =

Sericin powder by weight X 100

Dried Concentrate (Flour) by weight

Dried Concentrate (Flour) by weight

All the four isolates of sericin were again assessed for the protein content according to the method of Lowry et al. (1951).

All the four isolates of sericin were again assessed for the protein content according to the method of Lowry et al. (1951).

2.3 Formulation of Beneficial Products

2.3 Formulation of Beneficial Products

The isolated sericin was used to formulate eco-friendly cosmetics for human use. The cosmetics manufactured were fairness face cream and hair shampoo. These products were formulated using natural and innocuous products with isolated sericin as one of the components.

The isolated sericin was used to formulate eco-friendly cosmetics for human use. The cosmetics manufactured were fairness face cream and hair shampoo. These products were formulated using natural and innocuous products with isolated sericin as one of the components.

2.4 Testing of Products for Safe Use

2.4 Testing of Products for Safe Use

The products manufactured in the laboratory were tested in the Government-approved laboratory; Sophisticated Industrial Materials Analytic Labs Pvt. Ltd. (SIMA Labs) for safe use by individuals. The parameters tested for face creams were thermal stability, pH, fat content, heavy metals, total residue, arsenic content, microbial limit, total viable count and gram negative bacteria. The shampoos were tested for non-volatile alcohol soluble matter, pH and foam height.

The products manufactured in the laboratory were tested in the Government-approved laboratory; Sophisticated Industrial Materials Analytic Labs Pvt. Ltd. (SIMA Labs) for safe use by individuals. The parameters tested for face creams were thermal stability, pH, fat content, heavy metals, total residue, arsenic content, microbial limit, total viable count and gram negative bacteria. The shampoos were tested for non-volatile alcohol soluble matter, pH and foam height.

3.

Results

3.

Results

Present investigations were carried out to formulate certain protein-rich beneficial products for human beings using sericin extracted from the silk industry wastewater. The dried flour recovered from the degumming wastewater primarily comprised of water-soluble sericin with almost negligible fibroin. When the dried flour recovered from the degumming wastewater was evaluated for the protein content, it was observed to exhibit an amount of 94.0% suggesting the presence of almost 94.0% sericin. The dried flour was then used to recover pure sericin by removing the non-protein components.

Present investigations were carried out to formulate certain protein-rich beneficial products for human beings using sericin extracted from the silk industry wastewater. The dried flour recovered from the degumming wastewater primarily comprised of water-soluble sericin with almost negligible fibroin. When the dried flour recovered from the degumming wastewater was evaluated for the protein content, it was observed to exhibit an amount of 94.0% suggesting the presence of almost 94.0% sericin. The dried flour was then used to recover pure sericin by removing the non-protein components.

The results of the extraction yield with different concentration of ethanol are presented in Table IV. The data clearly reveal that the yield of sericin from the wastewater gradually enhances with the increase in concentration of ethanol, the extraction yield ranging from 34.7% to 72.9 % when extracted with 25% to 90% ethanol. The sericin yield with 50% ethanol did now show significant increase as compared to that with 25% ethanol but the yield increased dramatically (88.5%) when extracted with 75% ethanol (Table 4).

The results of the extraction yield with different concentration of ethanol are presented in Table IV. The data clearly reveal that the yield of sericin from the wastewater gradually enhances with the increase in concentration of ethanol, the extraction yield ranging from 34.7% to 72.9 % when extracted with 25% to 90% ethanol. The sericin yield with 50% ethanol did now show significant increase as compared to that with 25% ethanol but the yield increased dramatically (88.5%) when extracted with 75% ethanol (Table 4).

Table 4: Extraction Yield of Sericin

Table 4: Extraction Yield of Sericin

Ethanol concentration (%) (v/v) 25 50 75 90

Extraction yield (%) (w/w) 34.7 ± 2.8* a 48.3 ± 1.7 a b 65.4 ± 0.5 bc 72.9 ± 3.2 c

Ethanol concentration (%) (v/v) 25 50 75 90

Extraction yield (%) (w/w) 34.7 ± 2.8* a 48.3 ± 1.7 a b 65.4 ± 0.5 bc 72.9 ± 3.2 c

*Mean of three replicates ± standard deviation

*Mean of three replicates ± standard deviation

Figures in the column followed by different letters are significantly different (P< 0.05, one way ANOVA followed by Tukey’s all pair wise multiple comparison test)

Figures in the column followed by different letters are significantly different (P< 0.05, one way ANOVA followed by Tukey’s all pair wise multiple comparison test)

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The estimation of total proteins from all the four sericin isolates revealed 99.7 to 99.9% protein content in the isolates suggesting that these are composed of almost pure sericin. When the formulations were tested by Government-approved laboratory; SIMA Labs; the formulations were found to be safe for human use. The sericincontaining hair shampoo was observed to exhibit a pH of 5.9 and a foam height of 175 mm which were well within the range (Table 5). Even, the percent amount of non–volatile alcohol soluble matter was quite appreciable.

The estimation of total proteins from all the four sericin isolates revealed 99.7 to 99.9% protein content in the isolates suggesting that these are composed of almost pure sericin. When the formulations were tested by Government-approved laboratory; SIMA Labs; the formulations were found to be safe for human use. The sericincontaining hair shampoo was observed to exhibit a pH of 5.9 and a foam height of 175 mm which were well within the range (Table 5). Even, the percent amount of non–volatile alcohol soluble matter was quite appreciable.

Table 5: Test results in Government Approved Laboratories for Hair Shampoo

Table 5: Test results in Government Approved Laboratories for Hair Shampoo

Parameter Colour Non – volatile alcohol soluble matter pH Foam height (of 2% solution)

Optimum range Variable > 10.0 % w/w

Result Dark brown 13.63% w/w

4.0 – 9.0 > 150 mm

5.19 175.0 mm

Parameter Colour Non – volatile alcohol soluble matter pH Foam height (of 2% solution)

Optimum range Variable > 10.0 % w/w

Result Dark brown 13.63% w/w

4.0 – 9.0 > 150 mm

5.19 175.0 mm

The sericin-containing face cream was also observed to exhibit a balance of chemicals with pH of 6.45 and 8.4% w/w fatty substance. Remarkably, the cream was stable at high temperatures and did not possess any harmful components, Arsenic content, heavy metals or microorganisms which may prove harmful to the human skin (Table 6).

The sericin-containing face cream was also observed to exhibit a balance of chemicals with pH of 6.45 and 8.4% w/w fatty substance. Remarkably, the cream was stable at high temperatures and did not possess any harmful components, Arsenic content, heavy metals or microorganisms which may prove harmful to the human skin (Table 6).

Table 6: Test results in Government Approved Laboratories for Face Cream

Table 6: Test results in Government Approved Laboratories for Face Cream

Parameter Thermal stability pH Total fatty substance Total residue Heavy metals Arsenic content Total microbial viable count Gram negative pathogens

Optimum range 4.0 – 9.0 > 5.0% w/w > 10.0% w/w < 20 ppm < 2 ppm < 1000 cfu/gm Nil

Result Yes 6.45 8.4% w/w 70.2% w/w Nil Nil Nil Nil

4. Discussion

Parameter Thermal stability pH Total fatty substance Total residue Heavy metals Arsenic content Total microbial viable count Gram negative pathogens

Optimum range 4.0 – 9.0 > 5.0% w/w > 10.0% w/w < 20 ppm < 2 ppm < 1000 cfu/gm Nil

Result Yes 6.45 8.4% w/w 70.2% w/w Nil Nil Nil Nil

4. Discussion

In India, sericulture is essentially a cottage industry, the silk industry being the source of income for a large number of families. The rearing of the silkworms is the only side activity to the main farm activity in rural India (Padamwar and Pawar, 2004). In fact, India is the second largest producer of the silk in the world, after China, producing approximately 16.7% of the raw silk produced at the global level. It is well known that the process of degumming is used to get rid of the sericin covering of the silk thread, prior to the process dyeing in the silk industry. Reports reveal that the process of degumming utilizes a tremendous amount of water resulting in the release of enormous quantity of wastewater from the industries every day.

In India, sericulture is essentially a cottage industry, the silk industry being the source of income for a large number of families. The rearing of the silkworms is the only side activity to the main farm activity in rural India (Padamwar and Pawar, 2004). In fact, India is the second largest producer of the silk in the world, after China, producing approximately 16.7% of the raw silk produced at the global level. It is well known that the process of degumming is used to get rid of the sericin covering of the silk thread, prior to the process dyeing in the silk industry. Reports reveal that the process of degumming utilizes a tremendous amount of water resulting in the release of enormous quantity of wastewater from the industries every day.

During the last decade, sericin has emerged as a valuable commercial resource in many industries, such as those making cosmetics and pharmaceuticals, and food, as well as in the production of many functional biomaterials (Voegeli et al., 1993; Kato et al., 1998; Zhaorigetu et al., 2001). Silk sericin has been known to increase skin elasticity, anti-wrinkle and anti-ageing effects. The high hydroxy-amino acid content of sericin (approximately 46%) is of particular importance for the water-binding capacity which regulates the skin’s moisture content. On the other hand, it has a unique carbohydrate moiety and a unique repetitive amino acid sequence which give sericin its high affinity for proteins resulting in a tightening, anti-wrinkle effect (Mondal et al., 2007). The researchers have

During the last decade, sericin has emerged as a valuable commercial resource in many industries, such as those making cosmetics and pharmaceuticals, and food, as well as in the production of many functional biomaterials (Voegeli et al., 1993; Kato et al., 1998; Zhaorigetu et al., 2001). Silk sericin has been known to increase skin elasticity, anti-wrinkle and anti-ageing effects. The high hydroxy-amino acid content of sericin (approximately 46%) is of particular importance for the water-binding capacity which regulates the skin’s moisture content. On the other hand, it has a unique carbohydrate moiety and a unique repetitive amino acid sequence which give sericin its high affinity for proteins resulting in a tightening, anti-wrinkle effect (Mondal et al., 2007). The researchers have

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revealed that the application of sericin on the human skin results in a uniform film which can be attributed to its very high molecular weight (Padamwar et al. 2005). This substantive semi-occlusive film persists even after washing, and protects the skin against harmful environmental influences. They have also shown that sericin film leaves the skin with a smooth, silky feeling and substantiates several appropriate cosmetic effects. Its versatility makes sericin a very valuable natural ingredient for a wide range of cosmetic products.

revealed that the application of sericin on the human skin results in a uniform film which can be attributed to its very high molecular weight (Padamwar et al. 2005). This substantive semi-occlusive film persists even after washing, and protects the skin against harmful environmental influences. They have also shown that sericin film leaves the skin with a smooth, silky feeling and substantiates several appropriate cosmetic effects. Its versatility makes sericin a very valuable natural ingredient for a wide range of cosmetic products.

Sericin, at present, is an unutilized by-product of the textile industry and the discarded degumming wastewater also ultimately leads to environmental contamination due to the high oxygen demand for its degradation by microbes (Fabiani et al., 1996). In India approximately 850-1,000 tons of water is used to manufacture 1 ton of raw silk (FAO, 1999). According to Central Silk Board, New Delhi; approximately 4580 metric tonnes silk waste was produced by silk industries in 2012. Till May, 2013, already 4689 metric tonnes silk waste has been produced. It is estimated that approximately 50,000 tons of sericin could be recovered from the waste solution out of the 1 million tons (fresh weight) of cocoon production worldwide or from about 400,000 tons of dry cocoons (Zhang, 2002). According to Vaithanomsat and Kitpreechanvich (2008), the recovery of sericin from wastewater could be used as a ‘value added’ product for many sericin-derived products and purposes. They advocated that the utilization of extracted sericin from wastewater would also be beneficial in terms of the economy and the environment.

Sericin, at present, is an unutilized by-product of the textile industry and the discarded degumming wastewater also ultimately leads to environmental contamination due to the high oxygen demand for its degradation by microbes (Fabiani et al., 1996). In India approximately 850-1,000 tons of water is used to manufacture 1 ton of raw silk (FAO, 1999). According to Central Silk Board, New Delhi; approximately 4580 metric tonnes silk waste was produced by silk industries in 2012. Till May, 2013, already 4689 metric tonnes silk waste has been produced. It is estimated that approximately 50,000 tons of sericin could be recovered from the waste solution out of the 1 million tons (fresh weight) of cocoon production worldwide or from about 400,000 tons of dry cocoons (Zhang, 2002). According to Vaithanomsat and Kitpreechanvich (2008), the recovery of sericin from wastewater could be used as a ‘value added’ product for many sericin-derived products and purposes. They advocated that the utilization of extracted sericin from wastewater would also be beneficial in terms of the economy and the environment.

The present investigations were thus conducted to investigate a practical and effective way to extract sericin from silk industry wastewater and formulate certain protein-rich beneficial products of human use. The recovery of sericin not only can reduce the environmental impact but also can generate revenue as a natural valueadded material in silk production. Our investigations led to the easy removal of external sericin from fibroin through high temperature and pressure treatment of the freshly formed cocoons. It has been reported that silk sericin is maintained in solution by surface hydrophilic groups with the water solvent (Wei et al., 2005). The dried flour recovered from the degumming wastewater was thus suggested to be comprised of sericin with almost negligible fibroin as the fibroin is a water-insoluble fibrous protein while sericin is a water-soluble globular protein.

The present investigations were thus conducted to investigate a practical and effective way to extract sericin from silk industry wastewater and formulate certain protein-rich beneficial products of human use. The recovery of sericin not only can reduce the environmental impact but also can generate revenue as a natural valueadded material in silk production. Our investigations led to the easy removal of external sericin from fibroin through high temperature and pressure treatment of the freshly formed cocoons. It has been reported that silk sericin is maintained in solution by surface hydrophilic groups with the water solvent (Wei et al., 2005). The dried flour recovered from the degumming wastewater was thus suggested to be comprised of sericin with almost negligible fibroin as the fibroin is a water-insoluble fibrous protein while sericin is a water-soluble globular protein.

Different researchers have adopted the different method of sericin removal and extraction from the degumming wastewater (Wei et al., 2005; Wu et al., 2006; Sonjui et al. 2009). Our investigations adopted the methodology of Wu et al. (2006) to isolate the sericin from the silk wastewater using chilled ethanol precipitation. The authors reported that addition of ethanol to sericin solution reduced the solvent polarity making the sericin less soluble which then can be separated from silk wastewater by centrifugation. They also showed that precipitation conducted at a chilled temperature minimised denaturation of the protein in ethanol resulting in yield of 46 - 71% w/w with different concentrations of ethanol (30-90 % v/v).

Different researchers have adopted the different method of sericin removal and extraction from the degumming wastewater (Wei et al., 2005; Wu et al., 2006; Sonjui et al. 2009). Our investigations adopted the methodology of Wu et al. (2006) to isolate the sericin from the silk wastewater using chilled ethanol precipitation. The authors reported that addition of ethanol to sericin solution reduced the solvent polarity making the sericin less soluble which then can be separated from silk wastewater by centrifugation. They also showed that precipitation conducted at a chilled temperature minimised denaturation of the protein in ethanol resulting in yield of 46 - 71% w/w with different concentrations of ethanol (30-90 % v/v).

Our investigations showed that the sericin yield gradually enhanced with the increase in concentration of ethanol, the extraction yield ranging from 35 – 73 % with 25 to 90% ethanol. These results are in conformity with that of Wu et al. (2006) who reported 71% yield of sericin when extracted with 90% ethanol. However, keeping in the view of economic constraints in industrial extraction, they preferred 75% ethanol concentration for extraction over 90%, whereby the yield recovery for sericin powder with 75% ethanol reached 64%.

Our investigations showed that the sericin yield gradually enhanced with the increase in concentration of ethanol, the extraction yield ranging from 35 – 73 % with 25 to 90% ethanol. These results are in conformity with that of Wu et al. (2006) who reported 71% yield of sericin when extracted with 90% ethanol. However, keeping in the view of economic constraints in industrial extraction, they preferred 75% ethanol concentration for extraction over 90%, whereby the yield recovery for sericin powder with 75% ethanol reached 64%.

Sericin hydrolysates are being reported to be of potential use as conditioners for skin and hair (Hata, 1987). The cosmetic formulations prepared with sericin isolates in the present studies were found to be protein-rich and safe for human use. The sericin-containing hair shampoo was observed to exhibit a pH of 5.9 and a foam height of 175 mm. These parameters were well within the range of approved parameters. Shampoos containing sericin with pH less than six have been reported useful for the care and cleaning of hairs (Engel and Hoppe, 1988). Likewise, the sericin-containing face cream was found to be safe for human skin exhibiting a pH of 6.45 and 8.4% w/w fatty substance. The cream did not possess any harmful components, heavy metals or microorganisms. These parameters prove the safe use of cream for human beings. Earlier, Padmavar and Pawar (2004) had reported that sericin increases the hydroxyproline content in stratum corneum and decrease skin impedance revealing its moisturizing

Sericin hydrolysates are being reported to be of potential use as conditioners for skin and hair (Hata, 1987). The cosmetic formulations prepared with sericin isolates in the present studies were found to be protein-rich and safe for human use. The sericin-containing hair shampoo was observed to exhibit a pH of 5.9 and a foam height of 175 mm. These parameters were well within the range of approved parameters. Shampoos containing sericin with pH less than six have been reported useful for the care and cleaning of hairs (Engel and Hoppe, 1988). Likewise, the sericin-containing face cream was found to be safe for human skin exhibiting a pH of 6.45 and 8.4% w/w fatty substance. The cream did not possess any harmful components, heavy metals or microorganisms. These parameters prove the safe use of cream for human beings. Earlier, Padmavar and Pawar (2004) had reported that sericin increases the hydroxyproline content in stratum corneum and decrease skin impedance revealing its moisturizing

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property. Sericin also gels with pluronic and carbopol thus acting as moisturizer by repairing natural moisturizing factor and preventing water loss from the skin. Later, Yoshioka et al. (2001) have revealed that presence of sericin in sunscreen compositions enhances the light screening effect of UV filters and thus have fairness properties. It has been reported that creams containing 0.001 to 30% w/w of sericin have improved cleansing properties with less skin irritation (Sakamoto and Yamakishi, 2000). Sericin hydrosylates coated talc, iron oxide, mica and nylon have been used to formulate foundation cream (Yamada and Yuri, 1998).

property. Sericin also gels with pluronic and carbopol thus acting as moisturizer by repairing natural moisturizing factor and preventing water loss from the skin. Later, Yoshioka et al. (2001) have revealed that presence of sericin in sunscreen compositions enhances the light screening effect of UV filters and thus have fairness properties. It has been reported that creams containing 0.001 to 30% w/w of sericin have improved cleansing properties with less skin irritation (Sakamoto and Yamakishi, 2000). Sericin hydrosylates coated talc, iron oxide, mica and nylon have been used to formulate foundation cream (Yamada and Yuri, 1998).

Above investigations suggest a practical and effective way to extract sericin from silk industry wastewater and formulate certain protein-rich beneficial products of human use. This would definitely not only help us to create wealth from the enormous amount of water wasted from the silk industries but also stimulate industrial and economic growth, generate employment and contribute towards national wealth. Subsequently, success, reliability and acceptability of the product can lead to expansion of business with addition of more sophisticated equipments giving the entrepreneur opportunity for business scale-up from the levels of cottage industry to a small-scale industry.

Above investigations suggest a practical and effective way to extract sericin from silk industry wastewater and formulate certain protein-rich beneficial products of human use. This would definitely not only help us to create wealth from the enormous amount of water wasted from the silk industries but also stimulate industrial and economic growth, generate employment and contribute towards national wealth. Subsequently, success, reliability and acceptability of the product can lead to expansion of business with addition of more sophisticated equipments giving the entrepreneur opportunity for business scale-up from the levels of cottage industry to a small-scale industry.

5.

Acknowledgements

The investigations presented in this research paper were carried out in 2012 as a part of the project sanctioned under Innovation and Entrepreneurship Development Centre (IEDC) of Acharya Narendra Dev College. Authors are thankful to Department of Science and Technology, New Delhi for providing financial assistance to the project. The authors extend thanks to Dr. Savithri Singh, Principal, Acharya Narendra Dev College for providing the laboratory facilities to conduct the experimental work.

6. References

5.

Acknowledgements

The investigations presented in this research paper were carried out in 2012 as a part of the project sanctioned under Innovation and Entrepreneurship Development Centre (IEDC) of Acharya Narendra Dev College. Authors are thankful to Department of Science and Technology, New Delhi for providing financial assistance to the project. The authors extend thanks to Dr. Savithri Singh, Principal, Acharya Narendra Dev College for providing the laboratory facilities to conduct the experimental work.

6. References

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Kwang, Y. C., Jae, Y. M., Yong, W. L., Kwang, G. L., Joo, H. Y., Hae, Y. K., et al. (2003). Preparation of selfassembled silk sericin nanoparticles. International Journal of Biological Macromolecules, 32, 36–42.

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Mondal, M., Trivedy, K. & Kumar, N. S. (2007). The silk proteins, sericin and fibroin in silkworm, Bombyx mori Linn. - a review. Caspian Journal of Environment Science, 5, 63-76.

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Masahiro, S., Hideyuki, Y., & Norihisa, K. (2000). Consumption of silk protein, sericin elevates intestinal absorption of zinc, iron, magnesium and calcium in rats. Nutrition Research, 20, 1505–1511.

Masahiro, S., Hideyuki, Y., & Norihisa, K. (2000). Consumption of silk protein, sericin elevates intestinal absorption of zinc, iron, magnesium and calcium in rats. Nutrition Research, 20, 1505–1511.

Masakazu, T., Kazuhisa, T., Hideyuki, Y., Hiroshi, T., & Shigeru, N. (2003). The silk protein, sericin, protects against cell death caused by acute serum deprivation in insect cell culture. Biotechnology Letters 25, 1805– 1809.

Masakazu, T., Kazuhisa, T., Hideyuki, Y., Hiroshi, T., & Shigeru, N. (2003). The silk protein, sericin, protects against cell death caused by acute serum deprivation in insect cell culture. Biotechnology Letters 25, 1805– 1809.

Padamwar, M.N. & Pawar, A.P. (2004). Silk sericin and its applications: A review. Journal of Scientific & Industrial Research 63, 323-329.

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Padamwar, M.N., Pawar, A.P., Daithankar, A.V. & Mahadik, K.R. (2005). Silk sericin as a moisturizer: an in vivo study. Journal of Cosmetic Dermatology 4, 250-257.

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Siqin, Z., Noriyuki, Y., Masahiro, S., Hiromitsu, W., & Norihisa, K. (2003). Inhibitory effects of silk protein, sericin on UVB-induced acute damage and tumor promotion by reducing oxidative stress in the skin of hairless mouse. Journal of Photochemistry and Photobiology B: Biology 71, 11–17.

Siqin, Z., Noriyuki, Y., Masahiro, S., Hiromitsu, W., & Norihisa, K. (2003). Inhibitory effects of silk protein, sericin on UVB-induced acute damage and tumor promotion by reducing oxidative stress in the skin of hairless mouse. Journal of Photochemistry and Photobiology B: Biology 71, 11–17.

Sonjui, T., Noomhorm C. and Promboon, A. (2009) Sericin recovery from silk cocoon degumming wastewater by a membrane process. Kasetsart J. (Nat. Sci.) 43: 538 – 549.

Sonjui, T., Noomhorm C. and Promboon, A. (2009) Sericin recovery from silk cocoon degumming wastewater by a membrane process. Kasetsart J. (Nat. Sci.) 43: 538 – 549.

Vaithanomsat, P. & Kitpreechavanich, V. (2008). Sericin separation from silk degumming wastewater. Separation and Purification Technology 59, 129-133.

Vaithanomsat, P. & Kitpreechavanich, V. (2008). Sericin separation from silk degumming wastewater. Separation and Purification Technology 59, 129-133.

Wei, T., Li, M. Z., & Xie, R. J. (2005). Preparation and structure of porous silk sericin materials. Macromolecular Materials and Engineering, 290, 188–194.

Wei, T., Li, M. Z., & Xie, R. J. (2005). Preparation and structure of porous silk sericin materials. Macromolecular Materials and Engineering, 290, 188–194.

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Yamada, H. & Yuri, O. (1998). Sericin-coated powders for cosmetics. Jpn Kokai Tokkyo Koho Jpn 10226626 A2, P9, Chemical Abstracts 129, 207009.

Yamada, H. & Yuri, O. (1998). Sericin-coated powders for cosmetics. Jpn Kokai Tokkyo Koho Jpn 10226626 A2, P9, Chemical Abstracts 129, 207009.

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Author’s Profile

Author’s Profile

Mr. Sanjay Vohra is working as an Instructor and Placement officer at Acharya Narendra Dev College, University of Delhi, India since 1993. In 2010, he set up an Innovation and Entrepreneurship Development Centre at the college which is sponsored by National Science & Technology Entrepreneurship Development Board (NSTEDB), Department of Science & Technology, Government of India. Since then, he is also working as Coordinator of the centre and is responsible for imparting trainings to entrepreneurs through Entrepreneur Development Programs; organize entrepreneurship awareness camps, conducting technical sessions and motivating students towards entrepreneurship. Till date he has organized three development programs and twelve awareness camps in and outside the college. He has attended many entrepreneurship training programs held in India and abroad; and is also credited with three research publications in Science Tech Entrepreneur, a publication of NSTEDB.


Dr. Sarita Kumar, a trained entomologist, obtained her doctoral degree from University of Delhi, India and is presently working as Associate Professor in Zoology, Acharya Narendra Dev College, University of Delhi, India. With more than 23 years of teaching experience and 14 years of research experience, her area of research interest include insect pest and vector control. A prolific writer and research scholar, she is credited with over 50 publications in reputed international/national research journals and conferences; 14 Books and 15 e-Chapters on science and science education. She works with government organizations for curriculum development; editing and reviewing of educational content; and as resource person in many training programs. She has herself conducted and organized over twenty workshops and conference in diverse areas of science. Dr. Kumar has mentored more than hundred students in innovative science projects and developed products from waste emerged from industries. She is a proud recipient of the ‘Meritorious Teacher Award’ from Govt. of NCT of Delhi; ‘Shiksha Rattan Puraskar’ from India International Friendship Society; and ‘Distinguished Teacher Award’ by University of Delhi.

Dr. Sarita Kumar, a trained entomologist, obtained her doctoral degree from University of Delhi, India and is presently working as Associate Professor in Zoology, Acharya Narendra Dev College, University of Delhi, India. With more than 23 years of teaching experience and 14 years of research experience, her area of research interest include insect pest and vector control. A prolific writer and research scholar, she is credited with over 50 publications in reputed international/national research journals and conferences; 14 Books and 15 e-Chapters on science and science education. She works with government organizations for curriculum development; editing and reviewing of educational content; and as resource person in many training programs. She has herself conducted and organized over twenty workshops and conference in diverse areas of science. Dr. Kumar has mentored more than hundred students in innovative science projects and developed products from waste emerged from industries. She is a proud recipient of the ‘Meritorious Teacher Award’ from Govt. of NCT of Delhi; ‘Shiksha Rattan Puraskar’ from India International Friendship Society; and ‘Distinguished Teacher Award’ by University of Delhi.

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Step Towards SOCIAL ENTREPRENEURSHIP: Innovative Ideas to Create Mosquito Repellent Products through waste and low cost material under Entrepreneurship for Inclusive Growth

Step Towards SOCIAL ENTREPRENEURSHIP: Innovative Ideas to Create Mosquito Repellent Products through waste and low cost material under Entrepreneurship for Inclusive Growth

Akshat Chadha, Sanjay Vohra

Akshat Chadha, Sanjay Vohra

Acharya Narendra Dev College (University of Delhi), Kalkaji, New Delhi-110 019, INDIA [email protected]

Acharya Narendra Dev College (University of Delhi), Kalkaji, New Delhi-110 019, INDIA [email protected]

Abstract:

Abstract:

Worldwide, scientists and policy makers are actively engaged in looking beyond islands of “Entrepreneurship Excellence” and disseminating benefits derived from creative minds to the local populace. Constant efforts are on to motivate citizens convert from job-seekers to job-creators with an aim to boost entrepreneurship in order to facilitate the values of education, R&D and growth percolate down to the rural, under-employed and financially weaker sections of society. The prime objective behind these ideas is to develop „Entrepreneurship with Indigenous Innovation‟ in the local context leading to the development of social entrepreneurship ideas with short and inexpensive product cycle. India and other tropical countries being swarmed with mosquito-borne diseases like Dengue, malaria and chikungunya struck over 1.13 million people in these areas last year. Most affected are the people of the poverty background who are unable to protect themselves by any means due to lack of money, resources and unavailability of products in rural areas. India itself bears a huge burden of mosquito-borne diseases, contributing 34 per cent of global dengue and 11 per cent of global malaria cases. The malaise is not limited to India. According to WHO figures, some 2.5 billion people, two fifths of the world's population, are now at risk from mosquito-borne diseases. WHO currently estimates that there may be 50 million dengue infections worldwide every year.Despite this, the world has made no headway in tackling the mosquito menace. With rapid industrialization and change in land use, the mosquito has adapted to the changing environment. Current Mosquito Repellent companies are adding synthetic chemicals in the anti-mosquito products and it is a scaled market of Rs.2,300 Crore (36 Million US Dollar).

Worldwide, scientists and policy makers are actively engaged in looking beyond islands of “Entrepreneurship Excellence” and disseminating benefits derived from creative minds to the local populace. Constant efforts are on to motivate citizens convert from job-seekers to job-creators with an aim to boost entrepreneurship in order to facilitate the values of education, R&D and growth percolate down to the rural, under-employed and financially weaker sections of society. The prime objective behind these ideas is to develop „Entrepreneurship with Indigenous Innovation‟ in the local context leading to the development of social entrepreneurship ideas with short and inexpensive product cycle. India and other tropical countries being swarmed with mosquito-borne diseases like Dengue, malaria and chikungunya struck over 1.13 million people in these areas last year. Most affected are the people of the poverty background who are unable to protect themselves by any means due to lack of money, resources and unavailability of products in rural areas. India itself bears a huge burden of mosquito-borne diseases, contributing 34 per cent of global dengue and 11 per cent of global malaria cases. The malaise is not limited to India. According to WHO figures, some 2.5 billion people, two fifths of the world's population, are now at risk from mosquito-borne diseases. WHO currently estimates that there may be 50 million dengue infections worldwide every year.Despite this, the world has made no headway in tackling the mosquito menace. With rapid industrialization and change in land use, the mosquito has adapted to the changing environment. Current Mosquito Repellent companies are adding synthetic chemicals in the anti-mosquito products and it is a scaled market of Rs.2,300 Crore (36 Million US Dollar).

Present work involves the utilization of local organic waste ingredients and making them acquainted in a soap providing the skin a protection layer against all species of mosquitoes. As the ingredients used in the study are locally available, the cost of the product is sustainable for the market and affordable. It is envisaged that it will play a major step towards the health of people living in villages and urban slums, as the general trend of these people is to take bath twice. Further, the product being organic has no side effects and it is for the benefit of people at large. The mosquito repellent soapsformed in the current investigations contain a number of essential oils formed from a variety of plants; Tea Tree, Neem, Mint, Eucalyptus, Lemon Grass, Lavender, Garlic and Cirtus Peel etc. addedin the soap mixture in a particular proportion. In addition, the soap formulated is coconut-oil based providing nourishment to the skin. Keeping in view that glycerinadheres to the skin and keeps the skin moist, a particular amount of glycerin-oil combination was added to the soap leading to the adsorption of essential oil on the skin in form of a layer. This would increase the durability of mosquito repellent property of the soap and would be effective to repel mosquitoes for long hours.

Present work involves the utilization of local organic waste ingredients and making them acquainted in a soap providing the skin a protection layer against all species of mosquitoes. As the ingredients used in the study are locally available, the cost of the product is sustainable for the market and affordable. It is envisaged that it will play a major step towards the health of people living in villages and urban slums, as the general trend of these people is to take bath twice. Further, the product being organic has no side effects and it is for the benefit of people at large. The mosquito repellent soapsformed in the current investigations contain a number of essential oils formed from a variety of plants; Tea Tree, Neem, Mint, Eucalyptus, Lemon Grass, Lavender, Garlic and Cirtus Peel etc. addedin the soap mixture in a particular proportion. In addition, the soap formulated is coconut-oil based providing nourishment to the skin. Keeping in view that glycerinadheres to the skin and keeps the skin moist, a particular amount of glycerin-oil combination was added to the soap leading to the adsorption of essential oil on the skin in form of a layer. This would increase the durability of mosquito repellent property of the soap and would be effective to repel mosquitoes for long hours.

Our investigations suggest a practical and effective way to protect humans from mosquito bites. The ideas implemented in the enterprise are known to be eco-friendly, safe and cost-effective especially in view of the growing awareness for environmental hazards. The production and formulation can take place in such a manner that any person in rural areas, with even a bit of skill, can also develop the product efficiently and effectively so that it reaches to the masses cost-effectively. The products formed will be retailed and sold through NGO‟s working towards health awareness and especially the ones who are in touch with the remote of the remotest villages in the country. It is envisaged that these eco-friendly products have a huge market and growth potential not only in India but throughout the world. Making of these soaps will not only help us to create wealth from the enormous amount of

Our investigations suggest a practical and effective way to protect humans from mosquito bites. The ideas implemented in the enterprise are known to be eco-friendly, safe and cost-effective especially in view of the growing awareness for environmental hazards. The production and formulation can take place in such a manner that any person in rural areas, with even a bit of skill, can also develop the product efficiently and effectively so that it reaches to the masses cost-effectively. The products formed will be retailed and sold through NGO‟s working towards health awareness and especially the ones who are in touch with the remote of the remotest villages in the country. It is envisaged that these eco-friendly products have a huge market and growth potential not only in India but throughout the world. Making of these soaps will not only help us to create wealth from the enormous amount of

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available resource of flora and fauna with us but also stimulate industrial and economic growth, generate employment and contribute towards national wealth. Subsequently, success, reliability and acceptability of the product can lead to expansion of business with addition of more sophisticated equipments giving the entrepreneur opportunity for business scale-up from the levels of rural industry to a micro-scale industry.

available resource of flora and fauna with us but also stimulate industrial and economic growth, generate employment and contribute towards national wealth. Subsequently, success, reliability and acceptability of the product can lead to expansion of business with addition of more sophisticated equipments giving the entrepreneur opportunity for business scale-up from the levels of rural industry to a micro-scale industry.

Key Words: Mosquito, Mosquito-Repellent, Essential Oils, Organic, Environment, Villages, WHO

Key Words: Mosquito, Mosquito-Repellent, Essential Oils, Organic, Environment, Villages, WHO

1. Introduction

1. Introduction

Mosquitoes are considered as the major disease vectors that spread several dreadful diseases worldwide specifically in tropical and sub-tropical countries. In India, dengue fever is gradually becoming the most important public health problem. Every year, the number of reported dengue cases is rising. The reports of World Health Organization also reveal that about 40% of the world’s population is at risk of dengue. Till today, chemical insecticides have been used on a large scale to control mosquitoes at both larval and adult stage. However, the adverse effects posed by these synthetic insecticides such as non-degradability, environmental pollution and toxicity to non-target population have increased during the last five decades. These adversities have insisted on the need of formulating alternate mosquito control strategies.

Mosquitoes are considered as the major disease vectors that spread several dreadful diseases worldwide specifically in tropical and sub-tropical countries. In India, dengue fever is gradually becoming the most important public health problem. Every year, the number of reported dengue cases is rising. The reports of World Health Organization also reveal that about 40% of the world’s population is at risk of dengue. Till today, chemical insecticides have been used on a large scale to control mosquitoes at both larval and adult stage. However, the adverse effects posed by these synthetic insecticides such as non-degradability, environmental pollution and toxicity to non-target population have increased during the last five decades. These adversities have insisted on the need of formulating alternate mosquito control strategies.

Plants have always attracted researchers as an environment-friendly, safe, and low-cost alternative to chemical insecticides. Several reports are available, which confirm the repellent efficacy of plant extracts or essential oils against different species of mosquitoes without posing toxicity hazards to humans. Further the phytochemicals have not only reported to act as repellents but also as feeding deterrents, toxins and growth regulators. These secondary metabolites can be grouped into five major chemical categories; nitrogen compounds (primarily alkaloids), terpenoids, phenolics, proteinase inhibitors, and juvenile inhibitors [1]. Essential oils, the natural volatile substances obtained from various plants, have been exploited commercially in pharmaceuticals, as flavoring agents in foods, for aroma in fragrant products, and as insecticides. The essential oils have been primarily investigated for their antibacterial, antifungal, and insecticidal activities. However, they have received great attention as probable bioactive insecticides displaying a wide-spectrum activity, low mammalian toxicity, and rapid bio-degradability. Insects can detect these odours when that volatile odour binds to odorant receptor (OR) proteins displayed on ciliated dendrites of specialized odour receptor neurons (ORNs) that are exposed to the external environment, often on the antennae and maxillary palps of the insect, and some ORNs, such as OR83b that is important in olfaction and blocked by the gold-standard mosquito repellents whether chemical or plant based [2]. Several researchers have worked towards knowing these strong responses of mosquito odour receptors to diverse class of volatiles including geranyl acetate and citronellal [3], 6-methyl-5- hepten-2-one and geranyl acetone [4]. It has been reported that interestingly, the same odour receptors that respond to DEET also respond to thujone eucalyptol and linalool in Culexquinquefasciatus[5].

Plants have always attracted researchers as an environment-friendly, safe, and low-cost alternative to chemical insecticides. Several reports are available, which confirm the repellent efficacy of plant extracts or essential oils against different species of mosquitoes without posing toxicity hazards to humans. Further the phytochemicals have not only reported to act as repellents but also as feeding deterrents, toxins and growth regulators. These secondary metabolites can be grouped into five major chemical categories; nitrogen compounds (primarily alkaloids), terpenoids, phenolics, proteinase inhibitors, and juvenile inhibitors [1]. Essential oils, the natural volatile substances obtained from various plants, have been exploited commercially in pharmaceuticals, as flavoring agents in foods, for aroma in fragrant products, and as insecticides. The essential oils have been primarily investigated for their antibacterial, antifungal, and insecticidal activities. However, they have received great attention as probable bioactive insecticides displaying a wide-spectrum activity, low mammalian toxicity, and rapid bio-degradability. Insects can detect these odours when that volatile odour binds to odorant receptor (OR) proteins displayed on ciliated dendrites of specialized odour receptor neurons (ORNs) that are exposed to the external environment, often on the antennae and maxillary palps of the insect, and some ORNs, such as OR83b that is important in olfaction and blocked by the gold-standard mosquito repellents whether chemical or plant based [2]. Several researchers have worked towards knowing these strong responses of mosquito odour receptors to diverse class of volatiles including geranyl acetate and citronellal [3], 6-methyl-5- hepten-2-one and geranyl acetone [4]. It has been reported that interestingly, the same odour receptors that respond to DEET also respond to thujone eucalyptol and linalool in Culexquinquefasciatus[5].

The repellent property of plants has been exploited by man since forever by most simply hanging bruised plants in houses, a practice that still exists throughout the developing countries [6]. Plants have also been used for centuries in the form of crude fumigants where plants were burnt to drive away nuisance mosquitoes and later as oil formulations applied to the skin or clothes which has been observed till now. Plant-based repellents are still extensively used in these traditional ways in the rural communities because for many of the poorest communities this is the only means of protection from mosquito bites [7]. However, the mosquito control still remains as the main problem in the rural areas, being highly affected by mosquitoes and limited action towards their control. It was found that the mosquito-repellent creams used by the peoplewere not highly effective and had to be applied again and again separately making it costly and time consuming. Neem oil is widely advertised as a natural alternative to DEET [8] and has been tested for repellency against range of arthropods of medical importance, with variable results. Several field studies from India have shown very high efficacy of Neem-based preparations [9,10], contrasting with findings of intermediate repellency by other researchers [11]. Neem oil is recommended as an effective repellent for use by travelers to disease endemic areas as it may confer some protection against nuisance

The repellent property of plants has been exploited by man since forever by most simply hanging bruised plants in houses, a practice that still exists throughout the developing countries [6]. Plants have also been used for centuries in the form of crude fumigants where plants were burnt to drive away nuisance mosquitoes and later as oil formulations applied to the skin or clothes which has been observed till now. Plant-based repellents are still extensively used in these traditional ways in the rural communities because for many of the poorest communities this is the only means of protection from mosquito bites [7]. However, the mosquito control still remains as the main problem in the rural areas, being highly affected by mosquitoes and limited action towards their control. It was found that the mosquito-repellent creams used by the peoplewere not highly effective and had to be applied again and again separately making it costly and time consuming. Neem oil is widely advertised as a natural alternative to DEET [8] and has been tested for repellency against range of arthropods of medical importance, with variable results. Several field studies from India have shown very high efficacy of Neem-based preparations [9,10], contrasting with findings of intermediate repellency by other researchers [11]. Neem oil is recommended as an effective repellent for use by travelers to disease endemic areas as it may confer some protection against nuisance

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biting mosquitoes and also it is an herbal product with generally no side effects. Keeping this in view, investigations were carried out to introduce the concept of an Herbal Mosquito repellent soap using neem and other essential oils. The soap formedwas not only skin nourishing being coconut oil-based but also had glycerin which helps the plantbased ingredients to stick to the skin and withstand the environment producing a high level efficiency.

biting mosquitoes and also it is an herbal product with generally no side effects. Keeping this in view, investigations were carried out to introduce the concept of an Herbal Mosquito repellent soap using neem and other essential oils. The soap formedwas not only skin nourishing being coconut oil-based but also had glycerin which helps the plantbased ingredients to stick to the skin and withstand the environment producing a high level efficiency.

2. Materials and Methods

2. Materials and Methods

2.1 Mosquito rearing

2.1 Mosquito rearing

The present investigations employ the dengue fever mosquito, Ae. aegypti maintained in an insectary at (28±1) °C, (80±5) % RH and 14:10 L/D photoperiod. Adults were supplied with freshly soaked deseeded raisins. Periodic blood meals were provided to female mosquitoes for egg maturation by keeping restrained albino rats in the cages. The eggs were collected in a bowl lined with Whatman filter paper and were allowed to hatch in trays filled with de-chlorinated water. Larvae were fed upon a mixture of yeast powder and grinded dog biscuits. The pupae formed were collected and transferred to the cloth cages for adult emergence.

The present investigations employ the dengue fever mosquito, Ae. aegypti maintained in an insectary at (28±1) °C, (80±5) % RH and 14:10 L/D photoperiod. Adults were supplied with freshly soaked deseeded raisins. Periodic blood meals were provided to female mosquitoes for egg maturation by keeping restrained albino rats in the cages. The eggs were collected in a bowl lined with Whatman filter paper and were allowed to hatch in trays filled with de-chlorinated water. Larvae were fed upon a mixture of yeast powder and grinded dog biscuits. The pupae formed were collected and transferred to the cloth cages for adult emergence.

2.2 Manufacturing of Soap

2.2 Manufacturing of Soap

The soaps were prepared with coconut-based soap flakes with low moisture content so that it leaves nourishing effect on the skin. Essential oilswere procured from Auroville, Pudduchery, India. Soap flakes were melted at high temperature and 2% de-ionized water was added to it. In order to assimilate the water vapour, 2% glycerin was added to the mixture. Several soaps were prepared with various essential oils added in selected concentrations and proportion during the melting process. Alternatively, oils were added after their saponification. Thereafter, the soap was left undisturbed for coolingand tested formosquito repellent efficacy.

The soaps were prepared with coconut-based soap flakes with low moisture content so that it leaves nourishing effect on the skin. Essential oilswere procured from Auroville, Pudduchery, India. Soap flakes were melted at high temperature and 2% de-ionized water was added to it. In order to assimilate the water vapour, 2% glycerin was added to the mixture. Several soaps were prepared with various essential oils added in selected concentrations and proportion during the melting process. Alternatively, oils were added after their saponification. Thereafter, the soap was left undisturbed for coolingand tested formosquito repellent efficacy.

2.3. Adult repellency bioassays

2.3. Adult repellency bioassays

The repellency of the formulated soap was evaluated against dengue vector using the human-bait technique. For investigations;30 laboratory-reared, blood-starved, adult female Ae. aegypti; that were between 3 and 10 days old were placed into separate laboratory cages [(45×45×40) cm]. Before each test, the forearm and hand of a human subject were washed with the unscented and neutral soap, thoroughly rinsed, and allowed to dry 10 min before test soap application. An area of (5 × 5) cm on each forearm of five human volunteers was marked out with a permanent marker.The area of the experimental arm was washed with mosquito repellent soap, while the control forearm wasnot treated with anything. During the test, the forearm was covered by a paper sleeve leaving the marked area open. The control and treated arms were introduced simultaneously into the cage. An attempt of the mosquito to insert its stylets was considered a bite. The numbers of bites were counted over 10 min, every 15 min, from 11:00 hours to 14:00 hours.

The repellency of the formulated soap was evaluated against dengue vector using the human-bait technique. For investigations;30 laboratory-reared, blood-starved, adult female Ae. aegypti; that were between 3 and 10 days old were placed into separate laboratory cages [(45×45×40) cm]. Before each test, the forearm and hand of a human subject were washed with the unscented and neutral soap, thoroughly rinsed, and allowed to dry 10 min before test soap application. An area of (5 × 5) cm on each forearm of five human volunteers was marked out with a permanent marker.The area of the experimental arm was washed with mosquito repellent soap, while the control forearm wasnot treated with anything. During the test, the forearm was covered by a paper sleeve leaving the marked area open. The control and treated arms were introduced simultaneously into the cage. An attempt of the mosquito to insert its stylets was considered a bite. The numbers of bites were counted over 10 min, every 15 min, from 11:00 hours to 14:00 hours.

Protection time was recorded as the time elapsed between repellent application and the observation period immediately preceding that in which a confirmed bite was obtained. If no bites were confirmed at 180 min, tests were discontinued, and protection time was recorded as 180 min. In case, if during the observation period no mosquito landed on the control arm or attempted to bite, the trial was discarded, and the test was repeated with a new batch of mosquitoes to ensure that lack of bites was due to repellence and not because mosquitoes are not predisposed to get a blood meal at the time. The experiments were conducted three times in separate cages, and in each replicate, different volunteer were used to nullify any effect of skin differences on repellency.

Protection time was recorded as the time elapsed between repellent application and the observation period immediately preceding that in which a confirmed bite was obtained. If no bites were confirmed at 180 min, tests were discontinued, and protection time was recorded as 180 min. In case, if during the observation period no mosquito landed on the control arm or attempted to bite, the trial was discarded, and the test was repeated with a new batch of mosquitoes to ensure that lack of bites was due to repellence and not because mosquitoes are not predisposed to get a blood meal at the time. The experiments were conducted three times in separate cages, and in each replicate, different volunteer were used to nullify any effect of skin differences on repellency.

The percentage protection was calculated by using the following formula:

The percentage protection was calculated by using the following formula:

%Protection = No. of bites received by control arm- No. of bites received by treated arm X 100

%Protection = No. of bites received by control arm- No. of bites received by treated arm X 100

No. of bites received by control arm

No. of bites received by control arm

3. Results

3. Results

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Our investigations revealed the formulation of a highly efficient mosquito repellent soap against adults Ae. aegypti with promising and notable repellent properties. The soap resulted in 100% protection against bites by female Ae. aegyptiin the first 120 min as compared to the 20 bites in control arm proving the efficacy of soap (Table 1). When the experiment was continued for next 30 min, only two more bite were recorded as compared to a total of seventeen bites scored on the control arm. It clearly reveals the reduced protection after 150 min, though the soap still proved to be highly effective. It was further found that thepercentprotectiontoadult Aedes furtherdecreasedtowith a total of four bitesrecordedafter180minof exposure to the soap.

Our investigations revealed the formulation of a highly efficient mosquito repellent soap against adults Ae. aegypti with promising and notable repellent properties. The soap resulted in 100% protection against bites by female Ae. aegyptiin the first 120 min as compared to the 20 bites in control arm proving the efficacy of soap (Table 1). When the experiment was continued for next 30 min, only two more bite were recorded as compared to a total of seventeen bites scored on the control arm. It clearly reveals the reduced protection after 150 min, though the soap still proved to be highly effective. It was further found that thepercentprotectiontoadult Aedes furtherdecreasedtowith a total of four bitesrecordedafter180minof exposure to the soap.

Thus, our investigations revealed that the essential oil-based soap formulated in the present studies resulted in 120min of almost complete protection time whenapplied on the arms of human volunteers though only for one time. After 120 min, the efficacy of soap decreased a little resulting in non-repellency to only 3.3% of mosquitoes. Consequently, the % protection decreased to 18% in half an hour. Gradually, the efficacy of the soap decreased a little leading to % protection of 82.4% and 77.7% after 150 and 180 min, respectively. The control treatment with normal soap did not provide any protection even during first minute. The number of bites in control treatment ranged from 3 to 18 in three hours of exposure period spread over 180 min [12]. It is significant to note that direct application of the soapdid not induce any dermal irritation during the experiment as well as afterward.

Thus, our investigations revealed that the essential oil-based soap formulated in the present studies resulted in 120min of almost complete protection time whenapplied on the arms of human volunteers though only for one time. After 120 min, the efficacy of soap decreased a little resulting in non-repellency to only 3.3% of mosquitoes. Consequently, the % protection decreased to 18% in half an hour. Gradually, the efficacy of the soap decreased a little leading to % protection of 82.4% and 77.7% after 150 and 180 min, respectively. The control treatment with normal soap did not provide any protection even during first minute. The number of bites in control treatment ranged from 3 to 18 in three hours of exposure period spread over 180 min [12]. It is significant to note that direct application of the soapdid not induce any dermal irritation during the experiment as well as afterward.

Table 1: Percent repellency and percent protection to the bites of Aedes aegypti after application of the mosquito repellent soapon the arms of human volunteers

Table 1: Percent repellency and percent protection to the bites of Aedes aegypti after application of the mosquito repellent soapon the arms of human volunteers

Time (Min)

% of Bites (Control Arm) 0

No. of Bites (Treated Arm) 0

% of Bites (Treated Arm) 0

% Protection 100.0

Time (Min)

0

No. of Bites (Control Arm) 0

0

No. of Bites (Control Arm) 0

% of Bites (Control Arm) 0

No. of Bites (Treated Arm) 0

% of Bites (Treated Arm) 0

% Protection 100.0

10

3

10

0

0

100.0

10

3

10

0

0

100.0

20

5

20

0

0

100.0

20

5

20

0

0

100.0

30

7

23.3

0

0

100.0

30

7

23.3

0

0

100.0

60

10

33.3

90

13

43.3

0

0

100.0

60

10

33.3

0

0

100.0

0

0

100.0

90

13

43.3

0

0

100.0

120

15

50

1

3.3

93.33

120

15

50

1

3.3

93.33

150

17

56.6

3

10

82.4

150

17

56.6

3

10

82.4

180

18

60

4

13.3

77.8

180

18

60

4

13.3

77.8

4. Discussion

4. Discussion

Mosquito-borne diseases are increasing each year in tropical and sub-tropical countries. Since many decades, chemical insecticides have been used to combat the mosquito menace. However, the continued and frequent use of these insecticides has caused adverse effects, including toxicity to non-target organisms and humans, environment pollution, and increased development of resistance in the mosquito population. Botanicals have now become favorite agents among researchers as suitable alternatives to the toxic chemical insecticides. A few reports are available regarding the repellent potency of essential oils, volatiles extracted from different plants, against Ae.aegypti.Studies have also shown that other plant secondary metabolites; steroids, alkaloids, terpenoids, saponins, phenolics etc.; play a major role in the mosquito control being associated with a wide range of bioefficacy.

Mosquito-borne diseases are increasing each year in tropical and sub-tropical countries. Since many decades, chemical insecticides have been used to combat the mosquito menace. However, the continued and frequent use of these insecticides has caused adverse effects, including toxicity to non-target organisms and humans, environment pollution, and increased development of resistance in the mosquito population. Botanicals have now become favorite agents among researchers as suitable alternatives to the toxic chemical insecticides. A few reports are available regarding the repellent potency of essential oils, volatiles extracted from different plants, against Ae.aegypti.Studies have also shown that other plant secondary metabolites; steroids, alkaloids, terpenoids, saponins, phenolics etc.; play a major role in the mosquito control being associated with a wide range of bioefficacy.

India and other tropical countries are being swarmed with mosquito borne diseases like Dengue, malaria and chikungunya struck over 2 million people in these areas last year. Most affected are the people of the poverty struck background who are unable to protect themselves by any means due to lack of money, resources and unavailability of products in rural areas. India itself bears a huge burden of mosquito-borne diseases, contributing 34 per cent of global dengue and 11 per cent of global malaria cases.

India and other tropical countries are being swarmed with mosquito borne diseases like Dengue, malaria and chikungunya struck over 2 million people in these areas last year. Most affected are the people of the poverty struck background who are unable to protect themselves by any means due to lack of money, resources and unavailability of products in rural areas. India itself bears a huge burden of mosquito-borne diseases, contributing 34 per cent of global dengue and 11 per cent of global malaria cases.

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Our investigations have re repellent resulted in the formulation of an effective oil-based mosquito repellent soap which provided almost complete protection from mosquito bites for 2 hours, the % protection decreasing a little thereafter. More formulations are being prepared with various other essential oils which can be added in different proportions to make more effective soap. Further, the soap is being made taking care of BIS (Bureau of Indian Standards) norms of soap in mind and is being tested under those norms. The remarkable property of the soap prepared is that though medicated the direct application of the soapdid not induce any dermal irritation during the experiment as well as afterward. While preparing soap, it was kept in mind that with this commercialized market, there are large varieties of soap flakes available in the market. Thus, the selection of not only essential oil to be added in the soap but also the kind of soap flake to be added becomes important. The present investigations involved coconut-based soap flakesin order to prevent the drying of skin. Moreover coconut oil would prevent several skin disorders such as acne, psoriasis, and eczema. The essential oils were purchased from Auroville, Pudduchery, India as these oils are pure and the viscosity is perfect for use.

Our investigations have re repellent resulted in the formulation of an effective oil-based mosquito repellent soap which provided almost complete protection from mosquito bites for 2 hours, the % protection decreasing a little thereafter. More formulations are being prepared with various other essential oils which can be added in different proportions to make more effective soap. Further, the soap is being made taking care of BIS (Bureau of Indian Standards) norms of soap in mind and is being tested under those norms. The remarkable property of the soap prepared is that though medicated the direct application of the soapdid not induce any dermal irritation during the experiment as well as afterward. While preparing soap, it was kept in mind that with this commercialized market, there are large varieties of soap flakes available in the market. Thus, the selection of not only essential oil to be added in the soap but also the kind of soap flake to be added becomes important. The present investigations involved coconut-based soap flakesin order to prevent the drying of skin. Moreover coconut oil would prevent several skin disorders such as acne, psoriasis, and eczema. The essential oils were purchased from Auroville, Pudduchery, India as these oils are pure and the viscosity is perfect for use.

The increasing incidence of mosquito-borne diseases worldwide makes it important that we have a sustainable market for the mosquito repellent soap. It is envisaged that collaboration with NGO’s or State Government would be vital to the business as it will be run as a social venture not aiming to earn profits. We are hoping to obtain funding for R&D from Department of Science and Technology, Government of India and to prepare a business model which can be taken to Ministry of Micro, Medium and Small Enterprises (MSME), Government of India to their business incubators which can help the business for inclusive growth and longtime sustainability. The chemical testing of the soap is in process according to the Bureau of Indian

The increasing incidence of mosquito-borne diseases worldwide makes it important that we have a sustainable market for the mosquito repellent soap. It is envisaged that collaboration with NGO’s or State Government would be vital to the business as it will be run as a social venture not aiming to earn profits. We are hoping to obtain funding for R&D from Department of Science and Technology, Government of India and to prepare a business model which can be taken to Ministry of Micro, Medium and Small Enterprises (MSME), Government of India to their business incubators which can help the business for inclusive growth and longtime sustainability. The chemical testing of the soap is in process according to the Bureau of Indian

Standards(BIS) norms and once certified with the help of NGO’s which are working in rural areas will be our support for making this soap available to those who are affected by mosquito borne diseases the most.

Standards(BIS) norms and once certified with the help of NGO’s which are working in rural areas will be our support for making this soap available to those who are affected by mosquito borne diseases the most.

5. Acknowledgements The investigations presented in this research paper were carried out in 2014-15at Acharya Narendra Dev College, University of Delhi. The authors extend thanks to Dr. Savithri Singh, Principal, Acharya Narendra Dev College for providing the laboratory facilities to conduct the experimental work. Author is greatly thankful to Mr.Sanjay Vohra for designing and formulation of the product.Authors are thankful to Dr.SaritaKumar (Zoology Department) for providing her guidance during the investigation. Authors also thank Dr.Seema Gupta (Chemistry Department)for guiding us forward and also providing the needed equipment’s. We extend our thanks to BIOMEDICAL SCIENCES DEPARTMENT of Acharya Narendra Dev College, for helping us with the testing of the sample.

6. References

5. Acknowledgements The investigations presented in this research paper were carried out in 2014-15at Acharya Narendra Dev College, University of Delhi. The authors extend thanks to Dr. Savithri Singh, Principal, Acharya Narendra Dev College for providing the laboratory facilities to conduct the experimental work. Author is greatly thankful to Mr.Sanjay Vohra for designing and formulation of the product.Authors are thankful to Dr.SaritaKumar (Zoology Department) for providing her guidance during the investigation. Authors also thank Dr.Seema Gupta (Chemistry Department)for guiding us forward and also providing the needed equipment’s. We extend our thanks to BIOMEDICAL SCIENCES DEPARTMENT of Acharya Narendra Dev College, for helping us with the testing of the sample.

6. References

Pichersky E, Gershenzon J: The formation and function of plant volatiles: perfumes for pollinator attraction and defense.Curr Opinion Plant Biology 2002, 5:237-243.

Pichersky E, Gershenzon J: The formation and function of plant volatiles: perfumes for pollinator attraction and defense.Curr Opinion Plant Biology 2002, 5:237-243.

Ditzen M, Pellegrino M, Vosshall LB: Insect odorant receptors are molecular targets of the insect repellent deet.Science 2008, 319:1838-1842

Ditzen M, Pellegrino M, Vosshall LB: Insect odorant receptors are molecular targets of the insect repellent deet.Science 2008, 319:1838-1842

Carey AF, Wang G, Su CY, Zwiebel LJ, Carlson JR: Odorant reception in the malaria mosquito Anopheles gambiae.Nature 2010, 464:66-71.

Carey AF, Wang G, Su CY, Zwiebel LJ, Carlson JR: Odorant reception in the malaria mosquito Anopheles gambiae.Nature 2010, 464:66-71.

Logan JG, Stanczyk NM, Hassanali A, Kemei J, Santana AEG, Ribeiro KAL, Pickett JA, Mordue (Luntz) JA: Armin-cage testing of natural human-derived mosquito repellents. Malar J 2010, 9:239.

Logan JG, Stanczyk NM, Hassanali A, Kemei J, Santana AEG, Ribeiro KAL, Pickett JA, Mordue (Luntz) JA: Armin-cage testing of natural human-derived mosquito repellents. Malar J 2010, 9:239.

Syed Z, Leal WS: Mosquitoes smell and avoid the insect repellent DEET.ProcNatlAcadSci U S A 2008, 10:1073.

Syed Z, Leal WS: Mosquitoes smell and avoid the insect repellent DEET.ProcNatlAcadSci U S A 2008, 10:1073.

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Moore SJ, Lenglet A, Hill N: Plant-Based Insect Repellents. In Insect Repellents: Principles Methods, and Use. Edited by Debboun M, Frances SP, Strickman D. Boca Raton Florida: CRC Press; 2006.

Moore SJ, Lenglet A, Hill N: Plant-Based Insect Repellents. In Insect Repellents: Principles Methods, and Use. Edited by Debboun M, Frances SP, Strickman D. Boca Raton Florida: CRC Press; 2006.

Ava T: Neem oil: a safe alternative to Deet BookNeem oil: a safe alternative to Deet City; 2009. Singh N, Mishra AK, Saxena A: Use of neem cream as a mosquito repellent in tribal areas of central India.Indian J Malariol 1996, 33:99-102.

Ava T: Neem oil: a safe alternative to Deet BookNeem oil: a safe alternative to Deet City; 2009. Singh N, Mishra AK, Saxena A: Use of neem cream as a mosquito repellent in tribal areas of central India.Indian J Malariol 1996, 33:99-102.

Sharma VP, Ansari MA, Razdan RK: Mosquito repellent action of neem (Azadirachtaindica) oil.J Am Mosq Control Assoc 1993, 9:359-360.

Sharma VP, Ansari MA, Razdan RK: Mosquito repellent action of neem (Azadirachtaindica) oil.J Am Mosq Control Assoc 1993, 9:359-360.

Caraballo AJ: Mosquito repellent action of Neemos.J Am Mosq Control Assoc 2000, 16:45-46.

Caraballo AJ: Mosquito repellent action of Neemos.J Am Mosq Control Assoc 2000, 16:45-46.

Barnard DR, Xue RD: Laboratory evaluation of mosquito repellents against Aedesalbopictus, Culexnigripalpus, and Ochierotatustriseriatus (Diptera: Culicidae).J Med Entomol 2004, 41:726-730

Barnard DR, Xue RD: Laboratory evaluation of mosquito repellents against Aedesalbopictus, Culexnigripalpus, and Ochierotatustriseriatus (Diptera: Culicidae).J Med Entomol 2004, 41:726-730

Moore SJ, Lenglet A, Hill N: Field evaluation of three plant-based insect repellents against malaria vectors in VacaDiez Province, the Bolivian Amazon.J Am Mosq Control Assoc 2002, 18:107-110.

Moore SJ, Lenglet A, Hill N: Field evaluation of three plant-based insect repellents against malaria vectors in VacaDiez Province, the Bolivian Amazon.J Am Mosq Control Assoc 2002, 18:107-110.

Sarita K, Naim W, Radhika W: Bioefficacy of Menthapiperitaessential oil against dengue fever mosquito, Aedes

Sarita K, Naim W, Radhika W: Bioefficacy of Menthapiperitaessential oil against dengue fever mosquito, Aedes

aegyptiL. Asian Pacific Journal of Tropical Biomedicine (2011)90-93

aegyptiL. Asian Pacific Journal of Tropical Biomedicine (2011)90-93

Author’s Profile

Author’s Profile

Mr. Akshat Chadha is a 2nd Year student of B.Tech. Electronics at Acharya Narendra Dev College, University of Delhi. A feather in the cap situation when he was selected by the Japan Embassy to attend the JENESYS INDIA (5th Batch) 10-Day Exchange Program at Tokyo and Kyoto. Chadha has also worked for environment awareness for working towards Carbon Footprint in the year 2009. Since First Year of College, he has been an active member of the Entrepreneurship Lab at Acharya Narendra Dev College, University of Delhi set up under INNOVATION AND ENTREPRENEURSHIP DEVELOPMENT CENTRE (IEDC). His team got selected to National Level representing the concept of Acharya Narendra Dev Youth (ANDY) at K-START UP Program organized by KOTRA, Government of Korea. Chadha has also been a part of promoting entrepreneurship among students of different colleges like Dronacharya College of Engineering, Gurgaon; Jagarnath International Management School, Kalkaji; Jaipuria Institute of Management, Noida. This year he has worked for procurement to Delhi University Women’s Association-SOUVINOIR SHOP. He has submitted his business plan on DESIGNER SOAPS for funding of Rs. 6-8 Lakhs to UDGAM-ACHARYA NARENDRA DEV COLLEGE- BUSINESS INCUBATOR set up by Ministry of Micro, Small and Medium Enterprises, Government of India under the guidance and mentorship of Mr. Sanjay Vohra.

Mr. Akshat Chadha is a 2nd Year student of B.Tech. Electronics at Acharya Narendra Dev College, University of Delhi. A feather in the cap situation when he was selected by the Japan Embassy to attend the JENESYS INDIA (5th Batch) 10-Day Exchange Program at Tokyo and Kyoto. Chadha has also worked for environment awareness for working towards Carbon Footprint in the year 2009. Since First Year of College, he has been an active member of the Entrepreneurship Lab at Acharya Narendra Dev College, University of Delhi set up under INNOVATION AND ENTREPRENEURSHIP DEVELOPMENT CENTRE (IEDC). His team got selected to National Level representing the concept of Acharya Narendra Dev Youth (ANDY) at K-START UP Program organized by KOTRA, Government of Korea. Chadha has also been a part of promoting entrepreneurship among students of different colleges like Dronacharya College of Engineering, Gurgaon; Jagarnath International Management School, Kalkaji; Jaipuria Institute of Management, Noida. This year he has worked for procurement to Delhi University Women’s Association-SOUVINOIR SHOP. He has submitted his business plan on DESIGNER SOAPS for funding of Rs. 6-8 Lakhs to UDGAM-ACHARYA NARENDRA DEV COLLEGE- BUSINESS INCUBATOR set up by Ministry of Micro, Small and Medium Enterprises, Government of India under the guidance and mentorship of Mr. Sanjay Vohra.



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The Nature and Adequacy of Corporate Social and Environmental Responsibility (CSR) Reporting Among Saudi Companies 1

Moneera Alwahaibi, 2 Nevine El-Tawy 1 Lecturer in Accounting Department -King Saud University-Saudi Arabia PhD student, Brunel Business School Brunel University (London) 2 Lecturer in Accounting-Brunel Business School -Brunel University (London) 2 1 [email protected], [email protected], [email protected]

The Nature and Adequacy of Corporate Social and Environmental Responsibility (CSR) Reporting Among Saudi Companies 1

Moneera Alwahaibi, 2 Nevine El-Tawy 1 Lecturer in Accounting Department -King Saud University-Saudi Arabia PhD student, Brunel Business School Brunel University (London) 2 Lecturer in Accounting-Brunel Business School -Brunel University (London) 2 1 [email protected], [email protected], [email protected]

Abstract

Abstract

This proposed research aims to determine the nature and adequacy of corporate social and environmental responsibility (CSR) reporting among Saudi companies listed in the Saudi Stock Exchange Market and simultaneously, to establish the driving forces of CSR reporting in Saudi companies. In order to achieve these aims, social and environmental accounting theories and content analysis will be used in line with the interpretations and descriptions needs. The empirical part of this research will study a sample of 159 companies registered in the Saudi Stock Exchange Market from 2003 to 2011, supported by interviews to collect the relevant data.

This proposed research aims to determine the nature and adequacy of corporate social and environmental responsibility (CSR) reporting among Saudi companies listed in the Saudi Stock Exchange Market and simultaneously, to establish the driving forces of CSR reporting in Saudi companies. In order to achieve these aims, social and environmental accounting theories and content analysis will be used in line with the interpretations and descriptions needs. The empirical part of this research will study a sample of 159 companies registered in the Saudi Stock Exchange Market from 2003 to 2011, supported by interviews to collect the relevant data.

Key words: Corporate social responsibility (CSR) reporting, Developing countries, Saudi Arabia

Key words: Corporate social responsibility (CSR) reporting, Developing countries, Saudi Arabia

1. Research Originality/value

1. Research Originality/value

Arguably, a higher quality of CSR reporting is more essential in less-developed countries than in the West due to its valuable stimulation and rich challenges to the sceptical patterns of western and non western scholars (Hanafi, 2006). In addition, it aids developing countries in holding a relevant position in the global market whilst attracting further investments. Hence, they have gradually moved away from central economics to open door policies as a result of globalization and multinational corporations. Currently, there is an evident lack of sound social and environmental accounting and disclosure practices and very little related literature on developing countries particularly in Saudi Arabia. This proposed research will aim to provide the first detailed and comprehensive attempt at studying CSR reporting practices in the Saudi context. In doing so, it aims to contribute valuably to CSR literature by offering a thorough understanding to researchers in the field as well as concerned accounting and regulation bodies.

Arguably, a higher quality of CSR reporting is more essential in less-developed countries than in the West due to its valuable stimulation and rich challenges to the sceptical patterns of western and non western scholars (Hanafi, 2006). In addition, it aids developing countries in holding a relevant position in the global market whilst attracting further investments. Hence, they have gradually moved away from central economics to open door policies as a result of globalization and multinational corporations. Currently, there is an evident lack of sound social and environmental accounting and disclosure practices and very little related literature on developing countries particularly in Saudi Arabia. This proposed research will aim to provide the first detailed and comprehensive attempt at studying CSR reporting practices in the Saudi context. In doing so, it aims to contribute valuably to CSR literature by offering a thorough understanding to researchers in the field as well as concerned accounting and regulation bodies.

Research questions

Research questions

This proposed research intends to answer the following main questions:

This proposed research intends to answer the following main questions:

-What are the patterns and levels of CSR reporting in the annual reports of Saudi Corporations?

-What are the patterns and levels of CSR reporting in the annual reports of Saudi Corporations?

-What are the driving forces of CSR reporting in Saudi Companies?

-What are the driving forces of CSR reporting in Saudi Companies?

-What are the main factors preventing the standardization of CSR?

-What are the main factors preventing the standardization of CSR?

Research methodology

Research methodology

This research will concentrate on Saudi Arabia as the context of this study, which will include three stages:

This research will concentrate on Saudi Arabia as the context of this study, which will include three stages:

The first stage is a survey as a way of data collection. The survey will be conducted on Saudi companies registered in the Saudi Stock Exchange Market. Therefore, the sample size will be limited to 159 companies. These companies represent different sectors in the study; namely: Banks and Financial Services, Petrochemical Industries, Cement, Retail, Energy and Utilities, Telecommunication and Information Technology, Insurance, Multi-Investment, Building and Construction, Real Estate Development, Transport, Media and Publishing, and Hotel and Tourism. This diversity in sectors is likely to give a wider variety of visions in addition to the

The first stage is a survey as a way of data collection. The survey will be conducted on Saudi companies registered in the Saudi Stock Exchange Market. Therefore, the sample size will be limited to 159 companies. These companies represent different sectors in the study; namely: Banks and Financial Services, Petrochemical Industries, Cement, Retail, Energy and Utilities, Telecommunication and Information Technology, Insurance, Multi-Investment, Building and Construction, Real Estate Development, Transport, Media and Publishing, and Hotel and Tourism. This diversity in sectors is likely to give a wider variety of visions in addition to the

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information being available. The survey will extend to cover a period of time from 2003 (the year when the Stock Exchange Market was established) to 2011. This period includes the beginning of the last economic crisis in 2008, a factor which helps in observing the changes and the differences in companies' reactions towards the surrounding economic changes. The aim of the analysis is to highlight which of these companies disclose their social reports, to trace these longitudinally, and to determine the characteristics of that disclosure. Content analysis will be used as it is the most suitable method in studying CSR reporting, providing valid inferences of the texts and for the widespread use of it by previous literature (Zubairu; et al 2011).

information being available. The survey will extend to cover a period of time from 2003 (the year when the Stock Exchange Market was established) to 2011. This period includes the beginning of the last economic crisis in 2008, a factor which helps in observing the changes and the differences in companies' reactions towards the surrounding economic changes. The aim of the analysis is to highlight which of these companies disclose their social reports, to trace these longitudinally, and to determine the characteristics of that disclosure. Content analysis will be used as it is the most suitable method in studying CSR reporting, providing valid inferences of the texts and for the widespread use of it by previous literature (Zubairu; et al 2011).

The second stage is to collate the appropriate data relating to the main problems of this research by conducting interviews with responsible personnel in organisations and academic spheres in order to reflect their perception from a close distance.

The second stage is to collate the appropriate data relating to the main problems of this research by conducting interviews with responsible personnel in organisations and academic spheres in order to reflect their perception from a close distance.

The third stage will involve the analysis of data and interviews, followed by the interpretation of results, in order to answer the research questions by linking the first stage findings with the results from the analysis.

The third stage will involve the analysis of data and interviews, followed by the interpretation of results, in order to answer the research questions by linking the first stage findings with the results from the analysis.

2. Literature review

2. Literature review

Nearly forty years has been devoted to corporate social and environmental responsibility (CSR) research. Nevertheless, it still poses a controversial issue since academics have been unable to offer a clear and generally accepted definition Souto (2009). For example, Carroll (1999) presented 25 definitions for CSR. During this period, there were many demands for a broader role of accounting and more balance of development of conventional financial accounting and social and environmental accounting. This role should be driven beyond ‗what‘ and ‗how‘ to account for ‗why‘ we account (Cooper et al., 2003), which in turn leads to a form of accounting which can resolve current environmental and social problems and lead to more social welfare (Bebbington et al .,1999 and Gray 1992). These demands have risen as a response to; accountability, the diverse and competing needs of stakeholders, the increasing pressure for more transparency and to many limitations in conventional accounting disclosure which focuses on profit maximization against social and environmental needs. Whilst it is widely documented that there is a steady increase in CSR reporting, as a result of a long process of social accounting , it is presumed to be a mainly voluntary activity, governed by very low regulations (Gray, 2000), inconsistent and likely to be sensitive to large industrial companies (Owen and O‘Dwayer 2008). Furthermore, there is still a big debate not only about the definition of CSR and its three domains (which were four) (Carroll, 1991 and Schwartz and Carroll2003) but also in housing CSR reporting either as an extent to the conventional accounting or as a new branch of knowledge. The terminologies used to anticipate CSR concept vary widely for example it is common in the academic publications to use the terms; social and environmental responsibility accounting or reporting or sustainability accounting interchangeably.

Nearly forty years has been devoted to corporate social and environmental responsibility (CSR) research. Nevertheless, it still poses a controversial issue since academics have been unable to offer a clear and generally accepted definition Souto (2009). For example, Carroll (1999) presented 25 definitions for CSR. During this period, there were many demands for a broader role of accounting and more balance of development of conventional financial accounting and social and environmental accounting. This role should be driven beyond ‗what‘ and ‗how‘ to account for ‗why‘ we account (Cooper et al., 2003), which in turn leads to a form of accounting which can resolve current environmental and social problems and lead to more social welfare (Bebbington et al .,1999 and Gray 1992). These demands have risen as a response to; accountability, the diverse and competing needs of stakeholders, the increasing pressure for more transparency and to many limitations in conventional accounting disclosure which focuses on profit maximization against social and environmental needs. Whilst it is widely documented that there is a steady increase in CSR reporting, as a result of a long process of social accounting , it is presumed to be a mainly voluntary activity, governed by very low regulations (Gray, 2000), inconsistent and likely to be sensitive to large industrial companies (Owen and O‘Dwayer 2008). Furthermore, there is still a big debate not only about the definition of CSR and its three domains (which were four) (Carroll, 1991 and Schwartz and Carroll2003) but also in housing CSR reporting either as an extent to the conventional accounting or as a new branch of knowledge. The terminologies used to anticipate CSR concept vary widely for example it is common in the academic publications to use the terms; social and environmental responsibility accounting or reporting or sustainability accounting interchangeably.

CSR has developed significantly throughout recent decades. This is reflected in the literature which has explored various research avenues, encompassing two main areas; CSR performance and CSR reporting. While the development of the field has been reviewed from different perspectives, studying the history of CSR and characterizing each period, or decade, with a specific trend are the main areas of focus. Carroll (2007 p.24-42), supports Murphy‘s (1978) classification of CSR progress, which classifies CSR research into four eras; the era of ‗philanthropy which was up to the 1950s, the era of ‗awareness‘ from 1953-1967, the era of ‗issue‘ from 1968- 1973 and the era of ‗responsiveness‘ from 1974 and beyond . Other related notions flourished in the 1980s and 1990s such as ‗stakeholder theory, ‗business ethics‘, ‗corporate citizenship‘ and ‗sustainability‘. These notions are very much linked to CSR or, as Carroll argues, CSR is the foundation of them. Although research on CSR and other related concepts in this century witnesses momentum of empirical as well as theoretical research, there still remain some unsolved problems in CSR practices in addition to the inconsistent and unsystematic practices around the world. Furthermore, the difficulties in measuring and disclosing the social and environmental actions and impacts (Kaya and Ayla, 2007 and Charles, 2013) what is needed are more space for all stakeholders, more regulations across countries and more engagements within education. (Eugenio et al., 2010 , Owen 2008 , Mathews 1997 and Parker 2014).

CSR has developed significantly throughout recent decades. This is reflected in the literature which has explored various research avenues, encompassing two main areas; CSR performance and CSR reporting. While the development of the field has been reviewed from different perspectives, studying the history of CSR and characterizing each period, or decade, with a specific trend are the main areas of focus. Carroll (2007 p.24-42), supports Murphy‘s (1978) classification of CSR progress, which classifies CSR research into four eras; the era of ‗philanthropy which was up to the 1950s, the era of ‗awareness‘ from 1953-1967, the era of ‗issue‘ from 1968- 1973 and the era of ‗responsiveness‘ from 1974 and beyond . Other related notions flourished in the 1980s and 1990s such as ‗stakeholder theory, ‗business ethics‘, ‗corporate citizenship‘ and ‗sustainability‘. These notions are very much linked to CSR or, as Carroll argues, CSR is the foundation of them. Although research on CSR and other related concepts in this century witnesses momentum of empirical as well as theoretical research, there still remain some unsolved problems in CSR practices in addition to the inconsistent and unsystematic practices around the world. Furthermore, the difficulties in measuring and disclosing the social and environmental actions and impacts (Kaya and Ayla, 2007 and Charles, 2013) what is needed are more space for all stakeholders, more regulations across countries and more engagements within education. (Eugenio et al., 2010 , Owen 2008 , Mathews 1997 and Parker 2014).

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CSR reporting and assurance, the other area of CSR research, appeared as a result of CSR performance within corporations (since the1970s or earlier). The aim of reporting was to respond to societies‘ expectations and to accommodate the growth of environmental awareness. Reporting an organization‘s employee relationship was the early efforts of the 1970s, which reflects the debate of labour position of that time, followed by the rise of environmental reporting in the late 1980s and the early 1990s. This was a response to the environmental catastrophes (Owen and O‘Dwayer 2008). Reporting is a voluntary practice in most countries which creates heterogeneity in reporting and in turn prevents comparisons and limits evaluating the quality of the content. CSR reporting has been addressed from different perspectives. The main perspectives are the disclosure in specific country, the disclosure of a particular category of information, the corporations‘ determinants linked with disclosure, measuring and evaluating costs and benefits, the impact on decision making (Mergani, et al, no date), reporting forms and finally, auditing and attestation.

CSR reporting and assurance, the other area of CSR research, appeared as a result of CSR performance within corporations (since the1970s or earlier). The aim of reporting was to respond to societies‘ expectations and to accommodate the growth of environmental awareness. Reporting an organization‘s employee relationship was the early efforts of the 1970s, which reflects the debate of labour position of that time, followed by the rise of environmental reporting in the late 1980s and the early 1990s. This was a response to the environmental catastrophes (Owen and O‘Dwayer 2008). Reporting is a voluntary practice in most countries which creates heterogeneity in reporting and in turn prevents comparisons and limits evaluating the quality of the content. CSR reporting has been addressed from different perspectives. The main perspectives are the disclosure in specific country, the disclosure of a particular category of information, the corporations‘ determinants linked with disclosure, measuring and evaluating costs and benefits, the impact on decision making (Mergani, et al, no date), reporting forms and finally, auditing and attestation.

Corporations‘ characteristics such as size, sector, ownership structure (Akrout and Ben Othman 2013) and even the political, cultural, legal, economic and technological factors have all been studied. The findings showed that they have a considerable influence on CSR reporting (Rizk, 2008). However, there is a lack of studies analysing the mutual influence of CSR disclosure on aspects such as stock market prices or comprehensive income. The current relationship between CSR reporting and financial performance is inconsistent and sometimes unclear (Souto, 2009). This directs the academics‘ attention towards the effect of the late economic crisis in 2008 on CSR reporting. . Moreover, the influence of economic prosperity or the economic crisis -both as determinants- on CSR disclosure must be considered. CSR reporting ranges from being included in the traditional financial reports to a ―stand-alone‘ report which appeared in 1990 and then the ―Triple bottom- line‖ report (Milne and Gray 2008). Although CSR reporting and assurance has been developed and transformed from being in the periphery of the literature to being in the centre of the research agenda (Parker 2014) ,it is still ‗under construction‘ and needs to be extended from merely observing the current practice to innovating new approaches.(Gray 2002). Furthermore, it needs to seek more inclusion into sectors other than private for instance public sectors by initiating ‗a broader discussion about with, whom, how and to what ends engagement can and should take place‘ (Owen 2008). In addition, there is a need for greater politicisation in CSR theorisation (Crawford Spence, J. Husillos, and Carmen Correa-Ruiz 2010). Even more, in response to the growing demand for more transparency, more harmony in practices and effective communication with stakeholders, regulation and standardization both became very crucial needs. As a response, relatively successful efforts have been conducted to establish guidelines or standards for corporate reporting. The Global Reporting Initiative (GRI) which launched in 1997 (Baluo, 2006) is the most significant initiative in reporting and AA1000s and ISO26000 in assurance.

Corporations‘ characteristics such as size, sector, ownership structure (Akrout and Ben Othman 2013) and even the political, cultural, legal, economic and technological factors have all been studied. The findings showed that they have a considerable influence on CSR reporting (Rizk, 2008). However, there is a lack of studies analysing the mutual influence of CSR disclosure on aspects such as stock market prices or comprehensive income. The current relationship between CSR reporting and financial performance is inconsistent and sometimes unclear (Souto, 2009). This directs the academics‘ attention towards the effect of the late economic crisis in 2008 on CSR reporting. . Moreover, the influence of economic prosperity or the economic crisis -both as determinants- on CSR disclosure must be considered. CSR reporting ranges from being included in the traditional financial reports to a ―stand-alone‘ report which appeared in 1990 and then the ―Triple bottom- line‖ report (Milne and Gray 2008). Although CSR reporting and assurance has been developed and transformed from being in the periphery of the literature to being in the centre of the research agenda (Parker 2014) ,it is still ‗under construction‘ and needs to be extended from merely observing the current practice to innovating new approaches.(Gray 2002). Furthermore, it needs to seek more inclusion into sectors other than private for instance public sectors by initiating ‗a broader discussion about with, whom, how and to what ends engagement can and should take place‘ (Owen 2008). In addition, there is a need for greater politicisation in CSR theorisation (Crawford Spence, J. Husillos, and Carmen Correa-Ruiz 2010). Even more, in response to the growing demand for more transparency, more harmony in practices and effective communication with stakeholders, regulation and standardization both became very crucial needs. As a response, relatively successful efforts have been conducted to establish guidelines or standards for corporate reporting. The Global Reporting Initiative (GRI) which launched in 1997 (Baluo, 2006) is the most significant initiative in reporting and AA1000s and ISO26000 in assurance.

Considering the existing information, the number of companies producing social and environmental reports has grown progressively, which shows how far CSR has developed and how it has evolved into an ordinary business practice. According to a KPMG survey of 2013, 51 per cent of 4100 surveyed companies now include information in their annual reports compared to 9 per cent in 2008. In spite of this significant progress, reporting is still a developed country phenomenon, as the majority of CSR studies have been undertaken in developed countries. Very few studies have focused on CSR in developing countries and the existing literature is relatively narrow. Most of the research conducted in developing countries was concentrated on the newly industrialized countries such as Hong Kong, China, Korea and Malaysia (Mejda, 2013) while few studies have focused on Arab countries. In general, these studies mainly have a social nature (Visser 2008), are relatively recent and have an exploratory aim. Furthermore, they have mostly restricted the research to one sector in one country in a specific year. There are a few other studies which present a broader scope of research. For example, Chapple and Moon (2005) who analysed Web site reporting of 50 companies in seven Asian countries: (India, Indonesia, Malaysia, the Philippines, South Korea, Singapore, and Thailand) in order to investigate how homogeneous CSR was among these countries. Moreover, to investigate whether; the variation is clarified by stages of development, globalization improves the adoption of CSR in Asia, and whether national business structures form the profile of multinational corporations' CSR. The findings showed, in line with Chapple and Moon (2005), that the practices varied among the countries but this variation is related to the national business systems rather than the development stage, which in turn reflects the profile of the country of operation rather than the original country. Therefore, multinational companies are more likely to accept CSR.

Considering the existing information, the number of companies producing social and environmental reports has grown progressively, which shows how far CSR has developed and how it has evolved into an ordinary business practice. According to a KPMG survey of 2013, 51 per cent of 4100 surveyed companies now include information in their annual reports compared to 9 per cent in 2008. In spite of this significant progress, reporting is still a developed country phenomenon, as the majority of CSR studies have been undertaken in developed countries. Very few studies have focused on CSR in developing countries and the existing literature is relatively narrow. Most of the research conducted in developing countries was concentrated on the newly industrialized countries such as Hong Kong, China, Korea and Malaysia (Mejda, 2013) while few studies have focused on Arab countries. In general, these studies mainly have a social nature (Visser 2008), are relatively recent and have an exploratory aim. Furthermore, they have mostly restricted the research to one sector in one country in a specific year. There are a few other studies which present a broader scope of research. For example, Chapple and Moon (2005) who analysed Web site reporting of 50 companies in seven Asian countries: (India, Indonesia, Malaysia, the Philippines, South Korea, Singapore, and Thailand) in order to investigate how homogeneous CSR was among these countries. Moreover, to investigate whether; the variation is clarified by stages of development, globalization improves the adoption of CSR in Asia, and whether national business structures form the profile of multinational corporations' CSR. The findings showed, in line with Chapple and Moon (2005), that the practices varied among the countries but this variation is related to the national business systems rather than the development stage, which in turn reflects the profile of the country of operation rather than the original country. Therefore, multinational companies are more likely to accept CSR.

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Another study by Hossain et al (2006) who developed a disclosure index to measure the extent of disclosure made by companies in corporate annual reports in Bangladesh. The sample of this study covered the annual reports of the whole population of 150 non-financial companies listed on the Dhaka Stock Exchange between 2002 and 2003. In line with many other studies of developing countries, it concluded that companies in Bangladesh appeared to have the lowest levels of social and environmental disclosure as only 8.33% of Bangladeshi companies disclosed social and environmental information in their corporate annual reports. However, the efforts made by them were on a voluntary basis and the information disclosed was mostly qualitative in nature. Other important research by Kamla (2007) aimed to explore the realities and potentialities of social accounting and reporting with regards to their volume, quality and nature in 68 company annual reports in nine Arab Middle East (AME) countries. These were; Saudi Arabia, Qatar, Bahrain, Oman, Kuwait, Syria, Jordan and Egypt. Four dimensions were used to address the research aim: ‗economic‘, ‗environmental‘, ‗general social‘ and ‗other cultural‘ characteristics of the reports. Interesting results were achieved in this study which showed that the level of disclosure for the four dimensions was 69% companies for economic dimension where the most popular items were related to the customer ,51%for the environmental dimension, 91% for general social mostly relating to employees and finally, 53% for other social characteristics dimension The study also concluded that only one company in the sample published a stand-alone social report (Bahraini Telecommunications Company) while other Arab companies in general house social disclosure in their annual reports and the majority of disclosed information was positive. Furthermore, there was an absence of third party independent verification statements (auditors). In the same context, in an attempt to shed light on the determinants of environmental disclosure in Arab Middle Eastern and North African (MENA) a study was conducted by Akrout and Ben Othman (2013) to investigate a sample of 153 companies operating in polluting sectors in 2010 using the web sites of the financial markets in the MENA region. This was in addition to the web site www.gulfbase.com, which specializes in financial and stock market information of companies in GCC countries. The factors investigated were company size, leverage and profitability, business culture, family ownership and state ownership. Consistent with many other studies, findings showed that the level of environmental disclosure is considerably affected by company size and performance as well as a negative and significant relationship with family ownership. Again, this study is limited to a specific sector and only analysed the web sites of the companies in one year. Some studies explicitly or implicitly- compared the situation in the developing countries with the developed countries. In general, the comparisons demonstrated that corporations in emerging markets mainly follow the western practices. One important piece of comparative research in this context is that of Hanafi (2006) who aimed to explore CSD practice in annual reports in Egypt as well as to compare it with the UK practice. The researcher investigated 82 top listed companies in Egypt over 4 years using Content Analysis the most common method in CSR research .In line with other studies in developing countries ,the level and quality of CSR disclosure in Egypt is not only low but lower than the UK. However, the patterns are similar in general in both countries regarding the dominating of employee-related information.

Another study by Hossain et al (2006) who developed a disclosure index to measure the extent of disclosure made by companies in corporate annual reports in Bangladesh. The sample of this study covered the annual reports of the whole population of 150 non-financial companies listed on the Dhaka Stock Exchange between 2002 and 2003. In line with many other studies of developing countries, it concluded that companies in Bangladesh appeared to have the lowest levels of social and environmental disclosure as only 8.33% of Bangladeshi companies disclosed social and environmental information in their corporate annual reports. However, the efforts made by them were on a voluntary basis and the information disclosed was mostly qualitative in nature. Other important research by Kamla (2007) aimed to explore the realities and potentialities of social accounting and reporting with regards to their volume, quality and nature in 68 company annual reports in nine Arab Middle East (AME) countries. These were; Saudi Arabia, Qatar, Bahrain, Oman, Kuwait, Syria, Jordan and Egypt. Four dimensions were used to address the research aim: ‗economic‘, ‗environmental‘, ‗general social‘ and ‗other cultural‘ characteristics of the reports. Interesting results were achieved in this study which showed that the level of disclosure for the four dimensions was 69% companies for economic dimension where the most popular items were related to the customer ,51%for the environmental dimension, 91% for general social mostly relating to employees and finally, 53% for other social characteristics dimension The study also concluded that only one company in the sample published a stand-alone social report (Bahraini Telecommunications Company) while other Arab companies in general house social disclosure in their annual reports and the majority of disclosed information was positive. Furthermore, there was an absence of third party independent verification statements (auditors). In the same context, in an attempt to shed light on the determinants of environmental disclosure in Arab Middle Eastern and North African (MENA) a study was conducted by Akrout and Ben Othman (2013) to investigate a sample of 153 companies operating in polluting sectors in 2010 using the web sites of the financial markets in the MENA region. This was in addition to the web site www.gulfbase.com, which specializes in financial and stock market information of companies in GCC countries. The factors investigated were company size, leverage and profitability, business culture, family ownership and state ownership. Consistent with many other studies, findings showed that the level of environmental disclosure is considerably affected by company size and performance as well as a negative and significant relationship with family ownership. Again, this study is limited to a specific sector and only analysed the web sites of the companies in one year. Some studies explicitly or implicitly- compared the situation in the developing countries with the developed countries. In general, the comparisons demonstrated that corporations in emerging markets mainly follow the western practices. One important piece of comparative research in this context is that of Hanafi (2006) who aimed to explore CSD practice in annual reports in Egypt as well as to compare it with the UK practice. The researcher investigated 82 top listed companies in Egypt over 4 years using Content Analysis the most common method in CSR research .In line with other studies in developing countries ,the level and quality of CSR disclosure in Egypt is not only low but lower than the UK. However, the patterns are similar in general in both countries regarding the dominating of employee-related information.

Environmental information came as a second priority followed by consumer information. The deference was found mainly in specific items as a result of the deference in the regulations aspects in the two countries. Interestingly, the compliance with legislation is found commonly partial or even absent. These results are consistent with a study by Eljayash, et al, (2013) regarding the national oil and gas corporations (NOGCs) and International oil and gas corporations (IOGCs) oil sector in Arab petroleum exporting countries. The study investigated the quantity and quality of CSR disclosure in 9 Arab region and 9 developed regions such as Japan, America and Europe using the content analyses for the annual reports of 2008, 2009 and 2010. Not surprisingly, the study showed a significant variation in the level of disclosure across the countries as well as a big deference between the national and the international practice. Another finding is that the Arab Emirates and Saudi Arabia have the highest level of disclosure and the most similar in quality to that of the developed countries. From a non-comparative perspective, there are some studies focusing on a specific country, for example Hossain and Hammami, (2009) which was conducted in Qatar and examined 44 voluntary items using statistical analysis and multiple regression analysis in order to define the determinants of voluntary disclosure in the annual reports of 25 listed firms of the Doha Securities Market. The findings showed that the average level of voluntary disclosure in the sample was 37% and the determinants: age, size, and assets-in-place are significantly related to the disclosure level while the profitability is insignificant. . This study is limited to a small number of companies (25 only) and also (2007) which questionings the generalization. n In the same year another study was

Environmental information came as a second priority followed by consumer information. The deference was found mainly in specific items as a result of the deference in the regulations aspects in the two countries. Interestingly, the compliance with legislation is found commonly partial or even absent. These results are consistent with a study by Eljayash, et al, (2013) regarding the national oil and gas corporations (NOGCs) and International oil and gas corporations (IOGCs) oil sector in Arab petroleum exporting countries. The study investigated the quantity and quality of CSR disclosure in 9 Arab region and 9 developed regions such as Japan, America and Europe using the content analyses for the annual reports of 2008, 2009 and 2010. Not surprisingly, the study showed a significant variation in the level of disclosure across the countries as well as a big deference between the national and the international practice. Another finding is that the Arab Emirates and Saudi Arabia have the highest level of disclosure and the most similar in quality to that of the developed countries. From a non-comparative perspective, there are some studies focusing on a specific country, for example Hossain and Hammami, (2009) which was conducted in Qatar and examined 44 voluntary items using statistical analysis and multiple regression analysis in order to define the determinants of voluntary disclosure in the annual reports of 25 listed firms of the Doha Securities Market. The findings showed that the average level of voluntary disclosure in the sample was 37% and the determinants: age, size, and assets-in-place are significantly related to the disclosure level while the profitability is insignificant. . This study is limited to a small number of companies (25 only) and also (2007) which questionings the generalization. n In the same year another study was

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conducted in Qatar by Al Naimi et al. (2012) exploring the status of CSR reporting .It confirmed the low level of disclosure in terms of social items which was mostly related to employees. However, the essential finding in the study was the non-appearance of environmental and energy information by the industry sector. No deference in Egypt as according to Rizk et al (2008) the quantity of information disclosed by companies is low and varies among the nine industry segments surveyed.

conducted in Qatar by Al Naimi et al. (2012) exploring the status of CSR reporting .It confirmed the low level of disclosure in terms of social items which was mostly related to employees. However, the essential finding in the study was the non-appearance of environmental and energy information by the industry sector. No deference in Egypt as according to Rizk et al (2008) the quantity of information disclosed by companies is low and varies among the nine industry segments surveyed.

However, CSR research in Saudi Arabia, the context of this proposed research, has proved that CSR practices are still in the early stages. Although a few studies have been conducted in Saudi Arabia, they enclose three main dimensions; CSR as a concept within Saudi companies, CSR disclosure or reporting and CSR initiatives. A study under the first dimension revealed that the attitude and perception of CSR in the Saudi private sector goes beyond charity and philanthropy and they have a broad perception towards CSR (Ali and Alali 2012). This result dissents the common idea of the Saudi managers that CSR is limited to charity and philanthropy. Another result showed that the Saudi corporations are highly aware of government‘s regulations and committed to the rules pertaining to CSR regardless of how strict they are. However, while there is a reasonable awareness of CSR among the managers of Saudi companies there is ‗a moderately positive attitude‘ toward CSR concept and the top management is less ‗enthusiastic‘. The top management sees CSR as a function of marketing to enhance the image of the company rather than as a strategic role within the firm‘s goals (Mandurah et al. 2012). The Islamic values and cultural traits seem to have an important influence on CSR practices in Saudi companies especially the charity concept and Zakat. Yet, most Saudi companies need to integrate CSR in their goals and missions and to adopt an approach that deals with the financial as well as the ethical, social and environmental goals. Largely, few Saudi companies understand the real meaning of CSR and perceive it as a cost rather than investment (Khan et al 2013) Although Islam is the primary explanation for CSR by most participants in the study, the religious terms are not used to express this responsibility. Furthermore, understanding CSR in Saudi Arabia is limited to human and social capital development. This is confirmed by the two political principal goals of the Saudi government: (Saudification of the workforce and diversification of the economy) (Gravim 2010). Based on the previous findings, it can be argued that CSR as a concept has a positive influence and its root emerged from Islamic values but it is not explicitly included in companies‘ goals or missions. The studies demonstrate that although there are a few examples of CSR adopting a mature strategy in Saudi Arabia (ARAMCO and SABIC), CSR is far from being developed and formalized.

However, CSR research in Saudi Arabia, the context of this proposed research, has proved that CSR practices are still in the early stages. Although a few studies have been conducted in Saudi Arabia, they enclose three main dimensions; CSR as a concept within Saudi companies, CSR disclosure or reporting and CSR initiatives. A study under the first dimension revealed that the attitude and perception of CSR in the Saudi private sector goes beyond charity and philanthropy and they have a broad perception towards CSR (Ali and Alali 2012). This result dissents the common idea of the Saudi managers that CSR is limited to charity and philanthropy. Another result showed that the Saudi corporations are highly aware of government‘s regulations and committed to the rules pertaining to CSR regardless of how strict they are. However, while there is a reasonable awareness of CSR among the managers of Saudi companies there is ‗a moderately positive attitude‘ toward CSR concept and the top management is less ‗enthusiastic‘. The top management sees CSR as a function of marketing to enhance the image of the company rather than as a strategic role within the firm‘s goals (Mandurah et al. 2012). The Islamic values and cultural traits seem to have an important influence on CSR practices in Saudi companies especially the charity concept and Zakat. Yet, most Saudi companies need to integrate CSR in their goals and missions and to adopt an approach that deals with the financial as well as the ethical, social and environmental goals. Largely, few Saudi companies understand the real meaning of CSR and perceive it as a cost rather than investment (Khan et al 2013) Although Islam is the primary explanation for CSR by most participants in the study, the religious terms are not used to express this responsibility. Furthermore, understanding CSR in Saudi Arabia is limited to human and social capital development. This is confirmed by the two political principal goals of the Saudi government: (Saudification of the workforce and diversification of the economy) (Gravim 2010). Based on the previous findings, it can be argued that CSR as a concept has a positive influence and its root emerged from Islamic values but it is not explicitly included in companies‘ goals or missions. The studies demonstrate that although there are a few examples of CSR adopting a mature strategy in Saudi Arabia (ARAMCO and SABIC), CSR is far from being developed and formalized.

Not surprisingly, there is a small amount of research in the area of CSR reporting in Saudi Arabia, most of which is pioneering in Saudi and paving the road for other promising studies, although, they are incomprehensive as they don‘t include all sectors and are not longitudinal to draw a detailed picture of the disclosure movement, they are still relatively informative. For instance, the study by Naser and Nuseibeh (2003) the focus was on the quality of financial reporting in non-financial Saudi companies listed on the Saudi Stock Exchange between 1992 and 1999. By dividing the information into mandatory, voluntary related to mandatory and voluntary unrelated to the mandatory, the analysis revealed that the correlation between mandatory disclosure and voluntary disclosure was not significant and the voluntary disclosure, related or unrelated to mandatory disclosure, was more than the minimum required by law. However, the level of voluntary disclosure is relatively low and the companies operating in the electricity sector showed the lowest level of disclosure while the highest was for the agriculture companies. Mirghani, et al. (no date) examined a sample of 23 Saudi companies with only environmentally sensitive operations(e.g. petrochemicals ) within the 1998-2001 period in order to investigate the extent of environmental disclosure in these companies. The results were interesting as there were no disclosure of any environmental issues of interest to stakeholders and only a few companies mentioned little about environment which is explained by the absence of past interest. Moreover, CSR was not in the agenda of Saudi bankers and SOCPA. Complementary to the previous study, (Zubairu, et al 2011) compared the social disclosures in the annual reports of 4 Islamic banks against an ideal level of social disclosures that Islamic banks ought to make, over the years 2008-2009 using the ―ideal ethical identity‖ checklist developed by (Haniffa and Hudaib (2007). The results revealed that Islamic banks in Saudi Arabia had a low level of CSR disclosure though they represent Shari‘a principles. However, they have had much more in common with their conventional banks‘ counterparts than .those based on Shari‘a. Equally importantly, a comparative study by Al-janadi, et al. (2012) between Saudi Arabia and the UAE public listed companies in regards of the level of voluntary disclosure practices and showed that the average level of disclosure for the

Not surprisingly, there is a small amount of research in the area of CSR reporting in Saudi Arabia, most of which is pioneering in Saudi and paving the road for other promising studies, although, they are incomprehensive as they don‘t include all sectors and are not longitudinal to draw a detailed picture of the disclosure movement, they are still relatively informative. For instance, the study by Naser and Nuseibeh (2003) the focus was on the quality of financial reporting in non-financial Saudi companies listed on the Saudi Stock Exchange between 1992 and 1999. By dividing the information into mandatory, voluntary related to mandatory and voluntary unrelated to the mandatory, the analysis revealed that the correlation between mandatory disclosure and voluntary disclosure was not significant and the voluntary disclosure, related or unrelated to mandatory disclosure, was more than the minimum required by law. However, the level of voluntary disclosure is relatively low and the companies operating in the electricity sector showed the lowest level of disclosure while the highest was for the agriculture companies. Mirghani, et al. (no date) examined a sample of 23 Saudi companies with only environmentally sensitive operations(e.g. petrochemicals ) within the 1998-2001 period in order to investigate the extent of environmental disclosure in these companies. The results were interesting as there were no disclosure of any environmental issues of interest to stakeholders and only a few companies mentioned little about environment which is explained by the absence of past interest. Moreover, CSR was not in the agenda of Saudi bankers and SOCPA. Complementary to the previous study, (Zubairu, et al 2011) compared the social disclosures in the annual reports of 4 Islamic banks against an ideal level of social disclosures that Islamic banks ought to make, over the years 2008-2009 using the ―ideal ethical identity‖ checklist developed by (Haniffa and Hudaib (2007). The results revealed that Islamic banks in Saudi Arabia had a low level of CSR disclosure though they represent Shari‘a principles. However, they have had much more in common with their conventional banks‘ counterparts than .those based on Shari‘a. Equally importantly, a comparative study by Al-janadi, et al. (2012) between Saudi Arabia and the UAE public listed companies in regards of the level of voluntary disclosure practices and showed that the average level of disclosure for the

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whole sample was low (36%) whilst UAE companies had significantly higher levels of voluntary disclosure than Saudi companies, with 42% and 32% respectively. To summarize, according to the brief presentation of the studies conducted in Saudi Arabia, there is a real dearth of CSR reporting research which needs to be overcome.

whole sample was low (36%) whilst UAE companies had significantly higher levels of voluntary disclosure than Saudi companies, with 42% and 32% respectively. To summarize, according to the brief presentation of the studies conducted in Saudi Arabia, there is a real dearth of CSR reporting research which needs to be overcome.

After shedding light on CSR concept dimension and CSR reporting dimension in Saudi Arabia, a third relevant dimension in literature is the initiatives. Firstly, Leadership Dialogue and Tamkeen. The former is considered the most remarkable work in CSR field in Saudi Arabia. More than twenty representatives from different formations were assembled in 2008 in order to discuss the CSR status in the Kingdom of Saudi Arabia. Various issues have been raised and discussed. In the conclusion, the participants provided three main ideas to support the growth of CSR in Saudi Arabia; spread and raise awareness of CSR initiatives and practices, improve and share CSR information sources and facilitate the coordination between interested institutions such as government, businesses, foundations and chambers of commerce. Whilst the recommendations were reliable and wide-range, the reporting practice was absent. The other initiative is ‗‘Tamkeen Sustainability Advisors‘‘. The company specialised in CSR consultations based in the Kingdom of Saudi Arabia, It had conducted a survey in 2009 based on a series of interviews and questionnaires. 45 Saudi companies were surveyed, randomly chosen from ‗‘the top corporate performers in the country‘‘. The aim of the study was to investigate and draw the trend or the evolution of CSR in the two years following the first study (Challenges and Way Forward) published In 2007 by Tamkeen themselves which was described as a pioneering initiative in the Arab world. . The study highlighted that there was a considerable progression in the CSR arena after the first study so the 2009 study tried to understand the scale and the effect of this evolution. The results showed that the CSR agenda in Saudi Arabia is largely driven by businesses rather than governmental factors, NGOs, consumers or communities the thing is opposite to what it is known in general. More results have been gained, such as the realisation that CSR development was in ‗breadth but not in depth CSR is not an investment, but a cost. The governmental role is still under expectancy and there is still a lack in the regulation and awareness. It has been shown that the initiative is very informative, although the sample used is relatively small.

After shedding light on CSR concept dimension and CSR reporting dimension in Saudi Arabia, a third relevant dimension in literature is the initiatives. Firstly, Leadership Dialogue and Tamkeen. The former is considered the most remarkable work in CSR field in Saudi Arabia. More than twenty representatives from different formations were assembled in 2008 in order to discuss the CSR status in the Kingdom of Saudi Arabia. Various issues have been raised and discussed. In the conclusion, the participants provided three main ideas to support the growth of CSR in Saudi Arabia; spread and raise awareness of CSR initiatives and practices, improve and share CSR information sources and facilitate the coordination between interested institutions such as government, businesses, foundations and chambers of commerce. Whilst the recommendations were reliable and wide-range, the reporting practice was absent. The other initiative is ‗‘Tamkeen Sustainability Advisors‘‘. The company specialised in CSR consultations based in the Kingdom of Saudi Arabia, It had conducted a survey in 2009 based on a series of interviews and questionnaires. 45 Saudi companies were surveyed, randomly chosen from ‗‘the top corporate performers in the country‘‘. The aim of the study was to investigate and draw the trend or the evolution of CSR in the two years following the first study (Challenges and Way Forward) published In 2007 by Tamkeen themselves which was described as a pioneering initiative in the Arab world. . The study highlighted that there was a considerable progression in the CSR arena after the first study so the 2009 study tried to understand the scale and the effect of this evolution. The results showed that the CSR agenda in Saudi Arabia is largely driven by businesses rather than governmental factors, NGOs, consumers or communities the thing is opposite to what it is known in general. More results have been gained, such as the realisation that CSR development was in ‗breadth but not in depth CSR is not an investment, but a cost. The governmental role is still under expectancy and there is still a lack in the regulation and awareness. It has been shown that the initiative is very informative, although the sample used is relatively small.

3. Conclusion In the presence of globalization and the expand of multinational companies as well as the several catastrophes witnessed in the world of business in addition to the spread of poverty, inequalities and social exploitation in developing countries, it is believed that CSR have a potential role in enhancing transparency and accountability and to promote societies welfare . This role is even more crucial in the context of developing countries. While according to KPMG (2013), CR reporting is now a mainstream business practice worldwide, developing countries are yet in a low level of formation and the research is extremely small in comparison to the research in developed countries. Further research on the nature and level of CSR practices in developing countries in addition to analytical studies between regions and between countries within regions as well as more sectoral practices and regulations across countries, are all have been an essential requirements by many researches and professionals. Thus, it is believed that by undertaking a comprehensive study on CSR reporting in Saudi Arabia a contribution could be made to that still semi-absent literature as Saudi Arabia a developing country, one of the top foreign direct investment destinations for the Arab world and in the process of implementing many ambitious plans for future. Also, to provide academics, regulators and reporting organizations with insights to aid in developing CSR strategies.

4. References

3. Conclusion In the presence of globalization and the expand of multinational companies as well as the several catastrophes witnessed in the world of business in addition to the spread of poverty, inequalities and social exploitation in developing countries, it is believed that CSR have a potential role in enhancing transparency and accountability and to promote societies welfare . This role is even more crucial in the context of developing countries. While according to KPMG (2013), CR reporting is now a mainstream business practice worldwide, developing countries are yet in a low level of formation and the research is extremely small in comparison to the research in developed countries. Further research on the nature and level of CSR practices in developing countries in addition to analytical studies between regions and between countries within regions as well as more sectoral practices and regulations across countries, are all have been an essential requirements by many researches and professionals. Thus, it is believed that by undertaking a comprehensive study on CSR reporting in Saudi Arabia a contribution could be made to that still semi-absent literature as Saudi Arabia a developing country, one of the top foreign direct investment destinations for the Arab world and in the process of implementing many ambitious plans for future. Also, to provide academics, regulators and reporting organizations with insights to aid in developing CSR strategies.

4. References

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Author’s Profile

Author’s Profile

Mrs Moneera Alwahaibi is currently a PhD researcher in the field of accounting at Brunel University, UK with previous experience as a Lecturer at King Saud University, Saudi Arabia and as an Assistant lecturer from 2001- 2010. She has a Bsc in Accounting and Msc in Accounting from King Saud University, College of Administration Sciences – (2001). During her work life, she participated in different administration and academic committees of the College of Administration Science (for example; the Committee of Cultural Activities, the Committee of Registration and Academic Guidance, Committee of Examinations and Observations, supervising the book team in the college, …) as well as participating in the doctoral symposiums in Brunel university and BAFA in The UK.

Mrs Moneera Alwahaibi is currently a PhD researcher in the field of accounting at Brunel University, UK with previous experience as a Lecturer at King Saud University, Saudi Arabia and as an Assistant lecturer from 2001- 2010. She has a Bsc in Accounting and Msc in Accounting from King Saud University, College of Administration Sciences – (2001). During her work life, she participated in different administration and academic committees of the College of Administration Science (for example; the Committee of Cultural Activities, the Committee of Registration and Academic Guidance, Committee of Examinations and Observations, supervising the book team in the college, …) as well as participating in the doctoral symposiums in Brunel university and BAFA in The UK.

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Green marketing, self-regulation and marketing trust: A discourse analysis of ISO 14001

Green marketing, self-regulation and marketing trust: A discourse analysis of ISO 14001

Anna Nyquist Doctoral student, Södertörn University, Department of social sciences, school of business administration [email protected]

Anna Nyquist Doctoral student, Södertörn University, Department of social sciences, school of business administration [email protected]

Abstract

Abstract

Aim: The aim with this study is to examine and understand how market trust, as part of a green marketing strategy, can be build through self-regulation in the form of the environmental certification ISO 14001.

Aim: The aim with this study is to examine and understand how market trust, as part of a green marketing strategy, can be build through self-regulation in the form of the environmental certification ISO 14001.

Methodology: This paper present different discourses that relates to ISO 14001 which are divided in genres and are critically analyzed through by using a conceptual toolbox based on the logic of critical discourse analysis.

Methodology: This paper present different discourses that relates to ISO 14001 which are divided in genres and are critically analyzed through by using a conceptual toolbox based on the logic of critical discourse analysis.

Findings:The findings of this study is that the validity in the studied discourses is low, which could harm the marketing trust in relation to ISO 14001, the self-regulation market and green marketing as a practice.

Findings:The findings of this study is that the validity in the studied discourses is low, which could harm the marketing trust in relation to ISO 14001, the self-regulation market and green marketing as a practice.

Originality: Enabling the categorizing of marketing communication as what Habermas conceptualized as discourse, is original. By studying varying discourses around ISO 14001, as is the case in a genre analysis, one can observe if market communication related to ISO 14001 is used consistently. Studying an environmental certificate in a genre analysis has not been done in a sufficient manner and it has not been analysed through the theoretical perspective of Theory of communicative action, although that is a theory that could possibly contribute to the field of marketing.

Originality: Enabling the categorizing of marketing communication as what Habermas conceptualized as discourse, is original. By studying varying discourses around ISO 14001, as is the case in a genre analysis, one can observe if market communication related to ISO 14001 is used consistently. Studying an environmental certificate in a genre analysis has not been done in a sufficient manner and it has not been analysed through the theoretical perspective of Theory of communicative action, although that is a theory that could possibly contribute to the field of marketing.

Keywords: Green marketing, self-regulation, ISO 14001, marketing trust, critical discourse analysis

Keywords: Green marketing, self-regulation, ISO 14001, marketing trust, critical discourse analysis

1. Introduction

1. Introduction

ISO 14001 is an international standard from the International organization for standardization (further on called ISO) and belongs to the ISO 14000 series 1. It was in Rio 1992 that the first official preparations for a new international environmental standard were made and four years later, in 1996, was ISO 14001 issued on the market (www.standardkalite.com). It has since then grown to be the worldwide most adopted self-regulative environmental standard for environmental management systems (further on called EMS) (e.g. Potoski et al., 2006).

ISO 14001 is an international standard from the International organization for standardization (further on called ISO) and belongs to the ISO 14000 series 1. It was in Rio 1992 that the first official preparations for a new international environmental standard were made and four years later, in 1996, was ISO 14001 issued on the market (www.standardkalite.com). It has since then grown to be the worldwide most adopted self-regulative environmental standard for environmental management systems (further on called EMS) (e.g. Potoski et al., 2006).

Companies following the ISO 14000 series are expected to comply with the law, have a policy for environmental practice as well as to have routines that enables the company to map, supervise and measure environmental effects. It is a standard that has been called ‗standards of the procedures‘ since companies that choose to comply with ISO 14001 are to systematize certain routines in order to improve environmental practices (Boström et al., 2011:31) and it is thereby not a standard that shows an actual environmental impact limitation. This can be compared to for an example the Blue Angel certification that stands forcertain environmental limitations connected to a particular product or service such as a limited amount of chemicals, electricity or water used in a product or when producing a product.

Companies following the ISO 14000 series are expected to comply with the law, have a policy for environmental practice as well as to have routines that enables the company to map, supervise and measure environmental effects. It is a standard that has been called ‗standards of the procedures‘ since companies that choose to comply with ISO 14001 are to systematize certain routines in order to improve environmental practices (Boström et al., 2011:31) and it is thereby not a standard that shows an actual environmental impact limitation. This can be compared to for an example the Blue Angel certification that stands forcertain environmental limitations connected to a particular product or service such as a limited amount of chemicals, electricity or water used in a product or when producing a product.

The debate around ISO 14001 has created two standpoints where one side argues that it increases the environmental benefits such as leading to a more comprehensive EMS and lower toxic emissions (Anton et al., 2003) as well as to competitive advantages for market actors adopting to the standard (Ammenberg et al., 2003). The other side argues that it mainly increases companies‘ image (Rondinelli et al, 2000), that the validity is low (Murray, 1999), that it does not improve companies‘ environmental impact (Andrews et al., 2003) or that the companies following the ISO 14001 are simply greenwashers (Steinzor, 1998). This debate shows an uncertainty regarding the actual environmental impact that comes with the standard of ISO14001.

The debate around ISO 14001 has created two standpoints where one side argues that it increases the environmental benefits such as leading to a more comprehensive EMS and lower toxic emissions (Anton et al., 2003) as well as to competitive advantages for market actors adopting to the standard (Ammenberg et al., 2003). The other side argues that it mainly increases companies‘ image (Rondinelli et al, 2000), that the validity is low (Murray, 1999), that it does not improve companies‘ environmental impact (Andrews et al., 2003) or that the companies following the ISO 14001 are simply greenwashers (Steinzor, 1998). This debate shows an uncertainty regarding the actual environmental impact that comes with the standard of ISO14001.

Self-regulations and market trust

Self-regulations and market trust

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The ISO 14000 series is a series of standards for environmental management systems (www.ne.se).

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The ISO 14000 series is a series of standards for environmental management systems (www.ne.se).

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In the regulations for environmental marketing one can see that trustworthiness holds a central role. In the International chamber of commerce‘s (further on called ICC) framework for responsible environmental marketing communication are clear guidelines found of how green claims are to be conducted and the basic notion is that they should not be misleading or false. The fundamental idea behind these marketing guidelines is that marketing communication should not undermine confidence in marketing.

In the regulations for environmental marketing one can see that trustworthiness holds a central role. In the International chamber of commerce‘s (further on called ICC) framework for responsible environmental marketing communication are clear guidelines found of how green claims are to be conducted and the basic notion is that they should not be misleading or false. The fundamental idea behind these marketing guidelines is that marketing communication should not undermine confidence in marketing.

―The popularity of green claims has been accompanied by criticism that businesses are overstating or misrepresenting the environmental benefits or attributes of a product or service, or the impact of a company’s practices on the environment. This is sometimes characterized as “greenwashing” by critics and has the potential to both undermine consumer confidence and penalize marketers who adhere to appropriate guidelines on truthful and non-deceptive advertising.‖ (www.icc.se, p. 2)

―The popularity of green claims has been accompanied by criticism that businesses are overstating or misrepresenting the environmental benefits or attributes of a product or service, or the impact of a company’s practices on the environment. This is sometimes characterized as “greenwashing” by critics and has the potential to both undermine consumer confidence and penalize marketers who adhere to appropriate guidelines on truthful and non-deceptive advertising.‖ (www.icc.se, p. 2)

That trust is a vital part of green marketing communication is not difficult to see since mistrust is associated to consumer passivity, learned helplessness and cynical reasoning (Zavestoski et al, 2006).Morgan and Hunt defined the trust found on the market as ―existing when one party has confidence in an exchange partner’s reliability and integrity‖ (Hunt et al, 1994). Also Moorman, Deshpaudé and Zaltman include confidence in their definition of trust on the market: ―a willingness to rely on an exchange partner in whom one has confidence‖ (Deshpaudé et al, 1992). Finally Rotters classical definition of trust is ―a generalized expectancy held by an individual that the word of another…can be relied on‖ (Rotter, 1967: 651). These definitions of trust related to market relations shows how determining trust is seen and that it plays a vital role when companies are to create or withhold market relations.

That trust is a vital part of green marketing communication is not difficult to see since mistrust is associated to consumer passivity, learned helplessness and cynical reasoning (Zavestoski et al, 2006).Morgan and Hunt defined the trust found on the market as ―existing when one party has confidence in an exchange partner’s reliability and integrity‖ (Hunt et al, 1994). Also Moorman, Deshpaudé and Zaltman include confidence in their definition of trust on the market: ―a willingness to rely on an exchange partner in whom one has confidence‖ (Deshpaudé et al, 1992). Finally Rotters classical definition of trust is ―a generalized expectancy held by an individual that the word of another…can be relied on‖ (Rotter, 1967: 651). These definitions of trust related to market relations shows how determining trust is seen and that it plays a vital role when companies are to create or withhold market relations.

When then tying market trust and green marketing together, one can observe how environmental certifications can be a way to build up trust. When using environmental certification accredited by a third-party companies ‗back claims up‘ and thereby needing to useless vague or ambiguous environmental claims. Hatanaka, Bain and Busch (2005) wrote how third-party certifications have emerged as considerable regulatory mechanisms on the market. These certifications are examples of a self-regulatory system, which also reflects a wider move from public to private control. Their conclusion was that this could benefit larger market actors as they will have the power to co-regulate, but also that this could contribute to the development of new alternative social and environmental systems that are more sustainable (Bain et al., 2005).

When then tying market trust and green marketing together, one can observe how environmental certifications can be a way to build up trust. When using environmental certification accredited by a third-party companies ‗back claims up‘ and thereby needing to useless vague or ambiguous environmental claims. Hatanaka, Bain and Busch (2005) wrote how third-party certifications have emerged as considerable regulatory mechanisms on the market. These certifications are examples of a self-regulatory system, which also reflects a wider move from public to private control. Their conclusion was that this could benefit larger market actors as they will have the power to co-regulate, but also that this could contribute to the development of new alternative social and environmental systems that are more sustainable (Bain et al., 2005).

A central question that Boström and Klintman (2011) asked when writing about environmental standards and labels was ―Should labels be trusted?‖. They argue that trust is needed when using labels since they are a form of substitute for our own first-hand knowledge and that information that is not correct regarding a label can lead to a blind mistrust among consumers (Boström et al, 2011: 6-8). Using environmental certifications such as following the standard of ISO 14001 that is accredited by a third independent part, is thereby one way to uphold customer trust.

A central question that Boström and Klintman (2011) asked when writing about environmental standards and labels was ―Should labels be trusted?‖. They argue that trust is needed when using labels since they are a form of substitute for our own first-hand knowledge and that information that is not correct regarding a label can lead to a blind mistrust among consumers (Boström et al, 2011: 6-8). Using environmental certifications such as following the standard of ISO 14001 that is accredited by a third independent part, is thereby one way to uphold customer trust.

The aim with this study is to examine and understand how market trust, as part of a green marketing strategy, can be build through self-regulation in the form of the environmental certification ISO 14001.

The aim with this study is to examine and understand how market trust, as part of a green marketing strategy, can be build through self-regulation in the form of the environmental certification ISO 14001.

2. Theoretical background

2. Theoretical background

Theory of communicative action

Theory of communicative action

Communication has been described, divided and labeled many times by marketing scientists and it has also been suggested that marketing ought to widen its perspective through interdisciplinary approaches such as the use of theories that are otherwise used within other social sciences (Brexendorf & Kernstock, 2009). Habermas‘s theory of communicative action (further on called TCA) is a theory that facilitates an understanding of our social world based on human rationality in communication and its grounding foundation is the exploration of what happens when we communicate.

Communication has been described, divided and labeled many times by marketing scientists and it has also been suggested that marketing ought to widen its perspective through interdisciplinary approaches such as the use of theories that are otherwise used within other social sciences (Brexendorf & Kernstock, 2009). Habermas‘s theory of communicative action (further on called TCA) is a theory that facilitates an understanding of our social world based on human rationality in communication and its grounding foundation is the exploration of what happens when we communicate.

In the TCAare two concepts contrasted: instrumental rationality versus communicative rationality. The distinction between these two is that communicative rationality is about reaching a common understanding while instrumental rationality is about reaching results. Communicative rationality uses claims as one way to reach mutual understanding. Communicative action uses claims as one way to reachmutual understanding, for

In the TCAare two concepts contrasted: instrumental rationality versus communicative rationality. The distinction between these two is that communicative rationality is about reaching a common understanding while instrumental rationality is about reaching results. Communicative rationality uses claims as one way to reach mutual understanding. Communicative action uses claims as one way to reachmutual understanding, for

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which validity plays an important role. Validity, which is increased by truth, conduct/rightness, and sincerity/authenticity, can be related to trust (Habermas, 1984).

which validity plays an important role. Validity, which is increased by truth, conduct/rightness, and sincerity/authenticity, can be related to trust (Habermas, 1984).

Habermas refers to two types of exchanges: economic exchanges and social exchanges. He brings forward the idea that economic exchanges (tied to the concept of instrumental rationality) are contractual in nature, while a social exchange (tied to communicative rationality) is instead based upon trust, mutual understanding and some kind of common purpose (Habermas, 1984:86).

Habermas refers to two types of exchanges: economic exchanges and social exchanges. He brings forward the idea that economic exchanges (tied to the concept of instrumental rationality) are contractual in nature, while a social exchange (tied to communicative rationality) is instead based upon trust, mutual understanding and some kind of common purpose (Habermas, 1984:86).

Theoretical framing

Theoretical framing

One can see marketing as a mixture of the two rationalities; it is of course about reaching results, but the results will probably fail to come if there is no functioning communication where trust, mutual understanding and a common purpose are important parameters. A receiver of a communicated market message will only act in accordance with the sender‘s desire if the message has a gaining purpose that the receiver understands and trust. When having this as theoretical standpoint one can examine how this is applicable on the discourses around ISO 14001.This study‘s research question is how green marketing and the self-regulation standard ISO 14001 is related to marketing trust.

One can see marketing as a mixture of the two rationalities; it is of course about reaching results, but the results will probably fail to come if there is no functioning communication where trust, mutual understanding and a common purpose are important parameters. A receiver of a communicated market message will only act in accordance with the sender‘s desire if the message has a gaining purpose that the receiver understands and trust. When having this as theoretical standpoint one can examine how this is applicable on the discourses around ISO 14001.This study‘s research question is how green marketing and the self-regulation standard ISO 14001 is related to marketing trust.

3. Methodology

3. Methodology

Discourse analysis through the use of a genre chain

Discourse analysis through the use of a genre chain

This study is a cross-sectional study of genres and their discourses involving texts about ISO 14001. Genres in this study refer to how different communicative platforms, used by different organizations. The purpose of that is to see how the discourses in these different genres circles around trustworthiness or simply assume its trustworthiness. A choice has been made to make a genre chain analysis in order to capture the relation between these different genres.

This study is a cross-sectional study of genres and their discourses involving texts about ISO 14001. Genres in this study refer to how different communicative platforms, used by different organizations. The purpose of that is to see how the discourses in these different genres circles around trustworthiness or simply assume its trustworthiness. A choice has been made to make a genre chain analysis in order to capture the relation between these different genres.

Fairclough explains a genre chain as when one follows some specific act through different genres (Fairclough, 2003:31). Wodak also writes about genre chains and refers to Fairclough when defining genre: ―A genre may be characterized, following Norman Fairclough, as the conventionalized, more or less schematically fixed use of language associated with a particular activity, as ‗a socially ratified [RW:that is socially accepted] way of using language in connection with a particular type of social activity‘ (Fairclough 1995:14)‖ (Wodak, 2008:12). Wodak points out that language can be conventionalized or socially accepted regarding a particular social activity (Wodak, 2008:12). The specific act or activity is here the communicated discourses around ISO 14001.

Fairclough explains a genre chain as when one follows some specific act through different genres (Fairclough, 2003:31). Wodak also writes about genre chains and refers to Fairclough when defining genre: ―A genre may be characterized, following Norman Fairclough, as the conventionalized, more or less schematically fixed use of language associated with a particular activity, as ‗a socially ratified [RW:that is socially accepted] way of using language in connection with a particular type of social activity‘ (Fairclough 1995:14)‖ (Wodak, 2008:12). Wodak points out that language can be conventionalized or socially accepted regarding a particular social activity (Wodak, 2008:12). The specific act or activity is here the communicated discourses around ISO 14001.

The data will be analyzed through critical discourse analysis (further on called CDA). Habermas, who has been pointed out as one of the ontological influencer of the CDA practice (Meyer et al., 2009:5-6), argues that each communicative participant needs to accept certain premises in order for mutual understanding to be reached. According to Habermas, discourse is ―a reflective form of communicative action‖ (Habermas, 1997:109) that occurs when argumentations are contested instead of bringing an instant mutual understanding (Habermas, 1997). Discourse will in this study be seen as a social practice that includes language and has a contesting form. The reason to why the texts about ISO 14001 will be seen as contesting is because of the need to communicate them. If there is a complete consensus, there would be no need to communicate or market an ISO 14001 standard certification.

The data will be analyzed through critical discourse analysis (further on called CDA). Habermas, who has been pointed out as one of the ontological influencer of the CDA practice (Meyer et al., 2009:5-6), argues that each communicative participant needs to accept certain premises in order for mutual understanding to be reached. According to Habermas, discourse is ―a reflective form of communicative action‖ (Habermas, 1997:109) that occurs when argumentations are contested instead of bringing an instant mutual understanding (Habermas, 1997). Discourse will in this study be seen as a social practice that includes language and has a contesting form. The reason to why the texts about ISO 14001 will be seen as contesting is because of the need to communicate them. If there is a complete consensus, there would be no need to communicate or market an ISO 14001 standard certification.

Research based on CDA is often eclectic using both grand theories and individual approaches. Ruth Wodak writes that CDA has no uniform theoretical framework, but that CDA research instead includes conceptual tools. CDA is influenced by several theoretical schools and that these schools give CDA its analytical tools, which form a theoretical synthesis for CDA research. Wodak writes about a, from Mouzelis borrowed, concept ‗conceptual pragmatics‘, when she describes how these conceptual tools are used in CDA research. She writes ―Such a pragmatic approach would not seek to provide a catalogue of context-less propositions and generalizations, but rather to relate questions to theory formation and conceptualization closely to the specific problems that are to be investigated. In this sense, the first question we have to address as researchers is not, “Do we need a grand theory?” but rather, “What conceptual tools are relevant for this or

Research based on CDA is often eclectic using both grand theories and individual approaches. Ruth Wodak writes that CDA has no uniform theoretical framework, but that CDA research instead includes conceptual tools. CDA is influenced by several theoretical schools and that these schools give CDA its analytical tools, which form a theoretical synthesis for CDA research. Wodak writes about a, from Mouzelis borrowed, concept ‗conceptual pragmatics‘, when she describes how these conceptual tools are used in CDA research. She writes ―Such a pragmatic approach would not seek to provide a catalogue of context-less propositions and generalizations, but rather to relate questions to theory formation and conceptualization closely to the specific problems that are to be investigated. In this sense, the first question we have to address as researchers is not, “Do we need a grand theory?” but rather, “What conceptual tools are relevant for this or

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that problem and for this and that context?‖ (Wodak, 2005:125). It is with this in mind that a theoretical toolbox is put together in this study in order to analyze these chosen discourses and thereby fulfill the aim of this study.

that problem and for this and that context?‖ (Wodak, 2005:125). It is with this in mind that a theoretical toolbox is put together in this study in order to analyze these chosen discourses and thereby fulfill the aim of this study.

The toolbox will consist of sixconceptional tools: Explicitness, Implicitness, Intertextuality, Intentionality, Persuasive text as well as Instructive text. Fairclough writes about textual analysis and that it is important what is explicit and implicit in a text (Fairclough, 2003: 11). This study will focus on what is made explicit versus implicit in the chosen discourses about ISO 14001. Wodak writes about the two concepts intertextuality and intentionality. Intertextuality refers to that all texts, in order to achieve their meaning, relates synchronically as well as diachronically to other texts. She also writes about intentionality that is a text producer‘s intentions (Wodak, 2008:9).The concepts of persuasive text and instructive text are tools to describe the kind of language used in each genre.

The toolbox will consist of sixconceptional tools: Explicitness, Implicitness, Intertextuality, Intentionality, Persuasive text as well as Instructive text. Fairclough writes about textual analysis and that it is important what is explicit and implicit in a text (Fairclough, 2003: 11). This study will focus on what is made explicit versus implicit in the chosen discourses about ISO 14001. Wodak writes about the two concepts intertextuality and intentionality. Intertextuality refers to that all texts, in order to achieve their meaning, relates synchronically as well as diachronically to other texts. She also writes about intentionality that is a text producer‘s intentions (Wodak, 2008:9).The concepts of persuasive text and instructive text are tools to describe the kind of language used in each genre.

Choice of genres

Choice of genres

The texts chosen for this study have been selected partly because they constitutes discourses involving ISO 14001 and partly because they exemplifies a logical chain of the discourses from the description of ISO 14001 in a national encyclopedia to ISO‘s international website, to the Swedish SIS: s annual report to corporate websites in one key industry as well as news articles from the Swedish media search base ―Artikelsök‖ between 2013-01-01 until 2013-03-31 with the search word ―ISO 14001‖. The chosen industry is the industrial and institutional laundry service with the SNI code 96011. The reasons why this particular industry is chosen are: (1) this particular industry‘s large and complicated impact on the ecology (e.g. Swedish Environmental Protection Agency, 1995) (2) its natural connection to the entire industrial market and their multi complex service where multiple value chains are needed.

The texts chosen for this study have been selected partly because they constitutes discourses involving ISO 14001 and partly because they exemplifies a logical chain of the discourses from the description of ISO 14001 in a national encyclopedia to ISO‘s international website, to the Swedish SIS: s annual report to corporate websites in one key industry as well as news articles from the Swedish media search base ―Artikelsök‖ between 2013-01-01 until 2013-03-31 with the search word ―ISO 14001‖. The chosen industry is the industrial and institutional laundry service with the SNI code 96011. The reasons why this particular industry is chosen are: (1) this particular industry‘s large and complicated impact on the ecology (e.g. Swedish Environmental Protection Agency, 1995) (2) its natural connection to the entire industrial market and their multi complex service where multiple value chains are needed.

4. Empirical findings – genres and analysis

4. Empirical findings – genres and analysis

ISO 14001 in the Swedish National encyclopedia

ISO 14001 in the Swedish National encyclopedia

At the Swedish national encyclopedia‘s website, one can read that their assignment is to spread knowledge (www.ne.se). When using the search word ―ISO 14001‖, 146 hits appeared in the Swedish national encyclopedia online, Ne.se, and 38 out of these were related to ISO 14001 as a topic. The text about ISO 14001 was as follows:

At the Swedish national encyclopedia‘s website, one can read that their assignment is to spread knowledge (www.ne.se). When using the search word ―ISO 14001‖, 146 hits appeared in the Swedish national encyclopedia online, Ne.se, and 38 out of these were related to ISO 14001 as a topic. The text about ISO 14001 was as follows:

―ISO 14000, series of international standards (ISO 14001 and following) for environmental management. See environmental management system‖ (www.ne.se).

―ISO 14000, series of international standards (ISO 14001 and following) for environmental management. See environmental management system‖ (www.ne.se).

Ne.se puts eight articles as related to the article about ISO 14001: ISO, kvalitetsledningssystem (quality management system), miljöledningssystem (environmental management system), SIS, IEC, hänvisning till standard (reference to standard), ISO 9001, standardisering (standardization)(www.ne.se). This encyclopedia article uses an instructive language and relates ISO 14001 to the 14000 series, management system, quality and standard. There are no further explanations of what ISO 14001 is or could be and it is also not mentioned that this is a self-regulation standard which is sold to the users.

Ne.se puts eight articles as related to the article about ISO 14001: ISO, kvalitetsledningssystem (quality management system), miljöledningssystem (environmental management system), SIS, IEC, hänvisning till standard (reference to standard), ISO 9001, standardisering (standardization)(www.ne.se). This encyclopedia article uses an instructive language and relates ISO 14001 to the 14000 series, management system, quality and standard. There are no further explanations of what ISO 14001 is or could be and it is also not mentioned that this is a self-regulation standard which is sold to the users.

ISO about ISO 14001

ISO about ISO 14001

ISO is informing about ISO 14001 on their website and under the subheading ―Standards‖ and thereafter ―Management System Standards‖. The text/information includedsix divided parts.

ISO is informing about ISO 14001 on their website and under the subheading ―Standards‖ and thereafter ―Management System Standards‖. The text/information includedsix divided parts.

Part 1

Part 1

The first part is instructive and is hold rather formal.

The first part is instructive and is hold rather formal.

“ISO 14000 - Environmental management

“ISO 14000 - Environmental management

The ISO 14000 family addresses various aspects of environmental management. It provides practical tools for companies and organizations looking to identify and control their environmental impact and constantly improve their environmental performance. ISO 14001:2004 and ISO 14004:2004 focus on environmental management systems. The other

The ISO 14000 family addresses various aspects of environmental management. It provides practical tools for companies and organizations looking to identify and control their environmental impact and constantly improve their environmental performance. ISO 14001:2004 and ISO 14004:2004 focus on environmental management systems. The other

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standards in the family focus on specific environmental aspects such as life cycle analysis, communication and auditing.” (www.iso.org)

standards in the family focus on specific environmental aspects such as life cycle analysis, communication and auditing.” (www.iso.org)

Noticeable is that the word ―family‖ has substituted the word ―series‖. The text makes ISO 14001 active, like an individual that can act on its own. The text also makes the companies that want to identify, control and improve their environmental impact and performance.

Noticeable is that the word ―family‖ has substituted the word ―series‖. The text makes ISO 14001 active, like an individual that can act on its own. The text also makes the companies that want to identify, control and improve their environmental impact and performance.

Part 2

Part 2

The secondpart of the text/information is a video with the title ―ISO and the environment‖ that lasts for 47 seconds and includes 22 pictures of nature, cities and children and other people, various kinds of ISO standards, the logotype for ISO and background music as well as this speech:

The secondpart of the text/information is a video with the title ―ISO and the environment‖ that lasts for 47 seconds and includes 22 pictures of nature, cities and children and other people, various kinds of ISO standards, the logotype for ISO and background music as well as this speech:

―No matter what country we live in, you and me and millions of people like us are passionate about protecting the environment and fighting climate change, but we know that environmental problems like pollution and climate change do not stop at borders, so tools for tackling them need to be effective on a global scale. ISO’s environmental standards are tools for translating passion into effective action, globally. When it comes to the environment, confidence has a nickname that’s recognized worldwide; Now you know it to: It’s ISO.” (www.iso.org)

―No matter what country we live in, you and me and millions of people like us are passionate about protecting the environment and fighting climate change, but we know that environmental problems like pollution and climate change do not stop at borders, so tools for tackling them need to be effective on a global scale. ISO’s environmental standards are tools for translating passion into effective action, globally. When it comes to the environment, confidence has a nickname that’s recognized worldwide; Now you know it to: It’s ISO.” (www.iso.org)

This video is persuasive with a non-formal language: you, me and other informal words such as passionate (emotional), nickname (why is it a nickname?). The pictures and music had no clear relation to ISO 14001 other than emotional symbols. ISO is here named a ―tool‖ and is not made as active as in previous part; the receiver is however made active together with the sender.

This video is persuasive with a non-formal language: you, me and other informal words such as passionate (emotional), nickname (why is it a nickname?). The pictures and music had no clear relation to ISO 14001 other than emotional symbols. ISO is here named a ―tool‖ and is not made as active as in previous part; the receiver is however made active together with the sender.

Part 3

Part 3 “ISO 14001:2004

“ISO 14001:2004

ISO 14001:2004 sets out the criteria for an environmental management system and can be certified to. It does not state requirements for environmental performance, but maps out a framework that a company or organization can follow to set up an effective environmental management system. It can be used by any organization regardless of its activity or sector. Using ISO 14001:2004 can provide assurance to company management and employees as well as external stakeholders that environmental impact is being measured and improved.” (www.iso.org)

ISO 14001:2004 sets out the criteria for an environmental management system and can be certified to. It does not state requirements for environmental performance, but maps out a framework that a company or organization can follow to set up an effective environmental management system. It can be used by any organization regardless of its activity or sector. Using ISO 14001:2004 can provide assurance to company management and employees as well as external stakeholders that environmental impact is being measured and improved.” (www.iso.org)

Part three is an instructive text where it is made clear that ISO 14001 does not have requirements for environmental performance, but is a system of how to measure and improve environmental performance. It says that it can provide assurance to company management, employees and external stakeholders that environmental impact is measured and improved.

Part three is an instructive text where it is made clear that ISO 14001 does not have requirements for environmental performance, but is a system of how to measure and improve environmental performance. It says that it can provide assurance to company management, employees and external stakeholders that environmental impact is measured and improved.

Part 4

Part 4 “The benefits of using ISO 14001:2004 can include:

“The benefits of using ISO 14001:2004 can include:



Reduced cost of waste management



Reduced cost of waste management



Savings in consumption of energy and materials



Savings in consumption of energy and materials



Lower distribution costs



Lower distribution costs



Improved corporate image among regulators, customers and the public”(www.iso.org)



Improved corporate image among regulators, customers and the public”(www.iso.org)

This part is instructive and ¼ of the arguments involves ISO 14001‗s improvement of corporate image and ¾ involves cost benefits.

This part is instructive and ¼ of the arguments involves ISO 14001‗s improvement of corporate image and ¾ involves cost benefits.

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Part 5

Part 5

The next textual part shows the intent of having ISO 14001 as a product possible to buy. The text is more persuasive and less formal:

The next textual part shows the intent of having ISO 14001 as a product possible to buy. The text is more persuasive and less formal:

“Preview ISO 14001:2004

“Preview ISO 14001:2004

You can preview the freely available sections of ISO 14001:2004 on our Online Browsing Platform. To purchase the standard please visit the ISO Store.”(www.iso.org)

You can preview the freely available sections of ISO 14001:2004 on our Online Browsing Platform. To purchase the standard please visit the ISO Store.”(www.iso.org)

ISO does not inform about the self-regulation status of ISO 14001 and that it is controlled by its members which mainly consists of companies paying to use implement and be associated to the standard. However, it does describe the ISO 14001 standard as a tool for an improved environmental management system that can be good for the environment, save costs, enhance a corporate image as well as being paid for.

ISO does not inform about the self-regulation status of ISO 14001 and that it is controlled by its members which mainly consists of companies paying to use implement and be associated to the standard. However, it does describe the ISO 14001 standard as a tool for an improved environmental management system that can be good for the environment, save costs, enhance a corporate image as well as being paid for.

SIS (Swedish Standard Institute)

SIS (Swedish Standard Institute)

SIS is a non-profit organization based on membership and one of three Swedish member bodies of ISO. It is specialized on standards. They write on their website that they offer a neutral meeting point regarding standards and that their customers are a cross section of Sweden (www.sis.se, b).

SIS is a non-profit organization based on membership and one of three Swedish member bodies of ISO. It is specialized on standards. They write on their website that they offer a neutral meeting point regarding standards and that their customers are a cross section of Sweden (www.sis.se, b).

”SIS continues its work with customer adaptation and it strives to live up to the customers‘ needs and expectations. This will lead to a continued good demand for standards and services within the current area‖. (SIS annual report, 2012)

”SIS continues its work with customer adaptation and it strives to live up to the customers‘ needs and expectations. This will lead to a continued good demand for standards and services within the current area‖. (SIS annual report, 2012)

The annual report from SIS is instructive. It says that SIS will continue with its customer adaptation work as well as to live up to their expectations. SIS: s customers are the organizations that buy certifications. Seven out of nine members in the board of SIS are representatives from the industrial life (www.sis.com, a).

The annual report from SIS is instructive. It says that SIS will continue with its customer adaptation work as well as to live up to their expectations. SIS: s customers are the organizations that buy certifications. Seven out of nine members in the board of SIS are representatives from the industrial life (www.sis.com, a).

5. Companies about ISO 14001(Corporate websites)

5. Companies about ISO 14001(Corporate websites)

Berendsen

Berendsen

Berendsen informs about their ISO 14001 certification on their website under the menu choice ‖Miljö‖ (environment) and thereafter under ‖Kvalitet‖ (quality) and ‖Verksamhetssystem‖ (management system). There are two pictures on the page for the certification information: one with birds flying with a blue sky in the background and one with water lilies in water. There is also one square on the side where symbols for Swedac Ackreditering, DNV, ISO 14001 and ISO 9001 is visible. The text had the overarching heading ―Några viktiga bevis‖ (Some important evidence). The first subheading was ―Miljö‖ (environment) and that contained an instructive text with the information that Berendsen is certified according to ISO 14001 and that they have worked with environment and quality questions for a long time. The last sentence in this textual part is

Berendsen informs about their ISO 14001 certification on their website under the menu choice ‖Miljö‖ (environment) and thereafter under ‖Kvalitet‖ (quality) and ‖Verksamhetssystem‖ (management system). There are two pictures on the page for the certification information: one with birds flying with a blue sky in the background and one with water lilies in water. There is also one square on the side where symbols for Swedac Ackreditering, DNV, ISO 14001 and ISO 9001 is visible. The text had the overarching heading ―Några viktiga bevis‖ (Some important evidence). The first subheading was ―Miljö‖ (environment) and that contained an instructive text with the information that Berendsen is certified according to ISO 14001 and that they have worked with environment and quality questions for a long time. The last sentence in this textual part is

“Our entire organization aim towards constant improvements and a sustainable development.‖(www.berendsen.se)

“Our entire organization aim towards constant improvements and a sustainable development.‖(www.berendsen.se)

The page and text related to ISO 14001 at Berendsen‘s website is persuasive with a storytelling framing often found in advertisements with passionate expressions such as ―strive‖, the use of pictures that are not directly related to the text and also with a title that has a very loose relation to the content of the text. ISO 14001 is connected to the word quality on this website and although ISO has no logotype, Berendsen shows a recognizable symbol for it. There is no information about what ISO 14001 mean to Berendsen in terms of measuring their environmental impact.

The page and text related to ISO 14001 at Berendsen‘s website is persuasive with a storytelling framing often found in advertisements with passionate expressions such as ―strive‖, the use of pictures that are not directly related to the text and also with a title that has a very loose relation to the content of the text. ISO 14001 is connected to the word quality on this website and although ISO has no logotype, Berendsen shows a recognizable symbol for it. There is no information about what ISO 14001 mean to Berendsen in terms of measuring their environmental impact.

Rikstvätt

Rikstvätt

Rikstvätt mentions ISO 14001 with one sentence and is then informing about that the majority of their members are certified according to ISO 14001 and does this under the menu choice ―Miljöpolicy‖ (environmental policy) (www.rikstvatt.se)There is no information about what ISO 14001 mean to Rikstvätt in terms of measuring their environmental impact.

Rikstvätt mentions ISO 14001 with one sentence and is then informing about that the majority of their members are certified according to ISO 14001 and does this under the menu choice ―Miljöpolicy‖ (environmental policy) (www.rikstvatt.se)There is no information about what ISO 14001 mean to Rikstvätt in terms of measuring their environmental impact.

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HR Björkman

HR Björkman

HR Björkman does not inform about ISO 14001 in any textual part on their website, but has however a symbol for ISO 14001 as an image on their first page and this symbol is put in the same image as the logotypes for Eco Label and EMAS (www.hrbjorkman.se: a). They do mention ISO 14001 in a PDF file connected to the website called ―Miljöblad‖ (Environmental sheet) (www.hrbjorkman.se:b). There is no information about what ISO 14001 mean to HR Björkman in terms of measuring their environmental impact. They use a symbol for ISO 14001.

HR Björkman does not inform about ISO 14001 in any textual part on their website, but has however a symbol for ISO 14001 as an image on their first page and this symbol is put in the same image as the logotypes for Eco Label and EMAS (www.hrbjorkman.se: a). They do mention ISO 14001 in a PDF file connected to the website called ―Miljöblad‖ (Environmental sheet) (www.hrbjorkman.se:b). There is no information about what ISO 14001 mean to HR Björkman in terms of measuring their environmental impact. They use a symbol for ISO 14001.

Textilia

Textilia

Textilia has included a symbol for ISO 14001 in an image on their website‘s first page and has more information under the menu choice ―miljö‖ (Environment) and the subheading ―kvalitet‖ (quality) and lastly thereafter under the subheading ―uppfyllda kvalitetsmål‖ (implemented quality goals). One of the goals that were written there was that Textilia is certified according to ISO 14001, ISO 9001 and OHSAS 18001. Information about ISO 14001 was not to be found directly after the heading ―Miljö‖ (environment) or the subtitle ―Miljö‖ (environment) (www.textilia.se).Textilia connects ISO 14001 to the word ―quality‖. There is no information about what ISO 14001 mean to Textilia in terms of measuring their environmental impact, but they rather put the certification a fulfilled goal in itself which could give an impression that ISO 14001 actually stands for some specific environmental requirements, like for example Eco label, and not a way of measuring environmental performance. They use a symbol for ISO 14001.

Textilia has included a symbol for ISO 14001 in an image on their website‘s first page and has more information under the menu choice ―miljö‖ (Environment) and the subheading ―kvalitet‖ (quality) and lastly thereafter under the subheading ―uppfyllda kvalitetsmål‖ (implemented quality goals). One of the goals that were written there was that Textilia is certified according to ISO 14001, ISO 9001 and OHSAS 18001. Information about ISO 14001 was not to be found directly after the heading ―Miljö‖ (environment) or the subtitle ―Miljö‖ (environment) (www.textilia.se).Textilia connects ISO 14001 to the word ―quality‖. There is no information about what ISO 14001 mean to Textilia in terms of measuring their environmental impact, but they rather put the certification a fulfilled goal in itself which could give an impression that ISO 14001 actually stands for some specific environmental requirements, like for example Eco label, and not a way of measuring environmental performance. They use a symbol for ISO 14001.

Lindström and Comforta

Lindström and Comforta

Two companies (belonging to the same corporate group), Lindström and Comforta, are certified according to the ISO 14001 through their parent company Lindstrom Oy, but had no information or symbols related to ISO 14001 on their websites. (www.comfortaab.se/; www.lindstromab.se)

Two companies (belonging to the same corporate group), Lindström and Comforta, are certified according to the ISO 14001 through their parent company Lindstrom Oy, but had no information or symbols related to ISO 14001 on their websites. (www.comfortaab.se/; www.lindstromab.se)

ISO 14001 in the media between 2013-01-01 and 2013-03-31 (Swedish media search base)

ISO 14001 in the media between 2013-01-01 and 2013-03-31 (Swedish media search base)

Nya maskiner tar sig an miljön

Nya maskiner tar sig an miljön

”The major purchasers of services put specific environmental requirements on the contractor that is to perform a job.) - It meant a lot of paperwork, but our company is now environmentally certified according to ISO 14001.” (Västerbottens Mellanbygd, 2013-04-04) Morfar var igångsättaren – flera generationer i byggmaterialbranschen ”The company is not yet certified according to ISO 14001. - The work is ongoing and the goal is expected to be achieved within a few years. We are of course already today trying to be good enough. Go slowly forward, I believe in that. Then you can also meet the requirements. Grandpa was the initiator Ketson AB / Diamondbrite Sweden has certified itself according to ISO 9001:2008 and 14001:2004.”(Länstidningen Värmlandsbygden, 2013-02-21). Städservice blirmiljöcertifierad

”The major purchasers of services put specific environmental requirements on the contractor that is to perform a job.) - It meant a lot of paperwork, but our company is now environmentally certified according to ISO 14001.” (Västerbottens Mellanbygd, 2013-04-04) Morfar var igångsättaren – flera generationer i byggmaterialbranschen ”The company is not yet certified according to ISO 14001. - The work is ongoing and the goal is expected to be achieved within a few years. We are of course already today trying to be good enough. Go slowly forward, I believe in that. Then you can also meet the requirements. Grandpa was the initiator Ketson AB / Diamondbrite Sweden has certified itself according to ISO 9001:2008 and 14001:2004.”(Länstidningen Värmlandsbygden, 2013-02-21). Städservice blirmiljöcertifierad

“Halmstad municipality cleaning service is the first municipalian operation that has been environmentally certified. The ISO 14001 certificate means that schools, nursing homes, sports centers and other municipal facilities are now cleaned according to all thinkable environmental requirements.” (Halmstad 7 dagar, 2013-02-27). Kista Entré – En guldbyggnad

“Halmstad municipality cleaning service is the first municipalian operation that has been environmentally certified. The ISO 14001 certificate means that schools, nursing homes, sports centers and other municipal facilities are now cleaned according to all thinkable environmental requirements.” (Halmstad 7 dagar, 2013-02-27). Kista Entré – En guldbyggnad

”Vasakronan has extensive experience after a long time of working with environmental issues. They are for instance ISO 14001-certified, carbon neutral and were the first with green leases. Environmental efforts paid at the certification.” (Lokalnytt Stockholm, 2013-02-21)

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”Vasakronan has extensive experience after a long time of working with environmental issues. They are for instance ISO 14001-certified, carbon neutral and were the first with green leases. Environmental efforts paid at the certification.” (Lokalnytt Stockholm, 2013-02-21)

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These articles are all persuasive with storytelling elements and probably part of companies‘ PR. The intertextuality in form of mentioning ISO 14001 is evident, ISO 14001 is mentioned with pride and wanting to spread that they are certified according to the ISO 14001standard. There is no information about what ISO 14001 mean to the companies in terms of measuring their environmental impact or to the society. Also the websites give no information about what ISO 14001 actually imply for their environmental performance and Henrik Englund from Lindström services said that the customers seem to be satisfied with the simple fact that they follow the ISO 14001 standard without asking any further questions.The intertextuality of these texts also show that the referral of ISO 14001 is consequently made without further explanations. The companies‘ intentionality here seems to be that they want to communicate that they are certified according to the ISO 14001 standard, but that they are less interested in communicating what implications that has for their environmental performance even though this is an EMS standard and not a product specification which means that it itself does not tell anything about the environmental performance. The validity of that is questionable: the truth is questionable and the sincerity is questionable. Since validity is related to trust (Habermas, 1984), one could suggest that marketing trust is decreased by low validity.

These articles are all persuasive with storytelling elements and probably part of companies‘ PR. The intertextuality in form of mentioning ISO 14001 is evident, ISO 14001 is mentioned with pride and wanting to spread that they are certified according to the ISO 14001standard. There is no information about what ISO 14001 mean to the companies in terms of measuring their environmental impact or to the society. Also the websites give no information about what ISO 14001 actually imply for their environmental performance and Henrik Englund from Lindström services said that the customers seem to be satisfied with the simple fact that they follow the ISO 14001 standard without asking any further questions.The intertextuality of these texts also show that the referral of ISO 14001 is consequently made without further explanations. The companies‘ intentionality here seems to be that they want to communicate that they are certified according to the ISO 14001 standard, but that they are less interested in communicating what implications that has for their environmental performance even though this is an EMS standard and not a product specification which means that it itself does not tell anything about the environmental performance. The validity of that is questionable: the truth is questionable and the sincerity is questionable. Since validity is related to trust (Habermas, 1984), one could suggest that marketing trust is decreased by low validity.

Figure 1: Summary of the findings in accordance with the conceptual tools

Figure 1: Summary of the findings in accordance with the conceptual tools

Intertextuality

Intertextuality

The intertextuality is evident all through the genre chain and ISO 14001 is re-mentioned, although with more or less information about the environmental implications of the standard.

The intertextuality is evident all through the genre chain and ISO 14001 is re-mentioned, although with more or less information about the environmental implications of the standard.

Explicit/Implicit

Explicit/Implicit

The ISO 14001 standard is made explicit in all genres in terms of the mentioning of ISO 14001, but the distinctiveness of environmental implications of the standard varyies and is entirely implicit on the websites and in the media.

The ISO 14001 standard is made explicit in all genres in terms of the mentioning of ISO 14001, but the distinctiveness of environmental implications of the standard varyies and is entirely implicit on the websites and in the media.

Intentionality

Intentionality

The instructive language in the encyclopedia suggests an intention to inform, the interplay between instructive, persuasive and story telling elements in the other genres suggest an intent to build trust and convince. Further does the implicitness of a further explanation to what ISO 14001 means to the particular company's environmental performance suggest that the intention behind ISO 14001 is not to create a mutual understanding, but more to gain an agile trust.

The instructive language in the encyclopedia suggests an intention to inform, the interplay between instructive, persuasive and story telling elements in the other genres suggest an intent to build trust and convince. Further does the implicitness of a further explanation to what ISO 14001 means to the particular company's environmental performance suggest that the intention behind ISO 14001 is not to create a mutual understanding, but more to gain an agile trust.

6. Conclusions

6. Conclusions

Sample texts and discourses in the first texts: Ne.se, ISO and the annual report from SISbelong to different genres, but they do not involve the companies that are certified with the ISO 14001 standard. They were all describing ISO 14001 and they were mainly hold instructive, although the text from ISO contained persuasive elements. What is hold implicit in all of these genres‘ descriptions of ISO 14001 is that it is a selfregulation standard that is developed by ISO‘s members who are mainly organizations certified in accordance with the ISO 14001 standard.A reader could get the impression that this is a societal service without direct private interests. The intentionality is differing between the genres, where Ne.se shows no intention to market ISO 14001, which however is a clear intention from ISO. The intertextuality between these genres is rather clear since the same information is made explicit versus implicit all through the genre chain. It is made explicit that ISO 14001 is a standard for EMSs, but implicit that this standard is not a societal service without private interests. That the private interests are made implicit could decrease the validity in form of sincerity and truth, which could lead to a lower level of trust.

Sample texts and discourses in the first texts: Ne.se, ISO and the annual report from SISbelong to different genres, but they do not involve the companies that are certified with the ISO 14001 standard. They were all describing ISO 14001 and they were mainly hold instructive, although the text from ISO contained persuasive elements. What is hold implicit in all of these genres‘ descriptions of ISO 14001 is that it is a selfregulation standard that is developed by ISO‘s members who are mainly organizations certified in accordance with the ISO 14001 standard.A reader could get the impression that this is a societal service without direct private interests. The intentionality is differing between the genres, where Ne.se shows no intention to market ISO 14001, which however is a clear intention from ISO. The intertextuality between these genres is rather clear since the same information is made explicit versus implicit all through the genre chain. It is made explicit that ISO 14001 is a standard for EMSs, but implicit that this standard is not a societal service without private interests. That the private interests are made implicit could decrease the validity in form of sincerity and truth, which could lead to a lower level of trust.

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What nonetheless is mentioned by ISO and SIS is that ISO 14001 is a standard for EMSs and in itself does not show any specific environmental performance. This was made implicit by the companies on the websites and in the news articles. That this is not mentioned by the companies could give a lower validity since the level of truth and sincerity is lower and this could lead to a lower level of trust.

What nonetheless is mentioned by ISO and SIS is that ISO 14001 is a standard for EMSs and in itself does not show any specific environmental performance. This was made implicit by the companies on the websites and in the news articles. That this is not mentioned by the companies could give a lower validity since the level of truth and sincerity is lower and this could lead to a lower level of trust.

The intentionality with mentioning of ISO 14001 on both the corporate websites and in the media seem to be simply to communicate that they are certified according to the ISO 14001 standard as a part of their green marketing, but that they are less interested in communicating what implications that has for their environmental performance even though this is an EMS standard and not a product specification which means that it itself does not tell anything about the environmental performance. Three out of the six corporate websites in this study used symbols to illustrate their certification according to the ISO 14001 standard although this is standard for a management system which does not mean that the company is environmentally friendly.The intertextuality of that shows a disharmony of the differing agents‘ intentionality with ISO 14001.

The intentionality with mentioning of ISO 14001 on both the corporate websites and in the media seem to be simply to communicate that they are certified according to the ISO 14001 standard as a part of their green marketing, but that they are less interested in communicating what implications that has for their environmental performance even though this is an EMS standard and not a product specification which means that it itself does not tell anything about the environmental performance. Three out of the six corporate websites in this study used symbols to illustrate their certification according to the ISO 14001 standard although this is standard for a management system which does not mean that the company is environmentally friendly.The intertextuality of that shows a disharmony of the differing agents‘ intentionality with ISO 14001.

Communicative action aims to reach mutual understanding, for which validity plays an important role. Validity, which is increased by truth, conduct/rightness, and sincerity/authenticity, can be related to trust (Habermas, 1984). This study‘s research question is how green marketing and the self-regulation standard ISO 14001 is related to marketing trust. The answer to this could be found in the level of validity in discourses on the market involving ISO 14001. This critical study has observed parts of the communication where the validity is low and a conclusion is thereby that the low validity could harm the marketing trust in relation to ISO 14001, the self-regulation market and green marketing as a practice. A higher validity with more transparency in terms of what ISO 14001 is, who is behind this standard, what it costs and that it is merely a standard for EMSs would possibly create a better possibility for marketing trust within green marketing.

Communicative action aims to reach mutual understanding, for which validity plays an important role. Validity, which is increased by truth, conduct/rightness, and sincerity/authenticity, can be related to trust (Habermas, 1984). This study‘s research question is how green marketing and the self-regulation standard ISO 14001 is related to marketing trust. The answer to this could be found in the level of validity in discourses on the market involving ISO 14001. This critical study has observed parts of the communication where the validity is low and a conclusion is thereby that the low validity could harm the marketing trust in relation to ISO 14001, the self-regulation market and green marketing as a practice. A higher validity with more transparency in terms of what ISO 14001 is, who is behind this standard, what it costs and that it is merely a standard for EMSs would possibly create a better possibility for marketing trust within green marketing.

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A Review on Scientific Approach to Waste Management 1,2

A Review on Scientific Approach to Waste Management

Amit Madahar1 , Rajeev Varshney2 Department of Textile Engineering, Giani Zail Singh PTU Campus, Bathinda, India 1 [email protected], [email protected]

1,2

Amit Madahar1 , Rajeev Varshney2 Department of Textile Engineering, Giani Zail Singh PTU Campus, Bathinda, India 1 [email protected], [email protected]

Abstract

Abstract

Managing Waste is a significantly emerging problem and is recognized globally. The solid waste management was considered as a low priority issue in the earlier times but now a days with the enormous scientific and technical progress and increasing trend of Urbanization in India, the waste management has become a key issue. This paper highlights the growth of hazardous waste, Infectious waste, E- waste as well as radioactive waste and their adverse effect on the human health and on the surrounding environment. The government of India has issued various legislations relating to the environmental protection and human health.

Managing Waste is a significantly emerging problem and is recognized globally. The solid waste management was considered as a low priority issue in the earlier times but now a days with the enormous scientific and technical progress and increasing trend of Urbanization in India, the waste management has become a key issue. This paper highlights the growth of hazardous waste, Infectious waste, E- waste as well as radioactive waste and their adverse effect on the human health and on the surrounding environment. The government of India has issued various legislations relating to the environmental protection and human health.

Keywords: Waste management, Land filling, Incineration, Recycling, Biological processing, Pyrolysis.

Keywords: Waste management, Land filling, Incineration, Recycling, Biological processing, Pyrolysis.

1. Introduction

1. Introduction

With the advancement in the technology and accumulation of knowledge, the man has achieved an ability to mould the environment according to the needs. With a phenomenal increase in Industrial sector and increasing trend of Urbanization, the solid waste management has become one of the most critical challenges in today’s era. The term waste management usually relates to the materials produced as a result of human activities and aims at undertaking appropriate corrective measures in order to minimize or eliminate their effect on human health as well as on the surrounding environment. Waste management basically deals with the aspects related with generation of waste, its prevention, characterization, treatment, handling and further disposition of the residual waste. It encircles the management of all processes and resources for proper handling, transportation and dumping facilities in accordance with the legislations and regulations issued by the government.

With the advancement in the technology and accumulation of knowledge, the man has achieved an ability to mould the environment according to the needs. With a phenomenal increase in Industrial sector and increasing trend of Urbanization, the solid waste management has become one of the most critical challenges in today’s era. The term waste management usually relates to the materials produced as a result of human activities and aims at undertaking appropriate corrective measures in order to minimize or eliminate their effect on human health as well as on the surrounding environment. Waste management basically deals with the aspects related with generation of waste, its prevention, characterization, treatment, handling and further disposition of the residual waste. It encircles the management of all processes and resources for proper handling, transportation and dumping facilities in accordance with the legislations and regulations issued by the government.

2. Nature of Solid Waste

2. Nature of Solid Waste

Depending upon its chemical and physical characteristics, the waste can be categorized as solid, liquid and gaseous waste. Solid waste is any discarded material which may include household or domestic waste, waste from Hospitals, Restaurants, Hotels etc. Solid waste can be solid, liquid, semi solid or containerized gaseous material. The waste can be broadly divided in the following categories:

Depending upon its chemical and physical characteristics, the waste can be categorized as solid, liquid and gaseous waste. Solid waste is any discarded material which may include household or domestic waste, waste from Hospitals, Restaurants, Hotels etc. Solid waste can be solid, liquid, semi solid or containerized gaseous material. The waste can be broadly divided in the following categories:

(a) Domestic waste or Municipal waste includes the solid waste such as waste bottles, cans, newspapers, magazines and kitchen waste from apartments or homes. It is also referred to as residential waste. (b) Household Hazardous waste includes the waste materials that also originates from private apartments or homes but contains hazardous substances which can cause harm to the human health and environment. The household hazardous waste includes Toilet cleaners, Ant sprays, moth repellants and mouse and rat poisons etc. However, the Hazardous waste is mainly comprised of chemical waste originating from various Industrial processes and is often referred to as Industrial waste. (c) Electronic waste or E-waste basically refers to a discarded electronic device or any unwanted, unusable or broken electrical or electronic device. The electronic waste may include electronic appliances such as personal computers, televisions, telephones, cell phones, stereos, CRs, fax machines, electric lamps, audio equipments and batteries etc. (d) Radioactive waste also referred to as nuclear waste typically includes unstable configurations of elements (radioisotopes) that decay thereby emitting radioactive radiations which may cause threat to human beings

(a) Domestic waste or Municipal waste includes the solid waste such as waste bottles, cans, newspapers, magazines and kitchen waste from apartments or homes. It is also referred to as residential waste. (b) Household Hazardous waste includes the waste materials that also originates from private apartments or homes but contains hazardous substances which can cause harm to the human health and environment. The household hazardous waste includes Toilet cleaners, Ant sprays, moth repellants and mouse and rat poisons etc. However, the Hazardous waste is mainly comprised of chemical waste originating from various Industrial processes and is often referred to as Industrial waste. (c) Electronic waste or E-waste basically refers to a discarded electronic device or any unwanted, unusable or broken electrical or electronic device. The electronic waste may include electronic appliances such as personal computers, televisions, telephones, cell phones, stereos, CRs, fax machines, electric lamps, audio equipments and batteries etc. (d) Radioactive waste also referred to as nuclear waste typically includes unstable configurations of elements (radioisotopes) that decay thereby emitting radioactive radiations which may cause threat to human beings

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and the environment. The majority of radioactive waste is originated from nuclear fuel cycle and nuclear weapon reprocessing and is hazardous to most forms of life and the environment. (e) Infectious waste includes the waste that originates from hospitals, medical laboratories, medical Institutions and Clinics etc. The infectious waste includes human blood and blood products, isolation waste, pathological waste and contaminated animal waste etc. which can cause severe infectious diseases to human beings and animals as well.

and the environment. The majority of radioactive waste is originated from nuclear fuel cycle and nuclear weapon reprocessing and is hazardous to most forms of life and the environment. (e) Infectious waste includes the waste that originates from hospitals, medical laboratories, medical Institutions and Clinics etc. The infectious waste includes human blood and blood products, isolation waste, pathological waste and contaminated animal waste etc. which can cause severe infectious diseases to human beings and animals as well.

3. Waste Management in India

3. Waste Management in India

With a population of over 1.5 billion, modernization and rapid trend of Urbanization in India is quite inevitable. Due to inferior infrastructural developments, most of the cities in India are not well prepared for the rapid growth. The problem of Waste management has become a serious concern in today’s era. The waste material generated from various Industries including Textiles, Chemicals, paint and dyeing etc. is discharged in the water bodies or often end up in landfills. Such untreated waste leads to significant health issues for human beings and also causes environmental problems.

With a population of over 1.5 billion, modernization and rapid trend of Urbanization in India is quite inevitable. Due to inferior infrastructural developments, most of the cities in India are not well prepared for the rapid growth. The problem of Waste management has become a serious concern in today’s era. The waste material generated from various Industries including Textiles, Chemicals, paint and dyeing etc. is discharged in the water bodies or often end up in landfills. Such untreated waste leads to significant health issues for human beings and also causes environmental problems.

Table 1: Hazardous waste generation in India S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 1. 2. 3. TOTAL

Name of State/UTs Andhra Pradesh Assam Bihar Chhattisgarh Gujarat Goa Haryana HP J&K Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizorum Nagaland Orrisa Punjab Rajasthan Tripura Tamil Nadu Uttar Pradesh Uttaranchal West Bengal Daman, Diu, Dadra & Nagar Haveli Pondicherry Chandigarh

Table 1: Hazardous waste generation in India

Quantity of Hazardous waste management (MTA) Land fillable Incinerable Recyclable 211442 31660 313217 3252 7480 3357 9 73 5277 6897 283213 1107128 108622 577037 10763 8271 7614 30452 1429 4919 35519 2248 4380 9946 141 6867 23135 9813 204236 18366 3713 54490 59591 223 23085 34945 5036 127909 568135 152791 847442 115 137 19 697 6443 90 Nil 12 61 Nil 11 74351 4052 18427 13601 14831 89481 165107 23025 84739 0 30 237 157909 11145 89593 36370 15697 117227 17991 580 11 120598 12583 126597 17219 431 56350

Total 556319 10732 3439 295387 1792787 26648 36800 42147 16954 237184 76569 82899 167890 1568368 252 7159 102 72 96830 117913 272871 267 258647 169294 18582 259777 73990

S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 1.

132 232

36392 955

2. 3. TOTAL

25 -

48

36235 723

Name of State/UTs Andhra Pradesh Assam Bihar Chhattisgarh Gujarat Goa Haryana HP J&K Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizorum Nagaland Orrisa Punjab Rajasthan Tripura Tamil Nadu Uttar Pradesh Uttaranchal West Bengal Daman, Diu, Dadra & Nagar Haveli Pondicherry Chandigarh

Quantity of Hazardous waste management (MTA) Land fillable Incinerable Recyclable 211442 31660 313217 3252 7480 3357 9 73 5277 6897 283213 1107128 108622 577037 10763 8271 7614 30452 1429 4919 35519 2248 4380 9946 141 6867 23135 9813 204236 18366 3713 54490 59591 223 23085 34945 5036 127909 568135 152791 847442 115 137 19 697 6443 90 Nil 12 61 Nil 11 74351 4052 18427 13601 14831 89481 165107 23025 84739 0 30 237 157909 11145 89593 36370 15697 117227 17991 580 11 120598 12583 126597 17219 431 56350

Total 556319 10732 3439 295387 1792787 26648 36800 42147 16954 237184 76569 82899 167890 1568368 252 7159 102 72 96830 117913 272871 267 258647 169294 18582 259777 73990

132 232

36392 955

25 -

48

36235 723

Source: Technical EIA guidance manual for common hazardous waste treatment storage and disposal facilities , MoEF got of India.

Source: Technical EIA guidance manual for common hazardous waste treatment storage and disposal facilities , MoEF got of India.

The table above illustrates the amount of waste generated by various states of India as in February 2009. The waste generated by each state can be land filled, Recyclable and Incinerable. However, It can be clearly viewed from the table above that most of the waste generated is land fillable. The recyclable waste is also produced in large quantities by some of the states as Andhra Pradesh, Gujarat, Jharkhand and Maharashtra etc.

The table above illustrates the amount of waste generated by various states of India as in February 2009. The waste generated by each state can be land filled, Recyclable and Incinerable. However, It can be clearly viewed from the table above that most of the waste generated is land fillable. The recyclable waste is also produced in large quantities by some of the states as Andhra Pradesh, Gujarat, Jharkhand and Maharashtra etc.

4. Waste Management Techniques

4. Waste Management Techniques

The waste management has become a serious problem in the present Scenario. There is a great need of proper scientific waste management techniques and a proper disposal of waste. The various techniques being used for waste management are discussed below.

The waste management has become a serious problem in the present Scenario. There is a great need of proper scientific waste management techniques and a proper disposal of waste. The various techniques being used for waste management are discussed below.

4.1 Land filling

4.1 Land filling

The term Land filling refers to the disposal of waste material by burying the waste in an un used land or hollow pits. Land filling has been a common technique for the disposal of waste in most countries. It is a relatively inexpensive method of waste disposal but it should be properly designed and well managed so that it does not cause any harm or spread diseases in the surrounding environment. A landfill if poorly managed or poorly designed may be unhygienic to the people and thereby may cause health issues among the people residing in the nearby localities.

The term Land filling refers to the disposal of waste material by burying the waste in an un used land or hollow pits. Land filling has been a common technique for the disposal of waste in most countries. It is a relatively inexpensive method of waste disposal but it should be properly designed and well managed so that it does not cause any harm or spread diseases in the surrounding environment. A landfill if poorly managed or poorly designed may be unhygienic to the people and thereby may cause health issues among the people residing in the nearby localities.

The landfills also may also liberate various gases such as Carbon dioxide (CO2) and methane (CH4 ) due to anaerobic breakdown of the organic waste. These gases if liberated in large proportions may cause adverse effects on the surrounding environment. However, the modern landfills are equipped with perforated pipes through which the gases are pumped out.

The landfills also may also liberate various gases such as Carbon dioxide (CO2) and methane (CH4 ) due to anaerobic breakdown of the organic waste. These gases if liberated in large proportions may cause adverse effects on the surrounding environment. However, the modern landfills are equipped with perforated pipes through which the gases are pumped out.

4.2. Incineration

4.2. Incineration

The term Incineration refers to the conversion of waste material in to ash, flu gas and heat. The solid organic waste material is converted in to residues and gaseous products by burning the waste. This method of waste disposal can be used on small scales by individuals as well as on large scale by Industries. With the Incineration of waste, the volume of the solid waste material is reduced by 20 – 30% of the volume of waste material. The Incineration process may also termed as thermal treatment since the waste material is subjected to combustion to convert it into residual products. The Incineration of waste is usually employed in countries where there is scarcity of land as this process does not require as much land as is needed in land filling.

The term Incineration refers to the conversion of waste material in to ash, flu gas and heat. The solid organic waste material is converted in to residues and gaseous products by burning the waste. This method of waste disposal can be used on small scales by individuals as well as on large scale by Industries. With the Incineration of waste, the volume of the solid waste material is reduced by 20 – 30% of the volume of waste material. The Incineration process may also termed as thermal treatment since the waste material is subjected to combustion to convert it into residual products. The Incineration of waste is usually employed in countries where there is scarcity of land as this process does not require as much land as is needed in land filling.

4.3. Recycling

4.3. Recycling

Recycling is referred to as a process in which the waste material is converted to usable products. The Recycling process not only reduces the consumption of fresh raw materials, use of energy but also makes the product more cost effective. The Recycling process also provides an advantage of reducing water pollution (which is caused by disposal of waste with Land filling process) and air pollution (which is caused by disposal of waste by Incineration). Thus Recycling can also be termed as resource recovery process for the collection and reuse of the waste materials such as papers, magazines, beverages cans etc. The materials which are to be recycled is different for different cities and countries. Every city and country usually employ their own Recycling plants to recycle the waste material in to desired usable products.

Recycling is referred to as a process in which the waste material is converted to usable products. The Recycling process not only reduces the consumption of fresh raw materials, use of energy but also makes the product more cost effective. The Recycling process also provides an advantage of reducing water pollution (which is caused by disposal of waste with Land filling process) and air pollution (which is caused by disposal of waste by Incineration). Thus Recycling can also be termed as resource recovery process for the collection and reuse of the waste materials such as papers, magazines, beverages cans etc. The materials which are to be recycled is different for different cities and countries. Every city and country usually employ their own Recycling plants to recycle the waste material in to desired usable products.

4.4. Biological Reprocessing

4.4. Biological Reprocessing

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In this process the organic waste materials are recycled by using biological compositing and digestion process. The organic waste materials such as plant materials, paper materials as well as food scraps can be recycled by subjecting them to biological compositing and digestion processes in order to decompose the organic matter. The organic waste material after being subjected to this process is further recycled as compost for agricultural applications or landscaping purposes. The biological decomposition of the material can be carried out with both aerobic and anaerobic methods. In case of biological reprocessing, the gases such as methane produced as a result of biological decomposition of organic waste are usually collected and are further used in electricity generation and heat maximizing efficiencies.

In this process the organic waste materials are recycled by using biological compositing and digestion process. The organic waste materials such as plant materials, paper materials as well as food scraps can be recycled by subjecting them to biological compositing and digestion processes in order to decompose the organic matter. The organic waste material after being subjected to this process is further recycled as compost for agricultural applications or landscaping purposes. The biological decomposition of the material can be carried out with both aerobic and anaerobic methods. In case of biological reprocessing, the gases such as methane produced as a result of biological decomposition of organic waste are usually collected and are further used in electricity generation and heat maximizing efficiencies.

4.5. Pyrolysis

4.5. Pyrolysis

It is referred to as a process In which the chemical composition as well as the physical state of the material is changed simultaneously by subjecting the organic material to thermal decomposition at a high temperature to produce hydrocarbon gases . The organic waste material is subjected to thermo chemical decomposition in the absence of oxygen at high temperature and is an irreversible process. The Pyrolysis process also finds wide range of applications in chemical industries such as in manufacturing of PVC by converting ethylene dichloride in to vinyl chloride, producing coke from coal and to turn the waste in to disposable substances. The Pyrolysis process is carried out in vacuum where in the organic material is heated in vacuum to lower its boiling point and to avoid adverse chemical reactions.

It is referred to as a process In which the chemical composition as well as the physical state of the material is changed simultaneously by subjecting the organic material to thermal decomposition at a high temperature to produce hydrocarbon gases . The organic waste material is subjected to thermo chemical decomposition in the absence of oxygen at high temperature and is an irreversible process. The Pyrolysis process also finds wide range of applications in chemical industries such as in manufacturing of PVC by converting ethylene dichloride in to vinyl chloride, producing coke from coal and to turn the waste in to disposable substances. The Pyrolysis process is carried out in vacuum where in the organic material is heated in vacuum to lower its boiling point and to avoid adverse chemical reactions.

4.6. E- waste Management and its effect

4.6. E- waste Management and its effect

With the increasing trend of urbanization and advancement in the technology, the E-waste has become a key issue in today’s era. The emerging growth and development has been on the back of IT development and globalization. Although such technological advancements have brought about a huge change in our lifestyle but the mismanagement of the waste leads to serious problems of contamination and pollution. The E-waste generated contains many toxic substances that may cause significant loss to the people and surrounding environment. Some of the potentially hazardous metals which are a chief constituent of E-waste includes lead, cadmium, barium, tin, mercury and hexavalent chromium etc.

With the increasing trend of urbanization and advancement in the technology, the E-waste has become a key issue in today’s era. The emerging growth and development has been on the back of IT development and globalization. Although such technological advancements have brought about a huge change in our lifestyle but the mismanagement of the waste leads to serious problems of contamination and pollution. The E-waste generated contains many toxic substances that may cause significant loss to the people and surrounding environment. Some of the potentially hazardous metals which are a chief constituent of E-waste includes lead, cadmium, barium, tin, mercury and hexavalent chromium etc.

Table Ι: Effect of E-waste constituents on human health.

Table Ι: Effect of E-waste constituents on human health.

Sources of E-waste Cabling and computer housing.

Constituents of E-waste Plastics including Poly Vinyl Chloride (PVC)

Relays and switches, printed circuit boards

Mercury

 

Solder in printed circuit boards, glass panels and gaskets in computer monitors.

Lead

 

Plastic housing of electronic equipments and circuit boards

Brominated retardants

flame

50

Effects on human health The burning of this kind of waste produces dioxin which:  Damages the Immune system  Causes Reproductive and development problems  Interference with regulatory hormones.

 

Chronic damage to brain Respiratory and skin diseases due to bioaccumulation in fishes. Damages the blood systems and kidney Damages the central and peripheral nervous systems Affects brain development in children Effects the functioning of endocrine system

Sources of E-waste Cabling and computer housing.

Constituents of E-waste Plastics including Poly Vinyl Chloride (PVC)

Relays and switches, printed circuit boards

Mercury

 

Solder in printed circuit boards, glass panels and gaskets in computer monitors.

Lead

 

Plastic housing of electronic equipments and circuit boards

Brominated retardants

flame

50

Effects on human health The burning of this kind of waste produces dioxin which:  Damages the Immune system  Causes Reproductive and development problems  Interference with regulatory hormones.

 

Chronic damage to brain Respiratory and skin diseases due to bioaccumulation in fishes. Damages the blood systems and kidney Damages the central and peripheral nervous systems Affects brain development in children Effects the functioning of endocrine system

Front panel of CRTs

Barium

Motherboard

Beryllium

Corrosion protection of untreated and galvanized steel plates, decorator or hardner for steel housing

Hexavalent Chromium

Semi conductors and chip resistors

Cadmium

The exposure causes:  Muscle weakness  Damage to heart and liver  Carcinogenic  Skin diseases  Inhalation of dust and fumes causes chronic beryllium disease or beryllicosis.  Asthamatic bronchitis  DNA damage

   

Causes neural problems. Accumulates in kidney and liver. Toxic irreversible effects on human health Teratogenic

Front panel of CRTs

Barium

Motherboard

Beryllium

Corrosion protection of untreated and galvanized steel plates, decorator or hardner for steel housing

Hexavalent Chromium

Semi conductors and chip resistors

Cadmium

The exposure causes:  Muscle weakness  Damage to heart and liver  Carcinogenic  Skin diseases  Inhalation of dust and fumes causes chronic beryllium disease or beryllicosis.  Asthamatic bronchitis  DNA damage

   

Causes neural problems. Accumulates in kidney and liver. Toxic irreversible effects on human health Teratogenic

5. Disposal and Recycling of E-waste

5. Disposal and Recycling of E-waste

The processing of the E-waste usually involves dismantling of the equipment in to various parts with manual or automated systems. This processing of the waste provides a significant advantage of the human’s ability to recognize and save the parts of the equipments such as transistors; chip RAM etc. and which can be repaired and reused. A typical example of such an organization which contributes to waste management is NADIN electronic waste processing plant in Novi Iskar, Bulgaria. The recycling of the waste material is the most effective solution of the E-waste management. It reduces the cost involved in disposal of the waste and hence provides income sources by the repair of equipment parts. The recycling of the waste reduces the amount of green house gases emission which is caused by the manufacturing of the new material. A well designed and well managed recycling of the waste provides workers health safety and efficient consideration for the environment locally.

The processing of the E-waste usually involves dismantling of the equipment in to various parts with manual or automated systems. This processing of the waste provides a significant advantage of the human’s ability to recognize and save the parts of the equipments such as transistors; chip RAM etc. and which can be repaired and reused. A typical example of such an organization which contributes to waste management is NADIN electronic waste processing plant in Novi Iskar, Bulgaria. The recycling of the waste material is the most effective solution of the E-waste management. It reduces the cost involved in disposal of the waste and hence provides income sources by the repair of equipment parts. The recycling of the waste reduces the amount of green house gases emission which is caused by the manufacturing of the new material. A well designed and well managed recycling of the waste provides workers health safety and efficient consideration for the environment locally.

6. Conclusion

6. Conclusion

New technologies are being developed and newer advancements are being made in science and technology but at the same time there is a huge need for a proper and well designed waste management system. With the increasing trend of Urbanization and Industrialization, the problem of E-waste management has emerged as a serious concern. The methods for disposal of waste such as landfills and Incineration should be well designed and well managed in such a hygienic manner that these do not cause any harm to the mankind as well as to the surrounding environment.

New technologies are being developed and newer advancements are being made in science and technology but at the same time there is a huge need for a proper and well designed waste management system. With the increasing trend of Urbanization and Industrialization, the problem of E-waste management has emerged as a serious concern. The methods for disposal of waste such as landfills and Incineration should be well designed and well managed in such a hygienic manner that these do not cause any harm to the mankind as well as to the surrounding environment.

7. References

7. References

Archna, Nahush G.S, Venkat S. (2005,1-2 Oct.). Biological Denitrification of water in a packed bed and a fluidized bed reactor: A Review. Proceedings of waste management in chemical and allied Industries: A vision 2020.

Archna, Nahush G.S, Venkat S. (2005,1-2 Oct.). Biological Denitrification of water in a packed bed and a fluidized bed reactor: A Review. Proceedings of waste management in chemical and allied Industries: A vision 2020.

Bansal Manjeet, Bath Virk G.S, Virk A.S, (2013, 14-15 Feb). Hazardous Waste Management: Indian Scenerio. Proceedings of Futuristic and Emerging areas in technology: Issue and challenge 2013, FEAT at GZSPTU Campus, Bathinda.

Bansal Manjeet, Bath Virk G.S, Virk A.S, (2013, 14-15 Feb). Hazardous Waste Management: Indian Scenerio. Proceedings of Futuristic and Emerging areas in technology: Issue and challenge 2013, FEAT at GZSPTU Campus, Bathinda.

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Das M. and Tiwari T.N. (2005, 1-2 Oct.). E- Waste: A threat to the environment. Proceedings of waste management in chemical and allied Industries: A vision 2020, WMCI

Das M. and Tiwari T.N. (2005, 1-2 Oct.). E- Waste: A threat to the environment. Proceedings of waste management in chemical and allied Industries: A vision 2020, WMCI

Das S. and Pandey D. (2005, 1-2 Oct.). Industrial and Municipal waste Management in Rourkela. Proceedings of waste management in chemical and allied Industries: A vision 2020, WMCI

Das S. and Pandey D. (2005, 1-2 Oct.). Industrial and Municipal waste Management in Rourkela. Proceedings of waste management in chemical and allied Industries: A vision 2020, WMCI

Dr. Sreenivas T., Dr. Rao M.V. (2005, 1-2 Oct.). Waste management in hospitals-Need of the hour. Proceedings of waste management in chemical and allied Industries: A vision 2020, WMCI

Dr. Sreenivas T., Dr. Rao M.V. (2005, 1-2 Oct.). Waste management in hospitals-Need of the hour. Proceedings of waste management in chemical and allied Industries: A vision 2020, WMCI

Ramachandra T.V., Saira Varghese K., Environmentally sound options for E-waste management. Envis Journal of Human settlements, March 2004.

Ramachandra T.V., Saira Varghese K., Environmentally sound options for E-waste management. Envis Journal of Human settlements, March 2004.

Singh H. (2013, 14-15 Feb.). Radioactive waste and Environmental management: A futuristic trend. Proceedings of Futuristic and Emerging areas in technology: Issue and challenge 2013, FEAT

Singh H. (2013, 14-15 Feb.). Radioactive waste and Environmental management: A futuristic trend. Proceedings of Futuristic and Emerging areas in technology: Issue and challenge 2013, FEAT

Technical EIA guidance manual for common hazardous waste treatment storage and disposal facilities , MoEF got of India.

Technical EIA guidance manual for common hazardous waste treatment storage and disposal facilities , MoEF got of India.

www.businessdictionary.com/defination/wastemanagement.html

www.businessdictionary.com/defination/wastemanagement.html

en.wikipedia.org/wiki/wastemanagement

en.wikipedia.org/wiki/wastemanagement

biodegradableandnonbiodegradable.blogspot.in/2012/04/biologicalreprocessing.html

biodegradableandnonbiodegradable.blogspot.in/2012/04/biologicalreprocessing.html

www.ndswra.org/dnn/householdhazardouswaste/definationofhouseholdhazardouswaste.ask

www.ndswra.org/dnn/householdhazardouswaste/definationofhouseholdhazardouswaste.ask

en.wikipedia.org/wikipyrolysis

en.wikipedia.org/wikipyrolysis

www.dec.ny.gov/chemical/8732.html. (New York State Department of Environmental Conservation).

www.dec.ny.gov/chemical/8732.html. (New York State Department of Environmental Conservation).

Author’s Profile

Author’s Profile

Dr. Rajeev Kumar Varshney is currently serving as Coordinator, Department of Textile Engineering, at Giani Zail Singh- Punjab Technical University Campus, Bathinda, Punjab (India). Prof. Varshney has been very active in the area of teaching Textile Engineering and Research Methodology. He is guiding PhD, UG and PG students in the field of Textile Engineering. He has around Eighteen years of experience in Industry & Academia. Dr. Varshney has got research papers published to his name in various International Research Journals from India, UK and Hong Kong. He participated in around fifty national and international conferences.

Dr. Rajeev Kumar Varshney is currently serving as Coordinator, Department of Textile Engineering, at Giani Zail Singh- Punjab Technical University Campus, Bathinda, Punjab (India). Prof. Varshney has been very active in the area of teaching Textile Engineering and Research Methodology. He is guiding PhD, UG and PG students in the field of Textile Engineering. He has around Eighteen years of experience in Industry & Academia. Dr. Varshney has got research papers published to his name in various International Research Journals from India, UK and Hong Kong. He participated in around fifty national and international conferences.

Mr Amit. Madahar is a student of M.tech (Textile Engineeng) at Giani Zail Singh Punjab Technical University Campus, Bathinda. Mr. Amit Madahar has been a Gold medalist of PTUGZS Campus for three consecutive semesters during B.tech course curriculum. He has executed his 6 months training in Dongguk University, Seoul, South Korea under a student exchange program on scholarship basis. He has been actively participating and presenting papers in National Conferences and has papers published in International Journals.

Mr Amit. Madahar is a student of M.tech (Textile Engineeng) at Giani Zail Singh Punjab Technical University Campus, Bathinda. Mr. Amit Madahar has been a Gold medalist of PTUGZS Campus for three consecutive semesters during B.tech course curriculum. He has executed his 6 months training in Dongguk University, Seoul, South Korea under a student exchange program on scholarship basis. He has been actively participating and presenting papers in National Conferences and has papers published in International Journals.

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The Role of top 100 Fortune Companies in Natural Disaster Management

The Role of top 100 Fortune Companies in Natural Disaster Management

Arvind Kumar1, Hamendra Kumar Dangi2, Rashmi3, Khimendra Singh4 1 Sr. Faculty, Department of Commerce, LSR College, University of Delhi 2 Associate Professor, Faculty of Management Studies, Delhi 3 Research Scholar, Faculty of Management Studies, Delhi 4 Research Associate, Indian School of Business 3 1 [email protected], [email protected], [email protected], [email protected]

Arvind Kumar1, Hamendra Kumar Dangi2, Rashmi3, Khimendra Singh4 1 Sr. Faculty, Department of Commerce, LSR College, University of Delhi 2 Associate Professor, Faculty of Management Studies, Delhi 3 Research Scholar, Faculty of Management Studies, Delhi 4 Research Associate, Indian School of Business 3 1 [email protected], [email protected], [email protected], [email protected]

Abstract

Abstract

Corporations, especially fortune companies, possess unique strengths and expertise. These can be leveraged to contribute towards relief initiatives during natural disasters. This study explores the creative responses of Fortune 100 companies towards a host of social, environmental, community, and infrastructure challenges arising during natural disasters. Through an analysis of information available on the websites of top Fortune 100 companies (N =100) in the US during 2013, it is found that most corporations have been engaging in disaster-related activities for social and ethical reasons. Relief and recovery activities can be short-term or long-term. Short-term activities included financial help. The longer-term initiatives encompassed a wider stakeholder group, with activities ranging from financial assistance to collaborative partnerships with public entities such as NGOs and governments. Companies also help in disaster management simply by going about their business. Recovering with nimbleness, restarting operations, and springing back agilely is often the best way to contribute to community re-building. Companies have invested in advanced technologies to aid communities in not just withstanding disasters, but also in their long-standing development. The study concludes that companies can play a key role in disaster resilience, response, and recovery.

Corporations, especially fortune companies, possess unique strengths and expertise. These can be leveraged to contribute towards relief initiatives during natural disasters. This study explores the creative responses of Fortune 100 companies towards a host of social, environmental, community, and infrastructure challenges arising during natural disasters. Through an analysis of information available on the websites of top Fortune 100 companies (N =100) in the US during 2013, it is found that most corporations have been engaging in disaster-related activities for social and ethical reasons. Relief and recovery activities can be short-term or long-term. Short-term activities included financial help. The longer-term initiatives encompassed a wider stakeholder group, with activities ranging from financial assistance to collaborative partnerships with public entities such as NGOs and governments. Companies also help in disaster management simply by going about their business. Recovering with nimbleness, restarting operations, and springing back agilely is often the best way to contribute to community re-building. Companies have invested in advanced technologies to aid communities in not just withstanding disasters, but also in their long-standing development. The study concludes that companies can play a key role in disaster resilience, response, and recovery.

Key Words: Natural Disasters, Emergency, PPP (Public Private Partnership), disaster resilience

Key Words: Natural Disasters, Emergency, PPP (Public Private Partnership), disaster resilience

1. Introduction

1. Introduction

Nature‟s fury acts as a great leveler in inflicting natural disasters. The magnitude of damage caused by such natural disasters is variable. Some geographies witness higher levels of disaster activity than others. Similarly, certain sectors of industry and business are more prone to the occurrence of natural disasters. The ability of a region or sector to cope with disasters also varies significantly. As per U.N (1992), Natural disaster has been defined as A serious disruption of the functioning of society, causing widespread human, material, or environmental losses which exceed the ability of affected society to cope using only its own resources. As per Federal Emergency Management Agency (FEMA 1990), Natural Disaster has been termed as an occurrence that has resulted in property damage, deaths, and or injuries to a community.

Nature‟s fury acts as a great leveler in inflicting natural disasters. The magnitude of damage caused by such natural disasters is variable. Some geographies witness higher levels of disaster activity than others. Similarly, certain sectors of industry and business are more prone to the occurrence of natural disasters. The ability of a region or sector to cope with disasters also varies significantly. As per U.N (1992), Natural disaster has been defined as A serious disruption of the functioning of society, causing widespread human, material, or environmental losses which exceed the ability of affected society to cope using only its own resources. As per Federal Emergency Management Agency (FEMA 1990), Natural Disaster has been termed as an occurrence that has resulted in property damage, deaths, and or injuries to a community.

Events causing a minimum 100 human deaths and/ or injuries, or at least US $1 million loss in financial terms are included under disasters(Sheehan and Hewitt in Smith, 1996). US Disaster statistics report an average annual economic loss of US $22061.05 million and 612 lives(average of five years from 2008 to 2012) due to natural disasters. Federal Emergency Management Agency (FEMA) has declared 53 major natural disasters in 2013. In a number of instances, the reported financial losses are a conservative figure as these do not include the intangible impacts of natural disasters. Natural disasters leave behind a legacy of crime and fear of crime (Brezina and Kaufman, 2008).They also cause population shifts (Smith, 1996).Political and social units (e.g. groups, churches) within a community are destroyed (Lindell and Prater, 2003) as well.

Events causing a minimum 100 human deaths and/ or injuries, or at least US $1 million loss in financial terms are included under disasters(Sheehan and Hewitt in Smith, 1996). US Disaster statistics report an average annual economic loss of US $22061.05 million and 612 lives(average of five years from 2008 to 2012) due to natural disasters. Federal Emergency Management Agency (FEMA) has declared 53 major natural disasters in 2013. In a number of instances, the reported financial losses are a conservative figure as these do not include the intangible impacts of natural disasters. Natural disasters leave behind a legacy of crime and fear of crime (Brezina and Kaufman, 2008).They also cause population shifts (Smith, 1996).Political and social units (e.g. groups, churches) within a community are destroyed (Lindell and Prater, 2003) as well.

Traditionally, governments – local, state or federal, have been entrusted with the task of managing natural disasters (Wilson and Oyola-Yemaiel, 2001). Government, at various levels, plan, respond, recover, and mitigate

Traditionally, governments – local, state or federal, have been entrusted with the task of managing natural disasters (Wilson and Oyola-Yemaiel, 2001). Government, at various levels, plan, respond, recover, and mitigate

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disasters (Congressional Report, 2005). Non-governmental involvement has been observed from private sector organizations The Homeland Security, FEMA, and US Chamber of Commerce motivate private sector enterprises to undertake emergency management in collaboration with the public sector (HSDBC, 2007). Companies and investors are responding favorably by proactively understanding and addressing environmental, social and governance issues (Kell, 2008). In order to encourage business entities to step in for helping disaster affected population, an incentivebased framework is needed. The rewards can inspire companies to adopt good Corporate Social Responsibility (CSR)practices. Holmes and Watts (2000, p. 9) define CSR as „continuing commitment by business to behave ethically and contribute to economic development, while improving the quality of life of the workforce and their families as well as the local community and society at large‟. 2.

disasters (Congressional Report, 2005). Non-governmental involvement has been observed from private sector organizations The Homeland Security, FEMA, and US Chamber of Commerce motivate private sector enterprises to undertake emergency management in collaboration with the public sector (HSDBC, 2007). Companies and investors are responding favorably by proactively understanding and addressing environmental, social and governance issues (Kell, 2008). In order to encourage business entities to step in for helping disaster affected population, an incentivebased framework is needed. The rewards can inspire companies to adopt good Corporate Social Responsibility (CSR)practices. Holmes and Watts (2000, p. 9) define CSR as „continuing commitment by business to behave ethically and contribute to economic development, while improving the quality of life of the workforce and their families as well as the local community and society at large‟.

Methodology

2.

Methodology

This study uses secondary data research methodology and performs the content analysis of such corporate actions. Different literature has been studied and reviewed in this regard. List of top 100 firms has been referred from Fortune 500 USA 2013 list, which was published by CNN Money. The list uses annual revenue ($ bn) as the primary criteria for this list. Following this, the information on each company has been collected from respective website. The annual report and CSR report for each company was considered for the analysis. These reports enable us to understand the actions taken by each of the firms in times of any natural disaster. Such action could be in terms of tangible or intangible forms. Many firms partnered with different NGOs and extended financial help to the affected people. Other firms assisted affected people during the process of resettlement and helped bring their life back to normal phase. The analysis also included review of company‟s CSR policy, association with foundations, community giving and sustainability actions.

This study uses secondary data research methodology and performs the content analysis of such corporate actions. Different literature has been studied and reviewed in this regard. List of top 100 firms has been referred from Fortune 500 USA 2013 list, which was published by CNN Money. The list uses annual revenue ($ bn) as the primary criteria for this list. Following this, the information on each company has been collected from respective website. The annual report and CSR report for each company was considered for the analysis. These reports enable us to understand the actions taken by each of the firms in times of any natural disaster. Such action could be in terms of tangible or intangible forms. Many firms partnered with different NGOs and extended financial help to the affected people. Other firms assisted affected people during the process of resettlement and helped bring their life back to normal phase. The analysis also included review of company‟s CSR policy, association with foundations, community giving and sustainability actions.

Research questions This study intends to answer following research questions: 1. What has been the role of corporate sector in times of natural disaster? 2. How top fortune 100 US companies contributed during any natural disaster? 3. What have been the common practices in coping with such unfortunate events?

Research questions This study intends to answer following research questions: 1. What has been the role of corporate sector in times of natural disaster? 2. How top fortune 100 US companies contributed during any natural disaster? 3. What have been the common practices in coping with such unfortunate events?

3.

Literature Review

3.

Literature Review

This study compares the various kinds of activities and actions undertaken by corporate during times of natural disaster. Various literatures were studied and reviewed in order to examine the intent and the role of corporate, their CSR activities and performance during such times. This study finds that most corporations responded by providing financial assistance in the form of direct cash donations or matching employee contributions. Contributions of products or services, and enhanced security measures were the most frequently provided in-kind responses. Miyaguchi, T., & Shaw, R. (2007) analyzed the various elements of the interface between corporate and surrounding community during disaster management. This exploratory study covers a number of corporate sector companies in Mumbai, India, and studies their behavior toward community and disaster management by focusing on their risk management and community involvement. Muller, A., & Whiteman, G. (2009) analyze the donation announcements made by Fortune Global 500 firms from North America, Europe and Asia during three recent disasters. Muller, A., & Kräussl, R. (2011) study the positive actions (called as „good deeds‟in this paper) taken by companies in times of need. This paper takes a strategic perspective on corporate action in times of crisis by looking at the relationship between firm value, reputation, and donations by U.S. Fortune 500 firms in the case of Hurricane Katrina. Johnson, B. R., Connolly, E., & Carter, T. S. (2011) talk about the corporate social responsibility measures initiated by the fortune 100 companies during domestic and international natural disasters. They describe how corporations engage in the response, recovery, planning, and mitigation of disasters. Companies actively engage in the disaster-related activities. Short-term relief and recovery activities were quickly executed by companies. This also included financial assistance to employee and customer stakeholder

This study compares the various kinds of activities and actions undertaken by corporate during times of natural disaster. Various literatures were studied and reviewed in order to examine the intent and the role of corporate, their CSR activities and performance during such times. This study finds that most corporations responded by providing financial assistance in the form of direct cash donations or matching employee contributions. Contributions of products or services, and enhanced security measures were the most frequently provided in-kind responses. Miyaguchi, T., & Shaw, R. (2007) analyzed the various elements of the interface between corporate and surrounding community during disaster management. This exploratory study covers a number of corporate sector companies in Mumbai, India, and studies their behavior toward community and disaster management by focusing on their risk management and community involvement. Muller, A., & Whiteman, G. (2009) analyze the donation announcements made by Fortune Global 500 firms from North America, Europe and Asia during three recent disasters. Muller, A., & Kräussl, R. (2011) study the positive actions (called as „good deeds‟in this paper) taken by companies in times of need. This paper takes a strategic perspective on corporate action in times of crisis by looking at the relationship between firm value, reputation, and donations by U.S. Fortune 500 firms in the case of Hurricane Katrina. Johnson, B. R., Connolly, E., & Carter, T. S. (2011) talk about the corporate social responsibility measures initiated by the fortune 100 companies during domestic and international natural disasters. They describe how corporations engage in the response, recovery, planning, and mitigation of disasters. Companies actively engage in the disaster-related activities. Short-term relief and recovery activities were quickly executed by companies. This also included financial assistance to employee and customer stakeholder

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groups. In the case of predictable unfortunate events, proactive long-term initiatives were planned with a broader stakeholder group, where activities ranged from financial-based forms of assistance to collaborative partnerships with NGOs and governments.

groups. In the case of predictable unfortunate events, proactive long-term initiatives were planned with a broader stakeholder group, where activities ranged from financial-based forms of assistance to collaborative partnerships with NGOs and governments.

Information / Data Collection Data collection was a multi - step process. Information was collected from relevant website of companies. Annual reports and CSR reports published by companies were referred. In addition, the relevant information was also obtained from the news sections of websites. The unit of the observation was company‟s activities which were taken up to fight against disaster. The following table provides a snapshot of the sector of companies which were reviewed.

Information / Data Collection Data collection was a multi - step process. Information was collected from relevant website of companies. Annual reports and CSR reports published by companies were referred. In addition, the relevant information was also obtained from the news sections of websites. The unit of the observation was company‟s activities which were taken up to fight against disaster. The following table provides a snapshot of the sector of companies which were reviewed.

Table 1: Sector wise breakup of Fortune 100 companies 2013

Table 1: Sector wise breakup of Fortune 100 companies 2013

SECTOR General Merchandiser Insurance (causality, health care, stock and property )

No. of companies 3

Health Care (Pharmacy and other services)

5

Petroleum Refining Computers, Software& Office Equipment Motor Vehicles and Parts Diversified Financials Telecommunications Food and Drug Stores Commercial Banks Information Technology Services

7 9 3 4 4 5 7 3

Construction and Farm Machinery Mining Chemicals Pipelines Airlines Entertainment Tobacco House Hold Mail and freight delivery

Specialty Retailers: Other

4

Semi-conductors

18

55

SECTOR Food & Beverages Aerospace and defense

No. of companies 7

SECTOR General Merchandiser Insurance (causality, health care, stock and property )

No. of companies 3

2

Health Care (Pharmacy and other services)

5

1 2 2 2 2 1 1 2

Petroleum Refining Computers, Software& Office Equipment Motor Vehicles and Parts Diversified Financials Telecommunications Food and Drug Stores Commercial Banks Information Technology Services

7 9 3 4 4 5 7 3

Construction and Farm Machinery Mining Chemicals Pipelines Airlines Entertainment Tobacco House Hold Mail and freight delivery

1

Specialty Retailers: Other

4

Semi-conductors

5

18

55

SECTOR Food & Beverages Aerospace and defense

No. of companies 7 5 2 1 2 2 2 2 1 1 2 1

Sector Wise Analysis of Fortune 100 Companies 2013

Numbers Chemicals 2 2% Numbers Aerospace and defence 5 5% Numbers Mining 1 Numbers 1%

Numbers Entertainment 2 Numbers Numbers 2% Tobacco Pipelines 1 2 Numbers 1% 2% Airlines 2 2%

Numbers House Hold 1 1%

Construction and Farm Machinary 2 2% Numbers Food & Beverages 7 7%

Numbers Mail and frieght delievary 2 2%

Numbers Semi conductors 1 1%

Numbers Commercial Banks 7 7%

Numbers Chemicals 2 2% Numbers Aerospace and defence 5 5% Numbers Mining 1 Numbers 1%

Numbers General Merchandiser 3 3%

Numbers Insurance (casulaity , health care , stock n property ) 18 18%

Numbers Specialty Retailers: Other 4 4% Numbers Information Technology Services 3 3%

Sector Wise Analysis of Fortune 100 Companies 2013

Numbers Health Care: Pharmacy and Other Services 5 5%

Numbers Petroleum Refining 7 7%

Numbers Food and Drug Stores 5 5%

Numbers Numbers Telecommunications Diversified Financials 4 4 4% 4%

General Merchandiser Health Care: Pharmacy and Other Services Computers, softaware & Office Equipment Diversified Financials Food and Drug Stores Information Technology Services Food & Beverages Construction and Farm Machinary

Numbers Computers, softaware & Office Equipment 9 9% Numbers Motor Vehicles and Parts 3 3%

Insurance (casulaity , health care , stock n property ) Petroleum Refining Motor Vehicles and Parts Telecommunications Commercial Banks Specialty Retailers: Other Aerospace and defence Mining

Numbers Entertainment 2 Numbers Numbers 2% Tobacco Pipelines 1 2 Numbers 1% 2% Airlines 2 2%

Numbers House Hold 1 1%

Construction and Farm Machinary 2 2% Numbers Food & Beverages 7 7%

Numbers Mail and frieght delievary 2 2%

Numbers Semi conductors 1 1%

Numbers General Merchandiser 3 3%

Numbers Insurance (casulaity , health care , stock n property ) 18 18%

Numbers Specialty Retailers: Other 4 4% Numbers Information Technology Services 3 3% Numbers Commercial Banks 7 7%

Numbers Health Care: Pharmacy and Other Services 5 5%

Numbers Petroleum Refining 7 7%

Numbers Food and Drug Stores 5 5%

Numbers Numbers Telecommunications Diversified Financials 4 4 4% 4%

General Merchandiser Health Care: Pharmacy and Other Services Computers, softaware & Office Equipment Diversified Financials Food and Drug Stores Information Technology Services Food & Beverages Construction and Farm Machinary

Numbers Computers, softaware & Office Equipment 9 9% Numbers Motor Vehicles and Parts 3 3%

Insurance (casulaity , health care , stock n property ) Petroleum Refining Motor Vehicles and Parts Telecommunications Commercial Banks Specialty Retailers: Other Aerospace and defence Mining

Chart 1: Sector wise analysis of fortune 100 companies in 2013

Chart 1: Sector wise analysis of fortune 100 companies in 2013

The above chart provides an overview of the sectors to which the fortune 100 companies under study belong. Maximum number (18%) of the companies were from insurance sector (including health, causality, stock and property) and minimum number of companies were from mining, tobacco, household and semiconductor(1% each) sector. 61 % companies had issued statements disclosing its activities directed towards disasters. The majority of the industries which reported to be engaging in any disaster-related activity during the period of analysis were from information and telecommunication sector. Table 2 enlists the major activities of fortune 100 corporations in

The above chart provides an overview of the sectors to which the fortune 100 companies under study belong. Maximum number (18%) of the companies were from insurance sector (including health, causality, stock and property) and minimum number of companies were from mining, tobacco, household and semiconductor(1% each) sector. 61 % companies had issued statements disclosing its activities directed towards disasters. The majority of the industries which reported to be engaging in any disaster-related activity during the period of analysis were from information and telecommunication sector. Table 2 enlists the major activities of fortune 100 corporations in

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the context of natural disasters. Analysis shows that corporate had responded immediately during such times. In addition, long term action plans were also put in place.

the context of natural disasters. Analysis shows that corporate had responded immediately during such times. In addition, long term action plans were also put in place.

Table 2: Initiatives undertaken by fortune 100 companies Term Short Term

Disaster Phase

Role of corporations / activities

Disaster Phase

Role of corporations / activities

Response and Recovery

Response and Recovery

Long term

Mitigation &preparedness

Direct cash donation Cash donations to NGO(American Red Cross/Christen Life Church/Intl ARC Company‟s Product / Service/ Resources donation(Food/infrastructure) Partnership with NGO/NPO Foundation Match Grant Volunteering by employees Information sharing/ Web App Ready reach response portal Employee match Gift Database creation for immediate relief Research & planning for disasters

Table 2: Initiatives undertaken by fortune 100 companies Term Short Term

Long term

Mitigation &preparedness

Direct cash donation Cash donations to NGO(American Red Cross/Christen Life Church/Intl ARC Company‟s Product / Service/ Resources donation(Food/infrastructure) Partnership with NGO/NPO Foundation Match Grant Volunteering by employees Information sharing/ Web App Ready reach response portal Employee match Gift Database creation for immediate relief Research & planning for disasters

Emergency Planning/Crisis Management Partnering with home land security /FEMA/BCLC (US Chamber of Commerce) Creating awareness and training program Partnering with local community and other stake holders Long term funding for disaster initiative Infrastructure development Use of corporate expertise in disasters

Emergency Planning/Crisis Management Partnering with home land security /FEMA/BCLC (US Chamber of Commerce) Creating awareness and training program Partnering with local community and other stake holders Long term funding for disaster initiative Infrastructure development Use of corporate expertise in disasters

.

.

Table 2 shows various activities which were taken up by corporate during disaster phases. Wal-Mart donated $1 million in cash and kind for Oklahoma May in 2013. General Motors‟ also donated $50,000 for Oklahoma May in 2013 through its foundation. UPS reported funding for disaster preparedness & resiliency, and donated $550,000 cash in support of Oklahoma 2013. UPS also volunteered to manage the post-crisis situation. The company partnered with FEMA for logistics directorate. FedEx reported active emergency service response and supplies of electricity generators in New York Sandy 2012. Verizon communication worked with Home Land Security for emergency communication and prepared disaster relief and recovery programs. P& G reported product donation and employee donation for hurricane sandy 2012 in Louisiana. Home Depot donated $50,000 to team Rubicon for tornado in the Mid-West 2013.

Table 2 shows various activities which were taken up by corporate during disaster phases. Wal-Mart donated $1 million in cash and kind for Oklahoma May in 2013. General Motors‟ also donated $50,000 for Oklahoma May in 2013 through its foundation. UPS reported funding for disaster preparedness & resiliency, and donated $550,000 cash in support of Oklahoma 2013. UPS also volunteered to manage the post-crisis situation. The company partnered with FEMA for logistics directorate. FedEx reported active emergency service response and supplies of electricity generators in New York Sandy 2012. Verizon communication worked with Home Land Security for emergency communication and prepared disaster relief and recovery programs. P& G reported product donation and employee donation for hurricane sandy 2012 in Louisiana. Home Depot donated $50,000 to team Rubicon for tornado in the Mid-West 2013.

Microsoft designed Ready Reach response portal for the East Coast storms in 2012. The company also donated $2.5 million, and popularized the slogan “be safe, be informed and be connected”. Microsoft donated 250 laptops to humanitarian field workers to share information & coordinate relief efforts. Pepsi co-donated $ 1.3 million to Red Cross and 30truckloads of food for victims of hurricane Sandy 2012. Liberty MIG created a catastrophe center. All State worked for natural catastrophe preparedness. Cash donations were given to Non-profit organizations such as American Red Cross, Operation Home Front, world vision, the united way, Mayors fund, American National Red Cross, The Feeding America, The salvation army , American red cross disaster relief fund. Tables3.1, 3.2 and 3.3 give an analysis of corporate contributions for natural disasters of 2013 in the US.

Microsoft designed Ready Reach response portal for the East Coast storms in 2012. The company also donated $2.5 million, and popularized the slogan “be safe, be informed and be connected”. Microsoft donated 250 laptops to humanitarian field workers to share information & coordinate relief efforts. Pepsi co-donated $ 1.3 million to Red Cross and 30truckloads of food for victims of hurricane Sandy 2012. Liberty MIG created a catastrophe center. All State worked for natural catastrophe preparedness. Cash donations were given to Non-profit organizations such as American Red Cross, Operation Home Front, world vision, the united way, Mayors fund, American National Red Cross, The Feeding America, The salvation army , American red cross disaster relief fund. Tables3.1, 3.2 and 3.3 give an analysis of corporate contributions for natural disasters of 2013 in the US.

During Colorado Flooding (September 2013), Companies had employed their expertise, capabilities, and resources to provide assistance during the unfortunate situation of Colorado flooding in 2013. Businesses have pledged $1.3 million in cash. Additionally, in-kind contributions were made in support of relief and recovery efforts.

During Colorado Flooding (September 2013), Companies had employed their expertise, capabilities, and resources to provide assistance during the unfortunate situation of Colorado flooding in 2013. Businesses have pledged $1.3 million in cash. Additionally, in-kind contributions were made in support of relief and recovery efforts.

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Table 3.1: Fortune 100 companies‟ contribution during Colorado Flooding in Sep2013 S. No. 1 2

Company CVS Caremark JP Morgan Chase

Cash $10,000 $50,000

Foundation Y -

3

Verizon

$25,000 $20,000

Y

Foothills United Way. ARC

4

Wells Fargo

$100,000 $30,000

-

ARC the Salvation Army

$20,000 $255,000

-

Foothills Relief Fund -

Total (04 fortune companies)

Table 3.1: Fortune 100 companies‟ contribution during Colorado Flooding in Sep2013

Partnering /Remarks

S. No. 1 2

ARC

Company CVS Caremark JP Morgan Chase

Cash $10,000 $50,000

Foundation Y -

3

Verizon

$25,000 $20,000

Y

Foothills United Way. ARC

4

Wells Fargo

$100,000 $30,000

-

ARC the Salvation Army

$20,000 $255,000

-

Foothills Relief Fund -

Total (04 fortune companies)

Partnering /Remarks ARC

During Arizona Wildfire (July 2013), companies pledged almost $1 million in support of relief and recovery efforts.

During Arizona Wildfire (July 2013), companies pledged almost $1 million in support of relief and recovery efforts.

Table 3.2: Fortune 100 companies‟ contribution for Arizona Wildfire in July 2013

Table 3.2: Fortune 100 companies‟ contribution for Arizona Wildfire in July 2013

SN 1

Company Bank of America

Cash $65,000

Foundation -

2

CVS Caremark Charitable Trust Do Verizon Wireless Wells Fargo

$10,000 $10,000 $25,000 $65,000

Y Y -

Total 04 fortune companies

$175,000

-

3 4

Partnering / Remarks Yarnell Emergency Fire Fund at the United Way of Yavapai County. 100 Club 100 Club Arizona‟s survivor fund Red Cross Grand Canyon Chapter & 100 Club of Arizona‟s Survivor Fund. -

SN 1

Company Bank of America

Cash $65,000

Foundation -

2

CVS Caremark Charitable Trust Do Verizon Wireless Wells Fargo

$10,000 $10,000 $25,000 $65,000

Y Y -

Total 04 fortune companies

$175,000

-

3 4

Partnering / Remarks Yarnell Emergency Fire Fund at the United Way of Yavapai County. 100 Club 100 Club Arizona‟s survivor fund Red Cross Grand Canyon Chapter & 100 Club of Arizona‟s Survivor Fund. -

During and post Oklahoma Tornadoes (May 2013), Companies pledged more than $31.3 million in support of relief and recovery efforts. Following table presents the same:

During and post Oklahoma Tornadoes (May 2013), Companies pledged more than $31.3 million in support of relief and recovery efforts. Following table presents the same:

Table 3.3: Fortune 100 Companies‟ contribution for Oklahoma Tornadoes in May 2013

Table 3.3: Fortune 100 Companies‟ contribution for Oklahoma Tornadoes in May 2013

S. No. 1

Company Abbott

2

Allstate

3 4

Archer Daniels AT&T

5 6 7 8 9 10

Bank of America Best Buy Chevron Cisco Systems ConocoPhillips CVS Caremark

11 SN 12 13

ExxonMobil Company Ford Motor General Motors

Cash -

Foundation -

$25,000 $25,000 $50,000 $100,000

-

$500,000 $500,000 $50,000 $1 million $25,000 $25,000. $500,000 Cash $400,000 $500,000

Y Y Y Y Foundation Y

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Partnering / Remarks AmeriCorps, Direct Relief, Feeding America and MAP International the American Red Cross American Red Cross waive overage charges for impacted customers through June 30 The American Red Cross. United Way donate products and Geek Squad services American Red Cross US Disaster Relief, ARC, American Red Cross American Red Cross Red Cross American Red Cross Partnering / Remarks Ford Transit Connect van to ARC -

S. No. 1

Company Abbott

2

Allstate

3 4

Archer Daniels AT&T

5 6 7 8 9 10

Bank of America Best Buy Chevron Cisco Systems ConocoPhillips CVS Caremark

11 SN 12 13

ExxonMobil Company Ford Motor General Motors

Cash -

Foundation -

$25,000 $25,000 $50,000 $100,000

-

$500,000 $500,000 $50,000 $1 million $25,000 $25,000. $500,000 Cash $400,000 $500,000

Y Y Y Y Foundation Y

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Partnering / Remarks AmeriCorps, Direct Relief, Feeding America and MAP International the American Red Cross American Red Cross waive overage charges for impacted customers through June 30 The American Red Cross. United Way donate products and Geek Squad services American Red Cross US Disaster Relief, ARC, American Red Cross American Red Cross Red Cross American Red Cross Partnering / Remarks Ford Transit Connect van to ARC -

14

Home Depot

15 16 17

Intel Johnson Controls JPMorgan

18 19 20 21 22

Kroger Lowe's MassMutual Morgan Stanley New York Life Insurance Pfizer Phillips 66 Procter & Gamble Sprint Target UnitedHealth UPS Valero Energy Verizon Communications Walgreen Wal-Mart Wells Fargo Total

23 24 25 26 27 28 29 30 31 32 33 34

$50,000 $1 million $20,000 $5,000 1:1 match $100,000 $500,000

$50,000 $1 million $100,000 $50,000 $100,000

Y Y Y Y Y World Vision -

Help 4 Oklahoma

$1 million $250,000 $250,000 $100,000 $100,000

Y Y

Medicine Replaced American Red Cross 10,000 pounds of Duracell Waived service charge ARC, Salvation Army, Product, assisting health plan ARC ARC ARC

23 24 25 26 27 28 29 30 31

$1 million $100,000 $9,452,500

-

3 semi-trailers of food , Water Water & food ARC -

32 33 34

14 Feed The Children Central Oklahoma Humane Society OK Strong Disaster Relief Fund American Red Cross, Convey of Hope, United Way of Central Oklahoma customer donations national nonprofit partners Matching Gift Program American Red Cross American Red Cross &

In a public private partnership, Wal-Mart launched US‟ first fully operational business emergency operations center (BEOC). BEOC functions as a platform for private sector industries and business including retail, to communicate, collaborate and coordinate with government during any natural disaster. Various educational programs were also identified. Intel offers fast weather alert services. Google designed public alerts and crisis map for Oklahoma tornadoes .Google and Verizon worked in partnership for natural disaster management. Honeywell believes that business expertise can be used in natural disaster. The company also has emergency preparedness programs at company level. Information technology and telecommunication companies have been helping disaster affected communities in communications. Caterpillar provided its assistance in large scale clean up efforts post natural disaster in Oklahoma City. It provided the needed funds, equipment, training and leadership. 4.

Discussion

Home Depot

15 16 17

Intel Johnson Controls JPMorgan

18 19 20 21 22

Kroger Lowe's MassMutual Morgan Stanley New York Life Insurance Pfizer Phillips 66 Procter & Gamble Sprint Target UnitedHealth UPS Valero Energy Verizon Communications Walgreen Wal-Mart Wells Fargo Total

$50,000 $1 million $20,000 $5,000 1:1 match $100,000 $500,000

$50,000 $1 million $100,000 $50,000 $100,000

Y Y Y Y Y World Vision -

Help 4 Oklahoma

$1 million $250,000 $250,000 $100,000 $100,000

Y Y

Medicine Replaced American Red Cross 10,000 pounds of Duracell Waived service charge ARC, Salvation Army, Product, assisting health plan ARC ARC ARC

$1 million $100,000 $9,452,500

-

3 semi-trailers of food , Water Water & food ARC -

Feed The Children Central Oklahoma Humane Society OK Strong Disaster Relief Fund American Red Cross, Convey of Hope, United Way of Central Oklahoma customer donations national nonprofit partners Matching Gift Program American Red Cross American Red Cross &

In a public private partnership, Wal-Mart launched US‟ first fully operational business emergency operations center (BEOC). BEOC functions as a platform for private sector industries and business including retail, to communicate, collaborate and coordinate with government during any natural disaster. Various educational programs were also identified. Intel offers fast weather alert services. Google designed public alerts and crisis map for Oklahoma tornadoes .Google and Verizon worked in partnership for natural disaster management. Honeywell believes that business expertise can be used in natural disaster. The company also has emergency preparedness programs at company level. Information technology and telecommunication companies have been helping disaster affected communities in communications. Caterpillar provided its assistance in large scale clean up efforts post natural disaster in Oklahoma City. It provided the needed funds, equipment, training and leadership. 4.

Discussion

The study discovered that 61% of the corporations which have been analyzed in the study have been playing significant role during such distress times. Corporate initiatives aimed at immediate disaster relief were identified. It was observed that corporate were performing even after disaster took place. For a few of the organizations, however, it was a one-time intervention. In the context of planning & mitigation, some long-term disaster management activities were initiated. For example, Phillips 66 had created a plan chart for the time of disaster. They classified plan into five phases:(1) Do it now, (2) As disaster approaches (3) If you evacuate (4) If you stay at home (5) After disaster. Companies educated the public about disaster supply kits of clothing, bedding, sanitation, food, tools and supplies, safety documents, special need items, etc. These activities appear to be driven by the divisions of corporate bodies dealing with external task environment. The study found that the chief beneficiaries

The study discovered that 61% of the corporations which have been analyzed in the study have been playing significant role during such distress times. Corporate initiatives aimed at immediate disaster relief were identified. It was observed that corporate were performing even after disaster took place. For a few of the organizations, however, it was a one-time intervention. In the context of planning & mitigation, some long-term disaster management activities were initiated. For example, Phillips 66 had created a plan chart for the time of disaster. They classified plan into five phases:(1) Do it now, (2) As disaster approaches (3) If you evacuate (4) If you stay at home (5) After disaster. Companies educated the public about disaster supply kits of clothing, bedding, sanitation, food, tools and supplies, safety documents, special need items, etc. These activities appear to be driven by the divisions of corporate bodies dealing with external task environment. The study found that the chief beneficiaries

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of these activities are communities. Volunteering companies also benefit through these initiatives. Affected communities could also be seen as prospective customers during normal situations in disaster-affected regions. The companies, though, should first ensure the well-being and safety of their own employees in order to maintain the business continuity.

of these activities are communities. Volunteering companies also benefit through these initiatives. Affected communities could also be seen as prospective customers during normal situations in disaster-affected regions. The companies, though, should first ensure the well-being and safety of their own employees in order to maintain the business continuity.

One of the objectives of the study is to know how corporations respond during such times. It was found that various support mechanisms were used. Cash and in-kind donations were common practices of corporations. In-kind donations included food, snacks, beverages, equipment, safety-gears, etc. Corporations also partnered with nonprofit organizations in the US. The role played by a corporation is decided by disaster type and the location. It is easier for companies to send their employees to close-by regions. Immediate activities are spontaneous and ad-hoc in nature. Deployment of employees to disaster affected region is indeed a rapid response strategy. Study also intends to explore the motives behind disaster related activities. It is very clear from the reports of fortune 100 companies that these activities are based on business needs, such as continuity of business, reach among customer and ethical need for humanitarian purpose or Corporate Social Responsibility. Immediate response to disasters ensures a quicker return to normal life in affected regions where corporations could have a potential market for their business. These activities are very helpful for earning goodwill. It is also evident that many companies are involved in risk reduction strategies, such as spreading awareness about natural disasters. For example, AT&T works with an emergency plan and provides emergency alerts, while State FI Companies provide tips to take certain actions during hurricanes. TIAA CREF worked for financial preparedness before disaster.

One of the objectives of the study is to know how corporations respond during such times. It was found that various support mechanisms were used. Cash and in-kind donations were common practices of corporations. In-kind donations included food, snacks, beverages, equipment, safety-gears, etc. Corporations also partnered with nonprofit organizations in the US. The role played by a corporation is decided by disaster type and the location. It is easier for companies to send their employees to close-by regions. Immediate activities are spontaneous and ad-hoc in nature. Deployment of employees to disaster affected region is indeed a rapid response strategy. Study also intends to explore the motives behind disaster related activities. It is very clear from the reports of fortune 100 companies that these activities are based on business needs, such as continuity of business, reach among customer and ethical need for humanitarian purpose or Corporate Social Responsibility. Immediate response to disasters ensures a quicker return to normal life in affected regions where corporations could have a potential market for their business. These activities are very helpful for earning goodwill. It is also evident that many companies are involved in risk reduction strategies, such as spreading awareness about natural disasters. For example, AT&T works with an emergency plan and provides emergency alerts, while State FI Companies provide tips to take certain actions during hurricanes. TIAA CREF worked for financial preparedness before disaster.

5. Conclusion It is found that corporations play an important role in terms of resources, administrative skills and risk reduction strategies. Although few companies already work in partnership with Non-Profit organizations, FEMA, BCLC of US Chamber of commerce, the corporate sector should further partner with the federal government, local companies and the community at large, on a wider scale, in order to foster cooperation. Corporations should have policies outlining community-giving and social responsibility for enhancement of corporate participation in natural disasters. It is the need of the hour that corporations should mandate, facilitate, partner and endorse initiatives for addressing issues pertaining to natural disasters. A need assessment has to be done by the companies to develop comprehensive plans for disaster response and mitigation. Time has come when corporate expertise in preparedness, public private partnerships logistics, Information Technology, Insurance, Infrastructure and other functions is used for natural disasters not only in the United States but across the globe.

5. Conclusion It is found that corporations play an important role in terms of resources, administrative skills and risk reduction strategies. Although few companies already work in partnership with Non-Profit organizations, FEMA, BCLC of US Chamber of commerce, the corporate sector should further partner with the federal government, local companies and the community at large, on a wider scale, in order to foster cooperation. Corporations should have policies outlining community-giving and social responsibility for enhancement of corporate participation in natural disasters. It is the need of the hour that corporations should mandate, facilitate, partner and endorse initiatives for addressing issues pertaining to natural disasters. A need assessment has to be done by the companies to develop comprehensive plans for disaster response and mitigation. Time has come when corporate expertise in preparedness, public private partnerships logistics, Information Technology, Insurance, Infrastructure and other functions is used for natural disasters not only in the United States but across the globe.

6. Limitations Though the study tries to weave various elements together, it also has few limitations which are as following: 1. It analyses only top 100 fortune companies of 2013 (listed by CNN money). A study extended to cover all the 500 fortune companies would give a better reflection of the state-of-affairs. 2. Data was considered only for the last five years i.e., 2009- 2013. Consideration of the dataset ranging over the extended time period would add more insights to the analysis. 3. This study covers initiatives of only the companies conducting business in the US. Study of the disaster management activities of these companies was also limited to the US.

6. Limitations Though the study tries to weave various elements together, it also has few limitations which are as following: 1. It analyses only top 100 fortune companies of 2013 (listed by CNN money). A study extended to cover all the 500 fortune companies would give a better reflection of the state-of-affairs. 2. Data was considered only for the last five years i.e., 2009- 2013. Consideration of the dataset ranging over the extended time period would add more insights to the analysis. 3. This study covers initiatives of only the companies conducting business in the US. Study of the disaster management activities of these companies was also limited to the US.

7. References A Business Civic Leadership Report 2012 Abbott Laboratories Aetna

7. References

http://www.abbott.com/citizenship/culture/community.html

A Business Civic Leadership Report 2012 Abbott Laboratories

http://www.aetna.com/about-aetna-insurance/aetna-corporate-

Aetna

The Role of Business in Disaster Response

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The Role of Business in Disaster Response http://www.abbott.com/citizenship/culture/community.html http://www.aetna.com/about-aetna-insurance/aetna-corporate-

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http://about.americanexpress.com/csr/disaster-relief.aspx http://www.aig.com/citizenship_3171_437858.html http://www.att.com/gen/general?pid=12218&RIAConsoleLogLevel=4000&addres s_id= Corporate social responsibility and natural disaster reduction: Local overview of Gujarat,.Disaster Mitigation http://www.boeing.com/boeing/companyoffices/aboutus/community/disaster_respo nse.page Corporate Social Responsibility and Environmental Management Corp. Soc. Responsib. Environ. Mgmt. 18, 352–369 (2011) http://www.caterpillar.com/cda/layout?m=412995&x=7&id=4416166 http://chsinc.mediaroom.com/2013-10-16-CHS-Foundation-contributes-100-000to-South-Dakota-blizzard-relief http://csr.cisco.com/pages/critical-human-needs http://www.coca-colacompany.com/stories/disaster-relief-recovery http://www.conocophillips.com/newsroom/pages/newsreleases.aspx?docid=1907737 http://www.dow.com/company/citizenship/relief.htm http://corporate.exxonmobil.com/en/environment/emergencypreparedness/tropical-weather-preparedness http://about.van.fedex.com/disaster-readiness-relief-and-recovery Declared disasters by year or state. Available at: www.fema.gov. [25 January 2009] http://money.cnn.com/magazines/fortune/fortune500/2013/full_list/ http://www.freddiemac.com/corporate/communities/home_preservation.html Essentials in emergency management: Including the all-hazards approach. Government Institute: Lanham, MA http://www.gefoundation.com/disaster-relief/ http://www.google.org/crisisresponse/resources.html Lessons learned in dealing with large-scale disasters. Insurance and Risk Management 73: 79–88. http://investor.shareholder.com/jpmorganchase/releasedetail.cfm?ReleaseID=7930 47 http://www.jnj.com/sites/default/files/pdf/a-legacy-of-disaster-relief.pdf Assessing community impacts of natural disasters. Natural Hazards Review 4: 176–185, DOI: 10.1061/(ASCE)1527-6988(2003)4:4(176 http://responsibility.lowes.com/community/our-stories/helping-communities-aftersandy/ http://www.microsoft.com/about/corporatecitizenship/en-us/servingcommunities/disaster-and-humanitarian-response/response-efforts/

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profile/community.html http://www.allstate.com/corporate-responsibility/social-impact/natural-catastrophepreparedness.aspx http://www.amazon.com/b/ref=gw_m_b_ourcomm?ie=UTF8&node=13786411

http://about.americanexpress.com/csr/disaster-relief.aspx http://www.aig.com/citizenship_3171_437858.html http://www.att.com/gen/general?pid=12218&RIAConsoleLogLevel=4000&addres s_id= Corporate social responsibility and natural disaster reduction: Local overview of Gujarat,.Disaster Mitigation http://www.boeing.com/boeing/companyoffices/aboutus/community/disaster_respo nse.page Corporate Social Responsibility and Environmental Management Corp. Soc. Responsib. Environ. Mgmt. 18, 352–369 (2011) http://www.caterpillar.com/cda/layout?m=412995&x=7&id=4416166 http://chsinc.mediaroom.com/2013-10-16-CHS-Foundation-contributes-100-000to-South-Dakota-blizzard-relief http://csr.cisco.com/pages/critical-human-needs http://www.coca-colacompany.com/stories/disaster-relief-recovery http://www.conocophillips.com/newsroom/pages/newsreleases.aspx?docid=1907737 http://www.dow.com/company/citizenship/relief.htm http://corporate.exxonmobil.com/en/environment/emergencypreparedness/tropical-weather-preparedness http://about.van.fedex.com/disaster-readiness-relief-and-recovery Declared disasters by year or state. Available at: www.fema.gov. [25 January 2009] http://money.cnn.com/magazines/fortune/fortune500/2013/full_list/ http://www.freddiemac.com/corporate/communities/home_preservation.html Essentials in emergency management: Including the all-hazards approach. Government Institute: Lanham, MA http://www.gefoundation.com/disaster-relief/ http://www.google.org/crisisresponse/resources.html Lessons learned in dealing with large-scale disasters. Insurance and Risk Management 73: 79–88. http://investor.shareholder.com/jpmorganchase/releasedetail.cfm?ReleaseID=7930 47 http://www.jnj.com/sites/default/files/pdf/a-legacy-of-disaster-relief.pdf Assessing community impacts of natural disasters. Natural Hazards Review 4: 176–185, DOI: 10.1061/(ASCE)1527-6988(2003)4:4(176 http://responsibility.lowes.com/community/our-stories/helping-communities-aftersandy/ http://www.microsoft.com/about/corporatecitizenship/en-us/servingcommunities/disaster-and-humanitarian-response/response-efforts/

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Nationwide PepsiCo Phillips 66 Procter & Gamble Roberts PS. 2006. Saraswat SP, Williams CB. 2002. Smith SK. 1996. Sprint Nextel State Farm Insurance Cos. Taneja S, Taneja PK, Gupta RK (2011) Tyson Foods United Parcel Service Wal-Mart Stores Ward S. 2001. Waugh WL, Streib G. 2006. WellPoint

http://www.nationwide.com/about-us/american-red-cross.jsp http://www.pepsico.com/Purpose/Global-Citizenship/Disaster-Relief-andHumanitarian-Support http://www.phillips66.com/EN/susdev/safety/crisis/Pages/index.aspx http://www.pg.com/en_US/sustainability/social_responsibility/comforts_of_home/ disaster_relief.shtml FEMA after Katrina. Policy Review 137: 15–33. Charity begins at home: A socio-technical analysis of corporate websites to study the response to disaster, September11. Computers and Society 32: 4–15, DOI: 10.1145/511134.511136 Demography of disaster: Population estimates after hurricane Andrew. Population Research and Policy Review 15:459–477. http://www.sprint.com/responsibility/ourcommunities/disaster_response.html http://www.statefarm.com/aboutus/disaster/disaster.asp Researches in Corporate Social Responsibility: A Review of Shifting Focus, Paradigms, and Methodologies, J. Business Ethics. (DOI 10.1007/s10551 http://www.tysonfoods.com/Ways-We-Care/Giving-Back/Disaster-Relief.aspx http://www.responsibility.ups.com/UPS+Foundation/Humanitarian+Relief http://corporate.walmart.com/microsites/global-responsibility-report2013/disasterRelief.aspx Exploring the role of the corporate risk manager. Risk Management 3: 7–25, DOI: 10.1057/palgrave.rm.8240073 Collaboration and leadership for effective emergency management. Public administration review 66: 131–140, DOI: www.wellpointcorporateresponsibility.com/cr/disaster_relief.html

Author’s Profile

Nationwide PepsiCo Phillips 66 Procter & Gamble Roberts PS. 2006. Saraswat SP, Williams CB. 2002. Smith SK. 1996. Sprint Nextel State Farm Insurance Cos. Taneja S, Taneja PK, Gupta RK (2011) Tyson Foods United Parcel Service Wal-Mart Stores Ward S. 2001. Waugh WL, Streib G. 2006. WellPoint

http://www.nationwide.com/about-us/american-red-cross.jsp http://www.pepsico.com/Purpose/Global-Citizenship/Disaster-Relief-andHumanitarian-Support http://www.phillips66.com/EN/susdev/safety/crisis/Pages/index.aspx http://www.pg.com/en_US/sustainability/social_responsibility/comforts_of_home/ disaster_relief.shtml FEMA after Katrina. Policy Review 137: 15–33. Charity begins at home: A socio-technical analysis of corporate websites to study the response to disaster, September11. Computers and Society 32: 4–15, DOI: 10.1145/511134.511136 Demography of disaster: Population estimates after hurricane Andrew. Population Research and Policy Review 15:459–477. http://www.sprint.com/responsibility/ourcommunities/disaster_response.html http://www.statefarm.com/aboutus/disaster/disaster.asp Researches in Corporate Social Responsibility: A Review of Shifting Focus, Paradigms, and Methodologies, J. Business Ethics. (DOI 10.1007/s10551 http://www.tysonfoods.com/Ways-We-Care/Giving-Back/Disaster-Relief.aspx http://www.responsibility.ups.com/UPS+Foundation/Humanitarian+Relief http://corporate.walmart.com/microsites/global-responsibility-report2013/disasterRelief.aspx Exploring the role of the corporate risk manager. Risk Management 3: 7–25, DOI: 10.1057/palgrave.rm.8240073 Collaboration and leadership for effective emergency management. Public administration review 66: 131–140, DOI: www.wellpointcorporateresponsibility.com/cr/disaster_relief.html

Author’s Profile

Dr. Arvind Kumar is Sr. Faculty in the department of Commerce , Lady Shri Ram College , Delhi. He completed his Master of Business Management in 1999. He has done his Ph.D. from D.E.I. , Agra. He is certified Entrepreneur Educator from Stanford University, USA. He completed his post doctoral research studies from USA in 2014. His research interests are CSR, Disaster management, Entrepreneurship and institute industry interface.

Dr. Arvind Kumar is Sr. Faculty in the department of Commerce , Lady Shri Ram College , Delhi. He completed his Master of Business Management in 1999. He has done his Ph.D. from D.E.I. , Agra. He is certified Entrepreneur Educator from Stanford University, USA. He completed his post doctoral research studies from USA in 2014. His research interests are CSR, Disaster management, Entrepreneurship and institute industry interface.

Hamendra Dangi is an Assistant Professor of Marketing at Faculty of Management Studies, Delhi. Previously he has taught at the School of Management of GGS IP University, Delhi India. He completed his bachelor education in 2001 and MBA in 2004. He has done PhD in Disaster relief chain from Faculty of Management Studies, Delhi. His research interests are disaster supply chains, analytical marketing and marketing channels.

Hamendra Dangi is an Assistant Professor of Marketing at Faculty of Management Studies, Delhi. Previously he has taught at the School of Management of GGS IP University, Delhi India. He completed his bachelor education in 2001 and MBA in 2004. He has done PhD in Disaster relief chain from Faculty of Management Studies, Delhi. His research interests are disaster supply chains, analytical marketing and marketing channels.

Khimendra Singh is a Research Associate at Indian School of Business, Hyderabad. He completed his B. Tech. from Indian Institute of Technology Madras (IIT Madras) in 2009 and MBA from ESSEC Business School, France in 2013. He has also attended The University of Chicago Booth School of Business on an international MBA exchange program.

Khimendra Singh is a Research Associate at Indian School of Business, Hyderabad. He completed his B. Tech. from Indian Institute of Technology Madras (IIT Madras) in 2009 and MBA from ESSEC Business School, France in 2013. He has also attended The University of Chicago Booth School of Business on an international MBA exchange program.

Rashmi is a Research Scholar at the Faculty of Management Studies (University of Delhi), Delhi. She completed her B. E. from Delhi College of Engineering (DCE), University of Delhi, in 2010 and MBA from Indian Institute of Management (IIM) Kozhikode in 2013. She has also attended Leipzig Graduate School of Management, Germany on an international MBA exchange program. She has worked with Deloitte Consulting, Hindustan Unilever Limited and HCL Technologies.

Rashmi is a Research Scholar at the Faculty of Management Studies (University of Delhi), Delhi. She completed her B. E. from Delhi College of Engineering (DCE), University of Delhi, in 2010 and MBA from Indian Institute of Management (IIM) Kozhikode in 2013. She has also attended Leipzig Graduate School of Management, Germany on an international MBA exchange program. She has worked with Deloitte Consulting, Hindustan Unilever Limited and HCL Technologies.

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Section 2

Section 2

Case Studies on CSR & Sustainable Development

Case Studies on CSR & Sustainable Development

Qualitative Evaluation of Shell’s Corporate Social Responsibility and Its Sustainability in the Host Communities in Niger Delta Region. Jemimah Timothy Ekanem1 , Ike Nwachukwu2 Department of Agricultural Economics and Extension, Faculty of Agriculture, Akwa Ibom State University, Obio Akpa, Akwa Ibom State, Nigeria. 2 Department of Rural Sociology and Agricultural Extension, Michael Okpara University of Agriculture, Umudike, Umuahia, Abia State, Nigeria. 1 [email protected], [email protected].

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Qualitative Evaluation of Shell’s Corporate Social Responsibility and Its Sustainability in the Host Communities in Niger Delta Region. Jemimah Timothy Ekanem1 , Ike Nwachukwu2 Department of Agricultural Economics and Extension, Faculty of Agriculture, Akwa Ibom State University, Obio Akpa, Akwa Ibom State, Nigeria. 2 Department of Rural Sociology and Agricultural Extension, Michael Okpara University of Agriculture, Umudike, Umuahia, Abia State, Nigeria. 1 [email protected], [email protected].

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Abstract

Abstract

The evaluation critically reviews the executed community Agricultural projects for their relevance, design/strategy, outcome/impact and sustainability. A participatory approach and interviews with focused group discussions (FGD) were used for data collection. Data from the qualitative component of the instrument were interpreted in such a way to provide essential evidence for making appropriate evaluation judgment. This level of evidence was complemented with field observation, critical assessment of responses from beneficiaries and value judgment of the researcher. The findings show that projects were relevant in context but not in the design. Sustainability was noted to be a very outstanding factor that affected the project outcome. Socio cultural factors, inadequate capacity building, poor monitoring were some of the factors that affected the success of the projects. The recommendations are that, proper engagement of the community people in change projects, detailed business literacy training (BLT) and proper monitoring in addition to proper funding are needed for overall success of Shell’s CSR.

The evaluation critically reviews the executed community Agricultural projects for their relevance, design/strategy, outcome/impact and sustainability. A participatory approach and interviews with focused group discussions (FGD) were used for data collection. Data from the qualitative component of the instrument were interpreted in such a way to provide essential evidence for making appropriate evaluation judgment. This level of evidence was complemented with field observation, critical assessment of responses from beneficiaries and value judgment of the researcher. The findings show that projects were relevant in context but not in the design. Sustainability was noted to be a very outstanding factor that affected the project outcome. Socio cultural factors, inadequate capacity building, poor monitoring were some of the factors that affected the success of the projects. The recommendations are that, proper engagement of the community people in change projects, detailed business literacy training (BLT) and proper monitoring in addition to proper funding are needed for overall success of Shell’s CSR.

Keywords: CSR, Shell, Niger Delta Region

Keywords: CSR, Shell, Niger Delta Region

1. Introduction

1. Introduction

Corporate Social Responsibility(CSR) as defined by Blowfield and Frynas (2005) is an umbrella term that recognizes a lot of practices and theories, these are that; companies have a responsibility for their impact on society and the natural environment, sometimes beyond legal compliance and the liability of individuals; companies have a responsibility for the behavior of others with whom they do business (e.g. within supply chains); and business needs to manage its relationship with wider society, whether for reasons of commercial feasibility, or to add value for the society. Maignan and Ferrell (2001) sees CSR as a citizenship function with responsibilities that span from social, ethical to moral among companies and its customers. CSR is the responsibility of an organization for the impacts of its decisions and activities on society, the environment and its own prosperity. It refers to a business practice that involves participating in initiatives that benefit society while also taking from the society.

Corporate Social Responsibility(CSR) as defined by Blowfield and Frynas (2005) is an umbrella term that recognizes a lot of practices and theories, these are that; companies have a responsibility for their impact on society and the natural environment, sometimes beyond legal compliance and the liability of individuals; companies have a responsibility for the behavior of others with whom they do business (e.g. within supply chains); and business needs to manage its relationship with wider society, whether for reasons of commercial feasibility, or to add value for the society. Maignan and Ferrell (2001) sees CSR as a citizenship function with responsibilities that span from social, ethical to moral among companies and its customers. CSR is the responsibility of an organization for the impacts of its decisions and activities on society, the environment and its own prosperity. It refers to a business practice that involves participating in initiatives that benefit society while also taking from the society.

Multinational oil companies have had their presence in the Niger Delta region because of the presence of oil. Oil exploration has affected the people of Niger Delta Region in terms of environmental pollution and livelihood exploitation. Corporate Social Responsibility by the companies is geared towards provision of alternative means of livelihood to cushion the negative effect. Shell is one of the leading oil drilling companies in the region and its CSR target was on empowering communities with alternative means of livelihood. It has attempted to establish its presence in most of her host communities in the Niger Delta both in Western and Eastern Divisions. This is seen by the establishment of several projects (interventions) ranging from infrastructural (electricity, good roads, water, education), human Capacity development (scholarship), economic empowerment (micro credit, agricultural projects) to Community health. Community survey carried out in 2003 revealed that SPDC accounted for 49% of community projects in the Eastern division and 60% in the Western division of its operations (SPDC, 2004a).Where Shell activities affected the livelihood of some members of the communities, there will be a mitigation effect adopted and an alternative source of income will be proposed to the communities through community representatives. It is on records that SPDC has committed much in an attempt to solving the pervasive problem of the Niger Delta people. The spending profile of SPDC from 1998 to 2008 shows that $43million was spent in 1998, $54million in 1999, $60.23million in 2000, $52million in 2001, $66.9m in 2002, $25m in 2003, $20m in 2004, $40m in 2005, $60m in 2006, $70m in 2007 and $80m in 2008

Multinational oil companies have had their presence in the Niger Delta region because of the presence of oil. Oil exploration has affected the people of Niger Delta Region in terms of environmental pollution and livelihood exploitation. Corporate Social Responsibility by the companies is geared towards provision of alternative means of livelihood to cushion the negative effect. Shell is one of the leading oil drilling companies in the region and its CSR target was on empowering communities with alternative means of livelihood. It has attempted to establish its presence in most of her host communities in the Niger Delta both in Western and Eastern Divisions. This is seen by the establishment of several projects (interventions) ranging from infrastructural (electricity, good roads, water, education), human Capacity development (scholarship), economic empowerment (micro credit, agricultural projects) to Community health. Community survey carried out in 2003 revealed that SPDC accounted for 49% of community projects in the Eastern division and 60% in the Western division of its operations (SPDC, 2004a).Where Shell activities affected the livelihood of some members of the communities, there will be a mitigation effect adopted and an alternative source of income will be proposed to the communities through community representatives. It is on records that SPDC has committed much in an attempt to solving the pervasive problem of the Niger Delta people. The spending profile of SPDC from 1998 to 2008 shows that $43million was spent in 1998, $54million in 1999, $60.23million in 2000, $52million in 2001, $66.9m in 2002, $25m in 2003, $20m in 2004, $40m in 2005, $60m in 2006, $70m in 2007 and $80m in 2008

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(SPDC; 2004b,2005, 2008 and 2009). Also, in 2012 and 2013, $31.4m and $32.3million respectively has been the contributions of Shell to the social and economic development of their host communities (SPDC, 2014). With these, the expectation was that there should be a remarkable impact on the livelihood of the people of the Niger Delta Region especially in the host communities.

(SPDC; 2004b,2005, 2008 and 2009). Also, in 2012 and 2013, $31.4m and $32.3million respectively has been the contributions of Shell to the social and economic development of their host communities (SPDC, 2014). With these, the expectation was that there should be a remarkable impact on the livelihood of the people of the Niger Delta Region especially in the host communities.

The CSR under study was agricultural intervention which involved establishment of livelihood projects such as poultry farms (Broilers/layers), aquaculture and agro processing (cassava processing mills, oil palm processing mills, Rice processing mills etc.). The interventions focus on building community capacity for sustainable development, increased wealth creation opportunities, peace and security promotion in Niger Delta and improved economic infrastructure for its operating communities (SPDC, 2005). In order to effectively implement and achieve this goal, SPDC employs the services of registered licensed Contractors (NGOs), who are well versed in the subject matter, to partner with the beneficiaries. This they do through signing a well stated contract agreement which covers the scope, objectives, strategies, payment in milestones and completion dates. The NGO trains the Project management committee (PMC) members for the purpose of building capacity and ensuring continuity/sustainability of project at close-out, implements the project in line with contract terms, manage the project for a specified period and give feedback to SPDC through monthly/quarterly reporting of activities of the projects (SPDC, 2004c). By this, it is expected that income will be generated to enhance the living standard of the people, employment opportunities created for members of the community and the project should have an overall impact on the livelihood activities as well as the wellbeing of the people in the community and the outcome/impact would be sustained.

The CSR under study was agricultural intervention which involved establishment of livelihood projects such as poultry farms (Broilers/layers), aquaculture and agro processing (cassava processing mills, oil palm processing mills, Rice processing mills etc.). The interventions focus on building community capacity for sustainable development, increased wealth creation opportunities, peace and security promotion in Niger Delta and improved economic infrastructure for its operating communities (SPDC, 2005). In order to effectively implement and achieve this goal, SPDC employs the services of registered licensed Contractors (NGOs), who are well versed in the subject matter, to partner with the beneficiaries. This they do through signing a well stated contract agreement which covers the scope, objectives, strategies, payment in milestones and completion dates. The NGO trains the Project management committee (PMC) members for the purpose of building capacity and ensuring continuity/sustainability of project at close-out, implements the project in line with contract terms, manage the project for a specified period and give feedback to SPDC through monthly/quarterly reporting of activities of the projects (SPDC, 2004c). By this, it is expected that income will be generated to enhance the living standard of the people, employment opportunities created for members of the community and the project should have an overall impact on the livelihood activities as well as the wellbeing of the people in the community and the outcome/impact would be sustained.

2. Objectives of the Study

2. Objectives of the Study

Emphasis in this study is on qualitative evaluation of SPDC’s agricultural projects in line with the project objectives. Specifically, the objectives include; to:

Emphasis in this study is on qualitative evaluation of SPDC’s agricultural projects in line with the project objectives. Specifically, the objectives include; to:

  

  

ascertain the outcomes/impact of the intervention on the livelihood/wellbeing of the beneficiaries. assess the sustainability status of the projects provide lessons and recommendations to improve future projects.

ascertain the outcomes/impact of the intervention on the livelihood/wellbeing of the beneficiaries. assess the sustainability status of the projects provide lessons and recommendations to improve future projects.

3. Methodology 3.1

The Study Area

3. Methodology 3.1

The Study Area

The study was carried out in the Niger Delta region of Nigeria. The region is endowed with abundant natural resources; large crude oil and gas deposits, extensive forests, good agricultural land and rich fish resources. It has four ecological zones which are: the sandy coastal ridge barrier (uplands), mangroves; freshwater swamp forests; and lowland rainforests. Niger Delta region of Nigeria is situated in the humid tropics areas where differences in mean annual temperatures between three warmest and three coldest months are less than 5oC. It lies between longitudes 4o 18// and 9o 24// E of the Greenwich Meridian and latitudes 4o 12// and 7o 48// N of the equator. It is made up of 9 states with 188 Local Government Areas and over 40 ethnic groups in 3,000 communities. The coastal states include huge areas mainly accessible by boat. Bayelsa, Rivers and Cross River states have extensive coastlines and artisanal fishing is the major rural economic activity. From the 2006 census figure, the population of Niger Delta region is estimated at 31,277,901 million (NPC, 2006). SPDC’s operations centre on the core Niger Delta states of Rivers, Bayelsa and Delta. (Ekanem and Inyang, 2013)

The study was carried out in the Niger Delta region of Nigeria. The region is endowed with abundant natural resources; large crude oil and gas deposits, extensive forests, good agricultural land and rich fish resources. It has four ecological zones which are: the sandy coastal ridge barrier (uplands), mangroves; freshwater swamp forests; and lowland rainforests. Niger Delta region of Nigeria is situated in the humid tropics areas where differences in mean annual temperatures between three warmest and three coldest months are less than 5oC. It lies between longitudes 4o 18// and 9o 24// E of the Greenwich Meridian and latitudes 4o 12// and 7o 48// N of the equator. It is made up of 9 states with 188 Local Government Areas and over 40 ethnic groups in 3,000 communities. The coastal states include huge areas mainly accessible by boat. Bayelsa, Rivers and Cross River states have extensive coastlines and artisanal fishing is the major rural economic activity. From the 2006 census figure, the population of Niger Delta region is estimated at 31,277,901 million (NPC, 2006). SPDC’s operations centre on the core Niger Delta states of Rivers, Bayelsa and Delta. (Ekanem and Inyang, 2013)

3.2

3.2

Sampling Procedure.

Sampling Procedure.

The study was carried out in the three core states of Shell’s operation in the Niger Delta region comprising of Rivers, Bayelsa and Delta states. Selection of sampled communities was purposive based on the projects listed in the Community Development Management Information System (CDMIS) of the company. From Table 1, of a total of 29 projects executed and completed in the three states within the period under study,

The study was carried out in the three core states of Shell’s operation in the Niger Delta region comprising of Rivers, Bayelsa and Delta states. Selection of sampled communities was purposive based on the projects listed in the Community Development Management Information System (CDMIS) of the company. From Table 1, of a total of 29 projects executed and completed in the three states within the period under study,

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2 were inaccessible, 7 were located in the swamp/water while 20 were located on land. All the 20 projects located on land terrain were evaluated.

2 were inaccessible, 7 were located in the swamp/water while 20 were located on land. All the 20 projects located on land terrain were evaluated.

3.3

3.3

Study Approach

Study Approach

A participatory approach and interviews with focused group discussions were used on 3 PMC members per project and at least 10 community members each to gather data for this work. The data from the qualitative component of the instrument were interpreted in such a way to provide essential evidence for making appropriate evaluation judgment. This level of evidence was complemented with field observation, critical assessment of responses from beneficiaries and value judgment of the researcher.

A participatory approach and interviews with focused group discussions were used on 3 PMC members per project and at least 10 community members each to gather data for this work. The data from the qualitative component of the instrument were interpreted in such a way to provide essential evidence for making appropriate evaluation judgment. This level of evidence was complemented with field observation, critical assessment of responses from beneficiaries and value judgment of the researcher.

Field observation of the functionality or otherwise of the projects was also employed. The evaluation of the project was done in terms of project functionality, impact on social and economic lives of the people and project sustainability. Functionality was a function of field observation of the projects’ continuity and income generation. This was also used to measure sustainability because a functional project has a greater chance of being sustainable. Impact was assessed based on the extent of other livelihood activities generated through SPDC’s projects, changes (Social, Economic and environmental) introduced to the community which were attributable to the projects intervention and employment generation. Impact on the well-being of beneficiaries was examined through the influence of the projects on educational attainment of the household members, health care and agro-food security. Sustainability was assessed by the extent of continuity or abandonment of the intervention after NGOs withdrawal.

Field observation of the functionality or otherwise of the projects was also employed. The evaluation of the project was done in terms of project functionality, impact on social and economic lives of the people and project sustainability. Functionality was a function of field observation of the projects’ continuity and income generation. This was also used to measure sustainability because a functional project has a greater chance of being sustainable. Impact was assessed based on the extent of other livelihood activities generated through SPDC’s projects, changes (Social, Economic and environmental) introduced to the community which were attributable to the projects intervention and employment generation. Impact on the well-being of beneficiaries was examined through the influence of the projects on educational attainment of the household members, health care and agro-food security. Sustainability was assessed by the extent of continuity or abandonment of the intervention after NGOs withdrawal.

Table I: Distribution of completed projects in the three states of study from 2004 – 2008.

Table I: Distribution of completed projects in the three states of study from 2004 – 2008.

S/N 1. 2. 3. 4. 5.

Community Tombia Bumoundi Bumoundi-gbene Polaku Ogboloma

State Bayelsa Bayelsa Bayelsa Bayelsa Bayelsa

6. 7. 8. 9 10

Asaigbene Ayama Abonnema Idama Edagberi

Bayelsa Bayelsa Rivers Rivers Rivers

11 12 13

Omueke-Igwuruta Rumuomasi Edagberi

Rivers Rivers Rivers

14 15. 16. 17. 18

Rumuezeolu Rumuobiakani Rumuobiakani Obelle Elele-Alimini

Rivers Rivers Rivers Rivers Rivers

19. 20. 21. 22. 23.

Tuomo Otu-jeremi Egwa-1 Omavovwe Owevwe

Delta Delta Delta Delta Delta

Project type Aquaculture Aquaculture Aquaculture Aquaculture Cassava processing mill Aquaculture Aquaculture Poultry Aquaculture Cassava processing mill Poultry Aquaculture Oil palm processing mill Poultry Poultry Aquaculture Aquaculture Oil palm processing mill Aquaculture Aquaculture Aquaculture Aquaculture Aquaculture

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Terrain Land Water Water swamp/land Land

Accessible Yes No No Yes Yes

Water Land Water Water Land

S/N 1. 2. 3. 4. 5.

Community Tombia Bumoundi Bumoundi-gbene Polaku Ogboloma

State Bayelsa Bayelsa Bayelsa Bayelsa Bayelsa

No Yes No No Yes

6. 7. 8. 9 10

Asaigbene Ayama Abonnema Idama Edagberi

Bayelsa Bayelsa Rivers Rivers Rivers

Land Land Land

Inaccessible Yes Yes

11 12 13

Omueke-Igwuruta Rumuomasi Edagberi

Rivers Rivers Rivers

Land Land Land Land Land

Yes Yes Yes Inaccessible Yes

14 15. 16. 17. 18

Rumuezeolu Rumuobiakani Rumuobiakani Obelle Elele-Alimini

Rivers Rivers Rivers Rivers Rivers

Water Land Water Land Land

No Yes No Yes Yes

19. 20. 21. 22. 23.

Tuomo Otu-jeremi Egwa-1 Omavovwe Owevwe

Delta Delta Delta Delta Delta

Project type Aquaculture Aquaculture Aquaculture Aquaculture Cassava processing mill Aquaculture Aquaculture Poultry Aquaculture Cassava processing mill Poultry Aquaculture Oil palm processing mill Poultry Poultry Aquaculture Aquaculture Oil palm processing mill Aquaculture Aquaculture Aquaculture Aquaculture Aquaculture

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Terrain Land Water Water swamp/land Land

Accessible Yes No No Yes Yes

Water Land Water Water Land

No Yes No No Yes

Land Land Land

Inaccessible Yes Yes

Land Land Land Land Land

Yes Yes Yes Inaccessible Yes

Water Land Water Land Land

No Yes No Yes Yes

24.

Patani

Delta

25.

Ovrode

Delta

26. 27. 28. 29.

Ehroike Otu-jeremi Omavovwe Owevwe

Delta Delta Delta Delta

Rice processing mill Cassava processing mill Cassava mill Poultry Poultry Poultry

Land

Yes

24.

Patani

Delta

Land

Yes

25.

Ovrode

Delta

Land Land Land Land

Yes Yes Yes Yes

26. 27. 28. 29.

Ehroike Otu-jeremi Omavovwe Owevwe

Delta Delta Delta Delta

Rice processing mill Cassava processing mill Cassava mill Poultry Poultry Poultry

Land

Yes

Land

Yes

Land Land Land Land

Yes Yes Yes Yes

Source: SPDC’s CDMIS

Source: SPDC’s CDMIS

In summary, out of 29 projects identified in the scope of this study (15 aquaculture projects, 7 processing mills and 7 poultry projects); 20 were evaluated (8 aquaculture, 7 processing mills and 5 poultry projects) as shown in table 2. This represented 66.67% of the projects implemented.

In summary, out of 29 projects identified in the scope of this study (15 aquaculture projects, 7 processing mills and 7 poultry projects); 20 were evaluated (8 aquaculture, 7 processing mills and 5 poultry projects) as shown in table 2. This represented 66.67% of the projects implemented.

Table 2: Project summary in the three states studied

Table 2: Project summary in the three states studied

S/N

STATES

AQUACULTURE

POULTRY

PROCESSING MILLS 1. Bayelsa 6 1 2. Rivers 4 4 3 3. Delta 5 3 3 TOTAL 15 7 7 NOTE: PE = Projects Evaluated, PNE = Projects Not evaluated

PE

PNE

TOTAL

4 7 9 20

3 4 2 9

7 11 11 29

S/N

STATES

AQUACULTURE

PROCESSING MILLS 1. Bayelsa 6 1 2. Rivers 4 4 3 3. Delta 5 3 3 TOTAL 15 7 7 NOTE: PE = Projects Evaluated, PNE = Projects Not evaluated

4. Findings 4.1

Relevance

POULTRY

PE

PNE

TOTAL

4 7 9 20

3 4 2 9

7 11 11 29

4. Findings 4.1

Relevance

4.1.1 Concept/ Context

4.1.1 Concept/ Context

Oil exploration has had far reaching negative environmental and socio-economic impact on the host communities. Massive land takes, oil spills and gas flares introduce agitations in the communities. Therefore, alternative means of livelihood was required to cushion the effect of deprived primary occupations arising from spills and massive land takes. It had to ameliorate the adverse living standards amongst the people as worsened by widespread poverty. This is why SPDC, as part of its Corporate Social Responsibility (CSR) coupled with the demand by the people of the region initiated this intervention. Against this background, SPDC’s projects focused on training and establishment of alternative livelihoods thereby increasing opportunities for wealth creation and building community capacity for sustainable development. The expected performance indicators for these projects were to train Project Management Committee, PMC members on business literacy management (proper management of enterprises and record keeping), Income generation and Employment creation to improve the standard of living of the direct and indirect beneficiaries through processing and marketing. The indirect beneficiaries included non- SPDC registered farmers, Agro-allied Processing communities and agricultural institutions while the direct beneficiaries were the youth and the entire community where the projects were situated.

Oil exploration has had far reaching negative environmental and socio-economic impact on the host communities. Massive land takes, oil spills and gas flares introduce agitations in the communities. Therefore, alternative means of livelihood was required to cushion the effect of deprived primary occupations arising from spills and massive land takes. It had to ameliorate the adverse living standards amongst the people as worsened by widespread poverty. This is why SPDC, as part of its Corporate Social Responsibility (CSR) coupled with the demand by the people of the region initiated this intervention. Against this background, SPDC’s projects focused on training and establishment of alternative livelihoods thereby increasing opportunities for wealth creation and building community capacity for sustainable development. The expected performance indicators for these projects were to train Project Management Committee, PMC members on business literacy management (proper management of enterprises and record keeping), Income generation and Employment creation to improve the standard of living of the direct and indirect beneficiaries through processing and marketing. The indirect beneficiaries included non- SPDC registered farmers, Agro-allied Processing communities and agricultural institutions while the direct beneficiaries were the youth and the entire community where the projects were situated.

Reviewing the projects against the specific socio economic contexts of their design and implementation, the projects could be considered relevant. They have the potential of drastically reducing poverty in these communities and indeed the Niger Delta by creating more jobs, improving on the well being of the people and promoting peace and security in the Region especially between SPDC and the host communities. These projects also were conceived in line with the Millennium Development goal with emphasis on poverty reduction and sustainable development.

Reviewing the projects against the specific socio economic contexts of their design and implementation, the projects could be considered relevant. They have the potential of drastically reducing poverty in these communities and indeed the Niger Delta by creating more jobs, improving on the well being of the people and promoting peace and security in the Region especially between SPDC and the host communities. These projects also were conceived in line with the Millennium Development goal with emphasis on poverty reduction and sustainable development.

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4.1.2

Project Targeting

4.1.2

Project Targeting

SPDC’s agricultural intervention was targeted at community’s poverty alleviation through involvement of leaders in the communities. The idea of the Project Management Committee (PMC) instead of individuals in the community made for a withdrawn attitude towards project ownership. Culturally, community projects belong to nobody; therefore, there is the tendency to abandon what belongs to all. This with inadequate engagement of community people in the planning, implementation and evaluation processes made for non functionality of most projects. The people saw themselves as being called upon to manage projects for Shell, while it was actually their own projects. Lack of ownership was a major issue because the extent to which beneficiaries can assume ownership of the activities of the project at the expiration of the technical and functional assistance provided, determines its sustainability. The enthusiasm or otherwise with which beneficiaries react or respond to the projects in general predisposed them to succeed and sustain the projects. Once there was projects’ ownership, management commitment, maintenance and drive for success is relatively assured. For instance, there was the issue with Polaku fish farm which did not perform well and was abandoned at first harvest, while the Chairman of the PMC owned a fish farm that was doing well and on-going in the same community. It was also widely noticed that individually owned projects, were much more functional and sustainable compared to those managed by the project committees for the communities examples were the cases of Rumuezeolu poultry project and Rumuobioakani integrated farm. There was therefore the need to empower individuals, youth groups, women cooperatives in the communities for the purpose of community development, to strengthen ownership, ginger interest and commitment and produce results which will bring about positive impact on the livelihood activities of the community rather than form PMCs.

SPDC’s agricultural intervention was targeted at community’s poverty alleviation through involvement of leaders in the communities. The idea of the Project Management Committee (PMC) instead of individuals in the community made for a withdrawn attitude towards project ownership. Culturally, community projects belong to nobody; therefore, there is the tendency to abandon what belongs to all. This with inadequate engagement of community people in the planning, implementation and evaluation processes made for non functionality of most projects. The people saw themselves as being called upon to manage projects for Shell, while it was actually their own projects. Lack of ownership was a major issue because the extent to which beneficiaries can assume ownership of the activities of the project at the expiration of the technical and functional assistance provided, determines its sustainability. The enthusiasm or otherwise with which beneficiaries react or respond to the projects in general predisposed them to succeed and sustain the projects. Once there was projects’ ownership, management commitment, maintenance and drive for success is relatively assured. For instance, there was the issue with Polaku fish farm which did not perform well and was abandoned at first harvest, while the Chairman of the PMC owned a fish farm that was doing well and on-going in the same community. It was also widely noticed that individually owned projects, were much more functional and sustainable compared to those managed by the project committees for the communities examples were the cases of Rumuezeolu poultry project and Rumuobioakani integrated farm. There was therefore the need to empower individuals, youth groups, women cooperatives in the communities for the purpose of community development, to strengthen ownership, ginger interest and commitment and produce results which will bring about positive impact on the livelihood activities of the community rather than form PMCs.

4.2

4.2

Project Design /Strategy

Project Design /Strategy

4.2.1 Project Design

4.2.1 Project Design

SPDC conceptualized its agricultural intervention in the Niger Delta communities to include: carrying out a need assessment, selecting an NGO (contractor), budgeting and implementing using the NGOs. The first problem posed by SPDC which affected the success of her livelihood activities was the scope of work. The gap between project approval and actual implementation was often too wide that it affected contract sum, prices of products, and sometimes run-off season. For instance, information in the database showed that, sometimes it took up to a year or more to implement a well- contracted project because of the in-built processes in the system. This affected the prices of input thereby influencing the contractors’ use of adequate materials for quality work. Again, a scope of work which has the construction of 4 concrete fish ponds and sinking of a borehole with one overhead tank provided, to feed the 4 ponds without the provision of electricity or power generating set seems not well conceived. An overhead tank cannot feed 4 ponds successfully without a standby generator or electricity to pump water.

SPDC conceptualized its agricultural intervention in the Niger Delta communities to include: carrying out a need assessment, selecting an NGO (contractor), budgeting and implementing using the NGOs. The first problem posed by SPDC which affected the success of her livelihood activities was the scope of work. The gap between project approval and actual implementation was often too wide that it affected contract sum, prices of products, and sometimes run-off season. For instance, information in the database showed that, sometimes it took up to a year or more to implement a well- contracted project because of the in-built processes in the system. This affected the prices of input thereby influencing the contractors’ use of adequate materials for quality work. Again, a scope of work which has the construction of 4 concrete fish ponds and sinking of a borehole with one overhead tank provided, to feed the 4 ponds without the provision of electricity or power generating set seems not well conceived. An overhead tank cannot feed 4 ponds successfully without a standby generator or electricity to pump water.

The communities were fully involved in the need assessment but did not participate in the contract drafting. It was the contractors who implemented the projects and the community was expected to select between 5 and 10 people to make up a committee, the Project Management Committee (PMC). The PMC members were to undergo a Business Literacy Training (BLT) to build up their capacity and skills to be able to manage the project for the community at the exit of the NGOs. The BLT was to be carried out by the NGOs few days before the actual commencement of the projects and to undergo on-the-project training throughout the one year period for which the NGOs would implement and monitor the projects.

The communities were fully involved in the need assessment but did not participate in the contract drafting. It was the contractors who implemented the projects and the community was expected to select between 5 and 10 people to make up a committee, the Project Management Committee (PMC). The PMC members were to undergo a Business Literacy Training (BLT) to build up their capacity and skills to be able to manage the project for the community at the exit of the NGOs. The BLT was to be carried out by the NGOs few days before the actual commencement of the projects and to undergo on-the-project training throughout the one year period for which the NGOs would implement and monitor the projects.

Most of the project types carried out in each of the communities surveyed were found fitting with the local context and as a result were the felt needs of the people. The implementation of the projects by NGOs was also in order since SPDC as a corporate organization, whose interest is on the business of oil and gas drilling, may not have been in a proper position to implement the projects directly, coupled with the reputation they already had in the hosts communities. However, inadequate community involvement and participation throughout all stages of the project was noticed. Participation in any community development programme is key to the success and sustainability of such developmental programme. An ideal view of community development

Most of the project types carried out in each of the communities surveyed were found fitting with the local context and as a result were the felt needs of the people. The implementation of the projects by NGOs was also in order since SPDC as a corporate organization, whose interest is on the business of oil and gas drilling, may not have been in a proper position to implement the projects directly, coupled with the reputation they already had in the hosts communities. However, inadequate community involvement and participation throughout all stages of the project was noticed. Participation in any community development programme is key to the success and sustainability of such developmental programme. An ideal view of community development

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planning is premised on meeting the felt needs of the community and should involve in a properly structured manner, all the principal actors and development partners, actual and potential, in the community. The community people were not fully engaged throughout the process of projects’ implementation. At the implementation stage, it was wholly the work of the contractors as most of the community’s suggestions were not considered. This created a gap in acceptability/ownership and sustainability of the livelihood projects.

planning is premised on meeting the felt needs of the community and should involve in a properly structured manner, all the principal actors and development partners, actual and potential, in the community. The community people were not fully engaged throughout the process of projects’ implementation. At the implementation stage, it was wholly the work of the contractors as most of the community’s suggestions were not considered. This created a gap in acceptability/ownership and sustainability of the livelihood projects.

4.2.2

4.2.2

Project Management Committee Members Selection

Project Management Committee Members Selection

The members of the PMCs were selected by the community leadership to manage the projects for the communities for some of the projects that were not individually owned. The criteria for the selection were not known but the committees were made up of mostly youths in the community. However, the issue of selecting the leaders’ close relatives, those who had no experience or interest in agriculture could not be ruled out. This was another weakness to the sustainability of the projects because this set of people could abandon the projects at the slightest challenge. Also, PMC members were changed as new leaders emerged in the community to satisfy leaders’ interest .This affected the growth of the projects and in some cases, led to the folding-up of the projects as some of them were not trained to manage the projects.

The members of the PMCs were selected by the community leadership to manage the projects for the communities for some of the projects that were not individually owned. The criteria for the selection were not known but the committees were made up of mostly youths in the community. However, the issue of selecting the leaders’ close relatives, those who had no experience or interest in agriculture could not be ruled out. This was another weakness to the sustainability of the projects because this set of people could abandon the projects at the slightest challenge. Also, PMC members were changed as new leaders emerged in the community to satisfy leaders’ interest .This affected the growth of the projects and in some cases, led to the folding-up of the projects as some of them were not trained to manage the projects.

4.2.3

4.2.3

Business Literacy Training (BLT) or Capacity Building

Business Literacy Training (BLT) or Capacity Building

The design of the projects was such that training was given to the PMC members before and as the projects progressed. This was to ginger effectiveness and sustainability of projects at the exit of the NGOs. From statistics, about 64.6% of the PMC members were trained by the NGOs while about 35.4% did not receive any form of training. PMC members of Tombia fish farm, Ogboloama cassava processing mill of Bayelsa state and Ovrode cassava processing mill as well as Omavovwe fish farm in Delta State were among those who did not receive any form of training thereby lacking in skill and capacity for effective management.

The design of the projects was such that training was given to the PMC members before and as the projects progressed. This was to ginger effectiveness and sustainability of projects at the exit of the NGOs. From statistics, about 64.6% of the PMC members were trained by the NGOs while about 35.4% did not receive any form of training. PMC members of Tombia fish farm, Ogboloama cassava processing mill of Bayelsa state and Ovrode cassava processing mill as well as Omavovwe fish farm in Delta State were among those who did not receive any form of training thereby lacking in skill and capacity for effective management.

However, some trained PMC members have had issues with training given to them by NGOs ranging from subject matter inadequacy, brief and inconsistency to lack of reference manual. Also, about 75% of those who received training still indicated that they needed more training on diverse areas of project management. This is so because they believed, continuous and consistent training builds and strengthens capacity for continued good management practices and performance. This sprung up a feeling that, a conscious effort should be made by SPDC to identify and assist Resource Persons to prepare/organize their training materials to suit the people the project was meant for. Better still, SPDC should liaise with Extension Departments in the Universities to train individuals for intervention as done in other countries like Ghana.

However, some trained PMC members have had issues with training given to them by NGOs ranging from subject matter inadequacy, brief and inconsistency to lack of reference manual. Also, about 75% of those who received training still indicated that they needed more training on diverse areas of project management. This is so because they believed, continuous and consistent training builds and strengthens capacity for continued good management practices and performance. This sprung up a feeling that, a conscious effort should be made by SPDC to identify and assist Resource Persons to prepare/organize their training materials to suit the people the project was meant for. Better still, SPDC should liaise with Extension Departments in the Universities to train individuals for intervention as done in other countries like Ghana.

With the level and duration of training given by the NGOs, there was much gap in knowledge and skills of the beneficiaries for proper management and sustenance of the projects. It may imply that in order for community development’s interventions to be effective and sustainable, periodic training mechanism was necessary to close the gaps in the knowledge and skills needed for sustainable and effective intervention and to also keep pace with the changing technology.

With the level and duration of training given by the NGOs, there was much gap in knowledge and skills of the beneficiaries for proper management and sustenance of the projects. It may imply that in order for community development’s interventions to be effective and sustainable, periodic training mechanism was necessary to close the gaps in the knowledge and skills needed for sustainable and effective intervention and to also keep pace with the changing technology.

4.2.4

4.2.4

Supervision and Monitoring

Supervision and Monitoring

The design of the projects was such that Shell’s representatives/community development officers supervise the implementation of projects alongside the community members, undertake periodic field visits and ascertain the authenticity of monthly/quarterly reports submitted by the NGOs in line with the milestone deliverables before payment of milestones to contractors, but this was never followed. The NGOs were also to supervise the takeover of the projects by the PMCs for sometime before actual withdrawal, but it was not so. From the findings at the field, and through the FGD, proper monitoring of the NGO and the project was a major challenge for Shell. It relied on reports (monthly or quarterly) from NGOs which sometimes were not received on time except pressure was put on them to submit them. This gap may have aided the NGOs to execute the contract without abiding by the contract terms. Going by the statistics on frequency of project monitoring by SPDC, 85.4% of the beneficiaries confirmed that there was no monitoring. This percentage was high implying

The design of the projects was such that Shell’s representatives/community development officers supervise the implementation of projects alongside the community members, undertake periodic field visits and ascertain the authenticity of monthly/quarterly reports submitted by the NGOs in line with the milestone deliverables before payment of milestones to contractors, but this was never followed. The NGOs were also to supervise the takeover of the projects by the PMCs for sometime before actual withdrawal, but it was not so. From the findings at the field, and through the FGD, proper monitoring of the NGO and the project was a major challenge for Shell. It relied on reports (monthly or quarterly) from NGOs which sometimes were not received on time except pressure was put on them to submit them. This gap may have aided the NGOs to execute the contract without abiding by the contract terms. Going by the statistics on frequency of project monitoring by SPDC, 85.4% of the beneficiaries confirmed that there was no monitoring. This percentage was high implying

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that the NGOs were not properly monitored otherwise cases of poor construction/ installation and supply of bad equipment would not have arisen. These, tended to have flawed the design and implementation of the projects which in turn had greater effects on the overall success and sustainability of the projects. On the other hand, lack of supervision of the project by some of the contractors after implementation contributed to the poor performance/outcome of some of the projects that attempted to survive beyond one year. This lack of follow up process may have contributed to the ineffectiveness of otherwise viable project as expertise advice may have helped put projects back on course. From Statistics, 56.35% of the beneficiaries rated the supervision performance of NGOs as poor while 10.4% and 8.3% rated the performance as good and very good respectively. Monitoring and/or supervision are very vital tools in projects’ success. The high percentage rating of NGOs’ performance as poor may mean that NGOs were more interested in project completion and handover than in project effectiveness and sustenance.

that the NGOs were not properly monitored otherwise cases of poor construction/ installation and supply of bad equipment would not have arisen. These, tended to have flawed the design and implementation of the projects which in turn had greater effects on the overall success and sustainability of the projects. On the other hand, lack of supervision of the project by some of the contractors after implementation contributed to the poor performance/outcome of some of the projects that attempted to survive beyond one year. This lack of follow up process may have contributed to the ineffectiveness of otherwise viable project as expertise advice may have helped put projects back on course. From Statistics, 56.35% of the beneficiaries rated the supervision performance of NGOs as poor while 10.4% and 8.3% rated the performance as good and very good respectively. Monitoring and/or supervision are very vital tools in projects’ success. The high percentage rating of NGOs’ performance as poor may mean that NGOs were more interested in project completion and handover than in project effectiveness and sustenance.

4.3

4.3

Projects Outcome and Impact

Projects Outcome and Impact

From the interview with the beneficiaries and from the discussions held with community leaders together with the available documents verified, the projects were well funded. Achievement of projects’ objectives was imminent at the inception as the result of the interview showed that almost all of them provided employment to at least five (5) community members. On capacity building, at least 1-5 persons were trained on basic managerial and entrepreneurial skills in over 60% of the projects. On revenue generation, about 50% of the projects generated revenue in the first year. On projects generating other livelihood projects in the communities, statistics showed that five agricultural-based livelihood activities were generated because of the projects. It included: livestock farming, fishing and fish processing, crop farming, poultry products/processing, trading/marketing. Community members also worked as hired labourers during projects implementation stage and some thereafter, earned salaries which brought about improvement in their living standard. From the discussions, it was established that those who traded on poultry products expected a continuous supply from SPDC’s funded farms in terms of eggs, broilers and culled layers processing. Those who went into crop farming hoped to buy at a cheaper rate and have steady source of supply of droppings/manure from the SPDC’s funded poultry farms. Similar expectation was gathered from those who went into fish processing. With these opportunities in mind, the community members and indeed, the neighbouring communities ventured into these livelihood activities which were not sustained as there were no evidence as at the time of field visit. On the improvement of the living standard and impact on the well-being of beneficiaries, about 35% attested to it. Evidence from the field observation and reports show that those projects that were functional and performing effectively provided income and products to sustain the beneficiaries and the community thereby improving their living standard and well-being. For instance, Owevwe community poultry and fish farm projects have been functional, operational and sustainable as it had about seven staff who were members of the community on its payroll. The same was true for Rumuezeolu poultry project and Rumuobioakani fish farm which income and employment generation capacity impacted positively on the well-being of the beneficiaries, though the later were individually owned projects, sponsored by SPDC and counted for their communities as community projects.

From the interview with the beneficiaries and from the discussions held with community leaders together with the available documents verified, the projects were well funded. Achievement of projects’ objectives was imminent at the inception as the result of the interview showed that almost all of them provided employment to at least five (5) community members. On capacity building, at least 1-5 persons were trained on basic managerial and entrepreneurial skills in over 60% of the projects. On revenue generation, about 50% of the projects generated revenue in the first year. On projects generating other livelihood projects in the communities, statistics showed that five agricultural-based livelihood activities were generated because of the projects. It included: livestock farming, fishing and fish processing, crop farming, poultry products/processing, trading/marketing. Community members also worked as hired labourers during projects implementation stage and some thereafter, earned salaries which brought about improvement in their living standard. From the discussions, it was established that those who traded on poultry products expected a continuous supply from SPDC’s funded farms in terms of eggs, broilers and culled layers processing. Those who went into crop farming hoped to buy at a cheaper rate and have steady source of supply of droppings/manure from the SPDC’s funded poultry farms. Similar expectation was gathered from those who went into fish processing. With these opportunities in mind, the community members and indeed, the neighbouring communities ventured into these livelihood activities which were not sustained as there were no evidence as at the time of field visit. On the improvement of the living standard and impact on the well-being of beneficiaries, about 35% attested to it. Evidence from the field observation and reports show that those projects that were functional and performing effectively provided income and products to sustain the beneficiaries and the community thereby improving their living standard and well-being. For instance, Owevwe community poultry and fish farm projects have been functional, operational and sustainable as it had about seven staff who were members of the community on its payroll. The same was true for Rumuezeolu poultry project and Rumuobioakani fish farm which income and employment generation capacity impacted positively on the well-being of the beneficiaries, though the later were individually owned projects, sponsored by SPDC and counted for their communities as community projects.

4.3.1

4.3.1

Example of some of the projects visited.

Example of some of the projects visited.

1. Rivers state;

1. Rivers state;

One of the projects visited was Ben’s farms. One of the ways SPDC extended her CSR to Rumuobioakani, the host community was through the implementation of a fish farm which later generated a Poultry farm. From the verified document and personal interview carried out, this beneficiary was sent on Training to Songhai, Delta State. The project scope included: Construction of 1ha fish farm; Procurement of materials and equipment; Stocking of ponds; provision of operating cost/salaries and wages/fuel and maintenance of water pump. It was implemented by Fresh Impact Rural Development Initiative, an NGO registered with Shell.

One of the projects visited was Ben’s farms. One of the ways SPDC extended her CSR to Rumuobioakani, the host community was through the implementation of a fish farm which later generated a Poultry farm. From the verified document and personal interview carried out, this beneficiary was sent on Training to Songhai, Delta State. The project scope included: Construction of 1ha fish farm; Procurement of materials and equipment; Stocking of ponds; provision of operating cost/salaries and wages/fuel and maintenance of water pump. It was implemented by Fresh Impact Rural Development Initiative, an NGO registered with Shell.

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The survey carried out showed that the farm which started sometime in 2006 with an initial amount of N6,558,200.00 has grown into an integrated farm with Poultry, Fish processing/roasting and crop farming. From two earthen ponds, the farm has now grown to about 4 concrete ponds, with broilers and layers, turkeys, goatry and vegetable/plantain plantation. It has employed 4 Attendants and 1 Manager. The beneficiary still strives towards expansion of the farm to such that can produce fish feeds and hatchery.

The survey carried out showed that the farm which started sometime in 2006 with an initial amount of N6,558,200.00 has grown into an integrated farm with Poultry, Fish processing/roasting and crop farming. From two earthen ponds, the farm has now grown to about 4 concrete ponds, with broilers and layers, turkeys, goatry and vegetable/plantain plantation. It has employed 4 Attendants and 1 Manager. The beneficiary still strives towards expansion of the farm to such that can produce fish feeds and hatchery.

Findings show that the farm produces an estimated monthly income of N350,000 and it is performing well. The income for the farm is fairly adequate to provide for the basic needs (food, shelter, clothing, education) of the family and the project will go beyond the next 5 years.

Findings show that the farm produces an estimated monthly income of N350,000 and it is performing well. The income for the farm is fairly adequate to provide for the basic needs (food, shelter, clothing, education) of the family and the project will go beyond the next 5 years.

In Rivers state also, Elele – Alimini Palm Oil Processing Mill Project was visited. Elele-Alimini is one of the communities in Emuoha Local Government Area of Rivers State. It shares a common boundary with Obelle, Ahoada and Elele communities. SPDC implemented a palm oil processing mill project for the people of Elele-Alimini in 2006 through an NGO, Development Initiatives – DEVIN. The mill was completed and test-ran and handed over to the PMC. At the time of visit, none of the machines was functional. There was no business activity going on there. However, in a local mill close by, normal oil processing activity was on-going. Findings revealed that, mismanagement was the biggest problem encountered. PMC members were not performing their duties and there was no security of equipment hence, one of the engines to the machine was kept in the house of one of the community members for security reasons as the equipments were stolen and tampered with. There was no employment generation, no revenue for the community hence no impact from the project; therefore, the project did not achieve its aim.

In Rivers state also, Elele – Alimini Palm Oil Processing Mill Project was visited. Elele-Alimini is one of the communities in Emuoha Local Government Area of Rivers State. It shares a common boundary with Obelle, Ahoada and Elele communities. SPDC implemented a palm oil processing mill project for the people of Elele-Alimini in 2006 through an NGO, Development Initiatives – DEVIN. The mill was completed and test-ran and handed over to the PMC. At the time of visit, none of the machines was functional. There was no business activity going on there. However, in a local mill close by, normal oil processing activity was on-going. Findings revealed that, mismanagement was the biggest problem encountered. PMC members were not performing their duties and there was no security of equipment hence, one of the engines to the machine was kept in the house of one of the community members for security reasons as the equipments were stolen and tampered with. There was no employment generation, no revenue for the community hence no impact from the project; therefore, the project did not achieve its aim.

2. Delta state;

2. Delta state;

One of the projects visited was Owevwe Community farms. Owevwe community is in Ughelli-North Local Government Area of Delta State. It is of the Urhobo ethnic group and farming is the major occupation of the people. Two agricultural projects were executed in Owevwe community by Shell. These were fish farm and poultry projects. The scope of the fish farm project included construction of 2 fish ponds and stocking of same with 6,000 catfish and 2,500 Tilapia. The two projects were cited together and are both functional. During the survey, two poultry pens, brooder house, sick bay and a farm office were seen and the poultry pen were stocked with 3000 layers. Also 2 Earthen ponds were fully stocked at the time of visit. The Community Chairman was seen and the Farm Manager with his attendants. The farm was very neat. From the findings, the business capital of about N7.7 million was provided by SPDC. Since then, even the changes in community leadership did not affect the performance of the projects. The projects have employed 7 staff who are members of the community and is generating income for the community which is usually accounted for on a monthly basis. The farm records were properly kept and other agro-allied business institutions/individuals get their supplies from the community. Estimated revenue stood at N562, 000 while the estimated net income was between N32, 000 and N40, 000. The project was well funded by SPDC and the PMC members received adequate training even though there was need for more training. The project received adequate supervision from SPDC and the NGO and was adjudged profitable, so could be recommended to other people. The project is sustainable, considering the fact that it can go beyond the next five (5) years. Therefore, the aims and objective of Shell were achieved.

One of the projects visited was Owevwe Community farms. Owevwe community is in Ughelli-North Local Government Area of Delta State. It is of the Urhobo ethnic group and farming is the major occupation of the people. Two agricultural projects were executed in Owevwe community by Shell. These were fish farm and poultry projects. The scope of the fish farm project included construction of 2 fish ponds and stocking of same with 6,000 catfish and 2,500 Tilapia. The two projects were cited together and are both functional. During the survey, two poultry pens, brooder house, sick bay and a farm office were seen and the poultry pen were stocked with 3000 layers. Also 2 Earthen ponds were fully stocked at the time of visit. The Community Chairman was seen and the Farm Manager with his attendants. The farm was very neat. From the findings, the business capital of about N7.7 million was provided by SPDC. Since then, even the changes in community leadership did not affect the performance of the projects. The projects have employed 7 staff who are members of the community and is generating income for the community which is usually accounted for on a monthly basis. The farm records were properly kept and other agro-allied business institutions/individuals get their supplies from the community. Estimated revenue stood at N562, 000 while the estimated net income was between N32, 000 and N40, 000. The project was well funded by SPDC and the PMC members received adequate training even though there was need for more training. The project received adequate supervision from SPDC and the NGO and was adjudged profitable, so could be recommended to other people. The project is sustainable, considering the fact that it can go beyond the next five (5) years. Therefore, the aims and objective of Shell were achieved.

Also, Erhoike community cassava processing project was visited. Erhoike Community is in Kokori Agbon clan of Ethiope East Local Government Area of Delta State. A Cassava processing mill was implemented by SPDC through an NGO for the community to help ameliorate the suffering of the people, create wealth, and generate revenue and employment for the people of Erhoike. The project started on 21 st July, 2005 and was completed on the 29th June, 2006 at a budget cost of N5, 423,400. At the time of survey, it was observed that the installed grater was rusted and non-functional, the septic tank was leaking and water flooded the area, the frying section was dilapidated though 2 sections were still being used by the women as improvised garri fryers. From the FGD held, the construction work was poorly done and the equipments were bad, causing the abandonment of the grating and pressing sections of the mill. There was no start-up capital even though the sum of N100, 000 was promised by the NGO to be given at his exit from the project. Workers salaries could not be paid and the mill lacked patronage as the equipment installed were those common to local mills in the

Also, Erhoike community cassava processing project was visited. Erhoike Community is in Kokori Agbon clan of Ethiope East Local Government Area of Delta State. A Cassava processing mill was implemented by SPDC through an NGO for the community to help ameliorate the suffering of the people, create wealth, and generate revenue and employment for the people of Erhoike. The project started on 21 st July, 2005 and was completed on the 29th June, 2006 at a budget cost of N5, 423,400. At the time of survey, it was observed that the installed grater was rusted and non-functional, the septic tank was leaking and water flooded the area, the frying section was dilapidated though 2 sections were still being used by the women as improvised garri fryers. From the FGD held, the construction work was poorly done and the equipments were bad, causing the abandonment of the grating and pressing sections of the mill. There was no start-up capital even though the sum of N100, 000 was promised by the NGO to be given at his exit from the project. Workers salaries could not be paid and the mill lacked patronage as the equipment installed were those common to local mills in the

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neighbourhood. That was why, people did not see the need to leave what they already have and were used to, for another of the same make-up. The aims and objectives were not achieved.

neighbourhood. That was why, people did not see the need to leave what they already have and were used to, for another of the same make-up. The aims and objectives were not achieved.

3. Bayelsa state;

3. Bayelsa state;

One of the projects was Ogboloma Community cassava processing mill. From the records, the project was selected by the people from SPDC’s list of interventions with the aim of income generation for the community, creation of alternative source of livelihood for Ogboloma community and employment creation. Contract for the establishment of the cassava processing mill was awarded in two phases; phase one was the civil work which about N7,995,130 was spent while phase two was the installation of the processing equipments which took about N5,620,000. Altogether, a total sum of N13, 615,130 was spent on the project and the project started on the 30/6/2008 and ended 31/2/2009.

One of the projects was Ogboloma Community cassava processing mill. From the records, the project was selected by the people from SPDC’s list of interventions with the aim of income generation for the community, creation of alternative source of livelihood for Ogboloma community and employment creation. Contract for the establishment of the cassava processing mill was awarded in two phases; phase one was the civil work which about N7,995,130 was spent while phase two was the installation of the processing equipments which took about N5,620,000. Altogether, a total sum of N13, 615,130 was spent on the project and the project started on the 30/6/2008 and ended 31/2/2009.

From the field survey, the following were seen; 2 motorized graters, 5 frying pots, 1 electric grater, 5 pressers, a building housing the listed equipment and 3 locked-up stores. From the interview, it was gathered that, SPDC completed the Cassava Processing Mill but did not train manpower or a Project Management Committee set in place to take over the management of the mill. This was so because; there was leadership crisis in the community. This made it impossible for the selection of PMC to be trained. It also hampered the formal hand-over of project to the community even when all the equipment had been installed.

From the field survey, the following were seen; 2 motorized graters, 5 frying pots, 1 electric grater, 5 pressers, a building housing the listed equipment and 3 locked-up stores. From the interview, it was gathered that, SPDC completed the Cassava Processing Mill but did not train manpower or a Project Management Committee set in place to take over the management of the mill. This was so because; there was leadership crisis in the community. This made it impossible for the selection of PMC to be trained. It also hampered the formal hand-over of project to the community even when all the equipment had been installed.

Another project was the Ayama Community Fish Farm. Ayama Community is one of the communities in Yenegoa Local Government Area of Bayelsa State. As part of the Community’s contribution to the project, a portion of land was donated for the implementation of the project. The project was implemented by WAL (Wetlands Associate Limited), a non-governmental organization registered with Shell. The project was started in 31/01/2007 and was completed on the 23/09/2008 with the sum of N6, 754,946. According to available documents, the project was aimed at building the capacity of PMC members for effective management of the project and provision of fulltime employment for at least 3 and part time employment for 12 Ayama indigenes.

Another project was the Ayama Community Fish Farm. Ayama Community is one of the communities in Yenegoa Local Government Area of Bayelsa State. As part of the Community’s contribution to the project, a portion of land was donated for the implementation of the project. The project was implemented by WAL (Wetlands Associate Limited), a non-governmental organization registered with Shell. The project was started in 31/01/2007 and was completed on the 23/09/2008 with the sum of N6, 754,946. According to available documents, the project was aimed at building the capacity of PMC members for effective management of the project and provision of fulltime employment for at least 3 and part time employment for 12 Ayama indigenes.

From the survey conducted, the ponds were seen submerged in bush. The fencing provided to the ponds were intact but the farm house was overgrown with weeds. Findings revealed that, the ponds were constructed and stocked. The NGO constructed 2 feeder ponds and 2 major ponds. About 225 tilapia were stocked to be used as feeds for catfish. There was proper management and monitoring by the NGO. The PMC were trained in local feed production and machine was procured for that purpose.

From the survey conducted, the ponds were seen submerged in bush. The fencing provided to the ponds were intact but the farm house was overgrown with weeds. Findings revealed that, the ponds were constructed and stocked. The NGO constructed 2 feeder ponds and 2 major ponds. About 225 tilapia were stocked to be used as feeds for catfish. There was proper management and monitoring by the NGO. The PMC were trained in local feed production and machine was procured for that purpose.

The NGO handed over three (3) bags of feeds and the machine for local feed production to the PMC at exit. The machine broke down after 2 ½ months of the NGO’s exit. The NGO monitored the performance of the farm until the first harvest. At harvest, about 10% mortality was experienced. Some of the fish harvested were still at the size of fingerlings. This led to poor sales. The money generated could hardly pay for expenses incurred, the PMC members were not paid and restocking was not feasible. This led to the abandonment of the project till date. The aims and objectives of the projects were not achieved.

The NGO handed over three (3) bags of feeds and the machine for local feed production to the PMC at exit. The machine broke down after 2 ½ months of the NGO’s exit. The NGO monitored the performance of the farm until the first harvest. At harvest, about 10% mortality was experienced. Some of the fish harvested were still at the size of fingerlings. This led to poor sales. The money generated could hardly pay for expenses incurred, the PMC members were not paid and restocking was not feasible. This led to the abandonment of the project till date. The aims and objectives of the projects were not achieved.

4.4

4.4

Sustainability

Sustainability

The sustainability of projects depends upon the ownership, interest and commitment of the beneficiaries. The interest depends however on project outcomes. Table 3 shows the summary of different project types at the time of field visit. Out of the 8 aquaculture projects implemented, 4 were considered functional whereas 4 were not while 3 out of 5 poultry projects were functional. In summary, about 35% of the projects were considered functional. Specifically, Table 4 shows the percentages of individually managed projects and PMC managed projects and their percentage functionality. Out of the 20 projects evaluated, 4 were individually managed while 16 were managed by PMCs for the communities. As seen on Table 4, out of the 4 (2 poultry, 2 fishery) individual owners managed projects, 3 were functional representing about 75%. On the other hand, 4 out of 16 PMC managed projects were functional, representing about 25%

The sustainability of projects depends upon the ownership, interest and commitment of the beneficiaries. The interest depends however on project outcomes. Table 3 shows the summary of different project types at the time of field visit. Out of the 8 aquaculture projects implemented, 4 were considered functional whereas 4 were not while 3 out of 5 poultry projects were functional. In summary, about 35% of the projects were considered functional. Specifically, Table 4 shows the percentages of individually managed projects and PMC managed projects and their percentage functionality. Out of the 20 projects evaluated, 4 were individually managed while 16 were managed by PMCs for the communities. As seen on Table 4, out of the 4 (2 poultry, 2 fishery) individual owners managed projects, 3 were functional representing about 75%. On the other hand, 4 out of 16 PMC managed projects were functional, representing about 25%

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Table 3: S/N 1 2 3 4 5

Distribution of Projects based on Functionality

Project Type Aquaculture Poultry Cassava Processing Oil Palm Processing Rice Processing Total

Functional % 4 20 3 15 0 0 0 0 0 0 7 35.0

Table 3:

Non-functional % 4 20 2 10 4 20 2 10 1 5 13 65

S/N 1 2 3 4 5

Distribution of Projects based on Functionality

Project Type Aquaculture Poultry Cassava Processing Oil Palm Processing Rice Processing Total

Source: Field Survey Table 4: S/N 1 2

No. of Projects 16 4 20

Functional Projects 4 3 7

Non-functional % 4 20 2 10 4 20 2 10 1 5 13 65

Source: Field Survey

Distribution of Projects by Management Types

Management Type PMC Individual Total

Functional % 4 20 3 15 0 0 0 0 0 0 7 35.0

Table 4:

Percentage Functionality 25 75 100

S/N 1 2

Distribution of Projects by Management Types

Management Type PMC Individual Total

No. of Projects 16 4 20

Functional Projects 4 3 7

Percentage Functionality 25 75 100

Source: Computed from field survey

Source: Computed from field survey

From the field visit, it was obvious that these projects barely survived up to one production cycle. Some of the projects implemented ended at the exit of the NGOs. Examples were the Tombia fish project and Ovrode cassava processing mill. Some of them that thrived beyond that point were not functional after one year e.g Ayama and Polaku fish farms. These findings agree with the report of an impact assessment of economic empowerment programmes carried out in 2003 whereby sustainability and effectiveness of the Projects were prominent issues as it was revealed that only 33.3% of the beneficiaries stated that they could remain in business at close out of NGOs. Also, ESR (2005) revealed that SPDC’s projects were 25% sustainable and Ogueri (2006) stated that SPDC’s rural development programmes were unsustainable even though he did not state to what extent. Sustainability of community development projects is very important in bringing about the desired change. Therefore, a critical look at the issue of management of the projects by individuals and not by a committee for the community in addition to proper funding may be useful at achieving this and other objectives.

From the field visit, it was obvious that these projects barely survived up to one production cycle. Some of the projects implemented ended at the exit of the NGOs. Examples were the Tombia fish project and Ovrode cassava processing mill. Some of them that thrived beyond that point were not functional after one year e.g Ayama and Polaku fish farms. These findings agree with the report of an impact assessment of economic empowerment programmes carried out in 2003 whereby sustainability and effectiveness of the Projects were prominent issues as it was revealed that only 33.3% of the beneficiaries stated that they could remain in business at close out of NGOs. Also, ESR (2005) revealed that SPDC’s projects were 25% sustainable and Ogueri (2006) stated that SPDC’s rural development programmes were unsustainable even though he did not state to what extent. Sustainability of community development projects is very important in bringing about the desired change. Therefore, a critical look at the issue of management of the projects by individuals and not by a committee for the community in addition to proper funding may be useful at achieving this and other objectives.

4 

Lessons

4

Lessons

Project concept generation is key to the success of community development interventions especially in conflict prone areas such as the study area; Adequate engagement of different stakeholders in community development projects at all stages of project development (Needs assessment, beneficiaries selection, Training, implementation and monitoring) is very necessary for the ‘health’ and sustainability of a project;





Adequate engagement of community members, whose projects are meant for, brings about ownership and ownership of projects ensures success and sustainability.



Adequate engagement of community members, whose projects are meant for, brings about ownership and ownership of projects ensures success and sustainability.



Adequate Business Literacy Training (BLT) for selected beneficiaries is effective in positioning them for effective management and goal attainment;



Adequate Business Literacy Training (BLT) for selected beneficiaries is effective in positioning them for effective management and goal attainment;



Provision of Take-off grant at NGOs exit in addition to proper funding of project implementation’s process is necessary to sustain the projects before they start generating adequate income;



Provision of Take-off grant at NGOs exit in addition to proper funding of project implementation’s process is necessary to sustain the projects before they start generating adequate income;



Livelihood activities that generate a very low income do not enjoy patronage from the beneficiaries as seen in Polaku fish project.



Livelihood activities that generate a very low income do not enjoy patronage from the beneficiaries as seen in Polaku fish project.



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

Project concept generation is key to the success of community development interventions especially in conflict prone areas such as the study area; Adequate engagement of different stakeholders in community development projects at all stages of project development (Needs assessment, beneficiaries selection, Training, implementation and monitoring) is very necessary for the ‘health’ and sustainability of a project;

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

Selection and choice of Contractors/NGOs for community development projects should be based on proven integrity and passion for community development. This can be assessed from the extent of compliance of such NGOs with contract terms, prompt submission of milestone reports among others.

5.



Recommendations

Selection and choice of Contractors/NGOs for community development projects should be based on proven integrity and passion for community development. This can be assessed from the extent of compliance of such NGOs with contract terms, prompt submission of milestone reports among others.

5.

Recommendations



Community Development interventions/ livelihood activities should be holistically designed taking into consideration the socio-economic and cultural factors of the people they are meant for.



Community Development interventions/ livelihood activities should be holistically designed taking into consideration the socio-economic and cultural factors of the people they are meant for.



Training of individuals should be done by qualified personnel from extension departments in the universities or State ADPs, who will develop curricula to suit the people the projects were meant for in terms of needs and gaps, and employ a standard extension teaching approaches to impart the needed knowledge in order to bring about the needed change.



Training of individuals should be done by qualified personnel from extension departments in the universities or State ADPs, who will develop curricula to suit the people the projects were meant for in terms of needs and gaps, and employ a standard extension teaching approaches to impart the needed knowledge in order to bring about the needed change.



Provision of take-off grant for projects that need some time to generate its income is necessary to take care of the wages/salaries of workers and other necessary procurements;



Provision of take-off grant for projects that need some time to generate its income is necessary to take care of the wages/salaries of workers and other necessary procurements;



Monitoring and supervision of the contractors and beneficiaries as well as on-going evaluation of projects at milestone deliverables should be seen as important as the success and sustainability of any funded community development project;



Monitoring and supervision of the contractors and beneficiaries as well as on-going evaluation of projects at milestone deliverables should be seen as important as the success and sustainability of any funded community development project;



For projects that would operate for many years and continue to produce dividend, periodic monitoring and evaluation is necessary.



For projects that would operate for many years and continue to produce dividend, periodic monitoring and evaluation is necessary.

6.

Acknowledgement

We remain indebted to Shell Nigeria for the opportunity given us to conduct this evaluation on their past community development interventions. This has widened our scope on community development strategies and has given us an out-of-class experience for effective and a balanced teaching work.

7.

References

6.

Acknowledgement

We remain indebted to Shell Nigeria for the opportunity given us to conduct this evaluation on their past community development interventions. This has widened our scope on community development strategies and has given us an out-of-class experience for effective and a balanced teaching work.

7.

References

Blowfield, M. and Frynas, J.G. (2005). Setting New Agendas: Critical Perspectives on Corporate Social Responsibility in the Developing World. International Affairs, [Online], 81(3), 499-513.

Blowfield, M. and Frynas, J.G. (2005). Setting New Agendas: Critical Perspectives on Corporate Social Responsibility in the Developing World. International Affairs, [Online], 81(3), 499-513.

Ekanem, J. T. and Inyang, E. B. (2013). Mapping the Capacity Building Process of a Corporate Social Responsibility Driven Agricultural Intervention in the Niger Delta Region, Nigeria. Journal of Agricultural Extension Vol.17 (2).

Ekanem, J. T. and Inyang, E. B. (2013). Mapping the Capacity Building Process of a Corporate Social Responsibility Driven Agricultural Intervention in the Niger Delta Region, Nigeria. Journal of Agricultural Extension Vol.17 (2).

External Stakeholders Review (ESR) (2005)

External Stakeholders Review (ESR) (2005)

Maignan, I and Ferrell, O. C.(2001) ‘Corporate Citizenship as a Marketing Instrument: Concepts, Evidence, and Research Direction’. European Journal of Marketing, 35 (3/4) 457-484

Maignan, I and Ferrell, O. C.(2001) ‘Corporate Citizenship as a Marketing Instrument: Concepts, Evidence, and Research Direction’. European Journal of Marketing, 35 (3/4) 457-484

Ogueri, E. I. (2006). Evaluation of Rural Development programmes of multinational oil corporations in Niger Delta: the case of Bayelsa and Rivers states of Nigeria. An Unpublished Ph.D Thesis, Michael okpara university of Agriculture, Umudike,Nigeria.

Ogueri, E. I. (2006). Evaluation of Rural Development programmes of multinational oil corporations in Niger Delta: the case of Bayelsa and Rivers states of Nigeria. An Unpublished Ph.D Thesis, Michael okpara university of Agriculture, Umudike,Nigeria.

Shell Petroleum Development Company (SPDC) (2005). People and the Environment: 2004 Annual Report. SPDC: Port Harcourt, Nigeria.

Shell Petroleum Development Company (SPDC) (2005). People and the Environment: 2004 Annual Report. SPDC: Port Harcourt, Nigeria.

Shell Petroleum Development Company (SPDC) (2008) .The operating Environment: 2007 Annual Report. SPDC: Port Harcourt, Nigeria.

Shell Petroleum Development Company (SPDC) (2008) .The operating Environment: 2007 Annual Report. SPDC: Port Harcourt, Nigeria.

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Shell Petroleum Development Company (SPDC) (2009). Shell’s Interest in Nigeria: 2008 Annual Report. SPDC: Port Harcourt, Nigeria.

Shell Petroleum Development Company (SPDC) (2009). Shell’s Interest in Nigeria: 2008 Annual Report. SPDC: Port Harcourt, Nigeria.

Shell Petroleum Development Company (SPDC) (2012). Shell in Nigeria: shell interests in Nigeria.

Shell Petroleum Development Company (SPDC) (2012). Shell in Nigeria: shell interests in Nigeria.

Shell Petroleum Development Company (SPDC) (2014). Our Economic Contribution: 2013 Annual Report. SPDC: Port Harcourt, Nigeria.

Shell Petroleum Development Company (SPDC) (2014). Our Economic Contribution: 2013 Annual Report. SPDC: Port Harcourt, Nigeria.

Shell Petroleum Development Company (SPDC). 2004a. People and the Environment: 2003 Annual Report. SPDC: Lagos, Nigeria.

Shell Petroleum Development Company (SPDC). 2004a. People and the Environment: 2003 Annual Report. SPDC: Lagos, Nigeria.

Shell Petroleum Development Company (SPDC). 2004b. The New Approach: Sustainable Community Development. SPDC: Lagos, Nigeria.

Shell Petroleum Development Company (SPDC). 2004b. The New Approach: Sustainable Community Development. SPDC: Lagos, Nigeria.

Shell Petroleum Development Company (SPDC). 2004c. Documentation for 2004 Stakeholders’ Workshop: 2003 Performance, 2004 Plans and Thrusts for 2005. SPDC: Lagos, Nigeria.

Shell Petroleum Development Company (SPDC). 2004c. Documentation for 2004 Stakeholders’ Workshop: 2003 Performance, 2004 Plans and Thrusts for 2005. SPDC: Lagos, Nigeria.

Acronyms

Acronyms

CDMIS – Community Development Management Information System CSR – Corporate Social Responsibility EE – Economic Empowerment ESR – External Stakeholders’ Review NDDC – Niger Delta Development Commission NGO – Non-Governmental Organization NPMC – Non Project Management Committee PMC – Project Management Committee SCD – Sustainable Community Development SDCR – Sustainable Development and Community Relations SPDC – shell Petroleum Development Company

CDMIS – Community Development Management Information System CSR – Corporate Social Responsibility EE – Economic Empowerment ESR – External Stakeholders’ Review NDDC – Niger Delta Development Commission NGO – Non-Governmental Organization NPMC – Non Project Management Committee PMC – Project Management Committee SCD – Sustainable Community Development SDCR – Sustainable Development and Community Relations SPDC – shell Petroleum Development Company

Author’s Profile

Author’s Profile

Dr. (Mrs) Jemimah Ekanem is a Lecturer in the Department of Agricultural Economics and Extension, AkwaIbom State University, (AKSU), Uyo, Nigeria. Dr. Ekanem is an Agricultural Extension Communicator and a Rural Developer. She picked interest in Rural/Community Development as an Intern with Shell Nigeria and Researched on Shell’s Corporate Social Responsibilities to their host communities in the Niger Delta Region. She has taught in institutions of higher learning for over 10 years, has many publications in revered journals, is a member of Agricultural Extension Society and other related bodies and has attended many conferences.

Dr. (Mrs) Jemimah Ekanem is a Lecturer in the Department of Agricultural Economics and Extension, AkwaIbom State University, (AKSU), Uyo, Nigeria. Dr. Ekanem is an Agricultural Extension Communicator and a Rural Developer. She picked interest in Rural/Community Development as an Intern with Shell Nigeria and Researched on Shell’s Corporate Social Responsibilities to their host communities in the Niger Delta Region. She has taught in institutions of higher learning for over 10 years, has many publications in revered journals, is a member of Agricultural Extension Society and other related bodies and has attended many conferences.

Prof. Ike Nwachukwu is a Lecturer in the Department of Agricultural Extension, Michael Okpara University of Agriculture, Umudike, Nigeria. His areas of specialization include, Development communication, Gender studies and Extension services. He has published extensively in reputed journals. He has also authored eight textbooks on agricultural extension and rural development. Ike Nwachukwu is a member of Agricultural Extension Society and other related associations.

Prof. Ike Nwachukwu is a Lecturer in the Department of Agricultural Extension, Michael Okpara University of Agriculture, Umudike, Nigeria. His areas of specialization include, Development communication, Gender studies and Extension services. He has published extensively in reputed journals. He has also authored eight textbooks on agricultural extension and rural development. Ike Nwachukwu is a member of Agricultural Extension Society and other related associations.

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Design model: Reinventing Social Competance In Campus

Design model: Reinventing Social Competance In Campus

Sanjana Mathew1, K V Ashwin2 Final semester B.E (B.T), PESIT, Bangalore 1 [email protected], [email protected]

Sanjana Mathew1, K V Ashwin2 Final semester B.E (B.T), PESIT, Bangalore 1 [email protected], [email protected]

1,2

1,2

Abstract

Abstract

Corporate social responsibility (CSR) has undergone much metamorphosis in the recent years. This dynamic change in CSR could be attributed to noted Economist and Nobel Laureate Milton Friedman, who conceived CSR movement. He i n s i s t s that business has responsibilities not only to share holders but also to stakeholders, customers, employees, suppliers, society at large and to the environment. Although CSR initiatives are expected to be practical programs, recent trends prove that CSR has become a mere cosmetic exercise. Private c o m p a n i e s while maximizing their growth, have responsibilities towards the society from which they draw the resources and labor. Equitable and sustainable growth of the country should be an important agenda in their strategic planning. Educational institutions also have a social responsibility to the society from which they draw resources. Keywords: Stakeholders, institutions, sustainable.

Corporate social responsibility (CSR) has undergone much metamorphosis in the recent years. This dynamic change in CSR could be attributed to noted Economist and Nobel Laureate Milton Friedman, who conceived CSR movement. He i n s i s t s that business has responsibilities not only to share holders but also to stakeholders, customers, employees, suppliers, society at large and to the environment. Although CSR initiatives are expected to be practical programs, recent trends prove that CSR has become a mere cosmetic exercise. Private c o m p a n i e s while maximizing their growth, have responsibilities towards the society from which they draw the resources and labor. Equitable and sustainable growth of the country should be an important agenda in their strategic planning. Educational institutions also have a social responsibility to the society from which they draw resources. Keywords: Stakeholders, institutions, sustainable.

1. Introduction

1. Introduction

India has made it mandatory that organizations play a defining role in the society and apply ethical and responsible standards. In compliance with governmental guidance, several organizations have set up CSR coordinators and channelize funds to favor CSR programs. Stakeholders are individuals whose opinions and actions affect the organization‟s performance. Stakeholders could be voluntary or involuntary and internal or external. The stakeholder theory establishes that all stakeholders must be considered in the decision making process Clarkson (1995). It suggests that the voluntary stakeholders include shareholders, investors, employees, managers, customers and suppliers and they will require some value addition otherwise they can withdraw their stake and choose not to invest in that organization again. It is argued that involuntary stakeholders such as individuals, communities, ecological environments, or future generations do not choose to deal with the organization and may need some protection through government legislations. CSR is a way in which individuals understand holistically the economic, social and environmental imperatives; drawing a line between CSR and charity, sponsorship or philanthropy is much needed. Even though the latter aid in poverty alleviation, the concept of CSR goes m u c h beyond that. CSR initiatives in educational institutions not only aid in inculcating the right values in the student but also create awareness at an early age on the community needs and civic responsibilities, thereby contributing positively to the societal growth and sustainability. Today‟s youngsters are tomorrow‟s leaders. Therefore CSR in campuses is equal to economic, social, legal and philanthropic responsibilities enhancement among students. The main aim of this paper is to provide a model of an integrative framework of sustainable CSR practices in college campuses. It includes the design model which is developed and practiced in one of the most well known and comprehensive university in Bangalore, India.

India has made it mandatory that organizations play a defining role in the society and apply ethical and responsible standards. In compliance with governmental guidance, several organizations have set up CSR coordinators and channelize funds to favor CSR programs. Stakeholders are individuals whose opinions and actions affect the organization‟s performance. Stakeholders could be voluntary or involuntary and internal or external. The stakeholder theory establishes that all stakeholders must be considered in the decision making process Clarkson (1995). It suggests that the voluntary stakeholders include shareholders, investors, employees, managers, customers and suppliers and they will require some value addition otherwise they can withdraw their stake and choose not to invest in that organization again. It is argued that involuntary stakeholders such as individuals, communities, ecological environments, or future generations do not choose to deal with the organization and may need some protection through government legislations. CSR is a way in which individuals understand holistically the economic, social and environmental imperatives; drawing a line between CSR and charity, sponsorship or philanthropy is much needed. Even though the latter aid in poverty alleviation, the concept of CSR goes m u c h beyond that. CSR initiatives in educational institutions not only aid in inculcating the right values in the student but also create awareness at an early age on the community needs and civic responsibilities, thereby contributing positively to the societal growth and sustainability. Today‟s youngsters are tomorrow‟s leaders. Therefore CSR in campuses is equal to economic, social, legal and philanthropic responsibilities enhancement among students. The main aim of this paper is to provide a model of an integrative framework of sustainable CSR practices in college campuses. It includes the design model which is developed and practiced in one of the most well known and comprehensive university in Bangalore, India.

1.1 Objectives

1.1 Objectives

1. 2. 3. 4. 5.

To design a framework for Collegiate Social Responsibility process and its practices in campuses. To encourage desired sustainable development by ways of pro bono volunteering by students and teachers alike. To learn innovative, feasible practices in organizing and managing activities related to sustainability and development and to contribute effectively to the program me‟s successful implementation. Empowering individuals and communities in benchmarking value creation, capacity building and other life skills. To nurture the culture of social inclusion and societal empowerment among peers.

1.2 Research design

1. 2. 3. 4. 5.

To design a framework for Collegiate Social Responsibility process and its practices in campuses. To encourage desired sustainable development by ways of pro bono volunteering by students and teachers alike. To learn innovative, feasible practices in organizing and managing activities related to sustainability and development and to contribute effectively to the program me‟s successful implementation. Empowering individuals and communities in benchmarking value creation, capacity building and other life skills. To nurture the culture of social inclusion and societal empowerment among peers.

1.2 Research design

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A practiced, experienced, revised and modified novel design frame work is used here. This frame work is an outcome of three years of practicing CSR activities in a well known institute of Technology College in Bangalore.

A practiced, experienced, revised and modified novel design frame work is used here. This frame work is an outcome of three years of practicing CSR activities in a well known institute of Technology College in Bangalore.

1.3 Conclusions and findings

1.3 Conclusions and findings

Practicing this model framework, in implementing CSR practices in campus for the past three years found that it likely to be effective and enterprising for both the volunteers as well as for the institute. Though the program me contributed towards nurturing and enhancing altruistic thinking feeling and behaviors among the committed volunteers, limitations in terms of implementing the charted calendar of events as well as consistent and continuous participation by few volunteers were found impractical mainly due to the rigorous and vigorous academic schedules.

Practicing this model framework, in implementing CSR practices in campus for the past three years found that it likely to be effective and enterprising for both the volunteers as well as for the institute. Though the program me contributed towards nurturing and enhancing altruistic thinking feeling and behaviors among the committed volunteers, limitations in terms of implementing the charted calendar of events as well as consistent and continuous participation by few volunteers were found impractical mainly due to the rigorous and vigorous academic schedules.

2. Definition of CSR

2. Definition of CSR

CSR has stemmed from its original US setting (Bowen, 1953) to become a global concept (Matten & Crane, 2005; Scherer & Palazzo, 2007). It is necessary that the firm line up its CSR goals and decisionmaking with its overall goals and strategies.So taking CSR consideration into account in corporate decision making becomes as natural as taking customer perspectives into account(Government of Canada,2006). A CSR program must align with values, norms, mission of the organization (Maignan et al., 2005). According to the UNIDO, “Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders [6]. CSR is commonly understood as being the way through which an organization accomplishes a balance of economic, environmental and social imperatives while at the same time addressing the expectations of shareholders as well as stakeholders. In this sense it is important to draw a distinction between CSR, which can be a strategic business management concept, and charity, sponsorships or philanthropy. Even though the latter can also make a valuable contribution to poverty reduction, will directly enhance the reputation of a company and strengthen its brand, the concept of CSR clearly goes beyond that.”(UNIDO).

CSR has stemmed from its original US setting (Bowen, 1953) to become a global concept (Matten & Crane, 2005; Scherer & Palazzo, 2007). It is necessary that the firm line up its CSR goals and decisionmaking with its overall goals and strategies.So taking CSR consideration into account in corporate decision making becomes as natural as taking customer perspectives into account(Government of Canada,2006). A CSR program must align with values, norms, mission of the organization (Maignan et al., 2005). According to the UNIDO, “Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders [6]. CSR is commonly understood as being the way through which an organization accomplishes a balance of economic, environmental and social imperatives while at the same time addressing the expectations of shareholders as well as stakeholders. In this sense it is important to draw a distinction between CSR, which can be a strategic business management concept, and charity, sponsorships or philanthropy. Even though the latter can also make a valuable contribution to poverty reduction, will directly enhance the reputation of a company and strengthen its brand, the concept of CSR clearly goes beyond that.”(UNIDO).

According to the World Business Council for Sustainable Development (WBCSD) [7], CSR is the ethical behavior of a company towards society management acting responsibly in its relationships with other stakeholders who have a legitimate interest in the business, and it is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. “Every large corporation should be thought of as a social enterprise; that is an entity whose existence and decisions can be justified so far as they serve public or social purposes.” Dahl [2].Carroll (1979) defines CSR as “business encompasses the economic, legal, ethical and discretionary expectations that society has of organization at a given point in time”. More recently this was echoed by Balabanis, Phillips and Lyall (1998), who declared that: “in the modern commercial area, companies and their managers are subjected to well publicize pressure to play an increasingly active role in the welfare of society.” Tony Blair, UK Prime Minister, May 2000 said, “We are now, more than ever, aware of the potentially negative impact of business on the environment, whatever the nature or size of the business. There can only be positive results from developing sustainability – from benefiting your own bottom line to benefiting tomorrow‟s industry to benefiting the environment in which we all live.” Despite the fact that there is no unanimous definition of CSR, the idea of CSR is supposed to be an impact causing initiative. Although CSR encompasses philanthropy, CSR aims at creating responsible and socially relevant organizations.

According to the World Business Council for Sustainable Development (WBCSD) [7], CSR is the ethical behavior of a company towards society management acting responsibly in its relationships with other stakeholders who have a legitimate interest in the business, and it is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. “Every large corporation should be thought of as a social enterprise; that is an entity whose existence and decisions can be justified so far as they serve public or social purposes.” Dahl [2].Carroll (1979) defines CSR as “business encompasses the economic, legal, ethical and discretionary expectations that society has of organization at a given point in time”. More recently this was echoed by Balabanis, Phillips and Lyall (1998), who declared that: “in the modern commercial area, companies and their managers are subjected to well publicize pressure to play an increasingly active role in the welfare of society.” Tony Blair, UK Prime Minister, May 2000 said, “We are now, more than ever, aware of the potentially negative impact of business on the environment, whatever the nature or size of the business. There can only be positive results from developing sustainability – from benefiting your own bottom line to benefiting tomorrow‟s industry to benefiting the environment in which we all live.” Despite the fact that there is no unanimous definition of CSR, the idea of CSR is supposed to be an impact causing initiative. Although CSR encompasses philanthropy, CSR aims at creating responsible and socially relevant organizations.

Multitudes of different definitions exist for CSR. The plethora of definitions for CSR, each of them right in their own context needs to be defined from an educational institute‟s perspective and also the organizations view on its social responsibilities as well; CSR in an academic setting is an institution of likeminded students, aimed at creating holistic growth to the society via community development initiatives. It also promotes individual student‟s life skills such as confidence building, team work, team spirit and interpersonal skills, leadership skills events management skills. It increases sociability, capacity building and also adds to the skills and knowledge about the damaging global environmental issues, violence and atrocities and the factual

Multitudes of different definitions exist for CSR. The plethora of definitions for CSR, each of them right in their own context needs to be defined from an educational institute‟s perspective and also the organizations view on its social responsibilities as well; CSR in an academic setting is an institution of likeminded students, aimed at creating holistic growth to the society via community development initiatives. It also promotes individual student‟s life skills such as confidence building, team work, team spirit and interpersonal skills, leadership skills events management skills. It increases sociability, capacity building and also adds to the skills and knowledge about the damaging global environmental issues, violence and atrocities and the factual

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realities of the world around them., However, CSR must not be viewed as an alternative to philanthropy but as a personal involvement of sorts to impact the community around positively. Hence we defined, “Collegiate Social Responsibility as a tool and resource to grow to be a self-contained and socially responsible individual, who gets trained to face the real life sustainable developmental needs and partially or wholly equipped with and to deal with community concerns around them”. [PES, 2012-2015].

Capacity Building

PESIT/ PESU (Shareholders)

Corporate Social Responsibility

realities of the world around them., However, CSR must not be viewed as an alternative to philanthropy but as a personal involvement of sorts to impact the community around positively. Hence we defined, “Collegiate Social Responsibility as a tool and resource to grow to be a self-contained and socially responsible individual, who gets trained to face the real life sustainable developmental needs and partially or wholly equipped with and to deal with community concerns around them”. [PES, 2012-2015].

Capacity Building

Students & Faculty

PESIT/ PESU (Shareholders)

(Stakeholders)

Value Creation

Value Creation

Better Retention

Better Retention

Figure 1: Definition of Collegiate Social Responsibility 3.

Corporate Social Responsibility

Design frame work

Students & Faculty (Stakeholders)

Figure 1: Definition of Collegiate Social Responsibility 3.

Design frame work

This paper suggests a methodological framework from an educational institute‟s perspective that can be followed by educational organizations to implement the CSR program at their campuses. The idea of CSR was conceived by our CEO, as a part of the silver jubilee celebration themes at PES Institute of Technology. This management perception resulted from personally oriented social values of our CEO, Prof. Jawahar. The institute has a clear social purpose-of working towards an equitable, humane and sustainable society. The university is committed towards developing and conducting contextual researches and strengthening the capacities of its stake holders. The credibility of the organizations depends largely on the implementation of the ideas as much as they do on the idea itself. The vision of PESIT coupled with its USP helps to bring positive difference to the under-privileged in the neighborhood and helps highlight the importance of CSR in like-minded educational institutes.

This paper suggests a methodological framework from an educational institute‟s perspective that can be followed by educational organizations to implement the CSR program at their campuses. The idea of CSR was conceived by our CEO, as a part of the silver jubilee celebration themes at PES Institute of Technology. This management perception resulted from personally oriented social values of our CEO, Prof. Jawahar. The institute has a clear social purpose-of working towards an equitable, humane and sustainable society. The university is committed towards developing and conducting contextual researches and strengthening the capacities of its stake holders. The credibility of the organizations depends largely on the implementation of the ideas as much as they do on the idea itself. The vision of PESIT coupled with its USP helps to bring positive difference to the under-privileged in the neighborhood and helps highlight the importance of CSR in like-minded educational institutes.

This program was renamed as Collegiate Social Responsibility as it included college students and their civic concerns. The design process at PESIT considers students as an integral part of the program.

This program was renamed as Collegiate Social Responsibility as it included college students and their civic concerns. The design process at PESIT considers students as an integral part of the program.

3.1 The structure of the Collegiate Social Responsibility club of PESIT

3.1 The structure of the Collegiate Social Responsibility club of PESIT

This Collegiate Social Responsibility club framework consists of the following structure in sequence:

This Collegiate Social Responsibility club framework consists of the following structure in sequence:

Creating awareness and orientation amongst freshmen:

Creating awareness and orientation amongst freshmen:

Initial awareness campaign and motivation involved talk by the CSR club faculty coordinators which helped in attracting, screening and selecting qualified student volunteers.. Welcoming new volunteers and making them feel at home, helps them prepare for their roles in a more involved way. Motivated students at PES attended the orientation and most of them enrolled themselves in the club. Creating awareness about the social

Initial awareness campaign and motivation involved talk by the CSR club faculty coordinators which helped in attracting, screening and selecting qualified student volunteers.. Welcoming new volunteers and making them feel at home, helps them prepare for their roles in a more involved way. Motivated students at PES attended the orientation and most of them enrolled themselves in the club. Creating awareness about the social

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responsibilities of students included using audio visual aids oral presentations and informal interactions to the entire classes of freshmen, Professional counseling psychologists were the initiators of the CSR in this campus. Interactions and motivational speeches involved information on how this program is going to benefit the volunteer and how to find time in the vigorous and rigorous academic curricula, how to register for the programs and also the policies and procedures of CSR as a program in the campus. Raised awareness regarding CSR within the organization

responsibilities of students included using audio visual aids oral presentations and informal interactions to the entire classes of freshmen, Professional counseling psychologists were the initiators of the CSR in this campus. Interactions and motivational speeches involved information on how this program is going to benefit the volunteer and how to find time in the vigorous and rigorous academic curricula, how to register for the programs and also the policies and procedures of CSR as a program in the campus. Raised awareness regarding CSR within the organization





Enrollment Enthusiastic, committed volunteers register themselves on a pre-announced date and time in a particular venue

@ PES

@ PES

Figure 1 Overview of proposed CSR methodology (implemented at PESIT) 



Survey To provide community development programs surveys are conducted and the needs are identified. The needs are classified and prioritized based on the survey analysis, calendar of events are prepared for the year. Plan

Figure 1 Overview of proposed CSR methodology (implemented at PESIT) 



Activities are planned based on the above survey and also based on the academic calendar for the year, programs are scheduled keeping in mind that activities are not falling two weeks prior the continuous internal assessments and examinations. A master plan is prepared is prepared for the scheduled program by the volunteering leader. The master plan includes the number of volunteers to be registered for the program, the proposed expenditure and events of the program. A budget proposal is prepared by the student leader of the program under the supervision of the faculty coordinator. The proposed budget is submitted for approval and sanction to the higher authorities.  

Enrollment Enthusiastic, committed volunteers register themselves on a pre-announced date and time in a particular venue

Executing the plan The plans are executed as per the decided master plan Report Post event evaluation of the conducted program, its merits and gaps are analyzed by the leaders and faculty volunteer using feedback mechanisms. Combative measures to fill the occurred gaps and steps to prevent recurrence of these gaps are discussed and implemented in the future programs. A written report about the program is documented and submitted to higher authorities for their comments and evaluation. Feedbacks are taken to improve the programs. The course of action

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Survey To provide community development programs surveys are conducted and the needs are identified. The needs are classified and prioritized based on the survey analysis, calendar of events are prepared for the year. Plan Activities are planned based on the above survey and also based on the academic calendar for the year, programs are scheduled keeping in mind that activities are not falling two weeks prior the continuous internal assessments and examinations. A master plan is prepared is prepared for the scheduled program by the volunteering leader. The master plan includes the number of volunteers to be registered for the program, the proposed expenditure and events of the program. A budget proposal is prepared by the student leader of the program under the supervision of the faculty coordinator. The proposed budget is submitted for approval and sanction to the higher authorities.

 

Executing the plan The plans are executed as per the decided master plan Report Post event evaluation of the conducted program, its merits and gaps are analyzed by the leaders and faculty volunteer using feedback mechanisms. Combative measures to fill the occurred gaps and steps to prevent recurrence of these gaps are discussed and implemented in the future programs. A written report about the program is documented and submitted to higher authorities for their comments and evaluation. Feedbacks are taken to improve the programs. The course of action

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•Awareness •Motivation

Enrollment •Orientation •Discussion

•Governing Body •Active Volunteers

CSR Student Body

Student

•Awareness •Motivation

Enrollment •Orientation •Discussion

•Governing Body •Active Volunteers

CSR Student Body

Student

Figure 2 Establishing a CSR team

Figure 2 Establishing a CSR team

Following the awareness campaign for freshmen and enrolment of interested student volunteers who registered themselves for the program me, volunteers were selected as leaders of specific branches like mechanical,biotech,computerscience,electrical,electronics,telecom and information science or to do active volunteering based on their administrative abilities, social interests ,commitment and leadership abilities. What‟s up groups are created by the leaders of the respective branch to make easy communications among the group members. The leaders along with the active volunteers conduct preliminary survey on the local community needs. Following which the needs were classified and prioritized and prepared a document on the identified community issues were prepared as a data base for reference. This data was used as the base to plan CSR programs for the year. The project is planned keeping in view the timeframe, budget, local imperatives and impact on the local community. SWOT analysis (strengths, weakness, opportunities and threats) is routinely performed by students. Based on the prioritized needs and plan ,a calendar of events is prepared for the year by the leaders in collaboration with the faculty coordinators. A budget proposal prepared by the leaders and approved by the faculty coordinator need to be submitted to the management for approval and sanctioning for each program me .The budget proposal is submitted by the faculty coordinator the faculty coordinator. The academic council allocates resources. The program me is announced. Interested participant‟s inclusion in the event is done through registering voluntarily for the programme.A first come first included policy is used to identify the volunteers to carry out the program. They could register through the branch leader. A minimum participation of four programme per year is mandatory for the volunteer to obtain a certificate at the end of their course (4th year).

Following the awareness campaign for freshmen and enrolment of interested student volunteers who registered themselves for the program me, volunteers were selected as leaders of specific branches like mechanical,biotech,computerscience,electrical,electronics,telecom and information science or to do active volunteering based on their administrative abilities, social interests ,commitment and leadership abilities. What‟s up groups are created by the leaders of the respective branch to make easy communications among the group members. The leaders along with the active volunteers conduct preliminary survey on the local community needs. Following which the needs were classified and prioritized and prepared a document on the identified community issues were prepared as a data base for reference. This data was used as the base to plan CSR programs for the year. The project is planned keeping in view the timeframe, budget, local imperatives and impact on the local community. SWOT analysis (strengths, weakness, opportunities and threats) is routinely performed by students. Based on the prioritized needs and plan ,a calendar of events is prepared for the year by the leaders in collaboration with the faculty coordinators. A budget proposal prepared by the leaders and approved by the faculty coordinator need to be submitted to the management for approval and sanctioning for each program me .The budget proposal is submitted by the faculty coordinator the faculty coordinator. The academic council allocates resources. The program me is announced. Interested participant‟s inclusion in the event is done through registering voluntarily for the programme.A first come first included policy is used to identify the volunteers to carry out the program. They could register through the branch leader. A minimum participation of four programme per year is mandatory for the volunteer to obtain a certificate at the end of their course (4th year).

Project •Faculty

CSR Team

•Background study •Plan

Project •Decide calender of event •Allocate resources Event and resource persons

•Faculty

CSR Team

•Background study •Plan

•Decide calender of event •Allocate resources Event and resource persons

Figure 3 Ideating a CSR activity

Figure 3 Ideating a CSR activity

Implementation of an event forms the most crucial part of a program. In order to ensure a successful implementation, creating awareness amongst both the volunteers and the local community is essential. A communication strategy is chalked to disseminate information to stakeholders. Following implementation an

Implementation of an event forms the most crucial part of a program. In order to ensure a successful implementation, creating awareness amongst both the volunteers and the local community is essential. A communication strategy is chalked to disseminate information to stakeholders. Following implementation an

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evaluation on the plus and minus points were discussed and gaps identified and this helps in better future planning.

Event

Execution

evaluation on the plus and minus points were discussed and gaps identified and this helps in better future planning.

Awareness Recognition through Media

Event

Execution

Awareness Recognition through Media

Figure 4 Activity Implementation

Figure 4 Activity Implementation

Reporting post event is vital for understanding the impact of the CSR program. Volunteers evaluate the CSR program based on the response from local community, the post activity survey they undertake and by sort talks with other stakeholders. Progress report are studied and any fallacies or gaps in project implementation are noted diligently to prevent repetition

Reporting post event is vital for understanding the impact of the CSR program. Volunteers evaluate the CSR program based on the response from local community, the post activity survey they undertake and by sort talks with other stakeholders. Progress report are studied and any fallacies or gaps in project implementation are noted diligently to prevent repetition

Volunteers take interest in reporting the complete CSR program and include financial details for further reference. To ensure that the allocated funds were rightly utilized, the governing body holds a meeting after the CSR program with the volunteers. Reports on volunteers‟ experiences are shared on the college magazines, newsletters and media. Dedicated volunteers are felicitated, post every CSR program. CSR programs must stress on making volunteering attracted by developing a recognition framework, this is vital when the volunteers are not provided financial incentives. CSR activities are graded keeping in mind the need for continuous overall improvement.

Volunteers take interest in reporting the complete CSR program and include financial details for further reference. To ensure that the allocated funds were rightly utilized, the governing body holds a meeting after the CSR program with the volunteers. Reports on volunteers‟ experiences are shared on the college magazines, newsletters and media. Dedicated volunteers are felicitated, post every CSR program. CSR programs must stress on making volunteering attracted by developing a recognition framework, this is vital when the volunteers are not provided financial incentives. CSR activities are graded keeping in mind the need for continuous overall improvement.

4.

The CSR management in PESIT

4.

The CSR management in PESIT

Academic Council

Academic Council

Faculty coordinator

Faculty coordinator

coordinator

coordinator

Volunteers Class Leaders

Event Leaders

Volunteers Class Leaders

Event Leaders

Figure 5 CSR management structure

Figure 5 CSR management structure

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The organizational structure at PES is flat and evenly spaced with decentralization of power, to make project implementation easier and reduce bureaucracy. Active volunteers and members of the governing body meet regularly at campus to chalk CSR programs, also students use Google groups and other media platforms. The top level management stresses on providing autonomy to the students and the faculty coordinators ensure that students balance their academics with volunteering activity. Faculty coordinators mediate between management and students, ideate and supervise CSR programs, guide the governing body and collaborate rightly with the local community.

The organizational structure at PES is flat and evenly spaced with decentralization of power, to make project implementation easier and reduce bureaucracy. Active volunteers and members of the governing body meet regularly at campus to chalk CSR programs, also students use Google groups and other media platforms. The top level management stresses on providing autonomy to the students and the faculty coordinators ensure that students balance their academics with volunteering activity. Faculty coordinators mediate between management and students, ideate and supervise CSR programs, guide the governing body and collaborate rightly with the local community.

James Cunningham and Brain Harney (2012) argue that ‘while CSR depends on being a good corporate citizen and addressing every social harm the business creates, strategic CSR is far more selective’. In P-K's framework the interdependence between business and society takes two forms framework: "inside-out linkages" where company operations impact society and "outside-in linkages" where external societal forces impact companies. They believe that although companies are called on to address hundreds of social issues, „only a few represent opportunities to make a real difference to society or to confer a competitive advantage’. [9].At PES the policies of CSR are developed by „Top Management awareness‟ [1] whose work encompasses to:

James Cunningham and Brain Harney (2012) argue that ‘while CSR depends on being a good corporate citizen and addressing every social harm the business creates, strategic CSR is far more selective’. In P-K's framework the interdependence between business and society takes two forms framework: "inside-out linkages" where company operations impact society and "outside-in linkages" where external societal forces impact companies. They believe that although companies are called on to address hundreds of social issues, „only a few represent opportunities to make a real difference to society or to confer a competitive advantage’. [9].At PES the policies of CSR are developed by „Top Management awareness‟ [1] whose work encompasses to:

Decide on the role, direction and strategy of CSR Allocate resources and monitor the performance of CSR Club periodically

Decide on the role, direction and strategy of CSR Allocate resources and monitor the performance of CSR Club periodically

Developing and integration of genuine CSR vision is characterized either as a reactive or resulting in external pressures from environment or proactive in case of the increasing weight of personal values, but may also be championed, inspired by managers or employees on socially oriented personal values (Hemingway,2005; Hemingway & Maclagan,2004).

Developing and integration of genuine CSR vision is characterized either as a reactive or resulting in external pressures from environment or proactive in case of the increasing weight of personal values, but may also be championed, inspired by managers or employees on socially oriented personal values (Hemingway,2005; Hemingway & Maclagan,2004).

Established a working vision, mission and core corporate values for CSR.

Established a working vision, mission and core corporate values for CSR.

The CSR policy was defined based on social and environmental imperatives. Based on the vision and mission CSR policies were developed structured

The CSR policy was defined based on social and environmental imperatives. Based on the vision and mission CSR policies were developed structured

Mission: To provide students with understanding of ethics and values and a commitment to law and morality, an appreciation of human creativity and an analytical and enquiring mind.

Mission: To provide students with understanding of ethics and values and a commitment to law and morality, an appreciation of human creativity and an analytical and enquiring mind.

Vision: The vision of our university is to create professionally superior and ethically strong global manpower. To enhance this vision CSR participation helps the student to reach out, help and give hope, care to people in need by identifying sustainable projects, planning ,implementation and evaluation and thus providing opportunities, guidance, motivation to the student volunteers through these programs. Thus this group creates well-equipped, responsible social volunteers and leaders to create positive change in the society .

Vision: The vision of our university is to create professionally superior and ethically strong global manpower. To enhance this vision CSR participation helps the student to reach out, help and give hope, care to people in need by identifying sustainable projects, planning ,implementation and evaluation and thus providing opportunities, guidance, motivation to the student volunteers through these programs. Thus this group creates well-equipped, responsible social volunteers and leaders to create positive change in the society .







Ideated a CSR program  The need, relevance and impact of the CSR program must be considered  This must be coupled by survey and other radical information Implement the CSR program  Based on resource availability and volunteer strength, the scale of the CSR program is planned and executed  Buffer time in case of unexpected outcomes is chalked out Monitor and Evaluate program outcome  Based on the CSR activity, a monitoring schedule is prepared. CSR activity is evaluated on a scale of 10 based on impact, volunteers‟ enthusiasm and usage of resources [8]  Based on the recipients and participants feedback, the CSR report is tailored and a consolidated report is maintained for reference  Repository-Reporting and maintain records of CSR activity and its outcome.

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





Ideated a CSR program  The need, relevance and impact of the CSR program must be considered  This must be coupled by survey and other radical information Implement the CSR program  Based on resource availability and volunteer strength, the scale of the CSR program is planned and executed  Buffer time in case of unexpected outcomes is chalked out Monitor and Evaluate program outcome  Based on the CSR activity, a monitoring schedule is prepared. CSR activity is evaluated on a scale of 10 based on impact, volunteers‟ enthusiasm and usage of resources [8]  Based on the recipients and participants feedback, the CSR report is tailored and a consolidated report is maintained for reference  Repository-Reporting and maintain records of CSR activity and its outcome.

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4.1 Results and implications

4.1 Results and implications

The following are the activities which took place in the year August 2014-March 2015 4.1.1 Orientation and inauguration of CSR 2014-2015

The following are the activities which took place in the year August 2014-March 2015 4.1.1 Orientation and inauguration of CSR 2014-2015

An orientation program me was organized in the beginning of the academic year following the awareness campaign. Volunteers were registered. More than 150 freshman volunteered to register. The program me was inaugurated by the registrar of the university. A mime played by the senior CSR members conveyed the objectives of the club. Pledge on CSR was taken by the entire audience displayed the team spirit among the members. The seniors who were completing 3 years in CSR were awarded with certificates for their commitment and services.

An orientation program me was organized in the beginning of the academic year following the awareness campaign. Volunteers were registered. More than 150 freshman volunteered to register. The program me was inaugurated by the registrar of the university. A mime played by the senior CSR members conveyed the objectives of the club. Pledge on CSR was taken by the entire audience displayed the team spirit among the members. The seniors who were completing 3 years in CSR were awarded with certificates for their commitment and services.

Orientation

Orientation Blood Donation Camp

Swachh Bharat

Village Health Care Program

Samrakshan Part 2

School Deveoplemt Program

Samrakshan Part 1

Blood Donation Camp

Swachh Bharat

Village Health Care Program

Samrakshan Part 2

School Deveoplemt Program

Samrakshan Part 1

Figure 8: Activities 2014-2015

Figure 8: Activities 2014-2015

FIG:9 Orientation &inauguration CSR club 2014 -15

FIG:9 Orientation &inauguration CSR club 2014 -15

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4.1.2 SAMRAKSHAN 2014: (save the earth)

4.1.2 SAMRAKSHAN 2014: (save the earth)

To the save the environment as a green initiative Samrakhsnan Part 1 and Part 2 were conducted during both the semesters to create awareness on environmental pollution and its prevention. Awareness was created using play cards, rallies, creative arts and by speakers on the topic. The oldest environmentalist in Bangalore was identified and was rewarded. He is 80 now and he shared his experiences which the participants could follow and model. In-campus march past was conducted, volunteers wearing green caps and forming an S at the end of the march. The march was led by the principal, vice-chancellor and registrar of the college. Tree saplings were planted by the dignitaries as well volunteers to mark the occasion. To mark the occasion the pollution control board chairman was the chief guest. He delivered a very motivating and interesting speech to the young generation. One of the most popular Kannada film personalities was another guest of honor to make the day a remarkable one .Models on air pollution, smoking and health hazards were prepared and exhibited by the volunteers. The theme dance was on save the mother earth. More than 280 volunteers wearing green caps and rallying the campus enriched the spirit of awareness. Planting of saplings in the campus were done with enthusiasm.

To the save the environment as a green initiative Samrakhsnan Part 1 and Part 2 were conducted during both the semesters to create awareness on environmental pollution and its prevention. Awareness was created using play cards, rallies, creative arts and by speakers on the topic. The oldest environmentalist in Bangalore was identified and was rewarded. He is 80 now and he shared his experiences which the participants could follow and model. In-campus march past was conducted, volunteers wearing green caps and forming an S at the end of the march. The march was led by the principal, vice-chancellor and registrar of the college. Tree saplings were planted by the dignitaries as well volunteers to mark the occasion. To mark the occasion the pollution control board chairman was the chief guest. He delivered a very motivating and interesting speech to the young generation. One of the most popular Kannada film personalities was another guest of honor to make the day a remarkable one .Models on air pollution, smoking and health hazards were prepared and exhibited by the volunteers. The theme dance was on save the mother earth. More than 280 volunteers wearing green caps and rallying the campus enriched the spirit of awareness. Planting of saplings in the campus were done with enthusiasm.

Fig:10 Samrakshan 2014

Fig:10 Samrakshan 2014

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4.1.3 Blood Donation Camp

4.1.3 Blood Donation Camp

A social campaign to support voluntary blood donation was organized as blood donation is key to blood safety. An MOU was signed between the participating blood banks and PESIT giving emphasize on policies on the donated blood units. For example at least 40%of the blood collected from our volunteers need to be transfused to the underprivileged people who are not able to afford buying blood. NIMHANS, Red Cross Society, TTK, Manipal and Victoria blood banks participated in the camp after signing the MoU. Around 826 units of blood were collected during this year‟s blood donation drive of which a minimum 40% of it will be donated free of cost to the needy people by the above blood banks. Blood donation Camp 2014 November

A social campaign to support voluntary blood donation was organized as blood donation is key to blood safety. An MOU was signed between the participating blood banks and PESIT giving emphasize on policies on the donated blood units. For example at least 40%of the blood collected from our volunteers need to be transfused to the underprivileged people who are not able to afford buying blood. NIMHANS, Red Cross Society, TTK, Manipal and Victoria blood banks participated in the camp after signing the MoU. Around 826 units of blood were collected during this year‟s blood donation drive of which a minimum 40% of it will be donated free of cost to the needy people by the above blood banks. Blood donation Camp 2014 November

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4.1.4 Village Healthcare Program

4.1.4 Village Healthcare Program

The adopted village, Dabbaguli, is 40 kms away from the campus; there are hardly any health facilities in the village. The health camp included collection of health data, analysis, and interpretation of the data. Health education on topics like importance of girl child, importance and facilities available for higher education, hand washing techniques, preparation of home ORS were demonstrated to the villagers, specialists such as pediatrician, gynecologists, orthopedics and medical doctors were present. 226 people from the village benefitted from this camp. All school children (total number: 77) were given de worming treatment and were provided with Hawaii slippers.

The adopted village, Dabbaguli, is 40 kms away from the campus; there are hardly any health facilities in the village. The health camp included collection of health data, analysis, and interpretation of the data. Health education on topics like importance of girl child, importance and facilities available for higher education, hand washing techniques, preparation of home ORS were demonstrated to the villagers, specialists such as pediatrician, gynecologists, orthopedics and medical doctors were present. 226 people from the village benefitted from this camp. All school children (total number: 77) were given de worming treatment and were provided with Hawaii slippers.

4.1.5 School Development program in nearby government schools

4.1.5 School Development program in nearby government schools

The two urban government school children were taken care of their communication and life-skill abilities. Talent enhancement program was conducted, two senior CSR volunteers distributed Rs.2000 each, as their birthday celebration to the under privileged academically strong and deserving students. Village school was provided with clean and safe drinking water along with books and stationeries in the beginning of the academic year. Taught the students importance of cleanliness and self-reliance, students took keen interest in learning book binding skills and to prepare oral rehydration from enthusiastic volunteers of PESIT Active volunteers distributed school bags, necessary stationary materials and taught the school students to cover books and to label them. The visit encompassed a day of extra-curricular activities that included singing and dancing by the students, mesmerizing talks on their ambitions. Every week kannada speaking volunteers conducted training programmes on improving language skills, life skill training programmes and talent enhancement activities. Individual skill development activities weredoning students like slightly mentally retarded students. Family involvement in care was significantly considered in such cases. Manasiddhare Marga‟-where there is a will, there is a way.

The two urban government school children were taken care of their communication and life-skill abilities. Talent enhancement program was conducted, two senior CSR volunteers distributed Rs.2000 each, as their birthday celebration to the under privileged academically strong and deserving students. Village school was provided with clean and safe drinking water along with books and stationeries in the beginning of the academic year. Taught the students importance of cleanliness and self-reliance, students took keen interest in learning book binding skills and to prepare oral rehydration from enthusiastic volunteers of PESIT Active volunteers distributed school bags, necessary stationary materials and taught the school students to cover books and to label them. The visit encompassed a day of extra-curricular activities that included singing and dancing by the students, mesmerizing talks on their ambitions. Every week kannada speaking volunteers conducted training programmes on improving language skills, life skill training programmes and talent enhancement activities. Individual skill development activities weredoning students like slightly mentally retarded students. Family involvement in care was significantly considered in such cases. Manasiddhare Marga‟-where there is a will, there is a way.

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Above pictures diplictes MEDICAL CAMP at adopted village. 2015 January

Above pictures diplictes MEDICAL CAMP at adopted village. 2015 January

Fig:13 medical checkup in collaboration with Alexisis of BCA.

Fig:13 medical checkup in collaboration with Alexisis of BCA.

Medical checkup program me in collaboration with Alexis of BCA for the staff and students of PESU.

Medical checkup program me in collaboration with Alexis of BCA for the staff and students of PESU.

4.1.6 Cleaning is happiness (Swatch Bharat mission)

4.1.6 Cleaning is happiness (Swatch Bharat mission)

“Be the change you want to see in the world”, to implement these Gandhi an views a cleaning is happiness day was observed on second October 2014.Different departments of the college joined hand in hand to mark this cleaning drive.CSR volunteers along with others took active part in this venture. On January 25th and 26th ,CSR collaborated with an international NGO in the “Clean Lal Bagh” drive by two faculties and few students. A follow-up “clean the campus week” program will be conducted in the month of March 2015

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“Be the change you want to see in the world”, to implement these Gandhi an views a cleaning is happiness day was observed on second October 2014.Different departments of the college joined hand in hand to mark this cleaning drive.CSR volunteers along with others took active part in this venture. On January 25th and 26th ,CSR collaborated with an international NGO in the “Clean Lal Bagh” drive by two faculties and few students. A follow-up “clean the campus week” program will be conducted in the month of March 2015

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5. Challenges Faced CSR activity in any organization is a novel idea, however its implementation gives rise to challenges which could be hard to mitigate. Educational institutes also face such crisis. At PES, we found difficulty in ensuring regular meet ups between students as most of the volunteers were from various engineering branches and their classes could clash with the scheduled meetings at times. Also, spreading information to a large group of students and gathering responses; chalking a road map based on these responses were difficult. The main reason we found for this was that communication medium trends kept changing among student communities. For example we began with group mails, social medias like Facebook, linkedin and so on and then to whatsapp. The maximum group in what‟s up was comparatively small when compared to the number of volunteers. Then we went back to the old system of circulars to classes for communication. Volunteers needed extensive coaching as most lacked prior volunteering experiences. We also noticed that the information‟s related to volunteering were spread among their friends rather than the group as a whole. This sometimes lead to reduced motivation among peers who were wanting to participate in the activity and were not informed about it. It was also observed that 40% of the leaders seemed to take up the task and responsibility mainly for popularity and power. At times allocating right quantity of resources was time consuming as the volunteer turnout could not be predicted; though wastage was uncommon. Choosing the right media platform to keep in touch with the volunteers played a difficult role as often the mails would remain unread. Establishing and maintaining rapport between students of different branches and batches was crucial as this directly impacted the CSR activity. However overall the activities generated better leaders, better attitudes and better personalities.

6. Limitations and Future Research There is always lot of scope for further work. Our paper presents the impact of CSR from the view of an educational institute and cites PES institute of technology as a real time example; Though we had few collaborative works, however it does not address the collaboration between industry-institute and instituteinstitute to the fullest. We hope future work could be carried out in this regard. Further, research could be undertaken on impact of volunteerism and social activity among students and defining metrics of impact to the society. Although this paper is the first attempt to address CSR initiatives from an educational perspective, the real time approach envisaged in this paper needs to be tailored based on the demography of the organization. As a part of future research, a CSR-oriented balanced approach that offers a cause-vs-effect thinking and helps to understand various trade-off. [2] Though there were a high number of registered volunteers; having dedicated and consistent volunteers were only 60 percentage. This could be attributed to the increasing academic demand.

7. Results and Conclusions

5. Challenges Faced CSR activity in any organization is a novel idea, however its implementation gives rise to challenges which could be hard to mitigate. Educational institutes also face such crisis. At PES, we found difficulty in ensuring regular meet ups between students as most of the volunteers were from various engineering branches and their classes could clash with the scheduled meetings at times. Also, spreading information to a large group of students and gathering responses; chalking a road map based on these responses were difficult. The main reason we found for this was that communication medium trends kept changing among student communities. For example we began with group mails, social medias like Facebook, linkedin and so on and then to whatsapp. The maximum group in what‟s up was comparatively small when compared to the number of volunteers. Then we went back to the old system of circulars to classes for communication. Volunteers needed extensive coaching as most lacked prior volunteering experiences. We also noticed that the information‟s related to volunteering were spread among their friends rather than the group as a whole. This sometimes lead to reduced motivation among peers who were wanting to participate in the activity and were not informed about it. It was also observed that 40% of the leaders seemed to take up the task and responsibility mainly for popularity and power. At times allocating right quantity of resources was time consuming as the volunteer turnout could not be predicted; though wastage was uncommon. Choosing the right media platform to keep in touch with the volunteers played a difficult role as often the mails would remain unread. Establishing and maintaining rapport between students of different branches and batches was crucial as this directly impacted the CSR activity. However overall the activities generated better leaders, better attitudes and better personalities.

6. Limitations and Future Research There is always lot of scope for further work. Our paper presents the impact of CSR from the view of an educational institute and cites PES institute of technology as a real time example; Though we had few collaborative works, however it does not address the collaboration between industry-institute and instituteinstitute to the fullest. We hope future work could be carried out in this regard. Further, research could be undertaken on impact of volunteerism and social activity among students and defining metrics of impact to the society. Although this paper is the first attempt to address CSR initiatives from an educational perspective, the real time approach envisaged in this paper needs to be tailored based on the demography of the organization. As a part of future research, a CSR-oriented balanced approach that offers a cause-vs-effect thinking and helps to understand various trade-off. [2] Though there were a high number of registered volunteers; having dedicated and consistent volunteers were only 60 percentage. This could be attributed to the increasing academic demand.

7. Results and Conclusions

Though CSR activities are no guarantee for an ethical behavior, integrating such objectives in business increases self accountability to local communities and improves the quality of life for the individual himself or herself and the world around us. CSR requires decision makers to take action that protect and improve the welfare of the society as a whole along with their own instincts. The mission of CSR PESIT is to demonstrate a commitment to societal values and contribute to positive growth through voluntary contributions. CSR in educational institutes would not only increase the USP of the university but also make the students more employable and provide them essential life skills. To accelerate the impact of these social initiatives, CSR needs to be institutionalized. Through participation of faculty and students, the studentteacher relation extends beyond classrooms. Providing students with certificate of merit provides recognition. Presence of media keeps them motivated. Students gain confidence, exposure and leadership qualities when allowed to plan and execute projects. Feedback from media, sponsors, and organizers helps in chalking future course of CSR activities. The real time analysis of the CSR program shows that engaging in short conversations with local communities, carrying out frequent surveys benefited more than boardroom planning. Reviewing the newsletters, program outcomes, scientific literature proved beneficial. To conclude, it is evident that socially responsible behavior contributes to sustained growth and boosts value and asset creation. Institutionalizing CSR helps it sustain for long-term. Dangers exist that an initiative that was started

Though CSR activities are no guarantee for an ethical behavior, integrating such objectives in business increases self accountability to local communities and improves the quality of life for the individual himself or herself and the world around us. CSR requires decision makers to take action that protect and improve the welfare of the society as a whole along with their own instincts. The mission of CSR PESIT is to demonstrate a commitment to societal values and contribute to positive growth through voluntary contributions. CSR in educational institutes would not only increase the USP of the university but also make the students more employable and provide them essential life skills. To accelerate the impact of these social initiatives, CSR needs to be institutionalized. Through participation of faculty and students, the studentteacher relation extends beyond classrooms. Providing students with certificate of merit provides recognition. Presence of media keeps them motivated. Students gain confidence, exposure and leadership qualities when allowed to plan and execute projects. Feedback from media, sponsors, and organizers helps in chalking future course of CSR activities. The real time analysis of the CSR program shows that engaging in short conversations with local communities, carrying out frequent surveys benefited more than boardroom planning. Reviewing the newsletters, program outcomes, scientific literature proved beneficial. To conclude, it is evident that socially responsible behavior contributes to sustained growth and boosts value and asset creation. Institutionalizing CSR helps it sustain for long-term. Dangers exist that an initiative that was started

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with excitement frizzles out if it is not backed by timely motivation. Cramer cites that such initiatives do not survive in times of recession. The commitment of resources and rewards for efforts are powerful symbolic indications of commitment. To be sustainable such strategy must be adopted in long term decision making. CSR has moved from an idea to reality, India has put into practice a compulsory allocation of 2% of an organizations profit towards CSR programs. Companies and educational institutes also acknowledge this as a part of contemporary business practice. We would recommend the authorities to include CSR as part of cocurricular activities to cut down some of the limitations in putting into practice this novel commitment.

with excitement frizzles out if it is not backed by timely motivation. Cramer cites that such initiatives do not survive in times of recession. The commitment of resources and rewards for efforts are powerful symbolic indications of commitment. To be sustainable such strategy must be adopted in long term decision making. CSR has moved from an idea to reality, India has put into practice a compulsory allocation of 2% of an organizations profit towards CSR programs. Companies and educational institutes also acknowledge this as a part of contemporary business practice. We would recommend the authorities to include CSR as part of cocurricular activities to cut down some of the limitations in putting into practice this novel commitment.

7.1 Implications for the Institute

7.1 Implications for the Institute

The level of involvement by the institute in its CSR process instilled in socio-environmental fulfillment along with chalking the vision of the institute. Inputs from students as stakeholders contributed more involvement in the establishment of vision and mission of the institute though largely defined by the management. The activities created a wholesome idea that resulted in encompassing a positive impact on the local community..The CSR activities strengthened the branding of the institute .CSR augmented higher engagement and retention of the stakeholders.

The level of involvement by the institute in its CSR process instilled in socio-environmental fulfillment along with chalking the vision of the institute. Inputs from students as stakeholders contributed more involvement in the establishment of vision and mission of the institute though largely defined by the management. The activities created a wholesome idea that resulted in encompassing a positive impact on the local community..The CSR activities strengthened the branding of the institute .CSR augmented higher engagement and retention of the stakeholders.

7.2 Implications to volunteers

7.2 Implications to volunteers

CSR drives are one of the many ways in which the volunteers got a sense of fulfillment by polishing life skills and improved their chances of employability. For example, one of the active volunteer was placed in Microsoft with a salary of 12 lakhs per annum where she spoke mainly on her CSR activities during her interview with the company. Recognition is something that followed naturally for an ardent volunteer; which would in turn resulted in positive commitment from fellow volunteers. The most fun part of the active volunteering is that is provides a platform to meet people, understanding people as they are and learning to cope with people having divergent personalities; being core participants in the activities, the participant receives gratification of human basic needs such as recognition, motivation and being loved. No one volunteers for pure altruistic reasons, hence they ought to be mutually rewarding. These small deeds are like drops in an ocean; in a global larger perspective where the amount of satisfaction, purpose and meaning it brings to a students‟ life is colossal.

CSR drives are one of the many ways in which the volunteers got a sense of fulfillment by polishing life skills and improved their chances of employability. For example, one of the active volunteer was placed in Microsoft with a salary of 12 lakhs per annum where she spoke mainly on her CSR activities during her interview with the company. Recognition is something that followed naturally for an ardent volunteer; which would in turn resulted in positive commitment from fellow volunteers. The most fun part of the active volunteering is that is provides a platform to meet people, understanding people as they are and learning to cope with people having divergent personalities; being core participants in the activities, the participant receives gratification of human basic needs such as recognition, motivation and being loved. No one volunteers for pure altruistic reasons, hence they ought to be mutually rewarding. These small deeds are like drops in an ocean; in a global larger perspective where the amount of satisfaction, purpose and meaning it brings to a students‟ life is colossal.

8. References

8. References

Anderson, J.W., Jr. 1989. Corporate Social Responsibility: Guidelines for Top Management. New York: Quorum Books

Anderson, J.W., Jr. 1989. Corporate Social Responsibility: Guidelines for Top Management. New York: Quorum Books

Beverland, M., & Lind green, A. 2007. Implementing market orientation in firms: a multiple case study, Industrial Marketing Management, 36(4): 430-442

Beverland, M., & Lind green, A. 2007. Implementing market orientation in firms: a multiple case study, Industrial Marketing Management, 36(4): 430-442

Senge, P., Laur, J., Schley, S., & Smith, B. (2006). Learning for Sustainability. Cambridge: Society for Organizational Learning

Senge, P., Laur, J., Schley, S., & Smith, B. (2006). Learning for Sustainability. Cambridge: Society for Organizational Learning

Prof. Padmini Srinivasan, Vasanthi Srinivasan and R V Anand, 201; Status of ethics, corporate governance, CSR and environment educational in business schools in India: An exploratory study

Prof. Padmini Srinivasan, Vasanthi Srinivasan and R V Anand, 201; Status of ethics, corporate governance, CSR and environment educational in business schools in India: An exploratory study

David Crowther & Guler Aras, 2008; Corporate Social Responsibility

David Crowther & Guler Aras, 2008; Corporate Social Responsibility

http://www.unido.org/what-we-do/trade/csr/what-is-csr.html#pp1[g1]/0/

http://www.unido.org/what-we-do/trade/csr/what-is-csr.html#pp1[g1]/0/

WBCSD, ''Corporate Social Responsibility'', World Business Council for Sustainable Development, 1999

WBCSD, ''Corporate Social Responsibility'', World Business Council for Sustainable Development, 1999

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Epstein, M. and Wisner, P., ''Good Neighbours: Implementing Social and Environmental Strategies with the BSC', Balanced Scorecard Report, May – June 2001, 3:3, Massachusetts, Harvard Business School Publishing, 2001.

Epstein, M. and Wisner, P., ''Good Neighbours: Implementing Social and Environmental Strategies with the BSC', Balanced Scorecard Report, May – June 2001, 3:3, Massachusetts, Harvard Business School Publishing, 2001.

Michael Porter and Mark Kramer „Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility', Harvard Business Review, Boston, December 2006 pp78-92

Michael Porter and Mark Kramer „Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility', Harvard Business Review, Boston, December 2006 pp78-92

Author’s Profile

Author’s Profile

Sanjana Mathew aged 21, is doing final semester engineering in Biotechnology Presently doing internship. Her passion includes biology and technology and human improvement measures. She aims at becoming an expert in stem cells biology and regenerative medicine where suffering of people could be reduced. She has 3 international and 5 national papers in her credit. She is a core member of the CSR club at PESIT.

Sanjana Mathew aged 21, is doing final semester engineering in Biotechnology Presently doing internship. Her passion includes biology and technology and human improvement measures. She aims at becoming an expert in stem cells biology and regenerative medicine where suffering of people could be reduced. She has 3 international and 5 national papers in her credit. She is a core member of the CSR club at PESIT.

Ashwin K V is 21, pursuing his final semester engineering in the Department of Electrical and Electronics, PES Institute of Technology. Bangalore. His interests include design and testing electrical circuits and solar PV power systems, in addition to being an active volunteer at several CSR events. Ashwin is passionate about societal development activities.

Ashwin K V is 21, pursuing his final semester engineering in the Department of Electrical and Electronics, PES Institute of Technology. Bangalore. His interests include design and testing electrical circuits and solar PV power systems, in addition to being an active volunteer at several CSR events. Ashwin is passionate about societal development activities.

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Corporate Social Responsibility: A study of Multinational Companies in India

Corporate Social Responsibility: A study of Multinational Companies in India

B. Ramesh1, Savia Mendes2 1

Professor, Dept. of Commerce, Former President Indian Commerce Association, Goa University, Taleigao, Goa, India. 2 Research Scholar Goa University, Department of Commerce, M.E.S. College of Arts & Commerce, Zuarinagar, Goa India. 2 1 [email protected], [email protected]

B. Ramesh1, Savia Mendes2 1

Professor, Dept. of Commerce, Former President Indian Commerce Association, Goa University, Taleigao, Goa, India. 2 Research Scholar Goa University, Department of Commerce, M.E.S. College of Arts & Commerce, Zuarinagar, Goa India. 2 1 [email protected], [email protected]

Abstract

Abstract

The Ministry of Corporate Affairs (MCA) had issued Corporate Social Responsibility policy rules 2014, on 27 th February, 2014 to comply with the requirements of section 135 of the Companies’ Act 2013, which are mandatory in nature to all the Companies based on some criteria w.e.f 1st April, 2014. The CSR Rules also prescribe that in case of a foreign company that has its branch or a project office in India, CSR provision will be applicable to such offices. In this context, the study is undertaken to review the CSR initiatives taken by MNC’s in India who are also included in the umbrella of CSR under Section 135 of Companies Act 2013.This study will help the Multinational Companies (MNC’s) to project where they stand when compared to their peers, it will also help CSR stakeholder to understand how MNC’s in India have taken lead towards their CSR initiatives and this will help the companies come out with appropriate CSR project implementation. The data has been presented in the form of case studies which analyses the efforts of these MNC’s in India. This paper provides nine case studies of MNC’s in India that have been widely recognized world over and have contributed towards a social cause and brought a difference to the wellbeing of the society. The findings reveal that MNCs in India have been taking kin interest in CSR initiatives. Employment, Environment, Education, Health, Civic sense and empowerment has been the most key areas for their CSR initiatives. These companies have implemented most of their CSR activities with the help of NGOs, and local bodies.In conclusion the introduction of CSR provision in the Companies Act is a welcome step, however the inclusion of foreign companies with no clear guidelines may definitely mess the cause. The MCA will have to provide clear guidelines. It is time that will decide whether the inclusion of foreign companies was anaccurate step or not.

The Ministry of Corporate Affairs (MCA) had issued Corporate Social Responsibility policy rules 2014, on 27 th February, 2014 to comply with the requirements of section 135 of the Companies’ Act 2013, which are mandatory in nature to all the Companies based on some criteria w.e.f 1st April, 2014. The CSR Rules also prescribe that in case of a foreign company that has its branch or a project office in India, CSR provision will be applicable to such offices. In this context, the study is undertaken to review the CSR initiatives taken by MNC’s in India who are also included in the umbrella of CSR under Section 135 of Companies Act 2013.This study will help the Multinational Companies (MNC’s) to project where they stand when compared to their peers, it will also help CSR stakeholder to understand how MNC’s in India have taken lead towards their CSR initiatives and this will help the companies come out with appropriate CSR project implementation. The data has been presented in the form of case studies which analyses the efforts of these MNC’s in India. This paper provides nine case studies of MNC’s in India that have been widely recognized world over and have contributed towards a social cause and brought a difference to the wellbeing of the society. The findings reveal that MNCs in India have been taking kin interest in CSR initiatives. Employment, Environment, Education, Health, Civic sense and empowerment has been the most key areas for their CSR initiatives. These companies have implemented most of their CSR activities with the help of NGOs, and local bodies.In conclusion the introduction of CSR provision in the Companies Act is a welcome step, however the inclusion of foreign companies with no clear guidelines may definitely mess the cause. The MCA will have to provide clear guidelines. It is time that will decide whether the inclusion of foreign companies was anaccurate step or not.

Keywords: New Company Act 2013, CSR Initiatives, Multinational companies .

Keywords: New Company Act 2013, CSR Initiatives, Multinational companies .

1. Background

1. Background

Corporate social responsibility has gained a lot of momentum with the Companies Act 2013 in India and World over.The Ministry of Corporate Affairs (MCA) of India had issued Corporate Social Responsibility Voluntary Guidelines 2009 which stated that each business entity would formulate a CSR policy to guide its strategic planning and provide a roadmap for its CSR initiatives, which would be an integral part of the overall business policy and aligned with its business goals. However, the MCA had issued Corporate Social Responsibility policy rules 2014, on 27th February, 2014 to comply with the requirements of section 135 of the Companies‟ Act 2013, which are mandatory in nature to all the Companies based on some criteria w.e.f 1st April, 2014. The CSR Rules also prescribe that in case of a foreign company that has its branch or a project office in India, CSR provision will be applicable to such offices. CSR Rules further prescribe that the balance sheet and profit and loss account of a foreign company will be prepared in accordance with Section 381(1) (a) and net profit to be computed as per Section 198 of the Companies Act. No doubt Indian Companies like Tata‟s, Birla‟s, Mahindra‟s etc. have contributed tremendously for the social cause, Global Multinational Companies (MNCs) like Microsoft, Unilever have gained a lot of regards for their contribution worldwide too. In this context, the study is undertaken to review the CSR initiatives taken by MNC‟s in India who are also included in the umbrella of CSR under Section 135 of Companies Act 2013.

Corporate social responsibility has gained a lot of momentum with the Companies Act 2013 in India and World over.The Ministry of Corporate Affairs (MCA) of India had issued Corporate Social Responsibility Voluntary Guidelines 2009 which stated that each business entity would formulate a CSR policy to guide its strategic planning and provide a roadmap for its CSR initiatives, which would be an integral part of the overall business policy and aligned with its business goals. However, the MCA had issued Corporate Social Responsibility policy rules 2014, on 27th February, 2014 to comply with the requirements of section 135 of the Companies‟ Act 2013, which are mandatory in nature to all the Companies based on some criteria w.e.f 1st April, 2014. The CSR Rules also prescribe that in case of a foreign company that has its branch or a project office in India, CSR provision will be applicable to such offices. CSR Rules further prescribe that the balance sheet and profit and loss account of a foreign company will be prepared in accordance with Section 381(1) (a) and net profit to be computed as per Section 198 of the Companies Act. No doubt Indian Companies like Tata‟s, Birla‟s, Mahindra‟s etc. have contributed tremendously for the social cause, Global Multinational Companies (MNCs) like Microsoft, Unilever have gained a lot of regards for their contribution worldwide too. In this context, the study is undertaken to review the CSR initiatives taken by MNC‟s in India who are also included in the umbrella of CSR under Section 135 of Companies Act 2013.

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Corporate Social Responsibility and Sustainability is a Company‟s commitment to its stakeholders to conduct business in an economically, socially and environmentally sustainable manner that is transparent and ethical. Stakeholders include employees, investors, shareholders, customers, business partners, clients, civil society groups, Government and non-government organizations, local communities, environment and society at large. According to the World Business Council for Sustainable Development (WBCSD) defines CSR as “the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families, as well as of the community and society at large.

2. Review of Literature Parul and Gupta, (2011) state that the evolution of the relationship between companies and society has been one of slow transformation from a philanthropic coexistence to one where the mutual interest of all the stakeholders is gaining paramount importance. William and Seigal, (2010) provided the importance of CSR as a strategy of enhancing reputation of companies. The study indicated that firms selling convincing goods which comes under the umbrella of CSR activities, leads to consumer loyalty and increased revenue. Brammer, Jackson and Matten, (2012), study entitled as “Corporate Social Responsibility and institutional theory: new perspective on private governance” in Social economic review depicted that CSR is not only a voluntary action but beyond that. In this study, CSR had defined under institutional theory. The institutional theory stated that corporate social activities are not only voluntary activities but it is a part of interface between business and society. Attarwal, (2014), throws light on Hindustan Unilever profit making initiatives through CSR activities. They have adopted “Sustainable Living needs “in its corporate mission and strategy to enhance competitive advantage and the brand image with a significant social impact in its product development, sourcing and manufacturing and thus ultimately leading to higher efficiencies and profit margins known as “Project Shakti”.Linda and Jenny, (2008), indicate that whilst the CSR concepts underlying the CSR stakeholder engagement practices adopted differ in certain respects, the actual CSR stakeholder engagement and management activities of the UK and Germany firms are broadly similar.Cheung, Kun and Tan, (2012) evaluates the overall quality of corporate social responsibility, as measured by a CSR index for the Fortune 100 largest listed companies in China. The finding suggests that „doing-well‟ (more profitable) Chinese firms are likely to improve in CSR performance. This seems to support the hypothesis that is the Chinese conventional wisdom that „when you get rich then you have to be a good person‟. Biswal, (2013) states that the very evident from the Bhopal Gas leak tragedy incident in India, shows how the corporate sectors attempt for a sustainable business without responsible approach towards the society.

3. Research Gap During the process of review of literature specific studies related to MNC‟s contribution to Corporate Social Responsibility in India couldn‟t be identified. Thus, this study will be an important research contribution. This study will help the MNC‟s in India to project where they stand when compared to their peers, it will also help CSR stakeholder to understand how MNC‟s in India have taken lead towards their CSR initiatives and further, help the companies come out with appropriate CSR project implementation.

4. Objective of the study The objective of this paper is to highlight the initiatives taken by Global MNC‟s in India towards CSR. With the Companies Act 2013 International companies operating in India will also have to contribute towards CSR.

5. Methodology

Corporate Social Responsibility and Sustainability is a Company‟s commitment to its stakeholders to conduct business in an economically, socially and environmentally sustainable manner that is transparent and ethical. Stakeholders include employees, investors, shareholders, customers, business partners, clients, civil society groups, Government and non-government organizations, local communities, environment and society at large. According to the World Business Council for Sustainable Development (WBCSD) defines CSR as “the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families, as well as of the community and society at large.

2. Review of Literature Parul and Gupta, (2011) state that the evolution of the relationship between companies and society has been one of slow transformation from a philanthropic coexistence to one where the mutual interest of all the stakeholders is gaining paramount importance. William and Seigal, (2010) provided the importance of CSR as a strategy of enhancing reputation of companies. The study indicated that firms selling convincing goods which comes under the umbrella of CSR activities, leads to consumer loyalty and increased revenue. Brammer, Jackson and Matten, (2012), study entitled as “Corporate Social Responsibility and institutional theory: new perspective on private governance” in Social economic review depicted that CSR is not only a voluntary action but beyond that. In this study, CSR had defined under institutional theory. The institutional theory stated that corporate social activities are not only voluntary activities but it is a part of interface between business and society. Attarwal, (2014), throws light on Hindustan Unilever profit making initiatives through CSR activities. They have adopted “Sustainable Living needs “in its corporate mission and strategy to enhance competitive advantage and the brand image with a significant social impact in its product development, sourcing and manufacturing and thus ultimately leading to higher efficiencies and profit margins known as “Project Shakti”.Linda and Jenny, (2008), indicate that whilst the CSR concepts underlying the CSR stakeholder engagement practices adopted differ in certain respects, the actual CSR stakeholder engagement and management activities of the UK and Germany firms are broadly similar.Cheung, Kun and Tan, (2012) evaluates the overall quality of corporate social responsibility, as measured by a CSR index for the Fortune 100 largest listed companies in China. The finding suggests that „doing-well‟ (more profitable) Chinese firms are likely to improve in CSR performance. This seems to support the hypothesis that is the Chinese conventional wisdom that „when you get rich then you have to be a good person‟. Biswal, (2013) states that the very evident from the Bhopal Gas leak tragedy incident in India, shows how the corporate sectors attempt for a sustainable business without responsible approach towards the society.

3. Research Gap During the process of review of literature specific studies related to MNC‟s contribution to Corporate Social Responsibility in India couldn‟t be identified. Thus, this study will be an important research contribution. This study will help the MNC‟s in India to project where they stand when compared to their peers, it will also help CSR stakeholder to understand how MNC‟s in India have taken lead towards their CSR initiatives and further, help the companies come out with appropriate CSR project implementation.

4. Objective of the study The objective of this paper is to highlight the initiatives taken by Global MNC‟s in India towards CSR. With the Companies Act 2013 International companies operating in India will also have to contribute towards CSR.

5. Methodology

The study is based on Secondary data collected from websites. The data has been presented in the form of case studies which analyses the efforts of these MNC‟s in India. This paper provides nine case studies of MNC‟s in India that have been widely recognized world over and have contributed towards a social cause and brought a difference to the wellbeing of the society. The companies selected are Accor Hotels, Air France, Arcelor Stainless India Pvt. Ltd., BNP Paribas, LOREAL India Pvt. Ltd., Michelin India Tyres Pvt. Ltd., Renault India Pvt. Ltd., Saint Gobain India and Total Oil India Pvt. Ltd.

The study is based on Secondary data collected from websites. The data has been presented in the form of case studies which analyses the efforts of these MNC‟s in India. This paper provides nine case studies of MNC‟s in India that have been widely recognized world over and have contributed towards a social cause and brought a difference to the wellbeing of the society. The companies selected are Accor Hotels, Air France, Arcelor Stainless India Pvt. Ltd., BNP Paribas, LOREAL India Pvt. Ltd., Michelin India Tyres Pvt. Ltd., Renault India Pvt. Ltd., Saint Gobain India and Total Oil India Pvt. Ltd.

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6. Highlights of New Companies Act 2013 (Section 135): Corporate Social Responsibility 

  

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

   

All companies with a turnover of Rs.1,000 crore and more – or a net worth of Rs.500 crore and more or net profit of Rs.5 crore and more – will have to spend at least two percent of their three-year average net profit every year on CSR activities; and/or report the reason for spending or non-expenditure Section 135. The institutional coverage is Indian Companies and foreign companies operational in India. The activities can be undertaken by conducting CSR through a registered society or trust/ NGO or a Section 8 Company or company self under the Companies Act. The nature of expenditure incurred on specified activities that are carried out in India will qualify as CSR expenditure. Expenditure incurred in undertaking normal course of business will not form a part of the CSR expenditure. Any expenditure incurred in providing such training up to a ceiling of five percent in one financial year is permitted under the CSR budget. The expenditure incurred by foreign holding company for CSR activities in India will qualify as CSR spend of the Indian subsidiary if, the CSR expenditures are routed through Indian subsidiaries and if the Indian subsidiary is required to do so as per section 135 of the Companies Act. The CSR Rules further prescribe that the balance sheet and profit and loss account of a foreign company will be prepared in accordance with Section 381(1) (a) and net profit to be computed as per Section 198 of the Companies Act. The Companies need to spend CSR money in project mode with pre-defined indicators, budget, duration etc. It is mandatory for companies to disclose their CSR Policy, programs/projects undertaken and amount spent in their report and the CSR Rules provide for a separate format. The report containing details of such activities and CSR policies have to be made available on the company‟s website. The activities exclusively for the benefit of employees not to be treated as CSR. The reporting to commence from FY 2014-15. The tax treatment of CSR in accordance with IT laws. The activities which may be included by companies in their CSR policies according to Schedule VII.

6. Highlights of New Companies Act 2013 (Section 135): Corporate Social Responsibility 

  







   

All companies with a turnover of Rs.1,000 crore and more – or a net worth of Rs.500 crore and more or net profit of Rs.5 crore and more – will have to spend at least two percent of their three-year average net profit every year on CSR activities; and/or report the reason for spending or non-expenditure Section 135. The institutional coverage is Indian Companies and foreign companies operational in India. The activities can be undertaken by conducting CSR through a registered society or trust/ NGO or a Section 8 Company or company self under the Companies Act. The nature of expenditure incurred on specified activities that are carried out in India will qualify as CSR expenditure. Expenditure incurred in undertaking normal course of business will not form a part of the CSR expenditure. Any expenditure incurred in providing such training up to a ceiling of five percent in one financial year is permitted under the CSR budget. The expenditure incurred by foreign holding company for CSR activities in India will qualify as CSR spend of the Indian subsidiary if, the CSR expenditures are routed through Indian subsidiaries and if the Indian subsidiary is required to do so as per section 135 of the Companies Act. The CSR Rules further prescribe that the balance sheet and profit and loss account of a foreign company will be prepared in accordance with Section 381(1) (a) and net profit to be computed as per Section 198 of the Companies Act. The Companies need to spend CSR money in project mode with pre-defined indicators, budget, duration etc. It is mandatory for companies to disclose their CSR Policy, programs/projects undertaken and amount spent in their report and the CSR Rules provide for a separate format. The report containing details of such activities and CSR policies have to be made available on the company‟s website. The activities exclusively for the benefit of employees not to be treated as CSR. The reporting to commence from FY 2014-15. The tax treatment of CSR in accordance with IT laws. The activities which may be included by companies in their CSR policies according to Schedule VII.

7. Corporate Social Responsibility– Perspectives– Cases studies

7. Corporate Social Responsibility– Perspectives– Cases studies

We now briefly illustrate the nine different cases of MNC‟s in India whose initiatives have received broad recognition.

We now briefly illustrate the nine different cases of MNC‟s in India whose initiatives have received broad recognition.

7.1 7.1.1

7.1 7.1.1

7.1.2

Case Study One Name

:

Location of city Business activities Stakeholders engaged

: : :

Accor Hotels, India., Gurgaon Website: www.accor.com Management and Operations of Hotels Community, Employees

CSR initiatives

7.1.2

Case Study One Name

:


: : :

Accor Hotels, India., Gurgaon Website: www.accor.com Management and Operations of Hotels Community, Employees

CSR initiatives

Accor India has been supporting Nireekshana, HIV/AIDS focused NGO based in Hyderabad from 2007. This partnership was strengthened in 2009 through the Mallika Sewing Project, where women affected by HIV/AIDs are provided with an income-generating skill in traditional crafts. It lends its extensive business network to help promote and sell the products made by these women, thereby contributing to the sustainability of the program, where profits generated from the sale of products part-fund the project. It iscombating this epidemic by providing means of self-support to families affected by AIDS. According to UNICEF, India is home to the world's third largest group of people suffering from HIV/AIDS estimated 2.1 million, many of whom are poor and have little or no access to health. They are committed to fighting the disease through strategic employee-awareness initiatives and results-oriented action. Accor also, launched a vocational hospitality training programme for underprivileged children in New Delhi. This has been unveiled in association with HOPE India, a Non-Governmental Organisation (NGO) linked with US headquartered HOPE, an international NGO. Under the programme, Accor will train 35 underprivileged children in two hospitality

Accor India has been supporting Nireekshana, HIV/AIDS focused NGO based in Hyderabad from 2007. This partnership was strengthened in 2009 through the Mallika Sewing Project, where women affected by HIV/AIDs are provided with an income-generating skill in traditional crafts. It lends its extensive business network to help promote and sell the products made by these women, thereby contributing to the sustainability of the program, where profits generated from the sale of products part-fund the project. It iscombating this epidemic by providing means of self-support to families affected by AIDS. According to UNICEF, India is home to the world's third largest group of people suffering from HIV/AIDS estimated 2.1 million, many of whom are poor and have little or no access to health. They are committed to fighting the disease through strategic employee-awareness initiatives and results-oriented action. Accor also, launched a vocational hospitality training programme for underprivileged children in New Delhi. This has been unveiled in association with HOPE India, a Non-Governmental Organisation (NGO) linked with US headquartered HOPE, an international NGO. Under the programme, Accor will train 35 underprivileged children in two hospitality

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courses - kitchen and housekeeping. The objective of this initiative is to develop qualified and skilled workers for the hospitality industry.

courses - kitchen and housekeeping. The objective of this initiative is to develop qualified and skilled workers for the hospitality industry.

7.1.3 Outcome:Help to HIV/AIDS people with employment, creating skilled workers for hospitality industry.

7.1.3 Outcome:Help to HIV/AIDS people with employment, creating skilled workers for hospitality industry.

7.2

7.2

Case Study Two 7.2.1 Name

:


: : :

Air France Gurgaon Website: www.airfrance.in French Flagship Carrier – Passenger, Cargo & Maintenance Employees

7.2.2 CSR initiatives

Case Study Two 7.2.1 Name

:


: : :

Air France Gurgaon Website: www.airfrance.in French Flagship Carrier – Passenger, Cargo & Maintenance Employees


A smiling partnership for development Air France-KLM, has joined hands with Smile Foundation to support its different development initiatives. Smile Foundation works on subjects like education, health, livelihood and women and girl child empowerment, in order to be able to bring about holistic development in its target population. And in alignment with this thought exactly, Air France KLM has extended support to different subjects, with the objective of contributing to all the areas of development. The main focus being education and health of less privileged children. Air France-KLM also participated in the Airtel Delhi Half Marathon supporting Smile Foundation. Not only did they support Smile, but also in such a massive platform sensitized the privileged masses about the cause of Sending Every Child to School. They further supported womanhood with the festival of colors, at their office premises in Gurgaon. The event was also participated by all the employees at the office. The objective of this event was not only to give exposure to the girl beneficiaries but also help them in expanding their career horizons; they sensitized their own employees about how girls from less privileged backgrounds fight difficult circumstances, aspire high and achieve better lives for themselves and their families. This initiative was organized to sensitize each employee in becoming an individual advocate of the cause and act towards it in their individual capacities.

A smiling partnership for development Air France-KLM, has joined hands with Smile Foundation to support its different development initiatives. Smile Foundation works on subjects like education, health, livelihood and women and girl child empowerment, in order to be able to bring about holistic development in its target population. And in alignment with this thought exactly, Air France KLM has extended support to different subjects, with the objective of contributing to all the areas of development. The main focus being education and health of less privileged children. Air France-KLM also participated in the Airtel Delhi Half Marathon supporting Smile Foundation. Not only did they support Smile, but also in such a massive platform sensitized the privileged masses about the cause of Sending Every Child to School. They further supported womanhood with the festival of colors, at their office premises in Gurgaon. The event was also participated by all the employees at the office. The objective of this event was not only to give exposure to the girl beneficiaries but also help them in expanding their career horizons; they sensitized their own employees about how girls from less privileged backgrounds fight difficult circumstances, aspire high and achieve better lives for themselves and their families. This initiative was organized to sensitize each employee in becoming an individual advocate of the cause and act towards it in their individual capacities.

7.2.3 Outcome:focus on education, healthcare, community service and empowering girl child.

7.2.3 Outcome:focus on education, healthcare, community service and empowering girl child.

7.3 7.3.1

7.3 7.3.1

Case Study three Name

:


: : :

Arcelor Stainless India Private Limited. Mumbai Website:www.arcelormittal.com Steel production Community, Employees, and Senior Management

Case Study three Name

:


: : :

Arcelor Stainless India Private Limited. Mumbai Website:www.arcelormittal.com Steel production Community, Employees, and Senior Management



Creating environment champions ParyavaranMitra (Friends of the environment) is a sustainability and climate change education programme that intends to create 20 million friends of the environment from 200,000 schools from across India. It is a partnership between ArcelorMittal India Limited and the Centre for Environment Education for the Ministry of Environment & Forests, Govt. of India. The approach of the programme is to develop and reinforce partnerships and networks for maximization of impacts of the programme. World Environment Day ArcelorMittal India Limited observed the event on 6th June. All employees in India were given individual kits containing information materials related to environmental issues like safe use of plastic bags, management of noise, rainwater harvesting, energy conservation etc. 2. Livelihood training initiatives (682 youths impacted) ArcelorMittal India is driving skill building community, the company's efforts are more oriented to support and efforts for the local population in Jharkhand and Odisha. The initiatives include: - Industrial Technical Skills - Auxiliary Nurse Midwife - Vocational Skills - Hair dressing for the differently abled 3. Higher education for a brighter future (1760 students impacted) As part of its longterm vision to build regional human resource capabilities, the company is supporting high school students in government and private schools to continue their education and pass state level examinations. The initiatives

Creating environment champions ParyavaranMitra (Friends of the environment) is a sustainability and climate change education programme that intends to create 20 million friends of the environment from 200,000 schools from across India. It is a partnership between ArcelorMittal India Limited and the Centre for Environment Education for the Ministry of Environment & Forests, Govt. of India. The approach of the programme is to develop and reinforce partnerships and networks for maximization of impacts of the programme. World Environment Day ArcelorMittal India Limited observed the event on 6th June. All employees in India were given individual kits containing information materials related to environmental issues like safe use of plastic bags, management of noise, rainwater harvesting, energy conservation etc. 2. Livelihood training initiatives (682 youths impacted) ArcelorMittal India is driving skill building community, the company's efforts are more oriented to support and efforts for the local population in Jharkhand and Odisha. The initiatives include: - Industrial Technical Skills - Auxiliary Nurse Midwife - Vocational Skills - Hair dressing for the differently abled 3. Higher education for a brighter future (1760 students impacted) As part of its longterm vision to build regional human resource capabilities, the company is supporting high school students in government and private schools to continue their education and pass state level examinations. The initiatives

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include: - Tutorial classes - Scholarships - Mainstreaming girls into schooling - Bridging digital divide. 4. Healthcare at the doorsteps Healthcare has been an area of concern for the rural communities. ArcelorMittal India Limited associated closely with the three health departments of the states of Jharkhand and Odisha to address needs. The initiatives include: - Malaria control Programme - Mobile health units for remote villages Connecting vision defects: Project Dishri

include: - Tutorial classes - Scholarships - Mainstreaming girls into schooling - Bridging digital divide. 4. Healthcare at the doorsteps Healthcare has been an area of concern for the rural communities. ArcelorMittal India Limited associated closely with the three health departments of the states of Jharkhand and Odisha to address needs. The initiatives include: - Malaria control Programme - Mobile health units for remote villages Connecting vision defects: Project Dishri

7.3.3 Outcome: Creating environment conservation champions, livelihood training, skill building and

7.3.3 Outcome: Creating environment conservation champions, livelihood training, skill building and

scholarship to support education among bright children and health care in rural area with mobile health care units

scholarship to support education among bright children and health care in rural area with mobile health care units

7.4 7.4.1

7.4 7.4.1

Case Study Four Name Location of city: Business activities Stakeholders engaged

: : :

BNP Paribas Mumbai Website:www.bnpparibas.com Commercial banking Customers, Employees

Case Study Four Name

:

Location of city: Business activities Stakeholders engaged

: :

BNP Paribas Mumbai Website:www.bnpparibas.com Commercial banking Customers, Employees



1. Sustainable financing for the economy: At least 2/3 of net profits retained as capital reserves to help meet the growing demand for credit – from corporations, SMEs and individual clients – in our domestic markets. 2. Business Ethics adopted as a code of conduct formally in March 2011; sales commission rules designed to ensure customer protection; and eased access to loans and insurance cover for non-mainstream customer groups. 3. A responsible product range: environmental, social and governance criteria being applied to a growing proportion of the assets under Group management. 4. Recruitment and training: Over 15,000 new recruits every year, several thousand of them in France. 5. Diversity: A steadily-rising proportion of women in senior management positions; a conscious and determined commitment to fostering diversity in all its forms. 6. Fair and loyal jobs policy: Prioritizing internal job mobility and training and drawing up innovative labour agreements so as to avoid any forced redundancies in our domestic markets. 7. Combating social exclusion and supporting social entrepreneurship: Strong long-term involvement in underprivileged city neighborhoods; providing backing for micro-credit and helping to prevent over indebtedness. 8. Corporate philanthropy policy strongly geared to education, healthcare, culture and social solidarity: The Group supports a growing number of programmes; overall budget now 29 million 9. Compliance with the UN guiding principles on Human Rights: Providing support to our staff in at-risk countries; showing special vigilance in our choice of suppliers and counterparts. 10. Committed financing policies for sensitive industrial or economic sectors: Being aware of the environmental impact of our decisions, providing green products for our individual clients. 11. Reducing the environmental footprint of our own day-to-day operations: Reducing our CO2 emissions and cutting down on our consumption of paper (a 20% reduction). 12. Supporting research into climate change: The BNP Paribas Foundation has recently launched new initiatives in this field.

1. Sustainable financing for the economy: At least 2/3 of net profits retained as capital reserves to help meet the growing demand for credit – from corporations, SMEs and individual clients – in our domestic markets. 2. Business Ethics adopted as a code of conduct formally in March 2011; sales commission rules designed to ensure customer protection; and eased access to loans and insurance cover for non-mainstream customer groups. 3. A responsible product range: environmental, social and governance criteria being applied to a growing proportion of the assets under Group management. 4. Recruitment and training: Over 15,000 new recruits every year, several thousand of them in France. 5. Diversity: A steadily-rising proportion of women in senior management positions; a conscious and determined commitment to fostering diversity in all its forms. 6. Fair and loyal jobs policy: Prioritizing internal job mobility and training and drawing up innovative labour agreements so as to avoid any forced redundancies in our domestic markets. 7. Combating social exclusion and supporting social entrepreneurship: Strong long-term involvement in underprivileged city neighborhoods; providing backing for micro-credit and helping to prevent over indebtedness. 8. Corporate philanthropy policy strongly geared to education, healthcare, culture and social solidarity: The Group supports a growing number of programmes; overall budget now 29 million 9. Compliance with the UN guiding principles on Human Rights: Providing support to our staff in at-risk countries; showing special vigilance in our choice of suppliers and counterparts. 10. Committed financing policies for sensitive industrial or economic sectors: Being aware of the environmental impact of our decisions, providing green products for our individual clients. 11. Reducing the environmental footprint of our own day-to-day operations: Reducing our CO2 emissions and cutting down on our consumption of paper (a 20% reduction). 12. Supporting research into climate change: The BNP Paribas Foundation has recently launched new initiatives in this field.

7.4.3 Outcome:promoting economic sustainability, Business ethics, environment protection, health careand

7.4.3 Outcome:promoting economic sustainability, Business ethics, environment protection, health careand

education.

education.

7.5 Case Study Five 7.5.1 Name Location of City Business activities Stakeholders engaged

: : : :

LOREAL India Private Limited. Mumbai Website:www.loreal.co.in Manufacturer and Marketing of Hair Color & Cosmetics Customers, Community, and Employees

7.5 Case Study Five 7.5.1 Name Location of City Business activities Stakeholders engaged

: : : :

LOREAL India Private Limited. Mumbai Website:www.loreal.co.in Manufacturer and Marketing of Hair Color & Cosmetics Customers, Community, and Employees



Theyembrace responsibility to their employees, their consumers, their environment and the communities in which they operate. They provide training to the underprivileged girls in beauty care, mostly girl‟s dropouts of school from slum areasto give them their first job but also provide them an economic security.

Theyembrace responsibility to their employees, their consumers, their environment and the communities in which they operate. They provide training to the underprivileged girls in beauty care, mostly girl‟s dropouts of school from slum areasto give them their first job but also provide them an economic security.

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They become economically secure and get more freedom to balance their family duties. In addition, Beauty industry has been identified as a high growth sector requiring new employment brings real skills and revenue. They have training centers at Mumbai, Pune, Hyderabad and Nasik.Project care initiated to create awareness on four basic fronts that are Health / Safety, Environment, Education child care and women empowerment.

They become economically secure and get more freedom to balance their family duties. In addition, Beauty industry has been identified as a high growth sector requiring new employment brings real skills and revenue. They have training centers at Mumbai, Pune, Hyderabad and Nasik.Project care initiated to create awareness on four basic fronts that are Health / Safety, Environment, Education child care and women empowerment.

7.5.3 Outcome: Creating employment and women empowerment.

7.5.3 Outcome: Creating employment and women empowerment.

7.6 7.6.1

7.6 7.6.1

Case Study Six Name

:


: : :

Michelin India TyresPrivate Limited. Chennai Website: www.michelin.in Tyres producer Employees, Community, and Customers

Case Study Six Name

:


: : :

Michelin India TyresPrivate Limited. Chennai Website: www.michelin.in Tyres producer Employees, Community, and Customers



1. RebuildingChennai‟s Green Cover: At Michelin, there is a strong sense of responsibility towards deforestation due to industrial development. The focus towards responsible growth and initiatives based on this focus results in careful audit of the environmental impact. They has started planting saplings at its industrial site. 1800 saplings have been planted inside the Industrial site till date. Also initiated water conservation by using water from Red hills reservoir, an artificial storage lake 20 kilometers from the site. 2. School Health and Hygiene Promotion Program: Michelin supports the Indian Red Cross society for implementing school health and hygiene program. 27 Schools including - primary (19), middle schools (4) and high schools (4) around our factory in Thiruvallur district. These institutions are either run by the Government or aided by the Government. 3. Peer Education training to Students: There are many reasons cited in literatures to justify the use of peer education model to promote safety, health and hygiene behavior among students especially during adolescent stage. Moreover Red Cross has adopted peer education model in their other ongoing health and hygiene promotion programs and found it successful and beneficial to the students than other conventional methods. 4. Talent Exhibition show for students: To create awareness on clean environment, safety, personal hygiene and adolescent health, a week long elocution, essay writing and Poster competition was organized for students. 5. Hiring local talent: The purpose of the recruitment drive was to provide employment opportunity to the eligible youths residing in the vicinity of Michelin site.

1. RebuildingChennai‟s Green Cover: At Michelin, there is a strong sense of responsibility towards deforestation due to industrial development. The focus towards responsible growth and initiatives based on this focus results in careful audit of the environmental impact. They has started planting saplings at its industrial site. 1800 saplings have been planted inside the Industrial site till date. Also initiated water conservation by using water from Red hills reservoir, an artificial storage lake 20 kilometers from the site. 2. School Health and Hygiene Promotion Program: Michelin supports the Indian Red Cross society for implementing school health and hygiene program. 27 Schools including - primary (19), middle schools (4) and high schools (4) around our factory in Thiruvallur district. These institutions are either run by the Government or aided by the Government. 3. Peer Education training to Students: There are many reasons cited in literatures to justify the use of peer education model to promote safety, health and hygiene behavior among students especially during adolescent stage. Moreover Red Cross has adopted peer education model in their other ongoing health and hygiene promotion programs and found it successful and beneficial to the students than other conventional methods. 4. Talent Exhibition show for students: To create awareness on clean environment, safety, personal hygiene and adolescent health, a week long elocution, essay writing and Poster competition was organized for students. 5. Hiring local talent: The purpose of the recruitment drive was to provide employment opportunity to the eligible youths residing in the vicinity of Michelin site.

7.6.3 Outcome:environment conservation, employment, education and health care.

7.6.3 Outcome:environment conservation, employment, education and health care.

7.7 Case Study Seven 7.7.1 Name

7.7 Case Study Seven 7.7.1 Name


: : : :

Renault India Private Limited. Chennai Website:www.renault.com Sales & Marketing of cars Employees, Government


: : : :

Renault India Private Limited. Chennai Website:www.renault.com Sales & Marketing of cars Employees, Government



To prevent the death due to traffic accidents. The Group has decided to join an Indian accidentology consortium, RASSI, in a joint effort with Nissan, Daimler and Bosch for a three-year time frame. The objective: studying what triggers accidents and their consequences in and around cars (80% of accidents in India involve pedestrians) in the outskirts of the city of Coimbatore, near the Chennai plant. This scientific data will allow targeted actions on Renault and Nissan vehicles (in a partnership with the RNTBCI Chennai Research & Development Centre), on infrastructures and behavior to be rolled out. These will be used as data to discuss with the local government to define and set up targeted and efficient societal actions.

To prevent the death due to traffic accidents. The Group has decided to join an Indian accidentology consortium, RASSI, in a joint effort with Nissan, Daimler and Bosch for a three-year time frame. The objective: studying what triggers accidents and their consequences in and around cars (80% of accidents in India involve pedestrians) in the outskirts of the city of Coimbatore, near the Chennai plant. This scientific data will allow targeted actions on Renault and Nissan vehicles (in a partnership with the RNTBCI Chennai Research & Development Centre), on infrastructures and behavior to be rolled out. These will be used as data to discuss with the local government to define and set up targeted and efficient societal actions.

7.7.3 Outcome : Civic sense to prevent traffic accidents.

7.7.3 Outcome : Civic sense to prevent traffic accidents.

7.8

7.8

Case Study Eight

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Case Study Eight

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7.8.1

Name

:

Location of city Business activities applications Stakeholders engaged

: :

Saint Gobain India Mumbai Website:www.saint-gobin.com Manufacturer of glass for interiors, coated glass for solar control

:

Employees, customers, Suppliers

7.8.1

Name

:

Location of city Business activities applications Stakeholders engaged

: :

Saint Gobain India Mumbai Website:www.saint-gobin.com Manufacturer of glass for interiors, coated glass for solar control

:

Employees, customers, Suppliers



They pioneer inlight weight interior construction practices for the Indian construction industry. Solar Mission,the National Solar Mission of India envisages the installation of 20000 MW of solar power in the country by 2020. The implementation of the Mission is under way and its impact will take some more time to be felt. Saint-Gobain is working closely with the Ministry of New and Renewable Energy (MNRE). Energy Efficiency SGGI has been working on bringing in greater energy-efficiency in its own manufacturing at the World Glass Complex in Sriperumbudur, Tamil Nadu. Green Building is a representative of sustainable building environments. This approach ensures health and comfort of the building occupants through the use of sustainable building materials. (LEED) Leadership in Energy and Environmental Design - Energy & Atmosphere: Low embodied energy, High insulation properties - Indoor Environmental Quality: Low emitting materials - Water Efficiency: Dry construction (water free) - Materials & Resources: Recycle content, Recyclable products, Regional materials

They pioneer inlight weight interior construction practices for the Indian construction industry. Solar Mission,the National Solar Mission of India envisages the installation of 20000 MW of solar power in the country by 2020. The implementation of the Mission is under way and its impact will take some more time to be felt. Saint-Gobain is working closely with the Ministry of New and Renewable Energy (MNRE). Energy Efficiency SGGI has been working on bringing in greater energy-efficiency in its own manufacturing at the World Glass Complex in Sriperumbudur, Tamil Nadu. Green Building is a representative of sustainable building environments. This approach ensures health and comfort of the building occupants through the use of sustainable building materials. (LEED) Leadership in Energy and Environmental Design - Energy & Atmosphere: Low embodied energy, High insulation properties - Indoor Environmental Quality: Low emitting materials - Water Efficiency: Dry construction (water free) - Materials & Resources: Recycle content, Recyclable products, Regional materials

7.8.3 Outcome: quality to life, energy conservation.

7.8.3 Outcome: quality to life, energy conservation.

7.9 7.9.1

7.9 7.9.1

Case Study Nine Name

:


: : :

Total Oil India Private Limited. Mumbai Website: www.total.co.in Manufacturing Oil and Gas Employees, Suppliers, Community

Case Study Nine Name

:


: : :

Total Oil India Private Limited. Mumbai Website: www.total.co.in Manufacturing Oil and Gas Employees, Suppliers, Community



TOTAL India is embarking on a new initiative to create greater awareness on safe driving practices by organizing TOTAL Quartz Safety Run event in association with Big 92.7 FM – one of the leading radio stations in India. The activity is being undertaken across 20 cities in across India, various aspects of road safety such as hazards of drinking and driving, speaking on mobile phone while driving, over speeding, not wearing seat belts etc. will be discussed on the FM. Listeners will be educated about the importance of road safety and safe driving practices through messages delivered by leading personalities over the FM radio. These safe driving messages will also be delivered through campaigns at shopping malls, housing societies as well as through hoardings, internet, mobile SMS and newspaper advertisements. This initiative is being supported by traffic police, NGOs, national celebrities and, government authorities.

TOTAL India is embarking on a new initiative to create greater awareness on safe driving practices by organizing TOTAL Quartz Safety Run event in association with Big 92.7 FM – one of the leading radio stations in India. The activity is being undertaken across 20 cities in across India, various aspects of road safety such as hazards of drinking and driving, speaking on mobile phone while driving, over speeding, not wearing seat belts etc. will be discussed on the FM. Listeners will be educated about the importance of road safety and safe driving practices through messages delivered by leading personalities over the FM radio. These safe driving messages will also be delivered through campaigns at shopping malls, housing societies as well as through hoardings, internet, mobile SMS and newspaper advertisements. This initiative is being supported by traffic police, NGOs, national celebrities and, government authorities.

7.9.3 Outcome:

7.9.3 Outcome:

Creating awareness on road safely.

Creating awareness on road safely.

8. Findings

8. Findings

1. MNCs in India have been taking kin interest in CSR initiatives. 2. Arcelor Mittal India Ltd and Michelin India Tyres Pvt Ltd have outperformed among the MNCs taken for

1. MNCs in India have been taking kin interest in CSR initiatives. 2. Arcelor Mittal India Ltd and Michelin India Tyres Pvt Ltd have outperformed among the MNCs taken for

the study. They have contributed to a large number of CSR area. Employment, Environment, Education, Health, Civic sense, energy conservation and women empowerment has been the most trusted area for their CSR initiatives undertaken by some of these MNCs in India. These companies have implemented most of their CSR activities with the help of NGOs, and local bodies. They have given a lot of descriptive data on CSR spending. No clarity under the Companies Act is provided towards any mechanism that allows computation of

the study. They have contributed to a large number of CSR area. Employment, Environment, Education, Health, Civic sense, energy conservation and women empowerment has been the most trusted area for their CSR initiatives undertaken by some of these MNCs in India. These companies have implemented most of their CSR activities with the help of NGOs, and local bodies. They have given a lot of descriptive data on CSR spending. No clarity under the Companies Act is provided towards any mechanism that allows computation of

3. 4. 5. 6.

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3. 4. 5. 6.

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accounts of a foreign company in order to determine the net worth or turnover of a branch or a project office. 7. It is not clear as to how the computation of net worth or turnover would be arrived at in case of a branch or project office of a foreign company. 8. There is absence of any clear provision for financial computation of branch or project offices of foreign companies may prove problematic and create practical difficulties.

accounts of a foreign company in order to determine the net worth or turnover of a branch or a project office. 7. It is not clear as to how the computation of net worth or turnover would be arrived at in case of a branch or project office of a foreign company. 8. There is absence of any clear provision for financial computation of branch or project offices of foreign companies may prove problematic and create practical difficulties.

9. Suggestions

9. Suggestions

1. 2. 3. 4. 5. 6. 7.

With the Companies Act 2013, the MCA will have to be clearabout the inclusion of foreign companies and formulate specific guidelines to address the MNCs contribution towards CSR. The Net worth or turnover, calculation of CSR will have to be defined. The MNCs many have to be more focused on their CSR initiatives. The foreign companies will have to streamline their CSR policy and projects from donation. The companies will have to be more transparent in reporting CSR activities, by providing statistics and not mere text and pictured description. The MNCs will have to work on their CSR budgets for FY 2014-2015. The Ministry of company‟s affairs will have to coordinate with the Ministry of home affairs with regards to the CSR provision.

1. 2. 3. 4. 5. 6. 7.

With the Companies Act 2013, the MCA will have to be clearabout the inclusion of foreign companies and formulate specific guidelines to address the MNCs contribution towards CSR. The Net worth or turnover, calculation of CSR will have to be defined. The MNCs many have to be more focused on their CSR initiatives. The foreign companies will have to streamline their CSR policy and projects from donation. The companies will have to be more transparent in reporting CSR activities, by providing statistics and not mere text and pictured description. The MNCs will have to work on their CSR budgets for FY 2014-2015. The Ministry of company‟s affairs will have to coordinate with the Ministry of home affairs with regards to the CSR provision.

10. Conclusion

10. Conclusion

No doubt, from the above case studies taken for review MNCs in India have been taking kin interest in the corporate social responsibility front. While the introduction of CSR provision in the Companies Act is a welcome step, however the inclusion of foreign companies with no clear guidelines may definitely mess the cause. There are many unclear thought as to what happens to the contribution made by foreign companies, as they are subject to approval under the Foreign Contribution Regulation Act, 2010 (“FCRA”). Therefore any spending or contribution made by the foreign source falling within the ambit of the CSR provision will come within the purview of FCRA hence no spending/ contribution can be made without the express approval or permission by the Ministry of Home Affairs. Again, in light of the ambiguity surrounding financial computation of foreign companies, it needs to be seen how practical it would be for branch or project offices to participate in CSR activities. In order to retain the advantage of having a CSR provision in the Companies Act, MCA must also facilitate greater union with tax and foreign contribution laws in India. It is important to see whether CSR Rules is positioned to allow meeting with foreign contribution regime in India. It is time that will decide whether the inclusion of foreign companies under section 135 is anaccurate step or not.

No doubt, from the above case studies taken for review MNCs in India have been taking kin interest in the corporate social responsibility front. While the introduction of CSR provision in the Companies Act is a welcome step, however the inclusion of foreign companies with no clear guidelines may definitely mess the cause. There are many unclear thought as to what happens to the contribution made by foreign companies, as they are subject to approval under the Foreign Contribution Regulation Act, 2010 (“FCRA”). Therefore any spending or contribution made by the foreign source falling within the ambit of the CSR provision will come within the purview of FCRA hence no spending/ contribution can be made without the express approval or permission by the Ministry of Home Affairs. Again, in light of the ambiguity surrounding financial computation of foreign companies, it needs to be seen how practical it would be for branch or project offices to participate in CSR activities. In order to retain the advantage of having a CSR provision in the Companies Act, MCA must also facilitate greater union with tax and foreign contribution laws in India. It is important to see whether CSR Rules is positioned to allow meeting with foreign contribution regime in India. It is time that will decide whether the inclusion of foreign companies under section 135 is anaccurate step or not.

11. Acknowledgement www.mca.gov.in and Websites of the all the MNCs taken as sample for this study.

11. Acknowledgement www.mca.gov.in and Websites of the all the MNCs taken as sample for this study.

12. References

12. References

12.1 Books

12.1 Books

Handbook on Corporate Responsibility in India (2013), Pricewater House Coopers Private Limited pg. 7

Handbook on Corporate Responsibility in India (2013), Pricewater House Coopers Private Limited pg. 7

Linda O‟Riordan and Jenny Fairbrass, Corporate Approaches to CSR Stakeholder Engagement in the Pharmaceutical Industry.

Linda O‟Riordan and Jenny Fairbrass, Corporate Approaches to CSR Stakeholder Engagement in the Pharmaceutical Industry.

MamataBiswal, 2013, Overlooking the Corporate Social Responsibility by the Multi-National Companies: An unconstructive Approach in India, Corporate Social Responsibility & Sustainable Development ISBN: 9781627766012387-392, Enriched Publications Pvt. Ltd.

MamataBiswal, 2013, Overlooking the Corporate Social Responsibility by the Multi-National Companies: An unconstructive Approach in India, Corporate Social Responsibility & Sustainable Development ISBN: 9781627766012387-392, Enriched Publications Pvt. Ltd.

Parul Khanna and Gitika Gupta, Status of CSR: In Indian Context, APJRBM, Volume 2, Issue 1 (JANUARY 2011) ISSN 2229-4104 pg 178 to 187

Parul Khanna and Gitika Gupta, Status of CSR: In Indian Context, APJRBM, Volume 2, Issue 1 (JANUARY 2011) ISSN 2229-4104 pg 178 to 187

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12.2 Journals

12.2 Journals

A. A. Attarwala, A study of CSR Initiatives of Hindustan Unilever and their impact on mobilising profit, Abhinav International Monthly Refereed Journal of Research in Management & Technology, Volume 3, Issue 4 (April, 2014), pg 57 to 60.

A. A. Attarwala, A study of CSR Initiatives of Hindustan Unilever and their impact on mobilising profit, Abhinav International Monthly Refereed Journal of Research in Management & Technology, Volume 3, Issue 4 (April, 2014), pg 57 to 60.

Brammer, Stephen, Jackson, Gregory & Dirk Matten (2012). “Corporate Social Responsibility and Institutional theory: new perspective on private governance”. Socio- Economic Review. Vol.10. Pg.3-28.

Brammer, Stephen, Jackson, Gregory & Dirk Matten (2012). “Corporate Social Responsibility and Institutional theory: new perspective on private governance”. Socio- Economic Review. Vol.10. Pg.3-28.

McWilliams, Abagail & Donald S. Seigel (2010). “Creating and Capturing Value: Strategic Corporate Social Responsibility, Resource-based theory and sustainable competitive advantage”. Journal of Management.Vol.37.No.5

McWilliams, Abagail & Donald S. Seigel (2010). “Creating and Capturing Value: Strategic Corporate Social Responsibility, Resource-based theory and sustainable competitive advantage”. Journal of Management.Vol.37.No.5

Yan-Leung CHEUNG, Kun JIANG &Weiqiang TAN (2012), „Doing-good‟ and „doing-well‟ in Chinese publicly listed firms, China Economic Review 23 (2012) 776–785.

Yan-Leung CHEUNG, Kun JIANG &Weiqiang TAN (2012), „Doing-good‟ and „doing-well‟ in Chinese publicly listed firms, China Economic Review 23 (2012) 776–785.

Author’s profile

Author’s profile

Prof. B. Ramesh, M.Com., M.Phil., Ph.D., Dean (2005-Sept 2011), Faculty of Commerce, Goa University, Goa ,President - Indian Accounting Association (19992000) Immediate Past President – Indian Commerce Association (2011-2012) joined Goa University as the founding faculty member in the erstwhile combined Faculty of Commerce & Management on 20th June, 1987. He has published around 32 research papers in various journals. He has conducted two major Research Projects, one on “Customer Services of SBI in Goa”, sponsored by SBI in 1989 and another on “Evaluation of Vocational Education in Goa” sponsored by UGC in 2006. He has successfully guided 8 doctoral works for the award of Ph.D. degree and 15 dissertations for the award of M.Phil degree. Currently he is guiding 6 Research Scholars for the award of Ph.D. degree. He served as Advisory member at the commissionerate, Karnataka and Goa, nominated by CBDT, Govt. of India, Delhi. He has been appointed by the Bombay Stock Exchange as member of the Advisory Board of BSE Training Institute, Mumbai in January, 2008. He served as President of Indian Accounting Association, Udaipur, during 1999-2000. He also served as President of Indian Commerce during the year 2010-11. He has been nominated on the board of General Body of the Sports Authority of Goa as Member in the field of Sports in the year 2008.

Prof. B. Ramesh, M.Com., M.Phil., Ph.D., Dean (2005-Sept 2011), Faculty of Commerce, Goa University, Goa ,President - Indian Accounting Association (19992000) Immediate Past President – Indian Commerce Association (2011-2012) joined Goa University as the founding faculty member in the erstwhile combined Faculty of Commerce & Management on 20th June, 1987. He has published around 32 research papers in various journals. He has conducted two major Research Projects, one on “Customer Services of SBI in Goa”, sponsored by SBI in 1989 and another on “Evaluation of Vocational Education in Goa” sponsored by UGC in 2006. He has successfully guided 8 doctoral works for the award of Ph.D. degree and 15 dissertations for the award of M.Phil degree. Currently he is guiding 6 Research Scholars for the award of Ph.D. degree. He served as Advisory member at the commissionerate, Karnataka and Goa, nominated by CBDT, Govt. of India, Delhi. He has been appointed by the Bombay Stock Exchange as member of the Advisory Board of BSE Training Institute, Mumbai in January, 2008. He served as President of Indian Accounting Association, Udaipur, during 1999-2000. He also served as President of Indian Commerce during the year 2010-11. He has been nominated on the board of General Body of the Sports Authority of Goa as Member in the field of Sports in the year 2008.

Ms. Savia Mendes, M.Com, M.Phil. is Associate Professor in the Department of Commerce of M.E.S College of Arts and Commerce – Zuarinagar Goa.Research Scholar Goa University has more than 18 years of experience in academics in the specific areas of Accounting, Management, Finance, Auditing, Entrepreneurship Management and Marketing. She has to her credit twelve research publications. She has presented twenty one papers at State, National and International seminars and conferences. Ms. Savia Mendes initiated a State Level Case Writing and Presentation on Entrepreneurs in Goa in Commemoration of the Golden Jubilee Celebration, in Associations with the Directorate of Arts & Culture, Government of Goa. She is the Chairperson of Remedial Teaching for minorities. She has successfully organized International Seminar on Emerging trends in Entrepreneurship (2012)and edited a book on Entrepreneurship. She has also assisted in the organization of state, national level seminars, conferences and workshops and has organized study tours for the students. She heads as Troop Commander of Girls NCC Wing, Rank Major. She is the Life members of All India Commerce Association and All India Accounting Association and Member of Goa Commerce Association.

Ms. Savia Mendes, M.Com, M.Phil. is Associate Professor in the Department of Commerce of M.E.S College of Arts and Commerce – Zuarinagar Goa.Research Scholar Goa University has more than 18 years of experience in academics in the specific areas of Accounting, Management, Finance, Auditing, Entrepreneurship Management and Marketing. She has to her credit twelve research publications. She has presented twenty one papers at State, National and International seminars and conferences. Ms. Savia Mendes initiated a State Level Case Writing and Presentation on Entrepreneurs in Goa in Commemoration of the Golden Jubilee Celebration, in Associations with the Directorate of Arts & Culture, Government of Goa. She is the Chairperson of Remedial Teaching for minorities. She has successfully organized International Seminar on Emerging trends in Entrepreneurship (2012)and edited a book on Entrepreneurship. She has also assisted in the organization of state, national level seminars, conferences and workshops and has organized study tours for the students. She heads as Troop Commander of Girls NCC Wing, Rank Major. She is the Life members of All India Commerce Association and All India Accounting Association and Member of Goa Commerce Association.

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CORPORATE SOCIAL RESPONSIBILITY PRACTICES IN INDIA (A CASE STUDY ON THE INITIATIVES OF OIL INDIA LIMITED)

CORPORATE SOCIAL RESPONSIBILITY PRACTICES IN INDIA (A CASE STUDY ON THE INITIATIVES OF OIL INDIA LIMITED)

Asha Sharma1, Ashutosh Kumar2 Assistant Professor, Department of Commerce, Mahila P G Mahavidhalaya Jai Narain Vyas University, Jodhpur, India 2 Professor, Amity Business School, Gurgaon, Amity University Haryana, India 1 [email protected], [email protected]

Asha Sharma1, Ashutosh Kumar2 Assistant Professor, Department of Commerce, Mahila P G Mahavidhalaya Jai Narain Vyas University, Jodhpur, India 2 Professor, Amity Business School, Gurgaon, Amity University Haryana, India 1 [email protected], [email protected]

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Abstract

Abstract

The Corporate Social Responsibility is the commitment of the corporate for the equitable growth & sustainable development of the society. CSR is a sustainable process which helps balance the three levels of sustainable development- financial growth, Environmental protection and Social development. Under the new Companies Act, 2013, passed by Parliament in August 2013, Companies with net worth over 500 crores or turnover of over 1000 crores or net profit of 5 crores, two per cent of average profit of previous three years needs to be spent for social cause. In this context the present paper examines the corporate social responsibility spending of the Indian oil company i.e. Oil India Limited. The study also focused on the various initiatives by OIL as a part of its social responsibility in rural India and Assam in particular. The investments seen from the study are in natural resource management, improving the economic conditions, capacity building, empowerment of disables and rural development on sustained basis. The study is based on the secondary data collected from annual reports of the companies. The findings can assist the policy makers to ensure that the Indian companies increased their Corporate Social Responsibility spending. The company is disclosing and providing Business Responsibility report along with the Annual Report in more transparent way.

The Corporate Social Responsibility is the commitment of the corporate for the equitable growth & sustainable development of the society. CSR is a sustainable process which helps balance the three levels of sustainable development- financial growth, Environmental protection and Social development. Under the new Companies Act, 2013, passed by Parliament in August 2013, Companies with net worth over 500 crores or turnover of over 1000 crores or net profit of 5 crores, two per cent of average profit of previous three years needs to be spent for social cause. In this context the present paper examines the corporate social responsibility spending of the Indian oil company i.e. Oil India Limited. The study also focused on the various initiatives by OIL as a part of its social responsibility in rural India and Assam in particular. The investments seen from the study are in natural resource management, improving the economic conditions, capacity building, empowerment of disables and rural development on sustained basis. The study is based on the secondary data collected from annual reports of the companies. The findings can assist the policy makers to ensure that the Indian companies increased their Corporate Social Responsibility spending. The company is disclosing and providing Business Responsibility report along with the Annual Report in more transparent way.

Keywords: Corporate Social Responsibility; OIL, Empowerment, Rural Development Capacity Building, Agriculture

Keywords: Corporate Social Responsibility; OIL, Empowerment, Rural Development Capacity Building, Agriculture

1. Introduction

1. Introduction

CSR is not a new concept in India. Ever since their inception, corporate like the Tata Group, the Aditya Birla Group, and Indian Oil Corporation, to name a few have been involved in serving the community. Through donations and charity events, many other organizations have been doing their part for the society. The basic objective of CSR in these days is to maximize the company's overall impact on the society and stakeholders. CSR policies, practices and programs are being comprehensively integrated by an increasing number of companies throughout their business operations and processes. A growing number of corporate feel that CSR is not just another form of indirect expense but is important for protecting the goodwill and reputation, defending attacks and increasing business competitiveness.

CSR is not a new concept in India. Ever since their inception, corporate like the Tata Group, the Aditya Birla Group, and Indian Oil Corporation, to name a few have been involved in serving the community. Through donations and charity events, many other organizations have been doing their part for the society. The basic objective of CSR in these days is to maximize the company's overall impact on the society and stakeholders. CSR policies, practices and programs are being comprehensively integrated by an increasing number of companies throughout their business operations and processes. A growing number of corporate feel that CSR is not just another form of indirect expense but is important for protecting the goodwill and reputation, defending attacks and increasing business competitiveness.

Companies have specialised CSR teams that formulate policies, strategies and goals for their CSR programs and set aside budgets to fund them. These programs are often determined by social philosophy which have clear objectives and are well defined and are aligned with the mainstream business. The programs are put into practice by the employees who are crucial to this process. CSR programs ranges from community development to development in education, environment and healthcare etc. 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 self-reliant by providing vocational training and a knowledge of business operations are the facilities that these corporations focus on.Many of the companies are helping other peoples by providing them good standard of living.

Companies have specialised CSR teams that formulate policies, strategies and goals for their CSR programs and set aside budgets to fund them. These programs are often determined by social philosophy which have clear objectives and are well defined and are aligned with the mainstream business. The programs are put into practice by the employees who are crucial to this process. CSR programs ranges from community development to development in education, environment and healthcare etc. 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 self-reliant by providing vocational training and a knowledge of business operations are the facilities that these corporations focus on.Many of the companies are helping other peoples by providing them good standard of living.

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CSR is not new to India, companies like TATA and BIRLA have been imbibing the case for social good in their operations for decades long before CSR become a popular cause. Inspite of having such life size successful examples, CSR in India is in a very nascent stage. It is still one of the least understood initiatives in the Indian development sector. It is followed by a handful of public companies as dictated by the very basis of their existence, and by a few private companies, with international shareholding as this is the practice followed by them in their respective foreign country. Thus the situation is far from perfect as the emphasis is not on social good but rather on a policy that needs to be implemented. 2.

Evolution of Corporate Social Responsibility in India

The evolution of corporate social responsibility in India refers to changes over time in India of the cultural norms of corporate engagement of corporate social responsibility (CSR), with CSR referring to way that businesses are managed to bring about an overall positive impact on the communities, cultures, societies and environments in which they operate. The fundamentals of CSR rest on the fact that not only public policy but even corporate should be responsible enough to address social issues. Thus companies should deal with the challenges and issues looked after to a certain extent by the states. Among other countries India is one of the richest traditions of CSR. Much has been done in recent years to make Indian Entrepreneurs aware of social responsibility as an important segment of their business activity but CSR in India has yet to receive widespread recognition. If this goal has to be realised then the CSR approach of corporate has to be in line with their attitudes towards mainstream business- companies setting clear objectives, undertaking potential investments, measuring and reporting performance publicly.

3. Corporate Social Responsibility at Indian Oil Sector

CSR is not new to India, companies like TATA and BIRLA have been imbibing the case for social good in their operations for decades long before CSR become a popular cause. Inspite of having such life size successful examples, CSR in India is in a very nascent stage. It is still one of the least understood initiatives in the Indian development sector. It is followed by a handful of public companies as dictated by the very basis of their existence, and by a few private companies, with international shareholding as this is the practice followed by them in their respective foreign country. Thus the situation is far from perfect as the emphasis is not on social good but rather on a policy that needs to be implemented. 2.

Evolution of Corporate Social Responsibility in India

The evolution of corporate social responsibility in India refers to changes over time in India of the cultural norms of corporate engagement of corporate social responsibility (CSR), with CSR referring to way that businesses are managed to bring about an overall positive impact on the communities, cultures, societies and environments in which they operate. The fundamentals of CSR rest on the fact that not only public policy but even corporate should be responsible enough to address social issues. Thus companies should deal with the challenges and issues looked after to a certain extent by the states. Among other countries India is one of the richest traditions of CSR. Much has been done in recent years to make Indian Entrepreneurs aware of social responsibility as an important segment of their business activity but CSR in India has yet to receive widespread recognition. If this goal has to be realised then the CSR approach of corporate has to be in line with their attitudes towards mainstream business- companies setting clear objectives, undertaking potential investments, measuring and reporting performance publicly.

3. Corporate Social Responsibility at Indian Oil Sector

At Indian Oil, corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. The Corporation‟s objectives in this key performance area are enshrined in its Mission statement: "…to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience." which succinctly portrays the commitment of the

At Indian Oil, corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. The Corporation‟s objectives in this key performance area are enshrined in its Mission statement: "…to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience." which succinctly portrays the commitment of the

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Corporation to its Corporate Social Responsibility (CSR). CSR and working with the communities has been the cornerstone of success for Indian Oil right from inception. The three thrust areas of the Corporation‟s CSR initiatives are „Clean Drinking Water‟, „Health & Medical Care‟ and „Expansion of Education‟. CSR projects are mostly undertaken in the vicinity of Indian Oil‟s installations or establishments for improving the quality of life of the community, which include marginalised groups viz., SCs, STs, OBCs, etc. Indian Oil‟s annual CSR budget has gradually increased from 0.5% of previous year‟s net profit in 1991 to 2% of previous year‟s retained profit effective 2009.

Corporation to its Corporate Social Responsibility (CSR). CSR and working with the communities has been the cornerstone of success for Indian Oil right from inception. The three thrust areas of the Corporation‟s CSR initiatives are „Clean Drinking Water‟, „Health & Medical Care‟ and „Expansion of Education‟. CSR projects are mostly undertaken in the vicinity of Indian Oil‟s installations or establishments for improving the quality of life of the community, which include marginalised groups viz., SCs, STs, OBCs, etc. Indian Oil‟s annual CSR budget has gradually increased from 0.5% of previous year‟s net profit in 1991 to 2% of previous year‟s retained profit effective 2009.

4. Case Study of Oil India Limited

4. Case Study of Oil India Limited

CSR at Oil India Limited is guided by its social vision - “OIL is a responsible corporate citizen deeply committed to socio-economic development in its areas of operations”. Overall, the company‟s CSR and Sustainability practices are guided by and undertaken keeping in perspective the overarching principles under the DPE guidelines, 2013 (on CSR & Sustainability) and the Companies Act, 2013. The company has been carrying out social welfare activities in and around its‟ operational areas in upper Assam since the year 1962. The social interventions of the company reached new heights with the commencement of the 21st century and have been growing in variety, size, and reach since then. The company lays focus on its thrust areas for CSR, viz. Education, Health, Rural Development, Sports, Infrastructure, Women Empowerment, Support to the differently able, Skill Development, Sustainable Livelihood Generation, Biodiversity Conservation, Ecotourism, Water Conservation, Renewable Sources of Energy for the rural folk, promotion of culture, etc. Thus far, the company has laid its CSR footprint in over 1400 villages across its operational states of Assam and Arunachal Pradesh and aims to continue expanding it, with time.

CSR at Oil India Limited is guided by its social vision - “OIL is a responsible corporate citizen deeply committed to socio-economic development in its areas of operations”. Overall, the company‟s CSR and Sustainability practices are guided by and undertaken keeping in perspective the overarching principles under the DPE guidelines, 2013 (on CSR & Sustainability) and the Companies Act, 2013. The company has been carrying out social welfare activities in and around its‟ operational areas in upper Assam since the year 1962. The social interventions of the company reached new heights with the commencement of the 21st century and have been growing in variety, size, and reach since then. The company lays focus on its thrust areas for CSR, viz. Education, Health, Rural Development, Sports, Infrastructure, Women Empowerment, Support to the differently able, Skill Development, Sustainable Livelihood Generation, Biodiversity Conservation, Ecotourism, Water Conservation, Renewable Sources of Energy for the rural folk, promotion of culture, etc. Thus far, the company has laid its CSR footprint in over 1400 villages across its operational states of Assam and Arunachal Pradesh and aims to continue expanding it, with time.

Study Area and Methodology

Study Area and Methodology

The study is based on the personal visit, interviews of beneficiaries and secondary data obtained from various records published and available on websites (www.oil-india.com). The report is based on the analysis of various facts and inference was made to highlight the various domains for social initiatives to build rural India.

The study is based on the personal visit, interviews of beneficiaries and secondary data obtained from various records published and available on websites (www.oil-india.com). The report is based on the analysis of various facts and inference was made to highlight the various domains for social initiatives to build rural India.

CSR ACTIVITIES BY OIL

CSR ACTIVITIES BY OIL

OIL The company has taken many special initiatives to engage with the disadvantaged, vulnerable and marginalized stakeholders. also focuses on SC/ST/ PwD and women centric projects and programs.

OIL The company has taken many special initiatives to engage with the disadvantaged, vulnerable and marginalized stakeholders. also focuses on SC/ST/ PwD and women centric projects and programs.

Various Initiatives

Various Initiatives

a) Developmental Projects for Scheduled Castes and Scheduled Tribes: Oil India has always laid great emphasis in implementing various developmental projects in and around its operational areas which has a large number of the Scheduled Tribe/Scheduled Caste population. The projects are implemented within the scope of the Government‟s policy on Special Component Plan (SCP) and Tribal Sub-Plan (TSP). Oil India SC/ST Employees Welfare Association recommends/monitors the implementation of various schemes under SCP and TSP. b) Empowerment of People with Disabilities: Through its Project SAKSHYAM, OIL has been extending support and care to physically challenged children. OIL has adopted and extended support to the following rehabilitation centers in terms of infrastructure development, running costs etc. Details of these centers with support by OIL under CSR in FY 2012-13 and 2013-14 are given as under:

a) Developmental Projects for Scheduled Castes and Scheduled Tribes: Oil India has always laid great emphasis in implementing various developmental projects in and around its operational areas which has a large number of the Scheduled Tribe/Scheduled Caste population. The projects are implemented within the scope of the Government‟s policy on Special Component Plan (SCP) and Tribal Sub-Plan (TSP). Oil India SC/ST Employees Welfare Association recommends/monitors the implementation of various schemes under SCP and TSP. b) Empowerment of People with Disabilities: Through its Project SAKSHYAM, OIL has been extending support and care to physically challenged children. OIL has adopted and extended support to the following rehabilitation centers in terms of infrastructure development, running costs etc. Details of these centers with support by OIL under CSR in FY 2012-13 and 2013-14 are given as under:

CSR through its Project SAKSHYAM empowerment of People with Disabilities

CSR through its Project SAKSHYAM empowerment of People with Disabilities

Financial Year Support to Institutions for PwDs for infrastructure development

Amount sanctioned (Rs.)

Financial Year Support to Institutions for PwDs for infrastructure development

Amount sanctioned (Rs.)

2012-13

8, 91, 164.00

2012-13

8, 91, 164.00

Mrinaljyoti Rehabilitation Centre,

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Mrinaljyoti Rehabilitation Centre,

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2013-14

Duliajan Rural Blind Society, Bihpuria Moran Blind School Total Mrinaljyoti Rehabilitation Centre, Duliajan Moran Blind School Assam Association of the Deaf Total

10,00,000.00 1,60,000.00 20, 51, 164.00 31,00,000.00

2013-14

18,45,000.00 20,000.00 49, 65, 000.00

Duliajan Rural Blind Society, Bihpuria Moran Blind School Total Mrinaljyoti Rehabilitation Centre, Duliajan Moran Blind School Assam Association of the Deaf Total

10,00,000.00 1,60,000.00 20, 51, 164.00 31,00,000.00 18,45,000.00 20,000.00 49, 65, 000.00

c)

Empowering women & youth through sustainable livelihood generation initiatives: In order to help the large number of unemployed youth of the society and strengthen rural economy, OIL had started ambitious projects like Project „RUPANTAR‟ and Oil India Rural Development Society (OIRDS). Project „Rupantar‟ has been generating livelihood opportunities by assisting through formation of Self Help Groups and providing training on economic activities in agro-based sector thereby helping the unemployed youth & women to find alternate employment by providing a scope for entrepreneurship. On the other hand OIRDS through its Agriculture Project has helped the youth to find employment through commercialization of agriculture. The Handicraft Training and Production Centre (HTPC) have been training young women from OIL‟s operational areas in production of handloom products, knitting, cutting, tailoring and embroidery. d) Healing through Mobile Dispensary Services: OIL has been extending primary health care services to the needy and poor, free of cost in the remotest villages of OIL‟s operational areas through its mobile dispensary services under Project „SPARSHA‟. Annually over 750 mobile health camps are held, catering to over 1.30 lakh patients in the operational district of Tinsukia and other Districts of Assam as well as Arunachal Pradesh. e) Capacity Building and Skill Development of rural youth for employment opportunities through Project SWABALAMBAN : OIL has started a landmark initiative with Indian Institute of Entrepreneurship (IIE), Guwahati, Construction Industry Development Council (CIDC), New Delhi and IL&FS Educational Technology Services (IETS), New Delhi for capacity building and placement linked skill training of youth from OIL's operational areas. f) Strengthening the roots through Education: Under Project DIKHYA, OIL is imparting Computer Education to the students of selected rural schools. Project DIKHYA also includes Adult Literacy programme for the disadvantaged adults in the select villages of OIL operational areas. g) Project ‘Super 30’ : It is a CSR initiative on education through which free residential coaching is provided to students of BPL families of Assam and Arunachal Pradesh for admission to IIT/Engineering colleges. Presently, OIL has three centres at Guwahati, Jorhat and Dibrugarh in Assam. Through this project many talented students from marginalized families have been placed in reputed engineering institutes of the country. h) OIL has instituted the Merit scholarships and OIL Awards to extend meritorious students passing Class Xth & XIIth from rural areas.

c)

Empowering women & youth through sustainable livelihood generation initiatives: In order to help the large number of unemployed youth of the society and strengthen rural economy, OIL had started ambitious projects like Project „RUPANTAR‟ and Oil India Rural Development Society (OIRDS). Project „Rupantar‟ has been generating livelihood opportunities by assisting through formation of Self Help Groups and providing training on economic activities in agro-based sector thereby helping the unemployed youth & women to find alternate employment by providing a scope for entrepreneurship. On the other hand OIRDS through its Agriculture Project has helped the youth to find employment through commercialization of agriculture. The Handicraft Training and Production Centre (HTPC) have been training young women from OIL‟s operational areas in production of handloom products, knitting, cutting, tailoring and embroidery. d) Healing through Mobile Dispensary Services: OIL has been extending primary health care services to the needy and poor, free of cost in the remotest villages of OIL‟s operational areas through its mobile dispensary services under Project „SPARSHA‟. Annually over 750 mobile health camps are held, catering to over 1.30 lakh patients in the operational district of Tinsukia and other Districts of Assam as well as Arunachal Pradesh. e) Capacity Building and Skill Development of rural youth for employment opportunities through Project SWABALAMBAN : OIL has started a landmark initiative with Indian Institute of Entrepreneurship (IIE), Guwahati, Construction Industry Development Council (CIDC), New Delhi and IL&FS Educational Technology Services (IETS), New Delhi for capacity building and placement linked skill training of youth from OIL's operational areas. f) Strengthening the roots through Education: Under Project DIKHYA, OIL is imparting Computer Education to the students of selected rural schools. Project DIKHYA also includes Adult Literacy programme for the disadvantaged adults in the select villages of OIL operational areas. g) Project ‘Super 30’ : It is a CSR initiative on education through which free residential coaching is provided to students of BPL families of Assam and Arunachal Pradesh for admission to IIT/Engineering colleges. Presently, OIL has three centres at Guwahati, Jorhat and Dibrugarh in Assam. Through this project many talented students from marginalized families have been placed in reputed engineering institutes of the country. h) OIL has instituted the Merit scholarships and OIL Awards to extend meritorious students passing Class Xth & XIIth from rural areas.

OIL has been partnering with NGOs as well as government/semi-government agencies for implementing the various CSR projects. Here it is important to mention that OIL‟s association with government/semi-government agencies for implementing the CSR projects, is mainly due to unavailability of credible national/international NGOs with considerable work experience in North East India. That said the company has been implementing its CSR projects with some of the best partners in the industry. For example, the following CSR projects are using NGOs/government/semi-government institutions:

OIL has been partnering with NGOs as well as government/semi-government agencies for implementing the various CSR projects. Here it is important to mention that OIL‟s association with government/semi-government agencies for implementing the CSR projects, is mainly due to unavailability of credible national/international NGOs with considerable work experience in North East India. That said the company has been implementing its CSR projects with some of the best partners in the industry. For example, the following CSR projects are using NGOs/government/semi-government institutions:

Various Projects

Various Projects

Project Rupantar: Started in the year 2003, it is one alternate and sustainable sources of livelihood for women and youth of OIL‟s operational areas. Project „Rupantar‟ is being implemented by State Institute of Rural Development (SIRD), Assam. Till date OIL has formed 1150 SHGs, investing an amount of Rs 885 lakh under the project and 1479 trainings have been conducted in which 1,32,488 youth/women have participated. In

Project Rupantar: Started in the year 2003, it is one alternate and sustainable sources of livelihood for women and youth of OIL‟s operational areas. Project „Rupantar‟ is being implemented by State Institute of Rural Development (SIRD), Assam. Till date OIL has formed 1150 SHGs, investing an amount of Rs 885 lakh under the project and 1479 trainings have been conducted in which 1,32,488 youth/women have participated. In

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addition, since 2004, SIRD is successfully implementing a computer education programme under OIL‟s Project Rupantar at OIL‟s Fields‟ Headquarters at Duliajan. The Computer centre offers various short term courses to students as well as other candidates at a subsidized rate. Moreover, SIRD has been regularly imparting training on Information Education and Communication (IEC) and Panchayati Raj Institution (PRI), rural development etc. Till date 53,000 students have been trained in the Computer training centre under project Rupantar.

addition, since 2004, SIRD is successfully implementing a computer education programme under OIL‟s Project Rupantar at OIL‟s Fields‟ Headquarters at Duliajan. The Computer centre offers various short term courses to students as well as other candidates at a subsidized rate. Moreover, SIRD has been regularly imparting training on Information Education and Communication (IEC) and Panchayati Raj Institution (PRI), rural development etc. Till date 53,000 students have been trained in the Computer training centre under project Rupantar.

Agriculture Project: It is one of Company‟s first CSR project under the aegis of Oil India Rural Development Society. Extensive in-field trainings are provided to the beneficiaries by experts from Agriculture Department, Government of Assam and Assam Agriculture University for proper and adequate use of technology for development of agriculture. High yielding seeds are collected for the beneficiaries from Agriculture Research Centre, Titabor, Jorhat district, Assam. OIL has adopted more than 90 villages and over 1300 farm families under the project till date.

Agriculture Project: It is one of Company‟s first CSR project under the aegis of Oil India Rural Development Society. Extensive in-field trainings are provided to the beneficiaries by experts from Agriculture Department, Government of Assam and Assam Agriculture University for proper and adequate use of technology for development of agriculture. High yielding seeds are collected for the beneficiaries from Agriculture Research Centre, Titabor, Jorhat district, Assam. OIL has adopted more than 90 villages and over 1300 farm families under the project till date.

Project Sparsha: OIL Hospital in association with St. Luke‟s Hospital, Tinsukia & Chabua has been implementing the mobile health care project which caters to the primary health care needs of the people of OIL‟s operational areas. The team carries out screening of and provides primary healthcare services to around 1.30 lakh patients annually through 750 medical camps in and around OIL operational villages in Upper Assam as well as in Arunachal Pradesh.

Project Sparsha: OIL Hospital in association with St. Luke‟s Hospital, Tinsukia & Chabua has been implementing the mobile health care project which caters to the primary health care needs of the people of OIL‟s operational areas. The team carries out screening of and provides primary healthcare services to around 1.30 lakh patients annually through 750 medical camps in and around OIL operational villages in Upper Assam as well as in Arunachal Pradesh.

Utkarsh- Super 30: This is an educational initiative for empowering young students of marginalized families of North East, through which free residential coaching is provided to a group of selected IIT aspirants of Assam and Arunachal Pradesh in cooperation with an NGO named Centre for Social Responsibility and Leadership, New Delhi. OIL has started three branches under the project, in Guwahati, Jorhat, and Dibrugarh in the state of Assam. The number of students adopted per year is around 90 (30 each for the 3 centers).

Utkarsh- Super 30: This is an educational initiative for empowering young students of marginalized families of North East, through which free residential coaching is provided to a group of selected IIT aspirants of Assam and Arunachal Pradesh in cooperation with an NGO named Centre for Social Responsibility and Leadership, New Delhi. OIL has started three branches under the project, in Guwahati, Jorhat, and Dibrugarh in the state of Assam. The number of students adopted per year is around 90 (30 each for the 3 centers).

Project Dikhya: OIL has taken up the projects for promoting computer literacy and adult literacy in the selected areas of OIL‟s operational districts under the aegis of Project „Dikhya‟. The project would is being implemented by SIRD, Assam and IL&FS Education & Technical Services, via mobile education vans/buses, which visit each of the areas and schools. In the FY 2013-14, overall 660 students across 6 schools and 300 adults across 60 centres were covered under the program.

Project Dikhya: OIL has taken up the projects for promoting computer literacy and adult literacy in the selected areas of OIL‟s operational districts under the aegis of Project „Dikhya‟. The project would is being implemented by SIRD, Assam and IL&FS Education & Technical Services, via mobile education vans/buses, which visit each of the areas and schools. In the FY 2013-14, overall 660 students across 6 schools and 300 adults across 60 centres were covered under the program.

Project Swabalamban: In order to provide skill based employment oriented training to 25,000 youth in the next five years- OIL as part of its CSR initiative signed MoUs in December, 2013, with three agencies namely Indian Institute of Entrepreneurship, Guwahati, Construction Industry Development Council, New Delhi and IL&FS Educational Technology Services, New Delhi for capacity building and placement linked training of youth from OIL‟s operational areas. Skill based placement oriented training will focus on sectors like Construction Industry, Hospitality & Housekeeping Management, Industrial Sewing, Jewellery Making, Electrician, besides setting up of livelihood clusters in domains like handloom and handicrafts. More than 625 youth have undergone training under the project and over 200 of them have been placed in the industry, in the various vocations mentioned above.

Project Swabalamban: In order to provide skill based employment oriented training to 25,000 youth in the next five years- OIL as part of its CSR initiative signed MoUs in December, 2013, with three agencies namely Indian Institute of Entrepreneurship, Guwahati, Construction Industry Development Council, New Delhi and IL&FS Educational Technology Services, New Delhi for capacity building and placement linked training of youth from OIL‟s operational areas. Skill based placement oriented training will focus on sectors like Construction Industry, Hospitality & Housekeeping Management, Industrial Sewing, Jewellery Making, Electrician, besides setting up of livelihood clusters in domains like handloom and handicrafts. More than 625 youth have undergone training under the project and over 200 of them have been placed in the industry, in the various vocations mentioned above.

Project Kamdhenu: OIL signed an MOU, in FY 2012- 13 with Institute of Rural Management, Anand (IRMA) for carrying out the baseline Survey and need assessment study in the districts of Dibrugarh and Tinsukia of Assam to assess the feasibility for implementing OIL‟s “Dairy Development Project Kamdhenu”. To this effect, IRMA is carrying out necessary studies.

Project Kamdhenu: OIL signed an MOU, in FY 2012- 13 with Institute of Rural Management, Anand (IRMA) for carrying out the baseline Survey and need assessment study in the districts of Dibrugarh and Tinsukia of Assam to assess the feasibility for implementing OIL‟s “Dairy Development Project Kamdhenu”. To this effect, IRMA is carrying out necessary studies.

Educational fairs & exhibitions: OIL has been associated with the Assam Tribune group in Guwahati, Dibrugarh, Silchar, and Shillong for organizing educational fairs.

Educational fairs & exhibitions: OIL has been associated with the Assam Tribune group in Guwahati, Dibrugarh, Silchar, and Shillong for organizing educational fairs.

5. Conclusion

5. Conclusion

It is seen from the study various activities taken up by OIL in Eastern Zone of India are on the aspects related to the agriculture community, rural development, water crisis, health perspective and natural resource

It is seen from the study various activities taken up by OIL in Eastern Zone of India are on the aspects related to the agriculture community, rural development, water crisis, health perspective and natural resource

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management. The company is taking up these activities either directly or through local NGOs for better reach to meet with problem of local community and enhance living standard. The all round involvement in making farming a self sustained one and more remunerative, the company is creating atmosphere in developing agrotechnologies, socio-eco development and rural development in a comprehensive manner. The various social initiatives by OIL have changed the face of beneficiary groups at social and financial and environmental level. The various initiatives have opened up new avenues to farming community in terms of knowledge up gradation, self employment and soil health management.

6. References

management. The company is taking up these activities either directly or through local NGOs for better reach to meet with problem of local community and enhance living standard. The all round involvement in making farming a self sustained one and more remunerative, the company is creating atmosphere in developing agrotechnologies, socio-eco development and rural development in a comprehensive manner. The various social initiatives by OIL have changed the face of beneficiary groups at social and financial and environmental level. The various initiatives have opened up new avenues to farming community in terms of knowledge up gradation, self employment and soil health management.

6. References

www.oil-india.com India CSR Report of Socio Research & Reform Foundation (NGO), August 2013. Chandrakanta Sahoo (2011) “Corporate Social Responsibility: Issues and controversies”, Journal of Business and Management Vol 3, No 2, ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online),pp 1-4. Dean Roy Nash “CSR: contributions of Maharatna Companies of India” (2012), Asian Journal of Research in Business Economics and Management,Vol.2 Issue 4, April 2012. Amit Kumar Srivastava, Gayatri Negi, Vipul Mishra, Shraddha Pandey (2012) “Corporate Social Responsibility: A Case Study Of TATA Group”, IOSR Journal of Business and Management (IOSRJBM), Volume 3, Issue 5 (Sep,-Oct. 2012), pp 17-27. Gahlot Sushmita (2013),”Corporate Social Responsibility: Current Scenario”,Research Journal of Management Science, Vol. 2(12), 12-14, December (2013),pp12-14. Amresh Kumar (2013) “Corporate Social Responsibility in Organized Retail : An Insight into the Initiatives of Future group “,International Journal of Retailing & Rural Business Perspectives © Pezzottaite Journals, Volume 2, Number 3, July - September‟ 2013,pp 584-588. Monica Aggarwal (2013) “Corporate social responsibility and financial performance linkage evidence from Indian companies”,International Journal Of Management & Development Studies, Volume No 2(2013) Issue No 7(July), pp 12-24. Rajeev Prabhakar and Ms. Sonam Mishra (2013) “A Study of Corporate Social Responsibility in Indian Organization: An-Introspection”,International Business Research Conference, Ryerson University, Toronto, Canada. Sarita Moharana (2013) “Corporate Social Responsibility: A Study of Selected Public Sector Banks in India”,IOSR Journal of Business and Management (IOSR-JBM), Volume 15, Issue 4 (Nov. - Dec. 2013), pp 01-09. Eliza Sharma & Dr. Mukta Mani (2013) “Corporate Social Responsibility: An Analysis of Indian Commercial Banks”,AIMA Journal of Management & Research, February 2013, Volume 7, Issue 1/4.

www.oil-india.com India CSR Report of Socio Research & Reform Foundation (NGO), August 2013. Chandrakanta Sahoo (2011) “Corporate Social Responsibility: Issues and controversies”, Journal of Business and Management Vol 3, No 2, ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online),pp 1-4. Dean Roy Nash “CSR: contributions of Maharatna Companies of India” (2012), Asian Journal of Research in Business Economics and Management,Vol.2 Issue 4, April 2012. Amit Kumar Srivastava, Gayatri Negi, Vipul Mishra, Shraddha Pandey (2012) “Corporate Social Responsibility: A Case Study Of TATA Group”, IOSR Journal of Business and Management (IOSRJBM), Volume 3, Issue 5 (Sep,-Oct. 2012), pp 17-27. Gahlot Sushmita (2013),”Corporate Social Responsibility: Current Scenario”,Research Journal of Management Science, Vol. 2(12), 12-14, December (2013),pp12-14. Amresh Kumar (2013) “Corporate Social Responsibility in Organized Retail : An Insight into the Initiatives of Future group “,International Journal of Retailing & Rural Business Perspectives © Pezzottaite Journals, Volume 2, Number 3, July - September‟ 2013,pp 584-588. Monica Aggarwal (2013) “Corporate social responsibility and financial performance linkage evidence from Indian companies”,International Journal Of Management & Development Studies, Volume No 2(2013) Issue No 7(July), pp 12-24. Rajeev Prabhakar and Ms. Sonam Mishra (2013) “A Study of Corporate Social Responsibility in Indian Organization: An-Introspection”,International Business Research Conference, Ryerson University, Toronto, Canada. Sarita Moharana (2013) “Corporate Social Responsibility: A Study of Selected Public Sector Banks in India”,IOSR Journal of Business and Management (IOSR-JBM), Volume 15, Issue 4 (Nov. - Dec. 2013), pp 01-09. Eliza Sharma & Dr. Mukta Mani (2013) “Corporate Social Responsibility: An Analysis of Indian Commercial Banks”,AIMA Journal of Management & Research, February 2013, Volume 7, Issue 1/4.

Swati Sharma, Reshu Sharma & Jugal Kishor (2013), “Emerging trends in Corporate Social Responsibility in India-A Descriptive study” ,Global Journal of Commerce & Management Perspective, Vol. 2(2) , pp 58-62. Abha Chopra & Shruti Marriya (2013), “Corporate Social Responsibility and Education in India” Issues and Ideas in Education,Vol. 1, March 2013,pp. 13–22. Anshul Agarwal (2014), “The New Spectrum of Corporate Social Responsibility in Emerging Economies”, International Journal of Engineering and Management Research, Volume-4, Issue-1, February-2014,pp 32-36. P D Jose & Saurabh Saraf (2013),” “Corporate Sustainability Initiatives Reporting:A study of India‟s most valuable companies”, Indian Institute of Management Bangalore, Working paper no 428,September 2013. Ramendra Singh & Sharad Agarwal (2013),“Corporate Social Responsibility for Social Impact: Approach to Measure Social Impact using CSR Impact Index”, Indian Institute of Management Calcutta,Working Paper, PS No. 729/ June 2013.

Swati Sharma, Reshu Sharma & Jugal Kishor (2013), “Emerging trends in Corporate Social Responsibility in India-A Descriptive study” ,Global Journal of Commerce & Management Perspective, Vol. 2(2) , pp 58-62. Abha Chopra & Shruti Marriya (2013), “Corporate Social Responsibility and Education in India” Issues and Ideas in Education,Vol. 1, March 2013,pp. 13–22. Anshul Agarwal (2014), “The New Spectrum of Corporate Social Responsibility in Emerging Economies”, International Journal of Engineering and Management Research, Volume-4, Issue-1, February-2014,pp 32-36. P D Jose & Saurabh Saraf (2013),” “Corporate Sustainability Initiatives Reporting:A study of India‟s most valuable companies”, Indian Institute of Management Bangalore, Working paper no 428,September 2013. Ramendra Singh & Sharad Agarwal (2013),“Corporate Social Responsibility for Social Impact: Approach to Measure Social Impact using CSR Impact Index”, Indian Institute of Management Calcutta,Working Paper, PS No. 729/ June 2013.

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Akanksha Jain (2014) “The Mandatory CSR in India : A Boon or Bane”, Indian Journal Of applied Research , Volume : 4 | Issue : 1,pp 301-304.

Akanksha Jain (2014) “The Mandatory CSR in India : A Boon or Bane”, Indian Journal Of applied Research , Volume : 4 | Issue : 1,pp 301-304.

Author’s Profile

Author’s Profile

Dr. Asha Sharma, is Assistant Professor of Accounting at the Department of Commerce, Mahila P G Mahavidhalaya, Jai Narain Vyas University, Jodhpur. She has completed Master of Commerce and Ph. D degree in Accounting from Jai Narain Vyas University, Jodhpur. Dr. Sharma is a Life member of All India Accounting Association. She has been a University topper. Her areas of specializations are Accounting and Finance. She is registered Ph.D Guide and panel of examiners at for UG / PG at Jai Narain Vyas University, Jodhpur. She has contributed almost forty research papers to esteemed journals, besides participating in seminars and conferences. She is member of different editorial advisory board such as iJARS, i-XPLORE, IJBM and European journal. She organized many seminars on various topics.

Dr. Asha Sharma, is Assistant Professor of Accounting at the Department of Commerce, Mahila P G Mahavidhalaya, Jai Narain Vyas University, Jodhpur. She has completed Master of Commerce and Ph. D degree in Accounting from Jai Narain Vyas University, Jodhpur. Dr. Sharma is a Life member of All India Accounting Association. She has been a University topper. Her areas of specializations are Accounting and Finance. She is registered Ph.D Guide and panel of examiners at for UG / PG at Jai Narain Vyas University, Jodhpur. She has contributed almost forty research papers to esteemed journals, besides participating in seminars and conferences. She is member of different editorial advisory board such as iJARS, i-XPLORE, IJBM and European journal. She organized many seminars on various topics.

Dr. Ashutosh Kumar is a Professor and Area Chairperson--Marketing Department at Amity Business School, Gurgaon. He has completed Master in Business Administration and obtained Ph.D. in Business Administration from Jai Narain Vyas University, Jodhpur. He was also awarded with PGDM in Marketing. Dr. Kumar is a Life member of All India Management Association (AIMA) in recognition of his contribution and commitment in addition to life member of All India Commerce Association (ICA). He is member to different editorial advisory board such as IJMSSR, IJRRBP, IJBMER, GJMBS, ISAC and International Journal of Corporate Social Responsibility. His areas of interests are Retail Management, Sales & Distribution Management, Ambush Marketing, Brand Management, and WTO related issues.

Dr. Ashutosh Kumar is a Professor and Area Chairperson--Marketing Department at Amity Business School, Gurgaon. He has completed Master in Business Administration and obtained Ph.D. in Business Administration from Jai Narain Vyas University, Jodhpur. He was also awarded with PGDM in Marketing. Dr. Kumar is a Life member of All India Management Association (AIMA) in recognition of his contribution and commitment in addition to life member of All India Commerce Association (ICA). He is member to different editorial advisory board such as IJMSSR, IJRRBP, IJBMER, GJMBS, ISAC and International Journal of Corporate Social Responsibility. His areas of interests are Retail Management, Sales & Distribution Management, Ambush Marketing, Brand Management, and WTO related issues.

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Implementation of Corporate Social Responsibility in The Form of Investment Gallery (A Case Study: Indonesia Stock Exchange Gallery Universitas Nusantara PGRI Kediri and PT.Sucorinvest Central Gani)

Implementation of Corporate Social Responsibility in The Form of Investment Gallery (A Case Study: Indonesia Stock Exchange Gallery Universitas Nusantara PGRI Kediri and PT.Sucorinvest Central Gani)

Gesty Ernestivita1, Samari2, Subagyo3 Islamic University Kadiri, Kediri, East Java, Indonesia 2 Nusantara University PGRI Kediri, East Java, Indonesia 1 [email protected], 2 [email protected], 3 [email protected]

Gesty Ernestivita1, Samari2, Subagyo3 Islamic University Kadiri, Kediri, East Java, Indonesia 2 Nusantara University PGRI Kediri, East Java, Indonesia 1 [email protected], 2 [email protected], 3 [email protected]

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Abstract

Abstract

Corporate social responsibility (CSR) is the issue which gets great attention, especially in Indonesia. CSR is responsibility of corporation widely. Companies are today obliged to some certain responsibilities in the society where they are active. Although CSR programs have the consequences with a number of cost but on the other hand it also can provide benefits to the company. The number of investors in Indonesia is still cosidered minimal. Therefore, Securities Company like PT.Sucorinvest collaborate with Univesities and IDX create CSR Program called “Investment Gallery” expected to increase the number of new investors especially among students. Investment Gallery expected to increase society and students knowledge in capital market not only theoritical but also practical.

Corporate social responsibility (CSR) is the issue which gets great attention, especially in Indonesia. CSR is responsibility of corporation widely. Companies are today obliged to some certain responsibilities in the society where they are active. Although CSR programs have the consequences with a number of cost but on the other hand it also can provide benefits to the company. The number of investors in Indonesia is still cosidered minimal. Therefore, Securities Company like PT.Sucorinvest collaborate with Univesities and IDX create CSR Program called “Investment Gallery” expected to increase the number of new investors especially among students. Investment Gallery expected to increase society and students knowledge in capital market not only theoritical but also practical.

Keywords: Corporate Social Responsibility, Investment Gallery

Keywords: Corporate Social Responsibility, Investment Gallery

1. Introduction

1. Introduction

Corporate Social Responsibility (CSR) getting more attention among business world. Since reformation era, society become more critical and able to do social control toward world bussiness. Changes in level of social awareness, turn up new awareness of the importance of CSR (Daniri, 2008). CSR is a term used collectively to represent a number of related business activities, each of which has an impact on the way an organization conducts itself, and particularly how it interacts and deals with the world around it.

Corporate Social Responsibility (CSR) getting more attention among business world. Since reformation era, society become more critical and able to do social control toward world bussiness. Changes in level of social awareness, turn up new awareness of the importance of CSR (Daniri, 2008). CSR is a term used collectively to represent a number of related business activities, each of which has an impact on the way an organization conducts itself, and particularly how it interacts and deals with the world around it.

Companies are today obliged to some certain responsibilities in the society where they are active. The most basic responsibilities are laws and rules that they have to supply under. However over the latest years a wider liability on companies from the society has developed. Organizations today are forced to show that their business stands for something more than just profits, and that their activities add some value, or at least do not negatively affect the community around them (Ledwidge, 2007). These new demands on the companies and the fact that the discussion about the environment and sustainability has heated up over the latest years put new pressures on companies. CSR commitment has boosted over the latest years, this has put a new light on CSR obligations and the way organizations work with these issues. Often a difference in CSR intention and its actual implementation within an organization could be identified. This could be explained by the fact that CSR is sometimes seen as necessity, and that it is complementary instead of fundamental to an organization’s core strategy. This could lead to that companies have multiple identities - one for CSR activities and one for core businesses; A stature that has been called “corporate schizophrenia” (Ledwidge, 2007). In order to understand a company’s CSR work we intent to study the implementation process of CSR within a company.

Companies are today obliged to some certain responsibilities in the society where they are active. The most basic responsibilities are laws and rules that they have to supply under. However over the latest years a wider liability on companies from the society has developed. Organizations today are forced to show that their business stands for something more than just profits, and that their activities add some value, or at least do not negatively affect the community around them (Ledwidge, 2007). These new demands on the companies and the fact that the discussion about the environment and sustainability has heated up over the latest years put new pressures on companies. CSR commitment has boosted over the latest years, this has put a new light on CSR obligations and the way organizations work with these issues. Often a difference in CSR intention and its actual implementation within an organization could be identified. This could be explained by the fact that CSR is sometimes seen as necessity, and that it is complementary instead of fundamental to an organization’s core strategy. This could lead to that companies have multiple identities - one for CSR activities and one for core businesses; A stature that has been called “corporate schizophrenia” (Ledwidge, 2007). In order to understand a company’s CSR work we intent to study the implementation process of CSR within a company.

Although CSR programs have the consequences with a number of cost but on the other hand it also can provide benefits to the company, one of them is build company image. Company's image becomes important considering with many companies budgeting much cost in advertising is only for catching a positive imag. But not many companies are well aware of the need for the implementation of CSR. Nowadays, the application of CSR programs in companies can be reviewed in particular for developing because CSR application was identical with cost.

Although CSR programs have the consequences with a number of cost but on the other hand it also can provide benefits to the company, one of them is build company image. Company's image becomes important considering with many companies budgeting much cost in advertising is only for catching a positive imag. But not many companies are well aware of the need for the implementation of CSR. Nowadays, the application of CSR programs in companies can be reviewed in particular for developing because CSR application was identical with cost.

PT. Sucorinvest as equity brokerage company, in efforts to introduce the Capital Market in Indonesia, especially in education community, create a CSR program by launch investment gallery in

PT. Sucorinvest as equity brokerage company, in efforts to introduce the Capital Market in Indonesia, especially in education community, create a CSR program by launch investment gallery in

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collaboration with IDX and universities. The expectation is that society especially among education will be more familiar with the world capital market not only theoretically but also practically. It is also to break opinion about investing in the stock market requires huge funds, because in fact only one hundred thousand rupiah we can already invest in stock market.

collaboration with IDX and universities. The expectation is that society especially among education will be more familiar with the world capital market not only theoretically but also practically. It is also to break opinion about investing in the stock market requires huge funds, because in fact only one hundred thousand rupiah we can already invest in stock market.

2. Corporate Social Responsibility (CSR)

2. Corporate Social Responsibility (CSR)

CSR is a concept that has many different definitions and a concept that is growing in the corporate world today. In the 1960, Kevin Davis suggests that social responsibility refers to businesses´ “decisions and actions taken for reasons at least partially beyond the firm’s direct economic or technical interest” (Carroll, 1991). This is a concept that has been modified and developed over the latest decades. Today CSR is not a homogenous concept. Instead it should be seen as a combination of many areas: sustainability, corporate accountability and corporate governance in relations to its stakeholders (Löhman & Steinholtz, 2003). Löhman and Steinholtz (2003) furthermore claim that CSR has developed because of the change that has occurred in the world over the recent 20 years. Politics as well as business communities have been influenced by the globalization process and the displacement of values from material to immaterial values that has taken place. For the majority of the latest 30 years, corporate executives have struggled with the issue of the firm’s responsibility to its society (Carroll, 1991).

CSR is a concept that has many different definitions and a concept that is growing in the corporate world today. In the 1960, Kevin Davis suggests that social responsibility refers to businesses´ “decisions and actions taken for reasons at least partially beyond the firm’s direct economic or technical interest” (Carroll, 1991). This is a concept that has been modified and developed over the latest decades. Today CSR is not a homogenous concept. Instead it should be seen as a combination of many areas: sustainability, corporate accountability and corporate governance in relations to its stakeholders (Löhman & Steinholtz, 2003). Löhman and Steinholtz (2003) furthermore claim that CSR has developed because of the change that has occurred in the world over the recent 20 years. Politics as well as business communities have been influenced by the globalization process and the displacement of values from material to immaterial values that has taken place. For the majority of the latest 30 years, corporate executives have struggled with the issue of the firm’s responsibility to its society (Carroll, 1991).

To further increase the understanding of the concept CSR present different definitions of CSR will be presented below: Kotler and Lee (2005) claim,”Corporate social responsibility is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources.”. Similarly Löhman and Steinholtz (2003) find that ”Success in a globalize economy requires a redefinition of a company’s policies and practices resulting in efficient use of economic capital and ability to build, sustain and effectively deploy human, social and natural capital”. Equally the European Commission (2008) declares that CSR is "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis" (European Commission, 2008).

To further increase the understanding of the concept CSR present different definitions of CSR will be presented below: Kotler and Lee (2005) claim,”Corporate social responsibility is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources.”. Similarly Löhman and Steinholtz (2003) find that ”Success in a globalize economy requires a redefinition of a company’s policies and practices resulting in efficient use of economic capital and ability to build, sustain and effectively deploy human, social and natural capital”. Equally the European Commission (2008) declares that CSR is "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis" (European Commission, 2008).

Furthermore the European Commission declares, “Amongst other things, this definition helps to emphasize that: CSR covers social and environmental issues, in spite of the English term Corporate Social Responsibility; CSR is not or should not be separate from business strategy and operations: it is about integrating social and environmental concerns into business strategy and operations; CSR is a voluntary concept - An important aspect of CSR is how enterprises interact with their internal and external stakeholders (European Commission, 2008).

Furthermore the European Commission declares, “Amongst other things, this definition helps to emphasize that: CSR covers social and environmental issues, in spite of the English term Corporate Social Responsibility; CSR is not or should not be separate from business strategy and operations: it is about integrating social and environmental concerns into business strategy and operations; CSR is a voluntary concept - An important aspect of CSR is how enterprises interact with their internal and external stakeholders (European Commission, 2008).

3. Investment Gallery

3. Investment Gallery

Indonesia Stock Exchange (IDX) Investment Gallery means to introduce the world of capital market in education background. IDX Investment gallery concept is 3 in 1 which collaborations between the IDX, Universities and Securities Company (in this case PT.Sucorinvest). It is expected to not only introduce the Capital Market not only theory but also practice. Going forward through IDX Investment gallery that provides real time information to learn analyze trading activity, is expected to become a bridge to mastery theory and its practice in the capital market.

Indonesia Stock Exchange (IDX) Investment Gallery means to introduce the world of capital market in education background. IDX Investment gallery concept is 3 in 1 which collaborations between the IDX, Universities and Securities Company (in this case PT.Sucorinvest). It is expected to not only introduce the Capital Market not only theory but also practice. Going forward through IDX Investment gallery that provides real time information to learn analyze trading activity, is expected to become a bridge to mastery theory and its practice in the capital market.

IDX Investment galleries provide all publications and printed materials on the capital market, published by the Indonesia Stock Exchange, including regulations and the capital market law. The information and data in the IDX Investment gallery can be used by the academic community for academic purpose, not for commercial purposes except in terms of buying and selling stock transaction.The IDX Investment Gallery is expected to mutually benefit to all parties so that the dissemination of information on target capital market and can provide optimal benefits for students, practitioners of economics, investors, analysts and the general public capital markets in the surrounding area and good for the sake of socialization and education / education for the capital market and economic interests or alternative investments.

IDX Investment galleries provide all publications and printed materials on the capital market, published by the Indonesia Stock Exchange, including regulations and the capital market law. The information and data in the IDX Investment gallery can be used by the academic community for academic purpose, not for commercial purposes except in terms of buying and selling stock transaction.The IDX Investment Gallery is expected to mutually benefit to all parties so that the dissemination of information on target capital market and can provide optimal benefits for students, practitioners of economics, investors, analysts and the general public capital markets in the surrounding area and good for the sake of socialization and education / education for the capital market and economic interests or alternative investments.

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4. CSR Application Model in The Form of Investment Gallery

4. CSR Application Model in The Form of Investment Gallery

The number of investors in Indonesia is still cosidered minimal. Therefore, investment gallery expected to increase the number of new investors. Director of IDX, Adeki Basirun said that students are expected to help spread the knowledge of capital market.

The number of investors in Indonesia is still cosidered minimal. Therefore, investment gallery expected to increase the number of new investors. Director of IDX, Adeki Basirun said that students are expected to help spread the knowledge of capital market.

Open equity accounts are generally subject to a minimum budget about five million rupiahs . But, in this Investment Gallery, society especially students can open equity account only with one hundred thousand rupiah. In hope that students can get to know the capital markets practice and make the capital market as one of the means to invest. So that students and society can have shares only with funds one hundred thousand rupiah.

Open equity accounts are generally subject to a minimum budget about five million rupiahs . But, in this Investment Gallery, society especially students can open equity account only with one hundred thousand rupiah. In hope that students can get to know the capital markets practice and make the capital market as one of the means to invest. So that students and society can have shares only with funds one hundred thousand rupiah.

Investors number in Indonesia still very low, ie, the range of 410,000 to 420,000 investors among Indonesia's population 250 million people. Most investors are of childbearing age, not a few of whom are students and young executives. The lack of accessibility and public knowledge about investment products, such as stocks , bonds is the main reason. Therefore, the presence of the gallery, is expected to become more open access and domestic investors can continue to grow. Public knowledge about the stock market is still very minimal so that many people stuck on bulging investment. Therefore, this gallery is expected to be one solution for people who want to learn about the stock market.

Investors number in Indonesia still very low, ie, the range of 410,000 to 420,000 investors among Indonesia's population 250 million people. Most investors are of childbearing age, not a few of whom are students and young executives. The lack of accessibility and public knowledge about investment products, such as stocks , bonds is the main reason. Therefore, the presence of the gallery, is expected to become more open access and domestic investors can continue to grow. Public knowledge about the stock market is still very minimal so that many people stuck on bulging investment. Therefore, this gallery is expected to be one solution for people who want to learn about the stock market.

IDX Investmet Gallery also bring some facilities for students like provide data that student usually use for writing academic paper (financial reports of go public company, bank rates,etc). There is also mini library with some collections of economic books, and capital market dvds.

IDX Investmet Gallery also bring some facilities for students like provide data that student usually use for writing academic paper (financial reports of go public company, bank rates,etc). There is also mini library with some collections of economic books, and capital market dvds.

There are benefits obtained for each party in the establishment of CSR Program “IDX Investment

There are benefits obtained for each party in the establishment of CSR Program “IDX Investment

Gallery”:

Gallery”:

1.

For IDX, as a means of socialization and education in academic circles that can be done well, expected that society and student not only know the capital market theory but can immediately practice.

1.

For IDX, as a means of socialization and education in academic circles that can be done well, expected that society and student not only know the capital market theory but can immediately practice.

2.

For universities (Universitas Nusantara PGRI), there are strategic alliances with actors in Capital Market (IDX, AB, Data Vendors) . Increase image and value selling university.

2.

For universities (Universitas Nusantara PGRI), there are strategic alliances with actors in Capital Market (IDX, AB, Data Vendors) . Increase image and value selling university.

3.

For Securities Company (PT.Sucorinvest), as a step media campaign among students and academics and as a medium to recruit new competent human resource.

3.

For Securities Company (PT.Sucorinvest), as a step media campaign among students and academics and as a medium to recruit new competent human resource.

5. Conclusion

5. Conclusion

Corporate Social Responsibility (CSR) is a concept that the organization has a particular company responsibility towards customers, employees, shareholders, communities and the environment in all aspects of company operations. CSR is closely related to sustainable development , in which a housing in carrying out its activities are not based on business profits alone, but should also be based on social and environmental consequences for current and for a long period. In keeping with its commitment , not solely for profit , but also cares on the social community. PT.Sucorinvest has been implementing its CSR in a variety of activities, one of them is by open Investment Gallery colaborate with IDX and University. In this gallery, student and society can learn about capital market theoritically and practically teach by capital market practitioner. There are also some facilities like mini library, capital market school, seminars, workshop and all program and facilities is free.

Corporate Social Responsibility (CSR) is a concept that the organization has a particular company responsibility towards customers, employees, shareholders, communities and the environment in all aspects of company operations. CSR is closely related to sustainable development , in which a housing in carrying out its activities are not based on business profits alone, but should also be based on social and environmental consequences for current and for a long period. In keeping with its commitment , not solely for profit , but also cares on the social community. PT.Sucorinvest has been implementing its CSR in a variety of activities, one of them is by open Investment Gallery colaborate with IDX and University. In this gallery, student and society can learn about capital market theoritically and practically teach by capital market practitioner. There are also some facilities like mini library, capital market school, seminars, workshop and all program and facilities is free.

6. References

6. References

Carroll, A.B. (1991) The Pyramid of Corporate Social Responsibility: Toward the moral management of organizational stakeholders. Business Horizons. [Online] 34 (4), p.39-48. www.sciencedirect.com/science/article/B6W454DTS9V45V/2/45e3777e33e87944ed926c28923652f. Retrieved March, 30th 2015.

Carroll, A.B. (1991) The Pyramid of Corporate Social Responsibility: Toward the moral management of organizational stakeholders. Business Horizons. [Online] 34 (4), p.39-48. www.sciencedirect.com/science/article/B6W454DTS9V45V/2/45e3777e33e87944ed926c28923652f. Retrieved March, 30th 2015.

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Daniri, Mas Achmad. 2008. Standarisasi Tanggung Jawab Sosial Perusahaan (Bag I). www.madaniri.com/2008/01/17/standarisasi-tanggung-jawab-sosialperusahaan-bag-i/. Retrieved March, 30th 2015.

Daniri, Mas Achmad. 2008. Standarisasi Tanggung Jawab Sosial Perusahaan (Bag I). www.madaniri.com/2008/01/17/standarisasi-tanggung-jawab-sosialperusahaan-bag-i/. Retrieved March, 30th 2015.

EC,

EC,

European Commission, Summaries of Legislation. Corporate http://ec.europa.eu/enterprise/csr/index_en.htm. Retrieved March, 30th 2015

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Responsibility.

European Commission, Summaries of Legislation. Corporate http://ec.europa.eu/enterprise/csr/index_en.htm. Retrieved March, 30th 2015

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Responsibility.

Hermasson, Nikklas. & Olofsson, Olla. 2008. The CSR Implementation Process - A Four Step Model to an Efficient CSR Implementation. Kristianstad University: International Business and Economics Program Bachelor Desertation.

Hermasson, Nikklas. & Olofsson, Olla. 2008. The CSR Implementation Process - A Four Step Model to an Efficient CSR Implementation. Kristianstad University: International Business and Economics Program Bachelor Desertation.

IDX.

IDX.

2010. Galeri Investasi Bursa Efek Indonesia. http://www.idx.co.id/idth id/beranda/tentangbei/programbei/galeriinvestasibei.aspx. Retrieved March, 30 2015.

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Kotler, P. & Lee, N. (2005). Corporate Social Responsibility – Doing the Most Good For Your Company and Your Cause. Hoboken, New Jersey: John Wiley & Sons, Inc.

Kotler, P. & Lee, N. (2005). Corporate Social Responsibility – Doing the Most Good For Your Company and Your Cause. Hoboken, New Jersey: John Wiley & Sons, Inc.

Ledwidge, J. (2007). Corporate social responsibility: the risks and opportunities for HR. In. Human resource management international digest, 15 (6), pp. 27-30.

Ledwidge, J. (2007). Corporate social responsibility: the risks and opportunities for HR. In. Human resource management international digest, 15 (6), pp. 27-30.

Löhman, O. & Steinholtz, D. (2003). Ansvarsfulla Företaget: Corporate Social Responsibility I Praktiken. Ekerlids Förlag AB.

Löhman, O. & Steinholtz, D. (2003). Ansvarsfulla Företaget: Corporate Social Responsibility I Praktiken. Ekerlids Förlag AB.

Solopost. 2015. Pasar modal menjangkau kalangan mahasiswa di UNS. BEI membuka galeri investasi yang menyediakan Sahamku Rp100.000 dari OJK. http://www.solopos.com/2015/03/24/pasar-modal-digaleri-investasi-bei-beli-saham-cukup-rp100-000-mau-587736. Retrieved March, 30th 2015.

Solopost. 2015. Pasar modal menjangkau kalangan mahasiswa di UNS. BEI membuka galeri investasi yang menyediakan Sahamku Rp100.000 dari OJK. http://www.solopos.com/2015/03/24/pasar-modal-digaleri-investasi-bei-beli-saham-cukup-rp100-000-mau-587736. Retrieved March, 30th 2015.

Sulistyo, Budi. (2010). Implementasi Corporate Social Responsibility pada PT. AQUA DANONE. Gunadarma University

Sulistyo, Budi. (2010). Implementasi Corporate Social Responsibility pada PT. AQUA DANONE. Gunadarma University

Yulin. 2012. Penerapan Program CSR Untuk Meningkatkan Perilaku Pembelian Konsumen Pada Ritel. Wima: Kajian Ilmiah Mahasiswa Manajemen Vol 1, No.3.

Yulin. 2012. Penerapan Program CSR Untuk Meningkatkan Perilaku Pembelian Konsumen Pada Ritel. Wima: Kajian Ilmiah Mahasiswa Manajemen Vol 1, No.3.

Author’s Profile

Author’s Profile

Gesty Ernestivita holds Linguistiucs Bachelor in Brawijaya University (Class of 2009, cumloude), and now study Master of Management in Islamic University Kadiri (class of 2013). She is a practitioner in Capital market in one of leading securities company in Indonesia. She is also has online business run in fashion.

Gesty Ernestivita holds Linguistiucs Bachelor in Brawijaya University (Class of 2009, cumloude), and now study Master of Management in Islamic University Kadiri (class of 2013). She is a practitioner in Capital market in one of leading securities company in Indonesia. She is also has online business run in fashion.

Dr. Samari is one of senior lecture in Economic Faculty of Universitas Nusantara PGRI Kediri. Besides teaching, also have other activities like active in giving training and mentoring Micro, Small and Medium Enterprises, especially in East Java-Indonesia.

Dr. Samari is one of senior lecture in Economic Faculty of Universitas Nusantara PGRI Kediri. Besides teaching, also have other activities like active in giving training and mentoring Micro, Small and Medium Enterprises, especially in East Java-Indonesia.

Dr. Subagyo is lecture in Economic Faculty of Universitas Nusantara PGRI Kediri. Dr. Subagyo is one of senior lecture in Economic Faculty of Universitas Nusantara PGRI Kediri. Besides teaching, also have other activities like active in giving bussiness consultation, technical assistance, training and mentoring Micro, Small and Medium Enterprises (MSMeS), especially in East Java-Indonesia. Dr. Subagyo is a Director of Bussiness Development Services, an institution that provides business consulting services and research in the field of MSMeS development.

Dr. Subagyo is lecture in Economic Faculty of Universitas Nusantara PGRI Kediri. Dr. Subagyo is one of senior lecture in Economic Faculty of Universitas Nusantara PGRI Kediri. Besides teaching, also have other activities like active in giving bussiness consultation, technical assistance, training and mentoring Micro, Small and Medium Enterprises (MSMeS), especially in East Java-Indonesia. Dr. Subagyo is a Director of Bussiness Development Services, an institution that provides business consulting services and research in the field of MSMeS development.

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Practices of Corporate Social Responsibility in Ethiopia – Some Cases

Practices of Corporate Social Responsibility in Ethiopia – Some Cases

Krishna Shekhar Lal Das1, Dejene Ayele Tessema2 Professor, Wolkite University, Ethiopia President, Wolkite University, Ethiopia

Krishna Shekhar Lal Das1, Dejene Ayele Tessema2 Professor, Wolkite University, Ethiopia President, Wolkite University, Ethiopia

Abstract

Abstract

CSR is a broad concept of business concerns such as environmental protection, workers right, consumers and supplier’s protection and its behavior on social issues like skill, education, health, safety under the consideration of profit making. In Ethiopian context it is an initial stage but there are some good beginnings and also government has taken some interest by issuing an advisory guideline for companies to follow CSR in their business practices. Base on existing situation, we have discussed cases of some specific CSR practices in Ethiopia.

CSR is a broad concept of business concerns such as environmental protection, workers right, consumers and supplier’s protection and its behavior on social issues like skill, education, health, safety under the consideration of profit making. In Ethiopian context it is an initial stage but there are some good beginnings and also government has taken some interest by issuing an advisory guideline for companies to follow CSR in their business practices. Base on existing situation, we have discussed cases of some specific CSR practices in Ethiopia.

Keywords: Ethiopia, CSR, environmental protection, workers right, IPM, EHPEA,

Keywords: Ethiopia, CSR, environmental protection, workers right, IPM, EHPEA,

1. Introduction

1. Introduction

Corporate Social/ Citizenship Responsibility is an approach that makes a company more sustainable. It ensures that company work in balanced manner in economic, social and environmental aspects within the company and in interaction with interested parties outside the company. CSR also strengthen company‟s market and social position.

Corporate Social/ Citizenship Responsibility is an approach that makes a company more sustainable. It ensures that company work in balanced manner in economic, social and environmental aspects within the company and in interaction with interested parties outside the company. CSR also strengthen company‟s market and social position.

The CSR approach has become well accepted within the international business community. It has increasingly developed into a necessity in high-value markets such as Europe and the USA not only because of moral values and responsibilities regarding sustainability, but also because of the need for responsiveness towards stake holders.

The CSR approach has become well accepted within the international business community. It has increasingly developed into a necessity in high-value markets such as Europe and the USA not only because of moral values and responsibilities regarding sustainability, but also because of the need for responsiveness towards stake holders.

Furthermore, pressure groups, media, the state and other public bodies are pressing companies to become more socially and environmentally responsible. This makes companies more susceptible to reputation damage: rumor of child labour or careless use of pesticides can seriously damage their image – and thus their market position.

Furthermore, pressure groups, media, the state and other public bodies are pressing companies to become more socially and environmentally responsible. This makes companies more susceptible to reputation damage: rumor of child labour or careless use of pesticides can seriously damage their image – and thus their market position.

It is becoming more important for companies to develop a strategy for integrated sustainability that include people, planet and profit. Complying with voluntary standards combined with independent auditing and having market labels enables a company to „prove‟ or „guarantee‟ that what it says, it do. As per Ethiopian Government, CSR can be worked on at sectoral level. A good example, in Ethiopian context, is the development and implementation of the Code of Practice for floriculture by the Ethiopian Horticulture Producers and Exporters Association (EHPEA). The aim of this code is to build a reputation and create visibility for the sector that supports its objective of sustainability and credibility.

It is becoming more important for companies to develop a strategy for integrated sustainability that include people, planet and profit. Complying with voluntary standards combined with independent auditing and having market labels enables a company to „prove‟ or „guarantee‟ that what it says, it do. As per Ethiopian Government, CSR can be worked on at sectoral level. A good example, in Ethiopian context, is the development and implementation of the Code of Practice for floriculture by the Ethiopian Horticulture Producers and Exporters Association (EHPEA). The aim of this code is to build a reputation and create visibility for the sector that supports its objective of sustainability and credibility.

As we know, in the today‟s globalized business world Corporate Social Responsibility has become the pioneer business issue with ethical business governance. Nonetheless, the idea is in the early developing stage in most of the developing countries such as Ethiopia. Unlike the developed world in which the corporate governance system plays a key role in ensuring the ethical business practice, countries without stock market like Ethiopia are faced with lack of well established ethical business practice in general but there are many instances where we can see good CSR practices.

As we know, in the today‟s globalized business world Corporate Social Responsibility has become the pioneer business issue with ethical business governance. Nonetheless, the idea is in the early developing stage in most of the developing countries such as Ethiopia. Unlike the developed world in which the corporate governance system plays a key role in ensuring the ethical business practice, countries without stock market like Ethiopia are faced with lack of well established ethical business practice in general but there are many instances where we can see good CSR practices.

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1.1 Definition: A broad definition of CSR given by International Institute for Sustainable Development is a balanced approach for organizations to address economic, social and environmental issues in a way that aims to benefit people, communities and societies. (Sexsmith & Potts 2009). CSR is a complex area with an interdisciplinary focus which includes human rights, environmental responsibility, and diversity of management, sustainability and philanthropy. To ensure a long term economical, social and environmental sustainability one organization should identify its relevant and appropriate procedures to develop specific competence and undertake profitable investment (Idow & Fiho 2009).

1.1 Definition: A broad definition of CSR given by International Institute for Sustainable Development is a balanced approach for organizations to address economic, social and environmental issues in a way that aims to benefit people, communities and societies. (Sexsmith & Potts 2009). CSR is a complex area with an interdisciplinary focus which includes human rights, environmental responsibility, and diversity of management, sustainability and philanthropy. To ensure a long term economical, social and environmental sustainability one organization should identify its relevant and appropriate procedures to develop specific competence and undertake profitable investment (Idow & Fiho 2009).

Based on the above definitions CSR has developed as common was expressing a broad concepts of business concerns such as environmental protection, workers right, consumers and suppliers protection and its behavior on social issues like skill, education, health, safety under the consideration of profit making.

Based on the above definitions CSR has developed as common was expressing a broad concepts of business concerns such as environmental protection, workers right, consumers and suppliers protection and its behavior on social issues like skill, education, health, safety under the consideration of profit making.

Federal Minister of Agriculture Mr. Tefera Derbew explains CSR in Ethiopian context “in practice it entails constantly working on improving the three Ps (People, Planet and Profit) in a balance manner (Ministry of Agriculture, nd.)

Federal Minister of Agriculture Mr. Tefera Derbew explains CSR in Ethiopian context “in practice it entails constantly working on improving the three Ps (People, Planet and Profit) in a balance manner (Ministry of Agriculture, nd.)

2. Cases

2. Cases

2.1. Sustainable approach – case of ET Highland Rose firm

2.1. Sustainable approach – case of ET Highland Rose firm

Introducing socially and environmentally friendly approaches in commercial agriculture sometimes require a courageous attitude and great perseverance. Such was the case with the introduction of Integrated Pest Management (IPM) at ET Highland rose firm. IPM is a mainly biological method and is considered a sustainable alternative to the use of chemical pesticides. Emebet Tesfaye, farm manager at ET Highland, said that especially the first three months were worrisome. “I had sleepless nights due to the probability of loss of production. We knew we were taking a risk: changing from regular calendar spraying with chemicals to IPM can cost considerable production. The first phase of IPM indeed caused ET Highland a significant loss. Now however, the crops look healthier than ever, with full green leaves and colourful rose buds, thanks to IPM. We have therefore implemented IPM in all our other green houses and we would not want anything else. The risk, in the end, was well worth it”.

Introducing socially and environmentally friendly approaches in commercial agriculture sometimes require a courageous attitude and great perseverance. Such was the case with the introduction of Integrated Pest Management (IPM) at ET Highland rose firm. IPM is a mainly biological method and is considered a sustainable alternative to the use of chemical pesticides. Emebet Tesfaye, farm manager at ET Highland, said that especially the first three months were worrisome. “I had sleepless nights due to the probability of loss of production. We knew we were taking a risk: changing from regular calendar spraying with chemicals to IPM can cost considerable production. The first phase of IPM indeed caused ET Highland a significant loss. Now however, the crops look healthier than ever, with full green leaves and colourful rose buds, thanks to IPM. We have therefore implemented IPM in all our other green houses and we would not want anything else. The risk, in the end, was well worth it”.

The case of ET Highland is a good example of benefit (and dilemmas) of CSR. The firm management strove for an environmentally and socially sustainable approach, but knew that pioneering IPM meant taking a risk. The management took the risk and eventually appeared to be successful. The introduction of IPM had an additional benefit: it improved the company‟s positions in the world market.

The case of ET Highland is a good example of benefit (and dilemmas) of CSR. The firm management strove for an environmentally and socially sustainable approach, but knew that pioneering IPM meant taking a risk. The management took the risk and eventually appeared to be successful. The introduction of IPM had an additional benefit: it improved the company‟s positions in the world market.

2.2. Tinaw Rose Firm: CSR general Activities

2.2. Tinaw Rose Firm: CSR general Activities

This firm is near Gubre in Wolkite zone of SNNPR. This is a rose firm which mainly exports to European countries. This firm has adopted many CSR activities on regular basis and has considerable impact on wellbeing and benefits of local communities. This area is having negligent infrastructure and basic facilities are hardly available. Within its surroundings, the Tinaw has provided drinking waters taps, approaching roads and some educational facilities for children.

This firm is near Gubre in Wolkite zone of SNNPR. This is a rose firm which mainly exports to European countries. This firm has adopted many CSR activities on regular basis and has considerable impact on wellbeing and benefits of local communities. This area is having negligent infrastructure and basic facilities are hardly available. Within its surroundings, the Tinaw has provided drinking waters taps, approaching roads and some educational facilities for children.

Moreover, it has created seven hundred plus jobs for local people, which itself is a great CSR, seeing the high level of unemployment and extreme poverty in this area. Workers are getting wages and other facilities beyond the legal binding. The company is providing lunch to all employees on nominal charge just 1 birr a day. The firm manager Mr. Ashok Kumar Verma says, “if it is completely free, they will think negatively, that is why we have put a nominal charge of 1Birr”.

Moreover, it has created seven hundred plus jobs for local people, which itself is a great CSR, seeing the high level of unemployment and extreme poverty in this area. Workers are getting wages and other facilities beyond the legal binding. The company is providing lunch to all employees on nominal charge just 1 birr a day. The firm manager Mr. Ashok Kumar Verma says, “if it is completely free, they will think negatively, that is why we have put a nominal charge of 1Birr”.

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Including others, it provides overtime work on double rate, free education and skill enhancement for some of the potential workers to climb in the organizational ladder. For developed and advance countries these steps are quite normal but in the context of Ethiopian situation, they can be considered significant.

Including others, it provides overtime work on double rate, free education and skill enhancement for some of the potential workers to climb in the organizational ladder. For developed and advance countries these steps are quite normal but in the context of Ethiopian situation, they can be considered significant.

2.3. Corporate Citizenship Responsibility and Philanthropy by MIDROC Ethiopia Group Companies:

2.3. Corporate Citizenship Responsibility and Philanthropy by MIDROC Ethiopia Group Companies:

Corporate Governance - The MIDROC Ethiopia Investment Group is organized with various modalities of management. One set of companies are organized under MIDROC Ethiopia Technology Group, Chief Executive Officer. The other set of companies are organized as totally independent entities, some having Boards of Directors, where as a group have a Consultative Body represented by the Top Management of each of these companies. The Head Office of the MIDROC Ethiopia Investment Group serves also as the secretariat of this Consultative Body.

Corporate Governance - The MIDROC Ethiopia Investment Group is organized with various modalities of management. One set of companies are organized under MIDROC Ethiopia Technology Group, Chief Executive Officer. The other set of companies are organized as totally independent entities, some having Boards of Directors, where as a group have a Consultative Body represented by the Top Management of each of these companies. The Head Office of the MIDROC Ethiopia Investment Group serves also as the secretariat of this Consultative Body.

The Head offices of the companies provide administrative, human resources, financial and project management, and other coordination services. Human resources development is enhanced through a tailor made sustained training program. Budget and performance reviews are also carried out in accordance to accepted accounting principles code and formats put in place. Moreover, the Investment Group is promoting corporate good governance practices as much as possible.

The Head offices of the companies provide administrative, human resources, financial and project management, and other coordination services. Human resources development is enhanced through a tailor made sustained training program. Budget and performance reviews are also carried out in accordance to accepted accounting principles code and formats put in place. Moreover, the Investment Group is promoting corporate good governance practices as much as possible.

In line with the motto of the Investment Group “Committed to Development,” MIDROC Ethiopia allocates huge amount of local and foreign resources and exerts extensive efforts to ensure Good Governance in the investment group, promoting transparency and ethics in its public and private partnership affairs. MIDROC Ethiopia is among the very first few to introduce corporate “Code of Ethics” in Ethiopia. In addition, MIDOC Group of Companies are involved in other CSR activities such as road construction at couple of places, schools and clinics at its out of Addis Ababa facilities, Supporting Environmental and Health Advocacy Groups to list a few.

In line with the motto of the Investment Group “Committed to Development,” MIDROC Ethiopia allocates huge amount of local and foreign resources and exerts extensive efforts to ensure Good Governance in the investment group, promoting transparency and ethics in its public and private partnership affairs. MIDROC Ethiopia is among the very first few to introduce corporate “Code of Ethics” in Ethiopia. In addition, MIDOC Group of Companies are involved in other CSR activities such as road construction at couple of places, schools and clinics at its out of Addis Ababa facilities, Supporting Environmental and Health Advocacy Groups to list a few.

2.4. Good Conditions of Employment at RedFox

2.4. Good Conditions of Employment at RedFox

Red Fox is a multinational Company specialized in ornamental young plants. The management at their Ethiopian farm (which is in Koka) aims for a high CSR standard. Their conditions of employment reflect this standard. All workers obtain a written contract upon commencing work and, after a 3 to 6 month probation period, an annual contract is given. Based on a benchmark of comparable companies in the region, the Red Fox management knows that their employee‟s wages are as the same as or higher than those of the other companies‟ employees.

Red Fox is a multinational Company specialized in ornamental young plants. The management at their Ethiopian farm (which is in Koka) aims for a high CSR standard. Their conditions of employment reflect this standard. All workers obtain a written contract upon commencing work and, after a 3 to 6 month probation period, an annual contract is given. Based on a benchmark of comparable companies in the region, the Red Fox management knows that their employee‟s wages are as the same as or higher than those of the other companies‟ employees.

Besides their basic wage, employees receive complementary health care, sick leave, official vacation days (starting with 14 days the first year), maternity leave according to the Ethiopian labour laws, and complementary bread for lunch each day (1.2 birr per person) and a provident fund. People who have been working for more than one year and earn a certain threshold receive medical insurance. The entire company is covered by workers‟ compensation insurance. Also a workers council and an independent union are existing there. Almost 80% of workers joined the organizations

Besides their basic wage, employees receive complementary health care, sick leave, official vacation days (starting with 14 days the first year), maternity leave according to the Ethiopian labour laws, and complementary bread for lunch each day (1.2 birr per person) and a provident fund. People who have been working for more than one year and earn a certain threshold receive medical insurance. The entire company is covered by workers‟ compensation insurance. Also a workers council and an independent union are existing there. Almost 80% of workers joined the organizations

2.5. Kontinex Steel

2.5. Kontinex Steel

A number of employees of Kontinex Steel were moved by the difficult living conditions of the inhabitants of Ethiopia, founding the Worldwide Employment Foundation (WWE) in 2002 to make a difference. The foundation aims to create employment in developing countries, and thus stimulate the local economy. The WWE provides aid for communities in Ethiopia each year. Kontinex Steel made people and resources available to the foundation. By this time, 80 people had been provided with a job in Debre Zeit (approx. 40 kilometres from the capital) through the

A number of employees of Kontinex Steel were moved by the difficult living conditions of the inhabitants of Ethiopia, founding the Worldwide Employment Foundation (WWE) in 2002 to make a difference. The foundation aims to create employment in developing countries, and thus stimulate the local economy. The WWE provides aid for communities in Ethiopia each year. Kontinex Steel made people and resources available to the foundation. By this time, 80 people had been provided with a job in Debre Zeit (approx. 40 kilometres from the capital) through the

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foundation‟s efforts. These people continued to develop their skills by attending courses, some even going to school for the first time to learn how to read and write.

foundation‟s efforts. These people continued to develop their skills by attending courses, some even going to school for the first time to learn how to read and write.

2.5.1 Ethiopian Steel Profiling and Building Plc. In 2003, ESPBC began production of steel sections and hydra form building bricks. This material allowed the construction of beautiful, sturdy buildings and houses built without having to cut down trees. ESPBC also provided steel profiles for greenhouses for the international horticulture industry, providing many jobs for low-skilled men and women.

2.5.1 Ethiopian Steel Profiling and Building Plc. In 2003, ESPBC began production of steel sections and hydra form building bricks. This material allowed the construction of beautiful, sturdy buildings and houses built without having to cut down trees. ESPBC also provided steel profiles for greenhouses for the international horticulture industry, providing many jobs for low-skilled men and women.

2.5.2 Interlake’s International School: By 2015, all children in Ethiopia will go to school. This is one of the millennium development goals. With the establishment of Interlake‟s International School, WWE foundation provides children in Debre Zeit with a good teaching environment. Since September 2006, children have received education in English from a Dutch teacher. The Foundation also makes an effort to ensure that Ethiopian teachers are given training. Due to the explosive growth of the school (from 15 to 250 students in 6 years), they have transferred the school to the foundation 'Friends of Interlake‟s'.

2.5.2 Interlake’s International School: By 2015, all children in Ethiopia will go to school. This is one of the millennium development goals. With the establishment of Interlake‟s International School, WWE foundation provides children in Debre Zeit with a good teaching environment. Since September 2006, children have received education in English from a Dutch teacher. The Foundation also makes an effort to ensure that Ethiopian teachers are given training. Due to the explosive growth of the school (from 15 to 250 students in 6 years), they have transferred the school to the foundation 'Friends of Interlake‟s'.

2.6. Promoting Corporate Social Responsibility (CSR) Good Practices Related to Reproductive Health in Ethiopia

2.6. Promoting Corporate Social Responsibility (CSR) Good Practices Related to Reproductive Health in Ethiopia

„Initiative Africa‟ an NGO based in Addis Ababa undertook this project. This research was aimed at identifying CSR practices that exist among the Ethiopian private sector focused on the advancement of reproductive health, and thereby facilitate the adoption of such practices by business organizations. It was funded by the John D. and Catherine McArthur Foundation. Based on the findings of the assessment conducted in December 2010 on 13 private companies, a report was prepared highlighting major findings, challenges, and recommendations for the increased involvement of the private sector in reproductive health and other initiatives. Based on the report two tasks were carried out. The first task was the production of two documentary movies on the good practices of BGI Ethiopia and Sher Ethiopia whereas the second was the publication of a handbook on CSR good practices related to reproductive health in Ethiopia.

„Initiative Africa‟ an NGO based in Addis Ababa undertook this project. This research was aimed at identifying CSR practices that exist among the Ethiopian private sector focused on the advancement of reproductive health, and thereby facilitate the adoption of such practices by business organizations. It was funded by the John D. and Catherine McArthur Foundation. Based on the findings of the assessment conducted in December 2010 on 13 private companies, a report was prepared highlighting major findings, challenges, and recommendations for the increased involvement of the private sector in reproductive health and other initiatives. Based on the report two tasks were carried out. The first task was the production of two documentary movies on the good practices of BGI Ethiopia and Sher Ethiopia whereas the second was the publication of a handbook on CSR good practices related to reproductive health in Ethiopia.

Identifying and awarding business enterprises for their endeavors in the advancement of reproductive health among the community, is one of the mechanisms the project employed to promote such practice among businesses. Thus, the awarding ceremony was held on a forum on April 6, 2012, where 50 representatives of business organizations were present. A certificate of recognition was presented to two business organizations, BGI Ethiopia PLC Sher Ethiopia PLC, for their outstanding contribution to the advancement of reproductive health, to their employees, and better yet, to the general community.

Identifying and awarding business enterprises for their endeavors in the advancement of reproductive health among the community, is one of the mechanisms the project employed to promote such practice among businesses. Thus, the awarding ceremony was held on a forum on April 6, 2012, where 50 representatives of business organizations were present. A certificate of recognition was presented to two business organizations, BGI Ethiopia PLC Sher Ethiopia PLC, for their outstanding contribution to the advancement of reproductive health, to their employees, and better yet, to the general community.

Two 20 minutes radio programs on CSR good practices related to promoting reproductive health were produced based on the above documentaries and were transmitted through the national radio.

Two 20 minutes radio programs on CSR good practices related to promoting reproductive health were produced based on the above documentaries and were transmitted through the national radio.

3. References

3. References

Bedada, Samson Mechale and Eshetu, Messay Shiibre (2011), Ethiopian Floriculture Industry from

Bedada, Samson Mechale and Eshetu, Messay Shiibre (2011), Ethiopian Floriculture Industry from

Social Responsibility (CSR) & Governance Perspective (Karlstad Business School, Business Administration Master‟s Thesis)

Social Responsibility (CSR) & Governance Perspective (Karlstad Business School, Business Administration Master‟s Thesis)

Idow, O.S & Fiho, W. L. (2009), Professional Perspectives of Corporate Social Responsibility. Professionals Perspectives, Springer; 1st ed.

Idow, O.S & Fiho, W. L. (2009), Professional Perspectives of Corporate Social Responsibility. Professionals Perspectives, Springer; 1st ed.

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Ministry of Agriculture, and Ministry of Economic Affairs, Agriculture and Innovation, Ethiopia (nd), Inspiring practices in corporate social responsibility: Guidelines for commercial agriculture in Ethiopia

Ministry of Agriculture, and Ministry of Economic Affairs, Agriculture and Innovation, Ethiopia (nd), Inspiring practices in corporate social responsibility: Guidelines for commercial agriculture in Ethiopia

Sexsmith, K. & Potts, J. (2009), Voluntary Sustainability Standards and Economic Rents: The economic impacts of voluntary sustainable standards along the coffee, fisheries and forestry value chain, [Online] Available: http://www.iisd.org/pdf/2009/voluntary_standards_eco_rents.pdf [03-05-2014]

Sexsmith, K. & Potts, J. (2009), Voluntary Sustainability Standards and Economic Rents: The economic impacts of voluntary sustainable standards along the coffee, fisheries and forestry value chain, [Online] Available: http://www.iisd.org/pdf/2009/voluntary_standards_eco_rents.pdf [03-05-2014]

http://www.midroc-ethiopia.com.et/md04_citzinship.html

http://www.midroc-ethiopia.com.et/md04_citzinship.html

http://www.ksprofile.com/corporate-social-responsibility

http://www.ksprofile.com/corporate-social-responsibility

Personal interview with Mr. Ashok Kumar Verma, Farm Manager – Tinaw Business S.C.

Personal interview with Mr. Ashok Kumar Verma, Farm Manager – Tinaw Business S.C.

Author’s Profile

Author’s Profile

Dr. Krishna Shekhar Lal Das, is a Professor of Public Administration and International Relations at Wolkite Univesity, Ethiopia. He has successfully organized seven major international seminar/ conferences in Delhi, Mumbai and Gurgaon in India and Wolkite in Ethiopia. In addition, in his credit, there are numerous national level seminars/ conferences/ workshops/ symposia in India. Also he has completed many sponsored and collaborative quality researches on the issues of socio-economic development, employment and industry while working with NGOs, INGOs, the Government, and academic institutions since 1990. Moreover, he has been conducting many training workshops and trade union development programme on leadership, negotiation skills, industrial relations, labour and employment laws for state and national level trade unions leaders, labour officials at different cities in India. In addition he has also conducted AICTE (Govt. of India) funded national level Faculty Development Programmes at couple of institutions. He has been Editor of journals and magazines of different organizations in his career.

Dr. Krishna Shekhar Lal Das, is a Professor of Public Administration and International Relations at Wolkite Univesity, Ethiopia. He has successfully organized seven major international seminar/ conferences in Delhi, Mumbai and Gurgaon in India and Wolkite in Ethiopia. In addition, in his credit, there are numerous national level seminars/ conferences/ workshops/ symposia in India. Also he has completed many sponsored and collaborative quality researches on the issues of socio-economic development, employment and industry while working with NGOs, INGOs, the Government, and academic institutions since 1990. Moreover, he has been conducting many training workshops and trade union development programme on leadership, negotiation skills, industrial relations, labour and employment laws for state and national level trade unions leaders, labour officials at different cities in India. In addition he has also conducted AICTE (Govt. of India) funded national level Faculty Development Programmes at couple of institutions. He has been Editor of journals and magazines of different organizations in his career.

Professor Dejene Ayele Tessema is the President of Wolkite University. His field of specialization is Environmental Analytical Chemistry and research interests include Assessment of Environmental Fate of Pollutants, Speciation of Pollutants, Bioavailability and Bioremediation Exposure to Environmental and Occupational Pollutants. In his credit, there are numbers of peer reviewed national and international publications in journals, proceedings and books. Under his dynamic leadership Wolkite University is progressing well in the academic world.

Professor Dejene Ayele Tessema is the President of Wolkite University. His field of specialization is Environmental Analytical Chemistry and research interests include Assessment of Environmental Fate of Pollutants, Speciation of Pollutants, Bioavailability and Bioremediation Exposure to Environmental and Occupational Pollutants. In his credit, there are numbers of peer reviewed national and international publications in journals, proceedings and books. Under his dynamic leadership Wolkite University is progressing well in the academic world.

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Section 3

Section 3

Ethical Business Practices and Corporate Governance

Ethical Business Practices and Corporate Governance

The Link of Corporate Social Responsibility and Leadership– A Literature Review

The Link of Corporate Social Responsibility and Leadership– A Literature Review

Araz Nasirian1, Mikael Viklund Tallgren2 Araz Nasirian, Chalmers University of Technology 2 Mikael Viklund Tallgren, Chalmers University of Technology 1 [email protected], [email protected]

Araz Nasirian1, Mikael Viklund Tallgren2 Araz Nasirian, Chalmers University of Technology 2 Mikael Viklund Tallgren, Chalmers University of Technology 1 [email protected], [email protected]

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Abstract

Abstract

The purpose of this paper is to explore the influence of leadership on corporate social responsibility (CSR) and its implementations in companies. The methodology which built this paper is intensive literature review. The main result found is that there is a clear connection between different leadership styles and attitudes to CSR, where CSR initiatives aligned with long-term goals and the company strategic values are most effective.

The purpose of this paper is to explore the influence of leadership on corporate social responsibility (CSR) and its implementations in companies. The methodology which built this paper is intensive literature review. The main result found is that there is a clear connection between different leadership styles and attitudes to CSR, where CSR initiatives aligned with long-term goals and the company strategic values are most effective.

Keywords: corporate social responsibility, leadership, leadership styles.

Keywords: corporate social responsibility, leadership, leadership styles.

1. Introduction

1. Introduction

Corporate social responsibility (CSR) is a topic that has gained more and more attention in the last decade, both from the academic community as well as managers (Waldman et al., 2006). One reason for the managers to give an increasing interest to CSR is that several organizations have started to rank companies according to CSR performance, thus imposing market incentives to work actively with CSR (Porter and Kramer, 2006). Moreover, there are high volume of studies arguing that from the business perspective CSR can lead to gaining strong competitive advantage, for example the work by Bruke & Logsdon (1996).

Corporate social responsibility (CSR) is a topic that has gained more and more attention in the last decade, both from the academic community as well as managers (Waldman et al., 2006). One reason for the managers to give an increasing interest to CSR is that several organizations have started to rank companies according to CSR performance, thus imposing market incentives to work actively with CSR (Porter and Kramer, 2006). Moreover, there are high volume of studies arguing that from the business perspective CSR can lead to gaining strong competitive advantage, for example the work by Bruke & Logsdon (1996).

There is also a growing demand from society for companies to take on more social responsibilities. This is supported by statistics from an article by Wan-Jan (2006) that states that 80% of the public is of the opinion that companies have a moral duty to society. The article by Wan-Jan also states that 61% does not think that companies actually care about a social and environmental responsibility. Porter and Kramer (2006) mention that certain industries, such as energy and chemicals, use CSR initiatives as insurance to a positive image. It is an arguable action since the impact of good deeds are hard to measure, and thus the CSR initiatives would be hard to link to an increased positive image.

There is also a growing demand from society for companies to take on more social responsibilities. This is supported by statistics from an article by Wan-Jan (2006) that states that 80% of the public is of the opinion that companies have a moral duty to society. The article by Wan-Jan also states that 61% does not think that companies actually care about a social and environmental responsibility. Porter and Kramer (2006) mention that certain industries, such as energy and chemicals, use CSR initiatives as insurance to a positive image. It is an arguable action since the impact of good deeds are hard to measure, and thus the CSR initiatives would be hard to link to an increased positive image.

There are also companies acting on CSR values without having a clear reason for doing so, which could lead to adverse effects on the business (Waldman et al., 2006). Porter and Kramer (2006) also mention that companies that does not realize the financial risks and possible liabilities that external stakeholders, such as the society, could impose on the company, poses a great risk of going out of business as an effect of this, in short, a business that does not take heed on its position in society will find its success temporary in the long run (Porter and Kramer, 2006). To understand this issue further, it is time to explore some definitions of CSR.

There are also companies acting on CSR values without having a clear reason for doing so, which could lead to adverse effects on the business (Waldman et al., 2006). Porter and Kramer (2006) also mention that companies that does not realize the financial risks and possible liabilities that external stakeholders, such as the society, could impose on the company, poses a great risk of going out of business as an effect of this, in short, a business that does not take heed on its position in society will find its success temporary in the long run (Porter and Kramer, 2006). To understand this issue further, it is time to explore some definitions of CSR.

Although the concept of CSR seems to be a buzzword nowadays there is not a consonance regarding its definition between researchers, Weber (2008). However, what is considered as CSR in this study is according to the definition of European Commission: „„a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment‟‟ (COM 2001, 4) by integrating „„social and environmental concerns in their business operations and in their interaction with their stakeholders‟‟ (COM 2001, 6).

Although the concept of CSR seems to be a buzzword nowadays there is not a consonance regarding its definition between researchers, Weber (2008). However, what is considered as CSR in this study is according to the definition of European Commission: „„a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment‟‟ (COM 2001, 4) by integrating „„social and environmental concerns in their business operations and in their interaction with their stakeholders‟‟ (COM 2001, 6).

2. Method

2. Method

The paper is built around a review of some articles and a book chapter. This served as a steppingstone for selecting relevant keywords for further research of articles. The papers and the articles were selected through keyword searches in the databases Scopus as well as Google Scholar. Keywords used when searching databases

The paper is built around a review of some articles and a book chapter. This served as a steppingstone for selecting relevant keywords for further research of articles. The papers and the articles were selected through keyword searches in the databases Scopus as well as Google Scholar. Keywords used when searching databases

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such as Google scholar and Scopus has been; corporate social responsibility, CSR, profitability, leadership, leadership styles, stakeholder model and stakeholder pyramid. The keywords have been used in different combinations and the articles of the results have been selected by title and abstract. Initially the papers were reviewed, first by title and abstract, then the selected few by introduction and conclusions, the more in depth, which resulted in the articles, selected for his paper articles.

such as Google scholar and Scopus has been; corporate social responsibility, CSR, profitability, leadership, leadership styles, stakeholder model and stakeholder pyramid. The keywords have been used in different combinations and the articles of the results have been selected by title and abstract. Initially the papers were reviewed, first by title and abstract, then the selected few by introduction and conclusions, the more in depth, which resulted in the articles, selected for his paper articles.



3.1 CSR

3.1 CSR

CSR challenges the traditional view on the purpose of a corporation. The classic view is that a corporation has an economic purpose, generating revenue by supplying resources, services and products to the market with regards to demand. The profit then managed and distributed to its shareholders, owners and investors. As Balden et al., (2011) states, the companies should of course act within the bounds of the legal and social norms, but ethical questions should be about the process of the business, not the purpose of the business as it is in the stakeholder model, thus limiting the role of ethics.

CSR challenges the traditional view on the purpose of a corporation. The classic view is that a corporation has an economic purpose, generating revenue by supplying resources, services and products to the market with regards to demand. The profit then managed and distributed to its shareholders, owners and investors. As Balden et al., (2011) states, the companies should of course act within the bounds of the legal and social norms, but ethical questions should be about the process of the business, not the purpose of the business as it is in the stakeholder model, thus limiting the role of ethics.

The stakeholder model defined CSR around a belief that the corporation has an obligation to all stakeholders, not only the shareholders, investors and owners. Thus the stakeholder model broadens the field and makes it possible to take different aspects into account, not just human but natural environment and future generations, for example, too (Balden et al., 2011; Walden et al., 2006).

The stakeholder model defined CSR around a belief that the corporation has an obligation to all stakeholders, not only the shareholders, investors and owners. Thus the stakeholder model broadens the field and makes it possible to take different aspects into account, not just human but natural environment and future generations, for example, too (Balden et al., 2011; Walden et al., 2006).

Balden et al. (2011) indicates that in the stakeholder model the fate of the firm is an effect of its environment, thus implying that the company could benefit from taking a socially more responsible stance. They also argued the close coupling of the responsibilities that a leader in this model posses with regards to CSR. In the several definitions that Tsoutsoura (2004) lists, the responsibilities include going beyond the firms interests, beyond what is required by society and laws as well as honoring ethical values as well as showing respect for people, communities and the natural environment.

Balden et al. (2011) indicates that in the stakeholder model the fate of the firm is an effect of its environment, thus implying that the company could benefit from taking a socially more responsible stance. They also argued the close coupling of the responsibilities that a leader in this model posses with regards to CSR. In the several definitions that Tsoutsoura (2004) lists, the responsibilities include going beyond the firms interests, beyond what is required by society and laws as well as honoring ethical values as well as showing respect for people, communities and the natural environment.

The actual implementation of the stakeholder model seems to vary over the world, there seems to be a difference in attitudes in wealthy parts of the world in contrast to poorer parts, where managers in wealthier countries prioritises shareholders/owners interest before the greater society, whereas managers in poorer countries may feel more bound toward the greater good of the community.

The actual implementation of the stakeholder model seems to vary over the world, there seems to be a difference in attitudes in wealthy parts of the world in contrast to poorer parts, where managers in wealthier countries prioritises shareholders/owners interest before the greater society, whereas managers in poorer countries may feel more bound toward the greater good of the community.

Generally speaking there are a broad range of risks that threat companies. Considering the leaders who perform the ultimate decisions in the company, they have a lot of different risk aspects to take into account. According to Tsoutsoura (2004) these aspects of risks that are avoidable with implementing CSR principles are corporate governance, environmental aspects and the social aspects. These aspects are further used in the definition that Angus-Leppan et al. (2010) is using.

Generally speaking there are a broad range of risks that threat companies. Considering the leaders who perform the ultimate decisions in the company, they have a lot of different risk aspects to take into account. According to Tsoutsoura (2004) these aspects of risks that are avoidable with implementing CSR principles are corporate governance, environmental aspects and the social aspects. These aspects are further used in the definition that Angus-Leppan et al. (2010) is using.

Here CSR is based on the stakeholder model, which is split into two contrasting views, Implicit CSR, where rules and norms forms and results in mandatory and customary requirements for company to address stakeholder issues, and explicit CSR, where the company voluntary implements CSR through careful and deliberate strategic decisions (Angus-Leppan et al., 2010).

Here CSR is based on the stakeholder model, which is split into two contrasting views, Implicit CSR, where rules and norms forms and results in mandatory and customary requirements for company to address stakeholder issues, and explicit CSR, where the company voluntary implements CSR through careful and deliberate strategic decisions (Angus-Leppan et al., 2010).

The implicit CSR is naturally embedded in the relations between Government and society and thus also in relation with businesses. Implicit CSR could have adverse effects on companies, if they are hindered by legislation and rules to purse a productive path.

The implicit CSR is naturally embedded in the relations between Government and society and thus also in relation with businesses. Implicit CSR could have adverse effects on companies, if they are hindered by legislation and rules to purse a productive path.

Another layer that complicates the definition of CSR is that the social consequences differ between countries and parts of the world (Porter and Kramer, 2006). Other dimensions are for example evolving technology, change of leadership, changed natural environment or political environment where a change in each of these views will impact the company differently (Waldman et al., 2006).

Another layer that complicates the definition of CSR is that the social consequences differ between countries and parts of the world (Porter and Kramer, 2006). Other dimensions are for example evolving technology, change of leadership, changed natural environment or political environment where a change in each of these views will impact the company differently (Waldman et al., 2006).

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3.2 Leadership Styles

3.2 Leadership Styles

Since CSR is closely linked to stakeholders, the actions of managers and leaders play a great part in how the company is perceived. Waldman et al. (2006) states that managerial values impacts CSR performance greatly, thus reinforcing the importance of individual leader in context of CSR. Angus-Leppan et al. (2010) states that several leadership styles are important for CSR. These leadership styles that have been linked to CSR, are reinforcing CSR in both a positive and negative way, apart from this some leadership styles are conflicting when implementing CSR depending on if one uses the explicit or implicit CSR as a basis (Waldman et al., 2006). Below the definitions of ethical, autocratic, emergent and authentic, and styles that Angus –Leppan et al. (2010), has identified as closely linked to CSR, is described.

Since CSR is closely linked to stakeholders, the actions of managers and leaders play a great part in how the company is perceived. Waldman et al. (2006) states that managerial values impacts CSR performance greatly, thus reinforcing the importance of individual leader in context of CSR. Angus-Leppan et al. (2010) states that several leadership styles are important for CSR. These leadership styles that have been linked to CSR, are reinforcing CSR in both a positive and negative way, apart from this some leadership styles are conflicting when implementing CSR depending on if one uses the explicit or implicit CSR as a basis (Waldman et al., 2006). Below the definitions of ethical, autocratic, emergent and authentic, and styles that Angus –Leppan et al. (2010), has identified as closely linked to CSR, is described.

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Ethical leadership is recognised by the strong values of the leader, the will and behaviours to do the right thing in all situations. This produces a consistent and predictable leader that due to the ethical standards emphasises on honesty, openness and integrity (Angus-Leppan et al., 2010). Autocratic leadership is exemplified by the extreme lack of inclusiveness; an autocratic leader diminishes democratic processes and centralizes decision-making. The control imposed is of a dual nature, good in such as it is an effective way to prevent and solve social dilemmas (Angus-Leppan et al., 2010) and bad as hampering innovation. The emergent leadership is more diffuse. An emergent leader is not formally appointed and thus personal traits play a greater part when the leader emerges, as their traits is seen as leader like by the group members (Angus-Leppan et al., 2010). In authentic leadership, the leader aligns the personal believes and values with behaviour and actions in all situations, thus creating a visible moral image that other can draw upon (Bolden et al., 2011).

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Ethical leadership is recognised by the strong values of the leader, the will and behaviours to do the right thing in all situations. This produces a consistent and predictable leader that due to the ethical standards emphasises on honesty, openness and integrity (Angus-Leppan et al., 2010). Autocratic leadership is exemplified by the extreme lack of inclusiveness; an autocratic leader diminishes democratic processes and centralizes decision-making. The control imposed is of a dual nature, good in such as it is an effective way to prevent and solve social dilemmas (Angus-Leppan et al., 2010) and bad as hampering innovation. The emergent leadership is more diffuse. An emergent leader is not formally appointed and thus personal traits play a greater part when the leader emerges, as their traits is seen as leader like by the group members (Angus-Leppan et al., 2010). In authentic leadership, the leader aligns the personal believes and values with behaviour and actions in all situations, thus creating a visible moral image that other can draw upon (Bolden et al., 2011).

4. Results

4. Results

As Wan-Jan (2006) states one of the problems with implementing CSR is that there are different views on how CSR should be implemented. Some argue that it should be obvious for companies to be socially responsible without directly benefitting from it, whilst other argues that they should only act according to be able to benefit from it. Bolden et al. (2011) brings forward the perspective that the wider CSR/stakeholder model in the end reduces ethics to rules and compliance with rules, a sincerely depressing view.

As Wan-Jan (2006) states one of the problems with implementing CSR is that there are different views on how CSR should be implemented. Some argue that it should be obvious for companies to be socially responsible without directly benefitting from it, whilst other argues that they should only act according to be able to benefit from it. Bolden et al. (2011) brings forward the perspective that the wider CSR/stakeholder model in the end reduces ethics to rules and compliance with rules, a sincerely depressing view.

The matter of if acting socially responsible is beneficial for corporates or not is a controversial one. This issue is analyzed from short-term and long-term financial perspective. In both of perspectives there are inconsistencies between results of researches. For example, considering the relations between CSR and financial benefits, Wright and Ferris (1997) and Posnikoff (1997) found a negative and positive relationship, respectively. The reason behind these inconsistencies could be the differences in the defined model which encompass the relation of CSR and financial performance of the corporation.

The matter of if acting socially responsible is beneficial for corporates or not is a controversial one. This issue is analyzed from short-term and long-term financial perspective. In both of perspectives there are inconsistencies between results of researches. For example, considering the relations between CSR and financial benefits, Wright and Ferris (1997) and Posnikoff (1997) found a negative and positive relationship, respectively. The reason behind these inconsistencies could be the differences in the defined model which encompass the relation of CSR and financial performance of the corporation.

However, of course there are some special benefits with regard to acting socially responsible. Waldman et al. (2006) suggests that companies should hold societal-level values as guiding values when developing the values in the organization. Thus naturally incorporating CSR in strategic values reduces the risk for misconduct, Tsoutsoura (2004). In the end, when this reduces the probability of having negative social image, and consequently there is less need to spend large budget on recovering the corporate image through advertisements and such. According to Tsoutsoura (2004) a successful implementation of CSR by the corporations‟ leaders would lead to a range of benefits. CSR initiatives could for example dramatically reduce operating costs. Angus–Leppan et al. (2010), links business costs with individual leaders‟ integrity.

However, of course there are some special benefits with regard to acting socially responsible. Waldman et al. (2006) suggests that companies should hold societal-level values as guiding values when developing the values in the organization. Thus naturally incorporating CSR in strategic values reduces the risk for misconduct, Tsoutsoura (2004). In the end, when this reduces the probability of having negative social image, and consequently there is less need to spend large budget on recovering the corporate image through advertisements and such. According to Tsoutsoura (2004) a successful implementation of CSR by the corporations‟ leaders would lead to a range of benefits. CSR initiatives could for example dramatically reduce operating costs. Angus–Leppan et al. (2010), links business costs with individual leaders‟ integrity.

Further benefits are that companies that are perceived to have a strong CSR commitment often have an increased ability to attract and to retain employees. Thus, as a result, the implementation of a socially responsible way of operating increases the chance of creating higher commitment to work within the staff (Tsoutsoura, 2004).

Further benefits are that companies that are perceived to have a strong CSR commitment often have an increased ability to attract and to retain employees. Thus, as a result, the implementation of a socially responsible way of operating increases the chance of creating higher commitment to work within the staff (Tsoutsoura, 2004).

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As Angus-Leppan et al.(2010) states, different leadership styles is needed for different situations, thus even though the implementation of explicit and implicit CSR demands conflicting leadership styles, there is room for a range of leadership styles in the context of the organisation. The reason for this is that the actual implementation of CSR values is in the hands of individual managers. Therefore it is interesting to explore the connection of leadership styles and the implicit and explicit view on CSR. As Angus –Leppan et al. (2010) found in their research, explicit CSR was coupled with the autocratic leadership style, whereas the implicit CSR were linked to authentic and emergent leadership values.

5. Analysis

As Angus-Leppan et al.(2010) states, different leadership styles is needed for different situations, thus even though the implementation of explicit and implicit CSR demands conflicting leadership styles, there is room for a range of leadership styles in the context of the organisation. The reason for this is that the actual implementation of CSR values is in the hands of individual managers. Therefore it is interesting to explore the connection of leadership styles and the implicit and explicit view on CSR. As Angus –Leppan et al. (2010) found in their research, explicit CSR was coupled with the autocratic leadership style, whereas the implicit CSR were linked to authentic and emergent leadership values.

5. Analysis

The different definitions and their breadth may indicate that the research area has not matured enough or that there is a gap between academic research and the adoption in businesses.

The different definitions and their breadth may indicate that the research area has not matured enough or that there is a gap between academic research and the adoption in businesses.

An interesting insight by Porter and Kramer (2006) is that CSR reports produced by companies, they are often more telling what they do not instead of mentioning what they do. Thus hinting of a possible problem that companies tend to try to produce an image of themselves as more CSR than they actually are.

An interesting insight by Porter and Kramer (2006) is that CSR reports produced by companies, they are often more telling what they do not instead of mentioning what they do. Thus hinting of a possible problem that companies tend to try to produce an image of themselves as more CSR than they actually are.

Interesting is also that Anguse-Leppan et al. (2010), found that Autocratic leaders often are associated with explicit CSR, that is firmly based in the company, while the implicit CSR is linked to authentic and emergent leadership and values. A possible explanation for this could be that values instilled by the society resonates more with the authentic and emergent leadership as that leader embodies the values instilled, whereas explicit values is easier enforced by an autocratic leader.

Interesting is also that Anguse-Leppan et al. (2010), found that Autocratic leaders often are associated with explicit CSR, that is firmly based in the company, while the implicit CSR is linked to authentic and emergent leadership and values. A possible explanation for this could be that values instilled by the society resonates more with the authentic and emergent leadership as that leader embodies the values instilled, whereas explicit values is easier enforced by an autocratic leader.

If businesses use frameworks as those used for exploring strategy decisions to guide their evolvement of CSR values critical factors for success is produced (Porter and Kramer, 2006). Corporations that practice CSR as imposed on them, implicit CSR, does not convey the message of doing CSR since their language does not use the concept s of CSR. This is not the case in the companies that have actively chosen and implemented CSR, the explicit CSR; they clearly convey the CSR practices and polices (Angus-Leppan et al., 2010).

If businesses use frameworks as those used for exploring strategy decisions to guide their evolvement of CSR values critical factors for success is produced (Porter and Kramer, 2006). Corporations that practice CSR as imposed on them, implicit CSR, does not convey the message of doing CSR since their language does not use the concept s of CSR. This is not the case in the companies that have actively chosen and implemented CSR, the explicit CSR; they clearly convey the CSR practices and polices (Angus-Leppan et al., 2010).

The moral appeal – arguing that companies have a duty to be good citizens and to “do the right thing”– is prominent in the goal of Business for Social Responsibility, the leading non-profit CSR business association in the United States. It asks that its members to achieve commercial success in ways that honor ethical values and respect people, (Porter and Kramer, 2006).

The moral appeal – arguing that companies have a duty to be good citizens and to “do the right thing”– is prominent in the goal of Business for Social Responsibility, the leading non-profit CSR business association in the United States. It asks that its members to achieve commercial success in ways that honor ethical values and respect people, (Porter and Kramer, 2006).

Research into the results about the CSR and long run, as well as short-run, financial performance is at best inconsistent (McWilliams and Siegel, 2000). The reasons for this according to McWilliams and Siegel are the faulty framework for analysis used to assess CSR in different firms. Thus they state that it is impossible to isolate the impact of CSR on firm performance unless the model is properly specified. As CSR can be seen as either ethical stance taken by the corporation, or a business strategy, either way is positive for the stakeholder according to Wan-Jan (2006). Both perspectives treat stakeholders in an ethically positive way, but for two different reasons, the ethical perspective since the firm regards it as the proper way to behave, and in the strategy perspective as it is believed to further the business. Thus he argues that it is possible to serve the greater good of society without jeopardizing shareholders interest (Wan-Jan, 2006).

Research into the results about the CSR and long run, as well as short-run, financial performance is at best inconsistent (McWilliams and Siegel, 2000). The reasons for this according to McWilliams and Siegel are the faulty framework for analysis used to assess CSR in different firms. Thus they state that it is impossible to isolate the impact of CSR on firm performance unless the model is properly specified. As CSR can be seen as either ethical stance taken by the corporation, or a business strategy, either way is positive for the stakeholder according to Wan-Jan (2006). Both perspectives treat stakeholders in an ethically positive way, but for two different reasons, the ethical perspective since the firm regards it as the proper way to behave, and in the strategy perspective as it is believed to further the business. Thus he argues that it is possible to serve the greater good of society without jeopardizing shareholders interest (Wan-Jan, 2006).

6. Discussion

6. Discussion

The broad definitions of CSR is both a curse and a blessing since the breadth makes it possible to encompass all possible stakeholders, which is also one of the weaknesses, since it creates an ambiguity.

The broad definitions of CSR is both a curse and a blessing since the breadth makes it possible to encompass all possible stakeholders, which is also one of the weaknesses, since it creates an ambiguity.

The main result found is that there is a clear connection between different leadership styles and attitudes to CSR, where CSR initiatives are aligned with long-term goals and the company strategic values is most effective. The connection of CSR and different leadership is a quite natural one; an authentic leader with

The main result found is that there is a clear connection between different leadership styles and attitudes to CSR, where CSR initiatives are aligned with long-term goals and the company strategic values is most effective. The connection of CSR and different leadership is a quite natural one; an authentic leader with

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strong personal social and ethical values will of course reflect this upon the organization this leader is working in.

strong personal social and ethical values will of course reflect this upon the organization this leader is working in.

The role of CSR in corporation is definitely here to stay and as Porter and Kramer (2006) state, it is important that it becomes a natural part of business strategy and not just some varnish to try to convey something that the company does not believe entirely. Here the role of the CEO as a role model is clearly important to inspire and hire managers with the right values with regards to CSR and company strategy.

The role of CSR in corporation is definitely here to stay and as Porter and Kramer (2006) state, it is important that it becomes a natural part of business strategy and not just some varnish to try to convey something that the company does not believe entirely. Here the role of the CEO as a role model is clearly important to inspire and hire managers with the right values with regards to CSR and company strategy.

A possible future research topic could be to investigate in the connection of certain values of a leader and the company culture. Does individual values drive the company culture as a hole, and what kind of impact does they really have. Maybe it could be possible to conduct a series of qualitative interviews to map the current situation in a corporation actively working with CSR issues.

A possible future research topic could be to investigate in the connection of certain values of a leader and the company culture. Does individual values drive the company culture as a hole, and what kind of impact does they really have. Maybe it could be possible to conduct a series of qualitative interviews to map the current situation in a corporation actively working with CSR issues.

7. References

7. References

Angus-Leppan, T., Metcalf, L., & Benn, S. (2010). Leadership styles and CSR practice: An examination of

Angus-Leppan, T., Metcalf, L., & Benn, S. (2010). Leadership styles and CSR practice: An examination of

sensemaking, institutional drivers and CSR leadership. Journal of Business Ethics, 93(2), 189-213.

sensemaking, institutional drivers and CSR leadership. Journal of Business Ethics, 93(2), 189-213.

Bolden, R., Hawkins, B., Gosling, J., & Taylor, S. (2011). Exploring leadership: individual, organizational, and societal perspectives. Oxford University Press.

Bolden, R., Hawkins, B., Gosling, J., & Taylor, S. (2011). Exploring leadership: individual, organizational, and societal perspectives. Oxford University Press.

Burke, L., & Logsdon, J. M. (1996). How corporate social responsibility pays off. Long range planning, 29(4),495-502.

Burke, L., & Logsdon, J. M. (1996). How corporate social responsibility pays off. Long range planning, 29(4),495-502.

COM (2001) (Ed): Green paper: Promoting a European framework for Corporate Social Responsibility, COM

COM (2001) (Ed): Green paper: Promoting a European framework for Corporate Social Responsibility, COM

(2001) 366 final, 18.7.2001, Brussels: Commission of the European Communities. McWilliams, A., & Siegel, D. (2000). Research notes and communications. Corporate social responsibility and

(2001) 366 final, 18.7.2001, Brussels: Commission of the European Communities. McWilliams, A., & Siegel, D. (2000). Research notes and communications. Corporate social responsibility and

financial performance: correlation or misspecification?. Strategic management journal, 21(5), 603

financial performance: correlation or misspecification?. Strategic management journal, 21(5), 603

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Porter, M. E., & Kramer, M. R. (2006). The link between competitive advantage and corporate social responsibility. Harvard business review, 84(12), 78-92.

Porter, M. E., & Kramer, M. R. (2006). The link between competitive advantage and corporate social responsibility. Harvard business review, 84(12), 78-92.

Posnikoff, J. F. (1997). Disinvestment from South Africa: They did well by doing good. Contemporary Economic Policy, 15(1), 76-86.

Posnikoff, J. F. (1997). Disinvestment from South Africa: They did well by doing good. Contemporary Economic Policy, 15(1), 76-86.

Tsoutsoura, M. (2004). Corporate social responsibility and financial performance. Center for Responsible

Tsoutsoura, M. (2004). Corporate social responsibility and financial performance. Center for Responsible

Business.

Business.

Waldman, D. A., de Luque, M. S., Washburn, N., House, R. J., Adetoun, B., Barrasa, A., ... & Wilderom, C. P.

Waldman, D. A., de Luque, M. S., Washburn, N., House, R. J., Adetoun, B., Barrasa, A., ... & Wilderom, C. P.

(2006). Cultural and leadership predictors of corporate social responsibility values of top management:

(2006). Cultural and leadership predictors of corporate social responsibility values of top management:

A GLOBE study of 15 countries. Journal of International Business Studies, 37(6), 823-837.

A GLOBE study of 15 countries. Journal of International Business Studies, 37(6), 823-837.

Wan‐Jan, W. S. (2006). Defining corporate social responsibility. Journal of Public Affairs, 6(3‐4), 176-184.

Wan‐Jan, W. S. (2006). Defining corporate social responsibility. Journal of Public Affairs, 6(3‐4), 176-184.

Weber, M. (2008). The business case for corporate social responsibility: A company-level measurement

Weber, M. (2008). The business case for corporate social responsibility: A company-level measurement

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approach for CSR. European Management Journal, 26(4), 247-261. Wright, P., & Ferris, S. P. (1997). Agency conflict and corporate strategy: The effect of divestment on corporate value. Strategic management journal, 18(1), 77-83.

Author’s Profile

approach for CSR. European Management Journal, 26(4), 247-261. Wright, P., & Ferris, S. P. (1997). Agency conflict and corporate strategy: The effect of divestment on corporate value. Strategic management journal, 18(1), 77-83.

Author’s Profile

Araz Nasirian educational background is B.Sc. in Civil Engineering from Azad

Araz Nasirian educational background is B.Sc. in Civil Engineering from Azad

University of Iran and M.Sc. in Construction Project Management from Chalmers

University of Iran and M.Sc. in Construction Project Management from Chalmers

University of Sweden. Right now, he is working as teacher assistant in Azad

University of Sweden. Right now, he is working as teacher assistant in Azad

University of Ardebil in Iran. He is also active in construction industry as a

University of Ardebil in Iran. He is also active in construction industry as a

contractor. He get interested in the subject of CSR as he and his colleague Mikael

contractor. He get interested in the subject of CSR as he and his colleague Mikael

Tallgren were doing a research project under supervision of Prof. Christine Räisänen

Tallgren were doing a research project under supervision of Prof. Christine Räisänen

in Chalmers University of Tecnology.

in Chalmers University of Tecnology.

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Evaluating the Effectiveness of CSR Practices in a MNE

Evaluating the Effectiveness of CSR Practices in a MNE

Isra Abu Zayed1, Reeny Mary Thomas 2 Masters Students at the British University in Dubai, 1 [email protected] , [email protected]

Isra Abu Zayed1, Reeny Mary Thomas 2 Masters Students at the British University in Dubai, 1 [email protected] , [email protected]

1,2

1,2

Abstract

Abstract

A multinational pharmaceutical company was selected in order to analyze their corporate social responsibility (CSR) policy. Many MNEs use CSR as a means of indirect marketing. Through an extensive literature review it was observed that the pharmaceutical company’s CSR strategy was lacking in two main areas. Once the two main weaknesses were determined, place the following recommendations where made:

A multinational pharmaceutical company was selected in order to analyze their corporate social responsibility (CSR) policy. Many MNEs use CSR as a means of indirect marketing. Through an extensive literature review it was observed that the pharmaceutical company’s CSR strategy was lacking in two main areas. Once the two main weaknesses were determined, place the following recommendations where made:

1) It was observed that employees carried out unethical or discriminative behavior only if they felt that the office environment was accepting of it. The best way to manage CSR internally is through strong leadership within the HR department. Clear consequences and strict action on this matter is needed.

1) It was observed that employees carried out unethical or discriminative behavior only if they felt that the office environment was accepting of it. The best way to manage CSR internally is through strong leadership within the HR department. Clear consequences and strict action on this matter is needed.

2) CSR is not successful when implemented as a ‘cut and paste’ solution. Customization is needed to ensures a greater opportunity to connect and benefit communities In order to reach out to communities locally, local management needs to be empowered.

2) CSR is not successful when implemented as a ‘cut and paste’ solution. Customization is needed to ensures a greater opportunity to connect and benefit communities In order to reach out to communities locally, local management needs to be empowered.

Keywords: Corporate Social Responsibility, benchmarks, empowerment, diversity, ethics, pharmaceutical, SME

Keywords: Corporate Social Responsibility, benchmarks, empowerment, diversity, ethics, pharmaceutical, SME

1. Introduction

1. Introduction

Companies around the world have a responsibility towards their stake holders. In order for a company to survive it must ensure that they manage each of their stakeholders accordingly. Multinational enterprises, which are companies who have expanded their operations internationally, have an especially important responsibility to their stakeholders and society in general. Their presence in countries around the world, some of which are developing, sets the expectation that they need to be giving back to the communities from which they are benefiting.

Companies around the world have a responsibility towards their stake holders. In order for a company to survive it must ensure that they manage each of their stakeholders accordingly. Multinational enterprises, which are companies who have expanded their operations internationally, have an especially important responsibility to their stakeholders and society in general. Their presence in countries around the world, some of which are developing, sets the expectation that they need to be giving back to the communities from which they are benefiting.

Corporate social responsibility is the responsibility of the company to act conscientiously when dealing with each of their stakeholder, be it the government, employees or even the society in which they are present. CSR also encompasses within it the economic, social and environmental implications which the company‟s operations might effect. For example, a company which produces wooden tables must be environmentally responsible by ensuring that they plant trees. Pharmaceutical companies have an especially difficult expectation to manage when it come to their CSR practices as their products directly influence consumer health and wellbeing.

Corporate social responsibility is the responsibility of the company to act conscientiously when dealing with each of their stakeholder, be it the government, employees or even the society in which they are present. CSR also encompasses within it the economic, social and environmental implications which the company‟s operations might effect. For example, a company which produces wooden tables must be environmentally responsible by ensuring that they plant trees. Pharmaceutical companies have an especially difficult expectation to manage when it come to their CSR practices as their products directly influence consumer health and wellbeing.

2. Literature Review

2. Literature Review

Corporate social responsibility (CSR) is a very broad term that can be defined in many different ways. The absence of a consensual definition of corporate social responsibility (Bartlett & Devin, 2011) and its „intangible and elusive‟ terminology (Smith and Langford, 2009) makes it challenging for researchers in the field. Companies choose to define CSR in a way that best benefits them as it can be manipulated through a variety of definition. In order to truly define CSR one must take a holistic integration of it. The importance internal organizational culture (Mehrdost 2012; Brammer et al. 2007; Rayton 2006, cited in Munro 2013) as well as the external factors (Azmat & Samaratunge 2009, cited in Munro 2013).

Corporate social responsibility (CSR) is a very broad term that can be defined in many different ways. The absence of a consensual definition of corporate social responsibility (Bartlett & Devin, 2011) and its „intangible and elusive‟ terminology (Smith and Langford, 2009) makes it challenging for researchers in the field. Companies choose to define CSR in a way that best benefits them as it can be manipulated through a variety of definition. In order to truly define CSR one must take a holistic integration of it. The importance internal organizational culture (Mehrdost 2012; Brammer et al. 2007; Rayton 2006, cited in Munro 2013) as well as the external factors (Azmat & Samaratunge 2009, cited in Munro 2013).

In order to fully understand the importance of the holistic review, a closer look will be taken at a) CSR internally within an organization and b) the application of CSR initiatives externally.

In order to fully understand the importance of the holistic review, a closer look will be taken at a) CSR internally within an organization and b) the application of CSR initiatives externally.

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Companies producing chemicals on a business to business basis have limited contact or opportunity to better their company‟s image. According to Verboven (2011) it is important for chemical companies to be transparent with their CSR initiatives. The two main approaches for companies within the chemical industry are the „Responsive CSR‟ and the „Strategic CSR‟.

Companies producing chemicals on a business to business basis have limited contact or opportunity to better their company‟s image. According to Verboven (2011) it is important for chemical companies to be transparent with their CSR initiatives. The two main approaches for companies within the chemical industry are the „Responsive CSR‟ and the „Strategic CSR‟.

Within the Responsive CSR companies take on a delayed CSR approach which hopes to reduce the impacts of the company‟s practices after the damage has already been done. This delayed approach done as a „slap on – quick fix‟ to a company‟s negative image. The second approach is the Strategic CSR. Strategic CSR is about looking back at the company‟s entire process and revaluating it in order to embed CSR into its core and fundamental practices. This approach is seen as far more beneficial and is considered to be the method which will lead the way for companies hoping to grow into the future (Verboven, 2011).

Within the Responsive CSR companies take on a delayed CSR approach which hopes to reduce the impacts of the company‟s practices after the damage has already been done. This delayed approach done as a „slap on – quick fix‟ to a company‟s negative image. The second approach is the Strategic CSR. Strategic CSR is about looking back at the company‟s entire process and revaluating it in order to embed CSR into its core and fundamental practices. This approach is seen as far more beneficial and is considered to be the method which will lead the way for companies hoping to grow into the future (Verboven, 2011).

Pharmaceutical companies carry great importance and responsibility. On one hand they are helping save people‟s lives with their medication, but on the other, they have the ability to reduce their prices and save million more people. They are often criticized for their inability to allow their medication to be accessible to people in developing nations (Verboven, 2011).

Pharmaceutical companies carry great importance and responsibility. On one hand they are helping save people‟s lives with their medication, but on the other, they have the ability to reduce their prices and save million more people. They are often criticized for their inability to allow their medication to be accessible to people in developing nations (Verboven, 2011).

The fusing of pharmaceutical companies and corporate social responsibility is a symbiotic relationship. Pharmaceutical companies can use the good publicity in order to better their image around the world. The simple act of providing their product, medication, to people in need is a CSR initiative that is loved by all. According to Nussbaum (2009), some of the current challenges that are being faced by pharmaceutical companies are a) transparency, and creating dialogue b) incorporating ethics in their company‟s mission and vision c) looking at CSR as if it were a positive that must be utilized, instead of a negative experience that is dreaded d) extending CSR to stakeholders. It is foreshadowed that pharmaceutical companies will, in the future invest more in CSR departments and roles within their companies to ensure that the tasks are managed by specialists rather than HR managers (Nussbaum, 2009).

The fusing of pharmaceutical companies and corporate social responsibility is a symbiotic relationship. Pharmaceutical companies can use the good publicity in order to better their image around the world. The simple act of providing their product, medication, to people in need is a CSR initiative that is loved by all. According to Nussbaum (2009), some of the current challenges that are being faced by pharmaceutical companies are a) transparency, and creating dialogue b) incorporating ethics in their company‟s mission and vision c) looking at CSR as if it were a positive that must be utilized, instead of a negative experience that is dreaded d) extending CSR to stakeholders. It is foreshadowed that pharmaceutical companies will, in the future invest more in CSR departments and roles within their companies to ensure that the tasks are managed by specialists rather than HR managers (Nussbaum, 2009).

2.1 Internal CSR

2.1 Internal CSR

A recent paper by Goffee and Jones (2013), states that “Employees who feel welcome to express their authentic selves at work exhibit higher levels of organizational commitment, individual performance and propensity to help others”. The paper then goes on to discuss the 6 most important factors which can help a company in developing a great work environment.

A recent paper by Goffee and Jones (2013), states that “Employees who feel welcome to express their authentic selves at work exhibit higher levels of organizational commitment, individual performance and propensity to help others”. The paper then goes on to discuss the 6 most important factors which can help a company in developing a great work environment.

1 – Let people be themselves: Allowing employees to embrace their cultural diversity within the company brings with it a sense of comfort and freedom. (Goffee & Jones, 2013).

1 – Let people be themselves: Allowing employees to embrace their cultural diversity within the company brings with it a sense of comfort and freedom. (Goffee & Jones, 2013).

2- Transparency: It is always best that employees hear announcement, and company decisions from their senior leaders. More often than not, leaders tend to hold back information which leads to in office gossip and uncertainty (Goffee & Jones, 2013)

2- Transparency: It is always best that employees hear announcement, and company decisions from their senior leaders. More often than not, leaders tend to hold back information which leads to in office gossip and uncertainty (Goffee & Jones, 2013)

3- Minimize the company‟s turnover: It has become increasingly rare to find employees who have stayed within the same work place for long periods of time. This is because employees are quick to find better opportunities elsewhere with improved opportunity for growth or salary.. Employees within a company carry with them the experience and the time invested in them. Therefore it is recommended to reduce the turnover rate by fighting to keep current employees and hiring from within the company (Goffee & Jones, 2013).

3- Minimize the company‟s turnover: It has become increasingly rare to find employees who have stayed within the same work place for long periods of time. This is because employees are quick to find better opportunities elsewhere with improved opportunity for growth or salary.. Employees within a company carry with them the experience and the time invested in them. Therefore it is recommended to reduce the turnover rate by fighting to keep current employees and hiring from within the company (Goffee & Jones, 2013).

4- Allow employees to believe in the company‟s vision: It is important that a company‟s management showcases the significance of the product and its value within a society in order to receive the employee‟s loyalty (Goffee & Jones, 2013).

4- Allow employees to believe in the company‟s vision: It is important that a company‟s management showcases the significance of the product and its value within a society in order to receive the employee‟s loyalty (Goffee & Jones, 2013).

5- Understanding the importance of daily work: Some employees are often doing the same monotonous work day after day. It is difficult for them to be motivated. Therefore a regular review of employees work

5- Understanding the importance of daily work: Some employees are often doing the same monotonous work day after day. It is difficult for them to be motivated. Therefore a regular review of employees work

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targets will insure that the work being done is necessary and valuable. This will motivate employees and make them feel that they are an important part of the team (Goffee & Jones, 2013).

targets will insure that the work being done is necessary and valuable. This will motivate employees and make them feel that they are an important part of the team (Goffee & Jones, 2013).

6- Minimizing rules and structures: With many multinational companies there is a set hierarchy which cannot be altered. In order for companies to strive for excellence they must cut down on the structure of decision making. Multinational companies need to empower their regional counterparts to take decisions on a daily basis. This creates a dynamic work place with excitement (Goffee & Jones, 2013).

6- Minimizing rules and structures: With many multinational companies there is a set hierarchy which cannot be altered. In order for companies to strive for excellence they must cut down on the structure of decision making. Multinational companies need to empower their regional counterparts to take decisions on a daily basis. This creates a dynamic work place with excitement (Goffee & Jones, 2013).

The six above mentioned strategies are steps to which a company can lead its way into the future. It can empower and encourage its employees to feel loyalty towards the cause they are working for.

The six above mentioned strategies are steps to which a company can lead its way into the future. It can empower and encourage its employees to feel loyalty towards the cause they are working for.

Costas (2013) looks at two large consulting firms and the effect CSR initiatives had on the firms internally. The report claims that most CSR research seeks out information about the effects of CSR on the company‟s image and rarely do we find research looking at the importance of CSR for companies internally. Through a qualitative research, discussion groups and questionnaires, the researchers were able to determine, a) CSR initiatives within the companies are not something that all employees are interested in taking part in, b) the management of the companies provided very rigid programs for CSR initiatives. There needed to be more flexibility and less management involvement, c) it was noted that employees who took part in CSR initiative gained, along the way, some ethical values and a feeling of loyalty and responsibility towards their organization (Costas, 2013).

Costas (2013) looks at two large consulting firms and the effect CSR initiatives had on the firms internally. The report claims that most CSR research seeks out information about the effects of CSR on the company‟s image and rarely do we find research looking at the importance of CSR for companies internally. Through a qualitative research, discussion groups and questionnaires, the researchers were able to determine, a) CSR initiatives within the companies are not something that all employees are interested in taking part in, b) the management of the companies provided very rigid programs for CSR initiatives. There needed to be more flexibility and less management involvement, c) it was noted that employees who took part in CSR initiative gained, along the way, some ethical values and a feeling of loyalty and responsibility towards their organization (Costas, 2013).

Mountain (2011) looks at the views of ethics and the work place. The paper presents the idea that just as a person needs to be taught how to think and what the accepted social norms are, organizations can work towards sustaining an ethical environment. The paper develops a best case scenario for the outcome of any ethical dilemma within a work space. The type of management style is referred to as the „I‟m OK, You‟re OK‟ ruling (Wikens 2009, cited in Mountain 2011). This style of management incorporates a democratic method that encourages the participation of employees. Emphasized was the importance of organizations seeking feedback from their employees. This can lead the employees to feel that their opinion is valued. It is also the best way for organizations that are seeking to develop ethically to begin the process (Mountain, 2011).

Mountain (2011) looks at the views of ethics and the work place. The paper presents the idea that just as a person needs to be taught how to think and what the accepted social norms are, organizations can work towards sustaining an ethical environment. The paper develops a best case scenario for the outcome of any ethical dilemma within a work space. The type of management style is referred to as the „I‟m OK, You‟re OK‟ ruling (Wikens 2009, cited in Mountain 2011). This style of management incorporates a democratic method that encourages the participation of employees. Emphasized was the importance of organizations seeking feedback from their employees. This can lead the employees to feel that their opinion is valued. It is also the best way for organizations that are seeking to develop ethically to begin the process (Mountain, 2011).

Credo et al. (2010) conducted a study on the topic of perceived organizational ethics. They collected a field sample of 188 employees from several locations within the United States of America. Through the research it was observed that the perceived organizational ethics had a direct impact on employee‟s conduct. Therefore if a company has made it clear that they had a zero tolerance approach to unethical behaviour then the employees acted accordingly. Another factor mentioned within their findings is the importance of the clarity of the message presented to the employees. The message and consequences needed to be very clearly outlined in order to ensure that everyone understands the guidelines and repercussions (Credo et al., 2010).

Credo et al. (2010) conducted a study on the topic of perceived organizational ethics. They collected a field sample of 188 employees from several locations within the United States of America. Through the research it was observed that the perceived organizational ethics had a direct impact on employee‟s conduct. Therefore if a company has made it clear that they had a zero tolerance approach to unethical behaviour then the employees acted accordingly. Another factor mentioned within their findings is the importance of the clarity of the message presented to the employees. The message and consequences needed to be very clearly outlined in order to ensure that everyone understands the guidelines and repercussions (Credo et al., 2010).

Kaptein (2008) highlights the presence of unethical behaviour in the work place as a whole, and its effect on the stakeholders. Previous research on unethical behaviour in the work place focuses on cheating within an organization. This report however looks at unethical behaviour with financiers, customers, employees, suppliers and society. Through a literature review, extensive field research and quantitative analysis, it was proven that unethical behaviour is found throughout organizations and not just through certain practices. It also exposed the importance of looking at all stakeholders when attempting to measure the depth of unethical behaviour. The report concludes by stating that in organizations where unethical behaviour exists, unethical behaviour will increase. In other words, employees who enter an environment with unethical work values will begin to practice unethical values as well (Kaptein, 2008).

Kaptein (2008) highlights the presence of unethical behaviour in the work place as a whole, and its effect on the stakeholders. Previous research on unethical behaviour in the work place focuses on cheating within an organization. This report however looks at unethical behaviour with financiers, customers, employees, suppliers and society. Through a literature review, extensive field research and quantitative analysis, it was proven that unethical behaviour is found throughout organizations and not just through certain practices. It also exposed the importance of looking at all stakeholders when attempting to measure the depth of unethical behaviour. The report concludes by stating that in organizations where unethical behaviour exists, unethical behaviour will increase. In other words, employees who enter an environment with unethical work values will begin to practice unethical values as well (Kaptein, 2008).

The diversity found within a company plays a key role in the organizational culture. According to Patrick and Kumar (2012), discrimination is a form of intolerance to diversity. In both employment and the advancement of employees, the employee‟s background, religion, gender or age should not be a determining factor. It should be based solely on their ability to fully take on the responsibility. The report stressed the

The diversity found within a company plays a key role in the organizational culture. According to Patrick and Kumar (2012), discrimination is a form of intolerance to diversity. In both employment and the advancement of employees, the employee‟s background, religion, gender or age should not be a determining factor. It should be based solely on their ability to fully take on the responsibility. The report stressed the

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importance of learning about the cultural differences of clients or stakeholders that are in other regions of the world (Patrick & Kumar, 2012).

importance of learning about the cultural differences of clients or stakeholders that are in other regions of the world (Patrick & Kumar, 2012).

It was also noted that men and women tend to adapt to new cultures differently, especially when assigned a role in another region. Women show more interest in learning the culture and language of the countries they are assigned to. This then leads to the analysis that employees should be offered the opportunity to take part in such activities while on assignments on other countries (Patrick & Kumar, 2012).

It was also noted that men and women tend to adapt to new cultures differently, especially when assigned a role in another region. Women show more interest in learning the culture and language of the countries they are assigned to. This then leads to the analysis that employees should be offered the opportunity to take part in such activities while on assignments on other countries (Patrick & Kumar, 2012).

Avery (2011) utilised a literature review in order to determine how to achieve the greatest impact on creating a successful and diverse company environment. The research concluded that the presence of employees who oppose diversity will have a slight effect on the in-office moral. Similarly, having employees that support diversity will also have a minor effect on the office. The most important aspect when managing office diversity is found through the human resources department. Through their implementation of diversity acceptance and cultural understanding, employees will then adapt the same attitude. This then leads to the conclusion that strong management, and a human resources department with a clear and precise vision is the most effective way to support in office diversity (Avery, 2011).

Avery (2011) utilised a literature review in order to determine how to achieve the greatest impact on creating a successful and diverse company environment. The research concluded that the presence of employees who oppose diversity will have a slight effect on the in-office moral. Similarly, having employees that support diversity will also have a minor effect on the office. The most important aspect when managing office diversity is found through the human resources department. Through their implementation of diversity acceptance and cultural understanding, employees will then adapt the same attitude. This then leads to the conclusion that strong management, and a human resources department with a clear and precise vision is the most effective way to support in office diversity (Avery, 2011).

A report by Chrobot- Mason and Aramovich (2013) looks at the possible outcomes of creating a healthy and diverse work environment. The report collected quantitative data from 1,731 employees of the public sector. Through the surveys and analysis of the collected data it was witnessed that employees who feel that they are working in a fair and diverse environment felt a higher sense of security in their job. This leading to two possible outcomes, the first is a lower turnover rate for the companies. The second is the reduction of the loss of talent, and more secure and happy employees, which leads to a better profit margin (Chrobot-Mason & Aramovich, 2013).

A report by Chrobot- Mason and Aramovich (2013) looks at the possible outcomes of creating a healthy and diverse work environment. The report collected quantitative data from 1,731 employees of the public sector. Through the surveys and analysis of the collected data it was witnessed that employees who feel that they are working in a fair and diverse environment felt a higher sense of security in their job. This leading to two possible outcomes, the first is a lower turnover rate for the companies. The second is the reduction of the loss of talent, and more secure and happy employees, which leads to a better profit margin (Chrobot-Mason & Aramovich, 2013).

When assessing the above literature review it is clear that the organizational culture plays a key role in the development and the integration of CSR strategies internally. As documented above, ethical values and discrimination are found in MNEs around the world but there are three main factors related to developing a healthy and well managed internal CSR strategy.

When assessing the above literature review it is clear that the organizational culture plays a key role in the development and the integration of CSR strategies internally. As documented above, ethical values and discrimination are found in MNEs around the world but there are three main factors related to developing a healthy and well managed internal CSR strategy.

a) HR Department: It is important for the HR department to communicate with employees a zero tolerance policy when it comes to unethical behaviour and discrimination. A strong leadership is key to managing the situation

a) HR Department: It is important for the HR department to communicate with employees a zero tolerance policy when it comes to unethical behaviour and discrimination. A strong leadership is key to managing the situation

b) CSR Externally: It was identified that employees who take part in CSR projects externally, that have been set up by their company, tend to grow a greater sense of loyalty for the company. This is then directly related to a higher sense or practice of ethics and values.

b) CSR Externally: It was identified that employees who take part in CSR projects externally, that have been set up by their company, tend to grow a greater sense of loyalty for the company. This is then directly related to a higher sense or practice of ethics and values.

c) Employees affected: Employees working in an atmosphere where there is a high level of ethical values and diversity tend to feel a greater sense of comfort within their job. These are the employees who are less likely to leave the company and perform at a better rate.

c) Employees affected: Employees working in an atmosphere where there is a high level of ethical values and diversity tend to feel a greater sense of comfort within their job. These are the employees who are less likely to leave the company and perform at a better rate.

2.2 Localizing External CSR Strategies

2.2 Localizing External CSR Strategies

When considering CSR strategies, multinational companies face the problem of identifying CSR needs of countries in which they have divisions. Popoli (2011) looked at the two different approaches applied by multinational companies with regards to CSR strategies a) implementing one united CSR strategy across all the countries in which the MNEs have a presence b) allowing local branches of the company to customise their CSR strategy to better profit the needs of the local communities. Through a literature review it was concluded, that although a customised CSR strategy would benefit local markets better, it sometimes causes confusion over the brand image of certain companies. Therefore a united, one CSR strategy-fits all method would allow for one strong message to penetrate all around the world (Popoli, 2011).

When considering CSR strategies, multinational companies face the problem of identifying CSR needs of countries in which they have divisions. Popoli (2011) looked at the two different approaches applied by multinational companies with regards to CSR strategies a) implementing one united CSR strategy across all the countries in which the MNEs have a presence b) allowing local branches of the company to customise their CSR strategy to better profit the needs of the local communities. Through a literature review it was concluded, that although a customised CSR strategy would benefit local markets better, it sometimes causes confusion over the brand image of certain companies. Therefore a united, one CSR strategy-fits all method would allow for one strong message to penetrate all around the world (Popoli, 2011).

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Shaw (2007) looks at the CSR initiatives of multinational companies at a local level. 60 of the world‟s largest companies are examined in order to determine their CSR strategies and the depth at which they, themselves gain from them. In many cases, companies like to label some of their activities as CSR in order to receive positive publicity. But in reality, these companies are boasting about tasks which are a legal obligation for them. Other strategies need to be implemented to motivate companies to do more. The paper suggests that a competitive scheme could be looked at, where certain neighbourhoods are assigned to different CSR initiatives by companies, and the neighbourhood which benefits the most received an award. This type of competitive scheme can motivate companies to do more in order to gain extra media coverage (Shaw, 2007).

Shaw (2007) looks at the CSR initiatives of multinational companies at a local level. 60 of the world‟s largest companies are examined in order to determine their CSR strategies and the depth at which they, themselves gain from them. In many cases, companies like to label some of their activities as CSR in order to receive positive publicity. But in reality, these companies are boasting about tasks which are a legal obligation for them. Other strategies need to be implemented to motivate companies to do more. The paper suggests that a competitive scheme could be looked at, where certain neighbourhoods are assigned to different CSR initiatives by companies, and the neighbourhood which benefits the most received an award. This type of competitive scheme can motivate companies to do more in order to gain extra media coverage (Shaw, 2007).

Reimann et al. (2012) looks at the impact multinational enterprises are having on some of the world‟s emerging markets where they are present. It was noted that the majority of CSR activity happening within these markets is a direct result of the initiative of local mid-level employees. These employees can see the needs of the local community and push to help address these issues through their company‟s CSR programs. MNEs who choose to support such projects gain the confidence and loyalty of their employees. In addition to this, they gain the support of local governments (Reimann, 2012).

Reimann et al. (2012) looks at the impact multinational enterprises are having on some of the world‟s emerging markets where they are present. It was noted that the majority of CSR activity happening within these markets is a direct result of the initiative of local mid-level employees. These employees can see the needs of the local community and push to help address these issues through their company‟s CSR programs. MNEs who choose to support such projects gain the confidence and loyalty of their employees. In addition to this, they gain the support of local governments (Reimann, 2012).

When considering CSR in MNE‟s there is a constant struggle between the international strategy of the firms and the expectations of their local stakeholders. Husted and Allen (2006) adopted a survey approach to determine the CSR strategies implemented in MNEs based in Mexico. It was established that although the MNES have an international CSR strategy, the majority give in to local needs. They feel obliged change their strategy in order to benefit the local communities and stakeholders (Husted & Allen, 2006).

When considering CSR in MNE‟s there is a constant struggle between the international strategy of the firms and the expectations of their local stakeholders. Husted and Allen (2006) adopted a survey approach to determine the CSR strategies implemented in MNEs based in Mexico. It was established that although the MNES have an international CSR strategy, the majority give in to local needs. They feel obliged change their strategy in order to benefit the local communities and stakeholders (Husted & Allen, 2006).

Criticism of MNEs‟ CSR initiatives has come to light after many corporations have taken to Africa to implement short lived and unsustainable CSR initiative in the area. Idemudia (2011) looks at the practices of MNEs‟ in Africa and determines that their biggest shortcoming is their inability to adapt their CSR initiatives into long term, sustainable and mature projects that can truly aid communities.

Criticism of MNEs‟ CSR initiatives has come to light after many corporations have taken to Africa to implement short lived and unsustainable CSR initiative in the area. Idemudia (2011) looks at the practices of MNEs‟ in Africa and determines that their biggest shortcoming is their inability to adapt their CSR initiatives into long term, sustainable and mature projects that can truly aid communities.

Multinational Enterprises include CSR as part of their global strategy as a means of reaching out to local communities. In order to have a cohesive CSR strategy, MNEs apply the same strategies to different counties and communities around the world. Although this approach saves time, and allows easy management of the CSR projects, it also has its down falls. As discussed in the literature review, companies who have a one solution-fits-all approach are not connecting with their communities. MNEs have failed many African communities with their inability to reach out and help determine a CSR initiative that will truly aid their situation (Idemudia, 2011).

Multinational Enterprises include CSR as part of their global strategy as a means of reaching out to local communities. In order to have a cohesive CSR strategy, MNEs apply the same strategies to different counties and communities around the world. Although this approach saves time, and allows easy management of the CSR projects, it also has its down falls. As discussed in the literature review, companies who have a one solution-fits-all approach are not connecting with their communities. MNEs have failed many African communities with their inability to reach out and help determine a CSR initiative that will truly aid their situation (Idemudia, 2011).

Communities in the South of Bolivia are not facing the same obstacles as the Syrian refugee camps found in Jordan. That is why, MNEs need to empower their local leaders to help in defining the plight which their community needs help with. Truly reaching out to a community, and helping it develop with a) give great significance to the project, b) allow employees involved to feel a sense of satisfaction c) develop a relationship with local communities.

Communities in the South of Bolivia are not facing the same obstacles as the Syrian refugee camps found in Jordan. That is why, MNEs need to empower their local leaders to help in defining the plight which their community needs help with. Truly reaching out to a community, and helping it develop with a) give great significance to the project, b) allow employees involved to feel a sense of satisfaction c) develop a relationship with local communities.

3. Methodology

3. Methodology

For the purpose of this paper, a miltination pharmaceutical company was selected as a case study to analyse the extenxt to which CSR was effectively implemented within the various sectors. An interview was then conducted with a former senior management employee to understand the extent to which the CSR was practiced within the organisation. Based on the case study and interview, and supported by extensive literature reviews, analysis of the data and recommendations for improvement are suggested.

For the purpose of this paper, a miltination pharmaceutical company was selected as a case study to analyse the extenxt to which CSR was effectively implemented within the various sectors. An interview was then conducted with a former senior management employee to understand the extent to which the CSR was practiced within the organisation. Based on the case study and interview, and supported by extensive literature reviews, analysis of the data and recommendations for improvement are suggested.

3.1 Case Study: Multinational Pharmaceutical Company

3.1 Case Study: Multinational Pharmaceutical Company

The pharmaceutical and life sciences company selected was founded in 1668. A global entity, it operates across 66 countries with a workforce of approximately 76000 people. The organization‟s various

The pharmaceutical and life sciences company selected was founded in 1668. A global entity, it operates across 66 countries with a workforce of approximately 76000 people. The organization‟s various

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activities include pharmaceuticals, life sciences equipment, and specialty chemicals. The pharmaceutical company is organized into four divisions: Anonymous Serono, Consumer Health, Performance Materials, Anonymous Millipore (Merck, 2014). The company‟s corporate responsibility is mainly focused in three areas: people, products and the environment. By creating innovative products to improve life, the company aims to achieve scientific excellence and conduct their operations with integrity through a diverse teams working in collaborations with local governments and communities (CR report, 2013).

activities include pharmaceuticals, life sciences equipment, and specialty chemicals. The pharmaceutical company is organized into four divisions: Anonymous Serono, Consumer Health, Performance Materials, Anonymous Millipore (Merck, 2014). The company‟s corporate responsibility is mainly focused in three areas: people, products and the environment. By creating innovative products to improve life, the company aims to achieve scientific excellence and conduct their operations with integrity through a diverse teams working in collaborations with local governments and communities (CR report, 2013).

Based on the Global Reporting Initiative (GRI) reporting framework, the company regularly does materiality assessments to assess the organization‟s economic, environmental and social impacts and to cater to stakeholder requirements and expectations. The reporting is categorized into four main non-financial realms. This is the basis for the company‟s KPI analysis (Merck, 2014).

Based on the Global Reporting Initiative (GRI) reporting framework, the company regularly does materiality assessments to assess the organization‟s economic, environmental and social impacts and to cater to stakeholder requirements and expectations. The reporting is categorized into four main non-financial realms. This is the basis for the company‟s KPI analysis (Merck, 2014).

3.1.1 Access to health

3.1.1 Access to health

Improving accessibility to medicines, vaccines and quality healthcare for the global population is crucial in preventing disease and improving the well-being of people. It is also important in improving the future sustainability of the corporate entity. Barriers such as lack of trained healthcare professionals, infrastructure and water resources can make it challenging to access basic healthcare, thus making it essential to collaborate closely with government entities, local NGO‟s and local healthcare facilities and providers (CR report, 2013) .

Improving accessibility to medicines, vaccines and quality healthcare for the global population is crucial in preventing disease and improving the well-being of people. It is also important in improving the future sustainability of the corporate entity. Barriers such as lack of trained healthcare professionals, infrastructure and water resources can make it challenging to access basic healthcare, thus making it essential to collaborate closely with government entities, local NGO‟s and local healthcare facilities and providers (CR report, 2013) .

3.1.2 Environmental sustainability

3.1.2 Environmental sustainability

Understanding the impact of human activity on the planet‟s ecosystems, the company understands its corporate responsibility to achieve environmental sustainability by optimizing their operation systems, designing eco-efficient products and efficient use of resources. Water conservation, carbon emissions and waste management are key aspects in achieving the environmental goals of the organization.

Understanding the impact of human activity on the planet‟s ecosystems, the company understands its corporate responsibility to achieve environmental sustainability by optimizing their operation systems, designing eco-efficient products and efficient use of resources. Water conservation, carbon emissions and waste management are key aspects in achieving the environmental goals of the organization.

3.1.3 Employees

3.1.3 Employees

Values of diversity and positive and inclusive organizational work culture are crucial for the company to attract and retain talented and motivated professionals. The Chief Diversity Officer is globally in charge of strategically managing diversity. The company has 57 nationalities with 61% of the management positions headed by non- Germans. In order to attain intercultural competencies, the employees participate in training courses and are part of culturally diverse teams. Professional workshops are conducted to train the employees on market developments as well as the organizations code of conduct. This ensures that all employees have a clear understanding of the policies and values of the organization. The „Fit for 2018‟ program sets out clear goals and objective for the employees thereby making it a performance based and highly competitive culture. In order to create a balance in the demographics within the company, the company aims to increase the number of women in management positions to 25 – 30% by 2016, by systematically promoting women (CR Report, 2013).

Values of diversity and positive and inclusive organizational work culture are crucial for the company to attract and retain talented and motivated professionals. The Chief Diversity Officer is globally in charge of strategically managing diversity. The company has 57 nationalities with 61% of the management positions headed by non- Germans. In order to attain intercultural competencies, the employees participate in training courses and are part of culturally diverse teams. Professional workshops are conducted to train the employees on market developments as well as the organizations code of conduct. This ensures that all employees have a clear understanding of the policies and values of the organization. The „Fit for 2018‟ program sets out clear goals and objective for the employees thereby making it a performance based and highly competitive culture. In order to create a balance in the demographics within the company, the company aims to increase the number of women in management positions to 25 – 30% by 2016, by systematically promoting women (CR Report, 2013).

3.1.4 Ethics

3.1.4 Ethics

Ethics and compliance is a crucial aspect of the organization. Through the Global Compliance Training Series (GCTS), the employees attend fundamental courses on the company‟s Code of Conduct and the basic policies and legislative regulations pertaining to the business. The basic elements of an effective compliance program form the foundations of the global compliance program (Merck, 2014).

Ethics and compliance is a crucial aspect of the organization. Through the Global Compliance Training Series (GCTS), the employees attend fundamental courses on the company‟s Code of Conduct and the basic policies and legislative regulations pertaining to the business. The basic elements of an effective compliance program form the foundations of the global compliance program (Merck, 2014).

In order to achieve corporate transparency the organization often goes beyond the mandatory disclosure requirements, towards voluntary disclosure of information to allow better transparency for the stakeholders. The Office of Ethics ensures that „corporate conduct, responsibility and accountability‟ are maintained in all the company‟s practices (Merck, 2014). A violation of the code of conduct should be reported and could lead to severe disciplinary action and, depending on the gravity of the violation, even dismissal (Merck, 2014).

In order to achieve corporate transparency the organization often goes beyond the mandatory disclosure requirements, towards voluntary disclosure of information to allow better transparency for the stakeholders. The Office of Ethics ensures that „corporate conduct, responsibility and accountability‟ are maintained in all the company‟s practices (Merck, 2014). A violation of the code of conduct should be reported and could lead to severe disciplinary action and, depending on the gravity of the violation, even dismissal (Merck, 2014).

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3.2 Interview

3.2 Interview

An interview was conducted with Mr. Tamer Elewa, who was the Head of Internal Communications, HR and Administration at the multinational pharmaceutical company, and in charge of Africa, Middle East, East Europe and Near East. According to Mr. Elewa, CSR was initially not unified under any particular department. Communications, Governmental Affairs and Human Resources individually engaged in CSR activities pertaining to their departments. Only recently, as the CSR activities became significant, did the company create a Corporate Responsibility department. The company also felt that such a move would positively influence the stakeholders‟ perception of the organization. According to Mr. Elewa, there isn‟t a global consensus on the meaning of CSR and its activities. Each company adapts the concept based on how it relates to them and what they can do. Often this means that the CSR activities are limited to the core competencies of the company, but it would be better if these activities could reach out to the entire community rather than limit it to specific members of the society.

An interview was conducted with Mr. Tamer Elewa, who was the Head of Internal Communications, HR and Administration at the multinational pharmaceutical company, and in charge of Africa, Middle East, East Europe and Near East. According to Mr. Elewa, CSR was initially not unified under any particular department. Communications, Governmental Affairs and Human Resources individually engaged in CSR activities pertaining to their departments. Only recently, as the CSR activities became significant, did the company create a Corporate Responsibility department. The company also felt that such a move would positively influence the stakeholders‟ perception of the organization. According to Mr. Elewa, there isn‟t a global consensus on the meaning of CSR and its activities. Each company adapts the concept based on how it relates to them and what they can do. Often this means that the CSR activities are limited to the core competencies of the company, but it would be better if these activities could reach out to the entire community rather than limit it to specific members of the society.

The interviewee said it is essential to consider CSR as individual elements of „corporate‟, „social‟ and „responsibility‟. The backbone of any „corporation‟ is the human capital: its people. When considering the „social‟ aspect, it is crucial to hire people who believe in the community and who inherently have strong values such as responsibility, ethics, honesty, teamwork, etc. So essentially, according to Mr. Elewa, CSR is about having people who have the value of responsibility and are able to exercise this. This ability is bi-fold. First, the employee‟s individual ability and belief in contributing to the society, and secondly, the ability of the organization‟s senior management to allow (with discretion) employees the time and support to participate in CSR activities.

The interviewee said it is essential to consider CSR as individual elements of „corporate‟, „social‟ and „responsibility‟. The backbone of any „corporation‟ is the human capital: its people. When considering the „social‟ aspect, it is crucial to hire people who believe in the community and who inherently have strong values such as responsibility, ethics, honesty, teamwork, etc. So essentially, according to Mr. Elewa, CSR is about having people who have the value of responsibility and are able to exercise this. This ability is bi-fold. First, the employee‟s individual ability and belief in contributing to the society, and secondly, the ability of the organization‟s senior management to allow (with discretion) employees the time and support to participate in CSR activities.

However, this value-based definition of CSR did not match with the corporate definition, which, being a pharmaceutical company, was limited to providing free medication to underdeveloped countries. Regionally, Mr. Elewa said that he and his team conducted educational CSR activities such as language training, personal development, leadership skills, project management, etc. for students, senior management staff, government officials, law enforcement officials, and so forth, so as to incorporate everyone within the community and increase the skills of the society as a whole. The activities were segmented into various categories such as geographical, demographic and psychological so as to reach all the sectors in the community. They partnered with local charities and NGO‟s, and ensured that the company name was not highlighted, thereby preventing the use of such activities as a marketing tool and also protecting the privacy of the social participants. Although the global stakeholders of the company mainly comprised of governments, hospitals and patients, for this particular team, their stakeholders encompassed every person in the society. For them, the CSR activities were deemed effective if the team members felt that they had a positive contribution and added value to the society. Since the individual members already had strong values of responsibility, social commitment and teamwork, the CSR activities conducted were very successful.

However, this value-based definition of CSR did not match with the corporate definition, which, being a pharmaceutical company, was limited to providing free medication to underdeveloped countries. Regionally, Mr. Elewa said that he and his team conducted educational CSR activities such as language training, personal development, leadership skills, project management, etc. for students, senior management staff, government officials, law enforcement officials, and so forth, so as to incorporate everyone within the community and increase the skills of the society as a whole. The activities were segmented into various categories such as geographical, demographic and psychological so as to reach all the sectors in the community. They partnered with local charities and NGO‟s, and ensured that the company name was not highlighted, thereby preventing the use of such activities as a marketing tool and also protecting the privacy of the social participants. Although the global stakeholders of the company mainly comprised of governments, hospitals and patients, for this particular team, their stakeholders encompassed every person in the society. For them, the CSR activities were deemed effective if the team members felt that they had a positive contribution and added value to the society. Since the individual members already had strong values of responsibility, social commitment and teamwork, the CSR activities conducted were very successful.

Although these activities were conducted regionally due to the personal interest and social values of the regional senior management, there wasn‟t a global CSR strategy that promoted such social activities. The regional activities could not be evaluated or measured as there was no KPI for CSR activities. Subsequently, the global management did not allow flexibility or support for the regional senior management to exercise such activities. The funding for such activities would have to be individually approved as a CSR budget did not exist. This gap between the global and the regional policies arise mainly due to the values of the individual people, especially the senior decision makers.

Although these activities were conducted regionally due to the personal interest and social values of the regional senior management, there wasn‟t a global CSR strategy that promoted such social activities. The regional activities could not be evaluated or measured as there was no KPI for CSR activities. Subsequently, the global management did not allow flexibility or support for the regional senior management to exercise such activities. The funding for such activities would have to be individually approved as a CSR budget did not exist. This gap between the global and the regional policies arise mainly due to the values of the individual people, especially the senior decision makers.

A big part of social responsibility is employee fairness and diversity. Internal organizational culture practiced excellent CSR if the senior management had strong, non- compromising, values and principles. If they had zero tolerance towards discrimination, for instance, this would cascade down through the organization and employees would strictly adhere to the values. On the contrary, if the top management did not take such issues seriously, then there would be unethical behavior in the workplace as the employees would realize that the code of values are not strictly implemented within the organization. According to our interviewee, this in turn would make it difficult to achieve an ethical, diverse and positive organizational culture. He stresses that it

A big part of social responsibility is employee fairness and diversity. Internal organizational culture practiced excellent CSR if the senior management had strong, non- compromising, values and principles. If they had zero tolerance towards discrimination, for instance, this would cascade down through the organization and employees would strictly adhere to the values. On the contrary, if the top management did not take such issues seriously, then there would be unethical behavior in the workplace as the employees would realize that the code of values are not strictly implemented within the organization. According to our interviewee, this in turn would make it difficult to achieve an ethical, diverse and positive organizational culture. He stresses that it

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should be the primary responsibility of any organization to, first and foremost, protect the rights and well-being of their employees. Then, if resources allow, the organization can exercise external CSR strategies. Although there is a legal commitment of employers towards their employees, often the fair treatment of employees is not practiced and is one of the biggest challenges of achieving CSR. A negative work environment, adds Mr. Elewa, is one of the main reason for employee turnover. If the employees are well trained and enforce strong values such as honesty, integrity and equality, then they will actively practice social responsibility, even without external influences or funding.

should be the primary responsibility of any organization to, first and foremost, protect the rights and well-being of their employees. Then, if resources allow, the organization can exercise external CSR strategies. Although there is a legal commitment of employers towards their employees, often the fair treatment of employees is not practiced and is one of the biggest challenges of achieving CSR. A negative work environment, adds Mr. Elewa, is one of the main reason for employee turnover. If the employees are well trained and enforce strong values such as honesty, integrity and equality, then they will actively practice social responsibility, even without external influences or funding.

4. Analysis and discussion

4. Analysis and discussion

The strategies of the companies are referred to within the context or „Corporate Responsibility‟ instead of „Corporate Social Responsibility‟ thereby giving the impression that the social aspect is not as significant as the overall corporate entity. Indeed, this could also explain why, at a corporate level, there is a limited development of social outreach initiatives in various regions, such as the Middle East, while the predominant focus is on underdeveloped regions such as Africa. Although the company website and their reports mention that employees are encouraged to volunteer within their local communities, the interview with Mr. Elewa has proven otherwise.

The strategies of the companies are referred to within the context or „Corporate Responsibility‟ instead of „Corporate Social Responsibility‟ thereby giving the impression that the social aspect is not as significant as the overall corporate entity. Indeed, this could also explain why, at a corporate level, there is a limited development of social outreach initiatives in various regions, such as the Middle East, while the predominant focus is on underdeveloped regions such as Africa. Although the company website and their reports mention that employees are encouraged to volunteer within their local communities, the interview with Mr. Elewa has proven otherwise.

It is also clear that CSR initiatives cannot be practically measured within the company‟s indices, since it does not form a KPI. Thus, since it is not emphasized at the corporate level, the concept does not materialize effectively through the subsequent management levels.

It is also clear that CSR initiatives cannot be practically measured within the company‟s indices, since it does not form a KPI. Thus, since it is not emphasized at the corporate level, the concept does not materialize effectively through the subsequent management levels.

The interview shows that regional management has limited flexibility in implementing CSR initiatives at their discretion. There is a big divide between the corporate agenda and the ability to regionally implement CSR initiatives.

The interview shows that regional management has limited flexibility in implementing CSR initiatives at their discretion. There is a big divide between the corporate agenda and the ability to regionally implement CSR initiatives.

Most of the strategies of the organization are related to external CR and only a few are directed towards internal CR. Since employees are a critical part of the corporation‟s ability to achieve long term sustainability, this would have to be reconfigured. Creating a highly competitive environment, could lead to a lot of internal stress and possibly a negative work environment.

Most of the strategies of the organization are related to external CR and only a few are directed towards internal CR. Since employees are a critical part of the corporation‟s ability to achieve long term sustainability, this would have to be reconfigured. Creating a highly competitive environment, could lead to a lot of internal stress and possibly a negative work environment.

The interview also highlighted that there wasn‟t a zero-tolerance attitude towards core values such as equality and integrity. This is detrimental to a global organization that has multi- cultural teams. Unless there is a strict implementation of values, internal CSR is essentially nonexistent, since these values form the code of conduct for the organization.

The interview also highlighted that there wasn‟t a zero-tolerance attitude towards core values such as equality and integrity. This is detrimental to a global organization that has multi- cultural teams. Unless there is a strict implementation of values, internal CSR is essentially nonexistent, since these values form the code of conduct for the organization.

5. Conclusion and recommendations

5. Conclusion and recommendations

Corporate responsibility should start with responsible individuals working within an organization to create a positive impact on their immediate social fabric. Essentially, the focus is on responsibility. Involvement in CSR activities would add value to the employees and they were likely to feel more connected to the company‟s ethos. This in turn would also reduce employee turnover, which is currently at an approximate rate of 8%, and allow the company to achieve sustainable growth in the future. Evaluating the existing practices and incorporating CSR within the fundamental structure of the company will enable its practical implementation. Integrating CSR within the vision of the company, rather than considering it as an additive component, would attract employees who share and believe in the same, thereby enabling a better outcome. Integrating CSR as a KPI would give it greater credibility as it would provide a means of assessment. Through the company‟s website and the interview, it is clear that many of the initiatives such as free medication and employee training sessions etc. have been practiced within the company for many years prior to the idea of CSR. However, when the concept emerged, in order to improve the company image for the stakeholders. All such activities were simply labeled as CR, without expanding the potential of the organization in practicing social responsibility. Most CSR strategies listed by companies are often legal requirements. For instance, even in the case of the company‟s, human rights, reducing carbon footprint, employee rights, are often a result of

Corporate responsibility should start with responsible individuals working within an organization to create a positive impact on their immediate social fabric. Essentially, the focus is on responsibility. Involvement in CSR activities would add value to the employees and they were likely to feel more connected to the company‟s ethos. This in turn would also reduce employee turnover, which is currently at an approximate rate of 8%, and allow the company to achieve sustainable growth in the future. Evaluating the existing practices and incorporating CSR within the fundamental structure of the company will enable its practical implementation. Integrating CSR within the vision of the company, rather than considering it as an additive component, would attract employees who share and believe in the same, thereby enabling a better outcome. Integrating CSR as a KPI would give it greater credibility as it would provide a means of assessment. Through the company‟s website and the interview, it is clear that many of the initiatives such as free medication and employee training sessions etc. have been practiced within the company for many years prior to the idea of CSR. However, when the concept emerged, in order to improve the company image for the stakeholders. All such activities were simply labeled as CR, without expanding the potential of the organization in practicing social responsibility. Most CSR strategies listed by companies are often legal requirements. For instance, even in the case of the company‟s, human rights, reducing carbon footprint, employee rights, are often a result of

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local or government requirements and restrictions, and cannot solely be considered as CSR strategies or activities.

local or government requirements and restrictions, and cannot solely be considered as CSR strategies or activities.

Pharmaceutical companies are often criticized for their lack of involvement in developing regions, the company has most of their outreach programs in such regions, but in doing so, often ignore the regional contexts of their corporate offices. The Middle East sector, for instance, does not have a designated budget for CSR activities. Although it was practiced due to the personal interest of the regional management, once the management changed, these regional practices were also abandoned, since there was no support from the corporate level. As mentioned before, empowering regional counterparts to make decisions will allow a dynamic work environment, and allow the successful implementation of regional CSR practices as they will not be limited by rigid rules and structures. Thus, having senior staff members who believe in CSR and who have the ability to implement such practices are essential in achieving a CSR oriented organization. Customized regional involvement will add value within the community and consequently, the corporate entity as a whole, since the community would regard the organization as a socially responsible entity.

Pharmaceutical companies are often criticized for their lack of involvement in developing regions, the company has most of their outreach programs in such regions, but in doing so, often ignore the regional contexts of their corporate offices. The Middle East sector, for instance, does not have a designated budget for CSR activities. Although it was practiced due to the personal interest of the regional management, once the management changed, these regional practices were also abandoned, since there was no support from the corporate level. As mentioned before, empowering regional counterparts to make decisions will allow a dynamic work environment, and allow the successful implementation of regional CSR practices as they will not be limited by rigid rules and structures. Thus, having senior staff members who believe in CSR and who have the ability to implement such practices are essential in achieving a CSR oriented organization. Customized regional involvement will add value within the community and consequently, the corporate entity as a whole, since the community would regard the organization as a socially responsible entity.

Expanding CSR activities beyond the core competencies of the company can achieve localized solutions. For instance, the corporate strategy of free medication and access to health, primarily targets the underdeveloped countries. It does not help to contribute to the Middle East. However, since the regional management targeted all the member of the society regardless of their social or demographic standing, CSR could be practiced successfully in the region.

Expanding CSR activities beyond the core competencies of the company can achieve localized solutions. For instance, the corporate strategy of free medication and access to health, primarily targets the underdeveloped countries. It does not help to contribute to the Middle East. However, since the regional management targeted all the member of the society regardless of their social or demographic standing, CSR could be practiced successfully in the region.

A zero tolerance approach towards unethical behavior is essential in promoting a diverse and ethical work environment. The interview highlights the lack of action from the concerned authorities which then encouraged unethical behavior within the workplace. Setting values and implementing them strictly is crucial for creating a diverse and fair organizational culture. Although it is clearly listed within the company‟s code of conduct, a lack of action on discrimination does not help in attracting and maintaining a diverse cultural team, which is crucial for a global organization of this scale. Internal CSR is crucial in reducing employee turnover and creating sustainable working environments. Values of honesty, responsibility and equality should be upheld in the highest regard through the application of the HR department in order to protect employee rights and promote a diverse and fair organizational culture.

A zero tolerance approach towards unethical behavior is essential in promoting a diverse and ethical work environment. The interview highlights the lack of action from the concerned authorities which then encouraged unethical behavior within the workplace. Setting values and implementing them strictly is crucial for creating a diverse and fair organizational culture. Although it is clearly listed within the company‟s code of conduct, a lack of action on discrimination does not help in attracting and maintaining a diverse cultural team, which is crucial for a global organization of this scale. Internal CSR is crucial in reducing employee turnover and creating sustainable working environments. Values of honesty, responsibility and equality should be upheld in the highest regard through the application of the HR department in order to protect employee rights and promote a diverse and fair organizational culture.

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Author’s Profile

Author’s Profile Isra Abu Zayed is currently completing her Master‟s degree in Sustainable Design for the Build Environment at the British University in Dubai. Her passion for sustainability has empowered her to learn more and dig deeper in the field of sustainability. After collaborating with a Sustainable Square, a consultancy firm in the UAE, she proceeded to acquire further knowledge on the topic by completed a Corporate Social Responsibility module at the British University in Dubai. Through the guidance and support of the module instructors she was able to develop credible research on the topic. She has previously published papers on sustainable design practices and indoor air quality.

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Isra Abu Zayed is currently completing her Master‟s degree in Sustainable Design for the Build Environment at the British University in Dubai. Her passion for sustainability has empowered her to learn more and dig deeper in the field of sustainability. After collaborating with a Sustainable Square, a consultancy firm in the UAE, she proceeded to acquire further knowledge on the topic by completed a Corporate Social Responsibility module at the British University in Dubai. Through the guidance and support of the module instructors she was able to develop credible research on the topic. She has previously published papers on sustainable design practices and indoor air quality.

132

Exploring & Understanding the Responsiveness of Employees towards Corporate Social Responsibility: A Study of Indian Hotel Industry

Exploring & Understanding the Responsiveness of Employees towards Corporate Social Responsibility: A Study of Indian Hotel Industry

Savita Sharma1 , Pratika Mishra2 and Jitender Bhandari3

Savita Sharma1 , Pratika Mishra2 and Jitender Bhandari3

Assistant Professor, Ansal University, [email protected] Assistant Professor, Ansal University, [email protected] 3 Jitender Bhandari, Associate Professor, Ansal University, [email protected]

Assistant Professor, Ansal University, [email protected] Assistant Professor, Ansal University, [email protected] 3 Jitender Bhandari, Associate Professor, Ansal University, [email protected]

1

1

2

2

Abstract

Abstract

Corporate Social responsibility (CSR) has got a roar for companies, academicians and researchers because sustainable business has become the most concerned and debatable topic amongst the latest issues. As a consequence, many companies have started showing their interest for CSR involvement through various ways. Companies are positive towards adapting CSR policies because they are also aware that in today’s scenario ensuing CSR practices could give them a competitive edge at the global foot. Considering the hotel industry’s features, it becomes necessary to fulfill the upcoming requirements to achieve competitive advantage over sustainability. Companies can now foresee that CSR will become one of the important pillars in coming days, therefore, they are finding out the ways and means to incorporate the components of CSR into strategies to reach up to the expectations of stakeholders, community and the government. Thus, this paper has tried to observe the responsiveness of employees towards CSR practices so that they can be taken in confidence to implement various activities in the organization through them.

Corporate Social responsibility (CSR) has got a roar for companies, academicians and researchers because sustainable business has become the most concerned and debatable topic amongst the latest issues. As a consequence, many companies have started showing their interest for CSR involvement through various ways. Companies are positive towards adapting CSR policies because they are also aware that in today’s scenario ensuing CSR practices could give them a competitive edge at the global foot. Considering the hotel industry’s features, it becomes necessary to fulfill the upcoming requirements to achieve competitive advantage over sustainability. Companies can now foresee that CSR will become one of the important pillars in coming days, therefore, they are finding out the ways and means to incorporate the components of CSR into strategies to reach up to the expectations of stakeholders, community and the government. Thus, this paper has tried to observe the responsiveness of employees towards CSR practices so that they can be taken in confidence to implement various activities in the organization through them.

Keywords: CSR, Employee Motivation, Hotel Industry, Stakeholders

Keywords: CSR, Employee Motivation, Hotel Industry, Stakeholders

1.

Indian Hotel Industry and CSR Imperatives

1.

Indian Hotel Industry and CSR Imperatives

Hotel industry plays very important role in any country because it fulfills the basic need of the population. Hotel industry can be described as an organization which fulfills the humans‟ most elementary requirements against payment like accommodation, food and related services such gym, spa, etc. when they are out from home. There are various types of hotels categorized in the world on the basis of their location, target market, size & number of properties, level of service, length of stay, and theme based hotels. Standard and type of services and facilities provided to guests differ from property to property based on the tariff where five star chain hotels are considered to be one of the most luxurious service provider properties.

Hotel industry plays very important role in any country because it fulfills the basic need of the population. Hotel industry can be described as an organization which fulfills the humans‟ most elementary requirements against payment like accommodation, food and related services such gym, spa, etc. when they are out from home. There are various types of hotels categorized in the world on the basis of their location, target market, size & number of properties, level of service, length of stay, and theme based hotels. Standard and type of services and facilities provided to guests differ from property to property based on the tariff where five star chain hotels are considered to be one of the most luxurious service provider properties.

Table 1: Classification of Hotels based on Different Criteria

Table 1: Classification of Hotels based on Different Criteria

Location

Target market

 City centre hotels  Suburban hotels  Motels  Airport hotels  Resort hotels  Forest hotels  Floatels  Boatels  Rotels

         

Commercial hotels Conventional hotels Resort hotels Suite hotels B&B hotels Extended stay hotels Casino hotels Timeshares Condominiums Service apartments

Size & number of properties  Small hotels  Medium sized hotels  Large hotels  Very large hotels  Mega hotels  Chain hotels

Source: Hotel housekeeping (Operations & Raghubalan&SmriteeRaghubalan, Oxford University Press

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Level of service

Length of stay

Theme based

Location

Target market

 Economy/budg et hotels  Mid-scale hotels  Luxury hotels

 Transient hotels  Residential hotels  Semiresidential hotels

 Heritage hotels  Ecotels  Boutique hotels  Spas

 City centre hotels  Suburban hotels  Motels  Airport hotels  Resort hotels  Forest hotels  Floatels  Boatels  Rotels

         

Management),

Second

Edition,

G.

Commercial hotels Conventional hotels Resort hotels Suite hotels B&B hotels Extended stay hotels Casino hotels Timeshares Condominiums Service apartments

Size & number of properties  Small hotels  Medium sized hotels  Large hotels  Very large hotels  Mega hotels  Chain hotels

Source: Hotel housekeeping (Operations & Raghubalan&SmriteeRaghubalan, Oxford University Press

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Level of service

Length of stay

Theme based

 Economy/budg et hotels  Mid-scale hotels  Luxury hotels

 Transient hotels  Residential hotels  Semiresidential hotels

 Heritage hotels  Ecotels  Boutique hotels  Spas

Management),

Second

Edition,

G.

When Indian government stated the new Companies Act 2013 which mentions that at least two percent of the net profit of the companies should be spent on CSR by the companies which fall under the category of income of at least Rs 5 crore net profit or Rs 1000 crore turnover or Rs 500 crore net worth in the consequent three year previous years, then most of the luxury chain hotels became part of such category. Table 1 gives an overview of the different criteria‟s used to classify hotels. This helps in defining their share to be used in CSR responsibilities. This has enforced the hotel companies to extend their contribution towards various activities of CSR and it becomes important for the organizations to understand the basic issues of CSR to incorporate in the annual report. Many researchers and academicians have stated the meaning of CSR but as such there is no definition available which can be termed as the definition of CSR though, the most commonly referred definition is denoted by The World Business Council for Sustainable Development“the commitment of the company to contribute to the sustained economic development by working with employees, their families, the local community, and the entire society in order to improve life quality”. Godfrey and Hatch (2007) have stated that CSR is not just making profit but doing additional work for society without getting any returns for the company. Carroll, 2000 has mentioned that CSR activities are categorized in three segments: economic, legal and ethical; economic and legal responsibility denotes required initiatives, the ethical responsibility shows expected responsibility and the philanthropic responsibility are considered to be desired responsibility. Lantos, 2001 has differentiated between ethical and altruistic CSR by relating the first one with the impact by organizational activities and second with the company‟s initiatives that overcome the harmful effects by preventing and rectifying procedures. If we look back few years ago then it is noticed that hotel corporations have been incorporated the environmental and social issues as a part of their corporate strategies as a common practice (Kasim, 2004) but the number was less. Hotel industry is spread in huge numbers all over the world and the initiatives taken are not necessarily fall under CSR practices (Waddock, 2008 & Valor, 2005). Kirk, 1995 has observed that being socially responsible can give commercial advantage to the hotel firms leading to positive effects on the hotel‟s performance. Thus CSR practices and its impact assessment on various stakeholders has been a matter of concern for many researchers since modern days.

When Indian government stated the new Companies Act 2013 which mentions that at least two percent of the net profit of the companies should be spent on CSR by the companies which fall under the category of income of at least Rs 5 crore net profit or Rs 1000 crore turnover or Rs 500 crore net worth in the consequent three year previous years, then most of the luxury chain hotels became part of such category. Table 1 gives an overview of the different criteria‟s used to classify hotels. This helps in defining their share to be used in CSR responsibilities. This has enforced the hotel companies to extend their contribution towards various activities of CSR and it becomes important for the organizations to understand the basic issues of CSR to incorporate in the annual report. Many researchers and academicians have stated the meaning of CSR but as such there is no definition available which can be termed as the definition of CSR though, the most commonly referred definition is denoted by The World Business Council for Sustainable Development“the commitment of the company to contribute to the sustained economic development by working with employees, their families, the local community, and the entire society in order to improve life quality”. Godfrey and Hatch (2007) have stated that CSR is not just making profit but doing additional work for society without getting any returns for the company. Carroll, 2000 has mentioned that CSR activities are categorized in three segments: economic, legal and ethical; economic and legal responsibility denotes required initiatives, the ethical responsibility shows expected responsibility and the philanthropic responsibility are considered to be desired responsibility. Lantos, 2001 has differentiated between ethical and altruistic CSR by relating the first one with the impact by organizational activities and second with the company‟s initiatives that overcome the harmful effects by preventing and rectifying procedures. If we look back few years ago then it is noticed that hotel corporations have been incorporated the environmental and social issues as a part of their corporate strategies as a common practice (Kasim, 2004) but the number was less. Hotel industry is spread in huge numbers all over the world and the initiatives taken are not necessarily fall under CSR practices (Waddock, 2008 & Valor, 2005). Kirk, 1995 has observed that being socially responsible can give commercial advantage to the hotel firms leading to positive effects on the hotel‟s performance. Thus CSR practices and its impact assessment on various stakeholders has been a matter of concern for many researchers since modern days.

2. Impact of CSR on Stakeholders

2. Impact of CSR on Stakeholders

The image of any company depends upon the perception of stakeholders (community, shareholders, suppliers, customers and employees)and ethical behavior has become expectation of society and individuals (Henderson, 2007), therefore, it becomes important to understand the perception of stakeholders regarding CSR (Cochius, 2006). Employees are considered to be one of the most important stakeholders of any company. Valentine & Fleischman, 2008 have observed that CSR activities lead to job satisfaction of the employees of various fields. (Chaing, 2010) has suggested that company‟s strategies should be merged with CSR to improve the company‟s profile job satisfaction rate of employees and employee engagement is a key to sustainable success, therefore, it becomes important for hotel companies to explain the importance of taking care of local communities and the environment. In addition to this, companies should also provide with good working conditions so that they can feel good about their company and consequently have a strong commitment and improve their job satisfaction and morale.

The image of any company depends upon the perception of stakeholders (community, shareholders, suppliers, customers and employees)and ethical behavior has become expectation of society and individuals (Henderson, 2007), therefore, it becomes important to understand the perception of stakeholders regarding CSR (Cochius, 2006). Employees are considered to be one of the most important stakeholders of any company. Valentine & Fleischman, 2008 have observed that CSR activities lead to job satisfaction of the employees of various fields. (Chaing, 2010) has suggested that company‟s strategies should be merged with CSR to improve the company‟s profile job satisfaction rate of employees and employee engagement is a key to sustainable success, therefore, it becomes important for hotel companies to explain the importance of taking care of local communities and the environment. In addition to this, companies should also provide with good working conditions so that they can feel good about their company and consequently have a strong commitment and improve their job satisfaction and morale.

Many companies have designed the corporate philanthropic programs in a way that the employees get establish good faith and strong business reputation which improves the employees' morale and productivity (Porter & Kramer, 2002; Geroy, Wright & Jacoby, 2000) and employees get opportunities to strengthen their professional and interpersonal skills through informal training program under employee volunteer programs (Ross, 1997) which increases the morale of the employees to improve the job satisfaction resulting in less turnover (Lantos, 2002) and leads to strong organizational commitment of the employees (Stites & Michael, 2011; Brammer, Millington & Rayton, 2007). Koh & Boo, (2001) have stated that one of the dimensions of CSR is organizational ethics which improvise the job satisfaction of employees. This study has further strengthened the role of CSR and its impact of Employee Motivation. The study by Zheng (2010) has suggested that companies should communicate to employees regarding CSR strategies and focus on ethical engagement as organizations will also get benefitted by effectively interacting with the employees on CSR issues. Employees' perceive that conforming to rules and regulations, reducing waste and pollution, treating employees and other stakeholders fairly and getting engaged in community development are a part of CSR (Maignan & Ferrell,

Many companies have designed the corporate philanthropic programs in a way that the employees get establish good faith and strong business reputation which improves the employees' morale and productivity (Porter & Kramer, 2002; Geroy, Wright & Jacoby, 2000) and employees get opportunities to strengthen their professional and interpersonal skills through informal training program under employee volunteer programs (Ross, 1997) which increases the morale of the employees to improve the job satisfaction resulting in less turnover (Lantos, 2002) and leads to strong organizational commitment of the employees (Stites & Michael, 2011; Brammer, Millington & Rayton, 2007). Koh & Boo, (2001) have stated that one of the dimensions of CSR is organizational ethics which improvise the job satisfaction of employees. This study has further strengthened the role of CSR and its impact of Employee Motivation. The study by Zheng (2010) has suggested that companies should communicate to employees regarding CSR strategies and focus on ethical engagement as organizations will also get benefitted by effectively interacting with the employees on CSR issues. Employees' perceive that conforming to rules and regulations, reducing waste and pollution, treating employees and other stakeholders fairly and getting engaged in community development are a part of CSR (Maignan & Ferrell,

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2000). Employee perception towards company's CSR activities is positive work outcomes. It also helps the employees to develop the skills like social networking and group identification (Caldwell & Andereck, 1994). Professional skills like teamwork, communication, event management and leadership/interpersonal could be developed in employees through workplace volunteer programs (Wild, 1993). In fact, volunteer employees are motivated and attain personal satisfaction by undertaking meaningful tasks and helping people (Dolincar & Randle, 2007). The studies above have shown that surely there is an attitudinal and behavioral effect on the Employees.

2000). Employee perception towards company's CSR activities is positive work outcomes. It also helps the employees to develop the skills like social networking and group identification (Caldwell & Andereck, 1994). Professional skills like teamwork, communication, event management and leadership/interpersonal could be developed in employees through workplace volunteer programs (Wild, 1993). In fact, volunteer employees are motivated and attain personal satisfaction by undertaking meaningful tasks and helping people (Dolincar & Randle, 2007). The studies above have shown that surely there is an attitudinal and behavioral effect on the Employees.

Previous research on relation between attitude and behavior has denoted that it is not necessary that attitude always become behavior because of individual, social and cultural factors (Bentler&Speckart1979;Zanna, Olson & Fazio 1980) but employees do acknowledge the efforts made by company for other stakeholders along with actions focused on them but company‟s concern about the environment doesn‟t have much impact on the employees. Employees relate themselves with organizational identification and believe in knowledge sharing (Farooq, Farooq & Jasimuddin, 2014). Many researchers (Farooq et al., 2013; Glavas& Godwin; Kim,Lee, Lee & Kim, 2010) have observed that CSR initiatives may raise organizational visibility. Cameli, Gilat and Waldman (2007) have mentioned that CSR increases the relation between management and employees and employee retention if organizations' focuses on the development and quality of products and services which leads to higher level of job performance. Also, organizational fairness will have a positive psychological impact on the employee perceptions because it affects the work attitude and behavior (Koh & Boo, 2001) and companies which are strongly committed to CSR activities can recruit and retain their employees more easily because corporate social responsibility helps the employer to attract the job seeker segment as they get attracted towards company‟s' norms which are practicing CSR (Turban & Greening, 1997). Albinger & Freeman (2000) has also observed that corporate social responsibility has a positive influence on the job seeker candidates.

Previous research on relation between attitude and behavior has denoted that it is not necessary that attitude always become behavior because of individual, social and cultural factors (Bentler&Speckart1979;Zanna, Olson & Fazio 1980) but employees do acknowledge the efforts made by company for other stakeholders along with actions focused on them but company‟s concern about the environment doesn‟t have much impact on the employees. Employees relate themselves with organizational identification and believe in knowledge sharing (Farooq, Farooq & Jasimuddin, 2014). Many researchers (Farooq et al., 2013; Glavas& Godwin; Kim,Lee, Lee & Kim, 2010) have observed that CSR initiatives may raise organizational visibility. Cameli, Gilat and Waldman (2007) have mentioned that CSR increases the relation between management and employees and employee retention if organizations' focuses on the development and quality of products and services which leads to higher level of job performance. Also, organizational fairness will have a positive psychological impact on the employee perceptions because it affects the work attitude and behavior (Koh & Boo, 2001) and companies which are strongly committed to CSR activities can recruit and retain their employees more easily because corporate social responsibility helps the employer to attract the job seeker segment as they get attracted towards company‟s' norms which are practicing CSR (Turban & Greening, 1997). Albinger & Freeman (2000) has also observed that corporate social responsibility has a positive influence on the job seeker candidates.

Table 2: CSR Practices and Its Impact on Employees Critical Success Factors

Table 2: CSR Practices and Its Impact on Employees Critical Success Factors

S. No. Author&Year 1

2

3

4

Lantos (2002); Geroy, Wright & Jacoby (2000); Porter & Kramer (2000); Zheng (2010); Dolincar & Randle (2007); Chiang (2010); Koh & Boo (2001); Valentine & Fleischman (2008) Ross (1997), Wild (1993)

Brammer, Millington & Rayton (2007); Stites& Michael (2011) Caldwell & Andereck (1994)

Conclusion Employees get a high level of morale if they get chance to participate in volunteer programs under CSR which leads to personal and job satisfaction. They feel strongly committed to the organization and establish good faith which leads to positive outcome and hence increases the productivity. Ethical behavior of company is also a reason for employees to get committed and provides a greater job satisfaction

Employees get opportunities to strengthen their professional (teamwork, communication, event management and leadership/interpersonal) and interpersonal skills through informal training program under employee volunteer programs Employees get influenced by the company's CSR practices which results to a stronger organizational commitment

Corporate volunteer programs help employees to develops the skills like social networking and group identification

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Critical Success Factors  High morale  Increased personal & job satisfaction  Improved productivity  Increased motivated  Strongly committed

S. No. Author&Year 1

 Enhanced professional & interpersonal skills

2

 Strong organizational commitment

3

 Enhanced social networking & group identification

4

Lantos (2002); Geroy, Wright & Jacoby (2000); Porter & Kramer (2000); Zheng (2010); Dolincar & Randle (2007); Chiang (2010); Koh & Boo (2001); Valentine & Fleischman (2008) Ross (1997), Wild (1993)

Brammer, Millington & Rayton (2007); Stites& Michael (2011) Caldwell & Andereck (1994)

Conclusion Employees get a high level of morale if they get chance to participate in volunteer programs under CSR which leads to personal and job satisfaction. They feel strongly committed to the organization and establish good faith which leads to positive outcome and hence increases the productivity. Ethical behavior of company is also a reason for employees to get committed and provides a greater job satisfaction

Employees get opportunities to strengthen their professional (teamwork, communication, event management and leadership/interpersonal) and interpersonal skills through informal training program under employee volunteer programs Employees get influenced by the company's CSR practices which results to a stronger organizational commitment

Corporate volunteer programs help employees to develops the skills like social networking and group identification

135

Critical Success Factors  High morale  Increased personal & job satisfaction  Improved productivity  Increased motivated  Strongly committed

 Enhanced professional & interpersonal skills

 Strong organizational commitment  Enhanced social networking & group identification

Turban & Greening (1997), Albinger & Freeman (2000) Cameli, Gilat and Waldman (2007)

Job seekers get attracted towards the companies which practice CSR. Therefore, companies which are strongly committed to CSR activities can recruit and retain their employees more easily. It also increases the relationship between management and employees which leads to employee retention



6

Koh& Boo Maignan & (2000)

Organizational fairness will have a positive psychological impact on the employee perceptions because it affects the work attitude and behavior



7

Farooq et al.(2014); Glavas & Godwin (2010); Kim,Lee, Lee & Kim (2013) Farooq, Farooq & Jasimuddin (2014)

CSR initiatives may raise organizational visibility



Employees relate themselves with organizational identification and believe in knowledge sharing.



5

8

(2001); Ferrell

  



Turban & Greening (1997), Albinger & Freeman (2000) Cameli, Gilat and Waldman (2007)

Job seekers get attracted towards the companies which practice CSR. Therefore, companies which are strongly committed to CSR activities can recruit and retain their employees more easily. It also increases the relationship between management and employees which leads to employee retention



6

Koh& Boo Maignan & (2000)

Organizational fairness will have a positive psychological impact on the employee perceptions because it affects the work attitude and behavior



7

Farooq et al.(2014); Glavas & Godwin (2010); Kim,Lee, Lee & Kim (2013) Farooq, Farooq & Jasimuddin (2014)

CSR initiatives may raise organizational visibility



Employees relate themselves with organizational identification and believe in knowledge sharing.



Attracts job seekers Helps in recruitment Retain employees Higher level of job performance

5

Positive psychological impact leads to better attitude and behavior Better organizational visibility Relate with organizational identification Share knowledge

8

(2001); Ferrell

  



Attracts job seekers Helps in recruitment Retain employees Higher level of job performance Positive psychological impact leads to better attitude and behavior Better organizational visibility Relate with organizational identification Share knowledge

Many researchers have stated that companies with CSR image provides an organizational identification which raise to a very clear organizational visibility amongst the stakeholders, especially present employees or even who are seeking job have a positive influence and helps the employer to attract the job seeker segment as they get attracted towards company‟s norms which are practicing CSR. Moreover, if an organization focuses on the development and quality of products and services which are also a component of CSR practice then the relationship between management and employees get increased which leads employee retention resulting to higher level of job performance and directs the employees towards strong organizational commitment. Employees perceive that conforming to rules and regulations, reducing waste and pollution, treating employees and other stakeholders fairly and getting engaged in community development are a part of CSR. Organizational fairness will have a positive psychological impact on the employeewhich helps them to work together and enhance the personal and professional skills like teamwork, communication, event management and leadership qualities.

Many researchers have stated that companies with CSR image provides an organizational identification which raise to a very clear organizational visibility amongst the stakeholders, especially present employees or even who are seeking job have a positive influence and helps the employer to attract the job seeker segment as they get attracted towards company‟s norms which are practicing CSR. Moreover, if an organization focuses on the development and quality of products and services which are also a component of CSR practice then the relationship between management and employees get increased which leads employee retention resulting to higher level of job performance and directs the employees towards strong organizational commitment. Employees perceive that conforming to rules and regulations, reducing waste and pollution, treating employees and other stakeholders fairly and getting engaged in community development are a part of CSR. Organizational fairness will have a positive psychological impact on the employeewhich helps them to work together and enhance the personal and professional skills like teamwork, communication, event management and leadership qualities.

Activities for CSR also help the employees to develop skills like social networking and group identification which is again a motivational factor for them to have a commitment towards the organization. It has been observed that activities like employee volunteer programs may enable to increase the morale and productivity of employees, therefore, many companies have designed the corporate philanthropic programs in a way that the employees get establish good faith and strong business reputation which improves the employees' morale and productivity. It is suggested that companies should communicate to employees regarding CSR strategies and focus on ethical engagement so that organizations will also get benefitted by effectively interacting with the employees on CSR issues.Volunteer employees are motivated and attain personal satisfaction by undertaking meaningful tasks and helping people. Employee engagement is a key to sustainable success; therefore, it becomes important for hotel companies to explain the importance of taking care of local communities and the environment. In addition to this, companies should also provide with good working conditions so that they can feel good about their company and consequently have a strong commitment and improve their job satisfaction. Participation in the workplace volunteer programs increases the morale of the employees which improves the job satisfaction resulting in the less turnover and higher productivity.

Activities for CSR also help the employees to develop skills like social networking and group identification which is again a motivational factor for them to have a commitment towards the organization. It has been observed that activities like employee volunteer programs may enable to increase the morale and productivity of employees, therefore, many companies have designed the corporate philanthropic programs in a way that the employees get establish good faith and strong business reputation which improves the employees' morale and productivity. It is suggested that companies should communicate to employees regarding CSR strategies and focus on ethical engagement so that organizations will also get benefitted by effectively interacting with the employees on CSR issues.Volunteer employees are motivated and attain personal satisfaction by undertaking meaningful tasks and helping people. Employee engagement is a key to sustainable success; therefore, it becomes important for hotel companies to explain the importance of taking care of local communities and the environment. In addition to this, companies should also provide with good working conditions so that they can feel good about their company and consequently have a strong commitment and improve their job satisfaction. Participation in the workplace volunteer programs increases the morale of the employees which improves the job satisfaction resulting in the less turnover and higher productivity.

3. CSR Practices and Key Factor Assessment for Employee Motivation: Framework

3. CSR Practices and Key Factor Assessment for Employee Motivation: Framework

Employees‟ perception towards corporate social responsibility is found to be positive in this research and there are many factors associated to represent that employees are willing to volunteer for the activities

Employees‟ perception towards corporate social responsibility is found to be positive in this research and there are many factors associated to represent that employees are willing to volunteer for the activities

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136

which fall under CSR. It has been observed that employees of a company which practice CSR believe that they have inculcated better attitude and behavior by working together for a common goal and sharing knowledge with each other which results in better organization identification. They have also realized that while participating in volunteer programs, their personal and professional skills have got enhanced and now they pose a very high morale. Enhanced moral of employees plays an important role in justifying corporate conduct (Etizioni, 1988). Employees feel highly motivated and have strong organizational commitment which indicates a longer tenure with the hotel organization. They have recognized that have become more productive and enhanced their performance by becoming a part of an organization which reflects the care for stakeholders, community and the environment. They have comprehended that CSR indicates a strong organizational commitment which provides a distinct visibility to the organization. Figure 2 Cleary indicates the parameters of employee motivation with CSR practices at place.

which fall under CSR. It has been observed that employees of a company which practice CSR believe that they have inculcated better attitude and behavior by working together for a common goal and sharing knowledge with each other which results in better organization identification. They have also realized that while participating in volunteer programs, their personal and professional skills have got enhanced and now they pose a very high morale. Enhanced moral of employees plays an important role in justifying corporate conduct (Etizioni, 1988). Employees feel highly motivated and have strong organizational commitment which indicates a longer tenure with the hotel organization. They have recognized that have become more productive and enhanced their performance by becoming a part of an organization which reflects the care for stakeholders, community and the environment. They have comprehended that CSR indicates a strong organizational commitment which provides a distinct visibility to the organization. Figure 2 Cleary indicates the parameters of employee motivation with CSR practices at place.

Figure 1: CSR Practices and Key Factor Assessment for Employee Motivation: Framework

Figure 1: CSR Practices and Key Factor Assessment for Employee Motivation: Framework

4. Conclusion

4. Conclusion

Corporate social responsibility has been investigated dynamically over few years and many authors have expressed the relation between corporate social responsibility (CSR) and employees thought process towards CSR. It has been identified that employees feel motived to participate in the volunteer programs andget job satisfaction. It also shows better organization visibility and strong commitment and improved productivity. Furthermore, having recognized a growing number of hotels are adapting and incorporating the CSR practices in their strategies to get visibility from the job seekers. Social performance of company can also be used as tool for recruitment because it has a positive impact on the psychology of job seekers. It is also noticed that employees prefer to be a part of hotels for long tenure those are doing their business ethically and showing interest towards community and stakeholders.Thus, the key to sustainability is to communicate about the CSR practices with hotel employees and get them engaged into the activities related to CSR.

Corporate social responsibility has been investigated dynamically over few years and many authors have expressed the relation between corporate social responsibility (CSR) and employees thought process towards CSR. It has been identified that employees feel motived to participate in the volunteer programs andget job satisfaction. It also shows better organization visibility and strong commitment and improved productivity. Furthermore, having recognized a growing number of hotels are adapting and incorporating the CSR practices in their strategies to get visibility from the job seekers. Social performance of company can also be used as tool for recruitment because it has a positive impact on the psychology of job seekers. It is also noticed that employees prefer to be a part of hotels for long tenure those are doing their business ethically and showing interest towards community and stakeholders.Thus, the key to sustainability is to communicate about the CSR practices with hotel employees and get them engaged into the activities related to CSR.

5. References

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Author’s Profile

Author’s Profile Prof. Savita Sharma is postgraduate in Tourism Management and graduate in Hospitality & Hotel Administration from IHM Lucknow (National Council for Hotel Management & Catering Technology, Pusa, New Delhi). Ms. Sharma is currently pursuing Ph.D. in the area of Corporate Social Responsibility and holds more than 12 years of experience. She is also a Certified Hospitality Educator (CHE) from American Hotel & Lodging Educational Institute and she specializes in Rooms Division Management.

Prof. Savita Sharma is postgraduate in Tourism Management and graduate in Hospitality & Hotel Administration from IHM Lucknow (National Council for Hotel Management & Catering Technology, Pusa, New Delhi). Ms. Sharma is currently pursuing Ph.D. in the area of Corporate Social Responsibility and holds more than 12 years of experience. She is also a Certified Hospitality Educator (CHE) from American Hotel & Lodging Educational Institute and she specializes in Rooms Division Management.

She has authored about 05 books for different universities. She has participated in a numbers of FDPs to keep herself updated and presented papers at National and International seminars and conferences. She has proposed syllabus for various universities at graduate level and short term programs. Prior to this organization, she was igniting the young brains of IHM, Mumbai. She has been awarded as “Best Groomed Trainee” during the industrial training at Hotel Hyatt Regency, New Delhi (2002). She stood first in Quiz Competition at National Level organized by All India Radio (1998) and also positioned first in Table Tennis at National Level

She has authored about 05 books for different universities. She has participated in a numbers of FDPs to keep herself updated and presented papers at National and International seminars and conferences. She has proposed syllabus for various universities at graduate level and short term programs. Prior to this organization, she was igniting the young brains of IHM, Mumbai. She has been awarded as “Best Groomed Trainee” during the industrial training at Hotel Hyatt Regency, New Delhi (2002). She stood first in Quiz Competition at National Level organized by All India Radio (1998) and also positioned first in Table Tennis at National Level

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organized by K.V. Sangathan (1997). She is a very dynamic and competent professional working as Assistant Professor and also holds the responsibility of Girls‟ hostel as Warden.

organized by K.V. Sangathan (1997). She is a very dynamic and competent professional working as Assistant Professor and also holds the responsibility of Girls‟ hostel as Warden.

Dr. Pratika Mishra has been associated with the academic industry since 2005 and is currently working as Faculty and Program Coordinator MBA School of Management Studies with Ansal University. She has been actively involved in teaching and mentoring both at Post Graduate and PhD level. Prior to Ansal University she has also worked as a Faculty with G.B. Pant Social Science Institute Allahabad and Indian Institute of Information Technology, Allahabad. Her Area of Expertise is Strategic Marketing Management and she is also Area Chair Strategy, SMS, Ansal University. She is a Commerce Graduate, from University of Allahabad (Gold Medalist), MBA from Indian School of Mines Dhanbad, Merit Holder and PhD from IIIT Allahabad. She has more than 30 research publications and edited books to her credit. She has also been Editor of Newsletter De Facto (Ansal University) Associate Editor of International Refreed Journal Ansal University Business Review, was Chief Coordinator, Quarterly E Magazine B‟ Cognizance (IIIT Allahabad), and has been Member Organizing Committee of more than a dozen Conferences, Seminars, Workshops and Noble Laureates Conclave. She has also been involved in Content Development of Papers like Research Methodology and Advertising Management for Project Under Department of Information Technology, MCIT, GoI. She has conducted more than five MDP and FDP at IIIT Allahabad and has been invited for Special Talks at Institute of Repute in the area of Strategic Relationship Marketing.

Dr. Pratika Mishra has been associated with the academic industry since 2005 and is currently working as Faculty and Program Coordinator MBA School of Management Studies with Ansal University. She has been actively involved in teaching and mentoring both at Post Graduate and PhD level. Prior to Ansal University she has also worked as a Faculty with G.B. Pant Social Science Institute Allahabad and Indian Institute of Information Technology, Allahabad. Her Area of Expertise is Strategic Marketing Management and she is also Area Chair Strategy, SMS, Ansal University. She is a Commerce Graduate, from University of Allahabad (Gold Medalist), MBA from Indian School of Mines Dhanbad, Merit Holder and PhD from IIIT Allahabad. She has more than 30 research publications and edited books to her credit. She has also been Editor of Newsletter De Facto (Ansal University) Associate Editor of International Refreed Journal Ansal University Business Review, was Chief Coordinator, Quarterly E Magazine B‟ Cognizance (IIIT Allahabad), and has been Member Organizing Committee of more than a dozen Conferences, Seminars, Workshops and Noble Laureates Conclave. She has also been involved in Content Development of Papers like Research Methodology and Advertising Management for Project Under Department of Information Technology, MCIT, GoI. She has conducted more than five MDP and FDP at IIIT Allahabad and has been invited for Special Talks at Institute of Repute in the area of Strategic Relationship Marketing.

Dr. Bhandari is UNCTAD trained economist presently working as Associate Professor and Area Chair-Economics and International Business in School of Management Studies at Ansal University, Gurgaon, India. He specializes in International Economics, International Business, Managerial Economics and other related subjects. He has earned his PhD in Economics from Kumaun University, Nainital. Dr. Bhandari has also completed a Refresher Course/Training Programme (21days) on “International Trade Theory and Policy-Modeling and Methodology” which was held at Department of Economics, University of Allahabad under the United Nations Conference for Trade and Development (UNCTAD) (India), Department for International Development (DFID) (UK) and Ministry of Commerce (GOI) Programme, “Strategy and Preparedness for Trade and Globalization in India.” Dr. Bhandari has been appointed as the founder Editor of Ansal University Business Review, the flagship journal of Ansal University. In addition, Dr. Bhandari has been nominated as the editorial member of (i) Journal of Economics and Economic Education Research (JEEER), Allied Academies, North Carolina, USA (ii) Journal of International Business Research (JIBR). Allied Academies, North Carolina, USA. He has also written many research papers which have been published in refereed journals and conference proceedings. Dr. Bhandari has been invited by ASSOCHAM in various conferences as speaker He is member of Indian Economic Association and Academy of International Business (India Chapter). Recently, he has been conferred with “Senior Educator and Scholar Award” by National Foundation for Entrepreneurship Development, Coimbatore, Tamilnadu on Teacher‟s Day 5th September 2014.

Dr. Bhandari is UNCTAD trained economist presently working as Associate Professor and Area Chair-Economics and International Business in School of Management Studies at Ansal University, Gurgaon, India. He specializes in International Economics, International Business, Managerial Economics and other related subjects. He has earned his PhD in Economics from Kumaun University, Nainital. Dr. Bhandari has also completed a Refresher Course/Training Programme (21days) on “International Trade Theory and Policy-Modeling and Methodology” which was held at Department of Economics, University of Allahabad under the United Nations Conference for Trade and Development (UNCTAD) (India), Department for International Development (DFID) (UK) and Ministry of Commerce (GOI) Programme, “Strategy and Preparedness for Trade and Globalization in India.” Dr. Bhandari has been appointed as the founder Editor of Ansal University Business Review, the flagship journal of Ansal University. In addition, Dr. Bhandari has been nominated as the editorial member of (i) Journal of Economics and Economic Education Research (JEEER), Allied Academies, North Carolina, USA (ii) Journal of International Business Research (JIBR). Allied Academies, North Carolina, USA. He has also written many research papers which have been published in refereed journals and conference proceedings. Dr. Bhandari has been invited by ASSOCHAM in various conferences as speaker He is member of Indian Economic Association and Academy of International Business (India Chapter). Recently, he has been conferred with “Senior Educator and Scholar Award” by National Foundation for Entrepreneurship Development, Coimbatore, Tamilnadu on Teacher‟s Day 5th September 2014.

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Building University Image and Reputation through Social Responsibility

Building University Image and Reputation through Social Responsibility

Sri Aliami1, Subagyo2, Diani Nurhajati3 Nusantara University PGRI Kediri, East Java, Indonesia 1 [email protected], 2 [email protected], 3 [email protected]

Sri Aliami1, Subagyo2, Diani Nurhajati3 Nusantara University PGRI Kediri, East Java, Indonesia 1 [email protected], 2 [email protected], 3 [email protected]

Abstract

Abstract

University as an organization established for a long period. In effort to maintain the survival and quality of development, university needs to develop the right strategy, commitment, and concern for handling social issues. Strategies that can be done to improve the image and reputation of the university in the minds of stakeholders is through social responsibility. The image of university reflects the public's perception about social responsibility which is done as a form of public perceptions, objectively based on their experience. Stakeholder assessment reflects the reputation of the university, either in the form of self-assessment in whole or obtained from comparing with other universities. Good image and reputation is one of the competitive advantages. University social responsibility is not only limited to the internal parties (faculty, staff, and students), but also to external parties (environment, community, business, and government). In addition, the implementation of social responsibility in university can partner with local governments and companies, both private and state enterprises.

University as an organization established for a long period. In effort to maintain the survival and quality of development, university needs to develop the right strategy, commitment, and concern for handling social issues. Strategies that can be done to improve the image and reputation of the university in the minds of stakeholders is through social responsibility. The image of university reflects the public's perception about social responsibility which is done as a form of public perceptions, objectively based on their experience. Stakeholder assessment reflects the reputation of the university, either in the form of self-assessment in whole or obtained from comparing with other universities. Good image and reputation is one of the competitive advantages. University social responsibility is not only limited to the internal parties (faculty, staff, and students), but also to external parties (environment, community, business, and government). In addition, the implementation of social responsibility in university can partner with local governments and companies, both private and state enterprises.

Keywords: image, reputation, and responsibility social

Keywords: image, reputation, and responsibility social

1. Introduction

1. Introduction

The company was established in general for a long period of time. The company will exist if it has a good image and reputation in the minds of consumers and customers. There are many ways to establish the image and reputation of the company, one of which is through corporate social responsibility (CSR).

The company was established in general for a long period of time. The company will exist if it has a good image and reputation in the minds of consumers and customers. There are many ways to establish the image and reputation of the company, one of which is through corporate social responsibility (CSR).

Nowadays, many companies are realizing the importance of CSR. CSR is the commitment of business world to act ethically, legally operate and contribute to economic development, improving the quality of life of employees and improving the quality of the local community and society at large. CSR not only fulfill the obligation set by the Act, but it is part of the company's business strategy relating to the sustainability of the business in the long run. It is recognized, considering the company must have the commitment and concern for the handling of social problems, to be able to survive (going concern). CSR program is the company's commitment to support the creation of sustainable development.

Nowadays, many companies are realizing the importance of CSR. CSR is the commitment of business world to act ethically, legally operate and contribute to economic development, improving the quality of life of employees and improving the quality of the local community and society at large. CSR not only fulfill the obligation set by the Act, but it is part of the company's business strategy relating to the sustainability of the business in the long run. It is recognized, considering the company must have the commitment and concern for the handling of social problems, to be able to survive (going concern). CSR program is the company's commitment to support the creation of sustainable development.

A good image will have a beneficial impact to the organization. According to Steinmetz cited in Sutojo (2004), image defines as the public perception of its corporate identity. Corporate image begins with the public perception of the activities of the company which can form the customer's perception of time (Gregory & Wiechmann, 2001). Furthermore Leblanc (2001) described the company's image as a public impression about what the company do.

A good image will have a beneficial impact to the organization. According to Steinmetz cited in Sutojo (2004), image defines as the public perception of its corporate identity. Corporate image begins with the public perception of the activities of the company which can form the customer's perception of time (Gregory & Wiechmann, 2001). Furthermore Leblanc (2001) described the company's image as a public impression about what the company do.

Reputation is a value that is given to individuals or institutions. Reputation can not be obtained in a short time, because they need times to create something that can be judged by the public. Reputable companies have a positive effect on the survival and profitability of the company, as well as an effective mechanism to maintain or gain a competitive advantage (Fomburn et al., 1996). Reputation reflects the company's value for enterprise customers, whether it is their own assessment of the company as a whole or obtained from comparing with the company's competitors.

Reputation is a value that is given to individuals or institutions. Reputation can not be obtained in a short time, because they need times to create something that can be judged by the public. Reputable companies have a positive effect on the survival and profitability of the company, as well as an effective mechanism to maintain or gain a competitive advantage (Fomburn et al., 1996). Reputation reflects the company's value for enterprise customers, whether it is their own assessment of the company as a whole or obtained from comparing with the company's competitors.

The reputation of the company is a strategic asset, because it can increase the company’s value. Strong reputation helped the company not only in selling products with affordable prices, but also in attracting high-

The reputation of the company is a strategic asset, because it can increase the company’s value. Strong reputation helped the company not only in selling products with affordable prices, but also in attracting high-

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potential employees to work on it. Company with a strong reputation tends to be the ideal company and mooring for a professional. Corporate image and reputation is built social activities through two entities from customer perception.

potential employees to work on it. Company with a strong reputation tends to be the ideal company and mooring for a professional. Corporate image and reputation is built social activities through two entities from customer perception.

According to Rowe and Mason (1992), an organization has a responsibility towards the social environment and the natural environment. Organizations have a responsibility to the social environment for organizations (both profit-oriented, semi-profit oriented and socially oriented) is a legal entity. University as a legal organization entity can not be separated from social responsibility to the environment.

According to Rowe and Mason (1992), an organization has a responsibility towards the social environment and the natural environment. Organizations have a responsibility to the social environment for organizations (both profit-oriented, semi-profit oriented and socially oriented) is a legal entity. University as a legal organization entity can not be separated from social responsibility to the environment.

Indeed, the university has been carrying out CSR, which is carrying out social responsibility in education, research and community service, known as the Tri Dharma Perguruan Tinggi. As an organization in general, the university was established for a long period of time, therefore, universities need to bring up the image and perception of good in stakeholders mind.

Indeed, the university has been carrying out CSR, which is carrying out social responsibility in education, research and community service, known as the Tri Dharma Perguruan Tinggi. As an organization in general, the university was established for a long period of time, therefore, universities need to bring up the image and perception of good in stakeholders mind.

Universities Social responsibility in this context is an analog of the term corporate social responsibility. Remember, characterized by a non-profit university, the term corporate becomes less precise, so use the term university as a counterpart (Widyatoro et al, 2009).

Universities Social responsibility in this context is an analog of the term corporate social responsibility. Remember, characterized by a non-profit university, the term corporate becomes less precise, so use the term university as a counterpart (Widyatoro et al, 2009).

2. Corporate Social Responsibility

2. Corporate Social Responsibility

In short Corporate Social Responsibility (CSR) can be interpreted as a company socially responsible that is voluntary. CSR is a concept that encourages organizations to have a balanced social responsibility to customers, employees, communities, the environment and other stakeholders. Iriantara (2004) presents the elements of CSR activities as follows: (1) continuity and sustainability. This means that CSR activities should be carried out continuously in the long-term, systematic and planned to be evaluated; (2) Community empowerment 'community empowerment'. That is, the CSR program conducted in an effort to make the community more independent than before the CSR; (3) two ways, that is to say, the company is not acting as a communicator alone, but also to be able to listen to the aspirations of the community.

In short Corporate Social Responsibility (CSR) can be interpreted as a company socially responsible that is voluntary. CSR is a concept that encourages organizations to have a balanced social responsibility to customers, employees, communities, the environment and other stakeholders. Iriantara (2004) presents the elements of CSR activities as follows: (1) continuity and sustainability. This means that CSR activities should be carried out continuously in the long-term, systematic and planned to be evaluated; (2) Community empowerment 'community empowerment'. That is, the CSR program conducted in an effort to make the community more independent than before the CSR; (3) two ways, that is to say, the company is not acting as a communicator alone, but also to be able to listen to the aspirations of the community.

According Wibisono (2007) CSR implementation by a company provide many benefits, including: (1) maintain or boost the company's reputation and brand image; (2) deserve a social license to operate and; (3) reduce the risk of the company's business; (4) to widen access to resources; (5) spread access to markets; (6) to reduce costs; (7) to improve relations with stakeholders; (8) to improve relations with regulators; (9) improve employee morale and productivity; (10) the opportunity to get an award.

According Wibisono (2007) CSR implementation by a company provide many benefits, including: (1) maintain or boost the company's reputation and brand image; (2) deserve a social license to operate and; (3) reduce the risk of the company's business; (4) to widen access to resources; (5) spread access to markets; (6) to reduce costs; (7) to improve relations with stakeholders; (8) to improve relations with regulators; (9) improve employee morale and productivity; (10) the opportunity to get an award.

In a study conduct by Budiarsi, cited by Saputri (2010), there are several reasons why CSR is becoming very important in the formation of the company's image. The reason is that, the transparency factor that puts the company as always in the microscope lens, so it can be viewed by anyone and the impact is anyone can figure out social responsibility activities quickly. The next factor is the knowledge of the consumer in choosing a product or a company that not only underlying business from the financial sector, but also social and environmental factors. The third factor is the sustainability of the universe. And the last is this era of globalization where the community wants a balance between the desire of the company to a wider public desire.

In a study conduct by Budiarsi, cited by Saputri (2010), there are several reasons why CSR is becoming very important in the formation of the company's image. The reason is that, the transparency factor that puts the company as always in the microscope lens, so it can be viewed by anyone and the impact is anyone can figure out social responsibility activities quickly. The next factor is the knowledge of the consumer in choosing a product or a company that not only underlying business from the financial sector, but also social and environmental factors. The third factor is the sustainability of the universe. And the last is this era of globalization where the community wants a balance between the desire of the company to a wider public desire.

CSR concept arising from distrust of the company. According Wibisono (2007), says that businesses increasingly realize that companies are no longer faced with the responsibility that rests on a single bottom line, ie the value of the company (corporate value) which is reflected in the financial condition, but must pay attention to social and environmental aspects. According Tjipta (2008), CSR will be a business strategy that is inherent in the company to maintain or improve competitiveness through product reputation and brand loyalty or corporate image. Secondly it is a competitive advantage that is difficult for competitors to imitate.

CSR concept arising from distrust of the company. According Wibisono (2007), says that businesses increasingly realize that companies are no longer faced with the responsibility that rests on a single bottom line, ie the value of the company (corporate value) which is reflected in the financial condition, but must pay attention to social and environmental aspects. According Tjipta (2008), CSR will be a business strategy that is inherent in the company to maintain or improve competitiveness through product reputation and brand loyalty or corporate image. Secondly it is a competitive advantage that is difficult for competitors to imitate.

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3. Corporate Reputation

3. Corporate Reputation

The company's reputation is one of the important components in the business world in the form of goods or services. Reputation or good name is one of the targets to be achieved by a company. Good and bad reputation of the company is an important indicator of the success of the company. Maintaining the reputation of the company is a shared responsibility of each department contained in the company. Reputation is a value judgment regarding the quality of the company based on time series is focused on the activities and strategies are implemented. Reputation can not be obtained in a short time, but must be formed gradually and continuously to get an assessment of the various parties. Therefore, in chronological dimension is always attached to the company's reputation. The company has a good reputation as a result of the ability to provide high quality products, have credibility, and in accordance with social responsibility (Nguyen and LeBlanc, 2001).

The company's reputation is one of the important components in the business world in the form of goods or services. Reputation or good name is one of the targets to be achieved by a company. Good and bad reputation of the company is an important indicator of the success of the company. Maintaining the reputation of the company is a shared responsibility of each department contained in the company. Reputation is a value judgment regarding the quality of the company based on time series is focused on the activities and strategies are implemented. Reputation can not be obtained in a short time, but must be formed gradually and continuously to get an assessment of the various parties. Therefore, in chronological dimension is always attached to the company's reputation. The company has a good reputation as a result of the ability to provide high quality products, have credibility, and in accordance with social responsibility (Nguyen and LeBlanc, 2001).

Reputation is essentially a representation of past perceptions and future prospects that describe the company's overall performance (Fombrun, 1996). There are five factors that affect the organization, namely being, action (doing), communicating, listening, and seeing. Organizations need to take action planned to build an impression in the eyes of its stakeholders, the confidence in the organization can be maintained. Meanwhile, according to Helm (2007), defines reputation as an overview of the perception of each stakeholders about how well the company provide a response or responses.

Reputation is essentially a representation of past perceptions and future prospects that describe the company's overall performance (Fombrun, 1996). There are five factors that affect the organization, namely being, action (doing), communicating, listening, and seeing. Organizations need to take action planned to build an impression in the eyes of its stakeholders, the confidence in the organization can be maintained. Meanwhile, according to Helm (2007), defines reputation as an overview of the perception of each stakeholders about how well the company provide a response or responses.

The company's reputation is an important issue for the sustainability of the company. Reputation may explain why customers prefer products or services offered by a company rather than by competitors and that distinguishes between success or failure. The more credible, then the company will be more confident to defend himself face of external claims and negative publicity.

The company's reputation is an important issue for the sustainability of the company. Reputation may explain why customers prefer products or services offered by a company rather than by competitors and that distinguishes between success or failure. The more credible, then the company will be more confident to defend himself face of external claims and negative publicity.

In order to properly manage the reputation it needs measurement. This process, if well done, will be able to show the condition of the company's reputation when compared to competitor's reputation. In addition, the measurement of a company's reputation can also show the sectors and stakeholders that need to be prioritized to be addressed. In general, the results of this measurement also serves as a road map for reputation management process itself. Some of the company do reputation measurement by a simpler approach. For example, by looking at the media coverage and further analyzed into a reputation score cards. This option is better than no action at all evaluation. This approach is more focused on recording the outcomes of public relations activities in the media, while its impact on the target audience has not been detected from the measurement. Especially if it is associated with the actual role of public relations in the field often only act as a transmitter, not as a decision maker.

In order to properly manage the reputation it needs measurement. This process, if well done, will be able to show the condition of the company's reputation when compared to competitor's reputation. In addition, the measurement of a company's reputation can also show the sectors and stakeholders that need to be prioritized to be addressed. In general, the results of this measurement also serves as a road map for reputation management process itself. Some of the company do reputation measurement by a simpler approach. For example, by looking at the media coverage and further analyzed into a reputation score cards. This option is better than no action at all evaluation. This approach is more focused on recording the outcomes of public relations activities in the media, while its impact on the target audience has not been detected from the measurement. Especially if it is associated with the actual role of public relations in the field often only act as a transmitter, not as a decision maker.

In measuring the reputation is not only by calculate the gap between what is presented and perceived media has been done by the company. Reputation measurement process is done in the following way:

In measuring the reputation is not only by calculate the gap between what is presented and perceived media has been done by the company. Reputation measurement process is done in the following way:

1. Determine the stakeholder is the key of the company. Stakeholders consist of employees, customers, potential customers, suppliers, shareholders, NGOs, the media, analysts, the House, or the government. Who are the key stakeholders are determined by the type, scope (local, national, regional, global), and situation (before the IPO, the crisis) facing the company. Each of these stakeholders have realized the degree of interest and different needs.

1. Determine the stakeholder is the key of the company. Stakeholders consist of employees, customers, potential customers, suppliers, shareholders, NGOs, the media, analysts, the House, or the government. Who are the key stakeholders are determined by the type, scope (local, national, regional, global), and situation (before the IPO, the crisis) facing the company. Each of these stakeholders have realized the degree of interest and different needs.

2. Determine the directional components (drivers), in the form of attributes, qualities, feelings, and image or other form. In this phase of qualitative research plays an important role in tapping into the steering components. In general, there are four basic indicators that can be used as capital in tapping the steering components to determine how strong the reputation of a company.

2. Determine the directional components (drivers), in the form of attributes, qualities, feelings, and image or other form. In this phase of qualitative research plays an important role in tapping into the steering components. In general, there are four basic indicators that can be used as capital in tapping the steering components to determine how strong the reputation of a company.

a. The competitive of companies in selling their products at a premium price in a long time period.

a. The competitive of companies in selling their products at a premium price in a long time period.

b. The company's ability to recruit and retain qualified key staff.

b. The company's ability to recruit and retain qualified key staff.

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c. firm consistency in words of mouth support in the form of either a positive recommendation from the supply side as well as marketing.

c. firm consistency in words of mouth support in the form of either a positive recommendation from the supply side as well as marketing.

d. Alignments public when there are problems, not limited to the company's ability to circumvent the media or public criticism.

d. Alignments public when there are problems, not limited to the company's ability to circumvent the media or public criticism.

Fombrun (1996) claims that in order to build a favorable reputation four attributes need to be developed. These are credibility, trustworthiness, reliability and responsibility.

Fombrun (1996) claims that in order to build a favorable reputation four attributes need to be developed. These are credibility, trustworthiness, reliability and responsibility.

1. Credibility - the extent to roomates stakeholders believe an organization is objective, expert and that statements and claims are Likely to be fulfilled.

1. Credibility - the extent to roomates stakeholders believe an organization is objective, expert and that statements and claims are Likely to be fulfilled.

2. trustworthiness - the extent to the which an organization can be depended upon to deliver on its promises.

2. trustworthiness - the extent to the which an organization can be depended upon to deliver on its promises.

3. Reliability - the extent to the which an organization Achieves a consistent level of product / service performance.

3. Reliability - the extent to the which an organization Achieves a consistent level of product / service performance.

4. Responsibility - the extent to the which an organization is perceived to act in the interests of its stakeholders and communities.

4. Responsibility - the extent to the which an organization is perceived to act in the interests of its stakeholders and communities.

4. Image University

4. Image University

The image can be said to be a community-oriented perception of experiences, beliefs, feelings, and knowledge of the company. Aspects of company-owned facilities and services delivered to consumers employees can affect consumers' perceptions of the image. Thus, the image is one of the most important assets of the company or organization that should continually be built and maintained. A good image is a powerful device, not only to attract consumers to choose the product or the company, but also can improve the attitude and customer satisfaction with the company. Corporate image can not be manipulated, means that the image does not come by itself, but shaped by society, communication and disclosure of company activities. Build the image can not be done spontaneously at a given time, but it is a long process. Imagery is all perception of the object formed by the consumer by way of processing information from various sources all the time.

The image can be said to be a community-oriented perception of experiences, beliefs, feelings, and knowledge of the company. Aspects of company-owned facilities and services delivered to consumers employees can affect consumers' perceptions of the image. Thus, the image is one of the most important assets of the company or organization that should continually be built and maintained. A good image is a powerful device, not only to attract consumers to choose the product or the company, but also can improve the attitude and customer satisfaction with the company. Corporate image can not be manipulated, means that the image does not come by itself, but shaped by society, communication and disclosure of company activities. Build the image can not be done spontaneously at a given time, but it is a long process. Imagery is all perception of the object formed by the consumer by way of processing information from various sources all the time.

Kotler explains that, "corporate image is the consumer's response to the total offering and is defined as a sum the belief, ideas, and impressions that a public has an organization". Nguyen and Leblanc revealed that the company's image as: "Corporate image is described as the overall impression made on the minds of the public about organization. It is related to business name, architecture, variety of products / services, tradition, ideology, late to the impression of quality commuicated by each employee interacting with the organization's clients ". Meanwhile, according to Dowling, "the corporate image is a set of beliefs and feeling about an Organizations".

Kotler explains that, "corporate image is the consumer's response to the total offering and is defined as a sum the belief, ideas, and impressions that a public has an organization". Nguyen and Leblanc revealed that the company's image as: "Corporate image is described as the overall impression made on the minds of the public about organization. It is related to business name, architecture, variety of products / services, tradition, ideology, late to the impression of quality commuicated by each employee interacting with the organization's clients ". Meanwhile, according to Dowling, "the corporate image is a set of beliefs and feeling about an Organizations".

Soemirat and Ardianto (2007), argued the benefits of the establishment of good corporate image and strong which is as follows:

Soemirat and Ardianto (2007), argued the benefits of the establishment of good corporate image and strong which is as follows:

1. 2. 3. 4. 5.

1. 2. 3. 4. 5.

Mid and long term sustainable competitive position An insurance for adverse time Increase of the attractiveness exclusive Increase of effectiveness of marketing strategies Operational cost savings

Mid and long term sustainable competitive position An insurance for adverse time Increase of the attractiveness exclusive Increase of effectiveness of marketing strategies Operational cost savings

According to Smith, quoted by Roslina (2009), factors that affect the image of the company (corporate image) are: (a) the product or service, including product quality and concern for the consumer; (b) social

According to Smith, quoted by Roslina (2009), factors that affect the image of the company (corporate image) are: (a) the product or service, including product quality and concern for the consumer; (b) social

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responsibility, membership corporation, ethical behavior, and problems community; (c) Environment, including office, showroom and factory; (d) communications including advertising, public relations, personal communication, brochures, and corporate identity programs. According to Ulrich and Eppinger in Hutapea (2012), some factors that affect the image of an organization are: (a) Leadership; (b) policy and strategy; (c) personnel policy; (d) asset management; (e) process management; (f) customer satisfaction, (g) Employee satisfaction; (h) social responsibility; (i) business result/profit. Elements that forming the image of the company consists of: financial capability, financial capability, quality of products and services, human resource excellence, reliability, innovation, environmental responsibility, social responsibility and uphold good corporate governance.

responsibility, membership corporation, ethical behavior, and problems community; (c) Environment, including office, showroom and factory; (d) communications including advertising, public relations, personal communication, brochures, and corporate identity programs. According to Ulrich and Eppinger in Hutapea (2012), some factors that affect the image of an organization are: (a) Leadership; (b) policy and strategy; (c) personnel policy; (d) asset management; (e) process management; (f) customer satisfaction, (g) Employee satisfaction; (h) social responsibility; (i) business result/profit. Elements that forming the image of the company consists of: financial capability, financial capability, quality of products and services, human resource excellence, reliability, innovation, environmental responsibility, social responsibility and uphold good corporate governance.

5. Relationship Image and Reputation With CSR

5. Relationship Image and Reputation With CSR

Companies that have a good reputation and image, usually carry six things: good relationships with community leaders, positive relationship with the local government, smaller risk of crisis, a sense of pride in the organization, mutual understanding between internal and external, and increase the loyalty of the staff of the company (Anggoro, 2002). There are some basic concepts as the motivation of the company is trying to respond and develop social responsibility in line with its business operations, i.e.: (1) company is a part of the community and should realize that they are operating in an order of society. This serves as a social activity or effort reciprocal compensation over control of natural resources and economic resources by companies that sometimes is expansive and explorative, in addition to a social compensation since the onset of discomfort in the community. For that, to the awareness of the importance of the implementation of CSR is increasingly excited by the global public awareness on environment-friendly products and manufactured with attention to social norms. (2) The business community and the public should be symbiotic mutualism to get support from the community, so the company must, positively contributing to the community so that it can create a harmonious relationship and raised the reputation and image of the company. Companies should be aware that the responsibility is not just economic activity to create profit the continuity of the business, but also social and environmental responsibility. (3) The social responsibility is one way to curb and prevent social conflict. Given the potential conflicts that can come as a result of company's operations impact or as a result of structural and economic disparities that arise between the company.

Companies that have a good reputation and image, usually carry six things: good relationships with community leaders, positive relationship with the local government, smaller risk of crisis, a sense of pride in the organization, mutual understanding between internal and external, and increase the loyalty of the staff of the company (Anggoro, 2002). There are some basic concepts as the motivation of the company is trying to respond and develop social responsibility in line with its business operations, i.e.: (1) company is a part of the community and should realize that they are operating in an order of society. This serves as a social activity or effort reciprocal compensation over control of natural resources and economic resources by companies that sometimes is expansive and explorative, in addition to a social compensation since the onset of discomfort in the community. For that, to the awareness of the importance of the implementation of CSR is increasingly excited by the global public awareness on environment-friendly products and manufactured with attention to social norms. (2) The business community and the public should be symbiotic mutualism to get support from the community, so the company must, positively contributing to the community so that it can create a harmonious relationship and raised the reputation and image of the company. Companies should be aware that the responsibility is not just economic activity to create profit the continuity of the business, but also social and environmental responsibility. (3) The social responsibility is one way to curb and prevent social conflict. Given the potential conflicts that can come as a result of company's operations impact or as a result of structural and economic disparities that arise between the company.

Some studies on the association of corporate social responsibility and reputation, for example: Brown (1998), which conducts research on reputation with regard to public recognition of the social behavior carried out by the company for the community and the environment. Schultz et al. (2001), stated that the company's reputation depends not only social behavior that is done today but the community also assess social behavior in the past. Although there are some studies that say that there is no relationship or there negative relationship between corporate social responsibility and corporate performance, but research conducted by different researchers found a positive relationship between corporate social responsibility and corporate performance (Abratt and Sacks et al.). Social responsibility is a consequence results of the company's policy against the norms, values and the expected performance of the company to the social system (Miles, 1987). In that regard, Dowling (1986) conduct research in public perceptions of corporate image associated with social behavior does through performance marketing (sales).

Some studies on the association of corporate social responsibility and reputation, for example: Brown (1998), which conducts research on reputation with regard to public recognition of the social behavior carried out by the company for the community and the environment. Schultz et al. (2001), stated that the company's reputation depends not only social behavior that is done today but the community also assess social behavior in the past. Although there are some studies that say that there is no relationship or there negative relationship between corporate social responsibility and corporate performance, but research conducted by different researchers found a positive relationship between corporate social responsibility and corporate performance (Abratt and Sacks et al.). Social responsibility is a consequence results of the company's policy against the norms, values and the expected performance of the company to the social system (Miles, 1987). In that regard, Dowling (1986) conduct research in public perceptions of corporate image associated with social behavior does through performance marketing (sales).

6. University Social Responsibility

6. University Social Responsibility

In line with the development of the concept of CSR, the social responsibility of the university currently has been changed compared to a few decades ago. Social responsibility universities can no longer be seen as limited to the manufacturer or laboratory science, education, research, teaching, community service, academic freedom and institutional pulpit to obtain the truth, but has undergone a remarkable transformation into active community life. Thus, the university social responsibility is no longer limited to the ivory tower producing a mere scholar, but has grown so complex may even exceed the social responsibility of a company. In the public's mind , now a university / university has been considered as an institution versatile, powerful and reliable in the patent as well as address

In line with the development of the concept of CSR, the social responsibility of the university currently has been changed compared to a few decades ago. Social responsibility universities can no longer be seen as limited to the manufacturer or laboratory science, education, research, teaching, community service, academic freedom and institutional pulpit to obtain the truth, but has undergone a remarkable transformation into active community life. Thus, the university social responsibility is no longer limited to the ivory tower producing a mere scholar, but has grown so complex may even exceed the social responsibility of a company. In the public's mind , now a university / university has been considered as an institution versatile, powerful and reliable in the patent as well as address

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concerns and changes that occur in people's lives (Firdausy, 2009). However, the formulation of the concept of clear and adequate to position exactly how social responsibility that should be played university almost still very limited.

concerns and changes that occur in people's lives (Firdausy, 2009). However, the formulation of the concept of clear and adequate to position exactly how social responsibility that should be played university almost still very limited.

The role of universities in the intellectual life of the nation is not doubt, but universities also play a role in developing the socio-economic environment, including the natural environment around the campus, making it useful and able to develop socio-economic levels of society around the campus in the context of sustainable development. College needs the surrounding community as a supporting element activity, because the college is not a solitary institution that can support them without involving the supporting elements in the vicinity. Community in college circle as a supporting element also requires care for themselves in order to develop the potential that has been owned by the people around. If college care with its social environment, its presence will undoubtedly mean a lot to college circle community, so the surrounding communities into thriving, which in turn can manifest college circle community development and sustainable college development

The role of universities in the intellectual life of the nation is not doubt, but universities also play a role in developing the socio-economic environment, including the natural environment around the campus, making it useful and able to develop socio-economic levels of society around the campus in the context of sustainable development. College needs the surrounding community as a supporting element activity, because the college is not a solitary institution that can support them without involving the supporting elements in the vicinity. Community in college circle as a supporting element also requires care for themselves in order to develop the potential that has been owned by the people around. If college care with its social environment, its presence will undoubtedly mean a lot to college circle community, so the surrounding communities into thriving, which in turn can manifest college circle community development and sustainable college development

University social responsibility can be done by partnering with other institutions or by itself. Through Tri Dharma, universitys can implement their social responsibilities to foster SMEs through training (preparation of financial statements, tax consulting, financial management), helping village in managing cooperative, participates in preserving the environment, for example, go green university, hygiene river around university, no smoking area, recycle, reduction in the use of plastic bags, periodically hold treatment and free medical checks, provide legal advice and helped the poor to make latrines, water pumps, etc.

University social responsibility can be done by partnering with other institutions or by itself. Through Tri Dharma, universitys can implement their social responsibilities to foster SMEs through training (preparation of financial statements, tax consulting, financial management), helping village in managing cooperative, participates in preserving the environment, for example, go green university, hygiene river around university, no smoking area, recycle, reduction in the use of plastic bags, periodically hold treatment and free medical checks, provide legal advice and helped the poor to make latrines, water pumps, etc.

In addition, the university also can implement social responsibility in partnership with other institutions, for example, corporate positioning itself to assist in formulating and implementing CSR programs in accordance with its core business, helping the government to draft a CSR audit, even in terms of formulating the draft policy of tax incentives , certification or labeling for corporates who have to implement Corporate Social Responsibility, CSR training for auditors, incorporate Corporate Social Responsibility in the course curriculum, finding corporate scholarships for poor students but smart and talented, holding seminars on CSR and helping S1, S2, S3 student which is looking for data or information which will conduct research on CSR. Concepts used in this case is to help companies to plan for CSR, while at the same time being inaction university doing social responsibility.

In addition, the university also can implement social responsibility in partnership with other institutions, for example, corporate positioning itself to assist in formulating and implementing CSR programs in accordance with its core business, helping the government to draft a CSR audit, even in terms of formulating the draft policy of tax incentives , certification or labeling for corporates who have to implement Corporate Social Responsibility, CSR training for auditors, incorporate Corporate Social Responsibility in the course curriculum, finding corporate scholarships for poor students but smart and talented, holding seminars on CSR and helping S1, S2, S3 student which is looking for data or information which will conduct research on CSR. Concepts used in this case is to help companies to plan for CSR, while at the same time being inaction university doing social responsibility.

7. Conclusion

7. Conclusion

An organization, including university was established in general for a long period of time. The university will exist on a long time if it has a good image and reputation in the minds of stakeholders. One way to build the image and reputation of universities is through social responsibility. University social responsibility is not only limited to the internal parties (faculty, staff, students), but also to external parties (the environment, society, business/industry, local government). Implementation of university social responsibility can also collaborates with local governments and companies, both private companies and the State companies.

An organization, including university was established in general for a long period of time. The university will exist on a long time if it has a good image and reputation in the minds of stakeholders. One way to build the image and reputation of universities is through social responsibility. University social responsibility is not only limited to the internal parties (faculty, staff, students), but also to external parties (the environment, society, business/industry, local government). Implementation of university social responsibility can also collaborates with local governments and companies, both private companies and the State companies.

8. References

8. References

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Universitas Majalah

Widyantoro, Agus dan Subhan, M. Hadi 2009. Tanggung Jawab Sosial Institusi Perguruan Tinggi (Institution Social Responsibility) Sebagai Upaya Mewujudkan Sustainablity Development Bagi Masyarakat Lingkar Kampus. http:// repo.unair.ac.id/ data/richfiles.

Widyantoro, Agus dan Subhan, M. Hadi 2009. Tanggung Jawab Sosial Institusi Perguruan Tinggi (Institution Social Responsibility) Sebagai Upaya Mewujudkan Sustainablity Development Bagi Masyarakat Lingkar Kampus. http:// repo.unair.ac.id/ data/richfiles.

Author’s Profile

Author’s Profile

Dr. Subagyo is lecture in Economic Faculty of Universitas Nusantara PGRI Kediri. Besides teaching, also have other activities like active in giving bussiness consultation, technical assistance, training and mentoring Mikco, Small and Medium Enterprises (MSMeS), especially in East Java-Indonesia. Dr. Subagyo is a Director of Bussiness Development Services, an institution that provides business consulting services and research in the field of MSMeS development.

Dr. Subagyo is lecture in Economic Faculty of Universitas Nusantara PGRI Kediri. Besides teaching, also have other activities like active in giving bussiness consultation, technical assistance, training and mentoring Mikco, Small and Medium Enterprises (MSMeS), especially in East Java-Indonesia. Dr. Subagyo is a Director of Bussiness Development Services, an institution that provides business consulting services and research in the field of MSMeS development.

Dr. Sri Aliami is one of senior lecture in Economic Faculty of Universitas Nusantara PGRI Kediri. Besides teaching, also have other activities like active in giving training and mentoring Micro, Small and Medium Enterprises, especially in East Java-Indonesia.

Dr. Sri Aliami is one of senior lecture in Economic Faculty of Universitas Nusantara PGRI Kediri. Besides teaching, also have other activities like active in giving training and mentoring Micro, Small and Medium Enterprises, especially in East Java-Indonesia.

Dra. Diani Nurhajati, M.Pd is one of senior lecture in the English Education Departement, Education Faculty of Universitas Nusantara PGRI Kediri. Beside teaching, also have other activities in research education areas and trainer at in-service training for high school teachers.

Dra. Diani Nurhajati, M.Pd is one of senior lecture in the English Education Departement, Education Faculty of Universitas Nusantara PGRI Kediri. Beside teaching, also have other activities in research education areas and trainer at in-service training for high school teachers.

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Section 4

Section 4

Human Rights, Disabled and Women Empowerment

Human Rights, Disabled and Women Empowerment

Education and Social inclusion of People with Visual Impairment in the Study of Mathematical Functions

Education and Social inclusion of People with Visual Impairment in the Study of Mathematical Functions

Lorena C. León1 , and Luiz C. Martini 2

1

Lorena C. León1 , and Luiz C. Martini 2

1

Universidade Estadual de Campinas, [email protected] Universidade Estadual de Campinas, [email protected]

Universidade Estadual de Campinas, [email protected] Universidade Estadual de Campinas, [email protected]

2

2

Abstract

Abstract

The article addresses the inclusion of people with visual impairments, focused especially in teaching and learning mathematics. Innovative software that allows full accessibility to build mathematical formulas and print your curves shapes on a Braille printer was developed, providing a tactile visualization of waveform referred to mathematical function entered for analysis in order to the visually impaired person can build a mental vision of the waveform. The present research is part of a effort to develop software tools to support educations in related areas of mathematics, physics and chemical for people with total or partial visual impairment, and professors that works with this kind of people.

The article addresses the inclusion of people with visual impairments, focused especially in teaching and learning mathematics. Innovative software that allows full accessibility to build mathematical formulas and print your curves shapes on a Braille printer was developed, providing a tactile visualization of waveform referred to mathematical function entered for analysis in order to the visually impaired person can build a mental vision of the waveform. The present research is part of a effort to develop software tools to support educations in related areas of mathematics, physics and chemical for people with total or partial visual impairment, and professors that works with this kind of people.

Keywords: Accessibility, Braille, mathematical functions, tactile impression, visual impairment.

Keywords: Accessibility, Braille, mathematical functions, tactile impression, visual impairment.

1. Introduction

1. Introduction

The mathematics is a little difficult matter for people, thus, for people with visual impairment obviously is not an easy task by limiting the study options, learning and social inclusion. The greatest barrier to the study of mathematics is mentalizing abstract of concepts. People with partial or total blindness, usually have a great capacity for abstraction, but usually have great difficulty in learning mathematics, precisely because they lack alternative ways that allows them to assimilate the concepts underlying mathematical formulas (Iriarte, 2006). The constant tactile user interaction with the printed design in relief help recognize consciously and automatic mathematical functions developed by the user system, raising the motivation and creativity of the user for the design of other mathematical functions. The innovative tactile impression is a potential resource that enables the visual impairment people to glimpse an approximation of equality with people who can see and can understand and study other sciences that involve mathematics (Jackson, 2006), (Oouchi, 2004).

The mathematics is a little difficult matter for people, thus, for people with visual impairment obviously is not an easy task by limiting the study options, learning and social inclusion. The greatest barrier to the study of mathematics is mentalizing abstract of concepts. People with partial or total blindness, usually have a great capacity for abstraction, but usually have great difficulty in learning mathematics, precisely because they lack alternative ways that allows them to assimilate the concepts underlying mathematical formulas (Iriarte, 2006). The constant tactile user interaction with the printed design in relief help recognize consciously and automatic mathematical functions developed by the user system, raising the motivation and creativity of the user for the design of other mathematical functions. The innovative tactile impression is a potential resource that enables the visual impairment people to glimpse an approximation of equality with people who can see and can understand and study other sciences that involve mathematics (Jackson, 2006), (Oouchi, 2004).

Also another method that helps understanding the mathematical process is the combination of a text editor with a speech synthesizer that allows the user to hear what they produces in the text editor, this is a benefit for people with full visual impairment or partial as it helps interpret and understand content that was written in the text editor (Rosegrant, 2004). In general a binomial representation (meaning the simultaneous use of visual and auditory capacity) content improving processing speed and increasing memory recall.

Also another method that helps understanding the mathematical process is the combination of a text editor with a speech synthesizer that allows the user to hear what they produces in the text editor, this is a benefit for people with full visual impairment or partial as it helps interpret and understand content that was written in the text editor (Rosegrant, 2004). In general a binomial representation (meaning the simultaneous use of visual and auditory capacity) content improving processing speed and increasing memory recall.

To interpret the content of the text editor is used the write and read system for people with visual impairments known as Braille, it represents different characters using six raised dots arranged in two columns and enables the formation of 63 different symbols that are used in literary texts, beyond the mathematic symbolism in different languages (IBC, link).

To interpret the content of the text editor is used the write and read system for people with visual impairments known as Braille, it represents different characters using six raised dots arranged in two columns and enables the formation of 63 different symbols that are used in literary texts, beyond the mathematic symbolism in different languages (IBC, link).

2. MatGraf System Introduction for Mathematical Treatment with Tactile Visualization

2. MatGraf System Introduction for Mathematical Treatment with Tactile Visualization

The convergence between new technologies and education, forces to search for new teaching tools and learning alternatives that transform the educational environments in new accessibility concepts to school knowledge at all levels (Carvalho, 2001). This work has been developed to eliminate the communication barrier, increasing accessibility for integrate people with visual impairments in mathematics learning, as well contributing a breakthrough in computing and communication expanding the concept of exchange information between user and machine.

The convergence between new technologies and education, forces to search for new teaching tools and learning alternatives that transform the educational environments in new accessibility concepts to school knowledge at all levels (Carvalho, 2001). This work has been developed to eliminate the communication barrier, increasing accessibility for integrate people with visual impairments in mathematics learning, as well contributing a breakthrough in computing and communication expanding the concept of exchange information between user and machine.

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The research focuses on the mathematical treatment of functions and their graphical representations (algebraic, explicit, order, linear, quadratic, radical, logarithmic and trigonometric). The application, graphically interprets one or more mathematical functions entered by user, through a text editor and once validated, the data by the application, the user can print the chart to complete his studies of mathematics through a tactile representation.

The research focuses on the mathematical treatment of functions and their graphical representations (algebraic, explicit, order, linear, quadratic, radical, logarithmic and trigonometric). The application, graphically interprets one or more mathematical functions entered by user, through a text editor and once validated, the data by the application, the user can print the chart to complete his studies of mathematics through a tactile representation.

Notice that the application developed is fully accessible featuring, then the user with complete visual impairment can moves through the shortcut keys and the speech synthesize furthermore, the design, and program colors, allows the program can be used by people with partial visual impairments and sighted people. A general diagram of the system, is presented in Figure1.

Notice that the application developed is fully accessible featuring, then the user with complete visual impairment can moves through the shortcut keys and the speech synthesize furthermore, the design, and program colors, allows the program can be used by people with partial visual impairments and sighted people. A general diagram of the system, is presented in Figure1.

Figure 1. MatGraf System Components

Figure 1. MatGraf System Components

The MatGraf system begins communicating through speech synthesis, enabling thus the interaction with the system through sound messages that will guide the user from the beginning to the end of the mathematical treatment process. With the text editor, they can enter text, insert, edit, and delete mathematical functions. To improve the performance, when the user insert and draw a mathematical function, in the text editor were created some commands (reserved words) which are those that will perform tasks using the wizard. In the following list, we describe the commands with their respective facilities.

The MatGraf system begins communicating through speech synthesis, enabling thus the interaction with the system through sound messages that will guide the user from the beginning to the end of the mathematical treatment process. With the text editor, they can enter text, insert, edit, and delete mathematical functions. To improve the performance, when the user insert and draw a mathematical function, in the text editor were created some commands (reserved words) which are those that will perform tasks using the wizard. In the following list, we describe the commands with their respective facilities.



insert .- The command insert run the wizard to insert a new function in the text editor.



insert .- The command insert run the wizard to insert a new function in the text editor.

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resolve.- The command resolve run the wizard that displays the list of functions that have been inserted in the text editor, giving the user the option to select the function their want to solve.



resolve.- The command resolve run the wizard that displays the list of functions that have been inserted in the text editor, giving the user the option to select the function their want to solve.

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plot.- The command plot run the wizard program that displays the list of functions that have been resolved through the solve command, giving the user the option to select the function they want to draw.

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plot.- The command plot run the wizard program that displays the list of functions that have been resolved through the solve command, giving the user the option to select the function they want to draw.



edit.- The command edit run the wizard that displays the list of functions that have been inserted in the text editor, giving the user the option to select the function they want to edit.



edit.- The command edit run the wizard that displays the list of functions that have been inserted in the text editor, giving the user the option to select the function they want to edit.



delete.- The command delete run the wizard program that displays the list of functions that have been inserted in the text editor, giving the user the option to select the function they want to delete.



delete.- The command delete run the wizard program that displays the list of functions that have been inserted in the text editor, giving the user the option to select the function they want to delete.



clear.- The command clear run the wizard that prompts a user if is sure to delete the text editor of the content.



clear.- The command clear run the wizard that prompts a user if is sure to delete the text editor of the content.

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In the text editor if the user is familiar with the commands, then the user can include directly, writing the keyword + F4. If the user is not familiar with the commands, he can press the F6 hotkey, and then opens a wizard that will display the list of available commands in the system, so that the user can select the command that will be inserted into the editor text right after pressing the F4 key.

In the text editor if the user is familiar with the commands, then the user can include directly, writing the keyword + F4. If the user is not familiar with the commands, he can press the F6 hotkey, and then opens a wizard that will display the list of available commands in the system, so that the user can select the command that will be inserted into the editor text right after pressing the F4 key.

To continue with the process of designing the mathematical function, the user must first have entered the function in the text editor, second the user must solve the function you want to plot, and finally with the command plot the user determines that the selected function is transferred to the canvas. The system design area has handy features to users without visual impairments and users with partial visual impairment.

To continue with the process of designing the mathematical function, the user must first have entered the function in the text editor, second the user must solve the function you want to plot, and finally with the command plot the user determines that the selected function is transferred to the canvas. The system design area has handy features to users without visual impairments and users with partial visual impairment.

Complementing all of the mathematical treatment process functions and its graphical representation, the user through the Ctrl + P shortcut keys, activates a dialog window that allows intuitive interaction to facilitate the printing process. The system communicates with the Emprint SpotDot printer that prints in Braille format the text from the text editor or drawings activated in the program's workspace to a tactile display with the values and characteristics entered previously.

Complementing all of the mathematical treatment process functions and its graphical representation, the user through the Ctrl + P shortcut keys, activates a dialog window that allows intuitive interaction to facilitate the printing process. The system communicates with the Emprint SpotDot printer that prints in Braille format the text from the text editor or drawings activated in the program's workspace to a tactile display with the values and characteristics entered previously.

A classroom with visual impairment students, with teacher who has not received training to deal with such a situation, the feels powerless. Given this difficulty, there is a tool for the teacher to provide accessible material to their students while the teacher can get your own stuff without having much knowledge of Braille (Ferreira, 2002). The MatGraf system can print the content of the text editor and the graphic of the function without Braille format.

A classroom with visual impairment students, with teacher who has not received training to deal with such a situation, the feels powerless. Given this difficulty, there is a tool for the teacher to provide accessible material to their students while the teacher can get your own stuff without having much knowledge of Braille (Ferreira, 2002). The MatGraf system can print the content of the text editor and the graphic of the function without Braille format.

3. Method

3. Method

Mathematics is a science full with concepts and numerical, algebraic and geometric representations. These representations, most abstract, sometimes require visual contact to facilitate abstraction. This abstraction is possible even without eye contact, but you must use the appropriate methodology to assist the student to reach the concepts and understand the mathematical objects (Cerva, 2014). Sighted people can enter data via the keyboard, with this system; the user visual impaired can also enter data from the keyboard, turning this into a sound that returns the keyboard key being pressed, and provide a sound message that helps the user to interact with the computer and the system. This helps the user to know if they are writing right.

Mathematics is a science full with concepts and numerical, algebraic and geometric representations. These representations, most abstract, sometimes require visual contact to facilitate abstraction. This abstraction is possible even without eye contact, but you must use the appropriate methodology to assist the student to reach the concepts and understand the mathematical objects (Cerva, 2014). Sighted people can enter data via the keyboard, with this system; the user visual impaired can also enter data from the keyboard, turning this into a sound that returns the keyboard key being pressed, and provide a sound message that helps the user to interact with the computer and the system. This helps the user to know if they are writing right.

Text is linear in nature, while the mathematical functions are two-dimensional. What is being read in this text is a good example of this problem. In the texts we find many mathematical functions of illustrations, which for visual impairment people don't make sense, so it is unnecessary to repeat it for the student to know what it is. In contrast, move on to examine the following relatively simple function, see (1).

Text is linear in nature, while the mathematical functions are two-dimensional. What is being read in this text is a good example of this problem. In the texts we find many mathematical functions of illustrations, which for visual impairment people don't make sense, so it is unnecessary to repeat it for the student to know what it is. In contrast, move on to examine the following relatively simple function, see (1).

f  x   x 2  3x  2

(1)

For the user can write this mathematical function, it replaces the signs and mathematical symbols for words, that are written as listening, for example, the mathematical symbol  is replaced by the word pi. With this method, the user can enter the function, in the function insertion assistant without having to worry about the mathematical symbols. Therefore, the user can write the function in a linear representation that is suitable to reading for a user with visual disabilities (Arthur, 2012), see (2).

(x^2)+(3*x)+2

f  x   x 2  3x  2

(1)

For the user can write this mathematical function, it replaces the signs and mathematical symbols for words, that are written as listening, for example, the mathematical symbol  is replaced by the word pi. With this method, the user can enter the function, in the function insertion assistant without having to worry about the mathematical symbols. Therefore, the user can write the function in a linear representation that is suitable to reading for a user with visual disabilities (Arthur, 2012), see (2).

(x^2)+(3*x)+2

(2) The inserted function format improves the reading of the same, in the text editor, being read by the synthesizer as follows:

(2) The inserted function format improves the reading of the same, in the text editor, being read by the synthesizer as follows:

Open parenthesis x square plus close parenthesis, Open parenthesis three times x close parenthesis, plus two.

Open parenthesis x square plus close parenthesis, Open parenthesis three times x close parenthesis, plus two.

The speech synthesizer reads the fractions for the student, helping them in reading process. Note that the system reads the markings (special characters). The linear writing also makes easier the translation from

The speech synthesizer reads the fractions for the student, helping them in reading process. Note that the system reads the markings (special characters). The linear writing also makes easier the translation from

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characters of the function to Braille format. Finally the result of the mathematical content may be printed in Braille format. Sighted people can easily examine the graphical output of a sine function for example, but for students with visual impairment, this is not an easily achieved option. The tactile representation is a very useful solution, and graphs of mathematical functions are a key component to complement the mathematics education (Nemeth, 1972). The MatGraf supports algebraic, explicit, order, linear, quadratic, radical, logarithmic, and trigonometric functions; that can be printed in high relief. They are also added in Braille format the values of the axes and titles of different function, represented types of line and relief. The final goal here would be to provide the design of the graphical representation for function to be touched by the user.

characters of the function to Braille format. Finally the result of the mathematical content may be printed in Braille format. Sighted people can easily examine the graphical output of a sine function for example, but for students with visual impairment, this is not an easily achieved option. The tactile representation is a very useful solution, and graphs of mathematical functions are a key component to complement the mathematics education (Nemeth, 1972). The MatGraf supports algebraic, explicit, order, linear, quadratic, radical, logarithmic, and trigonometric functions; that can be printed in high relief. They are also added in Braille format the values of the axes and titles of different function, represented types of line and relief. The final goal here would be to provide the design of the graphical representation for function to be touched by the user.

4. Results

4. Results

The preliminary tests in this work were made using the Emprint SpotDot printer that lets you print Braille and ink, allowing access to the results of the mathematical treatment to people with visual impairment and sighted people. The text editor contents can be printed in Braille format, or paint in normal font, and the function design can be printed in varying degrees of relief and with a high resolution. The printer is preconfigured to work together with the application program developed in this research. The tests were conducted using paper white writing Braille in A4 format with 297 x 210 mm dimensions, while the selected font size is 29, according to the manufacturer's recommendations since the ideal measure for text reading Braille (Nemeth, 1972). Then presents the results obtained from the printing functions of the graphics.

The preliminary tests in this work were made using the Emprint SpotDot printer that lets you print Braille and ink, allowing access to the results of the mathematical treatment to people with visual impairment and sighted people. The text editor contents can be printed in Braille format, or paint in normal font, and the function design can be printed in varying degrees of relief and with a high resolution. The printer is preconfigured to work together with the application program developed in this research. The tests were conducted using paper white writing Braille in A4 format with 297 x 210 mm dimensions, while the selected font size is 29, according to the manufacturer's recommendations since the ideal measure for text reading Braille (Nemeth, 1972). Then presents the results obtained from the printing functions of the graphics.

4.1 Experimentation with the figures in the software developed application

4.1 Experimentation with the figures in the software developed application

Tests were carried out to visually impaired users and their teachers. The user can enter in one text editor or several functions given the value of their upper and lower limits besides the increase. The upper and lower limits inserted in the area define a partial substitute limit on the Cartesian plane so the function of the design is embedded within the margin of the sheet. The increment define the number of points according to the x-axis and defining the length of the line between point to point, so the smallest increment provides a larger number of plotted points and is observed a better definition of the function. In the Figure 2, is show a function with increment equal to 4 in the axis x. We can appreciate that the increment from point to point is greater. However the definition of the wave function is not well defined. In the Figure 3, is show a function with increment equal to 0.2. We can see that the length from point to point is smaller that in the Figure 2 and the wave function resolution is better.

Tests were carried out to visually impaired users and their teachers. The user can enter in one text editor or several functions given the value of their upper and lower limits besides the increase. The upper and lower limits inserted in the area define a partial substitute limit on the Cartesian plane so the function of the design is embedded within the margin of the sheet. The increment define the number of points according to the x-axis and defining the length of the line between point to point, so the smallest increment provides a larger number of plotted points and is observed a better definition of the function. In the Figure 2, is show a function with increment equal to 4 in the axis x. We can appreciate that the increment from point to point is greater. However the definition of the wave function is not well defined. In the Figure 3, is show a function with increment equal to 0.2. We can see that the length from point to point is smaller that in the Figure 2 and the wave function resolution is better.

2 Figure. 2. Design of the function: x  3x  2 , with increment equal to 4.

2 Figure. 2. Design of the function: x  3x  2 , with increment equal to 4.

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2 Figure. 3. Design of the function: x  3x  2 , with increment equal to 0.2.

2 Figure. 3. Design of the function: x  3x  2 , with increment equal to 0.2.

The same previously mentioned functions have been taken as an example for printing in Braille.

The same previously mentioned functions have been taken as an example for printing in Braille.

The graph generated is printed by the user through the proposed program application, the printed sheets were scanned and the result is shown in Figures 4 and 5. In the Figures can be seen the printed designs in relief

The graph generated is printed by the user through the proposed program application, the printed sheets were scanned and the result is shown in Figures 4 and 5. In the Figures can be seen the printed designs in relief

of mathematical function f x   x  3x  2 , in the Cartesian plane. Moreover, also shows the numeric information of x and y axes, as well as the names or labels and the title of the printed figure in mathematical Braille format of Portuguese completing the analysis for users with visual impairments, which in addition to interpret the function of dynamic may comprise additional information, simplifying the study of this type of mathematical representation. 2

of mathematical function f x   x  3x  2 , in the Cartesian plane. Moreover, also shows the numeric information of x and y axes, as well as the names or labels and the title of the printed figure in mathematical Braille format of Portuguese completing the analysis for users with visual impairments, which in addition to interpret the function of dynamic may comprise additional information, simplifying the study of this type of mathematical representation. 2

Figure 4 corresponds to the tactile impression whose limits range from (-10,10) through (0,10) in the xaxis, in the case of Figure 5. It can be seen that the length of the first function is higher in length to the second function due to the limits given in the first function are larger in relation to the second function, which causes a zoom effect in the case of Figure 5.

Figure 4 corresponds to the tactile impression whose limits range from (-10,10) through (0,10) in the xaxis, in the case of Figure 5. It can be seen that the length of the first function is higher in length to the second function due to the limits given in the first function are larger in relation to the second function, which causes a zoom effect in the case of Figure 5.

2 Figure. 4. Print embossed in Braile and description of the f(x) = x  3x  2 function, limits (-10,10).

2 Figure. 4. Print embossed in Braile and description of the f(x) = x  3x  2 function, limits (-10,10).

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Figure. 5. Print embossed in Braille and description of the f(x) = x 2  3x  2 function, limits (0,10).

Figure. 5. Print embossed in Braille and description of the f(x) = x 2  3x  2 function, limits (0,10).

4. Conclusions

4. Conclusions

An innovative tool was built, and yet not developed by other authors, which will allow the visual impairment to include the study of mathematics, allowing people with visual disabilities to attain knowledge and achieving an approximation of equality with the sighted people. Other tools surveyed in Brazil, none provides the mathematical tools available by MatGraf, nor tools that use Braille system and contribute to the visually impaired education, can not give total independence to user when you interact with the hardware, which implies that the user depends on a third party to move around in the system. It is possible through the application to evaluate and draw various types of mathematical functions given the configuration parameters to their upper limits, lower limits and increments, so it is easier to visual impairment to do several tests and get their own conclusions, which are the same as fundamental learning for the study of mathematics applicable to a wide variety of areas of knowledge.

An innovative tool was built, and yet not developed by other authors, which will allow the visual impairment to include the study of mathematics, allowing people with visual disabilities to attain knowledge and achieving an approximation of equality with the sighted people. Other tools surveyed in Brazil, none provides the mathematical tools available by MatGraf, nor tools that use Braille system and contribute to the visually impaired education, can not give total independence to user when you interact with the hardware, which implies that the user depends on a third party to move around in the system. It is possible through the application to evaluate and draw various types of mathematical functions given the configuration parameters to their upper limits, lower limits and increments, so it is easier to visual impairment to do several tests and get their own conclusions, which are the same as fundamental learning for the study of mathematics applicable to a wide variety of areas of knowledge.

The software contains accessible features that allow the visual impairment user to interact with the system autonomously through its shortcut keys. The speech synthesizer, while the design and application of colors help the user with certain visual disabilities, the software develop a simple and flexible way mathematical functions with high reliefs, as well as the description of the parameters that constitute them as numbering, naming the axes and chart title in Braille format.

The software contains accessible features that allow the visual impairment user to interact with the system autonomously through its shortcut keys. The speech synthesizer, while the design and application of colors help the user with certain visual disabilities, the software develop a simple and flexible way mathematical functions with high reliefs, as well as the description of the parameters that constitute them as numbering, naming the axes and chart title in Braille format.

Use the fingertips to the line reading function printed in relief by the user with a visual impairment, it is an affordable way to get a dissemination of information workspace, expanding their perception of physical form of the mathematical function. At the same time, all the graphic content is printed in ink with writing in common characters so that a sighted person who does not know Braille writing can monitor and interpret both the design of mathematical functions like text printing in Portuguese.

Use the fingertips to the line reading function printed in relief by the user with a visual impairment, it is an affordable way to get a dissemination of information workspace, expanding their perception of physical form of the mathematical function. At the same time, all the graphic content is printed in ink with writing in common characters so that a sighted person who does not know Braille writing can monitor and interpret both the design of mathematical functions like text printing in Portuguese.

5. References

5. References

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Iriarte, J & Jáñez, J. (2006). Evolution of new technologies in society. Madrid. ISBN: 84-484-0133-6. 2006,

Jackson, A. (2006). The World of Blind Mathematicians. Notices of the AMS, Vol 49, Michigan: No.10, Available on-line: http://www.ams.org/notices/200210/comm-morin.pdf.

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Oouchi, S. Sawada, M . Kaneko, T & Chida, T. (2004). A Survey on Making and Using Tactile Educational Materials in Schools for the Blind, Bulletin of National Institute of Special Needs Education, vol. 31, pp. 113-125.

Oouchi, S. Sawada, M . Kaneko, T & Chida, T. (2004). A Survey on Making and Using Tactile Educational Materials in Schools for the Blind, Bulletin of National Institute of Special Needs Education, vol. 31, pp. 113-125.

Instituto Benjamin Constant, The Braille system in Brazil, from http://www.ibc.gov.br/?itemid=10235

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Rosegrant, T. (2004). A Survey on Making and Using Tactile Educational Materials in Schools for the Bulletin of National Institute of Special Needs Education. vol. 31, pp. 113-125.

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Rosegrant, T. (2004). A Survey on Making and Using Tactile Educational Materials in Schools for the Bulletin of National Institute of Special Needs Education. vol. 31, pp. 113-125.

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ViewPlus Technologies, Inc, (2013). ViewPlus Emprint and Emprint SpotDot Ink Cartridge Instructions. Cornallis, Oregon, 2013.

ViewPlus Technologies, Inc, (2013). ViewPlus Emprint and Emprint SpotDot Ink Cartridge Instructions. Cornallis, Oregon, 2013.

Carvalho, J. (2001). Technological Solutions to Enable the Access of Visually Impaired to Distance Education in Higher Education, Sao-Paulo-Brazil.

Carvalho, J. (2001). Technological Solutions to Enable the Access of Visually Impaired to Distance Education in Higher Education, Sao-Paulo-Brazil.

Ferreira, A. Corrêa, E & Boron, F. (2002). The Mathematics Teaching for the Visually Impaired. Sao-Paulo - Brazil.

Ferreira, A. Corrêa, E & Boron, F. (2002). The Mathematics Teaching for the Visually Impaired. Sao-Paulo - Brazil.

Cerva, F. & Geller, M. (2012). Teaching Mathematics in city hall of Porto. Canoas-Brazil

Cerva, F. & Geller, M. (2012). Teaching Mathematics in city hall of Porto. Canoas-Brazil

Arthur, I. & Bledsoe, Ch. (2012). Information Technology Program. University of South Florida, Lakeland, USA.

Arthur, I. & Bledsoe, Ch. (2012). Information Technology Program. University of South Florida, Lakeland, USA.

American Association of workers for the blind. (1972). The Nemeth Braille Code for mathematics and science notation. Louisville, Kentucky: American Printing House For the Blind.

American Association of workers for the blind. (1972). The Nemeth Braille Code for mathematics and science notation. Louisville, Kentucky: American Printing House For the Blind.

Author’s Profile

Author’s Profile

Prof. Dr. Luiz Cersar Martini received his Post-doctorate at the Bell-Northern Research Montreal, Canada (1995). He is professor in the Universidade Estadual de Campinas (UNICAMP). He worked 40 years in the principal’s areas as coding, range compression, television, cosine transform and low rates. He has experience in Electrical Engineering research areas, in the recent years has been dedicated in Social inclusion projects for visually impaired people, their interest areas are: Developing software to visually impaired people in mathematics, physics, chemistry, graphically design and music. Projects with tactile features for object recognition. He is development teaching methods of visual and hearing impaired focus on basic literacy and going to higher level education.

Prof. Dr. Luiz Cersar Martini received his Post-doctorate at the Bell-Northern Research Montreal, Canada (1995). He is professor in the Universidade Estadual de Campinas (UNICAMP). He worked 40 years in the principal’s areas as coding, range compression, television, cosine transform and low rates. He has experience in Electrical Engineering research areas, in the recent years has been dedicated in Social inclusion projects for visually impaired people, their interest areas are: Developing software to visually impaired people in mathematics, physics, chemistry, graphically design and music. Projects with tactile features for object recognition. He is development teaching methods of visual and hearing impaired focus on basic literacy and going to higher level education.

Lorena León Quiñonez got her Bachelor degree in Engineering and Computer Science at the Universidad Técnica Particular de Loja (UTPL). She has experience in the area of Semantic Web and Knowledge Management. Along their time at the university, she worked as assistant in knowledge management department at UTPL, getting experience in developing institutional Web pages also developing projects to support educational portal webs. Nowadays, she is pursuing their Master's degree at the Faculty of Electrical Engineering and Computing at the Universidade Estadual de Campinas (UNICAMP), under the supervision of the Professor Dr. Luiz Cesar Martini in computing area, developing software for visually impaired people to work with mathematics.

Lorena León Quiñonez got her Bachelor degree in Engineering and Computer Science at the Universidad Técnica Particular de Loja (UTPL). She has experience in the area of Semantic Web and Knowledge Management. Along their time at the university, she worked as assistant in knowledge management department at UTPL, getting experience in developing institutional Web pages also developing projects to support educational portal webs. Nowadays, she is pursuing their Master's degree at the Faculty of Electrical Engineering and Computing at the Universidade Estadual de Campinas (UNICAMP), under the supervision of the Professor Dr. Luiz Cesar Martini in computing area, developing software for visually impaired people to work with mathematics.

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Mediatization of politics and gender in Pakistan Hassan Shehzad, 2Shafqat Munir Research Associate, Department of Media and Communication Studies, International Islamic University Islamabad, 2 Chairman, Journalists for Democracy and Human Rights (JDHR), Islamabad 1 [email protected]

Mediatization of politics and gender in Pakistan

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Hassan Shehzad, 2Shafqat Munir Research Associate, Department of Media and Communication Studies, International Islamic University Islamabad, 2 Chairman, Journalists for Democracy and Human Rights (JDHR), Islamabad 1 [email protected]

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Abstract

Abstract

This research focuses on how much and in which manner women politicians are presented on media and how do they feel about it? Theories of mediatization of politics and agenda setting were applied. Mediatization is identified as a threat to gender equality and quality politics as it gives rise to populism that clouds political process in Pakistan. Methods of content analysis, quick survey, intense interview and focus group were adopted. The decade from 2002 to 2012 witnessed birth of private electronic media and 33 percent quota for women in the parliament of Pakistan. These developments are cited as milestones achieved to acquire quality politics and gender equality but reality contradicts this claim. The research found that volume of presentation of women politicians was enhanced on media but it only served to endorse their stereotypical and marginalized role in society and politics and their majority is aware of it, too.

This research focuses on how much and in which manner women politicians are presented on media and how do they feel about it? Theories of mediatization of politics and agenda setting were applied. Mediatization is identified as a threat to gender equality and quality politics as it gives rise to populism that clouds political process in Pakistan. Methods of content analysis, quick survey, intense interview and focus group were adopted. The decade from 2002 to 2012 witnessed birth of private electronic media and 33 percent quota for women in the parliament of Pakistan. These developments are cited as milestones achieved to acquire quality politics and gender equality but reality contradicts this claim. The research found that volume of presentation of women politicians was enhanced on media but it only served to endorse their stereotypical and marginalized role in society and politics and their majority is aware of it, too.

Keywords: Media logic, political logic, democracy, mediatization, populism

Keywords: Media logic, political logic, democracy, mediatization, populism

1. Introduction

1. Introduction

Jaffrelot (2000) mentioned Pakistan had dictatorship four times since 1947 and its policies remained highly reactionary, which gives credence to the assertion that media either was not let of did not play the role of watchdog it was otherwise to play (Iqbal, 2012). This instability led to the country‟s dismemberment in 1971 when East Pakistan became Bangladesh (Lamb, 1991). Iqbal (2012a) reports stark violations of freedom of press and the right to know in eras of dictators, not leas Ziaul Haq.

Jaffrelot (2000) mentioned Pakistan had dictatorship four times since 1947 and its policies remained highly reactionary, which gives credence to the assertion that media either was not let of did not play the role of watchdog it was otherwise to play (Iqbal, 2012). This instability led to the country‟s dismemberment in 1971 when East Pakistan became Bangladesh (Lamb, 1991). Iqbal (2012a) reports stark violations of freedom of press and the right to know in eras of dictators, not leas Ziaul Haq.

In early 1970‟s, Zia brought Jihandis from Gulf States to Pakistan to fight US‟s war against Russia (Jaffrelot, 2000a; Bhutto, 2008). It was state-sponsored terrorism (Roelle, 2010). The jihadists, charged ideologically, believed they can establish Islamic caliphate and subdue the world to it (Musharraf, 2006). The Supreme Court of Pakistan has been told that about 50,000 Pakistanis have been killed in war-generated activity since 2001 (TET, 2013) and two successive governments have been brought to their knees to hold conferences of all political parties for talking to terrorists (Dawn, 2013). It shows that a generation of Pakistanis was fed war narrative on mainstream media; another feeds this narrative to new media and this generation could be called “digital” (Buckingham, (2014). This digital generation, defined by war and violence, which are different forms of trauma Edmunds and Turner (2002), has mainstream media that thrives on controversies, simplification of complex issues and populism (The News, 2014).

In early 1970‟s, Zia brought Jihandis from Gulf States to Pakistan to fight US‟s war against Russia (Jaffrelot, 2000a; Bhutto, 2008). It was state-sponsored terrorism (Roelle, 2010). The jihadists, charged ideologically, believed they can establish Islamic caliphate and subdue the world to it (Musharraf, 2006). The Supreme Court of Pakistan has been told that about 50,000 Pakistanis have been killed in war-generated activity since 2001 (TET, 2013) and two successive governments have been brought to their knees to hold conferences of all political parties for talking to terrorists (Dawn, 2013). It shows that a generation of Pakistanis was fed war narrative on mainstream media; another feeds this narrative to new media and this generation could be called “digital” (Buckingham, (2014). This digital generation, defined by war and violence, which are different forms of trauma Edmunds and Turner (2002), has mainstream media that thrives on controversies, simplification of complex issues and populism (The News, 2014).

This war generation, like Herzog‟s listeners of operas on radio, is “disempowered” audience who are fed false and harmful satisfactions when they watch women politicians belittled and sidelined on electronic media. Their right to know is breached (Niazi, 1994; Iqbal, 2011b). Puritanical elements stifle informed debate on media (Daily Times, 2014). In such a scenario, voices for gender equality and quality politics find a way in social media but influenced by radical ideology, the state stands against liberal speech on Internet (Dawn, 2014). At the same time, militants‟ media has flourished with a “message of “Jihad” against ..., mainly the West” (PIPS, 2010). And according to this message, women are not welcome in politics. Two-time and the only female prime minister, Benazir Bhutto, faced this militant threat all along and now his assassins have confessed to getting education from a seminary (Dawn, 2014; The News, 2015; ETN, 2015) highlighting the dangers for women politicians. This situation necessitates opening of spectrum of choice of media content for the audience so that they are not get carried away by a violent narrative.

This war generation, like Herzog‟s listeners of operas on radio, is “disempowered” audience who are fed false and harmful satisfactions when they watch women politicians belittled and sidelined on electronic media. Their right to know is breached (Niazi, 1994; Iqbal, 2011b). Puritanical elements stifle informed debate on media (Daily Times, 2014). In such a scenario, voices for gender equality and quality politics find a way in social media but influenced by radical ideology, the state stands against liberal speech on Internet (Dawn, 2014). At the same time, militants‟ media has flourished with a “message of “Jihad” against ..., mainly the West” (PIPS, 2010). And according to this message, women are not welcome in politics. Two-time and the only female prime minister, Benazir Bhutto, faced this militant threat all along and now his assassins have confessed to getting education from a seminary (Dawn, 2014; The News, 2015; ETN, 2015) highlighting the dangers for women politicians. This situation necessitates opening of spectrum of choice of media content for the audience so that they are not get carried away by a violent narrative.

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Unfortunately, it is not what Founder of Pakistan, Quaid-e-Azam Muhammad Ali Jinnah had ever dreamed as he always encouraged women to play their part in politics of the country but media and society at large could not carry forward the message compromising quality of democracy (Herald, 2007; The News, 2009). The intensity of suppression of women increased manifold in Zia era and impacts of this era still refuse to die down (Yousaf, 2011; Paracha, 2010). There is a debate in society about Zia‟s agenda and the vision of the founder of the nation, Muhammad Ali Jinnah. Both actually contradict each other (Dawn, 2012).

Unfortunately, it is not what Founder of Pakistan, Quaid-e-Azam Muhammad Ali Jinnah had ever dreamed as he always encouraged women to play their part in politics of the country but media and society at large could not carry forward the message compromising quality of democracy (Herald, 2007; The News, 2009). The intensity of suppression of women increased manifold in Zia era and impacts of this era still refuse to die down (Yousaf, 2011; Paracha, 2010). There is a debate in society about Zia‟s agenda and the vision of the founder of the nation, Muhammad Ali Jinnah. Both actually contradict each other (Dawn, 2012).

Misrepresentation of women on media fans sensationalism and yellow journalism on the one hand. On the other, it hinders media from keeping its audience informed of the latest developments changing their political choices that are not then based on informed decisions. This dangerous trend is contrary to the environment needed for growth of democracy (Dahl, 1989). For political parties and personalities, media is a „forum‟ to present their ideologies enabling the masses to hold the corrupt accountable on the basis of the information they are given. Hence, the importance of media in a democratic set-up is increased manifold (Ward, 2004). Cook (1999) went one step further to state that only conveying the messages to the masses is not enough for media channels when it comes to politics but it is also imperative for it to start a healthy debate on different issues related to politics in such a way that all stakeholders (women politicians being a major stakeholder) have an equal opportunity to access the people. Taylor (1992) is justified in saying it is the expression of free will of the masses that makes elections an integral part of a democratic system but then how a question of free will can arise when one of the main stockholders – women politicians – are handicapped in the media competition all along.

Misrepresentation of women on media fans sensationalism and yellow journalism on the one hand. On the other, it hinders media from keeping its audience informed of the latest developments changing their political choices that are not then based on informed decisions. This dangerous trend is contrary to the environment needed for growth of democracy (Dahl, 1989). For political parties and personalities, media is a „forum‟ to present their ideologies enabling the masses to hold the corrupt accountable on the basis of the information they are given. Hence, the importance of media in a democratic set-up is increased manifold (Ward, 2004). Cook (1999) went one step further to state that only conveying the messages to the masses is not enough for media channels when it comes to politics but it is also imperative for it to start a healthy debate on different issues related to politics in such a way that all stakeholders (women politicians being a major stakeholder) have an equal opportunity to access the people. Taylor (1992) is justified in saying it is the expression of free will of the masses that makes elections an integral part of a democratic system but then how a question of free will can arise when one of the main stockholders – women politicians – are handicapped in the media competition all along.

Less and less women are coming up on the parliamentary canvas and media cannot distance itself from this phenomenon saying that it is verdict of the people. Election is not only about putting some politicians in or out but at the same time, it also reflects the state of mind of the masses and social values, the formation of which is a job of media. Media is selective and shows us a few faces repeatedly influencing „voting patterns‟ and resulting in coming to power of these faces again and again (Harrop & Miller, 1987). While discussing influence of media in shaping social behavior, researchers nowadays take into consideration what Lazarsfeld and his colleagues (1948) said, „Media could influence the masses only at a limited scale.‟ But this may not be a case in Pakistan at the moment where media has recently been expanded and has acquired a dominant space in society. Further, copious studies found that the effects of media on society are anything but limited (Blumler & McLeod, 1974; Ranny, 1983; McLeod & Mcdonald, 1985; Simon, 2000).

Less and less women are coming up on the parliamentary canvas and media cannot distance itself from this phenomenon saying that it is verdict of the people. Election is not only about putting some politicians in or out but at the same time, it also reflects the state of mind of the masses and social values, the formation of which is a job of media. Media is selective and shows us a few faces repeatedly influencing „voting patterns‟ and resulting in coming to power of these faces again and again (Harrop & Miller, 1987). While discussing influence of media in shaping social behavior, researchers nowadays take into consideration what Lazarsfeld and his colleagues (1948) said, „Media could influence the masses only at a limited scale.‟ But this may not be a case in Pakistan at the moment where media has recently been expanded and has acquired a dominant space in society. Further, copious studies found that the effects of media on society are anything but limited (Blumler & McLeod, 1974; Ranny, 1983; McLeod & Mcdonald, 1985; Simon, 2000).

Media makes some issues part of its agenda and that agenda subsequently becomes agenda of public discourse which may be against or for a certain issue projected by media but their discourse will revolve around it (McCombs & Shaw, 1972). This study also explores this very theory in perspective of presentation of women politicians on media and public perception about them. The issues that are projected more on media acquire more space in public discourse, discovered many researches over years, substantiating the validity of agenda setting theory (Funkhouser, 1973; MacKuen, 1981; McCombs, 1977; Tipton, Haney, & Basehart, 1975; McLeod, & Byrnes, 1974; Iyengar & Kinder, 1987).

Media makes some issues part of its agenda and that agenda subsequently becomes agenda of public discourse which may be against or for a certain issue projected by media but their discourse will revolve around it (McCombs & Shaw, 1972). This study also explores this very theory in perspective of presentation of women politicians on media and public perception about them. The issues that are projected more on media acquire more space in public discourse, discovered many researches over years, substantiating the validity of agenda setting theory (Funkhouser, 1973; MacKuen, 1981; McCombs, 1977; Tipton, Haney, & Basehart, 1975; McLeod, & Byrnes, 1974; Iyengar & Kinder, 1987).

Kahn and Goldenberg (1991) argue that since the masses look at media for information about political personalities to make up their minds about their future choices, media has the power to tilt their opinion either way – against or for gender biases. But media uses its power to attract the attention of the masses towards „the looks‟ and „domestic lives‟ of women politicians more than what they have in store for the betterment of society (Millar, 1996). Scherer (1995) conducted a study to explore the influence of media on the masses when they go to polls in 12 European Union states and concluded that different media channels as well as face-to-face communication influence different people.

Kahn and Goldenberg (1991) argue that since the masses look at media for information about political personalities to make up their minds about their future choices, media has the power to tilt their opinion either way – against or for gender biases. But media uses its power to attract the attention of the masses towards „the looks‟ and „domestic lives‟ of women politicians more than what they have in store for the betterment of society (Millar, 1996). Scherer (1995) conducted a study to explore the influence of media on the masses when they go to polls in 12 European Union states and concluded that different media channels as well as face-to-face communication influence different people.

Hendriks, Vettehen, Hagemann, & Snippenburg (2004) found that in the Netherlands, the more the masses consume media content, the more they become aware of political issues. In the light of the investigations of Gunther & Mughan (2000), politicians can increase their influence on the masses if they hit the media of choice of their voters. Media puts the feminine attributes over and above political insight and policy-making experience of women, giving their male competitors an edge on them in public discourse (Kahn, 1992).

Hendriks, Vettehen, Hagemann, & Snippenburg (2004) found that in the Netherlands, the more the masses consume media content, the more they become aware of political issues. In the light of the investigations of Gunther & Mughan (2000), politicians can increase their influence on the masses if they hit the media of choice of their voters. Media puts the feminine attributes over and above political insight and policy-making experience of women, giving their male competitors an edge on them in public discourse (Kahn, 1992).

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Media doesn‟t do it for nothing but it has „power elites‟ to serve, who want edge out their competitors (including women politicians) to grab power but when media does it, it loses the range of its influence on society (Herman and Chomsky, 1988). It is not only Pakistan‟s novice media that is suffering from this credibility deficit because it is not presenting a true picture of facts to society but media of the developed countries is also facing this „major issue‟ of „its declining credibility with a public that increasingly is cynical toward institutions of all kinds and blames the media for many defects…‟ (Cappella & Jamieson, 1997; Dogan, 1997; Giddens, 1999; Goldfarb, 1991; Norris, 1999; Patterson, 1993).

Media doesn‟t do it for nothing but it has „power elites‟ to serve, who want edge out their competitors (including women politicians) to grab power but when media does it, it loses the range of its influence on society (Herman and Chomsky, 1988). It is not only Pakistan‟s novice media that is suffering from this credibility deficit because it is not presenting a true picture of facts to society but media of the developed countries is also facing this „major issue‟ of „its declining credibility with a public that increasingly is cynical toward institutions of all kinds and blames the media for many defects…‟ (Cappella & Jamieson, 1997; Dogan, 1997; Giddens, 1999; Goldfarb, 1991; Norris, 1999; Patterson, 1993).

One of the reasons for the masses to go to media for political information is their taste for the „stylistic dramatization‟ that OP-ED pieces satiate (Nimmo and Combs, 1992). Though all kinds of media are found wanting, TV and newspapers play a prominent role in keeping the masses abreast of politics (Popkin, 1991). Heated political debates in TV talk shows are gaining popularity but OP-ED pieces of newspaper still have an edge on TV (Vettehen et al., 2004). This is where, a civil society activist based in Lahore told us in an interview, that woman politicians are ignored. “I don‟t see enough OP-ED pieces on women politicians in print media,” she observed. The perception among the masses that politicians are a failure, politics is about corruption and media nurtures cronyism leads the society towards cynicism (Cappella & Jamieson, 1996). The lack of credibility and cynicism serve to weaken the link between media content and political support of masses (Newhagen, 1994; Moy & Scheufele, 2000).

One of the reasons for the masses to go to media for political information is their taste for the „stylistic dramatization‟ that OP-ED pieces satiate (Nimmo and Combs, 1992). Though all kinds of media are found wanting, TV and newspapers play a prominent role in keeping the masses abreast of politics (Popkin, 1991). Heated political debates in TV talk shows are gaining popularity but OP-ED pieces of newspaper still have an edge on TV (Vettehen et al., 2004). This is where, a civil society activist based in Lahore told us in an interview, that woman politicians are ignored. “I don‟t see enough OP-ED pieces on women politicians in print media,” she observed. The perception among the masses that politicians are a failure, politics is about corruption and media nurtures cronyism leads the society towards cynicism (Cappella & Jamieson, 1996). The lack of credibility and cynicism serve to weaken the link between media content and political support of masses (Newhagen, 1994; Moy & Scheufele, 2000).

If we look into the history, we see that the confidence that Quaid-e-Azam Muhammad Ali Jinnah gave to and his sister enabled her to stand against Pakistan‟s first dictator Ayub Khan and „[H]er appeal went directly to the hearts of the people as she fiercely attacked the man who had suppressed the freedoms of speech and expression‟ (Mazari, 2006). Mazari‟s version shows the key role that women politicians play to wrestle people‟s right to freedom of speech and expression out from dictators. Ayub Khan‟s spin doctors had not spared a moment to outshine Fatima Jinnah on a controlled press that the country had at that time (Ziring, 2010). Though with the help of excessive use of power, Ayub succeeded in defeating her in 1965 elections but her struggle left the dictator „weakened” (Jafferlot, 2006).

If we look into the history, we see that the confidence that Quaid-e-Azam Muhammad Ali Jinnah gave to and his sister enabled her to stand against Pakistan‟s first dictator Ayub Khan and „[H]er appeal went directly to the hearts of the people as she fiercely attacked the man who had suppressed the freedoms of speech and expression‟ (Mazari, 2006). Mazari‟s version shows the key role that women politicians play to wrestle people‟s right to freedom of speech and expression out from dictators. Ayub Khan‟s spin doctors had not spared a moment to outshine Fatima Jinnah on a controlled press that the country had at that time (Ziring, 2010). Though with the help of excessive use of power, Ayub succeeded in defeating her in 1965 elections but her struggle left the dictator „weakened” (Jafferlot, 2006).

In addition to Fatima Jinnah, women politicians told us in interviews that Benazir Bhutto is an ideal for them to follow across party lines as she rose to the highest legislative office of the country (the office of the prime minister) twice despite all odds. At the start of her career, the youngest ever prime minister of the country – Benazir Bhutto suffered highly indecent propaganda tactics (Lamb, 1991). The army generals showered leaflets defaming her by projecting her feminine attributes among rural populations across the country and this technique of leaflets, according to Defleur & Larsen (1958) is instrumental in creating rumors.

In addition to Fatima Jinnah, women politicians told us in interviews that Benazir Bhutto is an ideal for them to follow across party lines as she rose to the highest legislative office of the country (the office of the prime minister) twice despite all odds. At the start of her career, the youngest ever prime minister of the country – Benazir Bhutto suffered highly indecent propaganda tactics (Lamb, 1991). The army generals showered leaflets defaming her by projecting her feminine attributes among rural populations across the country and this technique of leaflets, according to Defleur & Larsen (1958) is instrumental in creating rumors.

Even her pregnancies became a „topic of intense political discussion from military headquarters to editorial boards‟. Nonetheless, she not only won the elections after delivering her first baby, Bilawal, as she named her, but gave birth to another baby while in office. “That is one less glass ceiling for women Prime Minister in the future to have to break,” she wrote in her autobiography (1988). Looking at the presentation of women, packed in taboos and stereotypes, on media, Shrinvastana (1989) is justified in saying that media is dominated by male characters. This male dominance is leading to male chauvinism in the society pressing on the need for media to become more „responsible‟ (Konach & Rosenstiel, 2007).

Even her pregnancies became a „topic of intense political discussion from military headquarters to editorial boards‟. Nonetheless, she not only won the elections after delivering her first baby, Bilawal, as she named her, but gave birth to another baby while in office. “That is one less glass ceiling for women Prime Minister in the future to have to break,” she wrote in her autobiography (1988). Looking at the presentation of women, packed in taboos and stereotypes, on media, Shrinvastana (1989) is justified in saying that media is dominated by male characters. This male dominance is leading to male chauvinism in the society pressing on the need for media to become more „responsible‟ (Konach & Rosenstiel, 2007).

Spring (1993) said that the media „missed the point‟ when it tries to put only a few elected women in the limelight, ignoring the fact that their presence in the parliament is result of a long-fought battle for „political power on the part of women‟. Women politicians not only need voter support but also ample media coverage to dispel the impression that they are non-electable commodity. Media should not divide domestic and international issues into female and male agenda, respectively, restricting the options of women to speak on national security and foreign policy (Scanty Coverage, 1992). Often, media gives women negative coverage that belittles them in public perception when it comes to politics (Aubin, Haak & Mangini, 2005). Demographic patterns of developed countries like the US show that women outnumber men a little but the breakdown of their parliamentarians does not reflect these patterns, which is illogical (Millar, 2001).

Spring (1993) said that the media „missed the point‟ when it tries to put only a few elected women in the limelight, ignoring the fact that their presence in the parliament is result of a long-fought battle for „political power on the part of women‟. Women politicians not only need voter support but also ample media coverage to dispel the impression that they are non-electable commodity. Media should not divide domestic and international issues into female and male agenda, respectively, restricting the options of women to speak on national security and foreign policy (Scanty Coverage, 1992). Often, media gives women negative coverage that belittles them in public perception when it comes to politics (Aubin, Haak & Mangini, 2005). Demographic patterns of developed countries like the US show that women outnumber men a little but the breakdown of their parliamentarians does not reflect these patterns, which is illogical (Millar, 2001).

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In the first place, women have a lack of resources to run for elections and then they are subjected to gender stereotypes by media, compounding the complexity of situation (Kahn & Goldenberg, 1991). Stereotyping and gender biases by mediamen put women politicians in a different shade than men, which is unfavorable (Millar, 1996). Larson (2001) thinks media is supposed to educate the masses about compatibility of election candidates with the system, regardless of their gender, but it presses the gender attributes in such a manner that women have disadvantage. It is unfair that media praises women on the basis of the dresses they may put on and praises men on the basis of the issues they may raise as part of their political agenda (Kahn & Goldenberg, 1991). Another dangerous trend that media has adopted is that it has turned women politicians into stuff for style pages instead of the sections dedicated for real politics and policy matters (Norris, 1997).

In the first place, women have a lack of resources to run for elections and then they are subjected to gender stereotypes by media, compounding the complexity of situation (Kahn & Goldenberg, 1991). Stereotyping and gender biases by mediamen put women politicians in a different shade than men, which is unfavorable (Millar, 1996). Larson (2001) thinks media is supposed to educate the masses about compatibility of election candidates with the system, regardless of their gender, but it presses the gender attributes in such a manner that women have disadvantage. It is unfair that media praises women on the basis of the dresses they may put on and praises men on the basis of the issues they may raise as part of their political agenda (Kahn & Goldenberg, 1991). Another dangerous trend that media has adopted is that it has turned women politicians into stuff for style pages instead of the sections dedicated for real politics and policy matters (Norris, 1997).

Sometimes, media puts domestic issues and certain traits like being emotional, weak and noncompetitive on women politicians like a label, creating a „misleading impression‟ about them (Kelly & Fisher, 1993). On the basis of findings of Iyengar and Kinder (1987), we are justified in saying that if our media had given women the space they deserve, opinion of the masses would have been primed about women politicians and their performance would have been assessed without prejudices and gender biases.

Sometimes, media puts domestic issues and certain traits like being emotional, weak and noncompetitive on women politicians like a label, creating a „misleading impression‟ about them (Kelly & Fisher, 1993). On the basis of findings of Iyengar and Kinder (1987), we are justified in saying that if our media had given women the space they deserve, opinion of the masses would have been primed about women politicians and their performance would have been assessed without prejudices and gender biases.

On countless occasions, media persons said that they show the masses what they want to see but this simplistic statement does not hold ground since media present to the masses an interpretation of politics in the form of news stories and opinions that influence public choice of politicians (Gerstle et al., 1991).

On countless occasions, media persons said that they show the masses what they want to see but this simplistic statement does not hold ground since media present to the masses an interpretation of politics in the form of news stories and opinions that influence public choice of politicians (Gerstle et al., 1991).

1.1. Problem Statement

1.1. Problem Statement

It has been made clear how media has generated stereotypes about women politicians in the society. These stereotypes or negative perceptions about women politicians reshape lifestyle of not only the masses but also the women who begin to doubt their abilities because of sheer lack of acceptance for their talent. Things began to change in Musharraf era as women‟s status in politics seemed to have elevated with greater number of women in local governments and in provincial and national assemblies. Similarly, media landscape opened up with permission for entrepreneurs to set up electronic media channels in 2002 but because of teething problems, certain societal sanctions (taboos and tradition) and regulatory issues, women remained on the peripheries. In addition, most women parliamentarians in Musharraf‟s regime were technocrats lacking sway on the masses. In 2008, a new political system was put in place. With the new system came a select group of women politicians who occupied the media space fully. This group represents almost all political parties. Prominence of members of this group in all kinds of debates created a monotonous environment but these trends became popular on media, a manifestation of the process of mediatization of politics and gender in Pakistan.

It has been made clear how media has generated stereotypes about women politicians in the society. These stereotypes or negative perceptions about women politicians reshape lifestyle of not only the masses but also the women who begin to doubt their abilities because of sheer lack of acceptance for their talent. Things began to change in Musharraf era as women‟s status in politics seemed to have elevated with greater number of women in local governments and in provincial and national assemblies. Similarly, media landscape opened up with permission for entrepreneurs to set up electronic media channels in 2002 but because of teething problems, certain societal sanctions (taboos and tradition) and regulatory issues, women remained on the peripheries. In addition, most women parliamentarians in Musharraf‟s regime were technocrats lacking sway on the masses. In 2008, a new political system was put in place. With the new system came a select group of women politicians who occupied the media space fully. This group represents almost all political parties. Prominence of members of this group in all kinds of debates created a monotonous environment but these trends became popular on media, a manifestation of the process of mediatization of politics and gender in Pakistan.

Studies have proved that electronic media is presenting more women politicians than print media. It is also believed that women politician‟s presentation is in a more acceptable manner on electronic media than print media. Is, or can, media serve as a bridge to transfer the status of women politicians that was elevated in Musharraf era to society so that quality of politics is not compromised and gender barriers brought down? It is the question this study attempts to answer. This goal can only be achieved by acceptance of women politicians in the society as political leaders and for this acceptance, change in public perception is the key that media holds. The study included suggestions and findings to fix this problem. Women politicians in the province of Punjab, hailing from various political parties, have been interviewed intensively so as to get first hand information of how media covers their stories and gives them space. The study analyses how media sees participation of women in politics in the province.

Studies have proved that electronic media is presenting more women politicians than print media. It is also believed that women politician‟s presentation is in a more acceptable manner on electronic media than print media. Is, or can, media serve as a bridge to transfer the status of women politicians that was elevated in Musharraf era to society so that quality of politics is not compromised and gender barriers brought down? It is the question this study attempts to answer. This goal can only be achieved by acceptance of women politicians in the society as political leaders and for this acceptance, change in public perception is the key that media holds. The study included suggestions and findings to fix this problem. Women politicians in the province of Punjab, hailing from various political parties, have been interviewed intensively so as to get first hand information of how media covers their stories and gives them space. The study analyses how media sees participation of women in politics in the province.

1.2. Rationale and Scope

1.2. Rationale and Scope

The study on media analysis of women‟s political participation provides a thought provoking policy position that the frequency of coverage of women politicians increased after 2008 (during the democratic government led by the PPP and the coalition partners) but this increase could not be translated into acceptance of women politicians in society because they are put in a negative light on media. An extensive literature review sets the scene for this analysis and provided strong base for discussions and findings in this study.

The study on media analysis of women‟s political participation provides a thought provoking policy position that the frequency of coverage of women politicians increased after 2008 (during the democratic government led by the PPP and the coalition partners) but this increase could not be translated into acceptance of women politicians in society because they are put in a negative light on media. An extensive literature review sets the scene for this analysis and provided strong base for discussions and findings in this study.

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The scoping study provides an assessment of media spaces available and how these spaces are being utilized for highlighting women political participation. We analyzed media coverage, perceptions, threats and opportunities for women political participation. The scoping study is not just a piece of smart research rather a baseline study that can set a new trend in further media research in Pakistan on the subject of media and women in politics. The study entails policy messages in the finding and recommendations chapter. These messages, findings and recommendations may be used for raising voice for women political participation at the higher decision making levels within party and in the government and in opposition. The study provides an opportunity to media professional as well to review their current coverage pattern for women politicians.

The scoping study provides an assessment of media spaces available and how these spaces are being utilized for highlighting women political participation. We analyzed media coverage, perceptions, threats and opportunities for women political participation. The scoping study is not just a piece of smart research rather a baseline study that can set a new trend in further media research in Pakistan on the subject of media and women in politics. The study entails policy messages in the finding and recommendations chapter. These messages, findings and recommendations may be used for raising voice for women political participation at the higher decision making levels within party and in the government and in opposition. The study provides an opportunity to media professional as well to review their current coverage pattern for women politicians.

As required by the objectives of this research, the paper analyses portrayal in the media (all media outlets i.e. newspapers, social media, television, radio etc.) of women active in politics and women‟s participation in politics over the last decade. It analyses messages (positive, negative, threatening and glamourous) relating to political participation of women making a comparison of media messages towards male vs. female participants in politics. The study further discusses drivers of change such as structural, institutional and agent-based factors and analyses as to how media-led messages change environment for women‟s participation (e.g. pressures on women, formal and informal processes through which women rise in political roles, local area acceptability about women‟s role).

As required by the objectives of this research, the paper analyses portrayal in the media (all media outlets i.e. newspapers, social media, television, radio etc.) of women active in politics and women‟s participation in politics over the last decade. It analyses messages (positive, negative, threatening and glamourous) relating to political participation of women making a comparison of media messages towards male vs. female participants in politics. The study further discusses drivers of change such as structural, institutional and agent-based factors and analyses as to how media-led messages change environment for women‟s participation (e.g. pressures on women, formal and informal processes through which women rise in political roles, local area acceptability about women‟s role).

2. Hypotheses

2. Hypotheses

The following three hypotheses, set in place, have been tested in this study in the discussion parts.

The following three hypotheses, set in place, have been tested in this study in the discussion parts.

Alternate Hypothesis 1. Media began to give women politicians more space after Musharraf regime (2008).

Alternate Hypothesis 1. Media began to give women politicians more space after Musharraf regime (2008).

Null Hypothesis 1. Media did not begin to give women politicians more spare after Musharraf regime (2008).

Null Hypothesis 1. Media did not begin to give women politicians more spare after Musharraf regime (2008).

Alternate Hypothesis 2. Increase in coverage of women politicians on media has changed public perception about their role in politics in an encouraging manner.

Alternate Hypothesis 2. Increase in coverage of women politicians on media has changed public perception about their role in politics in an encouraging manner.

Null Hypothesis 2. Increase in coverage of women politicians on media has not changed public perception about their role in politics in an encouraging manner.

Null Hypothesis 2. Increase in coverage of women politicians on media has not changed public perception about their role in politics in an encouraging manner.

Alternate Hypothesis 3. When projected in a negative light, women are not taken by society as serious political players.

Alternate Hypothesis 3. When projected in a negative light, women are not taken by society as serious political players.

Null Hypothesis 3. When projected in a negative light, women are taken by society as serious political players.

Null Hypothesis 3. When projected in a negative light, women are taken by society as serious political players.



Two main theories were applied on the research: 1. Mediatization of politics 2. Agenda Setting

Two main theories were applied on the research: 1. Mediatization of politics 2. Agenda Setting

Mediatization of politics: Cohen, Tsfati, and Sheafer (2008) found that politicians presume that media has influence not only on the society but also their peers. They found through an experiment that politicians give importance to the issue they think presume are going to grab space on media even though they have less value for social welfare and ignore the issues that have more value for social welfare because they presume that they may not be hot on media. They concluded “the influence of the presumed media influence” directs energies of the politicians towards what can be covered by media even at the cost of what they are meant to do – legislation. Lundby (2009) identified this process as mediatisation of politics and went on to assert that it now governs the theories of agenda setting. Kriesi, Lavenex, Esser, Matthes, Buhlmann & Bochsler (2009), mention that mediatisation of politics clouds the concepts of decision making due to populism but they stopped short of offering a theory of mediatisation. Strömbäck (2008) identifies it as a four-phased process culminating into

Mediatization of politics: Cohen, Tsfati, and Sheafer (2008) found that politicians presume that media has influence not only on the society but also their peers. They found through an experiment that politicians give importance to the issue they think presume are going to grab space on media even though they have less value for social welfare and ignore the issues that have more value for social welfare because they presume that they may not be hot on media. They concluded “the influence of the presumed media influence” directs energies of the politicians towards what can be covered by media even at the cost of what they are meant to do – legislation. Lundby (2009) identified this process as mediatisation of politics and went on to assert that it now governs the theories of agenda setting. Kriesi, Lavenex, Esser, Matthes, Buhlmann & Bochsler (2009), mention that mediatisation of politics clouds the concepts of decision making due to populism but they stopped short of offering a theory of mediatisation. Strömbäck (2008) identifies it as a four-phased process culminating into

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gradual but total adaptation of media logic that calls for controversies and simplification/generalization of issues by politicians. Politicians rely on populism compromising the quality of democracy and even mount agitations because the process of mediatisation of politics enables them to move large segments of society (The News, 2014).

gradual but total adaptation of media logic that calls for controversies and simplification/generalization of issues by politicians. Politicians rely on populism compromising the quality of democracy and even mount agitations because the process of mediatisation of politics enables them to move large segments of society (The News, 2014).

Agenda Setting: The media researchers at the University of Twente believe that agenda setting in media is the creation of what the public thinks is important. Media having powerful influences and ability tell the people as to which issues are important. Hence, in a way media tends us to consume what media sells us as agenda of the debates relating to every day life. Here media uses its power and influence to manipulate the agenda setting.

Agenda Setting: The media researchers at the University of Twente believe that agenda setting in media is the creation of what the public thinks is important. Media having powerful influences and ability tell the people as to which issues are important. Hence, in a way media tends us to consume what media sells us as agenda of the debates relating to every day life. Here media uses its power and influence to manipulate the agenda setting.

Some scholars count agenda setting as an approach falling in the cultivation theory (Laughey 2007) while others are of the view that both are two different theories (Wimmer, Dominick 2000). However, for this study, we have treated them as two different theories and weighed findings of this study on the scale of agenda setting theory. Walter Lippmann (1922) suggested that media creates „pictures in our heads‟. The notion was later developed into a theory. Based on their experiment, McCombs and Shaw (1972) declared that there was a strong relationship between the issues raised by media and the issues being discussed in public.

Some scholars count agenda setting as an approach falling in the cultivation theory (Laughey 2007) while others are of the view that both are two different theories (Wimmer, Dominick 2000). However, for this study, we have treated them as two different theories and weighed findings of this study on the scale of agenda setting theory. Walter Lippmann (1922) suggested that media creates „pictures in our heads‟. The notion was later developed into a theory. Based on their experiment, McCombs and Shaw (1972) declared that there was a strong relationship between the issues raised by media and the issues being discussed in public.

“The Agenda Setting Theory” has been selected as the theory of change for this study amid our present day media‟s growing agenda setting role in public debates on two counts: 1) it is not necessary that media reflects reality; 2) its focus on few selected topic of their choice tends people to believe that only these topics are important while others are not. The agenda setting theory is one of the most import theories of change while analyzing media content because it exposes media‟s pervasive role in political communications. If we really understand this theory, we can help influence media‟s agenda setting processing that may increase women‟s space in political communication.

“The Agenda Setting Theory” has been selected as the theory of change for this study amid our present day media‟s growing agenda setting role in public debates on two counts: 1) it is not necessary that media reflects reality; 2) its focus on few selected topic of their choice tends people to believe that only these topics are important while others are not. The agenda setting theory is one of the most import theories of change while analyzing media content because it exposes media‟s pervasive role in political communications. If we really understand this theory, we can help influence media‟s agenda setting processing that may increase women‟s space in political communication.

Model for Media’s agenda Setting Theory

Model for Media’s agenda Setting Theory

Source: McQuail & Windahl (1993)

Source: McQuail & Windahl (1993)

The above model is classic example of how we can use the theory of agenda setting to bring about change in political communications in terms of amplifying voices of women active in politics. Media‟s agenda setting is very much closely linked to public agenda and policy agenda. If we influence the agenda setting of media, we can really influence the public agenda and ultimately influence the policy agenda. This scoping study benefits from this theory of change while suggesting ways forward after media analysis of women‟s political participation.

The above model is classic example of how we can use the theory of agenda setting to bring about change in political communications in terms of amplifying voices of women active in politics. Media‟s agenda setting is very much closely linked to public agenda and policy agenda. If we influence the agenda setting of media, we can really influence the public agenda and ultimately influence the policy agenda. This scoping study benefits from this theory of change while suggesting ways forward after media analysis of women‟s political participation.

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4. Methods

4. Methods

The problem, as defined in problem statement, was confronted with the methods of content analysis, quick survey, focus group and intense interview methods to reach a conclusion. Theoretical framework explains as to how these methods go along with the theory. The changes in media and public perception revolve around Musharraf regime, the starting point for an expanded media spectrum.

The problem, as defined in problem statement, was confronted with the methods of content analysis, quick survey, focus group and intense interview methods to reach a conclusion. Theoretical framework explains as to how these methods go along with the theory. The changes in media and public perception revolve around Musharraf regime, the starting point for an expanded media spectrum.

A team of researchers collected secondary data from selected media stories and coverage of television anchored shows, radio and social media products on political issues and analyzed as to how much space media gave to women to highlight their role and participation in politics. The print media was divided in three categories representing 2002, 2008 and 2012 to see how print media has been covering the women‟s political participation. The data was viewed and analyzed with two angles; one the participation of women as newsmakers or participants in political activities and secondly how they performed while having discussions in the parliament and in media. Similarly, television shows were selected to analyze the women‟s political participation in media space.

A team of researchers collected secondary data from selected media stories and coverage of television anchored shows, radio and social media products on political issues and analyzed as to how much space media gave to women to highlight their role and participation in politics. The print media was divided in three categories representing 2002, 2008 and 2012 to see how print media has been covering the women‟s political participation. The data was viewed and analyzed with two angles; one the participation of women as newsmakers or participants in political activities and secondly how they performed while having discussions in the parliament and in media. Similarly, television shows were selected to analyze the women‟s political participation in media space.

Key informants‟ interviews helped understand pre, during and post 2008 media coverage as a comparative model. This criterion in comparison speaks of how media gave space on issues of women political participation while electronic media was not in private sector and how this spacing was changed once the private television emerged since 2008. Quick survey method and rapid assessment techniques were applied to reach to answers to the research questions. The secondary data on portrayal of women‟s political participation in media was also used for a coordinated analysis to achieve the objectives of this research. The geographical area for this research is the province of Punjab. As many as six focus group discussion and 20 key informants‟ interviews were conducted in the province.

Key informants‟ interviews helped understand pre, during and post 2008 media coverage as a comparative model. This criterion in comparison speaks of how media gave space on issues of women political participation while electronic media was not in private sector and how this spacing was changed once the private television emerged since 2008. Quick survey method and rapid assessment techniques were applied to reach to answers to the research questions. The secondary data on portrayal of women‟s political participation in media was also used for a coordinated analysis to achieve the objectives of this research. The geographical area for this research is the province of Punjab. As many as six focus group discussion and 20 key informants‟ interviews were conducted in the province.

Media content analysis techniques were used to see the research‟s results. Social media experts were also among the key informants who gave vital information on the subject. Mostly, a mix of quantitative and qualitative methods was used that leads to factual calculations to draw up results to the satisfaction of the research questions. The research questionnaire was wetted by the experts at Sustainable Development and Policy Institute (SDPI), Islamabad. The same questionnaire was followed in short survey, focus group and intensive interviews. However, we had the liberty and time to extend the questions in sessions with focus groups and female politicians in case of intensive interviews to get to the bottom of the matter. All the questions were set to test the hypotheses and the title of the research.

Media content analysis techniques were used to see the research‟s results. Social media experts were also among the key informants who gave vital information on the subject. Mostly, a mix of quantitative and qualitative methods was used that leads to factual calculations to draw up results to the satisfaction of the research questions. The research questionnaire was wetted by the experts at Sustainable Development and Policy Institute (SDPI), Islamabad. The same questionnaire was followed in short survey, focus group and intensive interviews. However, we had the liberty and time to extend the questions in sessions with focus groups and female politicians in case of intensive interviews to get to the bottom of the matter. All the questions were set to test the hypotheses and the title of the research.

4.1. Sampling

4.1. Sampling

Non-random and purpose sampling was used to find respondents in Islamabad, Labore, Multan, Sialkot and Faisalabad. As a result, a sample of total 50 respondents was drawn to represent the study population, which is the federal capital and Punjab province. This sample of respondents with stakes in or specialization in politics and media – women politicians, social society workers media researchers and senior journalists – served the purpose of highly specialized focus groups, quick survey and intensive interviews. 4.2. Operationalization of terms for content analysis

Non-random and purpose sampling was used to find respondents in Islamabad, Labore, Multan, Sialkot and Faisalabad. As a result, a sample of total 50 respondents was drawn to represent the study population, which is the federal capital and Punjab province. This sample of respondents with stakes in or specialization in politics and media – women politicians, social society workers media researchers and senior journalists – served the purpose of highly specialized focus groups, quick survey and intensive interviews. 4.2. Operationalization of terms for content analysis

During the content analysis, media content was placed in positive, negative, threatening and glamorous categories on the basis of the message it delivered and the tone in which it is delivered. The scale to measure these categories has been conceptualized in the introduction part in detail. Its operationalized form is mentioned below:

During the content analysis, media content was placed in positive, negative, threatening and glamorous categories on the basis of the message it delivered and the tone in which it is delivered. The scale to measure these categories has been conceptualized in the introduction part in detail. Its operationalized form is mentioned below:

Positive: Women politicians given opportunity to express their view on legislation, human rights, democracy, foreign policy, social and institutional reforms, instilling a sense among the masses that they are serious political stuff.

Positive: Women politicians given opportunity to express their view on legislation, human rights, democracy, foreign policy, social and institutional reforms, instilling a sense among the masses that they are serious political stuff.

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Negative: Women politicians are engaged in shouts and grunts, accusations and allegations, claims and counterclaims, snubs and sneers, instilling a sense among the masses that they are not serious political stuff.

Negative: Women politicians are engaged in shouts and grunts, accusations and allegations, claims and counterclaims, snubs and sneers, instilling a sense among the masses that they are not serious political stuff.

Threatening: Women politicians are put to harassment (talked down by journalists or other experts); offensive words, tones and gestures; shut up and insulted by male or female participants; trial of personality; probe into domestic life in such a way males are not; discriminations between their and their male colleagues‟ roles in politics and society, instilling a sense among the masses that they are inferior to their male colleagues.

Threatening: Women politicians are put to harassment (talked down by journalists or other experts); offensive words, tones and gestures; shut up and insulted by male or female participants; trial of personality; probe into domestic life in such a way males are not; discriminations between their and their male colleagues‟ roles in politics and society, instilling a sense among the masses that they are inferior to their male colleagues.

Glamorous: Women politicians' female traits; dresses; looks; style of moving and talking; and make-up are discussed and sometimes put on the sections reserved for fashion and design, instilling among the masses a sense that they are not political stuff.

Glamorous: Women politicians' female traits; dresses; looks; style of moving and talking; and make-up are discussed and sometimes put on the sections reserved for fashion and design, instilling among the masses a sense that they are not political stuff.

5.

Findings and discussion

5.

Table 1: Number of news items on women politician

Name of Publication Daily Jang Dawn The Nation

Year 2002 131 167 376

Year 2008 215 157 383

Year 2012 146 147 200

Table 1: Number of news items on women politician

Total Number of news Item on Women Politician

Name of Publication

492 471 959

Daily Jang Dawn The Nation

Table 2: Measurement of space given to these news items Publications Dawn Jang The Nation

1-5 inch 71 107 245

6-10 inch 114 85 106

11-15 inch 175 189 313

16-20 inches 61 182 207

Findings and discussion

Year 2002 131 167 376

Year 2008 215 157 383

Year 2012 146 147 200

Total Number of news Item on Women Politician 492 471 959

Table 2: Measurement of space given to these news items < 20 Inches 50 14 29

Publications Dawn Jang The Nation

1-5 inch 71 107 245

6-10 inch 114 85 106

11-15 inch 175 189 313

16-20 inches 61 182 207

< 20 Inches 50 14 29

Figure 1 Coverage of women politicians on three major daily newspapers for the year 2002, 2008 and 2012 shows that The Nation gave maximum coverage to women politicians overall in 2002, 2008 and 2012.

Figure 1 Coverage of women politicians on three major daily newspapers for the year 2002, 2008 and 2012 shows that The Nation gave maximum coverage to women politicians overall in 2002, 2008 and 2012.

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Table 3: TV channels, their programs, timing and duration of analysis Date: From 18/ Dec/2012 to 31/Dec/2012 Timings: 4:00 Pm to 8:00 Name Channel Name of Programme which were analyzed Geo News  Aik Din Geo K sath (Sunday)  Geomantary  GeoAjooba (Sunday)  Hum Sab Umeed Say hai  Hum Awaam  FIR Express News  To The Point  Takrar  News 6 PM  News Hour  Reporter Pakistani  Baat Se Baat  Express Fatafat  Shikanja Aaj News  Dosti Aisa Nata  Sawal Hai Pakistan Ka  Fear Files

Table 3: TV channels, their programs, timing and duration of analysis Date: From 18/ Dec/2012 to 31/Dec/2012 Timings: 4:00 Pm to 8:00 Name Channel Name of Programme which were analyzed Geo News  Aik Din Geo K sath (Sunday)  Geomantary  GeoAjooba (Sunday)  Hum Sab Umeed Say hai  Hum Awaam  FIR Express News  To The Point  Takrar  News 6 PM  News Hour  Reporter Pakistani  Baat Se Baat  Express Fatafat  Shikanja Aaj News  Dosti Aisa Nata  Sawal Hai Pakistan Ka  Fear Files

Table 4: Frequency of coverage of women politicians shows that out of 4107 item aired on these TV channels from Dec 1 to Dec 15, 2012. 536 were related to women politicians, directly or indirectly.

Table 4: Frequency of coverage of women politicians shows that out of 4107 item aired on these TV channels from Dec 1 to Dec 15, 2012. 536 were related to women politicians, directly or indirectly.

Name Channel Geo News Express News Aaj News

Coverage of women Politician 179 270 87

Name Channel Geo News Express News Aaj News

Coverage of women Politician 179 270 87

Figure 2 shows that Express News gave maximum coverage to women politicians, followed by Geo and Aaj News respectively.

Figure 2 shows that Express News gave maximum coverage to women politicians, followed by Geo and Aaj News respectively.

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Table 5: Express News portrays women in positive light the most. Name of Channel Geo News Express News Aaj News

TV

Table 5: Express News portrays women in positive light the most.

Positive

Negative

Threatening

Glamorous

47 182

60 43

40 25

32 20

Name of Channel Geo News Express News

43

25

7

12

Aaj News

TV

Positive

Negative

Threatening

Glamorous

47 182

60 43

40 25

32 20

43

25

7

12

Figure above shows that Express News was gave maximum positive news about women politicians, while Geo gave negative coverage to women politicians the most.

Figure above shows that Express News was gave maximum positive news about women politicians, while Geo gave negative coverage to women politicians the most.

Findings of Media Content Analysis:

Findings of Media Content Analysis:

Print Media: An overview of content analysis of three mainstream newspapers – Jang, The Nation and Dawn – before, during and after Musharraf regime (2002-2012) shows that coverage of women shot up immensely during Musharraf era and then came down. Despite this decline, the frequency remained higher than before.

Print Media: An overview of content analysis of three mainstream newspapers – Jang, The Nation and Dawn – before, during and after Musharraf regime (2002-2012) shows that coverage of women shot up immensely during Musharraf era and then came down. Despite this decline, the frequency remained higher than before.

Electronic media: Before Musharraf, there was only state-owned TV but he allowed private sector to expand electronic media market. We have analyzed the latest content on electronic media to see the frequency and nature of content related to women politicians.

Electronic media: Before Musharraf, there was only state-owned TV but he allowed private sector to expand electronic media market. We have analyzed the latest content on electronic media to see the frequency and nature of content related to women politicians.

Findings of Focus Groups and Intensive Interviews:

Findings of Focus Groups and Intensive Interviews:

Data Deception: The content analysis has shown a significant increase in presentation of women on electronic media during and after Musharraf regime. The result is strongly endorsed by respondents of focus groups and

Data Deception: The content analysis has shown a significant increase in presentation of women on electronic media during and after Musharraf regime. The result is strongly endorsed by respondents of focus groups and

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intensive interviews. The respondents are also stakeholders being politicians, media professionals or researchers, and civil society activists. Their opinion is informed and based on their observation of society and professional experiences. Almost all of them, 70 in number, observed the increase in participation of women politicians on media during and after Musharraf regime but there was a difference between opinions of participants of focus groups and intensive interviews about the second hypothesis that media is changing public perception in such a way that women get courage to take part in politics.

intensive interviews. The respondents are also stakeholders being politicians, media professionals or researchers, and civil society activists. Their opinion is informed and based on their observation of society and professional experiences. Almost all of them, 70 in number, observed the increase in participation of women politicians on media during and after Musharraf regime but there was a difference between opinions of participants of focus groups and intensive interviews about the second hypothesis that media is changing public perception in such a way that women get courage to take part in politics.

A dominant majority of focus group participants, who are local or provincial level actors, take courage from this increase in presentation of women politicians on media. Presentation of women politicians on media offended male respondents in Multan and Faisalabad who objected that women politicians are given relatively more space on media than their male colleagues. This objection is reflective of the fear of women getting their due that prevails in the society. This despite the fact that women were given far lesser than what they deserve being over 50 percent of the population of the country.

A dominant majority of focus group participants, who are local or provincial level actors, take courage from this increase in presentation of women politicians on media. Presentation of women politicians on media offended male respondents in Multan and Faisalabad who objected that women politicians are given relatively more space on media than their male colleagues. This objection is reflective of the fear of women getting their due that prevails in the society. This despite the fact that women were given far lesser than what they deserve being over 50 percent of the population of the country.

In Lahore and Sialkot, female respondents say that media plays a pro-active role in supporting them in politics and welfare work. One female respondent in Sialkot quoted an incident in which media helped her start a welfare project in the city. She planned a welfare project and local media gave her idea coverage. As a result, people and local politicians got awareness and facilitate her in getting due recognition. It also shows the impact of mediatization process, as people and local politicians remained indifferent until the welfare project came on media agenda. A female politician in Lahore said: „Yes, media is our voice. It supported us a lot. It has helped spread our good image.‟

In Lahore and Sialkot, female respondents say that media plays a pro-active role in supporting them in politics and welfare work. One female respondent in Sialkot quoted an incident in which media helped her start a welfare project in the city. She planned a welfare project and local media gave her idea coverage. As a result, people and local politicians got awareness and facilitate her in getting due recognition. It also shows the impact of mediatization process, as people and local politicians remained indifferent until the welfare project came on media agenda. A female politician in Lahore said: „Yes, media is our voice. It supported us a lot. It has helped spread our good image.‟

But this majority is nonetheless disturbed with discrimination between media portrayal of women and men in such a way that the women don‟t feel encouraged to take part in politics. Similarly, the interviewees, who are provincial and national level stakeholders, see this increase in presentation of women on media as an eyewash and „ridiculous‟. They say when the media spectrum increased manifold after permission of opening private TV channels and radio stations, every segment of society got more coverage, which means the increased coverage is not specific to women politicians. They, rather, got less than their due share on electronic media and still continue to suffer bleak coverage on print media. (See table 2 and 4)

But this majority is nonetheless disturbed with discrimination between media portrayal of women and men in such a way that the women don‟t feel encouraged to take part in politics. Similarly, the interviewees, who are provincial and national level stakeholders, see this increase in presentation of women on media as an eyewash and „ridiculous‟. They say when the media spectrum increased manifold after permission of opening private TV channels and radio stations, every segment of society got more coverage, which means the increased coverage is not specific to women politicians. They, rather, got less than their due share on electronic media and still continue to suffer bleak coverage on print media. (See table 2 and 4)

In print media, English language newspapers highlight the issues surrounding women politicians but the Urdu language newspapers gave women politicians a cold shoulder, typical of a male chauvinist society. Head of the state-run radio says, “It is true that influence of Radio has increased over last 10 years … But, once again their (media‟s) role in women‟s participation in politics is not up to mark. Then it is also truth that political elite of this country hardly care about Radio.” The female politicians prominent on media see its treatment of their colleagues as balanced (50/50 as one of them calls it) but their approach is not reflective of that of others.

In print media, English language newspapers highlight the issues surrounding women politicians but the Urdu language newspapers gave women politicians a cold shoulder, typical of a male chauvinist society. Head of the state-run radio says, “It is true that influence of Radio has increased over last 10 years … But, once again their (media‟s) role in women‟s participation in politics is not up to mark. Then it is also truth that political elite of this country hardly care about Radio.” The female politicians prominent on media see its treatment of their colleagues as balanced (50/50 as one of them calls it) but their approach is not reflective of that of others.

Some male participants have in their minds some roles typical for women. For example, a male participant in Multan said women are supposed to perform in-house duties and politics is not their piece of cake. Another male participant in Sialkot said media should teach women how to sew and do other domestic chorus and not the politics. It shows that even those males who have been sensitized towards gender also have stereotypes in their minds regarding women politicians.

Some male participants have in their minds some roles typical for women. For example, a male participant in Multan said women are supposed to perform in-house duties and politics is not their piece of cake. Another male participant in Sialkot said media should teach women how to sew and do other domestic chorus and not the politics. It shows that even those males who have been sensitized towards gender also have stereotypes in their minds regarding women politicians.

Overall, gender-generated derogatory comments, especially on electronic media, do not go down well with the respondents because they are putting women politicians in a negative light in the society.

Overall, gender-generated derogatory comments, especially on electronic media, do not go down well with the respondents because they are putting women politicians in a negative light in the society.

The Second Fiddle: The information gathered for this study suggests that in many cases journalists invite women politicians to their programmes/shows when their male guests reportedly refuse to turn up. This is the reality a woman politician has to swallow when she comes on media – she is playing second fiddle to men at the outset. A leading civil society activist believes that increase in coverage of women politicians is linked with the increase in number of women anchors on media. Her observation was fully substantiated by statement of a women anchor who said, “I think media has not arranged special programmes for women politicians. I, being

The Second Fiddle: The information gathered for this study suggests that in many cases journalists invite women politicians to their programmes/shows when their male guests reportedly refuse to turn up. This is the reality a woman politician has to swallow when she comes on media – she is playing second fiddle to men at the outset. A leading civil society activist believes that increase in coverage of women politicians is linked with the increase in number of women anchors on media. Her observation was fully substantiated by statement of a women anchor who said, “I think media has not arranged special programmes for women politicians. I, being

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female anchor, usually invite women legislators to participate in my talk show in a bid to give equal treatment to women and men politicians.”

female anchor, usually invite women legislators to participate in my talk show in a bid to give equal treatment to women and men politicians.”

Women politicians have contributed a lot in the law making process but media used them in many cases as a lure to attract more and more audiences instead of being serious stakeholders. Almost all respondents observed that the stage is set for women politicians‟ portrayal on media in such a way that their shine is pushed under the bushel. Only one journalist, a female one, said that she takes extra care of the fact that in her work, women are presented equal to men and given the chance to take part in debates on policy matters, international relations, human rights, legislation and social reforms. Others think they have the potential to shed light on these serious issues but it remains untapped. At this point, we can conclude that the increase in presentation of women politicians on media failed to paint their image in such a manner that encourages others to come to politics. It is because public set the agenda of its discussion in accordance with agenda of media that strives to strike a chord with aging social perceptions about women politicians. We went one step further to enter the domain of mediatization from agenda setting. This is the stage when we recognize that media can no longer be distinguished from society in such a manner that they work like one unit changing behaviors. We then can state that like other organs of society, media is working to consolidate gender barriers and not to bring them down. The key to understand it lies in studying the manner in which it presents women politicians to its audience. It is this presentation that endorses biases against women and their discrimination in the society. As a result, women do not feel encouraged to take part in politics due to their enhanced presentation on media because the manner of presentation is not encouraging. So there may be other factors than media for the interest of women in politics.

Women politicians have contributed a lot in the law making process but media used them in many cases as a lure to attract more and more audiences instead of being serious stakeholders. Almost all respondents observed that the stage is set for women politicians‟ portrayal on media in such a way that their shine is pushed under the bushel. Only one journalist, a female one, said that she takes extra care of the fact that in her work, women are presented equal to men and given the chance to take part in debates on policy matters, international relations, human rights, legislation and social reforms. Others think they have the potential to shed light on these serious issues but it remains untapped. At this point, we can conclude that the increase in presentation of women politicians on media failed to paint their image in such a manner that encourages others to come to politics. It is because public set the agenda of its discussion in accordance with agenda of media that strives to strike a chord with aging social perceptions about women politicians. We went one step further to enter the domain of mediatization from agenda setting. This is the stage when we recognize that media can no longer be distinguished from society in such a manner that they work like one unit changing behaviors. We then can state that like other organs of society, media is working to consolidate gender barriers and not to bring them down. The key to understand it lies in studying the manner in which it presents women politicians to its audience. It is this presentation that endorses biases against women and their discrimination in the society. As a result, women do not feel encouraged to take part in politics due to their enhanced presentation on media because the manner of presentation is not encouraging. So there may be other factors than media for the interest of women in politics.

The Society, Corruption and Laziness: “I don‟t blame the media fully. These gender biases are imbedded in our society. But media ought to break these biases instead of thriving on them for the sake of broader viewer- or readership,” said a media scholar during intensive interview. It is true that former president Gen ® Pervez Musharraf opened up media and resultantly coverage of women politicians went up in his regime. But his policy failed to let women politicians penetrate in the society to undo the appalling and unreal perceptions about them, which were created by his predecessor dictator Ziaul Haq (Herald, 2008). Zia made misogynist trends part of popular culture in the society and then the process of mediatization did not let these trends fade away. It is for this reason that despite the increase in coverage about women politicians on media, the social perceptions about them are far from encouraging. Therefore, these findings reject our second hypothesis.

The Society, Corruption and Laziness: “I don‟t blame the media fully. These gender biases are imbedded in our society. But media ought to break these biases instead of thriving on them for the sake of broader viewer- or readership,” said a media scholar during intensive interview. It is true that former president Gen ® Pervez Musharraf opened up media and resultantly coverage of women politicians went up in his regime. But his policy failed to let women politicians penetrate in the society to undo the appalling and unreal perceptions about them, which were created by his predecessor dictator Ziaul Haq (Herald, 2008). Zia made misogynist trends part of popular culture in the society and then the process of mediatization did not let these trends fade away. It is for this reason that despite the increase in coverage about women politicians on media, the social perceptions about them are far from encouraging. Therefore, these findings reject our second hypothesis.

Trying to draw a picture on a bigger canvass, we found that it is not only the gender barrier that media sets for women to cross but there are walls of class and system also. There is a dominant perception that women politicians only from prominent social class get prominent treatment and space on media. “Connections do matter. Those with „friends‟ at right places catch ample opportunity to express themselves to the public through media,” a female participant replied in Lahore.

Trying to draw a picture on a bigger canvass, we found that it is not only the gender barrier that media sets for women to cross but there are walls of class and system also. There is a dominant perception that women politicians only from prominent social class get prominent treatment and space on media. “Connections do matter. Those with „friends‟ at right places catch ample opportunity to express themselves to the public through media,” a female participant replied in Lahore.

Other than continuing the status quo, there are two reasons for discrimination between women on the basis of their class. First, corruption in media is no hidden thing and those with enough resources manage to „bribe journalists‟ and get a prominent space on media. Secondly, lack of professionalism prevails among journalists. The media professionals based in big cities such as Lahore, Islamabad and Karachi have an easy recipe to churn out their programmes – call somebody from the nearby locality for comments and that is it. Most of media space in this ways goes into reactive mode of content.

Other than continuing the status quo, there are two reasons for discrimination between women on the basis of their class. First, corruption in media is no hidden thing and those with enough resources manage to „bribe journalists‟ and get a prominent space on media. Secondly, lack of professionalism prevails among journalists. The media professionals based in big cities such as Lahore, Islamabad and Karachi have an easy recipe to churn out their programmes – call somebody from the nearby locality for comments and that is it. Most of media space in this ways goes into reactive mode of content.

Indulging in laziness, the journalists do not only block some important information that they could have got from a women politician belonging to not so big a city, but they also leave a negative impact on public perception of women politicians. Seeing the same faces and listening to similar arguments again and again, media audiences are justified in thinking that the share of women in politics is limited only to this monotony that media shows them. The subtle damage that this approach does is creating a stress among majority of women politicians who feel cast aside and disgruntled. “If I say anything, nobody will listen to it but if Shahzadi Umer Tiwana (politician from prominent Tiwana family) says something, every channel will air it,” a women politician in Lahore said.

Indulging in laziness, the journalists do not only block some important information that they could have got from a women politician belonging to not so big a city, but they also leave a negative impact on public perception of women politicians. Seeing the same faces and listening to similar arguments again and again, media audiences are justified in thinking that the share of women in politics is limited only to this monotony that media shows them. The subtle damage that this approach does is creating a stress among majority of women politicians who feel cast aside and disgruntled. “If I say anything, nobody will listen to it but if Shahzadi Umer Tiwana (politician from prominent Tiwana family) says something, every channel will air it,” a women politician in Lahore said.

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Another damage that this approach does is that society is not aware of the achievements of politicians at grassroots and in ignorance they make up their minds that women politicians have no contributions in development at local level. Women politicians from less prominent background or holders of lower political office feel cheated by this perception of increase in media coverage about women politicians. Their agony is summed up in a statement one of the respondents made in Faisalabad: “There is much „coverage of the coverage of women politicians by media‟ but in reality they (women politicians) are not there at all.”

Another damage that this approach does is that society is not aware of the achievements of politicians at grassroots and in ignorance they make up their minds that women politicians have no contributions in development at local level. Women politicians from less prominent background or holders of lower political office feel cheated by this perception of increase in media coverage about women politicians. Their agony is summed up in a statement one of the respondents made in Faisalabad: “There is much „coverage of the coverage of women politicians by media‟ but in reality they (women politicians) are not there at all.”

Women politicians are often seen complaining about lack of resources because few parties finance them and their position is secondary when it comes to distribution of wealth within a family in Pakistan‟s maledominant society. They would not have faced these constraints in using media in an effective way if the media had been sensitive to them. “Yes, absolutely it happens (class discrimination). I can‟t offer dinners in five-star hotels for media makers like Samina Khawar Hayat; that‟s why she steals the coverage and I am nowhere,” said a female politician from Lahore.

Women politicians are often seen complaining about lack of resources because few parties finance them and their position is secondary when it comes to distribution of wealth within a family in Pakistan‟s maledominant society. They would not have faced these constraints in using media in an effective way if the media had been sensitive to them. “Yes, absolutely it happens (class discrimination). I can‟t offer dinners in five-star hotels for media makers like Samina Khawar Hayat; that‟s why she steals the coverage and I am nowhere,” said a female politician from Lahore.

It is media, which helps, or can help women get a good office even in their political parties. The women who are given the opportunity to present their views stay in politics for a long time. But the hitch is that the number of such women is very low. “There, sure, are pressure groups in media. They have their own interests and benefits. They have set 30-35 faces which they invite on regular basis in prime time programmes,” a woman politician pointed out in Sialkot.

It is media, which helps, or can help women get a good office even in their political parties. The women who are given the opportunity to present their views stay in politics for a long time. But the hitch is that the number of such women is very low. “There, sure, are pressure groups in media. They have their own interests and benefits. They have set 30-35 faces which they invite on regular basis in prime time programmes,” a woman politician pointed out in Sialkot.

The beauty barrier: After facing the barriers of gender and class, women politicians face another barrier – the beauty barrier we may call it. In only two weeks, Geo TV put women politicians in the category of glitz and glam 32 times, according to our content analysis. There are programmes on media channels that show as to how a slim, smart and young politician walks on the Constitution Avenue, highlighting her dress and glasses etc. It is a source of concern among female politicians, intellectuals and social workers (who we have studied in this project) that older and obese women politicians don‟t stand even on the edges in media content. “I wonder what makes them ask Marvi Memon such questions as „have you ever loved somebody?‟ and Sharmila Faruki „when will you get married?‟ questioned a participant of the focus group in Lahore.

The beauty barrier: After facing the barriers of gender and class, women politicians face another barrier – the beauty barrier we may call it. In only two weeks, Geo TV put women politicians in the category of glitz and glam 32 times, according to our content analysis. There are programmes on media channels that show as to how a slim, smart and young politician walks on the Constitution Avenue, highlighting her dress and glasses etc. It is a source of concern among female politicians, intellectuals and social workers (who we have studied in this project) that older and obese women politicians don‟t stand even on the edges in media content. “I wonder what makes them ask Marvi Memon such questions as „have you ever loved somebody?‟ and Sharmila Faruki „when will you get married?‟ questioned a participant of the focus group in Lahore.

Not only political parties, but the society at large also takes women as politicians less seriously after their portrayal as „fashion commodity‟ and their negative coverage on media. It is because of this hostile perception that less and less people vote for women politicians and dictators like Musharraf had to fix quota for them in the parliament only to later boast of his efforts for „women empowerment‟ in his book ‘In the Line of Fire’. This quota serves to distance women parliamentarians from the masses as they get seats on the basis of their links, reported Aurat Foundation (2005). But despite this quota, their number could not have risen to the desirable 33 percent in the parliament.

Not only political parties, but the society at large also takes women as politicians less seriously after their portrayal as „fashion commodity‟ and their negative coverage on media. It is because of this hostile perception that less and less people vote for women politicians and dictators like Musharraf had to fix quota for them in the parliament only to later boast of his efforts for „women empowerment‟ in his book ‘In the Line of Fire’. This quota serves to distance women parliamentarians from the masses as they get seats on the basis of their links, reported Aurat Foundation (2005). But despite this quota, their number could not have risen to the desirable 33 percent in the parliament.

On the basis of this discussion and findings, we can conclude that the study has proved our first and third hypotheses and rejected the second hypothesis. (Briefs of intensive interviews and questionnaire are given in the annexure for the reviewers and editors)

On the basis of this discussion and findings, we can conclude that the study has proved our first and third hypotheses and rejected the second hypothesis. (Briefs of intensive interviews and questionnaire are given in the annexure for the reviewers and editors)

6. Limitations We got a very little time to complete this study. If focus groups and intensive interviews had been held after equal intervals, more exact picture of the subject would have resulted. Resources were other obstacles since involving experts in such groups and interviews requires more resources. However, our media background and contacts made up for this deficiency to a large extent.

7. Conclusion

6. Limitations We got a very little time to complete this study. If focus groups and intensive interviews had been held after equal intervals, more exact picture of the subject would have resulted. Resources were other obstacles since involving experts in such groups and interviews requires more resources. However, our media background and contacts made up for this deficiency to a large extent.

7. Conclusion

The study notes that the frequency of coverage of women politicians has been increased since 2008 but this increase could not be translated into acceptance of women politicians in society because they are put in a negative light on media. The study concludes that instead of breaking the barriers of gender, class and

The study notes that the frequency of coverage of women politicians has been increased since 2008 but this increase could not be translated into acceptance of women politicians in society because they are put in a negative light on media. The study concludes that instead of breaking the barriers of gender, class and

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personality, Pakistan‟s expanded media space ended up consolidating them, diminishing space for women politicians to get their due share in politics and society as a result of the process of mediatization, which has been identified as a threat to democracy. The stopgap arrangement of fixing their quota in the parliament served to further increase the gap between women politicians and society, which they don‟t represent directly. Media could have plugged this gap but did not. Media gave coverage to women in politics but did not project their role in parliament and in the provincial assemblies. They played a key role in legislation processes and they took part actively in the parliamentary debates. But their role has hardly been acknowledged in the media. From the media content, apparently it seems that women political participation is seen in media spaces and women leadership from political parties and civil society are invited to contribute to these spaces, be it television, radio or newspapers but there has been no formal study on that subject. During these two phases, the findings conclude that media builds its agenda in such a manner that women politicians enjoy more acceptances of their work and person in society. So, we need to understand that in the context of Pakistani media and politics, it is important that visibility of women in politics be seen as serious stakeholders and leaders from almost half the population and not just as an object given representation for the sake of representation and to establish the point that women are in political arena in Pakistan. The study notes that when the media spectrum increased manifold after permission of opening up of private TV channels and radio stations, every segment of society got more coverage, which means the increased coverage is not specific to women politicians only. They, rather, got less than their due share on electronic media and still continue to suffer bleak coverage on print media. Media has not befittingly covered the contribution of women politicians towards the law making process and did not take them as serious stakeholders. Journalists think they have the potential to shed light on these serious issues but it remains untapped because they have to run for populism which is a product of the process of mediatization. We can conclude that the increase in presentation of women politicians on media failed to paint their image in such a manner that encourages others to come to politics. It is because public set the agenda of its discussion in accordance with agenda of media that strives to strike a chord with aging social perceptions about women politicians. Moreover, society is not aware of the achievements of politicians at grassroots and in ignorance they make up their minds that women politicians have no contributions in development at local level. Women politicians from less prominent background or holders of lower political office feel cheated by this perception of increase in media coverage about women politicians. Their agony is summed up in a statement one of the respondents made: “There is much „coverage of the coverage of women politicians by media‟ but in reality they (women politicians) are not there at all.”

personality, Pakistan‟s expanded media space ended up consolidating them, diminishing space for women politicians to get their due share in politics and society as a result of the process of mediatization, which has been identified as a threat to democracy. The stopgap arrangement of fixing their quota in the parliament served to further increase the gap between women politicians and society, which they don‟t represent directly. Media could have plugged this gap but did not. Media gave coverage to women in politics but did not project their role in parliament and in the provincial assemblies. They played a key role in legislation processes and they took part actively in the parliamentary debates. But their role has hardly been acknowledged in the media. From the media content, apparently it seems that women political participation is seen in media spaces and women leadership from political parties and civil society are invited to contribute to these spaces, be it television, radio or newspapers but there has been no formal study on that subject. During these two phases, the findings conclude that media builds its agenda in such a manner that women politicians enjoy more acceptances of their work and person in society. So, we need to understand that in the context of Pakistani media and politics, it is important that visibility of women in politics be seen as serious stakeholders and leaders from almost half the population and not just as an object given representation for the sake of representation and to establish the point that women are in political arena in Pakistan. The study notes that when the media spectrum increased manifold after permission of opening up of private TV channels and radio stations, every segment of society got more coverage, which means the increased coverage is not specific to women politicians only. They, rather, got less than their due share on electronic media and still continue to suffer bleak coverage on print media. Media has not befittingly covered the contribution of women politicians towards the law making process and did not take them as serious stakeholders. Journalists think they have the potential to shed light on these serious issues but it remains untapped because they have to run for populism which is a product of the process of mediatization. We can conclude that the increase in presentation of women politicians on media failed to paint their image in such a manner that encourages others to come to politics. It is because public set the agenda of its discussion in accordance with agenda of media that strives to strike a chord with aging social perceptions about women politicians. Moreover, society is not aware of the achievements of politicians at grassroots and in ignorance they make up their minds that women politicians have no contributions in development at local level. Women politicians from less prominent background or holders of lower political office feel cheated by this perception of increase in media coverage about women politicians. Their agony is summed up in a statement one of the respondents made: “There is much „coverage of the coverage of women politicians by media‟ but in reality they (women politicians) are not there at all.”

7.1. Recommendations

7.1. Recommendations



This study provides an eye opener for government, academia, civil society and donor communities in Pakistan so that they can work to increase women‟s political participation.



This study provides an eye opener for government, academia, civil society and donor communities in Pakistan so that they can work to increase women‟s political participation.



There is a need for building media agenda for women‟s political participation in a real sense by influencing media‟s decision makers.



There is a need for building media agenda for women‟s political participation in a real sense by influencing media‟s decision makers.



The media coverage of women political participation can be increased through pro-active media work.



The media coverage of women political participation can be increased through pro-active media work.



Based on the findings and recommendation in this study, civil society and academia may line up media outreach programmes, devise training programme for media persons so that they can report sensibly, keeping in with all sensitivities around issues.



Based on the findings and recommendation in this study, civil society and academia may line up media outreach programmes, devise training programme for media persons so that they can report sensibly, keeping in with all sensitivities around issues.



The civil society advocacy groups can draw up media plan with a view to increase the media space of women politicians and can impart training to staff of like minded groups and community groups and also media professionals.



The civil society advocacy groups can draw up media plan with a view to increase the media space of women politicians and can impart training to staff of like minded groups and community groups and also media professionals.



One thing is for sure that in 24/7 media environment, there is a space available for non-traditional news-makers such as women in politics, minorities and marginalized groups. But this media space is largely consumed by male politicians as they can manure information. To grab more space in media for



One thing is for sure that in 24/7 media environment, there is a space available for non-traditional news-makers such as women in politics, minorities and marginalized groups. But this media space is largely consumed by male politicians as they can manure information. To grab more space in media for

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the women in politics, a well-structured media work is highly recommended as needed by the respondents of this study.

8. References

the women in politics, a well-structured media work is highly recommended as needed by the respondents of this study.

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Author’s Profile

Author’s Profile

Hassan Shehzad

Hassan Shehzad

Hassan Shehzad is currently working as Research Associate at Department of Media and Communication Studies, International Islamic University Islamabad. He has served as assistant editor and news editor mainstream liberal newspapers of Pakistan – Daily Times and Dateline Islamabad. Now, he contributes opinions, book reviews, interviews and features to The News International. He is directing US Department of Labor project titled “Integrated Strategies to Improve Labor Rights to Enhance Protection and Security of Journalists in Pakistan” from the platform of Journalists for Democracy and Human Rights. He is alumnae Fulbright Scholarship program and has contributed to US media also. Mediatization of politics is his field in PhD in Media Studies.

Hassan Shehzad is currently working as Research Associate at Department of Media and Communication Studies, International Islamic University Islamabad. He has served as assistant editor and news editor mainstream liberal newspapers of Pakistan – Daily Times and Dateline Islamabad. Now, he contributes opinions, book reviews, interviews and features to The News International. He is directing US Department of Labor project titled “Integrated Strategies to Improve Labor Rights to Enhance Protection and Security of Journalists in Pakistan” from the platform of Journalists for Democracy and Human Rights. He is alumnae Fulbright Scholarship program and has contributed to US media also. Mediatization of politics is his field in PhD in Media Studies.

Shafqat Munir

Shafqat Munir Shafqat Munir Ahmad is an Ashoka Fellow- News and Knowledge Initiative, Ashoka Foundation, United States. By profession he is a senior journalist, policy analyst, researcher and campaigner, CSR and social investment specialists. He is the architect and founder of a CSR regional network called „SANSaR: South Asian Network on Sustainability and Responsibility. He has supervised, co-authored and edited „State of CSR in Pakistan‟ report 2011.

Shafqat Munir Ahmad is an Ashoka Fellow- News and Knowledge Initiative, Ashoka Foundation, United States. By profession he is a senior journalist, policy analyst, researcher and campaigner, CSR and social investment specialists. He is the architect and founder of a CSR regional network called „SANSaR: South Asian Network on Sustainability and Responsibility. He has supervised, co-authored and edited „State of CSR in Pakistan‟ report 2011.

He has long been associated with the process of South Asia Economic Summits. He is on the advisory board of South Asia Watch on Trade, Economic and Environment (SAWTEE). Mr Shafqat is among founders of South Asia Centre for Economic Journalists (SACE), Infochange News and Features Network (INFN), M/S. Infochange (Pvt) Limited Pakistan and is a key support behind Asia Media Forum (AMF). He has contributed research and media articles on trade, carporate social responsibility, political economy, food security and climate change in the South Asian context.

He has long been associated with the process of South Asia Economic Summits. He is on the advisory board of South Asia Watch on Trade, Economic and Environment (SAWTEE). Mr Shafqat is among founders of South Asia Centre for Economic Journalists (SACE), Infochange News and Features Network (INFN), M/S. Infochange (Pvt) Limited Pakistan and is a key support behind Asia Media Forum (AMF). He has contributed research and media articles on trade, carporate social responsibility, political economy, food security and climate change in the South Asian context.

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Education and math teaching for visual impairment children 1,2

Henderson Tavares de Souza1, Luis César Martini2 State University of Campinas (UNICAMP), Av. Albert Einstein - 400 – CEP: 13083-852 Cidade Universitária "Zeferino Vaz" – Campinas, SP – Brasil 1 [email protected], 2 [email protected]

Education and math teaching for visual impairment children 1,2

Henderson Tavares de Souza1, Luis César Martini2 State University of Campinas (UNICAMP), Av. Albert Einstein - 400 – CEP: 13083-852 Cidade Universitária "Zeferino Vaz" – Campinas, SP – Brasil 1 [email protected], 2 [email protected]

“This work has been partially supported by the Brazilian agency CAPES”

“This work has been partially supported by the Brazilian agency CAPES”

Abstract

Abstract

This research aims at introducing MiniMatecaVox software, which will provide subsidies for math teaching for visually impairment children. MiniMatecaVox has been developed based on current pedagogical practices of maths teaching and it took into account in its development the dearth found in the literature base of this work, therefore, the software presents the children a ludic and pleasant environment providing them at the same time math teaching, digital inclusion and recreation in their education initial phase. We show part of the software environment and data from the tests made during the software development. The result is satisfactory and directs the researchers to continuous the way to increase math accessibility to visually impaired children.

This research aims at introducing MiniMatecaVox software, which will provide subsidies for math teaching for visually impairment children. MiniMatecaVox has been developed based on current pedagogical practices of maths teaching and it took into account in its development the dearth found in the literature base of this work, therefore, the software presents the children a ludic and pleasant environment providing them at the same time math teaching, digital inclusion and recreation in their education initial phase. We show part of the software environment and data from the tests made during the software development. The result is satisfactory and directs the researchers to continuous the way to increase math accessibility to visually impaired children.

Keywords: Visual impaired, Math teaching, Education, Accessibility

Keywords: Visual impaired, Math teaching, Education, Accessibility

1. Introduction

1. Introduction

In Brazil, according to IBGE (2010), more than 6.5 million people have some visual impairment, and of this total 528,624 are blind and 6,056,654 has large permanent difficulties to see or low vision. Today schools still depend a lot on visual aids for teaching, thus making it a barrier to the education of visually impaired children, causing a wide divergence of the advances in technologies for the access of disabled people, since integration between teaching and systems information is still far from the ideal. The need for intervention by education professionals in primary education of blind children is crucial to the evolution of learning being applied, in order to include these children in society through digital inclusion and written communication. (KOBAL 2005)

In Brazil, according to IBGE (2010), more than 6.5 million people have some visual impairment, and of this total 528,624 are blind and 6,056,654 has large permanent difficulties to see or low vision. Today schools still depend a lot on visual aids for teaching, thus making it a barrier to the education of visually impaired children, causing a wide divergence of the advances in technologies for the access of disabled people, since integration between teaching and systems information is still far from the ideal. The need for intervention by education professionals in primary education of blind children is crucial to the evolution of learning being applied, in order to include these children in society through digital inclusion and written communication. (KOBAL 2005)

Today we have little literature for the inclusion of visually impaired children in public schools in Brazil, our literature review did not obtain results that could assure us that the inclusion of blind children and low vision in the public schools in Brazil was satisfactory and we understand that today it is almost nil.

Today we have little literature for the inclusion of visually impaired children in public schools in Brazil, our literature review did not obtain results that could assure us that the inclusion of blind children and low vision in the public schools in Brazil was satisfactory and we understand that today it is almost nil.

Many works have tactile nature interventions to mediate interactions through video and audio emphasizing the cognitive functions of visually impaired children (SIMSEK, Altun, ATES, 2010; SUNG, JUN, LEE, 2009). About the computer assistive technologies we are also found records in the literature as a system interface that allows screen readers to interact with Second Life (Folmer, YUAN, SAPRE, 2009). This form enables the interaction of visually impaired with that network. The work of Ludi and Reichlmayr (2008) presents an educational intervention to supply difficulties of blind students at the university through the owner software LEGO Mindstorms NXT. Other educational studies of blind people converge on the use of games as mediation mechanisms (RAISAMO et al., 2007) in order to interact and through play, entertain and at the same time trying to teach some content that is included in the games.

Many works have tactile nature interventions to mediate interactions through video and audio emphasizing the cognitive functions of visually impaired children (SIMSEK, Altun, ATES, 2010; SUNG, JUN, LEE, 2009). About the computer assistive technologies we are also found records in the literature as a system interface that allows screen readers to interact with Second Life (Folmer, YUAN, SAPRE, 2009). This form enables the interaction of visually impaired with that network. The work of Ludi and Reichlmayr (2008) presents an educational intervention to supply difficulties of blind students at the university through the owner software LEGO Mindstorms NXT. Other educational studies of blind people converge on the use of games as mediation mechanisms (RAISAMO et al., 2007) in order to interact and through play, entertain and at the same time trying to teach some content that is included in the games.

The contributions of this study to the special school pedagogical practice of visually impaired children will be: Appropriation of information and communication technologies at the beginning of visually impaired childrem school life, provide better educational opportunities for blind children and provide digital inclusion. This study will help new educational policies development with the aim of expanding access to educational content for this audience. This study also may contribute to new academic research to investigate the pedagogical interventions in teaching visually impaired children mediated by computer technology and

The contributions of this study to the special school pedagogical practice of visually impaired children will be: Appropriation of information and communication technologies at the beginning of visually impaired childrem school life, provide better educational opportunities for blind children and provide digital inclusion. This study will help new educational policies development with the aim of expanding access to educational content for this audience. This study also may contribute to new academic research to investigate the pedagogical interventions in teaching visually impaired children mediated by computer technology and

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identifying the barriers that visually impaired children face in learning math in the literacy phase, thereby providing future studies to propose pedagogical mediations through an information system in an attempt to maximize the mathematics teaching for blind children.

identifying the barriers that visually impaired children face in learning math in the literacy phase, thereby providing future studies to propose pedagogical mediations through an information system in an attempt to maximize the mathematics teaching for blind children.

2. Dosvox

2. Dosvox

For the Electronic Computer Nucleus (NCE) of the Federal University of Rio de Janeiro (2002), DOSVOX is a system for microcomputers PC line that communicates with the user via speech synthesis, thus enabling the use of computers by the visually impaired. The system performs communication with the visually impaired through voice synthesis in Portuguese. Unlike other systems aimed at visually impaired, Dosvox has on its man-machine communication simplicity, taking into account the specificities and limitations of disabled people and establishing a friendly dialogue through various programs with their adaptive interfaces. Many sound messages of DOSVOX are made in recorded human voice, so it is a system with a low rate of stress for the user, even with prolonged use.

For the Electronic Computer Nucleus (NCE) of the Federal University of Rio de Janeiro (2002), DOSVOX is a system for microcomputers PC line that communicates with the user via speech synthesis, thus enabling the use of computers by the visually impaired. The system performs communication with the visually impaired through voice synthesis in Portuguese. Unlike other systems aimed at visually impaired, Dosvox has on its man-machine communication simplicity, taking into account the specificities and limitations of disabled people and establishing a friendly dialogue through various programs with their adaptive interfaces. Many sound messages of DOSVOX are made in recorded human voice, so it is a system with a low rate of stress for the user, even with prolonged use.

DOSVOX has compatibility with most existing speech synthesizers, as it uses the SAPI standardized interface of Windows. This ensures that you can purchase on the market more modern speech synthesis systems and closer to the human voice, which lends to DOSVOX an excellent quality of reading.

DOSVOX has compatibility with most existing speech synthesizers, as it uses the SAPI standardized interface of Windows. This ensures that you can purchase on the market more modern speech synthesis systems and closer to the human voice, which lends to DOSVOX an excellent quality of reading.

Figure 1: DOSVOX initial Interface

Figure 1: DOSVOX initial Interface

3. MiniMatecaVox

3. MiniMatecaVox

MiniMatecaVox system was developed considering the information coming from interviews with professionals from regular public education institutions and from professional educational assistance institutions specialized in teaching blind people, besides considering the research found in this study literature review. MiniMatecaVox is a mathematical application to be used as an additional resource in math classes at the first year of elementary school. The programming logic has been prepared for visually impaired student together with the teacher being able to perform mathematical activities in accordance with the proposals of an elementary math textbook.

MiniMatecaVox system was developed considering the information coming from interviews with professionals from regular public education institutions and from professional educational assistance institutions specialized in teaching blind people, besides considering the research found in this study literature review. MiniMatecaVox is a mathematical application to be used as an additional resource in math classes at the first year of elementary school. The programming logic has been prepared for visually impaired student together with the teacher being able to perform mathematical activities in accordance with the proposals of an elementary math textbook.

All application activities were prepared using human voices, in order to make the visually impaired child’s experience more enjoyable using the system as a blind person exposed long time with the synth voices makes experience very tiring and discourages user to continue to use the application. As will children who use the system, the activities were designed to create a playful and fun environment where the student can find different environments and occasions that are part of students everyday life their family, leading them to find

All application activities were prepared using human voices, in order to make the visually impaired child’s experience more enjoyable using the system as a blind person exposed long time with the synth voices makes experience very tiring and discourages user to continue to use the application. As will children who use the system, the activities were designed to create a playful and fun environment where the student can find different environments and occasions that are part of students everyday life their family, leading them to find

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meaning in activities that student are doing, (later situations will be presented with examples of exercises that mean the moments are spent with the use of MiniMatecaVox) making the most productive teaching and developing in visually impaired children motivation for the study of mathematics, this discipline, left side for the visually impaired, for lack of resources to enable equal learning conditions compared to sighted children.

meaning in activities that student are doing, (later situations will be presented with examples of exercises that mean the moments are spent with the use of MiniMatecaVox) making the most productive teaching and developing in visually impaired children motivation for the study of mathematics, this discipline, left side for the visually impaired, for lack of resources to enable equal learning conditions compared to sighted children.

The system uses human voices for submission of activities and their responses, so the experience becomes more enjoyable for users. These voices are recorded through the system Text Aloud, which generates an audio file that the system calls according to the activities. The MiniMatecaVox was developed within the Dosvox and the JogaVox, system inside Dosvox, proceeds were used to having your goals accomplished. Also the environment Borland Delphi 7 for programming some features in order to improve the user experience using the system. MiniMatecaVox will be distributed free of charge and can be changed by anyone without the author's permission. It has the technical limitation of only being used within the Dosvox environment, therefore a prerequisite for its operation. In the sequel we present the access screens Jogavox and home screens MiniMatecaVox.

The system uses human voices for submission of activities and their responses, so the experience becomes more enjoyable for users. These voices are recorded through the system Text Aloud, which generates an audio file that the system calls according to the activities. The MiniMatecaVox was developed within the Dosvox and the JogaVox, system inside Dosvox, proceeds were used to having your goals accomplished. Also the environment Borland Delphi 7 for programming some features in order to improve the user experience using the system. MiniMatecaVox will be distributed free of charge and can be changed by anyone without the author's permission. It has the technical limitation of only being used within the Dosvox environment, therefore a prerequisite for its operation. In the sequel we present the access screens Jogavox and home screens MiniMatecaVox.

Figure 2: Starting MiniMatecaVox

Figure 2: Starting MiniMatecaVox

Figure 3: Selecting Classes

Figure 3: Selecting Classes

4. Mathematics education through MiniMatecaVox

4. Mathematics education through MiniMatecaVox

MiniMatecaVox consists of twenty classes, each class has 15 activities, so the system will have 300 mathematical activities, all part of the mathematical content for the first year of elementary school. In this section, we present activity class number one, where through it we can have a comprehensive understanding of the system and its logical presentation of all other activities, and to understand the structure of the system as a whole.

MiniMatecaVox consists of twenty classes, each class has 15 activities, so the system will have 300 mathematical activities, all part of the mathematical content for the first year of elementary school. In this section, we present activity class number one, where through it we can have a comprehensive understanding of the system and its logical presentation of all other activities, and to understand the structure of the system as a whole.

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Figure 4: MiniMatecaVox First activity

Figure 4: MiniMatecaVox First activity

The first activity of class number one, after the choice of the class by the teacher, the visually impaired student hear a human voice text that is in the picture above and after hearing and understanding what was required, with or without teacher intervention, students type the response where the mouse cursor is flashing in the lower left corner of the screen sequentially tighten the enter and awaits the next system response, let alone if the result entered by the student is correct or not. Being correct, the system will congratulate the student and proceeds to the next activity, if wrong, the system will trigger an audio with the explanation of the activity and / or ask for a student to ask the teacher a statement to explain the activity.

The first activity of class number one, after the choice of the class by the teacher, the visually impaired student hear a human voice text that is in the picture above and after hearing and understanding what was required, with or without teacher intervention, students type the response where the mouse cursor is flashing in the lower left corner of the screen sequentially tighten the enter and awaits the next system response, let alone if the result entered by the student is correct or not. Being correct, the system will congratulate the student and proceeds to the next activity, if wrong, the system will trigger an audio with the explanation of the activity and / or ask for a student to ask the teacher a statement to explain the activity.

Figure 5: Following the first activity of the MiniMatecaVox

Figure 5: Following the first activity of the MiniMatecaVox

When the student hit the activity, a message with the above description will be presented by the system, the message audio is done with the voice of a child in the same age group of MiniMatecaVox users, saying "Congratulations !! You hit!! ", thus encouraging the child to continue doing activities.

When the student hit the activity, a message with the above description will be presented by the system, the message audio is done with the voice of a child in the same age group of MiniMatecaVox users, saying "Congratulations !! You hit!! ", thus encouraging the child to continue doing activities.

When by chance the student miss the activity, for not understanding better or type wrong answers, the system will trigger an audio asking the student to try again with the help of the teacher, or audio play containing the result of the activity and the explanation to reach the same result.

When by chance the student miss the activity, for not understanding better or type wrong answers, the system will trigger an audio asking the student to try again with the help of the teacher, or audio play containing the result of the activity and the explanation to reach the same result.

5. Testing MiniMatecaVox

5. Testing MiniMatecaVox

For testing the usability and application efficiency, we use the participatory heuristics evaluation. Participatory heuristic evaluation is a systems usability technique where tests are performed individually or with groups of people, users, to identify possible problems in projects or even in systems (MULLER et al., 1998). This review does not require a range of features that are typically used in usability testing, so it is a simple technique, faster and less costly, based on approximate and less accurate methods. In this research, we used the observation of the use of the system resources.

For testing the usability and application efficiency, we use the participatory heuristics evaluation. Participatory heuristic evaluation is a systems usability technique where tests are performed individually or with groups of people, users, to identify possible problems in projects or even in systems (MULLER et al., 1998). This review does not require a range of features that are typically used in usability testing, so it is a simple technique, faster and less costly, based on approximate and less accurate methods. In this research, we used the observation of the use of the system resources.

According to Chen and Macredie (2005) cited by Silveira (2012), within the software domain, usability is the term used to define the practicality and convenience with which users interact with a system, service or product. Thus, the heuristic evaluation technique measures this usability through specific concepts, thus, fast

According to Chen and Macredie (2005) cited by Silveira (2012), within the software domain, usability is the term used to define the practicality and convenience with which users interact with a system, service or product. Thus, the heuristic evaluation technique measures this usability through specific concepts, thus, fast

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and effective to evaluate the interface of software. The process consists in the performance of an expert evaluation of interfaces that performs the analysis based on principles (heuristics) recognized software interfaces.

and effective to evaluate the interface of software. The process consists in the performance of an expert evaluation of interfaces that performs the analysis based on principles (heuristics) recognized software interfaces.

For evaluating MiniMatecaVox, we used researcher’s observation that was based on the fill of a form containing points that are important to good uses of the software and teachers who accompanied the software testing. The objectives of these tests were: to validate the system showing the impressions and observations of those involved in the process. Following the results are presented.

For evaluating MiniMatecaVox, we used researcher’s observation that was based on the fill of a form containing points that are important to good uses of the software and teachers who accompanied the software testing. The objectives of these tests were: to validate the system showing the impressions and observations of those involved in the process. Following the results are presented.

Table 1. Scenario of mathematics teaching

Table 1. Scenario of mathematics teaching

Education Professionals

Do you use any software to assist in teaching mathematics ?

Do you use any assistive technology to aid in teaching mathematics ?

Would you use some software to help in teaching mathematics ?

Do your students have difficulties in learning mathematics?

Do you believe that software can facilitate the mathematics teaching?

Do you use any software to mediate teaching?

Education Professionals

Do you use any software to assist in teaching mathematics ?

Do you use any assistive technology to aid in teaching mathematics ?

Would you use some software to help in teaching mathematics ?

Do your students have difficulties in learning mathematics?

Do you believe that software can facilitate the mathematics teaching?

Do you use any software to mediate teaching?

Teacher 1

NO

YES

YES

YES

YES

YES

Teacher 1

NO

YES

YES

YES

YES

YES

Teacher 2

NO

YES

YES

YES

Teacher 3 Teacher 4

NO NO

YES YES

YES YES

YES YES

YES

YES

Teacher 2

NO

YES

YES

YES

YES

YES

YES YES

YES NO

Teacher 3 Teacher 4

NO NO

YES YES

YES YES

YES YES

YES YES

YES NO

Analyzing the data from the table above, we identified that today no professional interviewed works with any software to assist at mathematics teaching, but all somehow have an assistive technology assisting teachers in the course of its duties as teachers. One of the most encouraging data is that all respondents are willing to use software to help them in teaching, showing that these professionals are open to cooperation for the development of solutions that can add value to math classes, in addition, 3 of 4 respondents use some software to mediate in some way, their own way of teaching.

Analyzing the data from the table above, we identified that today no professional interviewed works with any software to assist at mathematics teaching, but all somehow have an assistive technology assisting teachers in the course of its duties as teachers. One of the most encouraging data is that all respondents are willing to use software to help them in teaching, showing that these professionals are open to cooperation for the development of solutions that can add value to math classes, in addition, 3 of 4 respondents use some software to mediate in some way, their own way of teaching.

The software evaluation summary is presented in the table below, where we can observe the responses of users who participated in the system test phase. A comprehensive analysis of the observed data and answered by the participants, we consider that the system is suitable for the initial pedagogical needs of mathematics teaching and therefore proved to be a useful tool to be used in math classes for visually impaired children.

The software evaluation summary is presented in the table below, where we can observe the responses of users who participated in the system test phase. A comprehensive analysis of the observed data and answered by the participants, we consider that the system is suitable for the initial pedagogical needs of mathematics teaching and therefore proved to be a useful tool to be used in math classes for visually impaired children.

Table 2. Teacher participant's questionnaire answers

Table 2. Teacher participant's questionnaire answers

Teacher participant's questionnaire answers Teacher 1 YES

NO

YES

NO

Teacher 4 YES

Question 1

X

X

X

Question 2

X

X

X

Question 3

X

X

Question 4

X

X

Question 5

X

Question 6

X

Question 7

X

Question 8

X

Teacher participant's questionnaire answers

Teacher 2 NO

YES

X X

X

X

NO

YES

NO

Teacher 4 YES

X

X

X

X

Question 2

X

X

X

X

Question 3

X

X

Question 4

X

X

X X

X

YES

Teacher 2

Question 1

X

X X

NO

X X

Teacher 1

X

Question 5

X

Question 6

X

Question 7

X X

NO

YES X

X X

X X

X

X X

X X

X

X X

X

X

X

X

X

Question 8

X

X

X

Question 9 X X The following issues were addressed:

X

X

Question 9 X X The following issues were addressed:

X

X

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NO

Were the activities appropriate for the age of the children using the system?; Was the interface of the activities accessible?; Was the menu to access the activities accessible?; Will you use MiniMatecaVox in future educational interventions?; Have you ever used other software to teach math to your students?; Did kids enjoy the activities?; Were parents interested to know the MiniMatecaVox?; Would you add some content in the MiniMatecaVox?; Did the software present any errors during activities?

Were the activities appropriate for the age of the children using the system?; Was the interface of the activities accessible?; Was the menu to access the activities accessible?; Will you use MiniMatecaVox in future educational interventions?; Have you ever used other software to teach math to your students?; Did kids enjoy the activities?; Were parents interested to know the MiniMatecaVox?; Would you add some content in the MiniMatecaVox?; Did the software present any errors during activities?

In general the system pleased its users and enabled, professionals of special education, have another resource to assist mathematics teaching. Regarding the issue nine, where all the teachers pointed out that the software has failed, this point refers to an activity that was with a wrong feedback. After the appointment of teachers, the error was corrected.

In general the system pleased its users and enabled, professionals of special education, have another resource to assist mathematics teaching. Regarding the issue nine, where all the teachers pointed out that the software has failed, this point refers to an activity that was with a wrong feedback. After the appointment of teachers, the error was corrected.

Figure 6: Researcher, Student and Teacher during the tests

Figure 6: Researcher, Student and Teacher during the tests

6. Final remarks and future works

6. Final remarks and future works

We know we have many challenges in inclusive education of blind children in the public schools of Brazil and in the world, and this initiative to allow any school in the world can provide unrestricted access to visually impaired children, makes us understand that we can move forward on initiatives to support more pedagogical biases to the ongoing construction of quality inclusive education to all visually impaired child. However we understand that this small advance depends on regional initiatives of educational professionals, and proactivity of the school managers for the realization of the study presented here.

We know we have many challenges in inclusive education of blind children in the public schools of Brazil and in the world, and this initiative to allow any school in the world can provide unrestricted access to visually impaired children, makes us understand that we can move forward on initiatives to support more pedagogical biases to the ongoing construction of quality inclusive education to all visually impaired child. However we understand that this small advance depends on regional initiatives of educational professionals, and proactivity of the school managers for the realization of the study presented here.

Future work: In the course of this work we can see that a lot of inclusive educational grant for blind children can be added in MiniMatecaVox features and in that sense we intend to develop new applications with playful strictly educational profile suitable for digital inclusion, assistance in literacy and mathematics education of these children, in order to expand access to educational resources available digitally ensuring a level playing field in the fundamental learning in the early grades of primary school. Before any computer application, studies of educational interventions assisted by computer assistive technologies aimed exclusively for blind children at the beginning of their school life will be conducted and new research will emerge proposing solutions to the problems in the inclusion of the visually impaired in public schools in Brazil and in the world.

Future work: In the course of this work we can see that a lot of inclusive educational grant for blind children can be added in MiniMatecaVox features and in that sense we intend to develop new applications with playful strictly educational profile suitable for digital inclusion, assistance in literacy and mathematics education of these children, in order to expand access to educational resources available digitally ensuring a level playing field in the fundamental learning in the early grades of primary school. Before any computer application, studies of educational interventions assisted by computer assistive technologies aimed exclusively for blind children at the beginning of their school life will be conducted and new research will emerge proposing solutions to the problems in the inclusion of the visually impaired in public schools in Brazil and in the world.

7. References

7. References

Brasil. (2010). Instituto Brasileiro de Geografia Estatística. IBGE. Censo 2010, Retrieved July 09, 2010, from http://www.censo2010.ibge.gov.br/resultados_do_censo2010.php

Brasil. (2010). Instituto Brasileiro de Geografia Estatística. IBGE. Censo 2010, Retrieved July 09, 2010, from http://www.censo2010.ibge.gov.br/resultados_do_censo2010.php

NCE UFRJ. Projeto DOSVOX. Núcleo de Computação Eletrônica da Universidade Federal do Rio de Janeiro. (2002). Retrieved October 20, 2013 from http://intervox.nce.ufrj.br/dosvox>. Acesso em: 20/10/2013.

NCE UFRJ. Projeto DOSVOX. Núcleo de Computação Eletrônica da Universidade Federal do Rio de Janeiro. (2002). Retrieved October 20, 2013 from http://intervox.nce.ufrj.br/dosvox>. Acesso em: 20/10/2013.

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Chen, SY. Macredie, RD. (2005). The assessment of usability of electronic shopping: a heuristic evaluation. International Journal of Information Management 25 (2005) 516- 532.

Chen, SY. Macredie, RD. (2005). The assessment of usability of electronic shopping: a heuristic evaluation. International Journal of Information Management 25 (2005) 516- 532.

Folmer, E. Yuan, B. Carr, D. Sapre, M. (2009). TextSL : A Command-Based Virtual World Interface for the Visually Impaired. In Proceedings of the 11th international ACM SIGACCESS conference on Computers and Accessibility (ASSETS'09), Pages 59-66.

Folmer, E. Yuan, B. Carr, D. Sapre, M. (2009). TextSL : A Command-Based Virtual World Interface for the Visually Impaired. In Proceedings of the 11th international ACM SIGACCESS conference on Computers and Accessibility (ASSETS'09), Pages 59-66.

Kobal, G, D. Bobinski, M.(2005). Perspectives of inclusive education of pupils with visual impairments in Slovenia. International Congress Series, v. 1282, p. 864-868.

Kobal, G, D. Bobinski, M.(2005). Perspectives of inclusive education of pupils with visual impairments in Slovenia. International Congress Series, v. 1282, p. 864-868.

Ludi, S. Reichlmayr, T. (2008). Developing inclusive outreach activities for students with visual impairments. Proceedings of the 39th SIGCSE technical symposium on Computer science education - SIGCSE ’08, p. 439.

Ludi, S. Reichlmayr, T. (2008). Developing inclusive outreach activities for students with visual impairments. Proceedings of the 39th SIGCSE technical symposium on Computer science education - SIGCSE ’08, p. 439.

Müller, J. M., Matheson, L., Page, C. & Gallup, R. (1998). Participatory Heuristic Evaluation. Interactions. september + october 1998. V. 5, Issue 5, ACM Press, (1998), 13-18

Müller, J. M., Matheson, L., Page, C. & Gallup, R. (1998). Participatory Heuristic Evaluation. Interactions. september + october 1998. V. 5, Issue 5, ACM Press, (1998), 13-18

Raisamo, R. Patomaki, S. Hasu, M.; Pasto, V. (2007). Design and evaluation of a tactile memory game for visually impaired children. Interacting with Computers, v. 19, n. 2, p. 196–205.

Raisamo, R. Patomaki, S. Hasu, M.; Pasto, V. (2007). Design and evaluation of a tactile memory game for visually impaired children. Interacting with Computers, v. 19, n. 2, p. 196–205.

Silveira, H. M. (2012) MATVOX-02: extensão de recursos e planos de avaliação de um aplicativo matemático programável para deficientes visuais. Dissertação de Mestrado. Faculdade de Engenharia Elétrica e de Computação da Universidade Estadual de Campinas

Silveira, H. M. (2012) MATVOX-02: extensão de recursos e planos de avaliação de um aplicativo matemático programável para deficientes visuais. Dissertação de Mestrado. Faculdade de Engenharia Elétrica e de Computação da Universidade Estadual de Campinas

Simsek, Ö. Altun, E. Ates, A. (2010). Developing ICT skills of visually impaired learners. Procedia - Social and

Simsek, Ö. Altun, E. Ates, A. (2010). Developing ICT skills of visually impaired learners. Procedia - Social and

Behavioral Sciences, v. 2, n. 2, p. 4655–4661, 2010.

Behavioral Sciences, v. 2, n. 2, p. 4655–4661, 2010.

Sung, M. Y. Jun, K. Ji, D.; Lee, H.; Kim, K. (2009). Touchable Video and Tactile Audio. 11th IEEE International Symposium on Multimedia, p. 425–431, 2009. Ieee.

Sung, M. Y. Jun, K. Ji, D.; Lee, H.; Kim, K. (2009). Touchable Video and Tactile Audio. 11th IEEE International Symposium on Multimedia, p. 425–431, 2009. Ieee.

Author’s Profile

Author’s Profile

Henderson Tavares de Souza is an informatics teacher, he has a degree in technology in computer science with emphasis in business management from Jundiaí State School of Technology (2006), He is an Specialist Methodology Distance Learning Education and Master in Electrical Engineering in the area of Computer Engineering from Faculty of Electrical Engineering and Computer, Unicamp, Brazil (2014). He is an informatics teacher in elementary school, teaching to children from 6 to 10 years old. He is also a teacher at Centro Paula Souza in technical courses, informatics and informatics for internet. He has experience in information technology applied in primary education with emphasis on educational technology, systems for blind accessibility, web applications, web servers, private networks and remote monitoring. He is currently a doctorate student at School of Electrical and Computer Engineering program - Unicamp (Campinas, Brazil) where research on information systems for teaching visually impaired children

Henderson Tavares de Souza is an informatics teacher, he has a degree in technology in computer science with emphasis in business management from Jundiaí State School of Technology (2006), He is an Specialist Methodology Distance Learning Education and Master in Electrical Engineering in the area of Computer Engineering from Faculty of Electrical Engineering and Computer, Unicamp, Brazil (2014). He is an informatics teacher in elementary school, teaching to children from 6 to 10 years old. He is also a teacher at Centro Paula Souza in technical courses, informatics and informatics for internet. He has experience in information technology applied in primary education with emphasis on educational technology, systems for blind accessibility, web applications, web servers, private networks and remote monitoring. He is currently a doctorate student at School of Electrical and Computer Engineering program - Unicamp (Campinas, Brazil) where research on information systems for teaching visually impaired children

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Women’s health and hygiene issues – Importance and opportunities at the bottom of the pyramid Dr. Asha Bhatia1, Dr. S.N.V. Sivakumar2 1,2

K. J. Somaiya Institute of Management Studies & Research, Mumbai, India 1

2

[email protected], [email protected]

Abstract In India‟s huge population there lies an opportunity – a solution which can be addressed through the-triplebottom-line, a well-knit combination of financial success, environmental stewardship and social justice. The large population can be looked at, as a consumer segment waiting to be tapped and can provide scope for exploring future opportunities. This will not only give an affordable product to the underprivileged but also a sense of dignity. According to the information available, 25.7% of India‟s population lies below the poverty line and a total of 62% of the women in India lie in the child bearing age group. These women resort to orthodox ways like using tattered cloth, ash etc. The unhygienic means and the ignorance of the women in this age group leads to problems like reproductive tract infections, dropping out of schools and absenting from workplace. The government is doing its bit to tackle the health and hygiene issue of women. It has approved a scheme to manufacture low cost sanitary napkins and is supporting self-help groups. But that is not sufficient to take care of the magnitude of the problem. There lies a need for some “Social Super Heroes” to enter the scene and fight out the evils. Enterprises like SAKHI, Jayaashree Industries, Aakar Innovations manufacture low cost hygienic sanitary napkins, working in different parts of India to solve the problem of women sanitation. Project Prerna, a social entrepreneurship project, was envisioned to bridge the huge gap between the government„s effort and the population in need. The projectwas set up with a focus to enlighten women belonging to lower strata `of society about the importance of sanitation and hygiene .A manufacturing facility based in Nareshwadi, a small village at the outskirts of Mumbai makes affordable biodegradable sanitary-napkins for the underprivileged. The project started with conducting a survey of 150 BPL women in urban slums of Mumbai to understand the factors affecting women‟s health and hygiene issues. From the study it was observed that women lacked the awareness and significant support from their family. It also found that price played an important role while making purchases. Women had inhibitions to buy napkins from stores and health issues of women were still not discussed openly. Project Prerna will be working under GiriVanVasi Trust (GVT) as for-profit project, to create healthy, self-reliant social entrepreneurs through a sustainable business model. There are many challenges that the project faces in terms of changing the existing mind set of the women that women‟s hygiene solutions are expensive and cumbersome to dispose of. Funding of the project and sourcing of raw materials on a continuous basis is also a problem. The project is currently based in the rural area. The way ahead can be to replicate the model in the urban set up so as to benefit a larger group of women. Partnering with state governments may help increase the outreach. Key words: triple bottom line, opportunities, social entrepreneurs, sustainable business model.

1. Introduction “The fastest way to mobilize the world is to mobilize the women of the world” – Charles Malik Barely a decade ago, success of a business was measured by creating economic value but in a dynamic and competitive setup like today, it is extremely imperative to bring social and environmental factors into the picture. The term popularly known as theTriple bottom line is a well-knit combination of financial success, environmental stewardship and social justice. Creating an intelligently designed product with a high quality material and ethical means is certainly a best practice corporate model of the new global consciousness. But what’s new in it? It can be said, “something which is insufficient”. This model has to take commitment to a deeper level thereby ensuring that the designs, products and methods will preserve, protect, perpetuate earth’s fragile resources and simultaneously generate above average returns. Let the smiles pass on, from the investors to our future generations.

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To stay afloat we need core competence but if we add a strategy to it, it becomes a competitive advantage, an exact requirement to move to the top. The strategy here is, The Triple bottom line. Our objective is not to achieve profits but economic profits. i.e. adding value to profits. Many corporations have started following suit since the 90s, the principles of triple bottom line have become robust as the consumers and social media are keeping track of companies which are responsible for world citizens and which are not. A company which practices in solid stewardship of the earth, engages in local community activism and ethically deals with corporate money issues is bound to cherish larger competitive gain and superior brand recognition. One of the best ways to increase brand loyalty is to make the consumers feel that their money directly goes towards impacting local workers and their families. The same feeling motivates the company’s own workforce to volunteer and create a positive community impact by making it a part of their team process and company ethic to build a sustainable corporate model. This making of a model is not a choice anymore, but an essential component to enhance brand recognition and profitability regardless of the past performance or size of the company. Companies like Google and Starbucks have already begun with a campaign of innovative impudence when it comes to social and environmental causes; consumers monitor the commitment of such companies to their promise of environmental stewardship using online social media, Nike’s European headquarters was built with the goal of zero negative impact on environment, Companies like Steel Case have increased savings by reducing waste. There are other players which have made significant economic savings by the use of alternative energy production systems and increased pollution reduction mechanisms to fund for other projects. Such savings from investments in sustainability are self-paying as many case studies show with inspiring detail.

To stay afloat we need core competence but if we add a strategy to it, it becomes a competitive advantage, an exact requirement to move to the top. The strategy here is, The Triple bottom line. Our objective is not to achieve profits but economic profits. i.e. adding value to profits. Many corporations have started following suit since the 90s, the principles of triple bottom line have become robust as the consumers and social media are keeping track of companies which are responsible for world citizens and which are not. A company which practices in solid stewardship of the earth, engages in local community activism and ethically deals with corporate money issues is bound to cherish larger competitive gain and superior brand recognition. One of the best ways to increase brand loyalty is to make the consumers feel that their money directly goes towards impacting local workers and their families. The same feeling motivates the company’s own workforce to volunteer and create a positive community impact by making it a part of their team process and company ethic to build a sustainable corporate model. This making of a model is not a choice anymore, but an essential component to enhance brand recognition and profitability regardless of the past performance or size of the company. Companies like Google and Starbucks have already begun with a campaign of innovative impudence when it comes to social and environmental causes; consumers monitor the commitment of such companies to their promise of environmental stewardship using online social media, Nike’s European headquarters was built with the goal of zero negative impact on environment, Companies like Steel Case have increased savings by reducing waste. There are other players which have made significant economic savings by the use of alternative energy production systems and increased pollution reduction mechanisms to fund for other projects. Such savings from investments in sustainability are self-paying as many case studies show with inspiring detail.

No company would blindly want to delve into the concept of Triple bottom line, apply its principles and deploy the necessary resources without comprehensive planning and debate. An investment is meaningless without a market.There is a gap in the market, but is there a market in that gap?Companies have to be cautious! With the help of this research paper, gaps in the market and markets in the gaps have been explored. These mainly cover the women’s health care issues.

No company would blindly want to delve into the concept of Triple bottom line, apply its principles and deploy the necessary resources without comprehensive planning and debate. An investment is meaningless without a market.There is a gap in the market, but is there a market in that gap?Companies have to be cautious! With the help of this research paper, gaps in the market and markets in the gaps have been explored. These mainly cover the women’s health care issues.

2. Objectives

2. Objectives

There is a need to explore the health issues faced by women since their inception and the efforts of government to tackle these. Government of India has launched several women specific health programmes such as the “Scheme for promotion of menstrual hygiene among adolescent girls in rural India” but still, there lie gaps, in the implementation of such schemes and these have to be analyzed thoroughly. Women form a huge chunk of the Indian population, clearly indicating big untapped markets. The attention of the companies which plan to fuel their future growth engines has to be diverted towards these markets. This is an initial step in pursuit of deriving maximum value from the triple bottom line.

There is a need to explore the health issues faced by women since their inception and the efforts of government to tackle these. Government of India has launched several women specific health programmes such as the “Scheme for promotion of menstrual hygiene among adolescent girls in rural India” but still, there lie gaps, in the implementation of such schemes and these have to be analyzed thoroughly. Women form a huge chunk of the Indian population, clearly indicating big untapped markets. The attention of the companies which plan to fuel their future growth engines has to be diverted towards these markets. This is an initial step in pursuit of deriving maximum value from the triple bottom line.

A few, high potential start-ups with minimal resources have already entered this arena and are growing by leaps and bounds. Thorough study of their business model is essential. If large corporations start investing and partnering with these start-ups they can not only create enormous value but work in unison to meet common social objectives. There is an urging need to discover a bond between them.

A few, high potential start-ups with minimal resources have already entered this arena and are growing by leaps and bounds. Thorough study of their business model is essential. If large corporations start investing and partnering with these start-ups they can not only create enormous value but work in unison to meet common social objectives. There is an urging need to discover a bond between them.

3. Government’s contribution

3. Government’s contribution

The Government of India has launched numerous schemes for women under the National Rural Health Mission (NRHM). It is a leap forward in establishing effective integration and convergence of health services and affecting architectural correction in the health care delivery system in India. There are several schemes launched under the Ministry of Health and Ministry of Women and Child Development

The Government of India has launched numerous schemes for women under the National Rural Health Mission (NRHM). It is a leap forward in establishing effective integration and convergence of health services and affecting architectural correction in the health care delivery system in India. There are several schemes launched under the Ministry of Health and Ministry of Women and Child Development

Janani SurakshaYojana (JSY) is a safe motherhood intervention under the National Rural Health Mission (NRHM) being implemented with the objective of reducing maternal and neo-natal mortality by promoting institutional delivery among the poor pregnant women. The scheme, launched on 12th April 2005, is being implemented in all states and UTs with special focus on low performing states. JSY is a 100 % centrally sponsored scheme and it integrates cash assistance with delivery and post-delivery care. The success of the scheme is determined by the increase in institutional delivery among the poor families.

Janani SurakshaYojana (JSY) is a safe motherhood intervention under the National Rural Health Mission (NRHM) being implemented with the objective of reducing maternal and neo-natal mortality by promoting institutional delivery among the poor pregnant women. The scheme, launched on 12th April 2005, is being implemented in all states and UTs with special focus on low performing states. JSY is a 100 % centrally sponsored scheme and it integrates cash assistance with delivery and post-delivery care. The success of the scheme is determined by the increase in institutional delivery among the poor families.

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The Integrated Child Development Services Programme (ICDS) aims at providing services to preschool children in an integrated manner so as to ensure proper growth and development of children in rural, tribal and slum areas. ICDS is a centrally sponsored scheme launched on 2nd October 1975 in 33 Community Development Blocks; ICDS today represents one of the world’s largest programmes for early childhood development. ICDS is the foremost symbol of India’s commitment to her children – India’s response to the challenge of providing pre-school education on one hand and breaking the vicious cycle of malnutrition, morbidity, reduced learning capacity and mortality, on the other.

The Integrated Child Development Services Programme (ICDS) aims at providing services to preschool children in an integrated manner so as to ensure proper growth and development of children in rural, tribal and slum areas. ICDS is a centrally sponsored scheme launched on 2nd October 1975 in 33 Community Development Blocks; ICDS today represents one of the world’s largest programmes for early childhood development. ICDS is the foremost symbol of India’s commitment to her children – India’s response to the challenge of providing pre-school education on one hand and breaking the vicious cycle of malnutrition, morbidity, reduced learning capacity and mortality, on the other.

The National Credit Fund for Women known as Rashtriya Mahila Kosh (RMK) was set up in 1993, as a national-level organization under the Ministry of Women and Child Development, Government of India to meet the credit needs of poor and asset less women in the informal sector.

The National Credit Fund for Women known as Rashtriya Mahila Kosh (RMK) was set up in 1993, as a national-level organization under the Ministry of Women and Child Development, Government of India to meet the credit needs of poor and asset less women in the informal sector.

The Ministry of Women and Child Development, Government of India, in the year 2000, came up with a scheme called Kishori Shakti Yojana(KSY), which was implemented using the infrastructure of the Integrated Child Development Services Scheme (ICDS). The objective of this scheme was to improve the nutrition and health status of girls in the age‐group of 11 to 18 years, to equip them to improve and upgrade their home‐based and vocational skills, and to promote their overall development, including awareness about their health, personal hygiene, nutrition, family welfare and management.

The Ministry of Women and Child Development, Government of India, in the year 2000, came up with a scheme called Kishori Shakti Yojana(KSY), which was implemented using the infrastructure of the Integrated Child Development Services Scheme (ICDS). The objective of this scheme was to improve the nutrition and health status of girls in the age‐group of 11 to 18 years, to equip them to improve and upgrade their home‐based and vocational skills, and to promote their overall development, including awareness about their health, personal hygiene, nutrition, family welfare and management.

The Nutrition Programme for Adolescent Girls (NPAG) was initiated as a pilot project in the year 2002‐03 in 51 identified districts across the country to address the problem of under‐nutrition among adolescent girls (AG)s. Under this programme, 6 kg of free food grain per beneficiary per month was given to undernourished AGs.

The Nutrition Programme for Adolescent Girls (NPAG) was initiated as a pilot project in the year 2002‐03 in 51 identified districts across the country to address the problem of under‐nutrition among adolescent girls (AG)s. Under this programme, 6 kg of free food grain per beneficiary per month was given to undernourished AGs.

The “Women Empowerment and Livelihood Programme in Mid Gangetic Plains” also called Priyadarshini programme envisages holistic empowerment of 1,08,000 poor women and adolescent girls through formation of 7200 SHGs. The scheme originally being implemented in six districts including four districts in Uttar Pradesh The eight yearlong scheme assisted by IFAD and Govt. of India has a total outlay of US $ 32.73 million [IFAD loan – US $ 30 million and support from Govt. of India – US $2.73 million]. The Ministry of Women and Child Development [MWCD], Govt. of India is the nodal Ministry and NABARD is the Lead programme agency for implementation of the scheme

The “Women Empowerment and Livelihood Programme in Mid Gangetic Plains” also called Priyadarshini programme envisages holistic empowerment of 1,08,000 poor women and adolescent girls through formation of 7200 SHGs. The scheme originally being implemented in six districts including four districts in Uttar Pradesh The eight yearlong scheme assisted by IFAD and Govt. of India has a total outlay of US $ 32.73 million [IFAD loan – US $ 30 million and support from Govt. of India – US $2.73 million]. The Ministry of Women and Child Development [MWCD], Govt. of India is the nodal Ministry and NABARD is the Lead programme agency for implementation of the scheme

The “Protection of Women from Domestic Violence Act, 2005.” act by the government had provisions of training for protection officers, establishment of counseling centers for women affected by violence and creating awareness in the community are vital steps. The government has also launched several microcredit schemes for economic and social empowerment of women.

The “Protection of Women from Domestic Violence Act, 2005.” act by the government had provisions of training for protection officers, establishment of counseling centers for women affected by violence and creating awareness in the community are vital steps. The government has also launched several microcredit schemes for economic and social empowerment of women.

In a bid to promote menstrual hygiene among adolescent girls, the Government of India, in 2010, approved an INR 150 Cr. Scheme for “Promotion of Menstrual hygiene among adolescent girls of rural India”, to increase access to and use of high quality sanitary napkins to adolescent girls in rural areas. The scheme envisages supplying a pack of six sanitary napkins to Below Poverty Line (BPL) girls at a nominal cost of INR 1 per pack and to Above Poverty Line (APL) girls at INR 5 per pack (PIB, Government of India data). To source these sanitary napkins, Self Help groups (SHGs) have to be enabled to manufacture these or a competitive bidding process should be put in place. However SHG presence in Central, Northern & North Eastern States is not very strong and there have not been many bidders for this cause.

In a bid to promote menstrual hygiene among adolescent girls, the Government of India, in 2010, approved an INR 150 Cr. Scheme for “Promotion of Menstrual hygiene among adolescent girls of rural India”, to increase access to and use of high quality sanitary napkins to adolescent girls in rural areas. The scheme envisages supplying a pack of six sanitary napkins to Below Poverty Line (BPL) girls at a nominal cost of INR 1 per pack and to Above Poverty Line (APL) girls at INR 5 per pack (PIB, Government of India data). To source these sanitary napkins, Self Help groups (SHGs) have to be enabled to manufacture these or a competitive bidding process should be put in place. However SHG presence in Central, Northern & North Eastern States is not very strong and there have not been many bidders for this cause.

Some of the schemes mentioned above have done tremendously well but a few others are still facing problems in terms of funding and management. It will be partially unfair to “accuse” the government for failing to deliver on such schemes. The onus is on the people of the nation to swing into action and as responsible citizens, support their democratically elected government to succeed in its ambitious programmes.

Some of the schemes mentioned above have done tremendously well but a few others are still facing problems in terms of funding and management. It will be partially unfair to “accuse” the government for failing to deliver on such schemes. The onus is on the people of the nation to swing into action and as responsible citizens, support their democratically elected government to succeed in its ambitious programmes.

There are a handful of young entrepreneurs who have carefully analyzed the gaps in the implementation of the schemes launched by the government and these social entrepreneurs are working in line with the objectives laid down by the government.

There are a handful of young entrepreneurs who have carefully analyzed the gaps in the implementation of the schemes launched by the government and these social entrepreneurs are working in line with the objectives laid down by the government.

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Jayaashree Industries

Jayaashree Industries

Mr. Muruganantham, founder of Jayaashree Industries, was the first one to develop machines that could produce sanitary napkins at a low cost. This man is popularly known as “The Menstrual Man”. Muruganantham built a viable and sustainable enterprise that could be run efficiently by the stakeholders at the grass-root level. The model reduces the players involved in the supply chain and the third person to handle the product from its inception is the consumer. This makes optimal use of micro-credit generated by a community. Sanitary napkins are produced in a “Small is Beautiful” model thus delivering livelihood, hygiene and dignity to poor women, and help them strengthen in the society. Jayaashree Industries has production capabilities in 23 states of India and has also extended these capabilities to countries like Nigeria, Ethiopia, Kenya Uganda, Nepal and Bangladesh.

Mr. Muruganantham, founder of Jayaashree Industries, was the first one to develop machines that could produce sanitary napkins at a low cost. This man is popularly known as “The Menstrual Man”. Muruganantham built a viable and sustainable enterprise that could be run efficiently by the stakeholders at the grass-root level. The model reduces the players involved in the supply chain and the third person to handle the product from its inception is the consumer. This makes optimal use of micro-credit generated by a community. Sanitary napkins are produced in a “Small is Beautiful” model thus delivering livelihood, hygiene and dignity to poor women, and help them strengthen in the society. Jayaashree Industries has production capabilities in 23 states of India and has also extended these capabilities to countries like Nigeria, Ethiopia, Kenya Uganda, Nepal and Bangladesh.

Vatsalya Foundation

Vatsalya Foundation

Vatsalya Foundation, under the brand name SAKHI, manufactures and distributes sanitary napkins across several districts in Gujarat, India. Vatsalya Foundation has come up with the first low cost incinerator with zero recurring cost of electricity. It also solves the issue of disposal of napkins.The incinerator named ASHUDHDHI NASHAK has been installed across many villages in Gujarat. Its design caters to three objectives: Cost effectiveness to enable increased affordability, Easy operation and No use of electricity.

Vatsalya Foundation, under the brand name SAKHI, manufactures and distributes sanitary napkins across several districts in Gujarat, India. Vatsalya Foundation has come up with the first low cost incinerator with zero recurring cost of electricity. It also solves the issue of disposal of napkins.The incinerator named ASHUDHDHI NASHAK has been installed across many villages in Gujarat. Its design caters to three objectives: Cost effectiveness to enable increased affordability, Easy operation and No use of electricity.

Aakar

Aakar

Aakar is a hybrid social enterprise comprised of Aakar Innovations and Aakar Social Ventures that enables women to produce and distribute affordable, high-quality, ~100% compostable sanitary napkins within their communities while simultaneously raising awareness and sensitization of menstrual hygiene management.Aakar Social Ventures is working hard to improve the awareness about menstruationand has also launched initiatives like Freedom from Shame which aims at raising awareness about menstrual hygiene management and related health issues to empower women to make well informed choices.

Aakar is a hybrid social enterprise comprised of Aakar Innovations and Aakar Social Ventures that enables women to produce and distribute affordable, high-quality, ~100% compostable sanitary napkins within their communities while simultaneously raising awareness and sensitization of menstrual hygiene management.Aakar Social Ventures is working hard to improve the awareness about menstruationand has also launched initiatives like Freedom from Shame which aims at raising awareness about menstrual hygiene management and related health issues to empower women to make well informed choices.

Project Prerna :EnactusSomaiya Social Cell

Project Prerna :EnactusSomaiya Social Cell

Project Prerna, `located at Dahanu, Maharastra, Indiastarted with an aim to develop a sustainable model to promote hygiene and health care in the tribalwomen. It works on a model which promotes women entrepreneurship,supported by a technology partner. The unit can produce close to 2400 napkins/day. The production process is operated by 10 women under the supervision of 2 supervisors. The marketing and selling of the product is done entirely by women who work as health workers in the nearby areas. This model ensures that women don’t have any inhibitions to ask for the product and as the network of the health workers is growing, so is the awareness in that area. Women’s involvement in production process, unit-management, marketing and selling of the product empowers them by providing them a livelihood. These biodegradable napkins are manufactured without the use of any plastic and thus are environment friendly.

Project Prerna, `located at Dahanu, Maharastra, Indiastarted with an aim to develop a sustainable model to promote hygiene and health care in the tribalwomen. It works on a model which promotes women entrepreneurship,supported by a technology partner. The unit can produce close to 2400 napkins/day. The production process is operated by 10 women under the supervision of 2 supervisors. The marketing and selling of the product is done entirely by women who work as health workers in the nearby areas. This model ensures that women don’t have any inhibitions to ask for the product and as the network of the health workers is growing, so is the awareness in that area. Women’s involvement in production process, unit-management, marketing and selling of the product empowers them by providing them a livelihood. These biodegradable napkins are manufactured without the use of any plastic and thus are environment friendly.

Project Prerna, clearly incorporates the Triple Bottom Line – improving the standard of living of the tribal women, creating an eco-friendly product and making profits. The initial setup cost for this project is INR 5,00,000 and breaks even into its third year.

Project Prerna, clearly incorporates the Triple Bottom Line – improving the standard of living of the tribal women, creating an eco-friendly product and making profits. The initial setup cost for this project is INR 5,00,000 and breaks even into its third year.

Preliminary Survey (Project Prerna)-

Preliminary Survey (Project Prerna)-

Study Tools and Technique: A survey was conducted of 150 women in the slums of Govandi, Mumbai where a pre-designed, pretested and structured questionnaire was used in the study. The data collection technique was done through personal interview of the subjects under study.

Study Tools and Technique: A survey was conducted of 150 women in the slums of Govandi, Mumbai where a pre-designed, pretested and structured questionnaire was used in the study. The data collection technique was done through personal interview of the subjects under study.

4. Methodology

4. Methodology

The purpose of the study and the nature of the information which had to be furnished were explained. The questionnaire included topics which were related to the awareness, the source of information regarding

The purpose of the study and the nature of the information which had to be furnished were explained. The questionnaire included topics which were related to the awareness, the source of information regarding

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hygienic practices, restrictions and mindset in the community about personal hygiene. It also included price factor of the products used by women. The demographic information included family details, parents’ education, occupation, housing conditions, house type, toilet facility, and water supply in the toilet was enquired and then documented. The chronological age and the age at menarche were also elucidated.

hygienic practices, restrictions and mindset in the community about personal hygiene. It also included price factor of the products used by women. The demographic information included family details, parents’ education, occupation, housing conditions, house type, toilet facility, and water supply in the toilet was enquired and then documented. The chronological age and the age at menarche were also elucidated.

5. Findings The key findings of the survey were:     

The key findings of the survey were:

Price plays an important role while making purchase decisions Women do not get the necessary support from household, both monetary & non-monetary Women have inhibitions to buy feminine health care products from store Very poor awareness on health hazards of using alternatives like rags & cloth Discussing the issue openly is still considered a taboo in our society

Health issues faced by women (Identified in the survey): 1. 2. 3. 4. 5. 6.

5. Findings

Nutritional deprivation leading to maternal complications, low birth weight babies and premature births Anaemia (45% of the respondents were affected by it) Eye disorders, chronic disabilities, asthma, diabetes and hypertension Abortion (Women were reluctant to discuss this topic) Problems during conception Urinary tract infections

    

Price plays an important role while making purchase decisions Women do not get the necessary support from household, both monetary & non-monetary Women have inhibitions to buy feminine health care products from store Very poor awareness on health hazards of using alternatives like rags & cloth Discussing the issue openly is still considered a taboo in our society

Health issues faced by women (Identified in the survey): 1. 2. 3. 4. 5. 6.

Nutritional deprivation leading to maternal complications, low birth weight babies and premature births Anaemia (45% of the respondents were affected by it) Eye disorders, chronic disabilities, asthma, diabetes and hypertension Abortion (Women were reluctant to discuss this topic) Problems during conception Urinary tract infections

Additional Findings

Additional Findings

Out of the total Indian population of 1,210,193,422 (1.2 billion) in year 2011 (Census of India 2011,Census info India Dashboard), the total population of females in India was approximately 586,469,174 (urban 181,298,564 and rural 405,170,610). Further, the overall percentage of females in India in the age group of 10-14 years was 10.3 % (urban 8.8 % and rural 10.8%) and the overall percentage of females in the 15-59 years was 62.8 % (urban 66.9% and rural 61.3 %) (Census of India 2011, Vital Statistics). The enormous number of population in this age group provides a huge opportunity to realize well- defined social motives.

Out of the total Indian population of 1,210,193,422 (1.2 billion) in year 2011 (Census of India 2011,Census info India Dashboard), the total population of females in India was approximately 586,469,174 (urban 181,298,564 and rural 405,170,610). Further, the overall percentage of females in India in the age group of 10-14 years was 10.3 % (urban 8.8 % and rural 10.8%) and the overall percentage of females in the 15-59 years was 62.8 % (urban 66.9% and rural 61.3 %) (Census of India 2011, Vital Statistics). The enormous number of population in this age group provides a huge opportunity to realize well- defined social motives.

The population of Indian women between the age group of 10-50 years represents a huge opportunity with respect to the feminine hygiene products. The feminine hygiene products which constitute of intimate wipes, panty liners, tampons and sanitary towels/ napkins, was an INR 11,316.8 million market in value terms as of year 2011 and the breakup of the market was as follows: Sanitary Towels or Napkins (INR 11,222.8 million), followed by panty liners (INR 65.1 million) and tampons (Indian Rupees 28.9 million) (Euromonitor International, 2012). The percentage value growth between the years 2006-11 was 14.3% for sanitary napkins or towels, 5.9% for panty liners and 6.3% for tampons (Euromonitor International, 2012). The Indian market has been ruled by MNCs with Procter & Gamble holding a 54.8% of the market share, followed by Johnson & Johnson with 33.5% of the market share, and Kimberly-Clark Lever Ltd holding 3.4% of the market share (Euromonitor International 2012). The leading brands in the Indian market are P&G brand Whisper (54.8% market share), J & J brands Stayfree and Carefree (30.8% and 1.4% market share respectively), and KimberlyClark Lever Ltd brand Kotex (3.4% market share) (Euromonitor International). Almost 92% of the market for feminine hygiene products is held by the multinationals like P&G, J&J, and Kimberly-Clark Lever Ltd

The population of Indian women between the age group of 10-50 years represents a huge opportunity with respect to the feminine hygiene products. The feminine hygiene products which constitute of intimate wipes, panty liners, tampons and sanitary towels/ napkins, was an INR 11,316.8 million market in value terms as of year 2011 and the breakup of the market was as follows: Sanitary Towels or Napkins (INR 11,222.8 million), followed by panty liners (INR 65.1 million) and tampons (Indian Rupees 28.9 million) (Euromonitor International, 2012). The percentage value growth between the years 2006-11 was 14.3% for sanitary napkins or towels, 5.9% for panty liners and 6.3% for tampons (Euromonitor International, 2012). The Indian market has been ruled by MNCs with Procter & Gamble holding a 54.8% of the market share, followed by Johnson & Johnson with 33.5% of the market share, and Kimberly-Clark Lever Ltd holding 3.4% of the market share (Euromonitor International 2012). The leading brands in the Indian market are P&G brand Whisper (54.8% market share), J & J brands Stayfree and Carefree (30.8% and 1.4% market share respectively), and KimberlyClark Lever Ltd brand Kotex (3.4% market share) (Euromonitor International). Almost 92% of the market for feminine hygiene products is held by the multinationals like P&G, J&J, and Kimberly-Clark Lever Ltd

It was shocking to find out that 70% of Indian women still cannot use sanitary napkins during their menstrual cycle and the prime reason being affordability. Due to this, women resort to orthodox ways like using tattered cloth, ash etc during the menstrual cycle unfortunately leading to reproductive tract infections, dropping out of schools, absenting from workplace (Sinha Kounteya 2011). The per capita consumption in US $ terms of feminine hygiene products in India is a paltry 0.13 as compared to 10.5 in Brazil, 3.0 in China, 8.3 in Russia, 35.0 in USA and 39.0 in Japan (Pancholi, B.S., Dr Naik. R. Sandeep, October 2008). The existing players in the market are not able to reach out to a major chunk of population, there lies the gap, and there lies a market. Not

It was shocking to find out that 70% of Indian women still cannot use sanitary napkins during their menstrual cycle and the prime reason being affordability. Due to this, women resort to orthodox ways like using tattered cloth, ash etc during the menstrual cycle unfortunately leading to reproductive tract infections, dropping out of schools, absenting from workplace (Sinha Kounteya 2011). The per capita consumption in US $ terms of feminine hygiene products in India is a paltry 0.13 as compared to 10.5 in Brazil, 3.0 in China, 8.3 in Russia, 35.0 in USA and 39.0 in Japan (Pancholi, B.S., Dr Naik. R. Sandeep, October 2008). The existing players in the market are not able to reach out to a major chunk of population, there lies the gap, and there lies a market. Not

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only is there, a need to explore a market as this but a bigger social objective lies ahead, to eliminate the problems faced by a valuable section of our society.

only is there, a need to explore a market as this but a bigger social objective lies ahead, to eliminate the problems faced by a valuable section of our society.

Scope for further study

Scope for further study

Health profiles published by the government should be used to help communities prioritize their health problems and to inform local decision making. Public health laboratories have a good capacity to support the government's diagnostic and research activities on health risks and threats, but are not being utilized efficiently. Mechanisms to monitor epidemiological challenges like mental health, occupational health and other environment risks are yet to be put in place.

Health profiles published by the government should be used to help communities prioritize their health problems and to inform local decision making. Public health laboratories have a good capacity to support the government's diagnostic and research activities on health risks and threats, but are not being utilized efficiently. Mechanisms to monitor epidemiological challenges like mental health, occupational health and other environment risks are yet to be put in place.

Women-specific interventions in all policies, programs and systems need to be launched. The government should take steps to sensitize service providers in various departments to issues of women.

Women-specific interventions in all policies, programs and systems need to be launched. The government should take steps to sensitize service providers in various departments to issues of women.

How corporate can take initiatives to explore opportunity at the bottom of the pyramid?

How corporate can take initiatives to explore opportunity at the bottom of the pyramid?

Profitably selling to the bottom of the pyramid is difficult, but it can be done. It requires companies to focus on business fundamentals and start their ventures with a rigorous understanding of two key challenges in low-income markets: changing consumers‟ behavior and changing the way products are made and delivered. Companies that underestimate these hurdles miscalculate the resources, innovation capabilities, and time involved, and project teams end up poorly equipped to accomplish the task.

Profitably selling to the bottom of the pyramid is difficult, but it can be done. It requires companies to focus on business fundamentals and start their ventures with a rigorous understanding of two key challenges in low-income markets: changing consumers‟ behavior and changing the way products are made and delivered. Companies that underestimate these hurdles miscalculate the resources, innovation capabilities, and time involved, and project teams end up poorly equipped to accomplish the task.

1. Companies have to successfully educate consumers about new or untried products, they have to work

1. Companies have to successfully educate consumers about new or untried products, they have to work

with the beneficiaries over sustained periods. Sometimes it’s necessary to create consumer groups in order to harness peer pressure and build support for new behaviours.

with the beneficiaries over sustained periods. Sometimes it’s necessary to create consumer groups in order to harness peer pressure and build support for new behaviours.

2. Value chains may need to be reconfigured to reach the low-income buyers. Customers may require

2. Value chains may need to be reconfigured to reach the low-income buyers. Customers may require

lower price points than the company can meet. There is where a favourable price-adjustment mechanism is required. 3. Distribution extension - Bottom-of-the-pyramid urban consumers with access to a company’s sales channels are buying its product in an existing format, but those who live beyond the company’s reach in remote areas and larger market towns might also value the product. There is some modern infrastructure in the targeted areas, and a few businesses and government organizations are operating at scale. The objective is to harness existing non-traditional channels that can quickly and easily reach consumers. 4. Create a new channel - A large rural population living beyond the reach of a company’s sales outlets may be using products that provide the same core functionality as the company’s offering. The objective is to build, from the ground up, a parallel distribution and sales channel that can penetrate hard-to-reach rural areas.

lower price points than the company can meet. There is where a favourable price-adjustment mechanism is required. 3. Distribution extension - Bottom-of-the-pyramid urban consumers with access to a company’s sales channels are buying its product in an existing format, but those who live beyond the company’s reach in remote areas and larger market towns might also value the product. There is some modern infrastructure in the targeted areas, and a few businesses and government organizations are operating at scale. The objective is to harness existing non-traditional channels that can quickly and easily reach consumers. 4. Create a new channel - A large rural population living beyond the reach of a company’s sales outlets may be using products that provide the same core functionality as the company’s offering. The objective is to build, from the ground up, a parallel distribution and sales channel that can penetrate hard-to-reach rural areas.

A more realistic assessment of the challenges at the bottom of the pyramid can help companies generate the profits that will make socially beneficial businesses sustainable over the long term.

A more realistic assessment of the challenges at the bottom of the pyramid can help companies generate the profits that will make socially beneficial businesses sustainable over the long term.

The most crucial understanding that emanates from the above study is that if the products are priced appropriately so that it is not only affordable to the India women, it can increase the consumer base by almost 65% (Prernapreliminary survey).

The most crucial understanding that emanates from the above study is that if the products are priced appropriately so that it is not only affordable to the India women, it can increase the consumer base by almost 65% (Prernapreliminary survey).

Moreover, appropriate consumer education has to be conducted through communication regarding the ill effects of resorting to orthodox ways of personal hygiene. This will result in a better diffusion & adoption of the sanitary napkins among the target group. By suitably adapting the marketing mix for sanitary napkins to appeal to the lower and bottom of pyramid women, a huge amount of marketing opportunity can be tapped by the companies, at the same time fulfilling a very important and essential social objective of providing basic sanitary hygiene to women at the lower end of the economic strata. The limitation of this study was in terms of the sample size and the difficulty in conducting interviews among the lower income group women.

Moreover, appropriate consumer education has to be conducted through communication regarding the ill effects of resorting to orthodox ways of personal hygiene. This will result in a better diffusion & adoption of the sanitary napkins among the target group. By suitably adapting the marketing mix for sanitary napkins to appeal to the lower and bottom of pyramid women, a huge amount of marketing opportunity can be tapped by the companies, at the same time fulfilling a very important and essential social objective of providing basic sanitary hygiene to women at the lower end of the economic strata. The limitation of this study was in terms of the sample size and the difficulty in conducting interviews among the lower income group women.

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6. Conclusion Corporates can undertake such projects and become the mediators between the government and the NGOs. Such gender specific projects by young entrepreneurs have proven to be fairly successful in rural areas; large corporates can enhance the scope of such projects by using their existing resources to meet these social objectives among urban women. Moreover corporates can tie up NGOs, which work at the grass root level, help them fulfill their objectives and derive value in terms of profitability. To sum up, there is a huge opportunity at the bottom of the pyramid for women’s hygiene products which is still waiting to be tapped.

1. Acknowledgement A token of thanks to Udit Chauhan and Sanyam Sharma for their intellectual contribution.

2. References http://www.ibtimes.com/international-womens-day-2014-quotes-25-sayings-empower-women-1560089 http://www.sswm.info/content/menstrual-hygiene-management http://www.gktoday.in/government-schemes-in-india/ http://wcd.nic.in/schemes/SABLA-guidelines141210.pdf http://wcd.nic.in/ar0708/English/Chapter-11.pdf http://www.gramvaani.org/?p=1629

Author’s Profile Prof. Asha Bhatia is a versatile and accomplished professional with two decades of commendable career with award-winning achievements. Currently serving as a Faculty General Management at K.J.Somaiya Institute Of Management Studies & Research, Mumbai, India with accountability for empowering students not only in the areas of Entrepreneurship and Management Processes but also driving research and The Somaiya Social Cell activities to make meaningful contributions for economic and social development of the society as a part of the Institute’s CSR. Asha is pursuing her PhD in Management. Her career includes contributions of international and national-wide significance to develop, implement, and communicate corporate sustainability and social responsibility efforts. She has contributed to major Policy Changes in issues related to Education, Employment, and Accessibility. She has published research papers and made presentations in National and International conferences. Her area of interest is sustainability, social entrepreneurship, education and women empowerment

Dr. SNV Siva Kumar has a Master’s and Doctorate degree in Economics from University of Hyderabad. He has over 20 years of teaching experience. He is an approved PhD guide for 5 universities and has been an active referee for the Doctoral thesis of other universities. His area of interest includes Managerial Economics, Macro economics, policy planning and development. He was facilitated with Dr. S. Radhakrishnan Gold Medal Award for excellence in his field in the year 2014.

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Section 5

Section 5

Impact Assessment, CSR Standards and Reporting

Impact Assessment, CSR Standards and Reporting

A Proposed Accounting Model to Measure the Effect of Social Responsibility on the Financial Performance of Economic Entities – An Applied Study

A Proposed Accounting Model to Measure the Effect of Social Responsibility on the Financial Performance of Economic Entities – An Applied Study

Dalia Moustafa Rezk Teaching Assistant at Accounting & Auditing Department, Faculty of Commerce – Ain Shams University, Egypt Email: [email protected]

Dalia Moustafa Rezk Teaching Assistant at Accounting & Auditing Department, Faculty of Commerce – Ain Shams University, Egypt Email: [email protected]

Abstract

Abstract

Purpose – The purpose of this study is to examine the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) of Egyptian public listed companies, as an emerging market society.

Purpose – The purpose of this study is to examine the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) of Egyptian public listed companies, as an emerging market society.

Design/methodology/approach – An applied study was conducted using cross sectional data analysis with a sample of 120 companies was tested during a four years period by using Multivariate Analysis of Covariance (MACOVA) as well as Logistic Regression based on Waddock and Grave’s 1998 Model.

Design/methodology/approach – An applied study was conducted using cross sectional data analysis with a sample of 120 companies was tested during a four years period by using Multivariate Analysis of Covariance (MACOVA) as well as Logistic Regression based on Waddock and Grave’s 1998 Model.

Findings – The results of the applied study indicates a positive significant relationship between corporate social performance and corporate financial performance. This proves that CSR practices can be considered as effort to enhance the financial performance of companies in the Egyptian society.

Findings – The results of the applied study indicates a positive significant relationship between corporate social performance and corporate financial performance. This proves that CSR practices can be considered as effort to enhance the financial performance of companies in the Egyptian society.

Practical implications – These findings suggest that Egyptian companies should engage consistently in proper CSR practices because CSR has a positive significant impact on improving financial performance in Egyptian society.

Practical implications – These findings suggest that Egyptian companies should engage consistently in proper CSR practices because CSR has a positive significant impact on improving financial performance in Egyptian society.

Keywords: Corporate Social Responsibility, Corporate Financial Performance, Corporate Social Performance, Egyptian Stock Exchange.

Keywords: Corporate Social Responsibility, Corporate Financial Performance, Corporate Social Performance, Egyptian Stock Exchange.

1. Introduction

1. Introduction

The concept of Corporate Social Responsibility (CSR) has grown massively over the past few decades; where the pressure on firms to engage in CSR practices has increased over time. There is an evolving demand that companies integrate CSR practices into their business activities to enhance their position among their stakeholders, employees, suppliers, customers, activists, governments, nongovernmental organizations, and the community as a whole. In a global world, progress of new business concepts - such as corporate social responsibility (CSR) - became a phenomenon that any business directors and managers should consider in any managerial decision making process to obtain public support for their presence in such global markets.

The concept of Corporate Social Responsibility (CSR) has grown massively over the past few decades; where the pressure on firms to engage in CSR practices has increased over time. There is an evolving demand that companies integrate CSR practices into their business activities to enhance their position among their stakeholders, employees, suppliers, customers, activists, governments, nongovernmental organizations, and the community as a whole. In a global world, progress of new business concepts - such as corporate social responsibility (CSR) - became a phenomenon that any business directors and managers should consider in any managerial decision making process to obtain public support for their presence in such global markets.

According to (Fraser, 2005), the emergence of corporate social responsibility (CSR) is not only a blueprint for the future, but a new highway to follow for conducting business in an uncertain world that has witnessed the evisceration of many long-accepted norms of conduct. In an emerging economy like Egypt, (Shamseldin, 2005) noted that the private sector is continuously making the efforts to become competitive and to integrate progressively into the global economy. Liberalization of the economy and the financial markets to attract foreign investments had encouraged the corporate sector to pursue more commitments towards observing and adhering to international standards of corporate and market regulations, corporate organization, and corporate governance. The Corporate Social Responsibility (CSR) became as well an integral part of such a commitment.

According to (Fraser, 2005), the emergence of corporate social responsibility (CSR) is not only a blueprint for the future, but a new highway to follow for conducting business in an uncertain world that has witnessed the evisceration of many long-accepted norms of conduct. In an emerging economy like Egypt, (Shamseldin, 2005) noted that the private sector is continuously making the efforts to become competitive and to integrate progressively into the global economy. Liberalization of the economy and the financial markets to attract foreign investments had encouraged the corporate sector to pursue more commitments towards observing and adhering to international standards of corporate and market regulations, corporate organization, and corporate governance. The Corporate Social Responsibility (CSR) became as well an integral part of such a commitment.

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Involvement in CSR practices has been a debated issue for several years now. Such a debate can be traced to the variations in opinions regarding the commitment towards CSR related activities. As some scholars argue that CSR can provide extra advantages to the company, others claim that CSR applying a proper CSR program will add up to the costs of the company. So, it is necessary to investigate the relationship between CSR and financial performance in order to gain a better understanding of the premise of such link.

Involvement in CSR practices has been a debated issue for several years now. Such a debate can be traced to the variations in opinions regarding the commitment towards CSR related activities. As some scholars argue that CSR can provide extra advantages to the company, others claim that CSR applying a proper CSR program will add up to the costs of the company. So, it is necessary to investigate the relationship between CSR and financial performance in order to gain a better understanding of the premise of such link.

2. Nature of the CSP- CFP Relationship

2. Nature of the CSP- CFP Relationship

Substantial research has attempted to determine the nature of the relationship between Corporate Social Performance (CSP) and Corporate Financial Performance (CFP), research that began circa Friedman’s challenge. The existence and nature of a possible CSP – CFP link can affect many key issues facing corporate stakeholders including the amount of resources directed toward CSP – related initiatives.

Substantial research has attempted to determine the nature of the relationship between Corporate Social Performance (CSP) and Corporate Financial Performance (CFP), research that began circa Friedman’s challenge. The existence and nature of a possible CSP – CFP link can affect many key issues facing corporate stakeholders including the amount of resources directed toward CSP – related initiatives.

2.1. Negative social-financial performance relationship models

2.1. Negative social-financial performance relationship models

There are two models predicting a negative relationship between CSP and CFP: the trade-off hypothesis and the managerial opportunism hypothesis.

There are two models predicting a negative relationship between CSP and CFP: the trade-off hypothesis and the managerial opportunism hypothesis.

First, because social accomplishments involve financial costs, the trade-off hypothesis points out that social responsibility may siphon off capital and other resources from the firm as suggested by Friedman (1970), putting it at a relative competitive disadvantage compared to other firms that are less socially active.

First, because social accomplishments involve financial costs, the trade-off hypothesis points out that social responsibility may siphon off capital and other resources from the firm as suggested by Friedman (1970), putting it at a relative competitive disadvantage compared to other firms that are less socially active.

“A firm’s higher levels of social performance may lower its financial performance as compared to competitors” as noted by (Preston & O’Bannon, 1997)

“A firm’s higher levels of social performance may lower its financial performance as compared to competitors” as noted by (Preston & O’Bannon, 1997)

Second, another possibility is that pursuit of private managerial goals might lead to a negative relationship between CSP and CFP.

Second, another possibility is that pursuit of private managerial goals might lead to a negative relationship between CSP and CFP.

(Preston & O’Bannon, 1997) mentioned that the reasoning behind this is traced to the managerial opportunism hypothesis which states that “when financial performance is strong, managers may attempt to crash in by reducing social expenditure in order to take advantage of the opportunity to increase their own short-term private gains. Conversely, when financial performance weakens, managers may attempt to offset and perhaps appear to justify their disappointing results by engaging in conspicuous social programs”.

(Preston & O’Bannon, 1997) mentioned that the reasoning behind this is traced to the managerial opportunism hypothesis which states that “when financial performance is strong, managers may attempt to crash in by reducing social expenditure in order to take advantage of the opportunity to increase their own short-term private gains. Conversely, when financial performance weakens, managers may attempt to offset and perhaps appear to justify their disappointing results by engaging in conspicuous social programs”.

Within the economic and finance literatures there is a long history of commentators who have argued that a focus on CSR will reduce financial performance. For example, Friedman (1970) asserted that the only social responsibility of a company is to use its resources to engage in activities designed to increase profits, while in the researcher’s opinion, the social responsibility of a company should extend beyond profit achievement to include serving environmental and social goals as well. Many others support this view. It has been argued that a negative relationship between CSP and CFP arises due to the additional costs incurred to improve social or environmental performance, which does not contribute to enhancing shareholder value. Also, profitable business and investment strategies that are rejected only because of CSR concerns must result in lowering economic performance.

Within the economic and finance literatures there is a long history of commentators who have argued that a focus on CSR will reduce financial performance. For example, Friedman (1970) asserted that the only social responsibility of a company is to use its resources to engage in activities designed to increase profits, while in the researcher’s opinion, the social responsibility of a company should extend beyond profit achievement to include serving environmental and social goals as well. Many others support this view. It has been argued that a negative relationship between CSP and CFP arises due to the additional costs incurred to improve social or environmental performance, which does not contribute to enhancing shareholder value. Also, profitable business and investment strategies that are rejected only because of CSR concerns must result in lowering economic performance.

2.2. Neutral social-financial performance relationship models

2.2. Neutral social-financial performance relationship models

Another body of research suggests a neutral relation between CSP and CFP. A neutral association can be explained by the financial market’s inability to value and thus price CSP. Alternatively, it might not be possible for current market models to measure effectively the impact of CSP on firm and portfolio performances. According to (Waddock & Graves, 1997) a neutral relation suggests that many variables in the relation between social and financial performance make the connection coincidental. McWilliams, A Siegel (2001) stated that one explanation of this could be that firms supplying CSR products to their own customers have a different demand curve compared to those with no CSR. (Ullman, 1985) underlined that no clear

Another body of research suggests a neutral relation between CSP and CFP. A neutral association can be explained by the financial market’s inability to value and thus price CSP. Alternatively, it might not be possible for current market models to measure effectively the impact of CSP on firm and portfolio performances. According to (Waddock & Graves, 1997) a neutral relation suggests that many variables in the relation between social and financial performance make the connection coincidental. McWilliams, A Siegel (2001) stated that one explanation of this could be that firms supplying CSR products to their own customers have a different demand curve compared to those with no CSR. (Ullman, 1985) underlined that no clear

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tendency can be recorded between connections on social information, social performance and economic results. The main reasons for this are the theory’s inadequacy, inappropriate keyword definitions and lack of empirical material. He argues that given such a large number of variables intervene between the social responsibility performance and the financial performance of companies, there is no reason to assume that a direct relation should exist.

tendency can be recorded between connections on social information, social performance and economic results. The main reasons for this are the theory’s inadequacy, inappropriate keyword definitions and lack of empirical material. He argues that given such a large number of variables intervene between the social responsibility performance and the financial performance of companies, there is no reason to assume that a direct relation should exist.

2.3. Positive Social-Financial Performance Relationship Models

2.3. Positive Social-Financial Performance Relationship Models

According to (Allouche, 2005), stakeholder theory suggests that CSP is positively associated with CFP because it enhances the satisfaction of various stakeholders – and consequently the firm’s external reputation – and lead to better financial performance. Theorists supporting such a hypothesis propose that managers typically increase the efficiency of their organization’s adaptation to external demands by addressing and balancing the claims of multiple stakeholders. Conversely, the failure to meet the expectations of various stakeholders will generate market fears, and consequently, will increase company’s risk premium and ultimately result in lost profit opportunities. Other scholars suggest that CSP and CFP are positively associated, but that the causal relationship is from financial to social performance. According to the slack resource hypothesis, firms will follow the normative rules of good corporate social depending on the financial resource available. Hence, profitability in one time period may increase a firms’ ability to fund discretionary social performance projects.

According to (Allouche, 2005), stakeholder theory suggests that CSP is positively associated with CFP because it enhances the satisfaction of various stakeholders – and consequently the firm’s external reputation – and lead to better financial performance. Theorists supporting such a hypothesis propose that managers typically increase the efficiency of their organization’s adaptation to external demands by addressing and balancing the claims of multiple stakeholders. Conversely, the failure to meet the expectations of various stakeholders will generate market fears, and consequently, will increase company’s risk premium and ultimately result in lost profit opportunities. Other scholars suggest that CSP and CFP are positively associated, but that the causal relationship is from financial to social performance. According to the slack resource hypothesis, firms will follow the normative rules of good corporate social depending on the financial resource available. Hence, profitability in one time period may increase a firms’ ability to fund discretionary social performance projects.

Other several papers support a positive relation between CSP and CFP and argue that investments in CSR will lead to positive CFP over the medium to long term due to the impact of CSP on reputation and brand and the attractiveness of such companies to high quality managers and employees. (Demacarty, 2009)sees that explanations of why CSR should result in stronger (positive) financial performance center on the benefits of creating goodwill on the part of stakeholders. Variations of this perspective have been described using terms including stakeholder theory, good management theory, intelligent, adaptive management, and a loyalty effect.

Other several papers support a positive relation between CSP and CFP and argue that investments in CSR will lead to positive CFP over the medium to long term due to the impact of CSP on reputation and brand and the attractiveness of such companies to high quality managers and employees. (Demacarty, 2009)sees that explanations of why CSR should result in stronger (positive) financial performance center on the benefits of creating goodwill on the part of stakeholders. Variations of this perspective have been described using terms including stakeholder theory, good management theory, intelligent, adaptive management, and a loyalty effect.

An extensive range of specific advantages has been described which include: 1. Delivering superior value to customers. 2. Increases loyalty of employees through greater satisfaction and pride in their work. 3. In addition, CSR may make it easier to attract better employees. 4. Long-term employees gain expertise regarding customer needs.

An extensive range of specific advantages has been described which include: 1. Delivering superior value to customers. 2. Increases loyalty of employees through greater satisfaction and pride in their work. 3. In addition, CSR may make it easier to attract better employees. 4. Long-term employees gain expertise regarding customer needs.

The process of enhancing the financial performance through proper CSR application can be demonstrated as follows:

The process of enhancing the financial performance through proper CSR application can be demonstrated as follows:

• Employees who are entrusted with more control over their work have higher levels of commitment, and the costs of managing them are lower. • Delivery of superior value by such employees yields greater customer loyalty. A five percent increase in customer retention, for example, results in much stronger growth. • In addition, profit per customer increases each year. These effects also make customer retention very valuable. • Also, responsible companies may experience reduced costs of approval for sites by communities and government officials, or avoid costs resulting from fines for environmental problem. • All this will contribute eventually to a positives relationship between the company and its related stakeholders. That contributes to a self-reinforcing system of positive effects, as shown in Figure 1.

• Employees who are entrusted with more control over their work have higher levels of commitment, and the costs of managing them are lower. • Delivery of superior value by such employees yields greater customer loyalty. A five percent increase in customer retention, for example, results in much stronger growth. • In addition, profit per customer increases each year. These effects also make customer retention very valuable. • Also, responsible companies may experience reduced costs of approval for sites by communities and government officials, or avoid costs resulting from fines for environmental problem. • All this will contribute eventually to a positives relationship between the company and its related stakeholders. That contributes to a self-reinforcing system of positive effects, as shown in Figure 1.

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Responsible

Responsible

Purpose

Purpose

High Profits

Positive Reputation

High Profits

Positive Reputation

Loyal Customers

Loyal Employees

Loyal Customers

Loyal Employees

Worthwhile Products

Worthwhile Products

Figure 1. Simplified Mechanism by which CSR Produces High Financial Performance

Figure 1. Simplified Mechanism by which CSR Produces High Financial Performance

Source: Demacarty, P. (2009), “Financial Returns of Corporate Social Responsibility, and Moral Freedom and Responsibility of Business Leader”, Business & Society Review, Vol. 114, No. 3, P. 398

Source: Demacarty, P. (2009), “Financial Returns of Corporate Social Responsibility, and Moral Freedom and Responsibility of Business Leader”, Business & Society Review, Vol. 114, No. 3, P. 398

As noted in the above figure, articulating a responsible purpose, made more credible by sincere-manner cues, contributes to a positive reputation. That tends to increase loyalty of employees, increasing their motivation to make worthwhile products. Such products promote customer loyalty, which boosts profits. Strong financials demonstrate that the responsible purpose is financially viable, which reinforces the system.

As noted in the above figure, articulating a responsible purpose, made more credible by sincere-manner cues, contributes to a positive reputation. That tends to increase loyalty of employees, increasing their motivation to make worthwhile products. Such products promote customer loyalty, which boosts profits. Strong financials demonstrate that the responsible purpose is financially viable, which reinforces the system.

To sum up the nature of the relationship between CSP and CFP, the following figure (Fig. 2) shows the results of 131 studies -investigated that link- conducted from the period of 1979 to 2002, where CSP is treated once as an independent variable, and another as a dependent variable.

To sum up the nature of the relationship between CSP and CFP, the following figure (Fig. 2) shows the results of 131 studies -investigated that link- conducted from the period of 1979 to 2002, where CSP is treated once as an independent variable, and another as a dependent variable.

Figure 2. The Results of 131 Studies on CSP-CFP Link (1979 – 2002)

Figure 2. The Results of 131 Studies on CSP-CFP Link (1979 – 2002)

Source: Margolis, J. D. and Walsh, J. P., (2003), “Misery Loves Companies: Rethinking Social Initiatives by Business”, Administrative Science Quarterly, Vol. 48, P. 277

Source: Margolis, J. D. and Walsh, J. P., (2003), “Misery Loves Companies: Rethinking Social Initiatives by Business”, Administrative Science Quarterly, Vol. 48, P. 277

3. Previous Studies

3. Previous Studies

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There is a significant body of work exploring the relationship between CSP and CFP, some of which supports a positive relation, some neutral and some negative. However, in reviewing the literature it is useful to consider the different ways that CSP has been conceptualized and measured, and to distinguish between studies that have focused on relating CSP to accounting performance and those that have related CSP to market performance. There is such a general agreement that companies are at the service of and accountable to society, beyond and independently of economic results. As CSR is an evolving concept and therefore a moving target, companies are likely to prioritize actions that fulfill their CSR obligations that also have a positive financial impact. As we will see in this section, academia has also given much attention to identifying the business case for CSR in measuring the relationship between CSR and CFP.

There is a significant body of work exploring the relationship between CSP and CFP, some of which supports a positive relation, some neutral and some negative. However, in reviewing the literature it is useful to consider the different ways that CSP has been conceptualized and measured, and to distinguish between studies that have focused on relating CSP to accounting performance and those that have related CSP to market performance. There is such a general agreement that companies are at the service of and accountable to society, beyond and independently of economic results. As CSR is an evolving concept and therefore a moving target, companies are likely to prioritize actions that fulfill their CSR obligations that also have a positive financial impact. As we will see in this section, academia has also given much attention to identifying the business case for CSR in measuring the relationship between CSR and CFP.

3.1. Mauzurkiewicz:

3.1. Mauzurkiewicz:

(Mauzurkiewicz, 2005)study revealed that many companies have found that CSR has often had a positive impact on corporate profits. He emphasized that investment in CSR has promoted product differentiation at the product and firm levels. Some firms now produce goods and services with attributes or characteristics that signal to the consumer that this particular company is concerned about certain social and environmental issues.

(Mauzurkiewicz, 2005)study revealed that many companies have found that CSR has often had a positive impact on corporate profits. He emphasized that investment in CSR has promoted product differentiation at the product and firm levels. Some firms now produce goods and services with attributes or characteristics that signal to the consumer that this particular company is concerned about certain social and environmental issues.

3.2. The International Financial Corporation

3.2. The International Financial Corporation

The International Financial Corporation (IFC, 2002), in its report “Developing Value”, reaches the conclusion, based on the experiences of over 170 companies, that many businesses in emerging markets have been involved in areas such as social development or environmental improvements, and have achieved cost savings, revenue growth and other business benefits. A summary of their findings is given in figure 3.

The International Financial Corporation (IFC, 2002), in its report “Developing Value”, reaches the conclusion, based on the experiences of over 170 companies, that many businesses in emerging markets have been involved in areas such as social development or environmental improvements, and have achieved cost savings, revenue growth and other business benefits. A summary of their findings is given in figure 3.

Figure 3. Evidence of a Business Case

Figure 3. Evidence of a Business Case

Source: Mazurkiewicz, P., (2005), “Corporate Environmental Responsibility: Is a Common CSR Framework Possible?”, World Bank Publications, p. 9

Source: Mazurkiewicz, P., (2005), “Corporate Environmental Responsibility: Is a Common CSR Framework Possible?”, World Bank Publications, p. 9

3.3. Orlitszky et al.

3.3. Orlitszky et al.

(Orlitszky et al., 2003) conducted a meta-analysis of 52 studies examining the link between social and financial performance, yielding a total sample size of 3,878 observations.Overall, they find a positive as-

(Orlitszky et al., 2003) conducted a meta-analysis of 52 studies examining the link between social and financial performance, yielding a total sample size of 3,878 observations.Overall, they find a positive as-

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sociation between corporate social and environmental performance and corporate financial performance, although the ways in which social and financial performance were operationalized moderated the positive association. The authors further conclude that the relationship between social and financial performance is reciprocal rather than one-dimensional; they affect each other through a “virtuous cycle.” Financially successful firms spend more on social performance because they can afford it; while social performance helps the firms become more financially successful.

sociation between corporate social and environmental performance and corporate financial performance, although the ways in which social and financial performance were operationalized moderated the positive association. The authors further conclude that the relationship between social and financial performance is reciprocal rather than one-dimensional; they affect each other through a “virtuous cycle.” Financially successful firms spend more on social performance because they can afford it; while social performance helps the firms become more financially successful.

As such, their findings suggest that we can reject the argument that CSR is inconsistent with shareholder wealth maximization; rather it suggests that organizational performance is a broad concept encompassing both financial and social performance. In general, market forces generally do not penalize companies that are high in social performance, thus managers can afford to be socially responsible.

As such, their findings suggest that we can reject the argument that CSR is inconsistent with shareholder wealth maximization; rather it suggests that organizational performance is a broad concept encompassing both financial and social performance. In general, market forces generally do not penalize companies that are high in social performance, thus managers can afford to be socially responsible.

3.4. Margolis and Walsh:

3.4. Margolis and Walsh:

(Margolis and Walsh, 2001) similarly reviewed 80 studies, spanning the last 30 years, examining the relationship between social and financial performance.Of these studies, 42 found a positive relationship between the two, 19 found no relationship, 15 reported mixed results, and only four studies found a negative relationship. Not surprisingly, the authors concluded that social performance does produce financial dividends for firms. This conclusion, however, needs to be treated with caution because, as the authors point out, there are major methodological problems associated with such studies.

(Margolis and Walsh, 2001) similarly reviewed 80 studies, spanning the last 30 years, examining the relationship between social and financial performance.Of these studies, 42 found a positive relationship between the two, 19 found no relationship, 15 reported mixed results, and only four studies found a negative relationship. Not surprisingly, the authors concluded that social performance does produce financial dividends for firms. This conclusion, however, needs to be treated with caution because, as the authors point out, there are major methodological problems associated with such studies.

3.5. José Allouche:

3.5. José Allouche:

According to (Allouche, 2005), stakeholder theory suggests that CSP is positively associated with CFP because it enhances the satisfaction of various stakeholders – and consequently the firm’s external reputation – and lead to better financial performance. Theorists supporting such a hypothesis propose that managers typically increase the efficiency of their organization’s adaptation to external demands by addressing and balancing the claims of multiple stakeholders. Conversely, the failure to meet the expectations of various stakeholders will generate market fears, and consequently, will increase company’s risk premium and ultimately result in lost profit opportunities.

According to (Allouche, 2005), stakeholder theory suggests that CSP is positively associated with CFP because it enhances the satisfaction of various stakeholders – and consequently the firm’s external reputation – and lead to better financial performance. Theorists supporting such a hypothesis propose that managers typically increase the efficiency of their organization’s adaptation to external demands by addressing and balancing the claims of multiple stakeholders. Conversely, the failure to meet the expectations of various stakeholders will generate market fears, and consequently, will increase company’s risk premium and ultimately result in lost profit opportunities.

4. Research Problem

4. Research Problem

In recent years, most large multi-national companies encounter extensive pressure from consumers, employees, suppliers, community groups, government, non-governmental organizations (NGOs), and institutional shareholders to engage in CSR. The Evidence of a link between corporate social and financial performance is decidedly mixed. Researchers have hypothesized and have given rational theoretical justification for negative, positive, and neutral links between CSP and CFP. Conceptual explanations for negative, positive, and neutral relationships between CSP and CFP are offered by many researchers for example Waddock and Graves and Preston and O’Bannon. Such conflicting results have not given scholars and practitioners the evidence they need to convince skeptical peers, boards, and investors that doing good may contribute to a company’s doing well. The research problem can be addressed through the non- application of Egyptian companies of CSR principles, and how does this affect their profits, and the Egyptian business environment as a whole.

In recent years, most large multi-national companies encounter extensive pressure from consumers, employees, suppliers, community groups, government, non-governmental organizations (NGOs), and institutional shareholders to engage in CSR. The Evidence of a link between corporate social and financial performance is decidedly mixed. Researchers have hypothesized and have given rational theoretical justification for negative, positive, and neutral links between CSP and CFP. Conceptual explanations for negative, positive, and neutral relationships between CSP and CFP are offered by many researchers for example Waddock and Graves and Preston and O’Bannon. Such conflicting results have not given scholars and practitioners the evidence they need to convince skeptical peers, boards, and investors that doing good may contribute to a company’s doing well. The research problem can be addressed through the non- application of Egyptian companies of CSR principles, and how does this affect their profits, and the Egyptian business environment as a whole.

5. Research Hypotheses

5. Research Hypotheses

First Hypothesis and Subsidiary Hypotheses:

First Hypothesis and Subsidiary Hypotheses:

H₁: There is a significant difference in financial performance between more socially responsible companies and less socially responsible companies within the specified time period.

H₁: There is a significant difference in financial performance between more socially responsible companies and less socially responsible companies within the specified time period.

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H1a: There is a significant difference in Return on Equity (ROE) between more socially responsible companies and less socially responsible companies within the specified time period.

H1a: There is a significant difference in Return on Equity (ROE) between more socially responsible companies and less socially responsible companies within the specified time period.

H1b: There is a significant difference in Return on Sales (ROS) between more socially responsible companies and less socially responsible companies within the specified time period.

H1b: There is a significant difference in Return on Sales (ROS) between more socially responsible companies and less socially responsible companies within the specified time period.

H1c: There is a significant difference in Return on Assets (ROA) between more socially responsible companies and less socially responsible companies within the specified time period.

H1c: There is a significant difference in Return on Assets (ROA) between more socially responsible companies and less socially responsible companies within the specified time period.

6. Research Methodology

6. Research Methodology

6.1. Population:

6.1. Population:

The population of the study consists of the 30 Egyptian companies included and listed on the Standard and Poor’s/ Egyptian Exchange Environmental, Social, &Governance (S&P/ EGX ESG) Index.

The population of the study consists of the 30 Egyptian companies included and listed on the Standard and Poor’s/ Egyptian Exchange Environmental, Social, &Governance (S&P/ EGX ESG) Index.

6.2. Sample Size:

6.2. Sample Size:

The sample of the study consists of 27 Egyptian companies drawn from 30 Egyptian companies listed on Standard and Poor’s /Egyptian Exchange Environmental, Social and Governance (S&P/EGX ESG) Index. The companies that undergo the study are the companies that are repeated on the S&P/EGX ESG Index at least for three years or more. These companies are considered as socially responsible companies, which make them eligible to the requirements of the research. This facilitates gathering the required data for testing the research hypotheses.

The sample of the study consists of 27 Egyptian companies drawn from 30 Egyptian companies listed on Standard and Poor’s /Egyptian Exchange Environmental, Social and Governance (S&P/EGX ESG) Index. The companies that undergo the study are the companies that are repeated on the S&P/EGX ESG Index at least for three years or more. These companies are considered as socially responsible companies, which make them eligible to the requirements of the research. This facilitates gathering the required data for testing the research hypotheses.

6.3. Time Span of the Study:

6.3. Time Span of the Study:

The time span of the study extends for 4 years from 2007 through 2010. This is due to the availability of data and information regarding corporate social responsibility. The S&P/EGX ESG Index was launched back in March 2010 with retroactive effect starting from 2007 till 2010.

The time span of the study extends for 4 years from 2007 through 2010. This is due to the availability of data and information regarding corporate social responsibility. The S&P/EGX ESG Index was launched back in March 2010 with retroactive effect starting from 2007 till 2010.

6.4. Variables and Model:

6.4. Variables and Model:

Using corporate financial data over a period of four years (2007-2010), the corporate social performance (CSP) is measured as a dummy variable based on the Egyptian Environmental, Social and Governance Index (ESG), launched by S&P’s in cooperation with the Egyptian Stock Exchange (EGX), where companies were classified into two groups; high socially responsible companies and low socially responsible companies. Furthermore, company size, financial leverage, and type of industry are measured by total asset, total sales, debt–to–asset ratio, and dummy variable (0 for financial companies and 1 for non financial companies), respectively. Waddock and Grave’s model is used in this study to measure the effect of corporate social performance on corporate financial performance. The research is going to rely on the following model, (Waddock and Graves, 1997) econometric model, to measure the effect of corporate social responsibility on company’s financial performance:

Using corporate financial data over a period of four years (2007-2010), the corporate social performance (CSP) is measured as a dummy variable based on the Egyptian Environmental, Social and Governance Index (ESG), launched by S&P’s in cooperation with the Egyptian Stock Exchange (EGX), where companies were classified into two groups; high socially responsible companies and low socially responsible companies. Furthermore, company size, financial leverage, and type of industry are measured by total asset, total sales, debt–to–asset ratio, and dummy variable (0 for financial companies and 1 for non financial companies), respectively. Waddock and Grave’s model is used in this study to measure the effect of corporate social performance on corporate financial performance. The research is going to rely on the following model, (Waddock and Graves, 1997) econometric model, to measure the effect of corporate social responsibility on company’s financial performance:

PERFi = f (CSPi, SIZEi, RISKi, INDi)

(1)

PERFi = f (CSPi, SIZEi, RISKi, INDi)

(1)

Where:

Where:

PERFi = long-run economic or financial performance of company i.  Return on Equity (ROE), Return on Sales (ROS), and Return on Assets (ROA) will be used as measures of accounting performance.

PERFi = long-run economic or financial performance of company i.  Return on Equity (ROE), Return on Sales (ROS), and Return on Assets (ROA) will be used as measures of accounting performance.

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CSPi = Corporate Social Performance which is used as a proxy for corporate social responsibility of company i.  Based on an Environmental, Social and Governance (ESG) Index for Egyptian companies listed on the Egyptian Stock Market. SIZEi = a proxy for the size of firm i.  Where total assets, and total sales will be used as a proxy for company’s size. RISKi = a proxy for the “risk” of firm i.  Debt/asset ratio will be used as a measure for company’s accounting risk. INDi = industry of firm i.  To control for some industry-level factors in order to explain variation in firm performance across industries. This is represented in the form of a dummy variable.

CSPi = Corporate Social Performance which is used as a proxy for corporate social responsibility of company i.  Based on an Environmental, Social and Governance (ESG) Index for Egyptian companies listed on the Egyptian Stock Market. SIZEi = a proxy for the size of firm i.  Where total assets, and total sales will be used as a proxy for company’s size. RISKi = a proxy for the “risk” of firm i.  Debt/asset ratio will be used as a measure for company’s accounting risk. INDi = industry of firm i.  To control for some industry-level factors in order to explain variation in firm performance across industries. This is represented in the form of a dummy variable.

7. Statistical Analysis

7. Statistical Analysis

The researcher relied on the Multivariate Analysis of Covariance (MANCOVA) under the General Linear Model (GLM) in order to test for the previous hypotheses, where the Statistical Package for Social Sciences (SPSS) (16) Software is used in all the statistical analyses done through this study.

The researcher relied on the Multivariate Analysis of Covariance (MANCOVA) under the General Linear Model (GLM) in order to test for the previous hypotheses, where the Statistical Package for Social Sciences (SPSS) (16) Software is used in all the statistical analyses done through this study.

 MANCOVA is a statistical technique which is a canonical correlation analysis used to relate the dependent variables to the covariate - the independent variables - represented as dummy variables.

 MANCOVA is a statistical technique which is a canonical correlation analysis used to relate the dependent variables to the covariate - the independent variables - represented as dummy variables.

 The dependent variable of the previous hypotheses is represented by the Financial Performance of related companies. It is measured in terms of Return on Equity (ROE), Return on Sales (ROS), and Return on Assets (ROA).

 The dependent variable of the previous hypotheses is represented by the Financial Performance of related companies. It is measured in terms of Return on Equity (ROE), Return on Sales (ROS), and Return on Assets (ROA).

 The independent variable which is the Corporate Social Performance (CSP) - treated as a dummy variable. The researcher relied on the S&P/EGX ESG Index to categorize the companies into High CSP companies (takes a value of 1), and Low CSP companies (takes a value of 2).

 The independent variable which is the Corporate Social Performance (CSP) - treated as a dummy variable. The researcher relied on the S&P/EGX ESG Index to categorize the companies into High CSP companies (takes a value of 1), and Low CSP companies (takes a value of 2).

7.1. Testing First Hypothesis and Subsidiary Hypotheses (Testing the Relationship between CSP

7.1. Testing First Hypothesis and Subsidiary Hypotheses (Testing the Relationship between CSP

and CFP):

and CFP):

7.1.1. Between - Subjects Factors:

7.1.1. Between - Subjects Factors:

The following table (5-3) represents the Between – Subjects Factors, which illustrates the number of companies included in each year through the four years of the study. This table also shows the classification of industry variable into two categories where 0 indicates Non-Financial companies and 1 indicates Financial companies. The companies of the study are categorized into high performing companies and low performing companies where 1 indicates High CSP companies and 2 indicates Low CSP companies. A summary of the statistics of the study through the four years (2007- 2010) is represented in the following table:

The following table (5-3) represents the Between – Subjects Factors, which illustrates the number of companies included in each year through the four years of the study. This table also shows the classification of industry variable into two categories where 0 indicates Non-Financial companies and 1 indicates Financial companies. The companies of the study are categorized into high performing companies and low performing companies where 1 indicates High CSP companies and 2 indicates Low CSP companies. A summary of the statistics of the study through the four years (2007- 2010) is represented in the following table:

Table 1. Between – Subjects Factors

Value Label

IND

CSP Index

Table 1. Between – Subjects Factors

2007

2008

2009

2010

N

N

N

N

0

Non-Financial

20

20

20

21

1

Financial

7

7

7

6

1

High CSP

16

15

15

15

2

Low CSP

11

12

12

12

195

Value Label

IND

CSP Index

2007

2008

2009

2010

N

N

N

N

0

Non-Financial

20

20

20

21

1

Financial

7

7

7

6

1

High CSP

16

15

15

15

2

Low CSP

11

12

12

12

195

Source: SPSS Output.

Source: SPSS Output.

7.2.2. Descriptive Statistics: The following table (table 2) shows the descriptive statistics for all the

7.2.2. Descriptive Statistics: The following table (table 2) shows the descriptive statistics for all the

variables used in the first hypothesis along with its subsidiary hypotheses. It shows a summary for the Mean and the Standard Deviation (S. D.) for the four years of the study from 2007 till 2010, along with the number of observations used each year in each category the High CSP and the Low CSP for each of the dependent variable ROE, ROS and ROA.

variables used in the first hypothesis along with its subsidiary hypotheses. It shows a summary for the Mean and the Standard Deviation (S. D.) for the four years of the study from 2007 till 2010, along with the number of observations used each year in each category the High CSP and the Low CSP for each of the dependent variable ROE, ROS and ROA.









In 2007: The Mean and the St. D. for ROE, ROS & ROA were (0.27304, 0.29174), (-7.45228, 40.25604), (0.10304, 0.09021) respectively for a total of 27 companies, 16 companies in the first category (High CSP companies) and 11 companies in the second category (Low CSP companies). In 2008: The Mean and the St. D. for ROE, ROS & ROA were (0.20653, 0.38752), (-0.05736, 1.40756), (0.07845, 0.07678) respectively for a total of 27 companies, 16 companies in the first category (High CSP companies) and 11 companies in the second category (Low CSP companies). In 2009: The Mean and the St. D. for ROE, ROS & ROA were (0.14347, 0.26810), (0.01176, 0.78394), (0.06085, 0.06509) respectively for a total of 27 companies, 16 companies in the first category (High CSP companies) and 11 companies in the second category (Low CSP companies). In 2010: The Mean and the St. D. for ROE, ROS & ROA were (0.15380, 0.26934), (-2.45450, 13.95627), (0.06857, 0.06973) respectively for a total of 27 companies, 16 companies in the first category (High CSP companies) and 11 companies in the second category (Low CSP companies).









In 2007: The Mean and the St. D. for ROE, ROS & ROA were (0.27304, 0.29174), (-7.45228, 40.25604), (0.10304, 0.09021) respectively for a total of 27 companies, 16 companies in the first category (High CSP companies) and 11 companies in the second category (Low CSP companies). In 2008: The Mean and the St. D. for ROE, ROS & ROA were (0.20653, 0.38752), (-0.05736, 1.40756), (0.07845, 0.07678) respectively for a total of 27 companies, 16 companies in the first category (High CSP companies) and 11 companies in the second category (Low CSP companies). In 2009: The Mean and the St. D. for ROE, ROS & ROA were (0.14347, 0.26810), (0.01176, 0.78394), (0.06085, 0.06509) respectively for a total of 27 companies, 16 companies in the first category (High CSP companies) and 11 companies in the second category (Low CSP companies). In 2010: The Mean and the St. D. for ROE, ROS & ROA were (0.15380, 0.26934), (-2.45450, 13.95627), (0.06857, 0.06973) respectively for a total of 27 companies, 16 companies in the first category (High CSP companies) and 11 companies in the second category (Low CSP companies).

Table 2. Descriptive Statistics of the Variables of the Study

2007 N

Mean

2008 St. D.

N

Table 2. Descriptive Statistics of the Variables of the Study

2009

Mean

St. D.

N

Mean

2010 St. D.

N

Mean

2007 St. D.

ROE

2008

2009

2010

N

Mean

St. D.

N

Mean

St. D.

N

Mean

St. D.

N

Mean

St. D.

ROE

High CSP

16

0.36148

0.25672

15

0.30832

0.22464

15

0.22217

0.16160

15

0.22661

0.17267

High CSP

16

0.36148

0.25672

15

0.30832

0.22464

15

0.22217

0.16160

15

0.22661

0.17267

Low CSP

11

0.14440

0.30286

12

0.07929

0.50887

12

0.04510

0.34301

12

0.06277

0.34243

Low CSP

11

0.14440

0.30286

12

0.07929

0.50887

12

0.04510

0.34301

12

0.06277

0.34243

Total

27

0.27304

0.29174

27

0.20653

0.38752

27

0.14347

0.26810

27

0.15380

0.26934

Total

27

0.27304

0.29174

27

0.20653

0.38752

27

0.14347

0.26810

27

0.15380

0.26934

16

0.27148

0.17294

15

0.23982

0.15780

15

0.21546

0.19209

15

0.26173

0.24577

16

0.27148

0.17294

15

0.23982

0.15780

15

0.21546

0.19209

15

0.26173

0.24577

11

18.68683

63.08007

12

-0.42883

2.09291

12

-0.24286

1.13063

12

5.84981

20.92054

11

18.68683

63.08007

12

-0.42883

2.09291

12

-0.24286

1.13063

12

5.84981

20.92054

27

-7.45228

40.25604

27

-0.05736

1.40756

27

0.01176

0.78394

27

2.45450

13.95627

27

-7.45228

40.25604

27

-0.05736

1.40756

27

0.01176

0.78394

27

2.45450

13.95627

High CSP

16

0.10619

0.08172

15

0.09183

0.06802

15

0.06339

0.04555

15

0.06857

0.05439

High CSP

16

0.10619

0.08172

15

0.09183

0.06802

15

0.06339

0.04555

15

0.06857

0.05439

Low CSP

11

0.09847

0.10538

12

0.06173

0.08659

12

0.05768

0.08576

12

0.04657

0.08786

Low CSP

11

0.09847

0.10538

12

0.06173

0.08659

12

0.05768

0.08576

12

0.04657

0.08786

Total

27

0.10304

0.09021

27

0.07845

0.07678

27

0.06085

0.06509

27

0.06857

0.06973

Total

27

0.10304

0.09021

27

0.07845

0.07678

27

0.06085

0.06509

27

0.06857

0.06973

ROS High CSP Low CSP

Total

ROS

ROA

High CSP Low CSP

Total ROA

Source: By the Researcher Using the SPSS Output.

Source: By the Researcher Using the SPSS Output.

7.2.3. Multivariate Analysis of Covariance (MANCOVA):

7.2.3. Multivariate Analysis of Covariance (MANCOVA):

o Multivariate Analysis of Covariance (MANCOVA) is used, which represents a statistical way to test the hypothesis that one or more independent variables have an effect on a set of two or more dependent variables.

o Multivariate Analysis of Covariance (MANCOVA) is used, which represents a statistical way to test the hypothesis that one or more independent variables have an effect on a set of two or more dependent variables.

196

196

o In other words, MANCOVA is used to test for the difference between groups (High CSP / Low CSP) across several dependent variables (ROE, ROS& ROA) simultaneously.

o In other words, MANCOVA is used to test for the difference between groups (High CSP / Low CSP) across several dependent variables (ROE, ROS& ROA) simultaneously.

o

o

Table 3 represents Multivariate Tests which gives the statistical results of the MANCOVA.

Table 3 represents Multivariate Tests which gives the statistical results of the MANCOVA.

Table 3. Multivariate Tests 2007

2008

Table 3. Multivariate Tests 2009

2010

2007

2008

2009

2010

Wilk's Lambada λ

CSP Index

CSP * IND

CSP Index

CSP * IND

CSP Index

CSP * IND

CSP Index

CSP * IND

Wilk's Lambada λ

CSP Index

CSP * IND

CSP Index

CSP * IND

CSP Index

CSP * IND

CSP Index

CSP * IND

Value F Sig. Partial Eta Squared

0.55597

0.66358

0.56041

0.55257

0.62292

0.80543

0.58290

0.62317

Value F Sig. Partial Eta Squared

0.55597

0.66358

0.56041

0.55257

0.62292

0.80543

0.58290

0.62317

4.79191

3.04189

4.70651

4.85830

3.63198

1.44941

4.29342

3.62817

0.01263(*)

0.05565(*)

0.01351(*)

0.01199(*)

0.03293(*)

0.26162

0.01885(*)

0.03303(*)

0.44403

0.33642

0.43959

0.44743

0.37708

0.19457

0.41710

0.37683

By the Researcher.

* Confidence Level of 95%

4.79191

3.04189

4.70651

4.85830

3.63198

1.44941

4.29342

3.62817

0.01263(*)

0.05565(*)

0.01351(*)

0.01199(*)

0.03293(*)

0.26162

0.01885(*)

0.03303(*)

0.44403

0.33642

0.43959

0.44743

0.37708

0.19457

0.41710

0.37683

By the Researcher.

* Confidence Level of 95%

 In 2007:

 In 2007:

In table 3, a one-way MANCOVA revealed a significant multivariate main effect for CSP Index with Wilks’ λ = .556, F = 4.8, at p < 0.05, partial eta squared = 0.444 with a significant level of 0.013. Also table 3 revealed a significant multivariate main effect for CSP Index within Industry (IND) with Wilks’ λ = .664, F = 3.04, at p < 0.05, partial eta squared = 0.336 with a significant level of 0.056

In table 3, a one-way MANCOVA revealed a significant multivariate main effect for CSP Index with Wilks’ λ = .556, F = 4.8, at p < 0.05, partial eta squared = 0.444 with a significant level of 0.013. Also table 3 revealed a significant multivariate main effect for CSP Index within Industry (IND) with Wilks’ λ = .664, F = 3.04, at p < 0.05, partial eta squared = 0.336 with a significant level of 0.056

 In 2008:

 In 2008:

In table 3, a one-way MANCOVA revealed a significant multivariate main effect for CSP Index with Wilks’ λ = .0.560, F = 4.7, at p < 0.05, partial eta squared = 0.440 with a significant level of 0.012. Also table 3 revealed a significant multivariate main effect for CSP Index within IND with Wilks’ λ = 0.553, F = 4.9, at p < 0.05, partial eta squared = 0.447 with a significant level of 0.012

In table 3, a one-way MANCOVA revealed a significant multivariate main effect for CSP Index with Wilks’ λ = .0.560, F = 4.7, at p < 0.05, partial eta squared = 0.440 with a significant level of 0.012. Also table 3 revealed a significant multivariate main effect for CSP Index within IND with Wilks’ λ = 0.553, F = 4.9, at p < 0.05, partial eta squared = 0.447 with a significant level of 0.012

 In 2009:

 In 2009:

In table 3, a one-way MANCOVA revealed a significant multivariate main effect for CSP Index with Wilks’ λ = 0.623, F = 3.6, at p < 0.05, partial eta squared = 0.377 with a significant level of 0.033 Also table 3 revealed a significant multivariate main effect for CSP Index within IND with Wilks’ λ = 0.805, F = 1.5, at p < 0.05, partial eta squared = 0.336 with a significant level of 0.262

In table 3, a one-way MANCOVA revealed a significant multivariate main effect for CSP Index with Wilks’ λ = 0.623, F = 3.6, at p < 0.05, partial eta squared = 0.377 with a significant level of 0.033 Also table 3 revealed a significant multivariate main effect for CSP Index within IND with Wilks’ λ = 0.805, F = 1.5, at p < 0.05, partial eta squared = 0.336 with a significant level of 0.262

 In 2010:

 In 2010:

In table 3, a one-way MANCOVA revealed a significant multivariate main effect for CSP Index with Wilks’ λ = 0.583, F = 4.3, at p < 0.05, partial eta squared = 0.417 with a significance level of 0.020. Also table 3 revealed a significant multivariate main effect for CSP Index within IND with Wilks’ λ = .623, F = 3.6, at p < 0.05, partial eta squared = 0.377 with a significance level of 0.033

In table 3, a one-way MANCOVA revealed a significant multivariate main effect for CSP Index with Wilks’ λ = 0.583, F = 4.3, at p < 0.05, partial eta squared = 0.417 with a significance level of 0.020. Also table 3 revealed a significant multivariate main effect for CSP Index within IND with Wilks’ λ = .623, F = 3.6, at p < 0.05, partial eta squared = 0.377 with a significance level of 0.033

7.2.4. Parameter Estimates:

7.2.4. Parameter Estimates:

Since the Multivariate test (MANCOVA) analysis was proven to be significant, the researcher conducted the Analysis of Variance (ANOVA) to test the dependent variables independently. The ANOVA also helps in understanding which variables, separately, differ across groups. The researcher started the ANOVA test with Test of Between – Subjects Effects table 4 in order to test the effect of the independent variable on each of the dependent variables independently from the other, showing the R 2 and adjusted R2 in table 4.

Since the Multivariate test (MANCOVA) analysis was proven to be significant, the researcher conducted the Analysis of Variance (ANOVA) to test the dependent variables independently. The ANOVA also helps in understanding which variables, separately, differ across groups. The researcher started the ANOVA test with Test of Between – Subjects Effects table 4 in order to test the effect of the independent variable on each of the dependent variables independently from the other, showing the R 2 and adjusted R2 in table 4.

197

197

Next the researcher moved on with the ANOVA test to prepare the Parameter Estimates table 4, which tell us how the dependent variables are weighted in the equation that maximally distinguishes the groups (High CSP and Low CSP). We can look at the ANOVA (Between Subjects) and Parameter Estimates table results to determine whether the groups (High CSP / Low CSP) differ on each of the dependent variables (ROE, ROS &ROA) examined alone.

Next the researcher moved on with the ANOVA test to prepare the Parameter Estimates table 4, which tell us how the dependent variables are weighted in the equation that maximally distinguishes the groups (High CSP and Low CSP). We can look at the ANOVA (Between Subjects) and Parameter Estimates table results to determine whether the groups (High CSP / Low CSP) differ on each of the dependent variables (ROE, ROS &ROA) examined alone.

8. Findings and Results

8. Findings and Results

Hypothesis 1 is accepted since the overall F test was significant, that there is a significant difference in financial performance between more socially responsible companies and less socially responsible companies within the specified time period.

Hypothesis 1 is accepted since the overall F test was significant, that there is a significant difference in financial performance between more socially responsible companies and less socially responsible companies within the specified time period.

There is a significant relationship between High CSP companies and ROE through the four years of the study (2007 – 2010). Looking at beta (β), the researcher found a positive linkage between High CSP and ROE.

There is a significant relationship between High CSP companies and ROE through the four years of the study (2007 – 2010). Looking at beta (β), the researcher found a positive linkage between High CSP and ROE.

Thus, Hypothesis H1a is accepted, thatthere is a significant difference in Return on Equity (ROE) between more socially responsible companies and less socially responsible companies within the specified time period.

Thus, Hypothesis H1a is accepted, thatthere is a significant difference in Return on Equity (ROE) between more socially responsible companies and less socially responsible companies within the specified time period.

There is a significant relationship between High CSP and ROS through the four years of the study (2007 – 2010). Looking at beta (β), the researcher found a positive linkage between High CSP and ROS.

There is a significant relationship between High CSP and ROS through the four years of the study (2007 – 2010). Looking at beta (β), the researcher found a positive linkage between High CSP and ROS.

Thus, Hypothesis H1b is accepted, that there is a significant difference in Return on Sales (ROS) between more socially responsible companies and less socially responsible companies within the specified time period.

Thus, Hypothesis H1b is accepted, that there is a significant difference in Return on Sales (ROS) between more socially responsible companies and less socially responsible companies within the specified time period.

There is no significant relationship between High CSP and ROA through the four years of the study (2007 – 2010).

There is no significant relationship between High CSP and ROA through the four years of the study (2007 – 2010).

Thus, Hypothesis H1c is rejected, that there is a significant difference in Return on Assets (ROA) between more socially responsible companies and less socially responsible companies within the specified time period.

Thus, Hypothesis H1c is rejected, that there is a significant difference in Return on Assets (ROA) between more socially responsible companies and less socially responsible companies within the specified time period.

Table 4. Parameter Estimates

Table 4. Parameter Estimates

2007

2008

2009

2010

2007

Β

t.

Sig.

Β

t.

Sig.

Β

t.

Sig.

β

t.

Sig.

ROE Intercept

-0.131

-0.621

0.542

-0.648

-2.124

0.046

-0.274

-1.319

0.202

-0.302

-1.374

0.185

SIZE_S

0.000

-1.200

0.244

0.000

-0.829

0.417

0.000

-0.620

0.542

0.000

-0.608

SIZE_A RISK IND=0 IND=1 CSP Index =1 CSP Index =2

ROS Intercept SIZE_S SIZE_A RISK

0.000 -0.085 0.325 0 0.454

2.414 -0.439 1.617 . 2.207

0.025 0.665 0.122 .

(*)

0.000 0.066 0.745 0

0.039

0.863

1.752 0.230 2.870 . 3.117

0.095 0.820 0.009 .

(*)

0.000 -0.182 0.481 0

0.005

0.597

0.958 -1.036 2.540 . 2.893

0.350 0.313 0.019 .

(*)

0.000 -0.130 0.493 0

0.009

0.668

0.896 -0.632 2.442 . 2.748

(*)

Sig.

Β

t.

Sig.

Β

t.

Sig.

β

t.

Sig.

ROE Intercept

-0.131

-0.621

0.542

-0.648

-2.124

0.046

-0.274

-1.319

0.202

-0.302

-1.374

0.185

0.550

SIZE_S

0.000

-1.200

0.244

0.000

-0.829

0.417

0.000

-0.620

0.542

0.000

-0.608

0.550

0.381

SIZE_A

0.000

2.414

0.025

0.000

1.752

0.095

0.000

0.958

0.350

0.000

0.896

0.381

0.535

RISK

-0.085

-0.439

0.665

0.066

0.230

0.820

-0.182

-1.036

0.313

-0.130

-0.632

0.535

0.024

IND=0

0.325

1.617

0.122

0.745

2.870

0.009

0.481

2.540

0.019

0.493

2.442

0.024

.

IND=1

0

.

.

0

.

.

0

.

.

0

.

.

0.012

.

0

.

.

0

.

.

0

.

.

-80.581

-2.948

0.008

-2.495

-2.409

0.026

-0.010

-0.014

0.989

26.262

-2.667

0.015

0.000

-0.441

0.664

0.000

-0.647

0.525

0.000

0.033

0.974

0.000

-0.653

0.521 0.335

-36.449

-1.458

0.688 0.160

0.000 -1.377

0.813 -1.407

0.426 0.175

198

0.000 -0.634

0.696 -1.037

0.495

0.000

0.312

14.235

0.987 -1.538

2010

t.

.

0.407

2009

Β

0

0.000

2008

0.140

CSP Index =1 CSP Index =2

0.454

2.207

(*)

0.039

0.863

3.117

(*)

0.005

0.597

2.893

(*)

0.009

0.668

2.748

(*)

0.012

0

.

.

0

.

.

0

.

.

0

.

.

-80.581

-2.948

0.008

-2.495

-2.409

0.026

-0.010

-0.014

0.989

26.262

-2.667

0.015

SIZE_S

0.000

-0.441

0.664

0.000

-0.647

0.525

0.000

0.033

0.974

0.000

-0.653

0.521

SIZE_A

0.000

0.407

0.688

0.000

0.813

0.426

0.000

0.696

0.495

0.000

0.987

0.335

0.312

14.235

-1.538

0.140

ROS Intercept

RISK

-36.449

-1.458

0.160

-1.377

-1.407

0.175

198

-0.634

-1.037

IND=0 IND=1 CSP Index =1 CSP Index =2

ROA Intercept SIZE_S SIZE_A RISK

96.654 0 105.770

3.715 . 3.970

0.001 .

(*)

3.386 0

0.001

3.985

3.840 . 4.234

0.001 .

(*)

-0.058 0

0.000

0.596

-0.088 . 0.831

0.930 .

(*)

31.683 0

0.0416

42.471

3.501 . 3.899

(*)

0.002

IND=0

96.654

3.715

0.001

3.386

3.840

0.001

-0.058

-0.088

0.930

31.683

3.501

0.002

.

IND=1

0

.

.

0

.

.

0

.

.

0

.

.

0.001

0

.

.

0

.

.

0

.

.

0

.

.

0.115

1.680

0.108

0.046

0.693

0.496

0.112

2.276

0.034

0.087

1.428

0.169

0.000 0.000 -0.114

-2.080 2.381 -1.821

0.051 0.027 0.084

0.000 0.000 -0.067

-1.591 2.141 -1.054

0.127 0.045 0.304

0.000 0.000 -0.139

-1.865 1.466 -3.361

0.077 0.158 0.003

0.000 0.000 -0.104

-0.947 1.066 -1.806


3.970

0.001

3.985

4.234

(*)

0.000

0.596

0.831

(*)

0.0416

42.471

3.899

(*)

0.001

0

.

.

0

.

.

0

.

.

0

.

.

ROA Intercept

0.115

1.680

0.108

0.046

0.693

0.496

0.112

2.276

0.034

0.087

1.428

0.169

0.355

SIZE_S

0.000

-2.080

0.051

0.000

-1.591

0.127

0.000

-1.865

0.077

0.000

-0.947

0.355

0.299

SIZE_A

0.000

2.381

0.027

0.000

2.141

0.045

0.000

1.466

0.158

0.000

1.066

0.299

0.086

RISK

-0.114

-1.821

0.084

-0.067

-1.054

0.304

-0.139

-3.361

0.003

-0.104

-1.806

0.086

0.048

0.740

0.468

0.056

0.982

0.338

0.037

0.834

0.414

0.039

0.686

0.500

0

.

.

0

.

.

0

.

.

0

.

.

0.038

0.564

0.579

0.073

1.201

0.244

0.029

0.594

0.559

0.055

0.819

0.423

0

.

.

0

.

.

0

.

.

0

.

.

IND=0

0.048

0.740

0.468

0.056

0.982

0.338

0.037

0.834

0.414

0.039

0.686

0.500

IND=0

IND=1

0

.

.

0

.

.

0

.

.

0

.

.

IND=1


105.770

(*)

0.038

0.564

0.579

0.073

1.201

0.244

0.029

0.594

0.559

0.055

0.819

0.423

0

.

.

0

.

.

0

.

.

0

.

.


Source: By the Researcher

Source: By the Researcher

9. Recommendations

9. Recommendations

Based on the above findings the researcher suggests the following recommendations:

Based on the above findings the researcher suggests the following recommendations:

 Corporate social responsibility is a relatively new concept in the Arab region. Hence the media should play an effective role in spreading awareness about the social responsibilities of companies, alongside with research centers and universities, in order to prepare the public culture to induce the socially responsible practices.

 Corporate social responsibility is a relatively new concept in the Arab region. Hence the media should play an effective role in spreading awareness about the social responsibilities of companies, alongside with research centers and universities, in order to prepare the public culture to induce the socially responsible practices.

 Social responsibility on the regional level is a collective responsibility. So the researcher recommends that all the forces of the society should work together to reap the benefits of CSR practices. The private sector should carry a part of it alongside the government, civil society, Non-Governmental organizations, international organizations and foreign companies operating in Arab countries.

 Social responsibility on the regional level is a collective responsibility. So the researcher recommends that all the forces of the society should work together to reap the benefits of CSR practices. The private sector should carry a part of it alongside the government, civil society, Non-Governmental organizations, international organizations and foreign companies operating in Arab countries.

 It is recommended that companies should integrate their social and environmental goals into their core business function in order to improve their business processes.

 It is recommended that companies should integrate their social and environmental goals into their core business function in order to improve their business processes.

 Due to the lack of information regarding companies’ social and environmental performance, the researcher recommends that companies should be legally forced to report on a set of social and environmental measures and to provide enough information regarding their social performance.

 Due to the lack of information regarding companies’ social and environmental performance, the researcher recommends that companies should be legally forced to report on a set of social and environmental measures and to provide enough information regarding their social performance.

 The researcher recommends that all parties interested in CSR field should work on a better index to measure CSP than the one already present on the Egyptian Stock Market (S&P/ESG index). As – according to the researcher’s opinion - it fails to properly assess CSR components as well as the weights applied to each component to properly measure its relative importance.

 The researcher recommends that all parties interested in CSR field should work on a better index to measure CSP than the one already present on the Egyptian Stock Market (S&P/ESG index). As – according to the researcher’s opinion - it fails to properly assess CSR components as well as the weights applied to each component to properly measure its relative importance.

 Based on the findings of the applied study, the researcher recommends that the Egyptian companies should properly apply CSR practices due to its positive impact on the companies’ financial performance, which raises the share price of these companies, encouraging more and more investments.

 Based on the findings of the applied study, the researcher recommends that the Egyptian companies should properly apply CSR practices due to its positive impact on the companies’ financial performance, which raises the share price of these companies, encouraging more and more investments.

 The researcher also recommends that the Egyptian government should give proper incentives to companies in order to encourage them to engage in CSR practices. This includes tax exemptions, or enhancing the companies’ reputation in media due to their social and environmental contribution.

 The researcher also recommends that the Egyptian government should give proper incentives to companies in order to encourage them to engage in CSR practices. This includes tax exemptions, or enhancing the companies’ reputation in media due to their social and environmental contribution.

199

199

9. References

9. References

Elliott, A. C., Woodward, A. W., (2007), Statistical Analysis Quick Reference Guidebook: With SPSS Examples, Sage Publications, Inc., U.S.A, pp. 11-16.

Elliott, A. C., Woodward, A. W., (2007), Statistical Analysis Quick Reference Guidebook: With SPSS Examples, Sage Publications, Inc., U.S.A, pp. 11-16.

Leech, N. L., Barrett, K. C., & Morgan, G. A., (2005), SPSS for Intermediate Statistics: Use and Interpretation, 2nd ed., New Gersy, Lawrence Erlbaum Associates, Inc., Publishers, pp. 124-129

Leech, N. L., Barrett, K. C., & Morgan, G. A., (2005), SPSS for Intermediate Statistics: Use and Interpretation, 2nd ed., New Gersy, Lawrence Erlbaum Associates, Inc., Publishers, pp. 124-129

Margolis, J.D., Walsh, J.P., (2001), People and Profits? The Search for a Link between a Company’s Social and Financial Performance. Mahwah, NJ: Erlbaum Associates, p.17


Allouche, J., (2005), “A Meta-Analytical Examination of the Link between Corporate Social and Financial Performance”,Groupe de Recherche en Gestion des Organisations,IAE de Paris, Université Paris, Panthéon-Sorbonne, pp. 4-5

Allouche, J., (2005), “A Meta-Analytical Examination of the Link between Corporate Social and Financial Performance”,Groupe de Recherche en Gestion des Organisations,IAE de Paris, Université Paris, Panthéon-Sorbonne, pp. 4-5

Demacarty, P. (2009), “Financial returns of Corporate Social Responsibility, and Moral Freedom and Responsibility of Business Leader”, Business & Society Review, Vol. 114, No. 3, p. 398

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The Impact of the Integration of Financial and Non-Financial Disclosure on Accuracy and Dispersion of Financial Analyst's Forecasts: The Case of Corporate Social Responsibility Reports.

The Impact of the Integration of Financial and Non-Financial Disclosure on Accuracy and Dispersion of Financial Analyst's Forecasts: The Case of Corporate Social Responsibility Reports.

Reda Abdelrehim Faculty of Commerce - Alexandria University [email protected]

Reda Abdelrehim Faculty of Commerce - Alexandria University [email protected]

Abstract

Abstract

Purpose of this paper is to examine the relationship between integration of financial disclosure and disclosure of non-financial on analyst forecast accuracy. In the proposed framework, information disclosed in the financial statements was used as proxy for financial disclosure, while the information disclosed in corporate social responsibility (CSR) reports is used as a proxy for disclosure of non financial information. Literature review reveals that the financial information is not sufficient to meet the needs of users and the integration with the disclosure of non-financial (reports of corporate social responsibility) will improve the predictive ability of financial analysts, leading to a reduction of uncertainty and information asymmetry.

Purpose of this paper is to examine the relationship between integration of financial disclosure and disclosure of non-financial on analyst forecast accuracy. In the proposed framework, information disclosed in the financial statements was used as proxy for financial disclosure, while the information disclosed in corporate social responsibility (CSR) reports is used as a proxy for disclosure of non financial information. Literature review reveals that the financial information is not sufficient to meet the needs of users and the integration with the disclosure of non-financial (reports of corporate social responsibility) will improve the predictive ability of financial analysts, leading to a reduction of uncertainty and information asymmetry.

Key words: financial & non-financial disclosure, corporate social responsibility, analyst forecast accuracy.

Key words: financial & non-financial disclosure, corporate social responsibility, analyst forecast accuracy.

1. Introduction

1. Introduction

Disclosure covers a broader range of companies includes mandatory and Voluntary disclosure, financial and non-financial disclosure (Abernathy et al, 2013). In (Huang et al, 2013) study, it was indicated that the disclosure in accordance with the requirements of laws, standards and requirements of the capital market is a mandatory disclosure while disclose that exceeds the requirement of laws and standards, and the Capital Market Authority is Voluntary disclosure. Whether disclosure is mandatory or voluntary, it can be classified into financial and non-financial disclosure, according to the nature of the information disclosed. If the disclosed information is information in the financial statements, it is considered a financial disclosure, while the delivery of social and environmental impacts, economic events for companies to interest groups within the community as a whole represents a non-financial disclosure (Evangelinos& Skouloudis.2014).

Disclosure covers a broader range of companies includes mandatory and Voluntary disclosure, financial and non-financial disclosure (Abernathy et al, 2013). In (Huang et al, 2013) study, it was indicated that the disclosure in accordance with the requirements of laws, standards and requirements of the capital market is a mandatory disclosure while disclose that exceeds the requirement of laws and standards, and the Capital Market Authority is Voluntary disclosure. Whether disclosure is mandatory or voluntary, it can be classified into financial and non-financial disclosure, according to the nature of the information disclosed. If the disclosed information is information in the financial statements, it is considered a financial disclosure, while the delivery of social and environmental impacts, economic events for companies to interest groups within the community as a whole represents a non-financial disclosure (Evangelinos& Skouloudis.2014).

Number of studies (Malgharni et al, 2011; Dhaliwal et al, 2012; Arvidsson, 2011; Orens & Lybaert. 2007( agreed on Increasing importance of disclosure of non-financial information. This is due to criticisms of disclosure of financial information, mainly providing historical and aggregate information rather than ignores the disclosure of many items, especially non-financial. The findings of these studies that increased disclosure of non-financial information as well as financial information will lead to better decision-making and increase the accuracy of forecasts and the reduction of uncertainty and information asymmetry.

Number of studies (Malgharni et al, 2011; Dhaliwal et al, 2012; Arvidsson, 2011; Orens & Lybaert. 2007( agreed on Increasing importance of disclosure of non-financial information. This is due to criticisms of disclosure of financial information, mainly providing historical and aggregate information rather than ignores the disclosure of many items, especially non-financial. The findings of these studies that increased disclosure of non-financial information as well as financial information will lead to better decision-making and increase the accuracy of forecasts and the reduction of uncertainty and information asymmetry.

Therefore, this paper proposes a framework of the impact of integration of financial and non-financial disclosure on accuracy and dispersion of financial analyst's forecasts. Financial analysts need to use elements of non-financial information, those which are appropriate to current business environment, along with financial information to increase the accuracy of forecasts. Non- financial information also helps them to assess the company's ability to achieve future profits and reduce the risks of uncertainty about the future performance due to its ability and the role of predictive (Nichol &. Wieland. 2009).

Therefore, this paper proposes a framework of the impact of integration of financial and non-financial disclosure on accuracy and dispersion of financial analyst's forecasts. Financial analysts need to use elements of non-financial information, those which are appropriate to current business environment, along with financial information to increase the accuracy of forecasts. Non- financial information also helps them to assess the company's ability to achieve future profits and reduce the risks of uncertainty about the future performance due to its ability and the role of predictive (Nichol &. Wieland. 2009).

2. Financial disclosure, accuracy and dispersion of financial analyst's forecasts

2. Financial disclosure, accuracy and dispersion of financial analyst's forecasts

Both of (Pae & Yoon, 2012; Deslauriers.2011) studies tested the effect of Cash flow information, as a financial information that reduce earnings management process for improving the transparency of accruals, on the accuracy and dispersion of financial analysts forecasts. Both of them found an increase in the ability of cash

Both of (Pae & Yoon, 2012; Deslauriers.2011) studies tested the effect of Cash flow information, as a financial information that reduce earnings management process for improving the transparency of accruals, on the accuracy and dispersion of financial analysts forecasts. Both of them found an increase in the ability of cash

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flow information to influence the accuracy of financial analysts' forecasts of future profits, but they concluded that the dispersion of forecasts increases in the case of companies that have high quality of earnings. While examining the impact of use of accounting information on the accuracy of financial analysts forecasts in Romania, (Ionascu & Ionascu, 2012) study found that the increased financial disclosure leads to increased financial analysts forecast accuracy. Nevertheless, the study ignored the role of financial information amount in enhancing of financial analysts forecast accuracy.

flow information to influence the accuracy of financial analysts' forecasts of future profits, but they concluded that the dispersion of forecasts increases in the case of companies that have high quality of earnings. While examining the impact of use of accounting information on the accuracy of financial analysts forecasts in Romania, (Ionascu & Ionascu, 2012) study found that the increased financial disclosure leads to increased financial analysts forecast accuracy. Nevertheless, the study ignored the role of financial information amount in enhancing of financial analysts forecast accuracy.

Further more (Cotter et al, 2012) study examined the impact of the adoption of International Financial Reporting Standards (IFRS) on the accuracy and dispersion of financial analysts forecast earnings. The study found that adopting IFRS standards make companies provide more disclosure in the financial statements, allowing analysts to have a better understanding of the performance and expectations of the companies and thus increase the financial analysts forecast earnings accuracy and low dispersion predictions. While the aim of (Hope, 2003) study is to examine the relationship between levels of disclosure in the annual report and the degree of obligation of accounting standards and financial analysts forecast accuracy, the study concluded that the financial disclosure at the firm level increases the accuracy of forecasts and provides useful information to analysts. It also concluded that encouraging managers' commitment to accounting standards lead to a reduction of uncertainty for financial analysts about future earnings.

Further more (Cotter et al, 2012) study examined the impact of the adoption of International Financial Reporting Standards (IFRS) on the accuracy and dispersion of financial analysts forecast earnings. The study found that adopting IFRS standards make companies provide more disclosure in the financial statements, allowing analysts to have a better understanding of the performance and expectations of the companies and thus increase the financial analysts forecast earnings accuracy and low dispersion predictions. While the aim of (Hope, 2003) study is to examine the relationship between levels of disclosure in the annual report and the degree of obligation of accounting standards and financial analysts forecast accuracy, the study concluded that the financial disclosure at the firm level increases the accuracy of forecasts and provides useful information to analysts. It also concluded that encouraging managers' commitment to accounting standards lead to a reduction of uncertainty for financial analysts about future earnings.

Previous studies (Cotter et al, 2012; Ionascu & Ionascu, 2012; Deslauriers.2011; Hope, 2003) showed that the disclosure of financial information leads to increased financial analysts forecast accuracy. In spite of that (Hosseini.2014; Porter & Kraut.2013; Mensah et al.2004) disagreed with this claim showing that disclosure of financial information lead to lower predictive ability of financial analysts. Both (Hosseini.2014; Porter & Kraut.2013) agreed that earnings management is considered as one of the common measures used by financial analysts to measure earnings quality while preparing their earnings forecasts. Therefore whenever there was a manipulation opportunistic behavior of management, it will lead to lower earnings quality, which will adversely affect the accuracy and dispersion of financial analyst's earnings forecasts. Also )Mensah et al.2004( study claimed that more conservative accounting practices adoption will lead to the presence of fluctuations in the accounting earnings and therefore would adversely affect the predictive ability of financial analysts earnings.

Previous studies (Cotter et al, 2012; Ionascu & Ionascu, 2012; Deslauriers.2011; Hope, 2003) showed that the disclosure of financial information leads to increased financial analysts forecast accuracy. In spite of that (Hosseini.2014; Porter & Kraut.2013; Mensah et al.2004) disagreed with this claim showing that disclosure of financial information lead to lower predictive ability of financial analysts. Both (Hosseini.2014; Porter & Kraut.2013) agreed that earnings management is considered as one of the common measures used by financial analysts to measure earnings quality while preparing their earnings forecasts. Therefore whenever there was a manipulation opportunistic behavior of management, it will lead to lower earnings quality, which will adversely affect the accuracy and dispersion of financial analyst's earnings forecasts. Also )Mensah et al.2004( study claimed that more conservative accounting practices adoption will lead to the presence of fluctuations in the accounting earnings and therefore would adversely affect the predictive ability of financial analysts earnings.

This was confirmed by the (Malgharni et al, 2011) that the financial information is no longer meeting the needs of users and investors because historical and aggregated information does not provide anything about expected future events. This is also matching what is indicated by each of (Dhaliwal et al, 2012; Orens & Lybaert. 2007; Hope, 2003) that financial information is not sufficient to increase financial analysts forecast accuracy because it (ignore) some non-financial information, such as customer satisfaction and the reputation of the facility and how efficient are skilled workers and what affect the success of firms and future performance.

This was confirmed by the (Malgharni et al, 2011) that the financial information is no longer meeting the needs of users and investors because historical and aggregated information does not provide anything about expected future events. This is also matching what is indicated by each of (Dhaliwal et al, 2012; Orens & Lybaert. 2007; Hope, 2003) that financial information is not sufficient to increase financial analysts forecast accuracy because it (ignore) some non-financial information, such as customer satisfaction and the reputation of the facility and how efficient are skilled workers and what affect the success of firms and future performance.

Therefore several studies (Gasperini et al, 2012; Popa et al, 2012; Arvidsson, 2011; Simpson, 2010; Orens & Lybaert. 2007) agreed on the importance of disclosure of non-financial information to improve the decisions of users and stakeholders. Both studies (Arvidsson, 2011; Orens & Lybaert. 2007) agreed on the importance of disclosure of non-financial information as a result of increased competition and globalization and technological development and provide new business, and non-financial disclosure leads to reduce information asymmetry, which leads to the reduction of the risks of investing in the company's report leading to improved liquidity of the shares of companies, and therefore increase the efficiency of investment decisions that can be obtained. Also, financial analyst will be more convinced about the reliability of financial information when the company also discloses non-financial information.

Therefore several studies (Gasperini et al, 2012; Popa et al, 2012; Arvidsson, 2011; Simpson, 2010; Orens & Lybaert. 2007) agreed on the importance of disclosure of non-financial information to improve the decisions of users and stakeholders. Both studies (Arvidsson, 2011; Orens & Lybaert. 2007) agreed on the importance of disclosure of non-financial information as a result of increased competition and globalization and technological development and provide new business, and non-financial disclosure leads to reduce information asymmetry, which leads to the reduction of the risks of investing in the company's report leading to improved liquidity of the shares of companies, and therefore increase the efficiency of investment decisions that can be obtained. Also, financial analyst will be more convinced about the reliability of financial information when the company also discloses non-financial information.

Furthermore, (Popa et al, 2012) claimed that the analysis of the company's performance from just a financial point doesn't reflect the real situation of the company. In this case, the disclosure of non-financial information along with financial information will reflect the real situation of the company. The study confirmed the need to be based on a comprehensive disclosure of both financial and non-financial information. In the same context, (Simpson, 2010) claimed that the disclosure of non-financial information of an assessment of its role during the disclosure of leadership or leading to a number of standards-based accounting disclosed indicators such as revenue, profit margins and return on sales. On the other hand (Gasperini et al, 2012) ensured the

Furthermore, (Popa et al, 2012) claimed that the analysis of the company's performance from just a financial point doesn't reflect the real situation of the company. In this case, the disclosure of non-financial information along with financial information will reflect the real situation of the company. The study confirmed the need to be based on a comprehensive disclosure of both financial and non-financial information. In the same context, (Simpson, 2010) claimed that the disclosure of non-financial information of an assessment of its role during the disclosure of leadership or leading to a number of standards-based accounting disclosed indicators such as revenue, profit margins and return on sales. On the other hand (Gasperini et al, 2012) ensured the

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importance of non-financial information because it provides a variety of information to stakeholders is to disclose the environmental and economic risks, which may not provide financial reports alone.

importance of non-financial information because it provides a variety of information to stakeholders is to disclose the environmental and economic risks, which may not provide financial reports alone.

In conclusion, although the positive impact of the financial disclosure on the accuracy and dispersion of financial analysts forecasts, there are some practices, such as earnings management and accounting policies conservative, lead to a decline in the positive impact of the financial disclosure on the accuracy and dispersion of financial analysts forecasts. In addition to the disclosure of financial information alone is not enough to meet the needs of all stakeholders because of historical information and focuses on short-term. The most important reason is the emergence of globalization and increasing technology and the appearance of giant companies rely primarily on non-financial information. Thus requiring more disclosure of non-financial together with the financial disclosure. In the following sections, the impact of non-financial information disclosure represented in the disclosure of corporate social responsibility, on the accuracy and dispersion of financial analysts forecasts.

In conclusion, although the positive impact of the financial disclosure on the accuracy and dispersion of financial analysts forecasts, there are some practices, such as earnings management and accounting policies conservative, lead to a decline in the positive impact of the financial disclosure on the accuracy and dispersion of financial analysts forecasts. In addition to the disclosure of financial information alone is not enough to meet the needs of all stakeholders because of historical information and focuses on short-term. The most important reason is the emergence of globalization and increasing technology and the appearance of giant companies rely primarily on non-financial information. Thus requiring more disclosure of non-financial together with the financial disclosure. In the following sections, the impact of non-financial information disclosure represented in the disclosure of corporate social responsibility, on the accuracy and dispersion of financial analysts forecasts.

3. Non-financial disclosure, accuracy and dispersion of financial analyst's forecasts

3. Non-financial disclosure, accuracy and dispersion of financial analyst's forecasts

Numerous studies (Cormier & Magnan .2014; He et al.2013; Dhaliwal et al, 2012; Bouten et al.2011) show the role of corporate social responsibility, as one of the types of non-financial information disclosure, which includes both the disclosure of environmental and social disclosure, and the impact of this disclosure on the accuracy and dispersion of financial analysts earnings forecasts.

Numerous studies (Cormier & Magnan .2014; He et al.2013; Dhaliwal et al, 2012; Bouten et al.2011) show the role of corporate social responsibility, as one of the types of non-financial information disclosure, which includes both the disclosure of environmental and social disclosure, and the impact of this disclosure on the accuracy and dispersion of financial analysts earnings forecasts.

These studies concluded that the disclosure of non-financial via reports of corporate social responsibility will lead to decrease errors and dispersion of financial analyst's forecasts. This is because of social responsibility information will improve financial performance by improving the company's reputation and brand and thus lead to improved consumer assessment of the quality of the product, which increases the sales and reduce costs increasing operational efficiency. The disclosure of social liability Information leads to improving the welfare of workers, leading to increased productivity and thus improve financial performance. Finally, the disclosure of corporate social responsibility information reduces the risk faced by companies such as regulatory risks and the risk of litigation.

These studies concluded that the disclosure of non-financial via reports of corporate social responsibility will lead to decrease errors and dispersion of financial analyst's forecasts. This is because of social responsibility information will improve financial performance by improving the company's reputation and brand and thus lead to improved consumer assessment of the quality of the product, which increases the sales and reduce costs increasing operational efficiency. The disclosure of social liability Information leads to improving the welfare of workers, leading to increased productivity and thus improve financial performance. Finally, the disclosure of corporate social responsibility information reduces the risk faced by companies such as regulatory risks and the risk of litigation.

Further more (Cormier & Magnan .2014) indicated that the presence of good governance by the companies to the disclosure of social responsibility increases the predictive ability of financial analysts, profits and thus reduce uncertainty and information asymmetry between corporate managers and stakeholders, particularly investors. On the other hand (He et al.2013) claims that the impact of corporate social responsibility disclosure is strong in the companies that is controlled from private sector which are located in areas with good institutional environment and industries which have a high interest in social responsibility. as claimed by (Dhaliwal et al, 2012) the disclosure of the reports of social responsibility will improve the accuracy of forecasts in countries that are stakeholders oriented rather than shareholders oriented, and that there is a positive relationship between the lack of financial transparency and forecasts errors and disclosure of Social Responsibility to mitigate the negative impact of the lack of financial transparency on the financial analyst forecast accuracy.

Further more (Cormier & Magnan .2014) indicated that the presence of good governance by the companies to the disclosure of social responsibility increases the predictive ability of financial analysts, profits and thus reduce uncertainty and information asymmetry between corporate managers and stakeholders, particularly investors. On the other hand (He et al.2013) claims that the impact of corporate social responsibility disclosure is strong in the companies that is controlled from private sector which are located in areas with good institutional environment and industries which have a high interest in social responsibility. as claimed by (Dhaliwal et al, 2012) the disclosure of the reports of social responsibility will improve the accuracy of forecasts in countries that are stakeholders oriented rather than shareholders oriented, and that there is a positive relationship between the lack of financial transparency and forecasts errors and disclosure of Social Responsibility to mitigate the negative impact of the lack of financial transparency on the financial analyst forecast accuracy.

Also (Bouten et al.2011) claimed that in order for information and reports of social responsibility to be of benefit to users and stakeholders, it must not only identify information elements disclosed about the reports of social responsibility but it must be characterized as well by comprehensive information. This can be done for information to be (1) a specific goal (2) events required to achieve the target (3) the subsequent performance, for example, if an element of social responsibility is the emissions, it must include the information that the company discloses its goal of reducing emissions by a certain amount and specific events to achieve this goal and the result which is the amount of actual reduction.

Also (Bouten et al.2011) claimed that in order for information and reports of social responsibility to be of benefit to users and stakeholders, it must not only identify information elements disclosed about the reports of social responsibility but it must be characterized as well by comprehensive information. This can be done for information to be (1) a specific goal (2) events required to achieve the target (3) the subsequent performance, for example, if an element of social responsibility is the emissions, it must include the information that the company discloses its goal of reducing emissions by a certain amount and specific events to achieve this goal and the result which is the amount of actual reduction.

Literature review reveals Independent variables which are disclosure of social responsibility information during a certain period, which have been measured from the index for the disclosure of nonfinancial information contained in these reports, while the dependent variable represents predictions of financial analysts accuracy measured by forecasts errors, which represents the absolute value of the difference between

Literature review reveals Independent variables which are disclosure of social responsibility information during a certain period, which have been measured from the index for the disclosure of nonfinancial information contained in these reports, while the dependent variable represents predictions of financial analysts accuracy measured by forecasts errors, which represents the absolute value of the difference between

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the predicted value and the actual value of the earnings divided by the share price at the beginning of the year. The dispersion of forecasts that are measured by the standard deviation of forecasts. In conclusion the disclosure of non-financial form performance of companies in meeting social and environmental responsibilities towards the community, will lead to an increase in the level and quality of non-financial information available to financial analysts, Which are used in addition to financial information to get a more accurate forecasts and less dispersed.

the predicted value and the actual value of the earnings divided by the share price at the beginning of the year. The dispersion of forecasts that are measured by the standard deviation of forecasts. In conclusion the disclosure of non-financial form performance of companies in meeting social and environmental responsibilities towards the community, will lead to an increase in the level and quality of non-financial information available to financial analysts, Which are used in addition to financial information to get a more accurate forecasts and less dispersed.

4. The proposed framework

4. The proposed framework

Today's business environment is rapidly changing, and is characterized by increasing competition and technological change, which result in reducing the positive impact of the predictive ability of financial analysts. Taking into consideration criticisms of financial disclosure's failure to meet the needs of stakeholders within this business environment, the proposed framework, as shown in fig. (1), suggests that the corporate social responsibility disclosure, as a non-financial disclosure which includes both environmental and social aspects, will strengthen of financial disclosure. It is expected that the integration of both financial and non-financial disclosure will enhance the predictive ability of financial analysts. This is because it will reflect the important economic, social and environmental effects, resulting in a reduction of information asymmetry and improvement of decision-making process.

Today's business environment is rapidly changing, and is characterized by increasing competition and technological change, which result in reducing the positive impact of the predictive ability of financial analysts. Taking into consideration criticisms of financial disclosure's failure to meet the needs of stakeholders within this business environment, the proposed framework, as shown in fig. (1), suggests that the corporate social responsibility disclosure, as a non-financial disclosure which includes both environmental and social aspects, will strengthen of financial disclosure. It is expected that the integration of both financial and non-financial disclosure will enhance the predictive ability of financial analysts. This is because it will reflect the important economic, social and environmental effects, resulting in a reduction of information asymmetry and improvement of decision-making process.

In addition, the proposed framework includes disclosure about two aspects of information covering three dimensions: Financial information (Economic dimension) and non-financial information (Environmental and Social dimensions), which is consistent with Global Reports Initiative (GRI) that adopt the preparation of reports containing information on the economic, social and environmental aspects enabling stakeholders to asses and evaluate corporate performance (Gasperini et al, 2012). This framework can be applied by companies through the disclosure of this information within integrated reports that include financial and non-financial information, which is consistent with International Integrated Reporting Council (IIRC) (Gasperini et al, 2012). Expected benefits of applying this framework include costs reduction and risks minimization, rather than enabling companies to keep up with severe competition in today's rapid environmental change and complexity.

In addition, the proposed framework includes disclosure about two aspects of information covering three dimensions: Financial information (Economic dimension) and non-financial information (Environmental and Social dimensions), which is consistent with Global Reports Initiative (GRI) that adopt the preparation of reports containing information on the economic, social and environmental aspects enabling stakeholders to asses and evaluate corporate performance (Gasperini et al, 2012). This framework can be applied by companies through the disclosure of this information within integrated reports that include financial and non-financial information, which is consistent with International Integrated Reporting Council (IIRC) (Gasperini et al, 2012). Expected benefits of applying this framework include costs reduction and risks minimization, rather than enabling companies to keep up with severe competition in today's rapid environmental change and complexity.

Disclosure of information

Disclosure of non-financial information

Disclosure of information

Disclosure of Financial Information

Reports Corporate Social Responsibility Environmental

Disclosure of non-financial information Reports Corporate Social Responsibility

Financial Statements

Social

Environmental

Analyst's properties

Predictive ability of financial analysts

Forecasts properties

Years of Experience

Dispersion forecasts

Financial Statements

Social

Predictive ability of financial analysts

The companies that follow-up

Disclosure of Financial Information

Accuracy of forecasts

Analyst's properties

The companies that follow-up

Forecasts properties

Years of Experience

Dispersion forecasts

Accuracy of forecasts

Reduce information asymmetry / reduction of uncertainty / improve decision-making process for users

Reduce information asymmetry / reduction of uncertainty / improve decision-making process for users

Figure 1. Integration of financial and non-financial disclosure on accuracy and dispersion of financial analyst's forecasts

Figure 1. Integration of financial and non-financial disclosure on accuracy and dispersion of financial analyst's forecasts

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In conclusion, Disclosure of non-financial reports through corporate social responsibility will lead to an increase in information available to financial analysts and will be used alongside with financial information to get a more accurate forecasts and less dispersion. The existence of good corporate governance through various mechanisms will improve the predictive ability of financial analysts which results in reducing both the uncertainty and asymmetry of information to stakeholders in the company.

In conclusion, Disclosure of non-financial reports through corporate social responsibility will lead to an increase in information available to financial analysts and will be used alongside with financial information to get a more accurate forecasts and less dispersion. The existence of good corporate governance through various mechanisms will improve the predictive ability of financial analysts which results in reducing both the uncertainty and asymmetry of information to stakeholders in the company.

5. Conclusion

5. Conclusion

The paper examined whether the integration of financial and non-financial disclosure (measured by reports of social responsibility) will have a greater impact on the accuracy and dispersion of financial analysts earnings forecasts, compared to using only financial disclosure. The paper found that the use of non-financial information through reports of social responsibility will address the shortcomings in the financial information. In addition, the paper found through previous studies show that it increases the predictive ability of financial analysts at the use of non-financial information as a supplement to financial information. The proposed framework for the relationship between the financial and non-financial disclosure, the accuracy and dispersion of financial analyst's forecasts, which will be tested experimentally in future work.

The paper examined whether the integration of financial and non-financial disclosure (measured by reports of social responsibility) will have a greater impact on the accuracy and dispersion of financial analysts earnings forecasts, compared to using only financial disclosure. The paper found that the use of non-financial information through reports of social responsibility will address the shortcomings in the financial information. In addition, the paper found through previous studies show that it increases the predictive ability of financial analysts at the use of non-financial information as a supplement to financial information. The proposed framework for the relationship between the financial and non-financial disclosure, the accuracy and dispersion of financial analyst's forecasts, which will be tested experimentally in future work.

6. References

6. References

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Author’s Profile

Author’s Profile

Reda Abdelrehim is currently serving as Assistant Lecturer, Dep. Accounting, Faculty of Commerce, University of Alexandria. Holds a Bachelor of Commerce, Accounting Major in May 2001, The Master of Accounting in March 2010. Thesis entitled "the determinants of the quality of the internal audit function and its impact on enhancing of corporate governance."(in Arabic). I am currently a PhD- researcher in Financial Accounting Field.

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Reda Abdelrehim is currently serving as Assistant Lecturer, Dep. Accounting, Faculty of Commerce, University of Alexandria. Holds a Bachelor of Commerce, Accounting Major in May 2001, The Master of Accounting in March 2010. Thesis entitled "the determinants of the quality of the internal audit function and its impact on enhancing of corporate governance."(in Arabic). I am currently a PhD- researcher in Financial Accounting Field.

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Theory of Reasoned Action and Accountability Perspectives on CSR Contribution to Environmental Sustainability in Developing Countries

Theory of Reasoned Action and Accountability Perspectives on CSR Contribution to Environmental Sustainability in Developing Countries

Mfon Jeremiah1; Kumba Jallow2; and Natalia Vershinina3 Dept of Strategic Management and Marketing, Leicester Business School, De Montfort University Leicester LE1 9BH, UK 1 Mfon Jeremiah, Doctoral Research Student, e-mail: [email protected] 2 Kumba Jallow, PhD., e-mail: [email protected] 3 Natalia Vershinina, PhD., e-mail: [email protected]

Mfon Jeremiah1; Kumba Jallow2; and Natalia Vershinina3 Dept of Strategic Management and Marketing, Leicester Business School, De Montfort University Leicester LE1 9BH, UK 1 Mfon Jeremiah, Doctoral Research Student, e-mail: [email protected] 2 Kumba Jallow, PhD., e-mail: [email protected] 3 Natalia Vershinina, PhD., e-mail: [email protected]

Abstract

Abstract

There has been a significant policy change in several organisations particularly in the mining, and oil and gas industries attempting to implement effective corporate social responsibility (CSR) perspectives in the last two decades. Voluntary approach is at the centre of the CSR debate presently. Its non-mandatory perspective to corporate environmental sustainability makes it popular among firms, governments and global development actors. However, commitment to its implementation and contribution to environmental sustainability differs greatly in developed and developing countries. The authors believe that, voluntary CSR is almost incapable of enabling the envisaged sustainable development in developing countries given the persistent weak legal system and business pursuit of corporate profits at the detriment of the local environment. Therefore, we use theory of reasoned action (TRA) to propose that accountability perspective of CSR is not only capable of influencing multinational corporations’ intention to improve their environmental behaviour but can also fast-track performance of such intentions in developing countries.

There has been a significant policy change in several organisations particularly in the mining, and oil and gas industries attempting to implement effective corporate social responsibility (CSR) perspectives in the last two decades. Voluntary approach is at the centre of the CSR debate presently. Its non-mandatory perspective to corporate environmental sustainability makes it popular among firms, governments and global development actors. However, commitment to its implementation and contribution to environmental sustainability differs greatly in developed and developing countries. The authors believe that, voluntary CSR is almost incapable of enabling the envisaged sustainable development in developing countries given the persistent weak legal system and business pursuit of corporate profits at the detriment of the local environment. Therefore, we use theory of reasoned action (TRA) to propose that accountability perspective of CSR is not only capable of influencing multinational corporations’ intention to improve their environmental behaviour but can also fast-track performance of such intentions in developing countries.

Key Words: Corporate social responsibility, accountability perspective of CSR, voluntary perspective of CSR, environmental sustainability, legal system, negative injunction duty, theory of reasoned action, intention, environmental behaviour.

Key Words: Corporate social responsibility, accountability perspective of CSR, voluntary perspective of CSR, environmental sustainability, legal system, negative injunction duty, theory of reasoned action, intention, environmental behaviour.

1. Introduction

1. Introduction

There has been a significant policy change in several organizations particularly in the mining, and oil and gas industries attempting to implement effective corporate social responsibility (CSR) perspectives in the last two decades (Boele, Fabig and Wheeler 2001; Amaeshi et al, 2006; Ite, 2007; Idemudia, 2007; Esteves & Barclay, 2011; Amadi & Abdullah, 2012). Corporate executives now appear to recognise the obligations that companies have to contribute to the social and environmental sustainability of the communities in which they operate (Dashwood, 2007). Partly, such a change can be attributed to the recognition that opposition from local communities is a significant source of business risk (Esteves & Barclays 2011). For instance, the impasse faced by Shell Petroleum Development Company (SPDC) in the Niger Delta regions of Nigeria since 1990s is a clear case in this context. Indeed, under pressure from the host communities, Shell was forced to pull out from their operational base, e.g. Ogoniland in Niger Delta region of Nigeria, in 1993 (Boele, Fabig, & Wheeler 2001). This led to loss of significant business revenue (Idemudia, 2007). Since then, in order to find its way back to Ogoniland, Shell has re-invented its corporate strategy in line with principles of sustainable development and it has committed itself to some level of stakeholder engagement on its environmental and social performance (Ite 2007; Idemudia, 2011), which would have been unthinkable before the protest organised by Movement for Survival of Ogoni People (MOSOP) in December 1993 (Boele et al, 2001).

There has been a significant policy change in several organizations particularly in the mining, and oil and gas industries attempting to implement effective corporate social responsibility (CSR) perspectives in the last two decades (Boele, Fabig and Wheeler 2001; Amaeshi et al, 2006; Ite, 2007; Idemudia, 2007; Esteves & Barclay, 2011; Amadi & Abdullah, 2012). Corporate executives now appear to recognise the obligations that companies have to contribute to the social and environmental sustainability of the communities in which they operate (Dashwood, 2007). Partly, such a change can be attributed to the recognition that opposition from local communities is a significant source of business risk (Esteves & Barclays 2011). For instance, the impasse faced by Shell Petroleum Development Company (SPDC) in the Niger Delta regions of Nigeria since 1990s is a clear case in this context. Indeed, under pressure from the host communities, Shell was forced to pull out from their operational base, e.g. Ogoniland in Niger Delta region of Nigeria, in 1993 (Boele, Fabig, & Wheeler 2001). This led to loss of significant business revenue (Idemudia, 2007). Since then, in order to find its way back to Ogoniland, Shell has re-invented its corporate strategy in line with principles of sustainable development and it has committed itself to some level of stakeholder engagement on its environmental and social performance (Ite 2007; Idemudia, 2011), which would have been unthinkable before the protest organised by Movement for Survival of Ogoni People (MOSOP) in December 1993 (Boele et al, 2001).

Following the protest, which is a component of enforceability concept of accountability (Schedler, 1999), oil MNCs started embarking on corporate social responsibility (CSR) initiatives in Niger Delta region of Nigeria using community assistance (CA) and corporate-community partnership (CCP) approaches (Ite, 2006; Idemudia, 2007). The CA approach to host community development placed emphasis on corporate philanthropy, which is the most basic level of CSR (Ite 2007). Partnership strategies were adopted by oil Multinational

Following the protest, which is a component of enforceability concept of accountability (Schedler, 1999), oil MNCs started embarking on corporate social responsibility (CSR) initiatives in Niger Delta region of Nigeria using community assistance (CA) and corporate-community partnership (CCP) approaches (Ite, 2006; Idemudia, 2007). The CA approach to host community development placed emphasis on corporate philanthropy, which is the most basic level of CSR (Ite 2007). Partnership strategies were adopted by oil Multinational

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Companies (MNCs) as a means of contributing to community development, building a mutually beneficial relationship with local communities and reinventing themselves as a force for good in their host communities (Idemudia, 2007). Indeed, partnerships with community groups and NGOs are regarded as useful vehicles for building local community support, strengthening the company brand and reputation, and gaining access to local opinion leaders and decision makers in government and politics (Esteves & Barclays 2011).

Companies (MNCs) as a means of contributing to community development, building a mutually beneficial relationship with local communities and reinventing themselves as a force for good in their host communities (Idemudia, 2007). Indeed, partnerships with community groups and NGOs are regarded as useful vehicles for building local community support, strengthening the company brand and reputation, and gaining access to local opinion leaders and decision makers in government and politics (Esteves & Barclays 2011).

Moreover, Idemudia (2007) critically examines the different community development partnerships (CDPs) initiatives undertaken by Exxon Mobil and Total within their corporate-community relations strategy in the Niger Delta and points out that CDPs that are „bottom up‟ have more positive impact on host community development than those that are „top-down‟ in nature. However, Idemudia concludes that neither bottom-up or top-down CDPs‟ approach has had any real impact on how the core business activities of oil MNCs are undertaken or have they ameliorated the negative social and environmental impact of oil production on host communities. Consequently, the sources of environmental pollution which are strongly connected to core business activities of these multinational oil companies are not addressed (Frynas, 2012). Apparently, while partnership is capable of improving the positive impact of business affirmative duties on host community development in Niger Delta, the failure to integrate negative injunction duties (NIDs) into such partnership undermines its strength in contributing to host community environmental sustainability (Idemudia, 2007).

Moreover, Idemudia (2007) critically examines the different community development partnerships (CDPs) initiatives undertaken by Exxon Mobil and Total within their corporate-community relations strategy in the Niger Delta and points out that CDPs that are „bottom up‟ have more positive impact on host community development than those that are „top-down‟ in nature. However, Idemudia concludes that neither bottom-up or top-down CDPs‟ approach has had any real impact on how the core business activities of oil MNCs are undertaken or have they ameliorated the negative social and environmental impact of oil production on host communities. Consequently, the sources of environmental pollution which are strongly connected to core business activities of these multinational oil companies are not addressed (Frynas, 2012). Apparently, while partnership is capable of improving the positive impact of business affirmative duties on host community development in Niger Delta, the failure to integrate negative injunction duties (NIDs) into such partnership undermines its strength in contributing to host community environmental sustainability (Idemudia, 2007).

Affirmative duty demands that corporations should pursue moral and social good of the community in which they do business; while NID is firm‟s ethical obligation of avoiding to cause the society injury in the course of doing business (Simon, Powers, & Gunnermann, 1993). NID, which is a core concept of ethical class of CSR (Carroll, 1979; 1991), is considered in Lantos (2001) and (Jamali, 2007), as mandatory (accountability) perspectives of corporate responsibility. Does this imply that NID concept of ethical class of CSR can not be practised under voluntary approach? The answer depends on the strength of the legal system, institutional framework, and attitude of the people of a country in question (Young & Welford, 2002; Kobonbaev & Eicher, 2009). Indeed, since CA and CCP are embedded in the general voluntarism approach to CSR, they fail to address the fundamental environmental issues that impinge on the source of livelihood of the local communities (Aaron, 2012). The implication is that while, voluntarily, business is rendering philanthropic services to the host communities on one hand; on the other it grossly injures the same local environment through environmental degradation (Frynas, 2012). A continuous environmental degradation wields lasting negative impacts on the present and future generation than the temporary benefit of philanthropic services provided by business corporations. In the remaining paper, the development of accountability theory is discussed; followed by the relevance of accountability procedures to environmental sustainability; voluntary versus accountability approach to CSR; power behind firm‟s commitment to environmental sustainability; theory of reasoned action and environmental sustainability; and finally the conclusion.

Affirmative duty demands that corporations should pursue moral and social good of the community in which they do business; while NID is firm‟s ethical obligation of avoiding to cause the society injury in the course of doing business (Simon, Powers, & Gunnermann, 1993). NID, which is a core concept of ethical class of CSR (Carroll, 1979; 1991), is considered in Lantos (2001) and (Jamali, 2007), as mandatory (accountability) perspectives of corporate responsibility. Does this imply that NID concept of ethical class of CSR can not be practised under voluntary approach? The answer depends on the strength of the legal system, institutional framework, and attitude of the people of a country in question (Young & Welford, 2002; Kobonbaev & Eicher, 2009). Indeed, since CA and CCP are embedded in the general voluntarism approach to CSR, they fail to address the fundamental environmental issues that impinge on the source of livelihood of the local communities (Aaron, 2012). The implication is that while, voluntarily, business is rendering philanthropic services to the host communities on one hand; on the other it grossly injures the same local environment through environmental degradation (Frynas, 2012). A continuous environmental degradation wields lasting negative impacts on the present and future generation than the temporary benefit of philanthropic services provided by business corporations. In the remaining paper, the development of accountability theory is discussed; followed by the relevance of accountability procedures to environmental sustainability; voluntary versus accountability approach to CSR; power behind firm‟s commitment to environmental sustainability; theory of reasoned action and environmental sustainability; and finally the conclusion.

2. Development of Accountability Theory

2. Development of Accountability Theory

Accountability theory is rooted in public administration and modern representative political democracy (Schmitter, 2004; Finner, 2010; Friedrich, 2010). Rubenstein (20007) defines a standard accountability as a procedure where Actor A (the power holder) is accountable for its treatment of Actor B (the accountability holder) if A faces a significant and predictable sanction for failing to treat B according to recognised standards. In essence, the theory explains a relationship between two sets of persons or (more often) organisations in which the former agrees to keep the latter informed of the decisions made, to offer them explanations for such decisions, and to submit to any predetermined sanctions that they may impose (Schedler, 1999; Mulgan, 2000; Schmitter, 2004; Finner, 2010). In the context of a democratic state, such accountability in its core sense, explains the relationship between the citizens and holders of public office and, within the ranks of office holders, between elected politicians and bureaucrats. As Schmitter (2004) argues, this implies exchange of responsibilities and potential sanctions between rulers and the citizens. This is vertical accountability in that through means of fair and free elections, citizens can punish or reward incumbents by voting for or against them, or the candidate they endorse, in the next election (O‟Donniel, 1999). The exchange of these responsibilities and potential sanctions within the ranks of office holders, between elected politicians and

Accountability theory is rooted in public administration and modern representative political democracy (Schmitter, 2004; Finner, 2010; Friedrich, 2010). Rubenstein (20007) defines a standard accountability as a procedure where Actor A (the power holder) is accountable for its treatment of Actor B (the accountability holder) if A faces a significant and predictable sanction for failing to treat B according to recognised standards. In essence, the theory explains a relationship between two sets of persons or (more often) organisations in which the former agrees to keep the latter informed of the decisions made, to offer them explanations for such decisions, and to submit to any predetermined sanctions that they may impose (Schedler, 1999; Mulgan, 2000; Schmitter, 2004; Finner, 2010). In the context of a democratic state, such accountability in its core sense, explains the relationship between the citizens and holders of public office and, within the ranks of office holders, between elected politicians and bureaucrats. As Schmitter (2004) argues, this implies exchange of responsibilities and potential sanctions between rulers and the citizens. This is vertical accountability in that through means of fair and free elections, citizens can punish or reward incumbents by voting for or against them, or the candidate they endorse, in the next election (O‟Donniel, 1999). The exchange of these responsibilities and potential sanctions within the ranks of office holders, between elected politicians and

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bureaucrat is termed horizontal accountability and it helps democracy (ruling party) to protect itself from its own potential self-destruction (O‟Donniel, 1999; Schmitter, 1999).

bureaucrat is termed horizontal accountability and it helps democracy (ruling party) to protect itself from its own potential self-destruction (O‟Donniel, 1999; Schmitter, 1999).

In this sense, accountability theory is associated, originally, with the process of being summoned to account to some authority for one‟s actions (Mulgan, 2000). It is a narrative aspect of accounting, which calls for a story telling of one‟s action (Schedler, 1999). In most cases, such accountability has certain features: (a) it is external, in that the account is given to some other person or body outside some other person or body being held accountable; (b) it involves social interaction or exchange, in that one side, that calling for the account seeks answers and rectification while on the other side, that being held accountable, responds and accepts sanctions; and (c) it also implies rights of authority, in that those calling for account are asserting rights of superior authority over those who are accountable, including the right to demand answers and impose sanctions (Mulgan, 2000). Consequently, some actors have the right to hold other actors accountable to a set of established and agreed standards, to judge whether they have fulfilled their responsibilities based on these standards, and to impose sanction if they establish that these responsibilities have not been fulfilled (Grant & Keohane, 2005).

In this sense, accountability theory is associated, originally, with the process of being summoned to account to some authority for one‟s actions (Mulgan, 2000). It is a narrative aspect of accounting, which calls for a story telling of one‟s action (Schedler, 1999). In most cases, such accountability has certain features: (a) it is external, in that the account is given to some other person or body outside some other person or body being held accountable; (b) it involves social interaction or exchange, in that one side, that calling for the account seeks answers and rectification while on the other side, that being held accountable, responds and accepts sanctions; and (c) it also implies rights of authority, in that those calling for account are asserting rights of superior authority over those who are accountable, including the right to demand answers and impose sanctions (Mulgan, 2000). Consequently, some actors have the right to hold other actors accountable to a set of established and agreed standards, to judge whether they have fulfilled their responsibilities based on these standards, and to impose sanction if they establish that these responsibilities have not been fulfilled (Grant & Keohane, 2005).

From the foregoing, it is apparent that accountability does not only presupposes existence of a legitimate relationship between power-wielders and those holding them accountable, it also recognises the legitimacy of operative standards for accountability and the authority of the parties to the relationship – one to exercise particular powers and the other to hold them accountable (Grant & Keohane, 2005). This manner of relationship is not limited to political power holders and the governed only, it exist between corporations and legitimate stakeholder groups as corporate accountability or corporate social accountability, financial accountability, legal accountability, administrative/managerial accountability and ethical accountability (Schmitter, 2004; Raffer, 2004; Garvey & Nevel, 2005; Rubenstein, 20007). Therefore, outside the domain of political democracy, accountability theory is considered a veritable tool capable of explaining corporatestakeholders (local communities) relationship and it enables powerful corporations to be held accountable to the stakeholders in one way or the other, not necessarily in the same way electorates use in sanctioning the political power holders (Rubenstein 2007).

From the foregoing, it is apparent that accountability does not only presupposes existence of a legitimate relationship between power-wielders and those holding them accountable, it also recognises the legitimacy of operative standards for accountability and the authority of the parties to the relationship – one to exercise particular powers and the other to hold them accountable (Grant & Keohane, 2005). This manner of relationship is not limited to political power holders and the governed only, it exist between corporations and legitimate stakeholder groups as corporate accountability or corporate social accountability, financial accountability, legal accountability, administrative/managerial accountability and ethical accountability (Schmitter, 2004; Raffer, 2004; Garvey & Nevel, 2005; Rubenstein, 20007). Therefore, outside the domain of political democracy, accountability theory is considered a veritable tool capable of explaining corporatestakeholders (local communities) relationship and it enables powerful corporations to be held accountable to the stakeholders in one way or the other, not necessarily in the same way electorates use in sanctioning the political power holders (Rubenstein 2007).

3. Relevance of Accountability Procedures to Environmental sustainability

3. Relevance of Accountability Procedures to Environmental sustainability

Corporate accountability, in a managerial sense, refers to issues of information disclosure, auditing, and monitoring of business practices (Garvey & Nevel, 2005). Therefore corporate accountability implies subjecting business organisations to threat of sanctions; obliging them to exercise their operational authority transparently; and forcing them to justify their acts as related to stakeholders (Schedler, 1999). From this point of view, the core elements of accountability theory are standards, information, monitoring, sanction, and justification (Schedler, 1999; Rubenstein, 2007). The two basic components of accountability are answerability and enforceability (Schedler, 1999; Garvey & Nevel, 2005). Answerability concept of corporate accountability focus on the obligation of corporate managers to inform about and to explain what they are doing to the stakeholders (Schedler, 1999). This notion of answerability „indicates that being accountable to somebody implies the obligation to respond to nasty questions and, vice versa, that holding somebody accountable implies the opportunity to ask uncomfortable questions‟ (Schedler, 1999, p14).

Corporate accountability, in a managerial sense, refers to issues of information disclosure, auditing, and monitoring of business practices (Garvey & Nevel, 2005). Therefore corporate accountability implies subjecting business organisations to threat of sanctions; obliging them to exercise their operational authority transparently; and forcing them to justify their acts as related to stakeholders (Schedler, 1999). From this point of view, the core elements of accountability theory are standards, information, monitoring, sanction, and justification (Schedler, 1999; Rubenstein, 2007). The two basic components of accountability are answerability and enforceability (Schedler, 1999; Garvey & Nevel, 2005). Answerability concept of corporate accountability focus on the obligation of corporate managers to inform about and to explain what they are doing to the stakeholders (Schedler, 1999). This notion of answerability „indicates that being accountable to somebody implies the obligation to respond to nasty questions and, vice versa, that holding somebody accountable implies the opportunity to ask uncomfortable questions‟ (Schedler, 1999, p14).

In principle, Accountability agencies may ask accountable actors for two kinds of things. They may either ask them to inform about their decisions or they make ask them to explain their decisions. They may either ask for reliable facts (the information dimension of accountability) or for valid reasons (the argumentative dimension of accountability). Accountability thus involves the right to receive information and the corresponding obligation to release all necessary details (Schedler, 1999, p15).

In principle, Accountability agencies may ask accountable actors for two kinds of things. They may either ask them to inform about their decisions or they make ask them to explain their decisions. They may either ask for reliable facts (the information dimension of accountability) or for valid reasons (the argumentative dimension of accountability). Accountability thus involves the right to receive information and the corresponding obligation to release all necessary details (Schedler, 1999, p15).

Indeed, the questions may have some undesirable implications; however, it is the duty of the corporate managers to justify their actions. They have to justify their past and future acts with facts and necessary details. It is evident from this line of argument, that how MNCs‟ CSR practices contribute to sustainable development in developing countries would remain blurred unless questions that impinge on corporate management of

Indeed, the questions may have some undesirable implications; however, it is the duty of the corporate managers to justify their actions. They have to justify their past and future acts with facts and necessary details. It is evident from this line of argument, that how MNCs‟ CSR practices contribute to sustainable development in developing countries would remain blurred unless questions that impinge on corporate management of

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environmental, developmental, and private-social costs differentials are asked and adequate explanations received (Heal, 2005). Therefore, answerability perspective of accountability would seek corporate explanations on issues of standards, human rights, negative injunction duty (NID), stakeholders consent, environmental resilient information, and mitigation/compensating policies.

environmental, developmental, and private-social costs differentials are asked and adequate explanations received (Heal, 2005). Therefore, answerability perspective of accountability would seek corporate explanations on issues of standards, human rights, negative injunction duty (NID), stakeholders consent, environmental resilient information, and mitigation/compensating policies.

Answerability concept describes accountability essentially as a quest for information and justification of actions, a discursive activity and friendly dialogue between accounting and accountable parties. In addition to its informational dimension, that is asking what has been done (retrospective or ex post accountability) or asking what will be done (prospective or ex ante accountability) and its explanatory aspects, that is giving reasons and forming judgements, accountability also contains some elements of enforcement, which involves rewarding good and punishing bad behaviour (Schedler, 1999). The implication is that accounting actors do not just call accountable bodies into questions but also eventually punish improper behaviour. Accordingly, the persons held accountable would not only tell what they have done and why, but also bear the consequences of what they have done, including potential negative sanctions.

Answerability concept describes accountability essentially as a quest for information and justification of actions, a discursive activity and friendly dialogue between accounting and accountable parties. In addition to its informational dimension, that is asking what has been done (retrospective or ex post accountability) or asking what will be done (prospective or ex ante accountability) and its explanatory aspects, that is giving reasons and forming judgements, accountability also contains some elements of enforcement, which involves rewarding good and punishing bad behaviour (Schedler, 1999). The implication is that accounting actors do not just call accountable bodies into questions but also eventually punish improper behaviour. Accordingly, the persons held accountable would not only tell what they have done and why, but also bear the consequences of what they have done, including potential negative sanctions.

4. Voluntary versus Accountability Approach to CSR

4. Voluntary versus Accountability Approach to CSR

The need for implementation of sustainable development principles has been the major concern of developing countries and the world at large (Idemudia, 2008; Frynas, 2012). To some scholars, voluntary corporate responsibility is considered incapable of enabling the envisaged sustainable development in developing countries because of poor governance and business pursuit of corporate profits at the detriment of the local environments (Kobonbaev & Eicher, 2009; Unerman & O‟Dwyer, 2007). However, the argument in favour of voluntarism is that the “business case” approach and partnership with governments and nongovernmental organisations (NGOs) would enable firms to deliver sustainable development whereas regulation would hinder innovation, thus makes sustainable development unachievable (Holliday, Schmidheiny & Watts, 2002; Stormer, 2003; Grant, 2008). To them sustainable development seems to mean nothing more than economic development and job creation; even when such economic development lead to impoverishment of the immediate host community. Besides, there seems to be a misunderstanding of the concept of regulation in this context. For instance, regulating firm‟s environmental behaviour is different from market regulation where government controls or significantly influences market apparatus. Apparently, voluntary approach would not enable delivery of sustainable development given that where there is a conflict between environment or human right issues and corporate profitability, most firms often prefer profits even when such business activities violet environmental and human rights (Monbiot 2002).

The need for implementation of sustainable development principles has been the major concern of developing countries and the world at large (Idemudia, 2008; Frynas, 2012). To some scholars, voluntary corporate responsibility is considered incapable of enabling the envisaged sustainable development in developing countries because of poor governance and business pursuit of corporate profits at the detriment of the local environments (Kobonbaev & Eicher, 2009; Unerman & O‟Dwyer, 2007). However, the argument in favour of voluntarism is that the “business case” approach and partnership with governments and nongovernmental organisations (NGOs) would enable firms to deliver sustainable development whereas regulation would hinder innovation, thus makes sustainable development unachievable (Holliday, Schmidheiny & Watts, 2002; Stormer, 2003; Grant, 2008). To them sustainable development seems to mean nothing more than economic development and job creation; even when such economic development lead to impoverishment of the immediate host community. Besides, there seems to be a misunderstanding of the concept of regulation in this context. For instance, regulating firm‟s environmental behaviour is different from market regulation where government controls or significantly influences market apparatus. Apparently, voluntary approach would not enable delivery of sustainable development given that where there is a conflict between environment or human right issues and corporate profitability, most firms often prefer profits even when such business activities violet environmental and human rights (Monbiot 2002).

In contrast, those in support of corporate accountability (Hamann et al, 2003; Unerman & O‟Dwyer, 2007; Frynas 2012) see “big” business as the main constraint to sustainable development by being a key cause of environmental and social deterioration, and they demand strict regulation of corporate behaviour by national governments as well as an international corporate accountability convention. It is accountability that establishes the nexus of community‟s life and culture with corporate activities thus imposes the duty of care on corporations (Hamann et al, 2003; Uhlmann, 2012). Such duty of care cannot be left in the hands of corporations and their managers without adequate surveillance given their profit maximisation motive, which in most cases defies rationality (Neugebauer III, 2003; Unerman & O‟Dwyer, 2007). Hence, accountability approach provides a better understanding of how CSR policies of MNCs could benefit the local communities by enhancing the envisaged environmental sustainability.

In contrast, those in support of corporate accountability (Hamann et al, 2003; Unerman & O‟Dwyer, 2007; Frynas 2012) see “big” business as the main constraint to sustainable development by being a key cause of environmental and social deterioration, and they demand strict regulation of corporate behaviour by national governments as well as an international corporate accountability convention. It is accountability that establishes the nexus of community‟s life and culture with corporate activities thus imposes the duty of care on corporations (Hamann et al, 2003; Uhlmann, 2012). Such duty of care cannot be left in the hands of corporations and their managers without adequate surveillance given their profit maximisation motive, which in most cases defies rationality (Neugebauer III, 2003; Unerman & O‟Dwyer, 2007). Hence, accountability approach provides a better understanding of how CSR policies of MNCs could benefit the local communities by enhancing the envisaged environmental sustainability.

We therefore support the argue that accountability approach will enable identification of the important role of local livelihoods, the right to prior informed consent to developments, access to information, access to justice; and it will also identify the limitations of a purely voluntary approach to CSR in addressing core environmental and social issues (Hamann et al, 2003; MacKay, 2004). In essence, sustainable development would be feasible under accountability regime where at least, corporate environmental behaviours are monitored and controlled at local, national, and international level. Therefore the study will fill the gap in literature by providing conceptual evidence that accountability approach to CSR practice can enable corporations to adopt

We therefore support the argue that accountability approach will enable identification of the important role of local livelihoods, the right to prior informed consent to developments, access to information, access to justice; and it will also identify the limitations of a purely voluntary approach to CSR in addressing core environmental and social issues (Hamann et al, 2003; MacKay, 2004). In essence, sustainable development would be feasible under accountability regime where at least, corporate environmental behaviours are monitored and controlled at local, national, and international level. Therefore the study will fill the gap in literature by providing conceptual evidence that accountability approach to CSR practice can enable corporations to adopt

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sustainable development principles and thus contribute significantly to environmental sustainability, especially in developing countries.

5. Power behind Firms’ Commitment to Environmental Sustainability Indeed, voluntarism has been at the centre of CSR debate over the years (Stormer, 2003; Wettstein & Waddock, 2005; Grant, 2008). It indicates the scope of discretionary decision-making by the firm and the absence of externally imposed compliance requirements (Burke & Logsdon, 1996). Its non-mandatory perspective to corporate environmental sustainability makes it popular among firms, some governments and global development actors (European Commission 2002 cited in Silberborn & Warren, 2007). However, commitment to its implementation and contribution to sustainable development differs greatly in developed and developing countries. One of the main reasons is different in legal and institutional framework between developed and developing/emerging economies (Kobonbaev & Eicher, 2009). In developed economies strong legal system prepares the grounds for corporations to adopt environmental sustainability principles using voluntary CSR approach (Young & Welford, 2002).

Figure 1: CSR perspectives and environmental sustainability model

sustainable development principles and thus contribute significantly to environmental sustainability, especially in developing countries.

5. Power behind Firms’ Commitment to Environmental Sustainability Indeed, voluntarism has been at the centre of CSR debate over the years (Stormer, 2003; Wettstein & Waddock, 2005; Grant, 2008). It indicates the scope of discretionary decision-making by the firm and the absence of externally imposed compliance requirements (Burke & Logsdon, 1996). Its non-mandatory perspective to corporate environmental sustainability makes it popular among firms, some governments and global development actors (European Commission 2002 cited in Silberborn & Warren, 2007). However, commitment to its implementation and contribution to sustainable development differs greatly in developed and developing countries. One of the main reasons is different in legal and institutional framework between developed and developing/emerging economies (Kobonbaev & Eicher, 2009). In developed economies strong legal system prepares the grounds for corporations to adopt environmental sustainability principles using voluntary CSR approach (Young & Welford, 2002).

Figure 1: CSR perspectives and environmental sustainability model

Empowered by strong legal system and institutional framework

Empowered by strong legal system and institutional framework

Voluntary perspectives

Voluntary perspectives

Accountability (Regulated) perspectives

Environmental Sustainability

Environmental Sustainability

Corporate social responsibility

Corporate social responsibility

Accountability (Regulated) perspectives

Empowered by accountability mechanisms acceptable by all stakeholders

Empowered by accountability mechanisms acceptable by all stakeholders

Figure 1 presents a model of CSR perspectives and the power behind each perspective‟s success in enabling environmental sustainability. As the figure portrays, CSR has two main practical approaches – the voluntary and accountability (mandatory) approach. The strength of voluntary CSR approach in enabling environmental sustainability depends on strong legal and institutional framework. The accountability perspective of CSR on its part relies on the in-built strength of accountability mechanisms, which in some cases

Figure 1 presents a model of CSR perspectives and the power behind each perspective‟s success in enabling environmental sustainability. As the figure portrays, CSR has two main practical approaches – the voluntary and accountability (mandatory) approach. The strength of voluntary CSR approach in enabling environmental sustainability depends on strong legal and institutional framework. The accountability perspective of CSR on its part relies on the in-built strength of accountability mechanisms, which in some cases

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are acceptable to all stakeholders (e.g. host communities and business corporations). The implication is that accountability provides a platform for negotiating acceptable environmental sustainability standards. This goes along with enforceability and reparation conditions in case of failure to comply with the agreed standards. This approach is more viable than voluntary in drawing the attention of multinational corporations to environmental issues, especially, in developing countries.

are acceptable to all stakeholders (e.g. host communities and business corporations). The implication is that accountability provides a platform for negotiating acceptable environmental sustainability standards. This goes along with enforceability and reparation conditions in case of failure to comply with the agreed standards. This approach is more viable than voluntary in drawing the attention of multinational corporations to environmental issues, especially, in developing countries.

Even the business case and enlightened self-interest, which Fleming & Jones (2013) consider as winwin approach, practised under voluntary CSR perspective needs partnership with government if sustainable development is to be achieved (Holliday, Schmidheiny & Watts, 2002; Stormer, 2003; Grant, 2008). Of course, the capability of government to partner with powerful MNCs and influence their environmental behaviour still depends on good governance and the strength of its legal system and institutional framework (Young & Welford, 2002), which are uncommon in some extractive industries countries generally characterised by weak institutions, and poor governance (Kobonbaev & Eicher, 2009). The weakness in governance often give rise to corruption and less accountability to the electorates; and in most cases the governments turn authoritarians (Robinson, Torvik, & Verdier, 2002). As it often argued, many firms from developed countries conduct their business on the principle of „when in Rome, do as the Romans do‟ (George, 1999; p234). Hence, they take advantage of pre-existence of weakness in governance and significantly degrade the local environment with their production externalities. Such economic externality problem ranges from loss of the natural environment and deleterious health consequences to the destruction of the local communities‟ economic bases, property rights violations and increased corruption (Kobobaev & Eicher, 2009). This makes accountability perspective of CSR necessary in the absence of good governance. It is a mechanism embedded with factors that would influence corporate environmental behaviour.

Even the business case and enlightened self-interest, which Fleming & Jones (2013) consider as winwin approach, practised under voluntary CSR perspective needs partnership with government if sustainable development is to be achieved (Holliday, Schmidheiny & Watts, 2002; Stormer, 2003; Grant, 2008). Of course, the capability of government to partner with powerful MNCs and influence their environmental behaviour still depends on good governance and the strength of its legal system and institutional framework (Young & Welford, 2002), which are uncommon in some extractive industries countries generally characterised by weak institutions, and poor governance (Kobonbaev & Eicher, 2009). The weakness in governance often give rise to corruption and less accountability to the electorates; and in most cases the governments turn authoritarians (Robinson, Torvik, & Verdier, 2002). As it often argued, many firms from developed countries conduct their business on the principle of „when in Rome, do as the Romans do‟ (George, 1999; p234). Hence, they take advantage of pre-existence of weakness in governance and significantly degrade the local environment with their production externalities. Such economic externality problem ranges from loss of the natural environment and deleterious health consequences to the destruction of the local communities‟ economic bases, property rights violations and increased corruption (Kobobaev & Eicher, 2009). This makes accountability perspective of CSR necessary in the absence of good governance. It is a mechanism embedded with factors that would influence corporate environmental behaviour.

Figure 2: The Desired Environmental Sustainability Matrix

Figure 2: The Desired Environmental Sustainability Matrix

Desired Environmental Sustainability

Quadrant A

Desired Environmental Sustainability

Quadrant A

Quadrant B

(Strong Legal and Institutional Framework)

(Weak Legal and Institutional Framework)

Inevitable Environmental Degradation

Quadrant D

(Accountability Approach to CSR)

Quadrant C

(Voluntary Approach to CSR)

Significant environmental Sustaianability

(Voluntary Approach to CSR)

Significant environmental Sustainability

Quadrant C

(Strong Legal and Institutional Framework)

Significant environmental Sustaianability

Significant environmental Sustainability

Quadrant D

(Accountability Approach to CSR)

Quadrant B

(Weak Legal and Institutional Framework)

Inevitable Environmental Degradation

The same argument is illustrated further using Figure 2. This figure presents a matrix of strong legal and institutional framework, quadrant A; accountability approach to CSR, quadrant B; weak legal system and institutional framework, quadrant C; and voluntary approach to CSR, quadrant D. The researchers‟ argument is that a combination of a strong legal system and institutional framework in quadrant „A‟ with accountability approach to CSR in quadrant „B‟ can yield the desired environmental sustainability. This is a clear scenario of sustainable development. Where there is a week legal system and institutional framework as shown in quadrant „C‟ corporations should adopt accountability approach to CSR in quadrant „B‟ if a significant environmental

The same argument is illustrated further using Figure 2. This figure presents a matrix of strong legal and institutional framework, quadrant A; accountability approach to CSR, quadrant B; weak legal system and institutional framework, quadrant C; and voluntary approach to CSR, quadrant D. The researchers‟ argument is that a combination of a strong legal system and institutional framework in quadrant „A‟ with accountability approach to CSR in quadrant „B‟ can yield the desired environmental sustainability. This is a clear scenario of sustainable development. Where there is a week legal system and institutional framework as shown in quadrant „C‟ corporations should adopt accountability approach to CSR in quadrant „B‟ if a significant environmental

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sustainability is expected. That is, the researcher proposes that accountability approach to CSR will enable a significant environmental sustainability in developing countries where legal system and institutional frameworks are weak (Ahunwan, 2002; Young & Welford, 2002; Ehikioya, 2009; Kobobaev and Eicher, 2009). As discussed earlier, accountability procedures have the capability of drawing the attention of MNCs to environmental issues especially where such procedures are jointly agreed upon by all stakeholders.

sustainability is expected. That is, the researcher proposes that accountability approach to CSR will enable a significant environmental sustainability in developing countries where legal system and institutional frameworks are weak (Ahunwan, 2002; Young & Welford, 2002; Ehikioya, 2009; Kobobaev and Eicher, 2009). As discussed earlier, accountability procedures have the capability of drawing the attention of MNCs to environmental issues especially where such procedures are jointly agreed upon by all stakeholders.

Another combination that can yield a significant environmental sustainability is voluntary approach to CSR in quadrant „D‟ with strong legal and institutional framework in quadrant „A‟. This is the position of those who favour voluntary approach to CSR. The partnership with government implies that government provides enabling grounds such as sound environmental regulations, transparent regulatory systems, and law enforcement agencies that MNCs cannot buy over with undue gifts (bribe). The combination of strong legal and institutional framework and voluntary approach to CSR is commonly seen in many developed countries. The last possible combination, which makes environmental degradation inevitable, is weak legal and institutional framework in quadrant „C‟ with voluntary approach to CSR in „D‟. This is a common situation in many developing countries where MNCs adopt voluntary CSR policies. The implication is that the local environments are subject to undue environmental degradation.

Another combination that can yield a significant environmental sustainability is voluntary approach to CSR in quadrant „D‟ with strong legal and institutional framework in quadrant „A‟. This is the position of those who favour voluntary approach to CSR. The partnership with government implies that government provides enabling grounds such as sound environmental regulations, transparent regulatory systems, and law enforcement agencies that MNCs cannot buy over with undue gifts (bribe). The combination of strong legal and institutional framework and voluntary approach to CSR is commonly seen in many developed countries. The last possible combination, which makes environmental degradation inevitable, is weak legal and institutional framework in quadrant „C‟ with voluntary approach to CSR in „D‟. This is a common situation in many developing countries where MNCs adopt voluntary CSR policies. The implication is that the local environments are subject to undue environmental degradation.

6. Theory of reasoned action (TRA) and environmental sustainability

6. Theory of reasoned action (TRA) and environmental sustainability

In adopting accountability approach to explain how local community could benefits from CSR programmes, this study follows Garvey & Newell (2005). Their study investigates how, why, and when community-based strategies could be effective in promoting corporate accountability to the poor. According to Garvey & Newell (2005) accountability – in terms of answerability and enforceability – is influenced by certain interrelated factors originating from the state, the corporation, and community itself. For example, where there is a lack of state support for community rights or where the rights of corporations are protected at the expense of their responsibility, Garvey & Newell (2005) argue that the local community may lack state support in holding companies accountable for any illegal pollution or failure to keep to the agreed standards. The environmental issues and CSR practices in such cases are completely in the hands of corporate mangers whose main responsibility as Friedman (2004) argues is to make as much profits as possible with no serious thought about externalities. Their study focused on related factors that impede corporate accountability to local community thus assessing the effectiveness of community-based strategic approach. In the present study, we argue that a properly articulated accountability procedure can achieve a significant environmental sustainability even where there is no good governance, independent regulatory institutions, strong legal systems or support of government.

In adopting accountability approach to explain how local community could benefits from CSR programmes, this study follows Garvey & Newell (2005). Their study investigates how, why, and when community-based strategies could be effective in promoting corporate accountability to the poor. According to Garvey & Newell (2005) accountability – in terms of answerability and enforceability – is influenced by certain interrelated factors originating from the state, the corporation, and community itself. For example, where there is a lack of state support for community rights or where the rights of corporations are protected at the expense of their responsibility, Garvey & Newell (2005) argue that the local community may lack state support in holding companies accountable for any illegal pollution or failure to keep to the agreed standards. The environmental issues and CSR practices in such cases are completely in the hands of corporate mangers whose main responsibility as Friedman (2004) argues is to make as much profits as possible with no serious thought about externalities. Their study focused on related factors that impede corporate accountability to local community thus assessing the effectiveness of community-based strategic approach. In the present study, we argue that a properly articulated accountability procedure can achieve a significant environmental sustainability even where there is no good governance, independent regulatory institutions, strong legal systems or support of government.

Based on theory of reasoned action (TRA), we argue that accountability mechanisms can influence MNCs‟ intention to improve their environmental behaviour. The theory of reasoned action (TRA), which originated from the expectancy value theories in the field of social psychology, has been used extensively in intentional behaviour research (Shepherd & Raats, 1996; Thompson & Thompson, 1996; Bok, 1996; Kalafatis et al, 1999). In addition, business and management research scholars have made significant advances by applying the psychological knowledge, based on this theory, to understanding and predicting intentional behaviour (Hillenbrand, Money and Ghobadian, 2013). In marketing research for example, Komiak and Benbasat (2006) and Walsh et al (2006) used the principle of TRA to predict the future customer buying pattern. Aside from marketing, TRA has been used in organisational behaviour research. For example, Van Breukelen, Der Vlist & Steensma (2004) used the theory to predict staff retention and commitment behaviour.

Based on theory of reasoned action (TRA), we argue that accountability mechanisms can influence MNCs‟ intention to improve their environmental behaviour. The theory of reasoned action (TRA), which originated from the expectancy value theories in the field of social psychology, has been used extensively in intentional behaviour research (Shepherd & Raats, 1996; Thompson & Thompson, 1996; Bok, 1996; Kalafatis et al, 1999). In addition, business and management research scholars have made significant advances by applying the psychological knowledge, based on this theory, to understanding and predicting intentional behaviour (Hillenbrand, Money and Ghobadian, 2013). In marketing research for example, Komiak and Benbasat (2006) and Walsh et al (2006) used the principle of TRA to predict the future customer buying pattern. Aside from marketing, TRA has been used in organisational behaviour research. For example, Van Breukelen, Der Vlist & Steensma (2004) used the theory to predict staff retention and commitment behaviour.

TRA and the other behaviour related theory, the theory of planned behaviour (TPB) are all credited to Icek Ajzen (Ajzen, 1991; Kalafatis et al, 1999). The underlying assumption of the TRA is that human social behaviour follows reasonably and often spontaneously from the information or beliefs people possess about the behaviour under consideration (Fishbein & Ajzen, 2010). Such beliefs, as they argue, guide the intention to perform or not to perform certain behaviour. Three kinds of beliefs discussed in Fishbein & Ajzen (2010) are:

TRA and the other behaviour related theory, the theory of planned behaviour (TPB) are all credited to Icek Ajzen (Ajzen, 1991; Kalafatis et al, 1999). The underlying assumption of the TRA is that human social behaviour follows reasonably and often spontaneously from the information or beliefs people possess about the behaviour under consideration (Fishbein & Ajzen, 2010). Such beliefs, as they argue, guide the intention to perform or not to perform certain behaviour. Three kinds of beliefs discussed in Fishbein & Ajzen (2010) are:

First, people hold beliefs about the positive or negative consequence they might experience if they perform the behaviour. This outcome expectancies or behavioural beliefs are assumed to determine people‟s

First, people hold beliefs about the positive or negative consequence they might experience if they perform the behaviour. This outcome expectancies or behavioural beliefs are assumed to determine people‟s

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attitude towards personally performing the behaviour – that is, their positive or negative evaluation of their performance of the behaviour in question. In general, to the extent that their performance of the behaviour is perceived to result in more positive than negative outcomes, the attitude towards behaviour will be favourable.

attitude towards personally performing the behaviour – that is, their positive or negative evaluation of their performance of the behaviour in question. In general, to the extent that their performance of the behaviour is perceived to result in more positive than negative outcomes, the attitude towards behaviour will be favourable.

Second, people form beliefs that important individuals or groups in their lives will approve or disapprove of their performing the behaviour as well as beliefs that these referents themselves perform or don‟t perform the behaviour in question. In their totality, these injunctive and descriptive normative beliefs produce a perceived norm, that is, perceived social pressure to engage or not to engage in the behaviour. If more important than others are believed to approve than disapprove, and if the majority of important others perform the behaviour, people are likely to perceive social pressure to engage in the behaviour.

Second, people form beliefs that important individuals or groups in their lives will approve or disapprove of their performing the behaviour as well as beliefs that these referents themselves perform or don‟t perform the behaviour in question. In their totality, these injunctive and descriptive normative beliefs produce a perceived norm, that is, perceived social pressure to engage or not to engage in the behaviour. If more important than others are believed to approve than disapprove, and if the majority of important others perform the behaviour, people are likely to perceive social pressure to engage in the behaviour.

Finally, people also form beliefs about personal and environmental factors that can help or impede their attempts to carry out the behaviour. In their aggregate, these control beliefs result in a sense of high or low selfefficacy … or perceived behavioural control with regards to the behaviour. If control beliefs identify more facilitating than inhibiting factors, perceived behavioural control should be high (pp20-21).

Finally, people also form beliefs about personal and environmental factors that can help or impede their attempts to carry out the behaviour. In their aggregate, these control beliefs result in a sense of high or low selfefficacy … or perceived behavioural control with regards to the behaviour. If control beliefs identify more facilitating than inhibiting factors, perceived behavioural control should be high (pp20-21).

The intention to perform a given behaviour is based on a combination of attitudinal, normative and control considerations of the decision maker. The theories suggests that intention is the best single predictor of behaviour (Fishbein & Ajzen, 2010) but it is also necessary to take actual external controlling factors, that is environmental factors, into consideration. Embedded in answerability and enforceability concepts of accountability are actual external controlling factors that are capable of influencing corporate environmental behaviour directly or indirectly.

The intention to perform a given behaviour is based on a combination of attitudinal, normative and control considerations of the decision maker. The theories suggests that intention is the best single predictor of behaviour (Fishbein & Ajzen, 2010) but it is also necessary to take actual external controlling factors, that is environmental factors, into consideration. Embedded in answerability and enforceability concepts of accountability are actual external controlling factors that are capable of influencing corporate environmental behaviour directly or indirectly.

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Figure 3: Schematic presentation of the relevance of reasoned action theory to environmental sustainability

Environmental Behavioural beliefs

Attitude towards the environmental behaviour

Environmental Behavioural beliefs

Background factors

Individual organisation Repudiation Home office International relations General environmental attitude Perceived risk of negligence Past environmental behaviour Social People‟s Culture Religion Education Income Information Knowledge of environmental risk Media (awareness) Environmental regulatory agency intervention

Figure 3: Schematic presentation of the relevance of reasoned action theory to environmental sustainability Attitude towards the environmental behaviour

Background factors Expected consequences of unacceptable environmental behaviour

Self-evaluation of consequences of environmental behaviour

Normative beliefs about environment

Perceived environmental norm

Beliefs about relevant referents‟ expectations on environmental issues

Environmental sustainability

Intention to perform the environmental behaviour

Desired environmental behaviour

Perceived social pressure for acceptable environmental behaviour Accountability: Actual external controling factors

Control beliefs about environment

Motivation to comply with environmental expectations of relevant referents

Perceived environmental behavioural control

Perception of being considered accountable and transparent on environmental issues

Pressure from community and other powerful stakeholders Demand for environmental damages mitigating CSR initiatives Demand for outright compensation for undue environmental damages Influence of NGOs, media and international communities

Source: Moderated version of Fishbein and Ajzen (2010) schematic presentation of the reasoned action model

Individual organisation Repudiation Home office International relations General environmental attitude Perceived risk of negligence Past environmental behaviour Social People‟s Culture Religion Education Income Information Knowledge of environmental risk Media (awareness) Environmental regulatory agency intervention

Expected consequences of unacceptable environmental behaviour

Self-evaluation of consequences of environmental behaviour

Normative beliefs about environment

Perceived environmental norm

Beliefs about relevant referents‟ expectations on environmental issues

Environmental sustainability

Intention to perform the environmental behaviour

Desired environmental behaviour

Perceived social pressure for acceptable environmental behaviour Accountability: Actual external controling factors

Control beliefs about environment

Motivation to comply with environmental expectations of relevant referents

Perceived environmental behavioural control

Perception of being considered accountable and transparent on environmental issues

Pressure from community and other powerful stakeholders Demand for environmental damages mitigating CSR initiatives Demand for outright compensation for undue environmental damages Influence of NGOs, media and international communities

Source: Moderated version of Fishbein and Ajzen (2010) schematic presentation of the reasoned action model

Figure 3 illustrates the relevance of reasoned action theory (RTA) to how accountability perspective of CSR can enable achievement significant of environmental sustainability even if the legal system is relatively weak. It portrays how the theory can be useful in explaining why intention of managers of MNCs to perform the desired environmental behaviour can be directly and indirectly influenced by actual external factors such as accountability mechanisms. From the Figure, the broken arrows that connect background factors to environmental behavioural beliefs, normative and control beliefs about environment indicate that these factors, though important, may not directly influence these variables. The full arrows however, indicate factors that directly influence various variables. For example, self-evaluation of the consequences of undesirable environmental behaviour will influence the attitude of corporations towards environmental issues. The broken arrow that extends from the accountability box to background factors shows that existence of strong civil society, voice of local communities, NGOs and all other accountability apparatus will not only facilitate performance of intention but also influence, indirectly, the intention to perform the environmental behaviour.

Figure 3 illustrates the relevance of reasoned action theory (RTA) to how accountability perspective of CSR can enable achievement significant of environmental sustainability even if the legal system is relatively weak. It portrays how the theory can be useful in explaining why intention of managers of MNCs to perform the desired environmental behaviour can be directly and indirectly influenced by actual external factors such as accountability mechanisms. From the Figure, the broken arrows that connect background factors to environmental behavioural beliefs, normative and control beliefs about environment indicate that these factors, though important, may not directly influence these variables. The full arrows however, indicate factors that directly influence various variables. For example, self-evaluation of the consequences of undesirable environmental behaviour will influence the attitude of corporations towards environmental issues. The broken arrow that extends from the accountability box to background factors shows that existence of strong civil society, voice of local communities, NGOs and all other accountability apparatus will not only facilitate performance of intention but also influence, indirectly, the intention to perform the environmental behaviour.

Indeed, the theory is deeply concerned with understanding the factors that influence the behaviour of an individual or group of people (Hillenbrand, Money & Ghobadian, 2013). One of these factors referred to as control beliefs is external to the person or persons that perform the behaviour and is capable of facilitating or inhibiting performance of the perceived behaviour (Fishbein & Ajzen, 2010). The accountability approach to CSR is proposed as one of these facilitating factors capable of influencing the MNCs‟ performance of desirable environmental behaviour not only in developing countries but in developed as well. The assumption is that

Indeed, the theory is deeply concerned with understanding the factors that influence the behaviour of an individual or group of people (Hillenbrand, Money & Ghobadian, 2013). One of these factors referred to as control beliefs is external to the person or persons that perform the behaviour and is capable of facilitating or inhibiting performance of the perceived behaviour (Fishbein & Ajzen, 2010). The accountability approach to CSR is proposed as one of these facilitating factors capable of influencing the MNCs‟ performance of desirable environmental behaviour not only in developing countries but in developed as well. The assumption is that

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where accountability mechanisms successfully facilitate the performance of the desired environmental behaviour this will invariably result in environmental sustainability.

where accountability mechanisms successfully facilitate the performance of the desired environmental behaviour this will invariably result in environmental sustainability.

Again, accountability is buttressed by information exchange (Gray, Owen & Adams, 1996). As the communities gain knowledge of risks associated with environmental degradation and start raising environmental issues, MNCs would develop certain perceptions about possible consequences of failing to improve on their environmental behaviour. Besides, the pitch of the voice of local communities will filter into corporate managers‟ perceptions of possible risk of environmental negligence. They will also be concerned about the worldviews of their environmental behaviour and the likely position of influential stakeholders and other relevant referents on their environmental behaviour. Therefore it is apparent that through accountability mechanisms local communities are capable of exerting pressure that can directly influence MNCs‟ intention to perform environmental behaviour and directly fast-tract performance of such intentions. Performing of environmental behaviour, of course, implies adopting of environmental sustainability approaches.

Again, accountability is buttressed by information exchange (Gray, Owen & Adams, 1996). As the communities gain knowledge of risks associated with environmental degradation and start raising environmental issues, MNCs would develop certain perceptions about possible consequences of failing to improve on their environmental behaviour. Besides, the pitch of the voice of local communities will filter into corporate managers‟ perceptions of possible risk of environmental negligence. They will also be concerned about the worldviews of their environmental behaviour and the likely position of influential stakeholders and other relevant referents on their environmental behaviour. Therefore it is apparent that through accountability mechanisms local communities are capable of exerting pressure that can directly influence MNCs‟ intention to perform environmental behaviour and directly fast-tract performance of such intentions. Performing of environmental behaviour, of course, implies adopting of environmental sustainability approaches.

7. Conclusion

7. Conclusion

Voluntarism has been at the centre of CSR debate over the years (Stormer, 2003; Wettstein & Waddock, 2005; Grant, 2008). However, this study demonstrates that the approach is not effective in developing countries characterised by poor governance and weak legal and institutional framework. The positive impact of voluntary perspective of CSR in developed countries is attributed to the strength of the legal system and good governance. As the study discloses, the combination of strong legal system with voluntary CSR enables a significant environmental sustainability. This is a common scenario in developed countries legal system makes no room for corporations to discharge industrial waste on the environment (Young & Welford, 2002). The combination of weak legal system with voluntary CSR makes environmental degradation inevitable. This is the common scenario in developing countries. The study discusses two possible sources of power that could give business corporations a boost on environmental sustainability issue. These are strong legal system and accountability perspective of CSR.

Voluntarism has been at the centre of CSR debate over the years (Stormer, 2003; Wettstein & Waddock, 2005; Grant, 2008). However, this study demonstrates that the approach is not effective in developing countries characterised by poor governance and weak legal and institutional framework. The positive impact of voluntary perspective of CSR in developed countries is attributed to the strength of the legal system and good governance. As the study discloses, the combination of strong legal system with voluntary CSR enables a significant environmental sustainability. This is a common scenario in developed countries legal system makes no room for corporations to discharge industrial waste on the environment (Young & Welford, 2002). The combination of weak legal system with voluntary CSR makes environmental degradation inevitable. This is the common scenario in developing countries. The study discusses two possible sources of power that could give business corporations a boost on environmental sustainability issue. These are strong legal system and accountability perspective of CSR.

This conceptual discourse contributes to literature by pointing out that accountability procedures can influence MNCs‟ intention to perform environmental behaviour. Accountability procedures as background factors touch the perceptions of corporate managers and make them think of possible consequences of environmental degradation even in the absence of strong legal system. As Boele et al (2001) argue, Shell, for instance, started considering environmental issues after a serious protest in Ogoni that led to the execution of nine leaders of MOSOP in 1995. We argue that proper application of accountability mechanisms will facilitate good environmental behaviour among MNCs doing business in developing countries. Moreover, we recommend a further study, using empirical approach, to establish whether accountability concepts can significantly influence corporate environmental behaviour in developing countries characterised by poor governance. Such evidence would substantiate accountability perspective of CSR as a better CSR approach in developing countries when compared with popular voluntary approach.

This conceptual discourse contributes to literature by pointing out that accountability procedures can influence MNCs‟ intention to perform environmental behaviour. Accountability procedures as background factors touch the perceptions of corporate managers and make them think of possible consequences of environmental degradation even in the absence of strong legal system. As Boele et al (2001) argue, Shell, for instance, started considering environmental issues after a serious protest in Ogoni that led to the execution of nine leaders of MOSOP in 1995. We argue that proper application of accountability mechanisms will facilitate good environmental behaviour among MNCs doing business in developing countries. Moreover, we recommend a further study, using empirical approach, to establish whether accountability concepts can significantly influence corporate environmental behaviour in developing countries characterised by poor governance. Such evidence would substantiate accountability perspective of CSR as a better CSR approach in developing countries when compared with popular voluntary approach.

8. References

8. References

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Sustainability Reporting Standards and Its Future Prospects Anand Rai1, Sandhya Rai 2 Associate Professor, Finance, School of Management, JRE Group of Institutions, Greater Noida (India) 2 Assistant Professor, IILM GSM, Greater Noida (India) 1 [email protected],[email protected]

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Sustainability Reporting Standards and Its Future Prospects Anand Rai1, Sandhya Rai 2 Associate Professor, Finance, School of Management, JRE Group of Institutions, Greater Noida (India) 2 Assistant Professor, IILM GSM, Greater Noida (India) 1 [email protected],[email protected]

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Abstract

Abstract

Climate change, social degradation, economic crisis and complexities in business have raised serious concern over organisations' sustainability. Sustainability reporting is a broad term considered synonymous with others used to describe reporting on economic, environmental, and social impacts (e.g., triple bottom line, corporate responsibility reporting, etc.). The purpose of a sustainability reporting is the practice of measuring, disclosing, and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development. Currently in India, only few companies have adopted such reporting practices as compared to other developed countries like Japan, USA etc. With the growing concern on social and environment issues worldwide, this decade is going to see paradigm shift in reporting standards on sustainability. `This article explores various sustainability reporting standards and also unveils recent reporting trends of the Indian organisations on sustainability performances and future prospects.

Climate change, social degradation, economic crisis and complexities in business have raised serious concern over organisations' sustainability. Sustainability reporting is a broad term considered synonymous with others used to describe reporting on economic, environmental, and social impacts (e.g., triple bottom line, corporate responsibility reporting, etc.). The purpose of a sustainability reporting is the practice of measuring, disclosing, and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development. Currently in India, only few companies have adopted such reporting practices as compared to other developed countries like Japan, USA etc. With the growing concern on social and environment issues worldwide, this decade is going to see paradigm shift in reporting standards on sustainability. `This article explores various sustainability reporting standards and also unveils recent reporting trends of the Indian organisations on sustainability performances and future prospects.

Keywords: sustainability, triple bottom line, GRI, disclosure frameworks, corporate social responsibility

Keywords: sustainability, triple bottom line, GRI, disclosure frameworks, corporate social responsibility

1. Introduction An organisation needs to be financially self sufficient to be able to become sustainable in the long term. Once this primary need for financial capital has been met, the organisation then needs to be socially responsible. This is achieved by ensuring that its governance and workplace practices and its environmental and social impact are self monitoring and conform to society’s expectations and ethical values. Only then can a company achieve sustainability in the long term.

1. Introduction An organisation needs to be financially self sufficient to be able to become sustainable in the long term. Once this primary need for financial capital has been met, the organisation then needs to be socially responsible. This is achieved by ensuring that its governance and workplace practices and its environmental and social impact are self monitoring and conform to society’s expectations and ethical values. Only then can a company achieve sustainability in the long term.

Figure 1: Relationship between sustainability and financial self-sufficiency

Figure 1: Relationship between sustainability and financial self-sufficiency

Sustainability

Sustainability

Social impact

Social impact

Environmental impact

Environmental impact

Workplace practices

Workplace practices

Corporate governance

Corporate governance

Financial self-sufficiency

2.

Evolution of the concept of Sustainability

Financial self-sufficiency

2.

Evolution of the concept of Sustainability

In 1919, a landmark judgment was given by the Supreme Court of the State of Michigan, USA in the case of Dodge v. Ford Motor Company. The court said that the primary objective of a business is to make profits and that any business is responsible to its shareholders and not to the community as a whole or to its

In 1919, a landmark judgment was given by the Supreme Court of the State of Michigan, USA in the case of Dodge v. Ford Motor Company. The court said that the primary objective of a business is to make profits and that any business is responsible to its shareholders and not to the community as a whole or to its

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employees. To date this judgment is treated as a fundamental reference point in relation to the responsibilities of a business and the inherent principle in it has not been overruled by courts.

employees. To date this judgment is treated as a fundamental reference point in relation to the responsibilities of a business and the inherent principle in it has not been overruled by courts.

Nobel Laureate Milton Friedman (1970) wrote that the responsibility of a business is to increase profits and that engaging in activities which discharge the corporate social responsibilities (CSRs) of a business is an instance of 'agency conflict' or a conflict between managers and shareholders. Friedman explains further that CSR activities are undertaken by managers to their personal needs and at the expense of the shareholders. Also, he even went on to say that in a free enterprise society, CSR reflects an inappropriate use of corporate funds.

Nobel Laureate Milton Friedman (1970) wrote that the responsibility of a business is to increase profits and that engaging in activities which discharge the corporate social responsibilities (CSRs) of a business is an instance of 'agency conflict' or a conflict between managers and shareholders. Friedman explains further that CSR activities are undertaken by managers to their personal needs and at the expense of the shareholders. Also, he even went on to say that in a free enterprise society, CSR reflects an inappropriate use of corporate funds.

Since the early 1980s, social scientists have moved away from the theory of agency as propagated by Friedman and gravitated towards a new model developed by Peston and Caroll, which was embodied in a structure they called the “corporate social performance” (CSP) framework, which combines the principles and philosophy of societal needs with the economic responsibilities of a business.

Since the early 1980s, social scientists have moved away from the theory of agency as propagated by Friedman and gravitated towards a new model developed by Peston and Caroll, which was embodied in a structure they called the “corporate social performance” (CSP) framework, which combines the principles and philosophy of societal needs with the economic responsibilities of a business.

Freeman (1984) defined stakeholders as “any group or individual who can affect or is affected by the achievements of an organisation's objectives”. The stakeholder’s theory asserts that firms have relationships with many constituent groups and that these stakeholders both affect and are affected by the actions of the firm. In 1984, Freeman argued that the systematic attention of the stakeholders interest is critical to the success of a firm and that management must pursue action that are optimal for a broad class of stakeholders rather than those that serve only to maximise shareholder interests.

Freeman (1984) defined stakeholders as “any group or individual who can affect or is affected by the achievements of an organisation's objectives”. The stakeholder’s theory asserts that firms have relationships with many constituent groups and that these stakeholders both affect and are affected by the actions of the firm. In 1984, Freeman argued that the systematic attention of the stakeholders interest is critical to the success of a firm and that management must pursue action that are optimal for a broad class of stakeholders rather than those that serve only to maximise shareholder interests.

These principles set the path for more research and understanding of these theories and led to the integration of the environmental, social and governance responsibilities of a business with the otherwise predominant economic aspects. The stakeholder concept has facilitated the inclusion of the sustainability concept in the core business practices of a company.

These principles set the path for more research and understanding of these theories and led to the integration of the environmental, social and governance responsibilities of a business with the otherwise predominant economic aspects. The stakeholder concept has facilitated the inclusion of the sustainability concept in the core business practices of a company.

3. Sustainability Reporting

3. Sustainability Reporting

The changing global environment is challenging companies to look beyond financial performance to drive business. Business leaders are increasingly realizing the need to integrate environmental and social issues within the business strategy. In a world of changing expectations, companies must account for the way they impact the communities and environments where they operate. Climate change, community health, education and development, and business sustainability are some of the most important issues of this decade. Businesses are increasingly involved in these areas as are their clients and their people. This raises the importance of accurately and transparently accounting for and reporting these activities.

The changing global environment is challenging companies to look beyond financial performance to drive business. Business leaders are increasingly realizing the need to integrate environmental and social issues within the business strategy. In a world of changing expectations, companies must account for the way they impact the communities and environments where they operate. Climate change, community health, education and development, and business sustainability are some of the most important issues of this decade. Businesses are increasingly involved in these areas as are their clients and their people. This raises the importance of accurately and transparently accounting for and reporting these activities.

Sustainability means different things to different people. The most often quoted definition is from the Brundtland Commission (1987) which states that sustainable development is "Development that meets the needs of the present without compromising the ability of future generation to meet their own needs." Sustainability is, therefore, more of a journey that a destination wherein ideals, values and measurement metrics are in a constant state of evolution.

Sustainability means different things to different people. The most often quoted definition is from the Brundtland Commission (1987) which states that sustainable development is "Development that meets the needs of the present without compromising the ability of future generation to meet their own needs." Sustainability is, therefore, more of a journey that a destination wherein ideals, values and measurement metrics are in a constant state of evolution.

The Triple Bottom Line (TBL), a term coined by Elkington (l997) implies that corporation should focus “not just on the economic value they add but also on the environmental and social value they add – and destroy".

The Triple Bottom Line (TBL), a term coined by Elkington (l997) implies that corporation should focus “not just on the economic value they add but also on the environmental and social value they add – and destroy".

As Deegan (1999) indicated, “for an organisation or community to be sustainable, it must be financially secured (as evidenced through such measures as profitability), it must minimise (or ideally eliminate) its negative environment impact, and it must act in conformity with society’s expectation”.

As Deegan (1999) indicated, “for an organisation or community to be sustainable, it must be financially secured (as evidenced through such measures as profitability), it must minimise (or ideally eliminate) its negative environment impact, and it must act in conformity with society’s expectation”.

While Sustainability Reporting is a decade old idea, it is relatively in its early years with the methodology evolving constantly. Still, many nations and organizations have started to understand the concept

While Sustainability Reporting is a decade old idea, it is relatively in its early years with the methodology evolving constantly. Still, many nations and organizations have started to understand the concept

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and incorporate it in their business functions. Sustainability Reporting is a process for publicly disclosing an organizations economic, social and environmental performance. As with any disclosure, the Sustainability Report lays bare the organizations performance to public scrutiny. What distinguishes the Sustainability Report from other reports is the fact that it makes an organization look at its business from every possible quarter in a single document. In an ideal world, the organization’s stakeholders would analyze the report and give constructive feedback to the organization to improve its performance.

and incorporate it in their business functions. Sustainability Reporting is a process for publicly disclosing an organizations economic, social and environmental performance. As with any disclosure, the Sustainability Report lays bare the organizations performance to public scrutiny. What distinguishes the Sustainability Report from other reports is the fact that it makes an organization look at its business from every possible quarter in a single document. In an ideal world, the organization’s stakeholders would analyze the report and give constructive feedback to the organization to improve its performance.

But Sustainability Reports need to serve a purpose. It should be possible to derive information and knowledge out of them so that they can be compared across organizations. For this purpose, common standards need to be developed. It was in this context that the UN Global Compact was started which is primarily a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. By doing so, business, as a primary driver of globalization, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere.

But Sustainability Reports need to serve a purpose. It should be possible to derive information and knowledge out of them so that they can be compared across organizations. For this purpose, common standards need to be developed. It was in this context that the UN Global Compact was started which is primarily a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. By doing so, business, as a primary driver of globalization, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere.

Global Reporting Initiative (GRI) is another not for profit organization founded in 1997 to address sustainability challenges such as global climate change. In 2002, GRI became an independent international NGO and its secretariat has since been located in Amsterdam, The Netherlands. Its main role was to set up a multi-stakeholder process to define guidance to organizations on what issues they should measure and report on. GRI pioneered and developed a comprehensive sustainability reporting framework that is widely used around the world.

Global Reporting Initiative (GRI) is another not for profit organization founded in 1997 to address sustainability challenges such as global climate change. In 2002, GRI became an independent international NGO and its secretariat has since been located in Amsterdam, The Netherlands. Its main role was to set up a multi-stakeholder process to define guidance to organizations on what issues they should measure and report on. GRI pioneered and developed a comprehensive sustainability reporting framework that is widely used around the world.

IIRC (International Integrated Reporting Council) is one more initiative in the direction of sustainability reporting that results in a periodic integrated report by an organization about value creation over time and related communications regarding aspects of value creation. An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term.

IIRC (International Integrated Reporting Council) is one more initiative in the direction of sustainability reporting that results in a periodic integrated report by an organization about value creation over time and related communications regarding aspects of value creation. An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term.

The figure: 3.1 show how the sustainability reporting standards are going to evolve in future.

The figure: 3.1 show how the sustainability reporting standards are going to evolve in future.

United Nations Global Compact

Global Reporting Initiative

International Integrated Reporting United Nations Global Compact

Global Reporting Initiative

International Integrated Reporting

Figure: 3.1 Various Sustainability Reporting Standards

Figure: 3.1 Various Sustainability Reporting Standards

3.1 UN Global Compact: The UN Global Compact works toward the vision of a sustainable and inclusive global economy which delivers lasting benefits to people, communities, and markets. To help realize this vision, the initiative seeks to:

3.1 UN Global Compact: The UN Global Compact works toward the vision of a sustainable and inclusive global economy which delivers lasting benefits to people, communities, and markets. To help realize this vision, the initiative seeks to:

1. 2.

Mainstream the Global Compact’s Ten Principles in business strategy and operations around the world; and Catalyze business action in support of UN goals and issues, with emphasis on collaboration and collective action.

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1. 2.

Mainstream the Global Compact’s Ten Principles in business strategy and operations around the world; and Catalyze business action in support of UN goals and issues, with emphasis on collaboration and collective action.

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The UN Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anticorruption: Table 3.1:

The UN Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anticorruption:

10 Principal UN Global Compact

Table 3.1:

10 Principal UN Global Compact

Human Rights

Pricipal-1: Business should support and respect internationally proclaimed human rights; Pricipal-2: Ensure that they are not complicit in human rights abuses

Human Rights

Pricipal-1: Business should support and respect internationally proclaimed human rights; Pricipal-2: Ensure that they are not complicit in human rights abuses

Labour

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies Principle 10: Businesses should work against all forms of corruption, including extortion and bribery.

Labour

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies Principle 10: Businesses should work against all forms of corruption, including extortion and bribery.

Environment

Anti Corruption

Environment

Anti Corruption

Every company having more than 10 employees can join the GC by: i) Sending a letter to the UN Secretary General ii) Incorporating the ten principles in their day-to-day operations and business culture iii) Publishing an annual report describing how it supports the ten principles

Every company having more than 10 employees can join the GC by: i) Sending a letter to the UN Secretary General ii) Incorporating the ten principles in their day-to-day operations and business culture iii) Publishing an annual report describing how it supports the ten principles

3.2 GRI reporting framework: Sustainability reports based on the GRI Reporting framework disclose outcomes and results that occurred within the reporting period in the context of the organization’s commitments, strategy, and management approach. Reports can be used for the following purposes, among others:

3.2 GRI reporting framework: Sustainability reports based on the GRI Reporting framework disclose outcomes and results that occurred within the reporting period in the context of the organization’s commitments, strategy, and management approach. Reports can be used for the following purposes, among others:

i)

i)

ii) iii)

Benchmarking and assessing sustainability performance with respect to laws, norms, codes, performance standards, and voluntary initiatives; Demonstrating how the organization influences and is influenced by expectations about sustainable development; and Comparing performance within an organization and between different organizations over time.

ii) iii)

Benchmarking and assessing sustainability performance with respect to laws, norms, codes, performance standards, and voluntary initiatives; Demonstrating how the organization influences and is influenced by expectations about sustainable development; and Comparing performance within an organization and between different organizations over time.

The GRI Reporting Framework is intended to serve as a generally accepted framework for reporting on an organization’s economic, environmental, and social performance. It is designed for use by organizations of any size, sector, or location. It takes into account the practical considerations faced by a diverse range of organizations – from small enterprises to those with extensive and geographically dispersed operations.

The GRI Reporting Framework is intended to serve as a generally accepted framework for reporting on an organization’s economic, environmental, and social performance. It is designed for use by organizations of any size, sector, or location. It takes into account the practical considerations faced by a diverse range of organizations – from small enterprises to those with extensive and geographically dispersed operations.

There are two different types of Standard Disclosures: General Standard Disclosures and Specific Standard Disclosures.

There are two different types of Standard Disclosures: General Standard Disclosures and Specific Standard Disclosures.

3.2.1 General Standard Disclosures i) Strategy and Analysis ii) Organizational Profile iii) Identified Material Aspects and Boundaries iv) Stakeholder Engagement v) Report Profile vi) Governance vii) Ethics and Integrity

3.2.1 General Standard Disclosures i) Strategy and Analysis ii) Organizational Profile iii) Identified Material Aspects and Boundaries iv) Stakeholder Engagement v) Report Profile vi) Governance vii) Ethics and Integrity

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3.2.2 Specific Standard Disclosures i) Disclosures on Management Approach ii) Indicators

3.2.2 Specific Standard Disclosures i) Disclosures on Management Approach ii) Indicators

Management Approach: Disclosures that cover how an organization addresses a given set of topics in order to provide context for understanding performance in a specific area.

Management Approach: Disclosures that cover how an organization addresses a given set of topics in order to provide context for understanding performance in a specific area.

Indicators: Indicators that elicit comparable information on the economic, environmental, and social performance of the organization. The Guidelines organize indicators into three Categories - Economic, Environmental and Social. The Social Category is further divided into four sub-Categories, which are Labor Practices and Decent Work, Human Rights, Society and Product Responsibility.

Indicators: Indicators that elicit comparable information on the economic, environmental, and social performance of the organization. The Guidelines organize indicators into three Categories - Economic, Environmental and Social. The Social Category is further divided into four sub-Categories, which are Labor Practices and Decent Work, Human Rights, Society and Product Responsibility.

The GRI Aspects are set out within each Category. Table 3.2 on the next page gives an overview of the Categories and Aspects. The organization’s sustainability report presents information relating to material Aspects, that is, those Aspects for which impacts are identified as material by the organization. Material Aspects are those that reflect the organization’s significant economic, environmental and social impacts; or that substantively influence the assessments and decisions of stakeholders.

The GRI Aspects are set out within each Category. Table 3.2 on the next page gives an overview of the Categories and Aspects. The organization’s sustainability report presents information relating to material Aspects, that is, those Aspects for which impacts are identified as material by the organization. Material Aspects are those that reflect the organization’s significant economic, environmental and social impacts; or that substantively influence the assessments and decisions of stakeholders.

Table 3.2 Overview of the Categories and Aspects

Table 3.2 Overview of the Categories and Aspects

Source: GRI Sustainability Report

Source: GRI Sustainability Report

4. Policy initiatives by Indian Government on corporate social responsibility and sustainable development

4. Policy initiatives by Indian Government on corporate social responsibility and sustainable development

With increasing importance of India as a global economy and its role at crucial international forums dealing with economic and climate change issues, the Finance Ministry decided in 2011 to expand the scope of the annual Economic Survey to include a chapter on the topic of financing of climate change. The survey discusses the effect of climate change in India, the government initiatives, financing and overall strategy.

With increasing importance of India as a global economy and its role at crucial international forums dealing with economic and climate change issues, the Finance Ministry decided in 2011 to expand the scope of the annual Economic Survey to include a chapter on the topic of financing of climate change. The survey discusses the effect of climate change in India, the government initiatives, financing and overall strategy.

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India has many publicly-funded programs for the prevention and control of climate risks and issues relating to sustainable development. One of the major objectives of many rural development and poverty upliftment programmes is the reduction of vulnerability to risks arising out of climate change.

India has many publicly-funded programs for the prevention and control of climate risks and issues relating to sustainable development. One of the major objectives of many rural development and poverty upliftment programmes is the reduction of vulnerability to risks arising out of climate change.

Banks have been assigned a special role in the economic development of the country, and the Reserve Bank of India, the banking regulator, has prescribed that certain percentage of bank lending should be allocated to developmental sector called the “Priority Sector”. In addition, banks have begun to realise their role as multipliers for responsible and sustainable business as they increasingly integrate evaluation on sustainability as one of the key inputs to their decision on financing and valuation of projects. Similarly, the Charter on "Corporate Responsibility for Environmental Protection (CREP)" from Ministry of Environment & Forest (MoEF) looks beyond the compliance of regulatory norms for prevention & control of pollution through various measures including waste minimisation, in-plant process control & adoption of clean technologies. The Charter set targets concerning conservation of water, energy, recovery of chemicals, reduction in pollution, elimination of toxic pollutants, process & management of residues that are required to be disposed of in an environmentally sound manner, listing action points for pollution control for various categories of highly polluting industries.

Banks have been assigned a special role in the economic development of the country, and the Reserve Bank of India, the banking regulator, has prescribed that certain percentage of bank lending should be allocated to developmental sector called the “Priority Sector”. In addition, banks have begun to realise their role as multipliers for responsible and sustainable business as they increasingly integrate evaluation on sustainability as one of the key inputs to their decision on financing and valuation of projects. Similarly, the Charter on "Corporate Responsibility for Environmental Protection (CREP)" from Ministry of Environment & Forest (MoEF) looks beyond the compliance of regulatory norms for prevention & control of pollution through various measures including waste minimisation, in-plant process control & adoption of clean technologies. The Charter set targets concerning conservation of water, energy, recovery of chemicals, reduction in pollution, elimination of toxic pollutants, process & management of residues that are required to be disposed of in an environmentally sound manner, listing action points for pollution control for various categories of highly polluting industries.

Financial reporting in India includes mandatory reporting on environment and social matters such as on consumption of energy, use of raw materials and intermediaries, conservation efforts, accounting for environment cost, and disclosures on liability for environment issues. Labour and industrial laws are also well established and companies are required to report on matters such as salaries, wages and benefits paid to employees and the status of payment towards retirement and social benefits.

Financial reporting in India includes mandatory reporting on environment and social matters such as on consumption of energy, use of raw materials and intermediaries, conservation efforts, accounting for environment cost, and disclosures on liability for environment issues. Labour and industrial laws are also well established and companies are required to report on matters such as salaries, wages and benefits paid to employees and the status of payment towards retirement and social benefits.

The Ministry of Corporate Affairs released Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) in July 2011 after considerable stakeholder consultations. They are compatible with globally acceptable guidelines on sustainability reporting. The GRI focal point India and the GIZ India have supported and promoted the creation of the NVG through the IICA-GIZ CSR Initiative.

The Ministry of Corporate Affairs released Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) in July 2011 after considerable stakeholder consultations. They are compatible with globally acceptable guidelines on sustainability reporting. The GRI focal point India and the GIZ India have supported and promoted the creation of the NVG through the IICA-GIZ CSR Initiative.

Recently, the department of public enterprises has issued guidelines on Sustainable Development and CSR for Central Public Sector Undertakings (CPSEs). These guidelines stipulate how much and how CPSEs should invest and report on Corporate Social Responsibility (CSR). The CSR budget mandated range from 0.5 percent to 5 percent of the profit depending on the net profit of the CPSE.

Recently, the department of public enterprises has issued guidelines on Sustainable Development and CSR for Central Public Sector Undertakings (CPSEs). These guidelines stipulate how much and how CPSEs should invest and report on Corporate Social Responsibility (CSR). The CSR budget mandated range from 0.5 percent to 5 percent of the profit depending on the net profit of the CPSE.

A recent decision taken by the Securities and Exchange Board of India (SEBI) mandates that listed entities should submit Business Responsibility report as a part of their annual reports, which would describe measures taken by them along the key principles enunciated in the 'National Voluntary Guidelines on Social, Environmental and Economic Responsibility of Business' (NVGs) framed by the Ministry-of Corporate Affairs (MCA).

A recent decision taken by the Securities and Exchange Board of India (SEBI) mandates that listed entities should submit Business Responsibility report as a part of their annual reports, which would describe measures taken by them along the key principles enunciated in the 'National Voluntary Guidelines on Social, Environmental and Economic Responsibility of Business' (NVGs) framed by the Ministry-of Corporate Affairs (MCA).

To start with, this requirement would be applicable to the top 100 companies in terms of market capitalisation and would be extended to other companies in a phased manner. This decision indicates the importance that the Government of India places on the fulfilment of environmental, social and governance responsibilities of businesses. The new Company's Bill tabled in the Parliament in December 2011 is a key steps towards strengthening corporate governance and business sustainability measures. The new Bill suggest that Every company with a net worth exceeding Rs. 5 billion or a turnover exceeding Rs. 10 billion or profit exceeding Rs. 50 million should form a committee of three or more directors, including at least one independent director, to recommend activities for discharging corporate social responsibilities in such a manner that the company would spend at least 2 percent of its average profits of the previous three years on CSR. The company is also required to disclose its activities in its report or on its website, and to institute a formal policy on CSR.

To start with, this requirement would be applicable to the top 100 companies in terms of market capitalisation and would be extended to other companies in a phased manner. This decision indicates the importance that the Government of India places on the fulfilment of environmental, social and governance responsibilities of businesses. The new Company's Bill tabled in the Parliament in December 2011 is a key steps towards strengthening corporate governance and business sustainability measures. The new Bill suggest that Every company with a net worth exceeding Rs. 5 billion or a turnover exceeding Rs. 10 billion or profit exceeding Rs. 50 million should form a committee of three or more directors, including at least one independent director, to recommend activities for discharging corporate social responsibilities in such a manner that the company would spend at least 2 percent of its average profits of the previous three years on CSR. The company is also required to disclose its activities in its report or on its website, and to institute a formal policy on CSR.

5. Issues with sustainability reporting

5. Issues with sustainability reporting

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A recent study by University of Leeds and Euromed Management School, France based on an analysis of over 4000 CSR reports concluded that the reports have been fraught with irrelevant data, unsubstantiated claims, and gaps in data and inaccurate data and suggest that missing rigour and voluntary action results in lower public trust in such reports.

A recent study by University of Leeds and Euromed Management School, France based on an analysis of over 4000 CSR reports concluded that the reports have been fraught with irrelevant data, unsubstantiated claims, and gaps in data and inaccurate data and suggest that missing rigour and voluntary action results in lower public trust in such reports.

Unlike financial reporting, the disclosure of sustainability metrics to the market is largely unregulated and predominantly voluntary. However, as sustainability becomes a critical factor in the business environment it would become important for companies to build a framework for these processes, information systems and controls that match the quality and focus observed in financial reporting. A third party assurance, in this direction, may ensure quality and consistency of disclosures. It involves verification, which is an independent, documented and systematic process of scrutinizing data, its associated processes and methods for collection and its management, which leads to an assurance statement. This indicates the reliability of disclosures and demonstrates credibility of the organization to its stakeholders.

Unlike financial reporting, the disclosure of sustainability metrics to the market is largely unregulated and predominantly voluntary. However, as sustainability becomes a critical factor in the business environment it would become important for companies to build a framework for these processes, information systems and controls that match the quality and focus observed in financial reporting. A third party assurance, in this direction, may ensure quality and consistency of disclosures. It involves verification, which is an independent, documented and systematic process of scrutinizing data, its associated processes and methods for collection and its management, which leads to an assurance statement. This indicates the reliability of disclosures and demonstrates credibility of the organization to its stakeholders.

Trends in external assurance of sustainability reports based on the GRI framework from India reveals a rise in external assurance from 10% in 2006 to more than 70% in 2010. This rise in percentage is significant more so when coupled with the rise in number of GRI reports from Indian industry. It is worthwhile to note that GRI recommends the use of external assurance

Trends in external assurance of sustainability reports based on the GRI framework from India reveals a rise in external assurance from 10% in 2006 to more than 70% in 2010. This rise in percentage is significant more so when coupled with the rise in number of GRI reports from Indian industry. It is worthwhile to note that GRI recommends the use of external assurance

6. Conclusion

6. Conclusion

India is acknowledged as one of the fastest growing economies in the world; as a result, it faces the challenge of balancing fuel consumption, and its rapid growth with the equitable conservation of its key resources, and managing the impact on society. Although corporate responsibility seems to be in the experimental phase in India as of now, significant progress in both the number of reports and quality of information reported is expected in the coming years. The expectations form Indian reporters going forward is to focus on presenting information related to:

India is acknowledged as one of the fastest growing economies in the world; as a result, it faces the challenge of balancing fuel consumption, and its rapid growth with the equitable conservation of its key resources, and managing the impact on society. Although corporate responsibility seems to be in the experimental phase in India as of now, significant progress in both the number of reports and quality of information reported is expected in the coming years. The expectations form Indian reporters going forward is to focus on presenting information related to:

i) Sustainability issues, challenges, dilemmas and opportunities. ii) Regulatory environment and fact-based information. iii) Information of interest to investors such as materiality of issues in financial terms, vision and strategy statements, goals and targets, etc. iv) Explanation on identification and prioritization of material issues. v) Reader friendly report design.

i) Sustainability issues, challenges, dilemmas and opportunities. ii) Regulatory environment and fact-based information. iii) Information of interest to investors such as materiality of issues in financial terms, vision and strategy statements, goals and targets, etc. iv) Explanation on identification and prioritization of material issues. v) Reader friendly report design.

At the regulatory level, various directives have been issued and with some still in pilot stage. The Institute of Chartered Accountants of India (ICAI) has set up the ICAI – Accounting Research Foundation (ICAI-ARF), which has undertaken a special project to suggest a suitable framework for sustainability reporting for Indian companies. Further, the Ministry of Corporate Affairs, Government of India in association with the Indian Institute of Corporate Affairs has released the voluntary guidelines on social, environmental and economic responsibilities of business. In the financial sector, there is a visible trend to promote environmentally and socially responsible lending and investment, with the Reserve Bank of India recently issuing a circular for highlighting role of banks in promoting sustainable development. There is no doubt that corporate responsibility is here to stay and businesses have realized the value of embracing sustainability and more so making it a part of their overall business strategy.

At the regulatory level, various directives have been issued and with some still in pilot stage. The Institute of Chartered Accountants of India (ICAI) has set up the ICAI – Accounting Research Foundation (ICAI-ARF), which has undertaken a special project to suggest a suitable framework for sustainability reporting for Indian companies. Further, the Ministry of Corporate Affairs, Government of India in association with the Indian Institute of Corporate Affairs has released the voluntary guidelines on social, environmental and economic responsibilities of business. In the financial sector, there is a visible trend to promote environmentally and socially responsible lending and investment, with the Reserve Bank of India recently issuing a circular for highlighting role of banks in promoting sustainable development. There is no doubt that corporate responsibility is here to stay and businesses have realized the value of embracing sustainability and more so making it a part of their overall business strategy.

7. References

7. References

Carroll, A., (1979), A three dimensional model of corporate performance, Academy of Management Review, no. 4, pp. 99-120.

Carroll, A., (1979), A three dimensional model of corporate performance, Academy of Management Review, no. 4, pp. 99-120.

Deegan, C. (1997), “A Triple Bottom Line Reporting: A new approach for sustainable Organisation” Charter, April, Vol.70, pp. 38-40.

Deegan, C. (1997), “A Triple Bottom Line Reporting: A new approach for sustainable Organisation” Charter, April, Vol.70, pp. 38-40.

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Elington, J. (1997), “Cannibals with Forks: The Triple Bottom Line of 21 st Century Business”, Oxford Capstone Publishing.

Elington, J. (1997), “Cannibals with Forks: The Triple Bottom Line of 21 st Century Business”, Oxford Capstone Publishing.

Finch, Nigel (2005), “The Motivation for Adopting Sustainability Disclosure”, MGSM Working Paper no. 2005-17, Available SSRN: http://ssrn.com/abstract=798724

Finch, Nigel (2005), “The Motivation for Adopting Sustainability Disclosure”, MGSM Working Paper no. 2005-17, Available SSRN: http://ssrn.com/abstract=798724

Friedman, M., (1962), Capitalism and Freedom, University of Chicago Press, Chicago.

Friedman, M., (1962), Capitalism and Freedom, University of Chicago Press, Chicago.

Freidman, M., (1970), The social responsibility of business is to increase its profits, New York Times, September 13, pp. 122-126.

Freidman, M., (1970), The social responsibility of business is to increase its profits, New York Times, September 13, pp. 122-126.

Freeman, R. Edward (1984), Strategic Management: A Stakeholder Approach, Boston Pitman, USBN 0273019139.

Freeman, R. Edward (1984), Strategic Management: A Stakeholder Approach, Boston Pitman, USBN 0273019139.

Gelb, D. and Strawser, J. (2001), "Corporate Social Responsibility and Financial disclosure: An alternative explanation for Increased Disclosure”, Journal of Business Ethics, Vol.33, No.1, pp. 1-13.

Gelb, D. and Strawser, J. (2001), "Corporate Social Responsibility and Financial disclosure: An alternative explanation for Increased Disclosure”, Journal of Business Ethics, Vol.33, No.1, pp. 1-13.

https://www.globalreporting.org/resourcelibrary/G3.1-Guidelines-Incl-Technical-Protocol.pdf

https://www.globalreporting.org/resourcelibrary/G3.1-Guidelines-Incl-Technical-Protocol.pdf

http://www.earthsummit2012.org/historical-documents/the-brundtland-report-our-common-future.

http://www.earthsummit2012.org/historical-documents/the-brundtland-report-our-common-future.

Mc William, A. and Siegel, D. (2001), “Corporate Social Responsibility: A Theory of the Firm Perspective”, Academy of Management Review, Vol.1, No.26, pp. 117-27.

Mc William, A. and Siegel, D. (2001), “Corporate Social Responsibility: A Theory of the Firm Perspective”, Academy of Management Review, Vol.1, No.26, pp. 117-27.

Author’s Profile

Author’s Profile Dr. Anand Rai is Associate Professor, with Raffles group promoted, JRE Group of Institutions, India. His doctorate is in the area of microfinance. He has provided consultancies for overall improvement in the performance of India’s largest CSD canteen which is managed by Indian Army HQ, Delhi Area. He has conducted MDPs for Yamha Motors, WNS, and Ericsson etc. He is active in research and published several papers in various national and international journals of repute. His current area of research interests are Microfinance, Sustainable development and Non Financial Reporting.

Dr. Anand Rai is Associate Professor, with Raffles group promoted, JRE Group of Institutions, India. His doctorate is in the area of microfinance. He has provided consultancies for overall improvement in the performance of India’s largest CSD canteen which is managed by Indian Army HQ, Delhi Area. He has conducted MDPs for Yamha Motors, WNS, and Ericsson etc. He is active in research and published several papers in various national and international journals of repute. His current area of research interests are Microfinance, Sustainable development and Non Financial Reporting.

Dr. Sandhya Rai is presently working as Assistant Professor in the area of Operations at IILM Graduate School of Management Greater Noida, India. She is the area chair operations and has written five books in the area of operations and general management. She is also the chief Editor of Journal of Business Management and reviewer of more than 10 journals. She is having more than 12 years of teaching and industry experience and had published papers in national and international journals. Her area of interest includes IT for sustainability, Green supply chain and Women empowerment.

Dr. Sandhya Rai is presently working as Assistant Professor in the area of Operations at IILM Graduate School of Management Greater Noida, India. She is the area chair operations and has written five books in the area of operations and general management. She is also the chief Editor of Journal of Business Management and reviewer of more than 10 journals. She is having more than 12 years of teaching and industry experience and had published papers in national and international journals. Her area of interest includes IT for sustainability, Green supply chain and Women empowerment.

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Determining Factors Influencing Corporate Social Responsibility Disclosure of Manufacturing Sector in Indonesia

Determining Factors Influencing Corporate Social Responsibility Disclosure of Manufacturing Sector in Indonesia

Euphrasia Susy Suhendra1, Emmy Indrayani2 1,2 Gunadarma University, Indonesia 1 [email protected], [email protected]

Euphrasia Susy Suhendra1, Emmy Indrayani2 1,2 Gunadarma University, Indonesia 1 [email protected], [email protected]

Abstract

Abstract

Manufacturing company which is a major sector in the Jakarta Stock Exchange, showed high growth. Such growth increases also the obligation of each company to the environment. Social responsibility that consists of responsibility for the welfare of employees, operating efficiency and responsibility of protecting the environment becomes a necessity for the company. Disclosure of the company's activities for social responsibility to be important for the company and its stakeholders. Stakeholders began to care about the performance of environmental and social responsibility of the company in addition to financial performance. The purpose of this study was to examine whether the company has environmental performance and financial performance will be revealing its social responsibility in their annual reports. Manufacturing companies listed on the Jakarta Stock Exchange became the object under study. Structural equation model used in the testing and proving the relationship between financial performance, environmental performance and social responsibility disclosure. The results obtained indicate that the environmental performance significantly affect the disclosure of manufacturing corporate social responsibility. Nevertheless, the company's financial performance has no effect on the disclosure of social responsibility, directly or through environmental performance.

Manufacturing company which is a major sector in the Jakarta Stock Exchange, showed high growth. Such growth increases also the obligation of each company to the environment. Social responsibility that consists of responsibility for the welfare of employees, operating efficiency and responsibility of protecting the environment becomes a necessity for the company. Disclosure of the company's activities for social responsibility to be important for the company and its stakeholders. Stakeholders began to care about the performance of environmental and social responsibility of the company in addition to financial performance. The purpose of this study was to examine whether the company has environmental performance and financial performance will be revealing its social responsibility in their annual reports. Manufacturing companies listed on the Jakarta Stock Exchange became the object under study. Structural equation model used in the testing and proving the relationship between financial performance, environmental performance and social responsibility disclosure. The results obtained indicate that the environmental performance significantly affect the disclosure of manufacturing corporate social responsibility. Nevertheless, the company's financial performance has no effect on the disclosure of social responsibility, directly or through environmental performance.

Keywords: financial performance, environmental performance, corporate social responsibility, manufacturing company, structural equation model.

Keywords: financial performance, environmental performance, corporate social responsibility, manufacturing company, structural equation model.

1.

Introduction

1.

Introduction

Manufacturing companies in Indonesia have a greatly high growth. There are a lot of multinational manufacturing companies whereas their base is in Indonesia due to a promising and good market. Along with the growth of economy in Indonesia, there is a rise in public welfare. A high opportunity in manufacturing company is determined by a high efficiency and effectiveness in their funding within manufacturing industry. The growth of manufacturing companies in Indonesia reaches 10 percent approximately. Financial performance is an achievement which has been obtained by a company within certain period and is visible in the financial report of a particular company; hence one of the information which can be known by related parties or other users that use financial report such as profitability, liquidity of a company.

Manufacturing companies in Indonesia have a greatly high growth. There are a lot of multinational manufacturing companies whereas their base is in Indonesia due to a promising and good market. Along with the growth of economy in Indonesia, there is a rise in public welfare. A high opportunity in manufacturing company is determined by a high efficiency and effectiveness in their funding within manufacturing industry. The growth of manufacturing companies in Indonesia reaches 10 percent approximately. Financial performance is an achievement which has been obtained by a company within certain period and is visible in the financial report of a particular company; hence one of the information which can be known by related parties or other users that use financial report such as profitability, liquidity of a company.

There are a lot of factors that affect decision making in investment, such as an investment in stock market. At present, report from a company is a big social responsibility and this has attracted a lot of attention. This report explains and elaborates the capability of a company to contribute for people and environment; thus a company should not only think about its way of making profits. A company is obliged to pay attention on the social effect as well as environmental effect which they can cause by them in order to reach their goal of making profits. Other than financial performance factor which can be used as a reference in order to make a decision, hence the environmental performance factor should be another point that needs to be considered as well. With environmental performance, thus it is possible to evaluate a company whether or not it pays attention and considers their environment and their surroundings.

There are a lot of factors that affect decision making in investment, such as an investment in stock market. At present, report from a company is a big social responsibility and this has attracted a lot of attention. This report explains and elaborates the capability of a company to contribute for people and environment; thus a company should not only think about its way of making profits. A company is obliged to pay attention on the social effect as well as environmental effect which they can cause by them in order to reach their goal of making profits. Other than financial performance factor which can be used as a reference in order to make a decision, hence the environmental performance factor should be another point that needs to be considered as well. With environmental performance, thus it is possible to evaluate a company whether or not it pays attention and considers their environment and their surroundings.

Corporate Social Responsibility is one of the ideas in order to make the company responsible and aware of their responsibility towards the society as well as the environment. In Indonesia, CSR practice is arranged by Indonesian Accountant Association in Pernyataan Standar Akuntansi Keuangan No. 1 paragraf 9 (Accounting Standard Statement) that says a company can serve an additional report as a report about

Corporate Social Responsibility is one of the ideas in order to make the company responsible and aware of their responsibility towards the society as well as the environment. In Indonesia, CSR practice is arranged by Indonesian Accountant Association in Pernyataan Standar Akuntansi Keuangan No. 1 paragraf 9 (Accounting Standard Statement) that says a company can serve an additional report as a report about

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environment and an additional value, especially for industry whose environmental factors play an important role and for the industry that thinks that the workers hold an important report.

environment and an additional value, especially for industry whose environmental factors play an important role and for the industry that thinks that the workers hold an important report.

The CSR program is meant to remind the world about the importance of the ethic in business to be always responsible towards the society as well as the environment in order to sustain the economy for the future prospect so the role of business can be maintained in the world economy. This program is to make a realization about social responsibility of a company as one of the ways of the company to build, sustain, and legitimate company’s contribution from economy and politic sides.

The CSR program is meant to remind the world about the importance of the ethic in business to be always responsible towards the society as well as the environment in order to sustain the economy for the future prospect so the role of business can be maintained in the world economy. This program is to make a realization about social responsibility of a company as one of the ways of the company to build, sustain, and legitimate company’s contribution from economy and politic sides.

The aim of this research is, to analyze the effect of financial performance through environmental performance towards the Corporate Social Responsibility disclosure of manufacturing companies in Indonesia.

The aim of this research is, to analyze the effect of financial performance through environmental performance towards the Corporate Social Responsibility disclosure of manufacturing companies in Indonesia.

2.

Literature Review

2.

Literature Review

According to Friedman (1970), in a free society, ―there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.‖ He prefers that the state address social problems, arguing that an executive, by taking money and resources that would otherwise go to owners, employees, and costumers, and allocating them according to the will of the minority, fails to serve the interests of her or his principal. In this way, the executive imposes a tax and spends the proceeds for ―social‖ purposes, which is intolerable, since she or he has neither the skills nor the jurisdiction to do so. On the other hand, there are many appeals by others for corporate adoption of the CSR principles. Although the government is mainly responsible for addressing those issues, the contribution of private firms can be substantial. There is also the argument of the shifting balance of power.

According to Friedman (1970), in a free society, ―there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.‖ He prefers that the state address social problems, arguing that an executive, by taking money and resources that would otherwise go to owners, employees, and costumers, and allocating them according to the will of the minority, fails to serve the interests of her or his principal. In this way, the executive imposes a tax and spends the proceeds for ―social‖ purposes, which is intolerable, since she or he has neither the skills nor the jurisdiction to do so. On the other hand, there are many appeals by others for corporate adoption of the CSR principles. Although the government is mainly responsible for addressing those issues, the contribution of private firms can be substantial. There is also the argument of the shifting balance of power.

Certainly, adopting the CSR principles involves costs. These costs might be short term in nature or continuous outflows. These costs might involve the purchase of new 6 environmentally friendly equipment, the change of management structures, or the implementation of stricter quality controls. Since being socially responsible involves costs, it should generate benefits as well in order to be a sustainable business practice. A corporation could not continue a policy that constantly generates negative cash flows. The shareholders invest their money in a corporation, expecting the highest possible risk adjusted return. Therefore, being socially responsible should have bottom-line benefits in order to be sustainable.

Certainly, adopting the CSR principles involves costs. These costs might be short term in nature or continuous outflows. These costs might involve the purchase of new 6 environmentally friendly equipment, the change of management structures, or the implementation of stricter quality controls. Since being socially responsible involves costs, it should generate benefits as well in order to be a sustainable business practice. A corporation could not continue a policy that constantly generates negative cash flows. The shareholders invest their money in a corporation, expecting the highest possible risk adjusted return. Therefore, being socially responsible should have bottom-line benefits in order to be sustainable.

Socially responsible corporate performance can be associated with a series of bottom-line benefits. But in many cases, it seems that the time frame of the costs and benefits can be out of alignment—the costs are immediate, and the benefits are not often realized quarterly. Nevertheless, many benefits can be identified. Firstly, socially responsible companies have enhanced brand image and reputation. Consumers are often drawn to brands and companies with good reputations in CSR related issues. A company regarded as socially responsible can also benefit from its reputation within the business community by having increased ability to attract capital and trading partners. Reputation is hard to quantify and measure; it is even harder to measure how much it increases a company’s value. But since companies have developed methods to measure the benefits of their advertisement campaigns, similar methods can and should be able to be applied in the case of corporate reputation.

Socially responsible corporate performance can be associated with a series of bottom-line benefits. But in many cases, it seems that the time frame of the costs and benefits can be out of alignment—the costs are immediate, and the benefits are not often realized quarterly. Nevertheless, many benefits can be identified. Firstly, socially responsible companies have enhanced brand image and reputation. Consumers are often drawn to brands and companies with good reputations in CSR related issues. A company regarded as socially responsible can also benefit from its reputation within the business community by having increased ability to attract capital and trading partners. Reputation is hard to quantify and measure; it is even harder to measure how much it increases a company’s value. But since companies have developed methods to measure the benefits of their advertisement campaigns, similar methods can and should be able to be applied in the case of corporate reputation.

Socially responsible companies also have less risk of negative rare events. Overlooking negative social and environmental externalities when valuing a company might be equal to ignoring significant tail risk. The risks related to CSR could be grouped into three categories: corporate governance, environmental aspects, and social aspects. Companies that adopt the CSR principles are more transparent and have less risk of bribery and corruption. In addition, they may implement stricter and, thus, more costly quality and environmental controls, but they run less risk of having to recall defective product lines and pay heavy fines for excessive polluting. They also have less risk of negative social events which damage their reputation and cost millions of dollars in information and advertising campaigns

Socially responsible companies also have less risk of negative rare events. Overlooking negative social and environmental externalities when valuing a company might be equal to ignoring significant tail risk. The risks related to CSR could be grouped into three categories: corporate governance, environmental aspects, and social aspects. Companies that adopt the CSR principles are more transparent and have less risk of bribery and corruption. In addition, they may implement stricter and, thus, more costly quality and environmental controls, but they run less risk of having to recall defective product lines and pay heavy fines for excessive polluting. They also have less risk of negative social events which damage their reputation and cost millions of dollars in information and advertising campaigns

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Thus, socially responsible 7 businesses should have more stable earnings growth and less downside volatility. Since companies that adopt the CSR principles carry less risk, when valuing those companies, a lower discount rate should be used. In the company valuation this lower tail risk should be taken into account. There are also other cases in which doing what is good and responsible converges with doing the best for the particular business. Some CSR initiatives can dramatically reduce operating costs. For example, reducing packaging material or planning the optimum route for delivery trucks not only reduces the environmental impact of a company’s operation, but it also reduces the cost. The process of adopting the CSR principles motivates executives to reconsider their business practices and to seek more efficient ways of operating.

Thus, socially responsible 7 businesses should have more stable earnings growth and less downside volatility. Since companies that adopt the CSR principles carry less risk, when valuing those companies, a lower discount rate should be used. In the company valuation this lower tail risk should be taken into account. There are also other cases in which doing what is good and responsible converges with doing the best for the particular business. Some CSR initiatives can dramatically reduce operating costs. For example, reducing packaging material or planning the optimum route for delivery trucks not only reduces the environmental impact of a company’s operation, but it also reduces the cost. The process of adopting the CSR principles motivates executives to reconsider their business practices and to seek more efficient ways of operating.

Companies perceived to have a strong CSR commitment often have an increased ability to attract and to retain employees (Turban & Greening 1997), which leads to reduced turnover, recruitment, and training costs. Employees, too, often evaluate their companies CSR performance to determine if their personal values conflict with those of the businesses at which they work. There are many known cases in which employees were asked, under pressure of their supervisors, to overlook written or moral laws in order to achieve higher profits. These practices create a culture of fear in the workplace and harm the employees’ trust, loyalty, and commitment to the company. Companies that improve working conditions and labor practices also experience increased productivity and reduced error rates. Regular controls in the production facilities throughout the world ensure that all the employees work under good conditions and earn living wages. These practices are costly, but the increased productivity of the workers and improved quality of the products generate positive cash flows that cover the associated costs. Thus, firms may actually benefit from socially responsible actions in terms of employee morale and productivity (Moskowitz, 1972; Parket & Eibert, 1975; Soloman & Hansen, 1985). 8 As mentioned earlier, although it is rather straightforward to identify the above benefits as being socially responsible for businesses, it is an arduous task to quantify and measure them. Since CSR is integrated into the business practices, it is by definition complicated to try to measure its effects separately. Ideally, it should be possible to keep all other factors constant and measure a company’s financial performance and volatility of cash flows before and after adopting the CSR principles. As this is not possible, however, empirical methods are used to identify the relationship between a company’s socially responsible conduct and its financial performance.

Companies perceived to have a strong CSR commitment often have an increased ability to attract and to retain employees (Turban & Greening 1997), which leads to reduced turnover, recruitment, and training costs. Employees, too, often evaluate their companies CSR performance to determine if their personal values conflict with those of the businesses at which they work. There are many known cases in which employees were asked, under pressure of their supervisors, to overlook written or moral laws in order to achieve higher profits. These practices create a culture of fear in the workplace and harm the employees’ trust, loyalty, and commitment to the company. Companies that improve working conditions and labor practices also experience increased productivity and reduced error rates. Regular controls in the production facilities throughout the world ensure that all the employees work under good conditions and earn living wages. These practices are costly, but the increased productivity of the workers and improved quality of the products generate positive cash flows that cover the associated costs. Thus, firms may actually benefit from socially responsible actions in terms of employee morale and productivity (Moskowitz, 1972; Parket & Eibert, 1975; Soloman & Hansen, 1985). 8 As mentioned earlier, although it is rather straightforward to identify the above benefits as being socially responsible for businesses, it is an arduous task to quantify and measure them. Since CSR is integrated into the business practices, it is by definition complicated to try to measure its effects separately. Ideally, it should be possible to keep all other factors constant and measure a company’s financial performance and volatility of cash flows before and after adopting the CSR principles. As this is not possible, however, empirical methods are used to identify the relationship between a company’s socially responsible conduct and its financial performance.

3.

Research Method

3.

Research Method

Population and sample in a study needs to be set in order for the research done really get the data as expected. The population in this study is all companies listed on the Stock Exchange in 2011-2013, while the sample is used throughout the manufacturing companies. Manufacturing companies selected for the manufacturing industry has a broad scope. The period of observation in this study is 2011-2013.

Population and sample in a study needs to be set in order for the research done really get the data as expected. The population in this study is all companies listed on the Stock Exchange in 2011-2013, while the sample is used throughout the manufacturing companies. Manufacturing companies selected for the manufacturing industry has a broad scope. The period of observation in this study is 2011-2013.

Variables that examined in this study consist of the independent variables, intervening variable, and dependent variable. The independent variables in this study using financial performance, consists of Return on Asset (ROA), Return on Investment (ROI), Return on Equity (ROE), Net Profit Margin (NPM) and Earning per Share (EPS).The dependent variable in this study is Corporate Social Responsibility Disclosure,Intervening variable in this study is Environment Performance.

Variables that examined in this study consist of the independent variables, intervening variable, and dependent variable. The independent variables in this study using financial performance, consists of Return on Asset (ROA), Return on Investment (ROI), Return on Equity (ROE), Net Profit Margin (NPM) and Earning per Share (EPS).The dependent variable in this study is Corporate Social Responsibility Disclosure,Intervening variable in this study is Environment Performance.

A study requires data analysis and interpretation that aims to answer the questions researchers in order to reveal certain social phenomena. Data analysis is the process of simplification of data into a form that is easier to read and interpreted. The method chosen for the analysis of the data must be in accordance with the pattern of research and variables to be studied.

A study requires data analysis and interpretation that aims to answer the questions researchers in order to reveal certain social phenomena. Data analysis is the process of simplification of data into a form that is easier to read and interpreted. The method chosen for the analysis of the data must be in accordance with the pattern of research and variables to be studied.

Hypothesis proposed in this study are:

Hypothesis proposed in this study are:

H1

:Financial Performance (KK) has a direct effect toward CSR Disclosure (CSRDI)

H1

:Financial Performance (KK) has a direct effect toward CSR Disclosure (CSRDI)

H2

:Financial Performance (KK) has a direct effect toward Environmental Performance (KL)

H2

:Financial Performance (KK) has a direct effect toward Environmental Performance (KL)

H3 : Financial Performance (KK) has an effect toward CSR Disclosure (CSRDI) through Environmental Performance (KL)

H3 : Financial Performance (KK) has an effect toward CSR Disclosure (CSRDI) through Environmental Performance (KL)

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The model used in this study is a model of causality or relationships effect. To test the hypothesis proposed in this study, the technique of analysis that will be used is Structural Equation Modeling SEM or operated by AMOS. Modeling studies by SEM allows a researcher to answer the research questions that are dimensionally (i.e. measure what the indicators of a concept) and regression (to measure the effect or the degree of relationship between the factors that have been identified dimensions).

The model used in this study is a model of causality or relationships effect. To test the hypothesis proposed in this study, the technique of analysis that will be used is Structural Equation Modeling SEM or operated by AMOS. Modeling studies by SEM allows a researcher to answer the research questions that are dimensionally (i.e. measure what the indicators of a concept) and regression (to measure the effect or the degree of relationship between the factors that have been identified dimensions).

Augusty Ferdinand (2006) cites several reasons the use of SEM as an analytical tool is that SEM is suitable for:

Augusty Ferdinand (2006) cites several reasons the use of SEM as an analytical tool is that SEM is suitable for:

 Confirming uni-dimensionality of various indicators to a dimension / construct / concept / factor  Testing the suitability / provision of a model based on empirical data studied  Testing the suitability of a causal relationship between the model and the factors that built / observed in the research model.

 Confirming uni-dimensionality of various indicators to a dimension / construct / concept / factor  Testing the suitability / provision of a model based on empirical data studied  Testing the suitability of a causal relationship between the model and the factors that built / observed in the research model.

This study uses the techniques of analysis Regression Weight

This study uses the techniques of analysis Regression Weight

Regression weight in the SEM is used to determine how much influence on the relationship variables that theoretically exist.

Regression weight in the SEM is used to determine how much influence on the relationship variables that theoretically exist.

4. Result And Discussion

4. Result And Discussion

Data Normality

Data Normality

Further testing is to see the degree of normality of the data used in this study. This test is to examine the value of the skewness of the data used, if the value of CR on the skewness of data in the range between ± 2.58 or be at the 0.01 level of significant. Normality test results shown in Table 1.

Further testing is to see the degree of normality of the data used in this study. This test is to examine the value of the skewness of the data used, if the value of CR on the skewness of data in the range between ± 2.58 or be at the 0.01 level of significant. Normality test results shown in Table 1.

Table 1. Normality of data

Table 1. Normality of data

Variable

min

max

1.000

5.000

,550

2,367

-,571

-1,227

KL

.101

.924

,561

2,411

-,457

-,984

CSRDI

ROA

-.756

1.032

,184

,790

-,121

-,260

ROE

-1.499

1.375

-,481

-2,070

-,557

ROI

.051

9.048

,474

2,041

NPM

-3.463

2.211

,496

EPS

1.030

4800.000

-,393

KL CSRDI

Multivariate

skew

c.r.

kurtosis

c.r.

Variable

min

max

1.000

5.000

,550

2,367

-,571

-1,227

.101

.924

,561

2,411

-,457

-,984

ROA

-.756

1.032

,184

,790

-,121

-,260

-1,198

ROE

-1.499

1.375

-,481

-2,070

-,557

-1,198

-,255

-,549

ROI

.051

9.048

,474

2,041

-,255

-,549

2,135

-,635

-1,366

NPM

-3.463

2.211

,496

2,135

-,635

-1,366

-1,691

-,114

-,245

EPS

1.030

4800.000

-,393

-1,691

-,114

-,245

Multivariate

skew

c.r.

kurtosis

c.r.

9,618 4,514 Source: Secondary data were processed Evaluation is done by using the criteria of normality critical ratio value of skewness and kurtosis value. Where the value of the second ratio has a value smaller than the absolute value at 2.58, meaning that the data are normally distributed. From the data processing are shown in Table 4.7 appear that there is no value CR for skewness that are outside the range of ± 2.58. Thus, the data used in this research has met the requirements of the normality of the data, or it can be said that the research data was normally distributed.

9,618 4,514 Source: Secondary data were processed Evaluation is done by using the criteria of normality critical ratio value of skewness and kurtosis value. Where the value of the second ratio has a value smaller than the absolute value at 2.58, meaning that the data are normally distributed. From the data processing are shown in Table 4.7 appear that there is no value CR for skewness that are outside the range of ± 2.58. Thus, the data used in this research has met the requirements of the normality of the data, or it can be said that the research data was normally distributed.

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Structural Equation Modeling (SEM) Analysis

Structural Equation Modeling (SEM) Analysis

Analysis of Structural Equation Model (SEM) was performed to test the suitability and statistical tests. The results of data processing for a full analysis of SEM models shown in the figure below:

Analysis of Structural Equation Model (SEM) was performed to test the suitability and statistical tests. The results of data processing for a full analysis of SEM models shown in the figure below:

Notes for Model (Default model) Computation of degrees of freedom (Default model) Number of distinct sample 28 moments: Number of distinct parameters to 20 be estimated: Degrees of freedom (28 - 20): 8 Result (Default model) Minimum was achieved Chi-square = 4.499 Degrees of freedom = 8 Probability level = .810

Notes for Model (Default model) Computation of degrees of freedom (Default model) Number of distinct sample 28 moments: Number of distinct parameters to 20 be estimated: Degrees of freedom (28 - 20): 8 Result (Default model) Minimum was achieved Chi-square = 4.499 Degrees of freedom = 8 Probability level = .810

Figure 1. The Results of Structural Equation Model (SEM) Testing

Figure 1. The Results of Structural Equation Model (SEM) Testing

Based on Figure 1 indicates that our model has the goodness of fit is good, so that the model deserves. Testing the suitability of the model is summarized in Table 2. Based on calculations by the AMOS program for SEM models in this study, resulting indexes of goodness of fit as follows:

Based on Figure 1 indicates that our model has the goodness of fit is good, so that the model deserves. Testing the suitability of the model is summarized in Table 2. Based on calculations by the AMOS program for SEM models in this study, resulting indexes of goodness of fit as follows:

Table 2. Goodness of Fit Criteria

Table 2. Goodness of Fit Criteria

Goodness of Fit Index

Cut-off Value

The Results Of The Analysis

Evaluation Models


Cut-off Value


Evaluation Models

Chi-Square

< 24.32

4.499

Good

Chi-Square

< 24.32

4.499

Good

Probability

≥ 0.05

0.810

Good

Probability

≥ 0.05

0.810

Good

RMSEA

≤ 0.08

0.045

Good

RMSEA

≤ 0.08

0.045

Good


Cut-off Value


Evaluation Models


Cut-off Value


Evaluation Models

GFI

≥ 0.09

0.9995

Good

GFI

≥ 0.09

0.9995

Good

AGFI

≥ 0.09

0.983

Good

AGFI

≥ 0.09

0.983

Good

CMIN/DF

≤ 2.00

0.562

Good

CMIN/DF

≤ 2.00

0.562

Good

TLI

≥ 0.95

0.987

Good

TLI

≥ 0.95

0.987

Good

CFI

≥ 0.95

0.996

Good

CFI

≥ 0.95

0.996

Good

Source: Secondary data were processed These results indicate that the model has been modified acceptable and shows as a good structural equation model. Index of Chi-Square measurement, Probability, RMSEA, GFI, AGFI, CMIN / DF, TLI and CFI are within the range of expected values. Thus feasibility test SEM models already meet the entry requirements.

Source: Secondary data were processed These results indicate that the model has been modified acceptable and shows as a good structural equation model. Index of Chi-Square measurement, Probability, RMSEA, GFI, AGFI, CMIN / DF, TLI and CFI are within the range of expected values. Thus feasibility test SEM models already meet the entry requirements.

Hypothesis Testing

Hypothesis Testing

After all assumptions are met, the next will be testing the hypothesis, as proposed in the previous chapter. Testing the hypothesis of this study is done based on the value of Critical Ratio (CR) of a causality of the processing of SEM as in the table 4.12.

After all assumptions are met, the next will be testing the hypothesis, as proposed in the previous chapter. Testing the hypothesis of this study is done based on the value of Critical Ratio (CR) of a causality of the processing of SEM as in the table 4.12.

Table 3. Standardized Regression Weights

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Table 3. Standardized Regression Weights

232

KL

3-4

5-10

10
3-4

5-10

10