Recent Trend of Corporate Social
Responsibility(CSR)in India and
Japan
Yukiko Hashimoto , Mahesh Thakur
Kibi International University ,Japan
E-mail:yhashimt@kiui.ac.jp
Content
• Objective: to compare CSR in Japan with that of India
to identify what factors make a big impact to make the
better society.
• Methodology: Questionnaire, interview
• Key words: community oriented, community participation,
social development, evaluation
• Result: community commitment and human rights are
more important factors for CSR in India while compliance
and consumer satisfaction are more important among
other factors in Japan.
• Correlations are higher among community commitment
and employee volunteers with company overall image in
India.
Back Ground of the study
• 812 Japanese Companies have entered in
Mumbai market in 2011, three times as of 267 in
2006. The number is increasing .
• Many multinationals may face problems if they
don’t know the concept of CSR in India.
• The concept of CSR and expectations are different
by countries and regions.
• Japanese companies who want to enter Indian
market need information on how to conduct
acceptable, strategic and sustainable CSR in India
Definition of Corporate Social
Responsibility (CSR)
• World Business Council for Sustainable
Development defines “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.”
Research objective
• *To prove a hypothesis" community perception is
most important evaluation indicator for CSR in
developing countries like India.”
• Responsible business is significantly influenced by
the community where the enterprises or firms
are located(Panthong 2010).
• Community commitment is one of the core
elements of ISO 26000
Social development in India and CSR
• MDGs: a world with less poverty, hunger and
disease, greater survival prospects for mothers
and their infants, better educated children,
equal opportunities for women, and a healthier
environment’ (UN, 2006: 3)
• 30% live under poverty line. Only 25% has access
to safe water, maternal mortality ratio is 4/1000
• Child labour, HIV/AIDs and gender discrimination
are still to be resolved.
UNDP and Gov. of India intentions
• To achieve MDGs and its social development,
Gov. of India obliges public companies to
reinvest 2～5% of net profit in CSR and extends
to all companies including multi-nationals.
• Among 26 Japanese companies operating
business in India,12 answered they have done
some CSR and 14 said none(Japan Foundation
survey 2008)
Drivers for CSR
35
concept and drivers of CSR 2010
30
India
25
Japan
20
15
N=33 India
N=27 Japan
10
5
0
Philanthropy
improving better work creating jobs consumer complience
social isssues relationship
satisfaction
Philanthropy to strategic (Japan)
• Strategic CSR: CSR activities which closely relate
with profit making and solving social issues.
Corporate Japan is conscious of Environmental
issues.
Since April 2009, tax exemption for low emission
vehicles, ‘Eco points’ are given to consumer
durable electric appliances. Consumers want
more earthquake proof building and radiation
free veg. and foods, since consumer satisfaction
is one of the most important CSR drivers in Japan.
Companies are trying to meet the consumers needs.
3 steps of CSR（NRI 2011）
• Zone 1:
Good corporate citizenship, corporate governance
and compliance are the most important : Zone I
• Zone II ：
beneficial for society, but not directly related with
business. （Philanthropy )
For example, the company contributes
fund raising to the social improvement such as
better education for deprived children
and environmental protection.
Zone III
• The Zone III is the strategic CSR: social innovation
through business activities.
• CSR must be inside business and company must
have strategic intent which are beneficial for both
society and company profit, based on the
win-win situation.
Social enterprise and social entrepreneurship
Cause related marketing, BOP marketing.
Doing more with spending less. How?
Survey in Ranjangaon, Pune, India
• Pune is the oldest city with extensive
Industrial development. The Maharashtra
Industrial Development Corporation (MIDC)
has acquired land of Ranjangaon for industrial
development from villagers. The villagers have
received the money but their livelihood issues
are still not addressed.
Objectives of the survey
• To study the community perception of corporate
companies in Ranjangaon
• To Study the level of community participation in
planning and conducting CSR.
• To compare the various companies’ effectiveness
involved in the study.
• To identify the key to successful CSR .
Methodology
• Companies involved in the area
•
•
•
•
•
Harita( Indian company)
Apollo ( Indian Company)
LG( Korean Multinational Company)
Pepsico ( American Multinational Company)
Whirlpool ( American Multinational Company)
• Questionnaire : 100 household
• Interview: 10 community leaders
• Period of the study:- from June to December,
2011 (6 months )
parameters
• if they pay attention to its Social Responsibilities
• if Building and Maintaining positive relationship with
the community members
• Structure of CSR
• Impact on local economy(Local Economic
empowerment)
• Company CSR program has improved the Social
conditions of local Community
• Employee Involvement in social activities
Socially Responsible company
Table 3
70
60
50
40
30
20
10
0
Harita
Apollo
PepsiCo
LG
Whirlpool
Very Poor
1.2
5.7
8
11.1
8.7
Poor
4.3
15.6
14
18.3
14.5
Average
10
36.2
28
39.2
28.7
Good
24.5
21.2
20
18
32
Excellent
59.8
21.1
29.3
13.2
15.3
Companies’ Involvement in
Community Development:
Table 4
60
50
40
30
20
10
0
Harita
Apollo
PepsiCo
L.G
Whirlpool
3
5.3
9.3
8.7
19.1
Poor
4.5
23.3
29.1
28.3
27.2
Average
17.7
13.7
12.5
14.7
19.2
Good
20.3
35
24.7
24.2
26.7
Excellent
54.3
22.6
24.2
24
7.6
Very Poor
Structure of CSR Model
Table 5
70
60
50
40
30
20
10
0
Very Poor
Poor
Average
Good
Excellent
Harita
2.2
2
12.2
23.6
60
Apollo
1.6
22.2
29
26.8
20.4
PepsiCo
3.6
49.6
15.8
17.4
13.6
LG
3.4
47.2
15.6
17.8
16
Whirlpool
5.6
51.2
34.6
6.6
4.6
Impact on local economy
Table 6
90
80
70
60
50
40
30
20
10
0
Really Not good
Not Good
Average
Good
Excellent
Harita
Apollo
0
1
1
19
79
0
3
1
46
50
PepsiC
o
0
3
1
46
50
LG
0
2
29
19
50
Whirlp
ool
0
3
27
15
55
Improvement of social conditions of
the community
60
50
40
30
20
10
0
Harita
Apollo
PepsiCo
L.G
Whirlpool
3
5.3
9.3
8.7
19.1
Poor
4.5
23.3
29.1
28.3
27.2
Average
17.7
13.7
12.5
14.7
19.2
Good
20.3
35
24.7
24.2
26.7
Excellent
54.3
22.6
24.2
24
7.6
Very Poor
Employee volunteering for community
Table 5
70
60
50
40
30
20
10
0
Very Poor
Poor
Average
Good
Excellent
Harita
2.2
2
12.2
23.6
60
Apollo
1.6
22.2
29
26.8
20.4
PepsiCo
3.6
49.6
15.8
17.4
13.6
LG
3.4
47.2
15.6
17.8
16
Whirlpool
5.6
51.2
34.6
6.6
4.6
Findings
• the parameters don’t have significant correlations each other
but Impact on local economy(Local Economic empowerment)
and Philanthropy and voluntary Work (help in natural
calamities, social responsibilities in local area ) are slightly
significant (pearson’s =0.398)
• Building and Maintaining positive relationship with all the
community members and Pay attention to its social
responsibilities are slightly correlated(pearson’s=0.327)
• From the focus group discussion, The qualified and trained
CSR staff is essential to develop sustainable CSR. Harita (TVS
Group) Company has MSW Degree holders who specialized in
community development.
• Community perception and community oriented CSR Model is
keys to successful CSR.
Employee volunteering(2010)
Reason to volunteer
India
India
Japan
Japan
48
48
39
36
N=India 50
Japan 30
22
19
35
2
2
1
12
3
5
21
25
10 11
3
1
economy and
policy
India
Social issues
*many social
*growing economy issues: poverty,
*government
gender, child
guidelines to
labour, HIV/AIDs
encourage CSR
environment,
infrastructure
*recession
•social security
issues are
Japan government
responsibility
* Higher
consumer tax
*aging * low
birthrate *child
and old people
been abused
*young social
drawers
Historical back
ground
CSR structure
Most Important
Stake holder
*bottom-up and
participated CSR
long history of
philanthropy, but with professionals
and grass-roots
changing from
NGOs
charity to
strategic
More employee
volunteering
*Community
participation
*Employee
satisfaction
*short history of
human rights,
*mutual help
* less donation
culture * less
volunteering
*top-down, *less
CSR specialist
*Customer
satisfaction
*Share holder
*less NGO
collaboration
CSR pyramid
Japan
Philanthropy
India
philanthropy
Ethical
Responsibility
Ethical Responsibility
Legal Responsibility
Legal
responsibility
Economic Responsibility
economic
responsibility
India: CSR is expected to share some of the government
responsibility of social development, social responsible business
Japan: CSR is a part of improving the bland image , strategic and
sustainable CSR
Which has more impact to the social or community ?
• Thank you for listening!
• This study was supported by JSPS Kakenhi
Grant Number 23402051.