Recent Trend of Corporate Social Responsibility(CSR)in India and Japan

1. Recent Trend of Corporate Social Responsibility(CSR)in India and Japan Yukiko Hashimoto , Mahesh Thakur KibiInternational University ,Japan E-mail:yhashimt@kiui.ac.jp

2. 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 factorsfor 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.

3. Back Ground of the study • 812 JapaneseCompanies 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

4. 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.”

5. 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

6. 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 arestill to be resolved.

7. 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)

8. Drivers for CSR

9. 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.

10. 3 steps of CSR（NRI2011） • 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.

11. 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?

12. 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.

13. 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 .

14. 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 )

15. 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

16. Socially Responsible company Table 3

17. Companies’ Involvement in Community Development: Table 4

18. Structure of CSR Model

19. Impact on local economy Table 6

20. Improvement of social conditions of the community

21. Employee volunteering for community

22. 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.

23. Employee volunteering(2010) N=India 50 Japan 30

25. CSR pyramid Japan India 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 ?

26. Thank you for listening! • This study was supported by JSPS Kakenhi Grant Number 23402051.