Study on corporate social responsibility in central public sector enterprises
Student name: Mr Ashwani Gupta
Guide: Dr Umesh Gulla
Year of completion: 2012
Host Organisation: MMTC Limited, New Delhi
Supervisor (Host Organisation): Ms Venita Solomon
Abstract: During the past decade, Corporate Social responsibility (CSR) gained momentum both in
academic and business world.Government of Indiais playing an active role in promoting CSR in
the Indian business world. The Government of India has made CSR mandatory for Central
Public Sector Enterprises. By examining the case of CSR in CPSEs, this study looks at how
effective this approach has been. Two central questions are addressed. First, what is the present
status of CSR in CPSEs after two years of Department of Public Enterprises (DPE) guidelines on
CSR? Second, what are the key highlights of CSR activities done by CPSEs?
The study is divided into three parts. The first part three areas are reviewed--literature on CSR,
DPE guidelines and UN Global Compact principles. The second part highlights some
quantitative facts about CSR in CPSEs whereas the third explores the CSR activities of CPSEs
qualitatively.The conclusion sums up the major findings and analysis of the study.
As per DPE guidelines, about 61 per cent of the total 248 organizations have to mandatorily take
up various CSR initiatives.The findings of the survey place education, health and community
development as three of the most popular areas of intervention for companies as part of their
CSR initiatives. The survey also reveals that CPSEs have now shifted to project-based approach
towards CSR, from mere one time donation practice prevalent earlier.
A qualitative survey has been conducted during the course of the study. The objective of the
survey is to provide an understanding of the role played by central public sector undertakings
(CPSUs) in CSR domain and their perceptions about it. The comprehensive survey, carried out
on behalf of MMTC Ltd, used semi-structured questionnaire and covered 8 CPSEs, 2 Maharatna,
2 Navratna, 2 Miniratna and 2 other enterprises. The organizations covered were from various
sectors including power, oil and gas, cement, construction, metals and mining industries.
The survey highlights that most CPSEs implement CSR projects through their own efforts with
the help of local community, in rural areas panchayat, but now with more and more CPSEs
involving NGOs for their CSR activity after DPE guidelines. Almost all respondents see CSR
initiatives as a catalyst in bringing about positive social change.
Through a peer review process, Maharatna companies and oil and gas companies emerged as the
leading company with active CSR initiatives, distantly followed by few Navratna companies.
It is found that DPE guidelines on CSR vary with respect to the International and academic CSR
to a large extent and restricted to social perspective only. The funds to be mobilized as per DPE
guidelines for FY 2011-12 would be in the range of INR 720.53 Crore to 2474.37 Crore. Among
CPSEs, CSR is still a new concept except Maharatna and Navratna companies. In terms of
reporting, CSR still has a long way to go. Even after 2 years of mandatory DPE guidelines there
is wide variation among CPSEs in terms of approach towards CSR.
In the end some suggestions are provided based on the study conducted. Most important among
them is coordination among CPSEs for CSR.
