NEED OF CORPORATE SOCIAL RESPONSIBILITY IN BUSINESS SUSTAINABILITY FOR MEETING TODAY S COMPETITIVE WORLD: A CASE STUDY ON JYOTHY LABORATORIES PVT LTD

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1 International Journal of Mechanical Engineering and Technology (IJMET) Volume 9, Issue 1, January 2018, pp , Article ID: IJMET_09_01_075 Available online at ISSN Print: and ISSN Online: IAEME Publication Scopus Indexed NEED OF CORPORATE SOCIAL RESPONSIBILITY IN BUSINESS SUSTAINABILITY FOR MEETING TODAY S COMPETITIVE WORLD: A CASE STUDY ON JYOTHY LABORATORIES PVT LTD Vivek Narendran, Dr. Rethy B. Menon Department of Management and Commerce, Amrita School of Arts and Sciences, Mysuru, Amrita Vishwa Vidyapeetham, Karnataka, India ABSTRACT Every business is indebted to the environment in one or the other way, it is important for these businesses to give something back to the environment as a means of protecting and safeguarding it and thus the concept of Corporate Social Responsibility came into light. CSR can be understood as the continuing commitment of a business that behaves ethically and play a role in contributing to the development of the economy, while at the same time they improve the quality of life of their employees and their families along with the local community and the whole of the society.the aim of this paper is to indentify the level of CSR activities and Business Sustainability of Jyothy Laboratories Pvt Ltd and to find out its relationship. It is a survey study which used simple random sampling technique for collecting the data from the sample. The sample for this study consisted of employees of Jyothy Laborotories Pvt Ltd. Tools used for data collection includes likert type questionnare on Corporate Social Responsibility and Business Sustainabiity. The statistical techniques used are descriptive statistics and correlation. Findings of the study shows that there exist a postive correlation between the CSR activities and Business Sustainabiity. Key words: Bluetooth, Home automation, Micro controller, Smartphone Cite this Article: Vivek Narendran and Dr. Rethy B. Menon, Need of Corporate Social Responsibility in Business Sustainability for Meeting Today s Competitive World: A Case Study on Jyothy Laboratories Pvt Ltd, International Journal of Mechanical Engineering and Technology 9(1), 2018, pp editor@iaeme.com

2 Vivek Narendran and Dr. Rethy B. Menon 1. INTRODUCTION The concept of corporate social responsibility came into existence as a result of the first earth summit that convened in Brazil(1992), as a by-product of concerns being raised on the loss of rain forests and the effects of pollution on the environment. Though late in the conception of the idea, when the realization struck social, environmental and economic aspects of a business came to be assessed together. It was in the successor of the earth summit, the world summit for sustainable development(2002)that the requirement for governments and businesses to play an active role in this concern arose. Integration of social and environmental concerns of a business in their operations and interaction with their stakeholders is the basic concept of corporate social responsibility(csr).achieving a balance of the economic, social and environmental imperatives of the firm while meeting the expectations of the shareholders and stakeholders can be assumed as the CSR of a firm. Though an extra expense the business community has come to recognize the strategic value of having a responsible approach and started aligning their products and business relationships accordingly. The roots of CSR can be identified by looking at the growth of importance of sustainable development among those in the society. Sustainable development was defined by Brundtl and commission as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.nowadays corporate social responsibility and sustainable development go hand in hand to a certain extend as it is because of the introduction of corporate social responsibility that the social and moral responsibility that the businesses have towards the society and the environment got the backing of rules and regulations that have been brought into play. The days that CSR could be seen as an optional activity for a business concern have come to an end cause as a result of the many irresponsible business practices there has been a rise in huge movements that has been directed towards the need for CSR in the past few decades. The realization has come to the business concerns that good CSR practices are required for a business to become successful. The Times have changed were in now socially responsible companies gain more loyalty and adoration from both employees and customers rather than just what their profits are and what their products are. The idea that a business merely needs to keep in check with its product and its profits has changed, now it's more like how the business is making the profits and how the business is making use of this profits that impact them in the eyes of the society. So the investigator is interested to know the level of CSR activities and Business Sustainability and its relationship 2. LITERATURE REVIEW 1.Moir(2001)through his study on what do you mean by corporate social responsibility seeks to provide a broad understanding of what CSR is and why it has become necessary for businesses to adopt it. Noir through his paper talks on the various theories that have come to be part of CSR over the years and about the various new methods of assessing CSR that is being performed by organisations. The article comes to a conclusion that the importance of CSR is on the rise both from the point of view of the business and the society. 2.Garriga and Mele(2004) conducted a study on Corporate Social Responsibility Theories: Mapping the Territory identifies and studies the various theories and aspects of CSR that has been introduced over the years. The study is done to get a better picture of the current CSR practices that are in play. The study concludes with the identification of the main aspects of CSR that are being focused on currently editor@iaeme.com

3 Need of Corporate Social Responsibility in Business Sustainability for Meeting Today s Competitive World: A Case Study on Jyothy Laboratories Pvt Ltd 3. Sharma and Thakur(2016) for their study Corporate Social Responsibility initiatives: a comparative analysis of State Bank of India and HDFC Bank takes into consideration the CSR activities of two of the major banking institutions in the country for the purpose of studying them side by side. The article looks at the concept of CSR and what the concept of CSR means from the Indian perspective, this before listing the CSR initiatives of these institutions and studying them. The study came to a conclusion that even though State Bank of India enjoys higher earnings and market standing that lack in the CSR initiatives when compared to HDFC. The point that the authors made with the article is that there is still a scope for development in the field of CSR and steps towards this has to be taken by businesses. 4. Kaur(2014) in his study A comparative study of CSR practices of TATA steel and SAIL took a more simple approach to things. He analyzed the annual reports, sustainability reports and performance audits of both the companies to come to an understanding about the company's practices. Kaur came to the conclusion that even though SAIL is involved in more CSR initiatives the financial expenditure in terms of CSR is less compared to that of TATA steel. This article comes to a conclusion that CSR of a company can't be merely judged by looking at one or the other aspect. 5. Baumgartner(2013) made an attempt to study Managing Corporate Sustainability and CSR : A conceptual framework combining values, strategies and instruments contributing to sustainable development links the concepts of CSR and sustainable development. The article showcases how each part of management plays an important role in a company being able to attain sustainable development and thereby meet its corporate social responsibility. The paper concludes that both components go hand in hand and one cannot be attained without attaining the other. 3. DEFINITION OF VARIABLES Corporate Social Responsibility 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 (Lord Holme and Richard Watts,2000) Business sustainability is defined as managing the triple bottom line- a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet. (Margaret Rouse,2013) 4. OBJECTIVES To identify the level of Corporate Social Responsibility activities of Jyothy laboroatories Pvt Ltd. To find out the level of Business Sustainability of Jyothy laboroatories Pvt Ltd. To find out the relationship between Business Sustainability and Corporate Social Responsibility activities of Jyothy laboroatories Pvt Ltd. 5. HYPOTHESIS There exist a high level of Corporate Social Responsibility activities in Jyothy laboroatories Pvt Ltd. There exist a high level of Business Sustainability in Jyothy laboroatories Pvt Ltd editor@iaeme.com

4 Vivek Narendran and Dr. Rethy B. Menon There exist a positive relationship between Business Sustainability and Corporate Social Responsibility activities in Jyothy laboroatories Pvt Ltd. 6. METHODOLOGY A survey study was conducted to understand the CSR activities of Jyothi Private Limited. The study was conducted with a sample of employees of the company with the use of questionnaire as the tool for data collection. Simple random sampling technique was administered. The statistical techniques used for the study are descriptive statistics and correlation. Tools Used 1. Questionnaire on CSR activities : This tool is a 5 point likert type questionnaire with 25 statements ranging from strongly agree,agree,undecided,disagree and strongly disagree with scoring of 5,4,3,2,1. The components included under this tool where company activities, employee involvement and company roots and beliefs when it comes to Corporate Social Responsibility. 2. Questionnaire on Business Sustainability : This tool is also a likert type questionnaire with 5 points, it consisted of 25 statements covering areas like Sustainability policies, environmental and social norms and guiding methods in connection to sustainability Analysis and Interpretation 1. To find out the level of Business Sustainability in Jyothy laboroatories Pvt Ltd. Table 1 Descriptive Statistics Business Sustainability Descriptive Statistics Knowledge Management Mean Median Mode 91 Std. Deviation Skewness.168 Kurtosis The results shows that the mean values is and standard deviation is which shows that the business is running efficiently and it as at high level. 2. To find out the level of Corporate Social Responsibility involvement of the company Table 2 Descriptive Statistics Corporate Social Responsibility Descriptive Statistics Knowledge Management Mean Median Mode 95 Std. Deviation Skewness Kurtosis editor@iaeme.com

5 Need of Corporate Social Responsibility in Business Sustainability for Meeting Today s Competitive World: A Case Study on Jyothy Laboratories Pvt Ltd Table 2 shows that the corporate social responsibility activities are running at a high level with mean score and standard deviation To find out the relationship between Corporate Social Responsibility and Business Sustainability CSR Sustainability Pearson Correlation Sig. (2-ailed) N Sig. (2-ailed) N Pearson Correlation Table 3 Correlation CSR Sustainability Table 3 reveals that there exists a positive relationship since the p value is at 0.01 level of significance. This proves that there exists a positive relationship between Business Sustainability and Corporate Social Responsibility activities in Jyothy laboroatories Pvt Ltd. Tenability of the Hypothesis All the three hypothesis are completely accepted because the results shows that there exists a high level of corporate social responsibilities and business sustainability. Results also proves that there is positive relation between these two variables at 0.01 level of significance. 7. SUGGESTIONS Practice transparency: Companies that are open and transparent will be able to gain the trust of society. It gives the message that the company values social responsibilities.by gaining the trust, the customer loyalty can be enraged which ultimately result in the long run survival of the company. Support local community Working with your local community can be done through a local charity work, sponsoring events, organising environmental clean up events and other community related projects. It can bring a wide range of benefits for the organisations By proving commitment to the community it is sure that it will result in the wide acceptability of the society towards that company and enhance the reputation and inturn will result in the business sustainability Role of the Leader in CSR activities : The decisions related to CSR activities is taken by the top management. So the success of these activities depend upon the quality and competency of the leader of the company. The leader of the company has to lead the charge with regards to social responsibility to make it a core activity of the company. Build a community: To build a community resources should be shared and this leads to collaborative problem solving. Nowadays all most all companies is giving importance for social responsibility and so it is vital to come up with innovative ideas to be unique in providing CSR activities and at the same time that will make human settlements self sufficient to reduce the impact on environment. Then only it becomes easier for a company to ensure business sustainability. Educate all the employees of the firm about the need and requirement for sustainability because they form the major human resource and they are considered as the main asset of any organisation editor@iaeme.com

6 Vivek Narendran and Dr. Rethy B. Menon Protecting our environment is the most important thing which we can do to the upcoming generation. Manufacturing products which is of non toxic and degradable materials only. Education initiatives of the company should be in a way that all those in need will be able to gain assistance. Make an attempt to know the requirement and then provide the required help rather than doing what the company thinks is best. Give more importance for activities that the society actually needs. For example providing education for drop outs and transgender group, making available drinking water facilities, providing employment opportunities through vocational training especially for down trodden and women, and all those in need. Rather just mere providing of funds be more involved in the activities as a company as whole. 8. CONCLUSIONS At this crucial point where the world is in need of more initiatives by us humans to continue to persevere the environment and society where we live, this study is dealt with the understanding that as a part of their Corporate Social Responsibility and for the purpose of attaining a level of Business Sustainability. The study which was conducted by using survey as a tool and the employees of the company as the sample for the study came to the concious conclusion that both Corporate Social Responsibility and Business Sustainability go hand in hand with one another. REFERENCES [1] Lord Holme and Richard Watts,Making Good Business Sense,2000 [2] Margaret Rouse, [3] [4] Corporate Social Responsibility - Issues and Challenges in India, IJRFM Volume 3, Issue 2 (March2013) (ISSN ) [5] Rio Earth Summit-the United Nations, [6] [7] [8] what do you mean by corporate social responsibility Lance Moir 2001 [9] [10] [11] Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility, Sankar Sen and C. B. Bhattacharya,2001 [12] WBCSD (1999) Corporate Social Responsibility, World Business Council for Sustainable Development [13] Clarkson, M.B.E. (1995) A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review [14] Frederick, W.C. (1994) From CSR1 to CSR2 The Maturing of Business and Society Thought [15] Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause Philip Kotler, Nancy Lee,ISBN: ,Dec 2004 [16] Dr. Pooja Deshmukh, Corporate Social Responsibility and Education Sector: Issues and Remedies. International Journal of Management, 8(1), 2017, pp editor@iaeme.com

7 Need of Corporate Social Responsibility in Business Sustainability for Meeting Today s Competitive World: A Case Study on Jyothy Laboratories Pvt Ltd [17] Dr. Vidhi Bhargava and Dr. Nilmani Tripathi, Corporate Social Responsibility and its Implication In India. International Journal of Management, 7 (3), 201 6, pp [18] Saha, V. and Sharma, A. Investigation of Customer Loyalty and Customer Satisfaction with respect to Corporate Social Responsibility: A model for the Indian Banking Industry. International Journal of Management (IJM), 6 (9), 2015, pp [19] Dr. Takeshi Nakayama, Corporate Social Responsibility (CSR) and Creating Shared Value (CSV) of Smes In Japan. International Journal of Management, 7 (4), 201 6, pp editor@iaeme.com