final eng project 1

8/8/2019 Final Eng Project 1

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Report on

NGO-CORPORATE RELATION

Submitted by

Abhishek V BL.EN.U4ECE09006

AnkitaShukla BL.EN.U4ECE09012

Arun Augustine BL.EN.U4ECE09015

Harish B BL.EN.U4ECE09018

Abhilash B BL.EN.U4ECE09021

LavanyaM.S

NithishSalankey

BL.EN.U4ECE09069

BL.EN.U4ECE09090

Submitted to

Asst. Professor, Ms. Beena T Nair

Department of English

Amrita School of Engineering, Bangalore

Submittedon

8th October, 2010

INFORMATIVE ABSTRACT:This report is a study on how NGOs and

corporates relate themselves to each other, the benefits enjoyed by them from

this relationship and also about the publics awareness and knowledge about

these relations.


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ACKNOWLEDGEMENT

We would like to express our sincere gratitude to our Associate Dean, Prof. S.G. Rakesh, and

the entire management for expressing confidence in us and providing us an opportunity to

undertake such a project.

We would like to thank our Project Advisor, Asst. Professor Beena T Nair. Without her

ample support and co-operation, this endeavour wouldnt have materialized.

During the course of this project, we met representatives of NGO and Corporate companies

and got their suggestions on our topic. We thank all of them, who showed courtesy to spare

few minutes of their valuable time answering our queries patiently and thus helping us

immensely in conducting the analysis.

Our friends have always been source of encouragement for us. We thank all of them for the

immense moral support they have given us.

Huge thanks also to our immediate families for the faith they had placed on us and for the

constant inspiration they have provided.


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DESCRIPTIVE ABSTRACT

This project is an analysis of Corporate-NGO relations in Bangalore. The objective of the survey

is to determine how effective corporate-NGO collaboration is. It also aims to know how aware

the public and the corporate employees are about NGOs associating themselves with corporate.

Case studies are made each for corporate and NGOs and their employees have been surveyed.

The corporates taken are WIPRO and IBM while the NGOs studied are CRY, SMILE and AZIM

PREMJI FOUNDATION.

Under the process the Corporates and NGOs were interviewed, their opinions are analyzed and

inferences are drawn, compared it with the survey answers of their employees. People were

surveyed for their awareness about the company projects, the activities of the NGOs it supports

and their willingness to volunteer for such social causes. The survey targets different age groups,

companies and NGOs for a thorough study. Pictorial representations of their responses are

presented in accordance to the survey results

The conclusion is based on the results of the survey and the views of the members of the team

providing an insight to the perspective of the masses towards Corporate-NGO relations.


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TABLE OF CONTENTS

Contents

Page no.

1. Introduction

2. Background

2.1

2.2

2.3

3. Survey Analysis

3.1 Methodology.

3.2 Analysis of field work.

3.3 Sample Questionaire.

3.4 Interview Scripts

3.4.1 Interview with IBM.

3.4.2 Interview with WIPRO.

4.


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INTRODUCTION

Corporate Social Responsibility

Corporate Social Responsibility is the voluntary role and contribution on

the part of the business community towards a better social and environmental

development, which is beyond their investment to organisational development.

The business organisations can be lead by large multinationals and for small,

locally based businesses. While, the actions on the part of business organizationshere to be ethically bound to its stakeholders, who include customers,

owners/investors, government, suppliers and competitors. Corporate Social

Responsibility consists of a wide-range activities and programs that involve

businesses looking at how to improve their social, environmental and local

economic impact, their influence on society, social cohesion and human rights,

and fair trade. Key areas of concern are environmental protection and the well

being of employees, the community and civil society in general, both now and in

the future. It refers to the comprehensive approach that a corporation takes to

meet or exceed stakeholder expectations beyond measures of revenue, profit

and legal obligation. . Essentially, CSR is the deliberate inclusion of public

interest into corporate decision-making, and the honouring of a triple bottom

line: people, planet, profit.

Non-Governmental Organizations and Corporate Social Responsibility

A non-governmental organization (NGO) is a legally constituted

organization created by natural or legal persons that operates independently

from any government and a term usually used by governments to refer to

entities that have no government status. In the cases in which NGOs are funded

totally or partially by governments, the NGO maintains its non-governmental

status by excluding government representatives from membership in the

organization. The term is usually applied only to organizations that pursue some

wider social aim that has political aspects, but that are not overtly political

organizations such as political parties. Unlike the term "intergovernmental


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organization", the term "non-governmental organization" has no generally

agreed legal definition. In many jurisdictions, these types of organization are

called "civil society organizations" or referred to by other names.

The corporate social responsibility blends the objective of social development and

environmental protection thorough ethical effort. Many non-governmental organizations in

India are engaged in social development and environmental development activities. These

organizations are good enough to support the industrial development by ensuring community

participation the developmental process. The concept of corporate social responsibility is

underpinned by the idea that corporations can no longer act as isolated economic entities

operating in detachment from broader society. Corporate Social Responsibility to be looked

upon as mutual support programs that ensure development of community near by the

industrial area with the expansion and development of the industrial organizations.

The community today needs external agency intervention in the alleviation of many

social problems like poverty, health, unemployment, community education, homelessness

and eco development programs. By looking upon the needs of the community, the

organization gets an opportunity to understand the social needs of the people and it will

enable them to intervene into such social issues and finding solution to the many basic needs.

It develops greater trust and confidence on the community on the business organization effort

in their real development. Integrated community investment strategies align internal

community-related issues and link business goals with community needs. Here the role of

Non Governmental Organizations can be better realized. The Non Governmental

Organizations existing within the industrial location and closer to the community can better

act as moderators and facilitators in the realization of their social need and better

environmental protection. The industrial expansion is a threat to the people living nearby and

it invites protest from many like consumer, investors, activist groups, government regulators

and other stakeholders. To develop a better rapport with the community in the

implementation of the developmental activities the Non Governmental organizations can play

better role with the industry and community. They can help the industrial management in

convincing the expansion program to the community and there by develop a proactive and

social environmental and industrial development policy. Lower operating costs, Enhanced

brand image and reputation, reduced regulatory oversight, Product safety and decreased

liability, improved financial performance etc are the benefit to the organization. The benefit


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of Corporate Social Responsibility not only for the community and organization but also for

the employees. The Research demonstrates Corporate Social Responsibility initiatives have a

positive impact on employee morale, motivation, commitment, loyalty, training, recruitment

and turnover. Benefits in these areas have been found to improve the bottom line of

companies. A Surveyconducted across the globe, involving over 25 countries found that

employees felt greater loyalty, satisfaction and motivation when their companies were

socially responsible.


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WORKING METHODOLOGY

For better functioning and efficient results, we split up into three subgroups, two

of the subgroups had two members each and the remaining subgroup had three

members.The subgroups consisting of two group members each dedicated

themselves for each of the companies we based our report/study that is one

group did everything that was required for IBM, and the other for WIPRO . The

subgroup that went for the IBM interview comprised of Abhishek V and Arun

Augustine, whereas the subgroup that went for the WIPRO surveys and interview

consisted of Abhilash B and Harish B. The third subgroup dedicated itself to the

NGOs based on our report, it consisted of AnkitaShukla ,Lavanya M.S and Nithish

S.

In the IBM interview, Abhishek and Arun conducted their interview on

22ndSeptember. They went to the IBM office located on ITPB, Whitefield, and

interviewed Mrs Suneeta Singh, after getting her interview they proceeded to the

cafeteria of the company building to get the public survey done.


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AWARENESS OF THE PEOPLE:

A companys reputation depends not only on the profits that it generates but also on its NGO

relation programmes that it takes up. It can be an aid to recruitment and retention, particularly

within the competitive graduate student market. Potential recruits often ask about a firm's

CSR policy during an interview as having a comprehensive policy can be an advantage. It can

also help improve the perception of a company among its staff, particularly when staff can

become involved through payroll giving and fundraising activities or community

volunteering.

From the public survey conducted, it has been inferred that 34% of the people were not aware

of corporate/company relations with an NGO,where as 66% of them were aware of corporate

companys relationship with an NGO.


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BENEFIT FOR SOCIETY:

NGOs carry out various programmes to benefit the society, these include, childrenseducation, fight against child labour, women empowerment, free health services, eco

awareness, protection of rights of backward classes, NGO run educational institutions,

disaster relief services, fund raising events, animal rights protection, etc.

From the public survey conducted, it has been inferred that 69% of people feel that NGOs

work for the benefit of the society, 1% people feel they dont work for the benefit of the

society and the remaining 30% of the people are not sure about their social benefits.


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REASON FOR NGO- CORPORATE RELATIONS:

The main aim for a companys relation with an NGO need not necessarily be only for thewelfare of the society, it may arise due to the companys need for promoting itself to the

public, or it can be a means to showcase to the public.

From the public survey conducted, it has been found that, 45% of the people feel that the

NGO-CORPORATE relation aim for the welfare of the society, 41% of the people feel that

these relations aim for mutual benefits for both the NGO and the corporate company, 4% of

the people feel that its only for promoting the company/ corporate brand names and the

remaining 10% are not sure as to the real reason behind the tie up.


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UTILIZATION OF FUNDS BY NGOs :

From the public survey conducted, it has been inferred that 44% of the people feel that the

NGOs utilize the funds appropriately, where as 14% of the people feel that funds provided to

the NGOs are misused,the remaining 42% of the people are not sure about it.


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ENDORSEMENTS:

From the survey conducted, it has been inferred that ,56% of the people feel that the NGOS

do justice to the endorsement deals provided to them by the companies,32% of the people

feel that NGOs do not do justice to the endorsement deals provided to them, and the

remaining 12% of the people remain unsure about it.


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SUPPORT OF AN NGO:

From the survey conducted it was inferred that only 47% of the people support an NGO ,theremaining 53% of the people do not.

Of the 47% who support an NGO , 57% of the people support it by giving donations, 47% of

the people support it by carrying out voluntary work for the NGO, and the remaining support

the NGO by taking up the issues of the NGO in public.


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COMPANY BENEFITS:

From the survey conducted it was deduced that ,53% of the people feel that the brand valueof the company is enhanced by its association with an NGO, as compared to 4% of the people

who feel that the brand vaue of the company is notenhanced by its association with an NGO,

the remaining 44% are not sure about it.


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TAX BENEFITS:

From the survey conducted, it was inferred that only 33% of people are aware of the tax

benefits enjoyed by the company due to its financial support to NGO, the remaining 67% of

the people are unaware of the benefits that their company enjoys from its relations with an

NGO.


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INTERVIEW WITH IBM

Name of the interviewee: SUNEETA SINGH

Name of the organisation: IBM INDIA

Designation: HR MANAGER, BANGALORE

Name of the interviewer: Arun Augustine and Abhishek V.

1. How many NGOs is your company associated with?

A) We are associated with a couple of NGOs and NGO initiatives.

2. Which are the NGOs your company is associated with? Please name a few?

A) CRY and SMILE, which act for the welfare of children .

3. What kind of support do you give them? And how?

A) Well, we had the opportunity to assist them in their initiatives in the form of financial

help as well as physical help by assisting them as volunteers.

4. What is your main aim in collaborating with NGOs?

A) To serve for the betterment of society in our own capacity as we are among those who

can assist them in their initiatives.


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5. What benefits does your company enjoy with these relations?

A) I cannot answer that question, however my Organization encourages in extending a

helping hand by these initiatives .

6. Does your company involve its employees in such NGO issues?

A) Yes, it does pretty well.

7. Are your employees directly or indirectly affected by your tie-ups with an NGO?

A) I dont think so or at least I have not come across such an incident which I could

explain here.

8. How would you rate your companys collaboration with an NGO?

A) I rate Very Good because I see lot of NGO associated with my Organization.

9. What aspects of an NGO you consider while collaborating with it?

A) NGO's whose vision is a world where people collaborate from business, public and

NGO sectors so children no longer die from preventable causes through lack of access to

simple medicines and the knowledge of how to use them.

10. Do you believe that your companys relation with an NGO is a win-win situation for it?

A) Not necessarily. This is a pure help from our side and as a result itCascades to benefit the

people who are in need of them.


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11. How do you spread awareness about NGO issues?

By Social blogging

By word of mouth

By intra company communication so forth.


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INTERVIEW WITH WIPRO

Name of the interviewee:

Company: WIPRO

Designation:

Name of the interviewer:

1. How many NGOs is your company associated with? Which are they?

A few like Azim Premji Foundation and WIPRO cares

2. What kind of support do you give them? How?

We support them in any way we can. Mostly by providing financial aid,

volunteering ourselves and making people aware of their issues by

conducting special EMPLOYEE AWARENESS programmes in which we inform

our new employees about the companys social programmes .

3. What is your main aim in collaborating with NGOs?

We aim for the betterment of the society through social activities like

education of children (Azim premji foundation & wipro cares) and also

sustainability of our planet through programmes like ECO-EYE and DIVERSITY.

4. What benefits does your company enjoy with these relations?

We do not look for benefits from them.

5. Does your company involve its employees in such NGO issues?

Yes,they serve them financially as well as by volunteering in it.

6. Are your employees directly or indirectly affected by your tie-ups with an

NGO?


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Yes, they get a sense of pride, for having taken part in an activity which aims

for the welfare of the society.


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APF is a socio-technical NGO whose main aim is to provide education to

the rural class community and also to reduce the illiteracy rate in the

country. Target areas are selected based on its match with APFs

organizational objectives.

4. What benefits does your NGO enjoy with these relations ?

Companies are increasingly getting involved in social issues through their

Corporate Social Responsibility model, either with a philanthropic

perspective in CSR 1.0 or for business sustainability in CSR 3.0. Over

the past decade, companies have shown more interest in environmental

restoration and community centered projects. For APF the core issues

are the same upliftment of the rural poor through educational

programmes. Thus for APF the direct benefits are increase of its outreach

programme,

dissemination of its outlook and approach on rural livelihoods for

widespread adoption and policy advocacy, recognition amongst corporate

agencies regarding its work and genuine improvement in rural livelihoods.

6. How would you rate your NGO's collaboration with a company?

AFPROs project models are quite simple, being focussed on low-cost,

appropriate technology for land and water resources management, as

well as associated rural livelihood options. Success rate at the field

levels are very high, due to AFPROs long standing institutional

knowledge on both site-specific suitable interventions as well

networking strength with local NGOs and community level process

orientation. AFPRO has on its payroll or call, specialist staff such

engineers and technical specialists with a post-graduate or higherqualification. As a non-profit and yet self-reliant organization,

AFPRO charges for its services in order to meet its institutional

costs

7. What aspects of a company you consider while collaborating with it

? AFPRO adopts an open approach to companies, assessing the interests

of the specific corporate concerned and without taking a pre-judicial

stand. Based on the requirements of the corporate, a judgment is made


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whether there is a match between AFPROs organizational values and the

project envisaged by the corporate. AFPRO usually finds that most

corporates are limited in scope of CSR activities to very basic

environmental conservation related activities or direct benefit to

individuals. Besides there is strong focus on a business benefit from

CSR and/or on philanthropic activities with immediate short-term

visibility. AFPRO attempts to persuade corporate agencies to adopt its

model of natural resource management and promotion of rural

livelihoods, or promote interventions its area of core competencies

for long term benefits in a chosen area or region. Visibility for such

projects are based on the impact, that can be observed only after the

completion of a particular gestation period. Corporate agencies like

SDTT, IKEA, ITC Ltd and Ultra Tech Ltd are using AFPROs model of

interventions for the benefit of marginal communities.

10. Do you believe that your relation with a company is a win-win

situation for you ? Once, there is understanding on mutual values of

the Company and AFPRO, with core objectives of AFPRO in relation to

its socio-technical orientation and targeted beneficiaries, it is a

win-win situation for AFPRO. For over forty years since its inception,AFPRO has worked primarily with international funding agencies, and it

is a great sense of pride and satisfaction that Indian business

organizations are directing money from their earnings towards the

benefit of lesser privileged in the country. It becomes a greater

accomplishment because, when corporate agencies work with AFPRO, they

enable people with improved resources as well as knowledge and skills

for sustainable improvement in livelihoods and quality of life. Thus

corporate agencies and AFPRO both get the opportunity to work on

genuine value addition for national development, based on a)

environmentally friendly approaches, b)improved rural livelihoods and

c) serve the poor and marginal rural communities.


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Human Resources

NGO-business relationships are proving beneficial to human resource

concerns for two particular groups: those people directly hired by

corporations, and those working with subcontractors.

Direct employees are being trained by NGOs on topics and in skills

that have been developed by NGOs over many years. Sometimes this is in

skills in working with the poor and marginalized and with people in

specific communities. Language and culture present barriers not just

for individuals, but for entire groups of people that the business

sector often has trouble working with; often the problem is that

corporate employees simply do not understand how to speak with people

outside of their own social group. Low-income community-based NGOs are

teaching bankers in the U.S. about informal barriers the poor face,

such as imposing formal bank branches that are physically

intimidating. And PACT, an international development NGO, provides its

expertise to Cabot, an American chemical company, in developing

community programs in Southeast Asia; PACT's presence also gives the

programs a higher degree of credibility and connects Cabot to PACT'sown community network.

NGOs are proving adept at identifying and developing people to work in

business environments. In the United States where there is a labor

shortage, corporate human resource departments are partnering with

NGOs and building better systems for the task of identifying and

preparing people for work who have been unemployed or left outside of

the mainstream workforce; NGOs have better networks, skills and

knowledge appropriate for the task. Since 1991 such a partnership


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between the hotel group Marriott International and an NGO called

Pathways to Independence have produced remarkable results: 70 percent

of Pathways' graduates are still employed after a year, compared with

only 45 percent of welfare hires and 50 percent of general hires.

Marriott estimates it saves $4 for every $1 dollar spent, through

lowering turnover and absenteeism (Kanter, 1999).

NGO connections with business employees also develop through volunteer

programs. Hitachi, for example, acculturates its senior management

from Japan to local American communities by making them active board

members on local non-profit boards that are dominated by local people.

This builds both social networks and better understanding of local

communities for managers who might only spend a few years in a

community and have difficulty learning about it. Volunteer programs

are increasingly common with lower level employees, too. The

billion-dollar American boot company Timberland, has concluded that

they provide an important moral boost for their employees. The esteem

of volunteers for their employer increases, and the community work

increases employees' self-esteem.

The vertical disintegration of many firms through subcontracting has

led to human resource problems that NGOs are helping to address. The

scandals of child labor being used to produce soccer balls and

below-subsistance wages for subcontracted clothing manufacturers are

among the high profile and unintended outcomes this corporate

restructuring has generated. Traditional human resource strategies to

avoid such problems are impossible to apply to subcontractors.

Agitation for improved work standards by NGOs has provoked some heated

exchanges and is producing some interesting results. NGOs are actually

working with corporations to assist in defining standards, monitoring

them, and enforcing them. This is generating a new industry of

monitoring and auditing, such as with the ISO 8000 initiative

developed by the Center for Economic Priorities and the U.S.

President's task force on human rights and labor issues for American

companies with overseas operations

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