strategic management csr

8/11/2019 Strategic Management CSR

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CHAPTER

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1 INTRODUCTION TO CSR

1.1 ABSTRACT 4

1.2 RATIONALE OF STUDY &OBJECTIVES 5

1.3 RESEARCH APPROACH METHODOLOGY 6

2 OVERVIEW OF CSR

2.1 INTRODUCTION 8

2.2 CORPORATE SOCIAL RESPONSIBILITY (CSR) 10

2.3 EVOLUTION OF CSR IN INDIA 11

2.4 FOUR TYPES OF CORPORATE SOCIAL RESPONSIBILITY 14

2.5 THE PRINCIPLES OF CSR 16

2.6 CORPORATE SOCIAL RESPONSIBILITY DIMENSIONS 18

2.7 THE IMPORTANCE OF CSR 27

2.8 THE EFFECTS ON BUSINESS PERFORMANCE 29

2.9 CRS & THE COMPANIES ACT, 2013 34

2.10 SOCIAL RESPONSIBILITY STRATEGIES 37

3 CASE STUDY OF MICROSOFT

3.1 ABOUT MICROSOFT 40

3.2 PRODUCTS AT MICROSOFT 41

4 CSR INITIATIVES AT MICROSOFT

4.1 YOUTHSPARK 46

4.2 BILL AND MELINDA GATES FOUNDATION 52

5 RECOMMENDATION , CONCLUSION & BIBLIOGRAPHY 60


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1.2 Rationale of study

The theme of my study is corporate social responsibility. I have chosen this theme because it is one of

the main issues of modern business which is developing fast and is widely discussed. Due to the

historical past of our country CSR is a rather new phenomenon for business, but most companies have

already started to run social programs. Still business has a long way to go to become really socially

responsible and the economic situation in the world can now ruin all previous attempts. Thats why, in

my opinion, we should pay great attention to CSR, its problems and future prospective. I am going to

divide my study into several main parts: short history of CSR, arguments for and against it and,

Evolution of CSR in India CSR and advertising market. Also I would try to make some hypothesis about

future prospective and measures that can be taken to develop CSR. I will use material from business

news, articles, official documents, statistics and surveys to make a clear picture of the situation.

Actually nowadays there is no choice. In spite of all disadvantages most companies have started to

develop social responsibility and CSR is necessary to be successful in the market and avoid

contradictions with government, consumers and mass media.

PurposeThe concept of corporate social responsibility (CSR) has a long history associated with how

it impacts on organizations behavior. In order to understand CSR's impact on organization behavior,

therefore, it is necessary to comprehend its progression. Subsequently, the purpose of this paper is to

trace the conceptual evolution of CSR.

RESEARCH OBJECTIVES

1. To deepen the conceptual understanding of corporate social responsibility (CSR) and

firms underlying motivations to engage in CSR

2. Importance of Corporate Social Responsibility to the business units.

3. Bill gates and Melinda gates Foundation.


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1.3 RESEARCH APPROACH AND METHODS

Classical approaches to CSR research include the instrumental approach and the ethical approach. The

instrumental approach to CSR holds the position that companies engage in CSR only when their

underlying motivation is the attainment of financial performance, while the ethical approach to CSR

states that companies engage in CSR because it is the right thing to do according to some ethical

pathway.

RESEARCH METHODS

A series of CSR Questions prepared and distributed among Business Units and common

people for analysis.

Datas Collected from Microsofts Executive Reports FY 2013


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CHAPTER-2

OVERVIEW OF CSR


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2.1 INTRODUCTION

Corporate social responsibility (CSR, also called

Corporate conscience, corporate citizenship, social

performance, or sustainable responsible business

Responsible Business) is a form of corporate

self-regulation integrated into a business model.

CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures

its active compliance with the spirit of the law, ethical standards, and international norms. In some

models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to

further some social good, beyond the interests of the firm and that which is required by law. CSR is a

process with the aim to embrace responsibility for the company's actions and encourage a positive

impact through its activities on the environment, consumers, employees, communities, stakeholders and

all other members of the public sphere who may also be considered as stakeholders.

Sensitivity to communities and their rights, public dialogue and enhanced transparency, commitment to

addressing the issues of social justice in the global economy, bringing the dynamic skills of business tosocial needs: all of these are increasingly required to address the shifting expectations, opportunities and

challenges brought at the beginning of the 21st century. The private sector has a central role to play, and

individual business leaders can translate this potential into genuinely sustainable growth, coupled with

long-term corporate success

The term "corporate social responsibility" became popular in the 1960s and has remained a term used

indiscriminately by many to cover legal and moral responsibility more narrowly construed.

Corporate Social Responsibility, or CSR, is something that was started by fashionable 'ethical'

businesses. Realizing that promoting a responsible way of doing business actually improved the bottom

line soon received wider interest, and now demonstrating responsibility has become expected when

bidding for major contracts. With now being the time to question your organizations value, see the

benefits of CSR by reading on below.


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In the last 15 years, an array of stakeholders have turned to firms, rather than governments, to address

enduring environmental problems including forest degradation, fisheries depletion, mining destruction,

and even climate change, as well as social problems including workers and human rights. As a result, a

wide range of tactics including boycott campaigns, social and eco-labeling, and environmental

certification, have been used to appeal directly to firms to improve their environmental management

procedures and performance as well as their treatment of workers and impacts of their activities in the

communities in which they operate. These efforts to promote what is generally known as corporate

social responsibility (CSR), have increasingly attracted the interest of a wide range of scholars within

political science, economics, sociology, anthropology and geography.

Several factors have coincided to explain this renewed interest in CSR among both practitioners and

scholars. These include

Ineffectiveness, to date, of many governmental and intergovernmental processes

Accelerating economic globalization that has placed special

Attention on transnational or global firms and general interest in pursuing innovative

smart regulation that, supporters argue, would encourage entrepreneurial innovation.

Corporate social responsibility has been described as a commitment to improve community wellbeing

through discretionary business practices and contributions of corporate business. It is a voluntary

commitment a business makes in choosing and implementing those practices. These practices can be in

monetary or non-monetary form and should concern the well-being of both human conditions as well as

environmental issues.


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2.2 CORPORATE SOCIAL RESPONSIBILITY (CSR)

Definition:

The World Business Council for Sustainable Development has defined corporate social responsibility(CSR) as

'The commitment of business to contribute to sustainable economic development, working with

employees, their families, the local community and society at large to improve their quality of life'. An

equally valid but more concise definition of CSR in practice is 'companies managing their business

processes to produce an overall positive impact on society'.

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

CSR suggests that a corporation is not only responsible to the law, its investors, customers and

employees, but also to 'society'.

Business and all industries have a crucial role to play in helping countries to become more sustainable.

As a result, many organizations and industries are responding by reducing their environmental and

social impacts and risks through improved management practices, support for stakeholders (internally

and externally) and efficient use of natural resources.

Corporate Social Responsibility (CSR) is the soul of every business these days. It has also become the

password to not only overcome competition but to ensure sustainable growth. It has been supported not

only by the shareholders but stakeholders by and large encompassing the whole community. CSR in

truth is the alignment of business operations with social values. It takes into account the interests of

stakeholders in the company's business policies and actions. It focuses on the social, environmental, and


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financial success of a company - the so-called triple bottom line - with the aim to achieve social

development while achieving business success. More importantly, CSR is the point of convergence of

various initiatives aimed at ensuring socio-economic development of the community which would be

livelihood oriented as a whole in a credible and sustainable manner. There does seem to be a glimmer of

hope from the rapidly growing field of CSR and from the greater involvement of companies in providing

private funds for relief.

Organisations and industries around the world are recognising the value of demonstrating transparency

and accountability beyond the traditional domain of financial performance. This trend has come about

through increased public expectations for organisations and industries to take responsibility for their

non-financial impacts, including impacts on the environment and the community.

Recognising all key stakeholders, including those outside the walls of the workplace, is one of the first

steps to working towards implementing corporate responsibility.

2.3Evolution of corporate social responsibility in India

The evolution of corporate social responsibility in India refers to changes over time in India of the

cultural norms of corporations' engagement of corporate social responsibility (CSR), with CSR referring

to way that businesses are managed to bring about an overall positive impact on the communities,

cultures, societies and environments in which they operate. The fundamentals of CSR rest on the fact

that not only public policy but even corporates should be responsible enough to address social issues.

Thus companies should deal with the challenges and issues looked after to a certain extent by the states.

India has a long tradition of paternalistic philanthropy. The process, though acclaimed recently, has

been followed since ancient times albeit informally. Philosophers such as Kautilya from India and pre-

Christian era philosophers in the West preached and promoted ethical principles while doing business.The concept of helping the poor and disadvantaged was cited in several ancient literatures. In the pre-

industrialized period philanthropy, religion and charity were the key drivers of CSR. The industrial

families of the 19th century had a strong inclination toward charity and other social considerations.

However, the donations, either monetary or otherwise, were sporadic activities of charity or

philanthropy that were taken out of personal savings, which neither belonged to the shareholders nor did


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it constitute an integral part of business. During this period, the industrial families also established

temples, schools, higher education institutions and other infrastructure of public use.

Among other countries India has one of the most richest traditions of CSR Much has been done in recent

years to make Indian Entrepreneurs aware of social responsibility as an important segment of their

business activity but CSR in India has yet to receive widespread recognition. If this goal has to be

realized then the CSR approach of corporates has to be in line with their attitudes towards mainstream

business- companies setting clear objectives, undertaking potential investments, measuring and reporting

performance publicly.

The Four Phases of CSR Development in India

The history of CSR in India has its four phases which run parallel to India's historical development and

has resulted in different approaches towards CSR. However the phases are not static and the features of

each phase may overlap other phases.

The First Phase: In the first phase charity and philanthropy were the main drivers of CSR. Culture,

religion, family values and tradition and industrialization had an influential effect on CSR. In the pre-

industrialization period, which lasted till 1850, wealthy merchants shared a part of their wealth with the

wider society by way of setting up temples for a religious cause.Moreover, these merchants helped the

society in getting over phases of famine and epidemics by providing food from their godowns and

money and thus securing an integral position in the society.The industrial families of the 19th century

such as Tata, Godrej, Bajaj, Modi, Birla, and Singhania were strongly inclined towards economic as well

as social considerations.

The Second Phase: In the second phase, during the independence movement, there was increased stress

on Indian Industrialists to demonstrate their dedication towards the progress of the society. This was

when Mahatma Gandhi introduced the notion of "trusteeship", according to which the industry leaders

had to manage their wealth so as to benefit the common man. "I desire to end capitalism almost, if notquite, as much as the most advanced socialist.Gandhi's influence put pressure on various Industrialists

to act towards building the nation and its socio-economic development. According to Gandhi, Indian

companies were supposed to be the "temples of modern India". Under his influence businesses

established trusts for schools and colleges and also helped in setting up training and scientific

institutions.


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in the 1980s, business and social interest came closer and firms became more responsive to their

stakeholders.

During the 1990s the idea of CSR became almost universally approved, also CSR was coupled with

strategy literature and finally, in the 2000s, CSR became definitively an important strategic issue.

2.4 FOUR TYPES OF CORPORATE SOCIAL RESPONSIBILITY

The idea behind corporate social responsibility is that companies have multiple responsibilities to

maintain. These responsibilities can be arranged in a pyramid, with basic responsibilities closer to the

bottom. As a business meets lower-level responsibilities that obligate it to shareholders and the law, it

can move on to the higher level responsibilities that benefit society.

Economic Responsibilities

A company's first responsibility is its economic responsibility -- that is to say, a company needs to be

primarily concerned with turning a profit. This is for the simple fact that if a company does not make

money, it won't last, employees will lose jobs and the company won't even be able to think about taking

care of its social responsibilities. Before a company thinks about being a good corporate citizen, it first

needs to make sure that it can be profitable.

Legal Responsibilities

A company's legal responsibilities are the requirements that are placed on it by the law. Next to ensuring

that company is profitable, ensuring that it obeys all laws is the most important responsibility, according

to the theory of corporate social responsibility. Legal responsibilities can range from securities

regulations to labor law, environmental law and even criminal law.

Ethical Responsibilities

Economic and legal responsibilities are the two big obligations of a company. After a company has met

these basic requirements, a company can concern itself with ethical responsibilities. Ethical


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responsibilities are responsibilities that a company puts on itself because its owners believe it's the right

thing to do -- not because they have an obligation to do so. Ethical responsibilities could include being

environmentally friendly, paying fair wages or refusing to do business with oppressive countries, for

example.

Philanthropic Responsibilities

If a company is able to meet all of its other responsibilities, it can begin meeting philanthropic

responsibilities. Philanthropic responsibilities are responsibilities that go above and beyond what is

simply required or what the company believes is right. They involve making an effort to benefit society -

-for example, by donating services to community organizations, engaging in projects to aid the

environment or donating money to charitable causes.

Common Types of Corporate Social Responsibility Actions

There are many aspects of corporate social responsibility; whether a company decides to develop one

area of CSR, or multiple, the end result is a more profitable company experiencing a higher level of

employee engagement. The following is a list of common ways corporate social responsibility is

implemented by organizations.

1. Environmental Sustainability: Areas include recycling, waste management, water management,

using renewable energy sources, utilizing reusable resources, creating 'greener' supply chains, using

digital technology instead of hard copies, developing buildings according to Leadership in Energy and

Environmental Design (LEED) standards, etc. There is a business sector dedicated to specifically to

environmental sustainability consulting for businesses of any size to utilize. The highest ranked

sustainability consulting firm is Ernst & Young

2. Community Involvement:This can include raising money for local charities, supporting community

volunteerism, sponsoring local events, employing people from a community, supporting a community's

economic growth, engaging in fair trade practices, etc. Starbucks is an example of a company that


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focuses on community involvement and engagement; since these programs began the company has seen

higher profits and greater employee engagement.

3. Ethical Marketing Practices:Companies that ethically market to consumers are placing a higher

value on their customers and respecting them as people who are ends in themselves. They do not try to

manipulate or falsely advertise to potential consumers. This is important for companies that want to be

viewed as ethical.

2.5 THE PRINCIPLES OF CSR

Because of the uncertainty surrounding the nature of CSR activity it is difficult to define CSR and to be

certain about any such activity. It is therefore imperative to be able to identify such activity and we take

the view that there are three basic principles which together comprise all CSR activity. These are:

Sustainability

Accountability

Transparency

Sustainability

Thus raw materials of an extractive nature, such as coal, iron or oil, are finite in quantity and once used

are not available for future use. At some point in the future therefore alternatives will be needed to fulfill

the functions currently provided by these resources. This may be at some point in the relatively distant

future but of more immediate concern is the fact that as resources become depleted then the cost of

acquiring the remaining resources tends to increase, and hence the operational costs of organizations

tend to increase.Sustainability therefore implies that society must use no more of a resource than can be

regenerated.This can be defined in terms of the carrying capacity of the ecosystem and described with

inputoutput models of resource consumption.

Viewing an organization as part of a wider social and economic system implies that these effects must

be taken into account, not just for the measurement of costs and value created in the present but also for

the future of the business itself. Measures of sustainability would consider the rate at which resources

are consumed by the organization in relation to the rate at which resources can be regenerated.


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Unsustainable operations can be accommodated for either by developing sustainable operations or by

planning for a future lacking in resources currently required

Accountability

This is concerned with an organization recognizing that its actions affect the external environment, and

therefore assuming responsibility for the effects of its actions. This concept therefore implies a

quantification of the effects of actions taken, both internal to the organization and externally. More

specifically the concept implies a reporting of those quantifications to all parties affected by those

actions. This implies a reporting to external stakeholders of the effects of actions taken by the

organization and how they are affecting those stakeholders.

Accountability therefore necessitates the development of appropriate measures of environmental

performance and the reporting of the actions of the firm. This necessitates costs on the part of the

organization in developing, recording and reporting such performance and to be of value the benefits

must exceed the costs. Benefits must be determined by the usefulness of the measures selected to the

decision-making process and by the way in which they facilitate resource allocation, both within the

organization and between it and other stakeholders.

Transparency

Transparency, as a principle, means that the external impact of the actions of the organization can be

ascertained from that organizations reporting and pertinent facts are not disguised within that reporting.

Thus all the effects of the actions of the organization, including external impacts, should be apparent to

all from using the information providedby the organizations reporting mechanisms. Transparency is of

particular importance to external users of such information as these users lack the background details

and knowledge available to internal users of such information. Transparency therefore can be seen to

follow from the other two principles and equally can be seen to be a part of the process of recognition of

responsibility on the part of the organization for the external effects of its actions and equally part of theprocess of transferring power to external stakeholders.


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2.6 Corporate Social Responsibility Dimensions

There are three major dimensions for social responsibility, being: the social, environmental, and

economic dimensions, as demonstrated by the following diagram:

First: The Economic Dimension

The term of economic dimension respective to social responsibility does not refer to profitability, as one

of the commercial operations aspects. Alternatively, it refers to commitment to ethical practices inside

enterprises, like corporate governance, preventing bribery and corruption, protecting consumer's lefts,

and ethical investment.


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Corporate Governance

The Organization for Economic Cooperation and Development (OECD) defines Corporate Governance

as a set of relationships between a companys management, its board, its shareholders and other

stakeholders. Corporate governance also provides the structure through which the objectives of the

company are set, and the means of attaining those objectives and monitoring performance are

determined. Corporate governance should provide proper incentives for the board and management to

pursue objectives that are in the interests of the company and its shareholders and should facilitate

effective monitoring, and so help the company to utilize its resources efficiently.

Corporate Governance ensures non-centralization of authority in one individual or one group inside the

enterprise. This requires the existence of regulations and measures inside the enterprise, the role of

which is determining the authorities respective to each of its bodies, and creating balance among them,

besides having clear lines for accountability. Governance regulations vary according to the size and type

of enterprise, and the environmental, economic, political, cultural, and social contexts within which it

operates.

Corporate Governance contributes to the following:

Creating and promoting an environment within which the principles of accountability,

transparency, ethical behavior, respect for relevant parties interests and the rule of law are

applied.

Establishing a system of economic and non-economic incentives that is connected with

performance in social responsibility.

Utilizing financial, natural, and humanitarian resources efficiently.

Promoting justice in representing under-represented categories (including women) in higher

positions at the enterprise.

Realizing balance between the enterprises needs, concerned parties, including urgent needs, and

the needs of coming generations.


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Establishing bilateral communications with related parties, which take into consideration such

parties interests, and assisting in defining agreement and disagreement areas, and in negotiation

for the resolution of potential conflicts.

Promoting effective involvement of male and female employees in decision making, pertaining

social responsibility concerns.

Achieving balance at the authority and responsibility level, besides the ability of persons who

take decisions on behalf of the enterprise.

Protection of Consumers Interests

Enterprises which introduce products, or render services for customers of consumers are deemed liable

against those customers or consumers. Their liability includes providing accurate information, usingintegral and transparent means which are helpful in marketing, contractual dealings, and strengthening

consumption. It also requires mitigating work risks which may result from such operations through

developing, distributing, supporting, and providing sufficient information on such operations. Whenever

enterprises tend to collect private information, they shall be obliged to preserve the confidentiality of

such information.

As per the social responsibility, it is connected with fair marketing practices, protection of health and

ensuring safety, sustainable consumption, settlement of conflicts and indemnities, protection ofinformation and privacy, and attainment of basic services and products. Once such enterprises realize

facts, social responsibility will be achieved by using fair trade, practicing marketing, announcing any

dealings with customers, undertaking all reasonable procedures to ensure the soundness and quality of

their goods and services, especially:

Ensuring that such goods or services provided by the enterprise meet all legal standards required

for maintaining the consumer's health and safety, including health precautions and product safetyregulations, in addition to providing informative labels on the products. All reasonable

precautions should be employed or taken to ensure the quality and safety of its services and

goods', taking into consideration the entire life cycle for each product, as the objective is to

ensure safe utilization, good possibilities for repair, treatment, recycling or safe disposal of

excess or damaged goods.


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Providing effective and transparent procedures when examining consumer complaints, so as to

contribute in finding fair and timely solutions for consumer disputes, without any further or

unnecessary costs.

Avoiding engagement in any other practices that are deemed deceiving, misleading, forged, or

unfair.

Respecting the consumers privacy, providing security, and maintaining its confidential

information.

Complete and transparent cooperation with public authorities to avoid and/or combat any serious

threats that may affect consumers health orpublic safety due to using or consuming its products.

Ethical Investment :

Ethical investment is the type of investment which takes into consideration the enterprises ethical

values, and their effects on making the investment decision. There are several and various types of

ethical investment, yet the following are the most common:

The investment which is based on Negative Screening: this type of ethical investment considers

all investment opportunities, yet prohibits the involvement in certain investments.

The investment which is based on Positive Screening: this type of ethical investment considers

all available investment opportunities, to find socially and ethically responsible investment

opportunities.

The investment which is based on Corporate Engagement: this type of ethical investment aims at

changing corporate practices in which it is involved, through promoting dialogue and conducting

meetings to encourage such enterprises to be committed to social responsibility.

Combination Investment: despite the fact that it is uncommon, some enterprises combine the

above three types of investment.

As such, the ethical investment paves the way for investors to avoid undesirable investments on the one

hand, and provide opportunities to support the investment which follows a similar social and ethical

responsibility policy on the other hand.


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Standards Determining the Ethical Investment

Standards with Negative EffectStandards with Positive Effect

Armament and Nuclear WeaponsProtection of Environment

Animal Exploitation and AbuseControlling Pollution

Breach of Human leftsRecycling

Practices which are Harmful to the EnvironmentProfessional Safety

Non-Ethical Work ConductEthical Work Conduct

Second: The Social Dimension

The enterprise should participate in achieving the welfare of the society, and in improving and caring for

the affairs of its employees. This should positively reflect on increasing their productivity, developing

their technical abilities, and providing them with professional and employment security, besides health

and social care. The open administrative approach which the enterprise adopts is considered conclusive,as the effect of its social conduct exceeds the enterprises own limits.

To determine social concerns which are related to priorities which the enterprise seeks to achieve, it

should tackle the basic issues which are demonstrated via the following figure under its plan and set

priorities.

A. Fair Employment and Work Practices:

Enterprises recognize individuals as their competitive privilege, and treat their employees equally as

assets and factors for change. As such, they need to win the support of employees, not only to determine

the success of their operations from a commercial point of view, but also in terms of the enterprises

commitment towards social and environmental issues, in order to realize the three pillars of

sustainability.


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This can be achieved through strengthening the enterprises values, besides the economic, social, and

environmental dimensions of sustainability, and through investing in the quality of professional life,

through proper organization of workplace, practices adopted within the workplace, recruitment

conditions, and developing and managing human resources. This stems from the fact that socially

responsible employment practices are considered essential to achieve social justice and institutional

stability.

As for good conducts concept within the workplace, it is far-reaching, and comprises several

characteristics. However, the main organizational factors which are related to the work environment, and

which contribute to establishing an effective and productive workplace, include the following:

Decent living and economic security levels.

Leadership that appreciates employees based on merit.

Safe and healthy work environment.

Mutual trust between employers and employees.

Openness culture in respect to the involvement in decision making.

Promotion of initiative taking and innovation.

Opportunities for utilizing and developing skills,

Similarly, as investment is connected with people, enhancing education is connected with improving and

caring for decent and productive workplaces through taking care of the humanitarian dimension of

competitiveness and productivity. As such, laws and national practices which are guided by international

labor standards, whenever possible, represent binding covenants to guide corporate policies and

practices.

To achieve some of these objectives, the following areas may be suggested:


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Requirements

Educating and training employees

In this area, providing training opportunities for thosewho are not skilled enough (under-skilled, under-experienced), and for work returners after maternity orsickness leaves.

Employing the disabled

Employing the physically disabled individuals for certainpositions which do not need physical effort.

Fairness in taking strategic decisions

And such decisions which are related to employeesaffairs, without consideration to gender issues.

The status of elder employees in the enterprise

Taking the effort to provide them with properworkplaces.

Professional safety and health

Providing a system of precautions to maintainemployees' safety and health.

Socially responsible investment policyEspecially concerning pension funds, set plans for

employees pensions, and saving funds

B. Contribution to the Local Community

Social responsibility cares for the manner in which the enterprise runs the effects of its operations on

communities, and the groups which operate under its scope. It is possible that the effects might be

positive or negative. Consequently, the manner in which the enterprise runs such effects shall definitely

affect the welfare of the local community, and at the end, affect its business.

Classifying areas which the enterprise shall contribute to, according to priority, depends on the

characteristics of the community itself on the one hand, and on the quality of resources and capabilitieswhich the enterprise enjoys on the other. It is important for the enterprise to be totally aware of the local

community, to be able to direct its effort in a straight forward manner towards the communitys own

priorities and needs.


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The main areas for developing the local communities which the enterprise may contribute to include

creating employment opportunities, and local economic development initiatives through expanding

educational programs, skill development, provisions of health services, caring for the youth through

cultural and sports clubs, and commitment to deduct specific percentages from profits before taxes for

donations which are allocated to serve societal concerns.

It is common that enterprises commit themselves to social responsibility, in different degrees, by

focusing on the following areas:

Environment protection, like reducing gas emissions and wastes, recycling materials, andreforestation programs.

Charity works, like donating to charities and participating in social causes, like raising awarenesson human rights and current concerns.

Urban areas development, through partnership with the government, to revive small commercialenterprises and enhancing the environment in local towns.

Investment in local business enterprises, through partnership with non-governmentalorganizations in areas of decreasing poverty and social development programs.

Employees-oriented projects, like provision of higher standards for professional health andsafety, equal employment opportunities, and flexible work hours.

Third: The Environmental DimensionThe environmental dimension for socially responsible enterprises is defined as the enterprises

obligation towards covering the environmental effects which result from its operations and products,

eliminating emissions and wastes, achieving maximum efficiency and productivity depending on

available resources, and decreasing practices which may negatively affect the country and next

generations enjoyment of resources. The enterprise should be aware of all the direct and indirect

environmental aspects which are related to its performance of business, rendering of services, and

manufacturing of products. It should also employ certain standards to learn about the environmental

aspects which result in distinguished effects to be able to effectively enhance its environmental

performance. Such certain standards which are set by the enterprise itself should be comprehensive and

fixed. They should also be documented through writing reports to enhance the functional performance of

the environment.


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The idea of having an environmental management system assists in guaranteeing the enterprises

commitment to the following:

Managerial commitment to meet the provisions of its policies, objectives and aspirations. Focus on spreading the preservation culture instead of setting treatment or corrective measures

later on.

The process of continuous improvement.

In return for applying an environmental management system, economic advantages may be realized.

Such advantages must be specified to have them and their values demonstrated before concerned parties,

especially stakeholders (shareholders). This should give the enterprise an opportunity to connect the

environmental objectives with specific financial results, and so guarantee the availability of resources.

The main elements of environmental responsibility include the following:

Adopting environmental performance specifications, rules and measurement standards foroperations and management, which are subjected to maximum environmental protection degrees.

Facilitating the environmental technological development, conversion and conveyance.

Promoting environmental awareness.

Opening negotiation channels with concerned parties, and communicating with such parties onenvironmental issues.

The enterprise may be able to improve its environmental performance though dealing with thefollowing, but not limited to, environmental issues:

1. Reducing emissions: the activities, operations and services provided by enterprises, result indirect and indirect emissions in the atmosphere. Such emissions result from using the enterprisesproducts, or from its purchasing habits and electricity consumption. Such emissions may includevarious pollutants, like lead, mercury, changeable organic compounds, sulphur dioxide, nitric-oxides, and other materials which may lead to environmental deterioration, and effects on humanhealth.

2. Reducing wastes: the enterprises whose business activities result in liquid and solid wastesshould depend on programs to reduce such wastes. These programs must be based on reducingsources, reutilization, recycling, waste treatment and disposal.


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3. Effective use of power:enterprises consume power in their running of operations and services.Programs which focus on effective power consumption may reduce the demand for power inbuildings, in areas like heating, cooling, lightening, effective fuel use, and reliance on alternativefuel resources.

4. Water Preservation:clean water is considered a global wealth. Attaining pure drinking water isconsidered a basic humanitarian need, and so is listed as one of an individual's major rights. Thedevelopmental objectives for the new millennium include the provision of safe drinking waterand health services for all individuals. The effective management for preserving water isachieved through allocating water, and controlling its flow to realize a just and sustainablesaving of water resources.

2.7 THE IMPORTANCE OF CORPORATE SOCIAL

RESPONSIBILITY AS A BUSINESS GOAL

Corporate social responsibility can be defined as where a business attempts to meet certain ethical, legal

and commercial expectations as set by society. As a business goal, corporate social responsibility has

grown in importance over recent years. The reasons for such growth have been diverse.

Changing social expectations regarding business behavior:

Heightened consumer awareness concerning the activities of business can be attributed to a number of

factors. For example, high-profile cases concerning companies such as Nike and Puma and their use of

cheap labour in production sites in south-east Asia have attracted considerable media attention. In

addition, activist groups, which seek to name and shame and bring to the publics attention bad business

practices, have become increasingly vocal and successful in placing issues of social responsibility high

up on the business agenda.

The reduced role of the state in regulating business actions

As government regulation over business activities has diminished, business has had to take increasing

responsibility for identifying consumer and social concerns and acting upon them. Such concerns, in


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2.8 THE EFFECTS ON BUSINESS PERFORMANCE

If corporate social responsibility has grown as a business objective, has this in any way impinged upon

business performance? Studies, empirical and otherwise, suggest that rather than detracting from

business performance and harming shareholder value, in fact the opposite appears to be the case.

Corporate social responsibility appears to offer a positive contribution to business performance,

especially over the longer term.

The following factors have been identified as some of the positive economic benefits that businesses

have gained from adopting a more socially responsible position.

Improved economic performance

A large number of studies have attempted to identify and evaluate the economic returns from social

responsibility. Factors that have been considered include business growth rates, stock prices and sales

and revenue.

A 1999 survey by Roman, Hayibor and Agle evaluated the findings of 52 studies that considered the link

between business ethics and enhanced profits. They concluded that 33 studies showed a positive link, 14

suggested neutral effects or were inconclusive, and the remaining 5 suggested that there was in fact a

negative relationship.

Although this evidence would on balance favour an argument that corporate social responsibility is good

business practice, the whole area of linking ethics and responsibility to profit is a contentious one. When

considering ethics and social responsibility, what are we including within this definition? Is the business

merely complying with a business code, either developed within the business or by a third party. Such

codes essentially state. What is not acceptable business behaviour, such as taking bribes or pursuing

anti-competitive behaviour. Or does the understanding of an ethical business go further and entail

positive social actions, ranging from giving money to good causes, to contributing to particular

programmes in which the business has competency. For example, a pharmaceutical company might

develop a drug that might benefit the populations of the worlds poorest countries, with no possibility of

profit. So at what level do we identify an ethical business, and to what degree might this level of

responsibility influence profitability?


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Enhancing the brand

Related to profitability is the issue as to how far corporate social responsibility enhances brand image

and the firms reputation. Not only would this strengthen consumer loyalty but also aid the firm in

raising finance and attracting trading partners. An increasing number of studies have identified that

value-based criteria are becoming increasingly important in consumer buying decisions. A 1997 study

by Walker Research found that, given two products with similar quality and price criteria, 76 per cent of

those surveyed stated they would purchase the product produced by the company most associated with

good causes. Factors such as environmental responsibility and active participation in the community

were most often cited as those factors most likely to affect consumer purchasing behaviour.

Business may be further encouraged to develop the social image of their brand with the increasing

number of awards given to recognise and promote corporate social responsibility. Most Admired

Companies Lists, such as that presented by Management Today in the UK and Fortune in America, are

based around an assessment of corporate social responsibility criteria, such as reputation for ethics and

honesty, use of corporate assets and community and environmental responsibility. The public relations

and marketing potential that might be gained from such awards would go a long way in helping the

business to further strengthen its socially responsible brand image.

Attracting and retaining employees

It increasingly appears to be the case that companies with clear ethical and social positions find it easier,

to not only recruit but to hold on to their employees. In a number of surveys of graduate employment

intentions, students have claimed that they would be prepared to take a lower salary in order to work for

a business with high ethical standards and a commitment to socially responsible business practices.

A survey conducted in June 2000 by Burson Marsteller and the Prince of Wales Business Leaders

Forum found that when employees were asked to rank the reason for admiring certain companies, 24 per

cent identified respect for their employees, and a further 21 per cent identified environmental

responsibility. The survey concluded that the reputation of the employer was crucial in the recruitment

and retention of staff. As John Browne the chairman of BP Amoco has remarked,


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Access to capital

The growth in ethically screened investment funds has grown by over 238 per cent since 1995. This

phenomenal growth is driven not only by the demands from shareholders for ethical funds, but also by a

realization from investors generally, that socially responsible business has the potential to be hugely

profitable.A recent survey by the Ethical Investment Research Service has revealed that 77 per cent of

members of pension schemes wanted their pension funds to adhere to some form of socially responsible

investment, so long as it did not impinge upon their returns.

The likelihood of returns being lower in ethically screened funds has been questioned by the findings of

two recent reports. Innovest Strategic Value Advisors and the Alliance for Environmental Innovations,

both concluded that, in respect to environmental responsibility in particular, those companies that

exhibit superior environmental performance over their peers achieve better financial performance in the

stock market. It is suggested that the reason for this is that environmental performance is a good

indicator of general management quality, which is the main determinant of stock price.

The benefits from being socially responsible appear not only to be diverse, but from an economic

point of view, worth having. Not only is business performance likely to be enhanced, but brand

image will be strengthened, employee turnover minimized and access to stock market funds

readily available. The next step for research is to attempt to quantify the benefits, and try to relate

the economic advantages directly to the level of social responsibility a business adopts.

OTHER POTENTIAL BUSINESS BENEFITS

Triple bottom line :People planet profit, also known as the triple bottom line, are words that

should be used and practiced in every move an organization makes.

I. People relates to fair and beneficial business practices toward labour, the community and region

where corporation conducts its business.

II. Planet refers to sustainable environmental practices. A triple bottom line company does not

produce harmful or destructive products such as weapons, toxic chemicals or batteries containing

dangerous heavy metals for example.

III. Profit is the economic value created by the organization after deducting the cost of all inputs,

including the cost of the capital tied up. It therefore differs from traditional accounting


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definitions of profit. Despite the fact that adopting this triple measure has helped some

companies be more conscious of their social and moral responsibilities

Human resources : A CSR program 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, and having a comprehensive policy can give an advantage. CSR can

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

become involved through payroll giving, fundraising activities or community volunteering. CSR

has been found to encourage customer orientation among frontline employees.

Risk management:Managing risk is a central part of many corporate strategies. Reputations

that take decades to build up can be ruined in hours through incidents such as corruption scandals

or environmental accidents. These can also draw unwanted attention from regulators, courts,

governments and media. Building a genuine culture of 'doing the right thing' within a corporation

can offset these risks.

Brand differentiation: In crowded marketplaces, companies strive for a unique selling

proposition that can separate them from the competition in the minds of consumers. CSR can

play a role in building customer loyalty based on distinctive ethical values several major brands,such as The Co-operative Group, The Body Shop and American Apparel are built on ethical

values. Business service organizations can benefit too from building a reputation for integrity

and best practice.

License to operate: Corporations are keen to avoid interference in their business through

taxation or regulations. By taking substantive voluntary steps, they can persuade governments

and the wider public that they are taking issues such as health and safety, diversity, or the

environment seriously as good corporate citizens with respect to labour standards and impacts on

the environment.


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Satisfied Employees: Employees want to feel proud of the organization they work for. An

employee with a positive attitude towards the company is less likely to look for a job elsewhere.

It is also likely that you will receive more job applications because people want to work for you.

More choice means a better workforce. Because of the high positive impact of CSR on employee

wellbeing and motivation, the role of HR in managing CSR projects is significant.

Positive PR: CSR provides the opportunity to share positive stories online and through

traditional media. Companies no longer have to waste money on expensive advertising

campaigns. Instead they generate free publicity and benefit from worth of mouth marketing.

More Business Opportunities: A CSR program requires an open, outside oriented approach.

The business must be in a constant dialogue with customers, suppliers and other parties that

affect the organization. Because of continuous interaction with other parties, your business will

be the first to know about new business opportunities.

Long term future for your Business : CSR is not something for the short term. Its all about

achieving long term results and business continuity. Large businesses refer to: shaping a more

sustainable society

External benefits Internal benefits

Improved financial performance

Reduced risk exposure

Enhanced brand image

Increased sales and customer loyalty

Creation of new business networks

Improved trust

Enhanced corporate reputations

Improved government relations

Reduced regulatory intervention

Reduced costs through environmental

best practice.

Improved financial performance

Reduced risk exposure

Improved recruitment and staff retention

Increased staff motivation and enhanced

skills

Improved trust.


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2.9 CRS & THE COMPANIES ACT, 2013

In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013, which was

passed by both Houses of the Parliament, and had received the assent of the President of India on 29

August 2013. The CSR provisions within the Act is applicable to companies with an annual turnover of

1,000 crore INR and more, or a net worth of 500 crore INR and more, or a net profit of five crore INR

and more. The new rules, which will be applicable from the fiscal year 2014-15 onwards, also require

companies to set-up a CSR committee consisting of their board members, including at least one

independent director

The Act encourages companies to spend at least 2% of their average net profit in the previous

three years on CSR activities. The ministrys draft rules, that have been put up for public comment,

define net profit as the profit before tax as per the books of accounts, excluding profits arising from

branches outside India. The Act lists out a set of activities eligible under CSR. Companies may

implement these activities taking into account the local conditions after seeking board approval. The

indicative activities which can be undertaken by a company under CSR have been specified under

Schedule VII of the Act.


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SOME THE HIGHLIGHTS ARE AS FOLLOWS

1. Surplus arising out of CSR activities will have to be reinvested into CSR initiatives, and this willbe over and above the 2% figure

2. The company can implement its CSR activities through the following methods:

Directly on its own

Through its own non-profit

foundation set- up so as to facilitate this initiative

Through independently registered non-profit organisations that have a record of at least threeyears in similar such related activities

Collaborating or pooling their resources with other companies

3. Only CSR activities undertaken in India will be taken into consideration

4. Activities meant exclusively for employees and their families will not Qualify

5. A format for the board report on CSR has been provided which includes amongst others,

activity-wise , reasons for spends under 2% of the average net profits of the previous three years

and a responsibility statement that the CSR policy, implementation and monitoring process is in

compliance with the CSR objectives, in letter and in spirit. This has to be signed by either the

CEO, or the MD or a director of the company


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CORPORATE SOCIAL RESPONSIBILITY

AS A TOOL IN SALES PROMOTIONS

Cross-Promotion

To understand the advantage of cross-promoting a product alongside corporate social responsibility

efforts, consider the consumer's perspective. Cross-promotion draws attention to corporate social

activities and at least one product. Instead of putting a game on the back of a cereal box, for example, a

cereal maker might print a feature about its rainforest mitigation activities. If the company announces it

will feature more stories about the rainforest, specifically related to its activities, people might buy more

cereal boxes to read them. Or, people might keep buying the cereal brand because they like the

company's cause.

Cause Marketing

A company can sponsor a social cause, plan a promotional event and invite sponsorships from donors

and corporations. At an event such as a charity fundraiser, a company can promote at least one product

by giving it away. In other events, such as a corporate-sponsored, hockey game for charity, sponsors can

set up a booth and distribute promotional items to fans.

Promotional Mix

Marketing agencies can also suggest how to use CSR in a company's promotional mix, or combination

of promotional strategies. If the marketing agency doesn't recommend at least one CSR approach, a

company can create its own promotion. Some companies work with more than one agency to get diverse

perspectives, such as planning promotions across different communication channels.


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Web Audience

The company website can also promote CSR activities and products. A web marketing agency might

advise how to design the promotion strategy. A company can strategically place a product on Web

videos concerning CSR activities. A web video showing a company's rainforest mitigation team in

action can begin with a short spotlight on a new product.

SOCIAL RESPONSIBILITY STRATEGIES

Voluntary Hazard Elimination

Companies involved with social responsibility often take action to voluntarily eliminate production

practices that could cause harm for the public, regardless of whether they are required by law. For

example, a business could institute a hazard control program that includes steps to protect the public

from exposure to hazardous substances through education and awareness. A plant that uses chemicals

could implement a safety inspection checklist to guide staff in best practices when handling potentially

dangerous substances and materials. A business that makes excessive noise and vibration could analyze

the effects its work has on the environment by surveying local residents. The information received could

be used to adjust activities and develop soundproofing to lessen public exposure to noise pollution.

Community Development

Companies, businesses and corporations concerned with social responsibility align with appropriate

institutions to create a better environment to live and work. For example, a corporation or business may

set up a foundation to assist in learning or education for the public. This action will be viewed as an

asset to all of the communities that it serves, while developing a positive public profile


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Philanthropy

Businesses involved in philanthropy make monetary contributions that provide aid to local charitable,

educational and health-related organizations to assist under-served or impoverished communities. This

action can assist people in acquiring marketable skills to reduce poverty, provide education and help the

environment. For example, the Bill and Melinda Gates Foundation focuses on global initiatives for

education, agriculture and health issues, donating computers to schools and funding work on vaccines to

prevent polio and HIV/AIDS.

Creating Shared Value

Corporate responsibility interests are often referred to as creating shared value or CSV, which is based

upon the connection between corporate success and social well-being. Since a business needs a

productive workforce to function, health and education are key components to that equation. Profitable

and successful businesses must thrive so that society may develop and survive. An example of how CSV

works could be a company-sponsored contest involving a project to improve the management and access

of water used by a farming community, to foster public health.

Social Education and Awareness

Companies that engage in socially responsible investing use positioning to exert pressure on businesses

to adopt socially responsible behavior themselves. To do this, they use media and Internet distribution to

expose the potentially harmful activities of organizations. This creates an educational dialogue for the

public by developing social community awareness. This kind of collective activism can be affective in

reaching social education and awareness goals. Integrating a social awareness strategy into the business

model can also aid companies in monitoring active compliance with ethical business standards and

applicable laws.


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CHAPTER-3

CASE STUDY OF

MICROSOFT


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Microsoft Corporation is an American multinational software corporation headquartered in Redmond,

Washington that develops, manufactures, licenses, and supports a wide range of products and services

related to computing. The company was founded by Bill Gates and Paul Allen on April 4, 1975.

Microsoft is the world's largest software maker measured by revenues. It is also one of the world's most

valuable companies.

Microsoft was established to develop and sell BASIC interpreters for the Altair 8800. It rose to dominate

the personal computer operating system market with MS-DOS in the mid-1980s, followed by the

Microsoft Windows line of operating systems. The company's 1986 initial public offering, and

subsequent rise in its share price, created an estimated three billionaires and 12,000 millionaires from

Microsoft employees. Since the 1990s, it has increasingly diversified from the operating system market

and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies

for $8.5 billion in its largest acquisition to date.

In the 1990s, critics began to contend that Microsoft used monopolistic business practices and anti-

competitive strategies including refusal to deal and tying, put unreasonable restrictions in the use of its

software, and used misrepresentative marketing tactics; both the U.S. Department of Justice and

European Commission found the company in violation of antitrust laws.


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3.2 PRODUCTS AT MICROSOFT

Examples of our cloud-based computing services

Microsoft Office 365, an online suite that enables people to work from virtually anywhere, at any

time, through simple collaboration and commu nication solutions, including Microsoft Office,

Exchange, SharePoint, and Lync.

YearProduct

19821985 Introducing Windows 1.0

19871992 Windows 2.02.11

19901994 Windows 3.0Windows NT

19952001 Windows 95

19982000 Windows 98, Windows 2000, Windows Me

20012005: Windows XP

20062008 Windows Vista

2009 Windows 7

2012 Windows 8


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Xbox LIVE service, which enables online gaming, social networking, and access to a wide range

of video, gaming, and entertainment content.

Microsoft Dynamics CRM Online, which provides solutions for sales, service, and marketing

professionals through a familiar Microsoft Outlook interface.

Bing, our Internet search engine, which finds and organizes the answers people need so they can

make faster, more informed decisions.

Skype, which allows users to connect with friends, family, clients, and colleagues through a

variety of devices.

Yammer, a social network for enterprises, allow users to stay connected to coworkers and

information, and to collaborate more effectively with team members.

The Azure family of platform and database services, which helps developers connect

applications and services in the cloud or onsite. These services include Windows Azure, a

scalable operating system with computing, storage, hosting, and management capabilities, and

Microsoft SQL Azure, a relational database.


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CORPORATE CITIZENSHIP

As an industry leader and the world's largest software company, Microsoft has a responsibility to act as

a good corporate citizen. Whether it is complying with local laws and regulations, demonstrating ethical

business standards, mitigating risks to the environment, or protecting human rights, Microsoft is

committed to being a global leader in corporate responsibility.

Corporate citizenship is also core to the Microsoft business strategy and the way that we interact with

customers, partners, governments, and employees. It is a way of doing business that recognizes the

effect that Microsoft has on society and the effect that society has on our business.

Microsoft is committed to serving communities and working responsibly. Through our partnerships, our

technology innovations, our people and our resources we are proud to help solve societal challenges and

create economic opportunities.

"Good citizenship is just good business. It's the right thing to do. It's who we are as a company.

It's our commitment to communities around the world. It's really that simple." - Kevin Turner,

Microsoft Chief Operating Officer


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CHAPTER-4

CSR INITIATIVES


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Our Commitment to Citizenship

Our commitment to citizenship is brought to life by the work we do in servingcommunities, championing the growth of our people, and meeting our commitment to

responsible business policies and practices. Steve Ballmer

ENVIRONMENTAL SUSTAINABILITY

Microsoft is at pole position in the world technology scenario and has been leveraging this opportunity

to address the globally pressing issue of environmental sustainability. This has been on Microsofts

agenda for a long time and some key technological innovations in the recent years have been aimed at

improving the present without negatively impacting the future environment.

Microsoft has devised a three-pronged campaign aimed at revolutionizing technology practices across

the board. The three initiatives within the environmentally sustainable campaign are:

Enabling customers to think green:The end user has always been a focus area for all the initiatives at

Microsoft. The initiatives geared towards customers and businesses are:

Helping customers reduce their energy usage:

PC Challenge: Microsoft makes PCs greener with the help of latest desktop operating systems to

assist with efficient power management. Windows 7 is built with enhanced power management

systems. The software provides tools to troubleshoot power management concerns, thereby

delivering energy saving while also improving performance, battery life and user experience.

Server Side Issues: With the constant technological development of servers, electricity

requirements also increase proportionately. Windows Server 2008 enables power savings of up

to 10 percent over Windows Server 2003 when run on the same hardware at comparable levels of

throughput.


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Cloud: Microsoft enables organisations to save energy and carbon by shifting to its cloud based

platforms for collaboration and communication thereby enhancing the business service

capabilities.

Identifying Inefficiencies: Microsoft helps companies identify IT inefficiencies, develop an

informed strategy and assess infrastructure for opportunities to improve efficiencies.

4.1YOUTHSPARK

The world stands at a crossroads. While there are younger people on the planet than ever before, youth

unemployment is double that of the adult population. Todays young people face an opportunity divide

a gap between those who have the access, skills and opportunities to be successful and those who do not.

Closing this opportunity divide is one of the most important actions we can all take to secure the future

of our youth. Microsoft YouthSpark is a companywide initiative designed to create opportunities for

youth around the world. Through partnerships with governments, nonprofits and businesses, we aim to

empower youth to imagine and realize their full potential by connecting them with greater education,

employment, and entrepreneurship opportunities. We want to empower youth to change their world.

Empowering YouthTransforming Education & Expanding Digital Inclusion

Partners in Learningis a long-standing program that provides professional development to educators

to help them with new approaches to teaching and learning, using technology to help students develop

21st century skills. Partners in Learning has equipped more than 741,000 government school teachers in

India with IT skills through Project Shiksha.


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Project Jyoti , provides learning for young adults, especially women, in rural and underserved

communities, through Community Technology Learning Centers (CTLCs). Run in partnership with 14

NGOs currently, Project Jyoti supports 1,425 learning centers, which have trained 462,000 persons in IT

skills till date.

Office365is free for all students and teachers around the world and provides ready access to technology

tools that power learning and collaboration: email, instant messaging, group video and voice chat, and

online document viewing and editing.

Microsoft Learning is a comprehensive program which is aimed at developing the skill sets and

enhancing the employability of the students and IT professionals through training and certification.

Through this program Microsoft provides a diverse range of offerings including- classroom training, e-

learning, certification, Microsoft Press books, skills assessments and more, to address the need gaps

among the students and professionals. Every year, more than 100,000 people are certified; and in the last

14 years, the program has impacted over 1 million people. There are more than 400 ITAs currently in

the country.

ImagineUnleashing Future Innovations

DreamSpark is a program under which students are provided access to the latest Microsoft software

designer tools at no charge. The program means to equip a new generation of technology leaders with

the knowledge and tools they need to harness the magic of software to improve lives, solve problems


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and catalyze economic growth. The DreamSpark initiative in India is designed to join the dots between

software access, which means making training and enablement complement simple access to technology

In India, 4.5 million students have already gained access to the latest MS tools.

Imagine Cup is the worlds premier youth technology competition, providing an opportunity for high

school and university students to learn new skills and apply their knowledge and passion to develop

technical solutions for some of the worlds toughest problems. 50,000 students from India participated in

last years contest.

RealiseIncreasing Employability & Entrepreneurship

Imagine Cup Grants are a direct output of the Imagine Cup competition, these grants are given to a

select number of winning student teams to help them take their project to the next level through a

comprehensive grant of cash, software and mentoring support.

BizSparkgives software startups access to Microsoft software development tools and connections with

key industry players, including investors, help young entrepreneurs starting a new business. In three

years, the program has provided professional software at no charge to 2,000 startups, and 2725 startup

members.


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SERVING COMMUNITIES

At the heart of Microsoft efforts is the passion of its employees, who generously donate their time and

money to causes around the world. This year, the 30th year of our employee giving campaign, we met

an exciting milestone$1 billion in employee contributions and Microsoft matching gifts to more than

31,000 nonprofits since 1983.

Launched in September 2012, Microsoft Youth Spark initiative is also a major focus of our community

work. Through partnerships with governments, nonprofits, and businesses, they are working to empower

young people to imagine and realize their full potential by connecting them with greater education,

employment, and entre-premiership opportunities.

Furthermore, Microsoft donate, on average, $2 million a day in software to more than 70,000 nonprofits

around the worldone of many ways our technology and resources help nonprofit organizations serve

individuals and communities in need.


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Microsoft Corp. has announced the global availability of Office 365 for Nonprofits for qualifying

nonprofits and nongovernmental organizations (NGOs) through its software donation program.

The donation is available immediately in 41 countries around the world and for up to 90 countries by

July 2014.

Microsoft said that it is donating to nonprofits and NGOs access to Microsofts best-in-class cloud-

based productivity and collaboration tools, enabling them to spend fewer resources and time on IT and

focus on their missions addressing global issues, such as disease eradication, education and literacy, and

environmental sustainability.

Nonprofits operate in the same way as any other organization or business; however, many lack the

resources to implement the latest technology. The donation of Office 365 allows them to be more

effective and efficient in the work they do. said Jean-Philippe Courtois, president, Microsoft

International.

In a study by Microsofts software donation partner TechSoup Global, nonprofits reported that the top

four advantages of cloud computing are easier IT administration (79 percent), cost savings (62 percent),

improved collaboration (61 percent) and data security (54 percent).

Office 365 for Nonprofits provides nonprofits and NGOs with access to Microsofts Microsofts

donation of Office 365 for Nonprofits is part of the companys 30-year history of community support. In

fiscal year 2013 alone, Microsoft donated $795 million (fair market value) in cash, software and services

to 70,286 nonprofits in more than 115 countries around the world.


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REPORT HIGHLIGTHS

Increased software donations to 13 percent more nonprofits in FY13, empowering 70,286

organizations globally. We now have software donation programs in 117 countries around the

world

Provided $795 million worth of software to non-profits around the world including

matched donations through our employee giving program.

Launched new software donation programs in Austria, Indonesia, and Vietnam through

our partnership with TechSoup Global.

Developed a pilot program to help nonprofits implement Microsoft Office 365, a cloud-

based software solution that provides email, productivity, and collaboration tools in the familiar

Microsoft Office format. We will launch the full Office 365 for Nonprofits program in FY14.


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ACTIVITIES

To maintain its status as a charitable foundation, it must donate funds equal to at least 5% of its assets

each year.Thus the donations from the foundation each year would amount to over US$1.5 billion at a

minimum

The Foundation has been organized, as of April 2006, into four divisions, including core operations

(public relations, finance and administration, human resources, etc.), under Chief Operating Officer

Cheryl Scott, and three grant-making programs:

Global Health Program

Global Development Program

United States Program

GLOBAL HEALTH PROGRAM

The Global Health Program's significant grants include:

Polio eradication

The Foundation provides 17% (US$86 million in 2006) of the world budget for the attemptederadication of poliomyelitis (polio).

The GAVI Alliance

The foundation gave the GAVI Alliance (formerly the Global Alliance for Vaccines andImmunisation) a donation of US$750 million on January 25, 2005.


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Children's Vaccine Program

The Children's Vaccine Program, run by the Program for Appropriate Technology in Health (PATH),received a donation of US$27 million to help vaccinate against Japanese encephalitis on December 9,2003.

University of Washington Department of Global Health

The foundation provided approximately US$30 million for the foundation of the new Department ofGlobal Health at the University of Washington in Seattle. The donation promoted three of theFoundation's target areas: education, Pacific Northwest and global health. The foundation also leads astudy to increase access to high education globally.

HIV Research

The foundation has donated a grand total of US$287 million to various HIV/AIDS researchers. Themoney was split between sixteen different research teams across the world, on the condition that they

share their findings with one another.

Aeras Global TB Vaccine Foundation

The foundation gave the Aeras Global TB Vaccine Foundation more than US$280 million to developand license an improved vaccine against tuberculosis for use in high burden countries.

Cheaper high-tech TB test

In August 2012, the foundation, in partnership with PEPFAR (United States Presidents EmergencyPlan for AIDS Relief), USAID (United States Agency for International Development), and UNITAID(an international drug purchasing facility hosted by WHO), announced they had finalized an agreementto reduce the cost of a commercial TB test (Cepheids Xpert MTB/RIF run on the GeneXpert platform)from $16.86 to $9.98. This test can take the place of smear microscopy, a technique first developed inthe 1880s by Robert Koch. Smear microscopy often does not show TB infection in persons who are alsoco-infected with HIV, whereas Xpert MTB/RIF can show TB in the co-infected patient. In addition, the


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GeneXpert system can show whether the particular TB strain is resistant to the antibiotic rifampicin,which is a widely accepted indicator of the presence of multi-drug resistant tuberculosis.

Visceral Leishmaniasis Research

The foundation awarded the Hebrew University of Jerusalem Kuvin Center for the Study of Infectiousand Tropical Diseases a US$5 million grant in 2009 for research into visceral leishmaniasis, anemerging parasitic disease in Ethiopia where it is frequently associated with HIV/AIDS, and a leadingcause of adult illness and death. The project is a collaborative effort with Addis Ababa University andwill gather data for analysis to identify the weak links in the transmission cycle and devise methods forcontrol of the disease.

The foundation has also given The Institute for One World Health a donation of nearly US$10 million tosupport the organization's work on a drug for visceral leishmaniasis.

Next Generation Condom

The foundation is offering $100,000 to the scientist who can develop an improved condom,one that

"significantly preserves or enhances pleasure, in order to improve uptake and regular use" according to

the Gates Foundation's Grand Challenges in Global Health website. The condom challenge is one of five

health initiatives put forward in Round 11 of the Grand Challenges Explorations, a program that rewards

innovative, unorthodox approaches to global health and disease prevention.

Neglected tropical diseases

The foundation took the initiative of the WHO-inspired project called London Declaration on Neglected

Tropical Diseases launched on 30 January 2012 in London, and had allocated a 5-year US $363 million

commitment, the largest funding for the project. The programmer is to eradicate or control 10 major

tropical diseases by 2020


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CSR INITIATIVE IN ASIA STRATEGY

Agricultural Development

Agricultural Development is one of the largest initiatives of the Bill & Melinda Gates Foundation. To date, we

have committed more than US$2 billion to agricultural development efforts, primarily in Sub-Saharan Africa and

South Asia. Our approach is based on the following principles:

1. Listening to farmers and addressing their specific needs. We talk to farmers about the crops they

want to grow and eat, as well as the unique challenges they face. We partner with organizations

that understand and are equipped to address these challenges, and we invest in research to

identify relevant and affordable solutions that farmers want and will use.

2. Increasing farm productivity. We support a comprehensive approach to helping smallholder

farmers prosper that includes access to heartier seeds, more effective tools and farm management

practices, locally relevant knowledge, emerging digital technologies, and reliable markets. We


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also advocate for agricultural policies that support farmers in their efforts to better feed

themselves and their communities.

3. Fostering sustainable agricultural practices. In an era of increasingly scarce resources and

growing impact of climate change, we encourage farmers to embrace and adopt sustainable

practices that help them grow more with less land, water, fertilizer, and other costly inputs while

preserving natural resources for future generations.

4. Achieving greater impact with partners. We are committed to communicating our strategy more

effectively and sharing what weve learned with grantees and other partners, including

governments, nongovernmental organizations, traditional and emerging donors, and the private

sector. Our resources, while significant, represent only a fraction of what is needed.

Collaborating effectively with others maximizes our collective impact in helping farming

families.

The Opportunity

Helping farming families increase production in a sustainable way, and sell more crops, is the most

effective way to reduce hunger and poverty over the long term.

When farmers grow more food and earn more income, they are better able feed to their families, send

their children to school, provide for their familys health, and invest in their farms. This makes their

communities economically stronger and more stable.

Helping farmers improve their yields requires a comprehensive approach that includes the use of seeds

that are more resistant to disease, drought, and flooding; information from trusted local sources about

more productive farming techniques and technologies; greater access to markets; and government

policies that serve the interests of farming families.


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TOBACCO CONTROL

The Bill & Melinda Gates Foundation supports advocacy at the country level for full implementationand enforcement of FCTC provisions. We work with our partners to convey the benefits of tobaccocontrol policies and thereby reduce tobacco-related death and disease in developing countries. Ourefforts are focused on Africa, China, and Southeast Asia.

Bill Gates and Michael Bloomberg have called on government and business leaders to make the fightagainst tobacco use a higher priority.

Our strategy is centered on three priorities:

Supporting implementation and enforcement of proven tobacco control policies: tobaccotaxation, advertising bans, graphic warning labels, and smoke-free environments

Supporting social marketing c

strategic management csr

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