CORPORATE SOCIAL RESPONSIBILITYIN TELECOMMUNICATION INDUSTRIES

IN INDIA

Submitted by:SISHMITA KUMARI

Div: B PRN no.:13010224087 Class: BBA LLB

SAHIL SHARMADiv: B PRN no.:1301022410 Class: BBA LLB

MAYANK AGGARWAL Div: B PRN no.:13010224125 Class: BBA LLB

Of SYMBIOSIS LAW SCHOOL, NOIDASYMBIOSIS INTERNATINAL UNIVERSITY, PUNE

INSEPTEMBER, 2013

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UNDER THE GUIDANCE OFAnkur Jain

FUNDAMENTAL OF BUSINESS ORGANIZATION FACULTY

Certificate

The project entitled “CORPORATE SOCIAL RESPONSIBILITY IN TELECOMMUNICATION INDUSTRIES IN INDIA” submitted to Symbiosis Law School, NOIDA for Fundamental of Business Organization as a part of internal assessment is based on my original work carried out under the guideline of Ankur Jain fromJuly 16 to sept, 29. The case study has not been submitted elsewhere for award of any degree.

The material borrowed from other sources and incorporated in the thesis has been duly acknowledge.

I understand that I myself could be held responsible and accountable for plagiarism, if any, detected later.

Sishmita Kumari Sahil Sharma Mayank Aggarwal

BBA LLB BBA LLB BBA LLB

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Div: B Div: B Div: B

PRN No.: 13010224087 PRN No.:13010224107 PRN No.:13010224125

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Acknowledgement

The case analysis had been done under the guidelines of Ankur Jain Ma’am, without whose support and encouragement we couldn’t complete this project.

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Index

Cover page – 1

Certificate - 2

Acknowledgement -3

Introduction -5

Telecommunication in India-7

Corporate Social Responsibility- 8

Issues and Challenges- 12

Recommendation -13

Conclusion -14

Reference- 15

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1. INTRODUCTION

Dispatch of Data over distances such like mobile phone,

earth-line, satellite phone, voice over internet protocol are

part of telecommunication. In general reference, previously

the modes of telecommunication were very meager and the

telecommunication used to be through pigeon, in writing and

through lamp signals. With the emergent of technologies,

initially the telecommunication was possible through Landline

which comprised of telephone, telegraph and by lapse of time

and improvement in the technologies; radio, televisions,

mobile phones and phone over internet protocol were

introduced in the technologies of telecommunication. Today

the telecommunication is major source of communication while

moving around which has become essential for everybody to

have benefit of modern technologies, organization evaluated

through telecommunication, such like older time when morse

code and signal lamps were used in communicating. Today the

communication through phone, on account of modern

technologies by sitting thousands of thousands miles away,

one can have the communication in a very few seconds. The

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telecommunication technologies have made it possible for the

communication of data and other relevant factors when man

first stepped on the moon. Voyager two spacecraft, sending

wireless waves i.e. voyaged roughly three billion miles (4.8

billion km) in a few minutes. Development in the

telecommunication exchanged the climates beyond our measure

and now enormous waves are available to see, hear on the

other side of the world in the real time. Starting from TV,

Radio, and telephone shifted to video calling, fiber optics,

satellite and internet. Telecommunication industry is one of

the fastest growing industries in the world today. The said

industries are getting revenue in thousand of crores every

year. The telecommunication is also helpful for economic

growth and development. In the entire world, the

telecommunication industry has grown several folds in the

last one decade. Presently, the telecommunication industry

deals with providing with mobile phone services 3G, 4G mobile

data etc., internet services such as, Wi-Fi, broadband and

media service such as digital television, internet on

television etc. As such, in today’s word the

telecommunication is instrumental in development, growth and

communication from one part of the world to other part of the

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world. The three countries, namely, China, India and Russia

are in list of top 10 in the world in the telecommunication

market.

2. TELECOMMUNICATION IN INDIA

2.1 Telecom Regulatory Authority of India – Telecom

Regulatory Authority of India (TRAI) is responsible for all

the issues relating to the telecom within India. Telecom

Regulatory Authority of India has been established under the

Law enacted by the Parliament and is responsible for

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management in every aspect of the telecommunication and

information technologies industries in India. Telecom

Regulatory Authority of India is also responsible for giving

licence to the corporate bodies in accordance with the rules

and regulations framed by the TRAI. TRAI also responsible for

changing rules and regulations regarding dealing with the

customers and also to look after that the Corporate Body to

whom the license had been issued for running the

telecommunication in India perform as per rules and

regulations framed by the TRAI. In case of any violation,

heavy penalties are imposed by the TRAI against the said

defaulting Corporate Body in India. Presently, Airtel,

Vodafone, Idea, MTS, Reliance, Tata are the major companies

dealing in the telecommunication industries to whom the

licenses have been issued by the TRAI.

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3. CORPORATE SOCIAL RESPONSIBILITY

3.1 Social Responsibility -Social responsibility is duty

which every individual or organization has to perform so as

to maintain and balance between the economic and eco system.

A trade always exchange between the economic development in

the material senses and the welfare of the society and

environment sustainable equilibrium between two, is called

Social responsibility, which does not pertain to the business

or the organization but also to everyone, whose action impact

the environment. Management only feels their social

responsibility is to first maximize the profit but the social

responsibility goes beyond making the profit and includes to

protect and improving the societies welfare of the

stakeholder, groups, shareholders customers, employees, Govt.

and societies without effect and re-effect by the

organization policies, decision, operation of their

industries must be considered for a long term responsibility.

3.2 Meaning of Corporate Social Responsibility

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Corporate Social Responsibility means as to how the

corporate manages its profit to enhance satisfaction of

peoples in their planets. There are triple bottom lines which

are referred commonly as three P’s which means peoples,

planets and profit. Three P’s are three pillars to measure

organizational and social success. The Corporate Social

Responsibility is continuing commitment by business to behave

ethically towards contribution and economic development while

improving the quality like the workforce and their families

as well as of the local community and society at large. The

world business council for sustainable development defines

CSR as operating business in the manner that mode or ethical,

legal, commercial and public expectation that society has of

business. The company voluntarily sometimes decides to

contribute better society and cleaner environment and as such

they integrate the social environment concern in their

business.

3.3 Benefit of CSR - Benefit of CSR is that an innovation

has huge benefit to the company and society. They are cost

saving for company to engage any aspect to use it as way to

cut cost either by way of using less packaging or less energy

saving things. Brand condition is one of the prime reasons

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being embarrassed the CSR. Long term thinking is also

responsibility of the Corporate Sector for ensuring the

future sustainability of the company. In case of getting

financial result, the business decision is changed from time

to time. If an employee of the Corporate is not having

knowledge, what is going on within the organization in which

he is working and an opportunity is being missed for creating

sustainability action against the non-working and as such, it

is necessary to activate the employee in communicate service

as priority to the company CSR in managing the economic

corporate social responsibility is important for Government

and service providers as they promises and combat the social

issue within the changed welfare environment. Benefit of

engaging in CSR is involved to improve the financial

performance, reduce costs and improve profitability, reduce

risk in the new product, new market, performance and

enhancement of corporate reputation, improve Govt. relations,

reduce pressure. There are four polices of CSR i.e. strategy,

governance human capital, shareholder capital and

environment.

3.4 Research Methodology - Requirement of objective of

studies, research design, apply for studies of description

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type, this research design was depicted to have corporate

accuracy and depth of research study.

3.5 Literature Review

Review for preparing the present papers, earlier

written papers have been taken into consideration. Reference

taken from different papers for preparation of present

project. CSR strategy focusing on protection rather than

competitive advantage. Avoiding regularity, liability will

not lead to current competitive advantage or any imagination

of future business modal. License to operate is for keeping

the main capability, ethical behavior, social accountability

and stakeholder management for attaining the sustainable

strategy for competitive advantage, an organization needs an

advance capability of organizational learning sustainable

innovation. Two capabilities will lead to the future

sustainable competitive advantage. CSR has done long way in

India from responsive activities to sustain initiative,

corporate have clearly accepted their possibility to make

sequence differences in the society and improve over the

quality of life. In the current social situation in India,

one single entity cannot bring out in change as scaled so

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enormous. Bharti Airtel Limited is a leading global

telecommunications company with operations in 20 countries

across Asia and Africa. Headquarter in New Delhi, India, the

company ranks amongst the top 4 mobile service providers

globally in terms of subscribers. In India, the company's

product offerings include 2G, 3G and 4G wireless services,

mobile commerce, fixed line services, high speed DSL broadband,

IPTV, DTH, enterprise services including national &

international long distance services to carriers. In the rest

of the geographies, it offers 2G, 3G wireless services and

mobile commerce. Bharti Airtel had over 269 million customers

across its operations at the end of March 2013. Reliance

Group’s flagship company, Reliance Communications, is India's

largest private sector information and communications company,

with over 150 million subscribers. It has established a pan-

India, high-capacity, integrated (wireless and wire line),

convergent (voice, data and video) digital network, to offer

services spanning the entire infocom value chain.

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4. ISSUE AND CHALLENGE

Many corporate feels that the issue of their business and

customers satisfaction is more important for them and they

imagine that the customers satisfaction is only about the

price and service, but they failed to point out the important

change that has taken place worldwide that could below

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business out of the water. The said change is named as social

responsibility which is an opportunity for the business. Some

of the drivers putting business towards CSR include shrinking

role of the Govt. Demand of Corporate disclosure; increase

customers interest; growing investor pressure; competitive

labour market; supplier relations; survey conducted by Group

and other CSR houses, simple size of 250 companies involved

in CSR activities through modes of online method

questionnaire. The said questionnaire was drafted after the

due diligence focusing the group meetings, consultations with

key stakeholders and pilots in four Metros. Only 82

organizations responsible to the questionnaire which includes

11 public sector undertaking, 39 private national agencies

and 32 private multi-national organization. After survey the

following challenges were listed as below:

i). Lack of community participation in CSR activities.

ii) Need to build local capacities;

iii) Issue of transparency, non availability of well

organized, non-governmental organizations, visibility factor,

enormous perceptions towards CSR initiatives, non

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availability of clear CSR guidelines, lack of consensus,

implementation of CSR issue.

5. RECOMMENDATIONS

To crystallize the future of CSR in India, it is

necessary that time bound steps be taken to mainstream it.

There is a need for creation of awareness about CSR to the

General public to make CSR initiatives more effective. The

said awareness can be given through media, which still would

not affect the changes in the approach and attitude of the

public towards CSR initiative undertaking by corporate house.

In result to motivate the corporate house to join league of

CSR. Partnership between the stake holders including to

provide sector employees and legal communicate, Govt. and

social in general are either not effected or not effectual

operation at grass root leveled in CSR domain. The only media

and the corporate sector houses are involved in CSR

activities that too in a geographical area. A complaint

should be lodged to spread the awareness on CSR issue amongst

the general public, which will ultimately help the CSR

reaching out to other locality etc. The partnership between

the Government and the other industries group must be there.

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6. CONCLUSION

The Corporate Legal social responsibility is not in respect

of any particular country or area but is a formal reach on

the global business agenda, corporate action are required to

overcome obstacle in attaining the objective of corporate

social responsibility. Transparency in dial-up can help the

business powers more trustworthy and push-up standard of

their organization on the same time. When a business adopts

policy of social responsibility there are benefit that

company will get benefit of improved financial performance,

lower operating cost, increase the brand image and

reputation, increase will power of customers, loyalty

corporate profitability and equity, more availability to

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protect their employees, reduce regularity over sight,

protect safety and decreased the liability. Benefit to

communicate the general public will be charitable

contribution as the employee voluntarily program corporate

involvement in communication, education and homeless program

and environmental benefit would be corporate material,

recycling, better productivity, durability, corporate house

and renewal resources.

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2. Professor Leo Burke, Associate Dean and Director, Executive Education, Notre Dame University, USA.

3. CREM-Report, nr. 03.650.

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5. ACCSR’s State of CSR in Australia Annual Review 2010/11.

6. http://www.chillibreeze.com/articles_various/CSR-in-India.asp.

7. Trust and Corporate Social responsibility: Lessons from India by Ashwani Singla, Chief Executive Officer, & Prema Sagar, Founder & Principal, Genesis Public Relations Pvt. Ltd.

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24, 2, May 2010, page 6-24.

13. CSR in India: Some Theory and Practice in Wall Street Journal dated Thursday, April 23, 2009.

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14. “Desirable Corporate Governance: A Code”, established in April 1998.

15. www.k4d.org/Health/sustainable-development-challenges-and-csr-activities-in-india.

16. Feltus, C.; Petit, M.; Dubois, E. (2009). Strengthening employee's responsibility to enhance governance of IT: COBIT RACI chart case study, Proceedings of the first ACM workshop on Information security governance (WISG'09), Chicago, Il, USA. Strengthening employee's responsibility to enhance governance of IT: COBIT RACI chart case study ISBN 978-1-60558-787-5

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