Corporate Social Performance of Indian FMCG Companies

48 Pages Posted: 25 Apr 2010

See all articles by Saeed Khan

Saeed Khan

Jamnalal Bajaj Institute of Management Studies

Date Written: November 5, 2009


Effective Corporate Social Responsibilities (CSR) initiatives are those which are taken keeping all the stakeholder’s issues in mind including the legal, ethical, commercial and other expectations society has for business. There are many definitions of CSRs available.

Many factors have led to companies paying attention to the CSR activities. These include:

• Sustainable development • Globalization • Governance • Corporate sector impact • Communications • Finance • Ethics • Consistency and Community • Leadership • Business Tool

Potential benefits of implementing a CSR approach by them are better anticipation and management, improved reputation management, enhanced ability to recruit, develop and retain staff, improved innovation, competitiveness and market positioning, enhanced operational efficiencies and cost savings, improved ability to attract and build effective and efficient supply chain relationships, enhanced ability to address change, more robust “social license” to operate in the community, access to capital, improved relations with regulators, a catalyst for responsible consumption.

The CSR Framework given by the World Economic Forum Global Corporate Citizenship points out below:

1. Provide leadership 2. Define what it means for your company 3. Make it happen 4. Be transparent about it

CSR initiatives in India are now taken by many companies. Especially for the FMCG companies, where the major challenge is reduction of packaging materials, these companies are doing work in the field of Environment, Health care, Education, Community welfare, Women's empowerment and Girl Child care. Companies like Hindustan Unilever started CO2 reduction also. The websites of these companies are providing information about their CSR initiatives but are found not updated regularly. For checking their CSR performance, Karmayog Rating is taken. The rating gives good insight. The method of calculating the rating is also discussed.

Keywords: CSR, Corporate Social Performance, Karmayog

JEL Classification: D63

Suggested Citation

Khan, Saeed Ahmed, Corporate Social Performance of Indian FMCG Companies (November 5, 2009). Available at SSRN: or

Saeed Ahmed Khan (Contact Author)

Jamnalal Bajaj Institute of Management Studies ( email )


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