DISSERTATION On “Impact of CSR Activities on Customer’s Perception about the Organization and sales of their Products/services - A case study on HUL, ITC and P&G” Report Submitted in partial fulfillment of Post Graduate Diploma in Management Under Supervision of Prof. NIDHI SHARMA Faculty of GLBIMR Submitted by ANIL KUMAR TIWARY Roll No - GM012 Batch 2010-12 Submitted to
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DISSERTATION
On
“Impact of CSR Activities on Customer’s Perception about the Organization and sales of
their Products/services - A case study on HUL, ITC and P&G”
Report Submitted in partial fulfillment of Post Graduate Diploma in Management
Under Supervision of
Prof. NIDHI SHARMA
Faculty of GLBIMR
Submitted by
ANIL KUMAR TIWARY
Roll No - GM012
Batch 2010-12
Submitted to
G.L.Bajaj Institute Of Management and Research
Plot No. 2, Knowledge Park III, Greater Noida- 201306
contour trenching over 100 hectares and five permanent check dams. More than 350 families are
reaping the second crop, which is made possible by the check dams.
The total land under cultivation during the second crop season is approximately 470 acres. The
annual income of the farmers in the vicinity of the five check dams has increased from an
average of INR 36,000 to approximately INR 85,000, per farmer. This success has been
attributed to the availability of well water during the Rabi season and an increase in the water
level during the Kharif season. Hence, along with reaping a Rabi crop, the farmers have also
been able to almost double the yield of the Kharif crop. This initiative received appreciation at
the Johannesburg World Summit on Sustainable Development.
Project Silvassa
In April 2004, Vanarai and HUL started a project in Karchond and later in Dapada, Pati, Sindoni,
and Silvassa. Till March 2010, the project has made an impact on water and soil conservation.
The project has ensured sustainable development of water and land resources, locals have
attained self-sufficiency in basic needs of food, water, fodder and fuel, and local employment
opportunities have been generated through increased economic activity.
The other highlights are:
- More than 67 million litres of water have been harvested since 2004
- Additional income of INR 160 lakhs was accrued to villagers during project period
- 325 families have benefited under various programmes, 130 families now have
access to the public toilet facility
- Soil conservation treatment has been carried out on 282 hectares of land
- 12,000 mango seedlings have been planted
- 22 bore wells and 20 open wells were recharged
Project Puducherry
In 2008-09, HUL's Puducherry unit partnered with DHAN Foundation, Madurai and identified
eight village ponds for renovation to enhance the water availability. One of the unique aspects of
the project was to form social capital by organizing villagers into pond association and empower
them to execute the physical renovation work. The pilot project has improved water availability
in eight village ponds by harvesting monsoon run-off. Rainwater harvesting storage of 22300 cu.
meter has fulfilled the multiple domestic needs of 4519 households in eight hamlets and 346
acres are now irrigated due to the rejuvenation of ground water.
SHAKTI - Changing Lives in Rural India
Shakti is HUL's rural initiative, which targets small villages with population of less than 2000
people or less. It seeks to empower underprivileged rural women by providing income-
generating opportunities, health and hygiene education through the Shakti Vani programme, and
creating access to relevant information through the iShakti community portal.
In general, rural women in India are underprivileged and need a sustainable source of income.
NGOs, governmental bodies and other institutions have been working to improve the status of
rural women. Shakti is a pioneering effort in creating livelihoods for rural women, organised in
Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides
critically needed additional income to these women and their families, by equipping and training
them to become an extended arm of the company's operation.
Health & Hygiene Education
Lifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which was started in
2002. LBSC was initiated in media dark villages (in UP, MP, Bihar, West Bengal, Maharashtra,
Orissa) with the objective of spreading awareness about the importance of washing hands with
soap.
The need for a program of this nature arose from the fact that diarrhoeal diseases are a major
cause of death in the world today. It is estimated that diarrhoea claims the life of a child every 10
seconds and one third of these deaths are in India. According to a study done by the London
School of Hygiene and Tropical Medicine, the simple practice of washing hands with soap and
water can reduce diarrhoea by as much as 47%. However, ignorance of such basic hygiene
practices leads to high mortality rates in rural India.
Economic Empowerment of Women
The Fair & Lovely Foundation is HUL's initiative which aims at economic empowerment of
women across India. It aims to achieve this through providing information, resources, inputs and
support in the areas of education, career and enterprise. It specifically targets women from low-
income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on the economic
empowerment platform and the Foundation is an extension of this promise. The Foundation has
renowned Indian women, from various walks of life, as its advisors. Among them are
educationists, NGO activists, physicians. The Foundation is implementing its activities in
association with state governments.
Special Education & Rehabilitation
Under the Happy Homes initiative, HUL supports special education and rehabilitation of
children with challenges.
Ankur:
In 1993, HUL's Doom Dooma Plantation Division set up Ankur, a centre for special education of
challenged children. The centre takes care of children with challenges, aged between 5 and 15
years. Ankur provides educational, vocational and recreational activities to over 35 children with
a range of challenges, including sight or hearing impairment, polio related disabilities, cerebral
palsy and severe learning difficulties.
Kappagam:
Encouraged by Ankur's success, Kappagam ("shelter"), the second centre for special education of
challenged children, was set up in 1998 on HUL Plantations in South India. It has 17 children.
The focus of Kappagam is the same as that of Ankur.
Anbagam:
Yet another day care center, Anbagam ("shelter of love"), has been started in 2003 also in the
South India Plantations. It takes care of 11 children. Besides medical care and meals, they too are
being taught skills such that they can become self-reliant and elementary studies.
Other Community initiatives:
Providing healthcare
Sanjivani Mobile Medical Facility:We started Sanjivani, a mobile medical service in 2003, to
offer effective medical care in villages surrounding our Doom Dooma factory in Assam. The
objective has been to meet the basic medical needs of people living in the remote villages in
Assam through a free mobile medical facility.
Apart from basic medical services, Sanjivani also spreads awareness about hygiene, child
immunisation, family planning etc. The project covers a radius of 40 km around the factory with
two mobile vans equipped with basic medical equipment and a specialised team comprising one
male and one female doctor, two nurses, a medical attendant and drivers. On an average, 400
Sanjivini medical camps are conducted every year in remote villages surrounding our factory.
The project is run in close co-ordination with the local administration and its progress is
reviewed every quarter.
Assisting women through education
Fair & Lovely Foundation:Scholarships of up to INR 1 lakh have been awarded to those women
who do not have the financial strength to realize their dreams, but have the aptitude, drive, and
ambition to carve a place of pride for themselves in society. The scholarship which was awarded
only to postgraduate studies has now been extended to graduate students as well. Since 2003,
more than 790 scholarships have been awarded to women across India.
Disaster relief and rehabilitation
Floods, Bihar, 2008:We contributed 10,000 kits worth INR 60 lakh as the first installment of
material for immediate relief of the flood affected families in Araria District in Bihar. The kit
contained essential items such as utensils, clothes, blankets, and other useful material.
In all, 12 truckloads of material were distributed to the affected families under the guidance of
the Araria District Magistrate. A sum of INR 84 lakh was contributed by HUL and our
employees to rehabilitate the underprivileged amongst the flood-affected families in the village
of Jorgama, Madhepura district, Bihar. The project aims at theconstruction of 100 disaster proof
houses for the purpose of rehabilitation.
Tsunami, South India, 2006:We contributed over INR 10 crores towards the relief and
rehabilitation of tsunami-affected families by way of providing relief material, land, and
construction of facilities. We distributed nutritional and personal hygiene products worth INR 5
crores for immediate relief to the needy soon after the tsunami hit the region. Later, pursuant to a
request from the Government of Tamil Nadu about the urgent need for housing the affected
families, we donated 5.27 acres of land (market value on a conservative basis is INR 4.5 crores)
at Tondiarpet, Chennai, to the government. The complex has 960 permanent houses spread over
5.27 acres of land. Our employees also made a contribution of INR 50 lakhs which was used to
construct the facilities in the complex.
Caring for the vulnerable
Asha Daan: In 1976, HUL provided a 72,500 sq. ft plot for setting up Asha Daan in the heart of
Mumbai. This home is supported by the Missionaries of Charity and cares for abandoned and
challenged children, victims of HIV, and the destitute. We bear the capital and revenue expenses
for maintenance, upkeep, and security of the premises.
The needs of the abandoned/challenged children are met by the Sisters of the Home. Special
classes are arranged that teach the children basic skills, physiotherapy, etc. Whenever necessary,
we also arrange for corrective surgery in city hospitals. In 1995, we were able to open a ward for
female HIV positive patients, which was one of Mother Teresa's dearest desires.
CSR Initiatives by P&G
The entry of P&G into the field of corporate social responsibility with project PEACE – an
environmental education programme followed by FUTURE FOCUS – first ever career guidance
service. P&G experimented Cause Related Marketing with different projects like Project
DRISHTI where Whisper helped to restore eyesight to 250 blind girls through corneal transplant
operations in which P&G contributed Re 1 for every pack of whisper sold Project OPEN
MINDS to support and educate children across the Australia, ASEAN and the India (AAI)
region. For every large size pack of Vicks VapoRub, Whisper, Ariel Power Compact, Head &
Shoulders and Pantene purchased by consumers during November 1999 to January 2000,
P&G on behalf of consumers contributed the cost of one day’s education of a working child to
the ‘OPEN MINDS’ fund. In India P&G raised Rs. 1.25 crore for ‘OPEN MINDS’ which was
donated to UNICEF in February 2000 Project POSHAN to combat malnutrition in India. P&G
raised Rs. 50 lakhs by contributing Re. 1/- from sales of large size packs of Ariel, Whisper, Head
& Shoulders and Pantene sold in the months of May, June and July 2000 and
Project SHIKSHA – a unique CRM initiative in association with Sony Entertainment Television.
By purchasing packs of Vicks, Whisper, Ariel, Tide, Head & Shoulders and Pantene between
21st April – 12th June 2003, this unique education promotion allowed a mother to win Rs. 2
lakhs towards Graduate Education Fee of one child (24 such Prizes), or Rs. 5,000 towards Next
Year’s Tuition fee for one child (96 such Prizes), and a number of Consolation Prizes, all
courtesy P&G.
Pampers and UNICEF working together for healthy babies:
Every year, 59,000 people die from maternal and neonatal tetanus—a completely preventable
disease. So for the fourth year running, Pampers is teaming up with UNICEF to deliver the
vaccines that vulnerable women and their children need.The effort gets our consumers involved.
With the purchase of one pack of Pampers, one dose of the vaccine is donated. Our campaign has
created the highest awareness ever for maternal and neonatal tetanus, helping put the disease
back on the agenda of health authorities.Since 2006, a total of 100 million women and their
babies have been protected against maternal and neonatal tetanus. P&G and UNICEF have also
teamed up to offer P&G employees in Western Europe the opportunity to take a three-month
paid sabbatical and work with UNICEF. The program is aimed at employees who have always
wanted to undertake humanitarian work but have not had the chance before.UNICEF benefits
from the diverse backgrounds of P&G employees as they apply such skills as communications,
promotion, leadership training, and supply chain management. Although resource requirements
for UNICEF are ever-changing, three to four assignments are expected per year.
P&G and Shiksha :
India has the world’s largest population of uneducated children, with nearly half of all children
there not attending school. The Shiksha program (Shiksha - Hindu for "Education") is dedicated
to fighting that trend, helping to provide access to education for more children. The program
funds NGO efforts to address the underlying causes of poor access to education, such as poverty,
health issues, and access to immunization. In cases where schools don’t exist, the program also
funds their construction. Each time a consumer bought a large pack of any P&G brand in India
between April and June of 2010, part of the proceeds went toward leading children on the path to
education. Shiksha also benefits from the direct involvement of P&G employees. Each year,
employees participate in a Shiksha Walk-a-thon, joining their families and others in raising
awareness for the cause.
P&G Children’s Safe Drinking Water Program
Almost one billion people in the developing world do not have access to clean drinking water.
As a result, thousands of children die every day. The P&G Children’s Safe Drinking Water
(CSDW) Program reaches these people through PUR packets, a water purifying technology
developed by P&G and the U.S. Centers for Disease Control and Prevention (CDC). One small
PUR packet quickly turns 10 liters of dirty, potentially deadly water into clean, drinkable water.
The packets can be used anywhere in the world, including areas affected by natural disaster. This
Live, Learn and Thrive program provides PUR packets on a not-for-profit basis. Since the
program began, more than 3 billion liters of purified drinking water in more than 60 countries
have prevented an estimated 120 million days of diarrheal illness and helped save more than
16,000 lives.
CSDW works with over 100 partners to provide PUR packets. The program responds to
emergencies including cholera outbreaks, earthquakes, floods and other natural disasters. CSDW
and its partners provide clean drinking water in schools, outreach to mothers in health clinics,
and clean drinking water for malnourished children, and also help people living with AIDS to
live positively.
Disaster Relief at P&G
Our global disaster response approach allows us to respond quickly and effectively. Our first
concern is for the safety and welfare of our employees. Within hours, we are also in contact with
our humanitarian partners to understand the scope and impact of the crisis, and how best to
respond. The most immediate way we often help is to provide PUR Purifier of Water packets.
Natural disasters can leave places that typically have safe drinking water suddenly without it.
These packets transform dirty, unsafe water into clean drinking water in 30 minutes, so they can
be very useful in times of crisis. We have worked closely with several of our partners to
strategically place depots of PUR packets around the world, making them more readily available
when needed.
In addition to cash donations, we often provide products. From our soap and personal hygiene
products to our laundry, diaper and cleaning products, our brands can help restore a sense of
normalcy to the disrupted lives of those caught in the aftermath of a disaster.
CSR Initiatives by ITC
E-Choupal rural digital-physical infrastructure
ITC's globally awarded e-Choupal initiative is a powerful illustration of a unique business
model that delivers large societal value by co-creating rural markets with local communities.
The e-Choupal digital infrastructure enables even small and marginalised farmers in rural
India, who are de-linked from the formal market, to access relevant knowledge, market prices,
weather information and quality inputs to enhance farm productivity, quality and command
better prices - making them more competitive in the national and global markets. Customized
agri-extension services and farmer training schools through a focused programme - "Choupal
Pradarshan Khet" - enable farmers to access best practices in agriculture and improve
productivity.
Social & Farm Forestry
ITC procures wood pulp for its Paper and Paperboards business from renewable plantations
cultivated by tribals and farmers on their private wastelands. ITC invested in extensive R&D to
create clonal saplings which apart from being disease resistant, grow much faster and in harsher
conditions. A large number of tribals and marginal farmers have benefited by growing these
pulpwood saplings on their private wastelands. ITC's paperboards business is a willing buyer of
their produce, whilst the growers are free to sell to the highest bidder in the open market.
ITC could have taken the easier route by importing pulp, rather than a more difficult route of
mobilising tribals and marginal farmers which involved long gestation and substantial
investment exposure. However, the adoption of this more challenging route has not only created
a source of sustainable livelihoods for a large number of disadvantaged sections of society, but
has also brought a multiplicity of benefits by creating a large green cover that contributes
significantly to groundwater recharge, soil conservation and carbon sequestration.
Recently, ITC's social forestry project in Andhra Pradesh was registered under the Clean
Development Mechanism of the United Nations Framework Convention on Climate Change.
The carbon credits earned will also be shared with the tribals and farmers, enabling them to
participate in an international carbon market mechanism.
Integrated Watershed Development
Recognising the vital role that irrigation and water play in the rural economy, ITC supports the
creation of watershed projects in water-stressed areas, providing precious water resources for
agriculture, rural communities and livestock. Based on a participatory approach that involves
local communities, the programme facilitates building, reviving and maintaining water
harvesting structures as well as management of water resources to reverse land degradation,
provide critical irrigation and increase agricultural productivity.
Providing Supplementary Education
ITC's Supplementary Learning Centers offer additional coaching that backs up school learning,
stemming drop-outs and enabling more children to complete school. ITC also supports outreach
projects, including mobile libraries that foster the reading habit and a 'roaming laptop'
programme that promotes computer skills and interactive learning.
Economic Empowerment of Women
ITC's initiatives provide sustainable economic opportunities to poor women in rural areas by
assisting them to form microcredit self-help groups that enable them to build up small savings
and finance self-employment and micro-enterprises. A large number of women earn income as
self-employed workers or as partners in micro-enterprises. The programme has demonstrated that
extra income in the hands of women leads to significant and positive changes in human
development since it is spent largely on children's education, health and nutrition, and is a
catalyst for gendering development.
Livestock Development
ITC's livestock development programme assists rural households to upgrade livestock quality
through cross-breeding by artificial insemination to boost milk productivity by a factor of 6-9
times, leading to a threshold increase in household incomes and thereby an improvement in
their poverty status. Currently, these initiatives reach out to nearly 2,600 villages in 5 states.
Renewable Energy at ITC
ITC has adopted a conscious strategy to lower its carbon footprint, which has brought immense
benefits: over 30% of the Company's total energy consumption is from renewable sources and
carbon neutral fuels.
In keeping with its commitment to utilise an increasing component of renewable energy, ITC has
set up a 14 MW wind energy facility to provide power to the Company's packaging unit in
Chennai. Additional investments in wind energy, totalling over 25 MW, are also being made to
supplement the power requirements of the ITC Hotels in Mumbai and Chennai.
ITC Green Building
Providing leadership in positive environmental action, the "ITC Green Centre" in Gurgaon,
certified by the US Green Building Council for Leadership in Energy & Environmental Design
(USGBC- LEED) is one of the first and one of the largest commercial "Platinum Rated"
buildings in the world and continues to provide inspiration to the "greener buildings" movement
in India. At ITC Green Centre, energy consumption has been reduced significantly through
design integration. The building has been designed to maximise the use of natural light during
the day, largely eliminating the need for artificial lighting. At the same time, glass used for the
windows allows light in, but does not allow heat. This not only keeps the building cool from the
inside during the day, but also decreases the load on air-conditioners. There is minimum use of
exterior lighting to limit night sky pollution. Water consumption has been reduced by 40% and
with a water recycling plant, the building is now a zero water discharge building
DATA ANALYSIS
1. Reliability Test (Applying Cronbach’s Alpha)
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.704 9
Interpretation :
Cronbach's alpha is a measure of internal consistency, that is, how closely related a set of
items are as a group. Here the alpha coefficient for the nine items is .704, suggesting that
the items have relatively high internal consistency
Frequencies and Mean
Statistics
Age Gender Ed. Qulf Occupation Location
N Valid 100 100 100 100 100
Missing 0 0 0 0 0
Mean 2.19 1.43 2.48 1.98 1.26
For Age:Values are : Below 20 = 1, 21-30 = 2, 31-40 = 3, 41-5 0= 4
Age
Frequency Percent Valid Percent
Cumulative
Percent
Valid 2 82 82.0 82.0 82.0
3 17 17.0 17.0 99.0
4 1 1.0 1.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above table we can infer that in a sample size of 100 respondents, Maximum number of respondents were between the age group of 21-30 and least number of respondents of age group 41-50.
For GenderValues are : 1=Male, 2=Female
Interpretation :
From the above frequency analysis we can infer that out of the total sample of 100 respondents, 57% of respondents were male and 43% of respondents were Female
For Education Qualification :
Values are : 1 = Undergarduate, 2 = Graduate, 3 = Post Graduate
Ed. Qulf
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 15 15.0 15.0 15.0
2 22 22.0 22.0 37.0
3 63 63.0 63.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100
respondents, Maximum of the respondents i.e. 63% of the respondents were post graduate.
From the above frequency analysis we can infer that out of the total sample of 100 respondents,More than 80% of population were from delhi and rest from the NCR region.
Frequencies and mean
Statistics
fmcg pref. CSR must
Pref to Product
on basis of CSR CSR mkt tool
Prodct asso with
social cause
N Valid 100 100 100 100 100
Missing 0 0 0 0 0
Mean 2.31 2.04 2.32 2.38 2.67
Location
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 85 85.0 85.0 85.0
2 8 8.0 8.0 93.0
3 3 3.0 3.0 96.0
4 4 4.0 4.0 100.0
Total 100 100.0 100.0
Values for FMCG preference :
1 = HUL, 2 = ITC, 3 = P&G, 4 = DABUR, 5 = OTHERS
fmcg pref.
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 31 31.0 31.0 31.0
2 33 33.0 33.0 64.0
3 16 16.0 16.0 80.0
4 14 14.0 14.0 94.0
5 6 6.0 6.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 64% of sample population prefers the products of HUL and ITC. P&G and Dabur follows them.
CSR initiatives are must for every company? Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree
CSR must
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 28 28.0 28.0 28.0
2 47 47.0 47.0 75.0
3 18 18.0 18.0 93.0
4 7 7.0 7.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 75% of sample population agrees that CSR is must for every company as it contributes to the society.
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 62% of sample population, while purchasing a product, gives preference to products on the basis of CSR initiatives taken by the parent company.
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 50% of sample population believes that FMCG companies use CSR as a marketing tool
Products that you buy must be associated with any social cause?
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, more than 55% of sample population believes that product which they buy need not to be associated with any social cause.
Frequencies
Statistics
emotional
attachment
Aware of csr in
rural
Pref to company
doing CSR E-choupal Shakti
Project
khamgaon
N Valid 100 100 100 100 100 100
Missing 0 0 0 0 0 0
Mean 2.22 2.73 2.50 1.35 1.72 1.85
CSR initiatives make an emotional attachment with the consumer?
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents around 70% of the sample population believes that CSR initiatives make an emotional attachment with the consumers.
Aware of CSR initiatives taken by FMCG companies n rural areas?
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents around 2/3rd of the sample population is not aware about the various CSR initiatives taken by the FMCG companies. This is the main reason, why consumer’s perception about the organization doesn not changes despite of CSR initiatives taken by them.
Company that you don’t prefer starts doing CSR initiatives, Will it change your preference?
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 1/2 of the sample population(50%) believes their preference towards the companies will not change even if a company which they don’t prefer, starts doing CSR actitvities.
Awareness about the following initiatives
E-ChoupalValues are : 1 = Yes, 2 = No
E-choupal
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 65 65.0 65.0 65.0
2 35 35.0 35.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, nearly 2/3rd of sample population (65%) is aware about the famous initiative by ITC i.e. E-Choupal. But rest 1/3rd of the sample population is still not aware of the initiative.
Shakti Values are : 1 = Yes, 2 = No
Shakti
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 28 28.0 28.0 28.0
2 72 72.0 72.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 28% of sample population is aware about the famous initiative of HUL.
Project KhamgaonValues are : 1 = Yes, 2 = No
Project khamgaon
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 15 15.0 15.0 15.0
2 85 85.0 85.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only around 1/7 th of the sample population (15%) is aware about the famous initiative of the HUL.
Frequencies
Statistics
aware of shiksha
aware of
integrated
watershed
aware of
livestock
development
aware of
renewable
energy aware of silvassa
N Valid 100 100 100 100 100
Missing 0 0 0 0 0
Mean 1.48 1.69 1.81 1.74 1.75
Shiksha by P&GValues are : 1 = Yes, 2 = No
aware of shiksha
Frequency Percent Valid Percent Cumulative Percent
Valid 1 52 52.0 52.0 52.0
2 48 48.0 48.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only around 1/2 of the sample population (52%) is aware about the Shiksha initiative by P&G
Integrated Watershed Development by ITC
Values are : 1 = Yes, 2 = No
aware of integrated watershed
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 31 31.0 31.0 31.0
2 69 69.0 69.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 70% of the sample population is not aware of the initiative Integrated Watershed Development by ITC
Livestock DevelpomentValues are : 1 = Yes, 2 = No
aware of livestock development
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 19 19.0 19.0 19.0
2 81 81.0 81.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 19% of the sample population is aware of the initiative Livestock Development by ITC. Major portion of the population is not aware of the initiatives.
Renewable Energy by ITCValues are : 1 = Yes, 2 = No
aware of renewable energy
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 26 26.0 26.0 26.0
2 74 74.0 74.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 26% of the sample population is aware of the initiative Renewable Energy by ITC. Major portion of the population is not aware of the initiatives.
Project Silvassa by HULValues are : 1 = Yes, 2 = No
aware of silvassa
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 25 25.0 25.0 25.0
2 75 75.0 75.0 100.0
Total 100 100.0 100.0
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 25% of the sample population is aware of the Project Silvassa by HUL. Major portion of the population is not aware of the initiatives.
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, more than 80% of sample population believes that CSR helps in economic development but they still are not aware of the various CSR initiatives taken by the companies
CSR helps in building a brand? Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree
Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 70% of sample population believes that CSR is a good marketing tool and it helps in building a good brand value.
CSR builds a Brand
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1 36 36.0 36.0 36.0
2 34 34.0 34.0 70.0
3 12 12.0 12.0 82.0
4 18 18.0 18.0 100.0
Total 100 100.0 100.0
Hypothesis Testing
Hypothesis 1
CSR activities do not impact the sales of the product..
Correlations
Pref to Product
on basis of CSR
Pref to company
doing CSR
Pref to Product on basis of
CSR
Pearson Correlation 1 .273**
Sig. (2-tailed) .006
N 100 100
Pref to company doing CSR Pearson Correlation .273** 1
Sig. (2-tailed) .006
N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).
Interpretation:
From the above correlation we found that CSR does not impact the purchasing behavior of the consumers as they do not give preference to any of the company or product while purchasing a product. The correlation is significant at 0.01 level. Therefore we accept the hypothesis.
2nd case
Interpretation:
From the above correlation we found that people consider CSR is only a marketing tool so many people do not give preference to any of the company or product while purchasing a product. The correlation is significant at 0.01 level. Therefore we accept the hypothesis.
Correlations
Pref to company
doing CSR CSR mkt tool
Pref to company doing CSR Pearson Correlation 1 .572**
Sig. (2-tailed) .000
N 100 100
CSR mkt tool Pearson Correlation .572** 1
Sig. (2-tailed) .000
N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).
Hypothesis 2
CSR activities does not change the perception of consumer’s towards the organization
Correlations
Pref to Product
on basis of CSR
Aware of csr in
rural
Pref to Product on basis of
CSR
Pearson Correlation 1 .229*
Sig. (2-tailed) .022
N 100 100
Aware of csr in rural Pearson Correlation .229* 1
Sig. (2-tailed) .022
N 100 100
*. Correlation is significant at the 0.05 level (2-tailed).
Interpretation:
From the above correlation we found that people in urban areas are not aware of the CSR initiatives taken by various FMCG companies, thus their perception about the company or organization does not changes because of CSR. The correlation is significant at 0.05 level. Therefore we accept the hypothesis.
Hypothesis 3
People does not have the prior knowledge of the various CSR initiatives taken by the FMCG companies.
CSR Initiatives YES NO TOTALE-Choupal 65% 35% 100
Shakti 28% 72% 100
Project Khamgaon 15% 85% 100
Shiksha 52% 48% 100
Integrated Watershed Development
31% 69% 100
Livestock Development 19% 81% 100
Renewable Energy 26% 74% 100
Project Silvassa 25% 75% 100
Awareness Chart
Interpretation :
From the above analysis, we can see that in all the cases except E-choupal, people are not aware of all the initiatives asked. This is the main reason of why there is no change in consumer’s perception towards the organization. People are not aware of the CSR initiatives taken by FMCG companies in the rural areas. Thus our hypothesis is right.
T-Test on Gender and change in perception of consumer due to CSR activities
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Pref to company doing CSR 100 2.50 1.115 .111
Gender 100 1.43 .498 .050
One-Sample Test
Test Value = 0
95% Confidence Interval of the
Difference
t df Sig. (2-tailed) Mean Difference Lower Upper
Pref to company doing CSR 22.429 99 .000 2.500 2.28 2.72
Gender 28.740 99 .000 1.430 1.33 1.53
FINDINGS AND CONCLUSION
The study was conducted to find out the impact of CSR activities on customer’s perception about
the organization and sales of the product as well as to study the various CSR initiatives of HUL,
ITC and P&G. From the above report the finding comes to be that people are not aware of the
various initiatives taken by the companies. Companies are spending lots of money for the
welfare of the society but people of the society are not fully aware of it. This is the problem with
most of the consumers in urban areas because most of the initiatives and projects are undertaken
the companies in rural areas only. So the awareness level of people is very low in this case.
Another finding is that CSR initiatives put a very less impact on the consumer’s perception
towards the companies and sales of the products. The consumers are not able to recall any
initiatives thus their buying behavior does not change and they buy the product which they want.
On asking that will they buy a product of company which they don’t prefer, if it start doing CSR,
the response was the same. Although people do believe that CSR is good for economic
development but on the other side they also consider it as a good Marketing tool. On asking
about the famous CSR initiatives, people were unable to recall any except E-choupal, famous
initiative by ITC which has also won many awards. Amongst the three chosen FMCG
companies HUL, ITC and P&G, most of the sample population preferred the products of HUL
and ITC. Meeting and interacting with the consumers and collecting data was a real good
experience.
BIBLIOGRAPHY
1. Lara Balsara, www.orissadiary.com, Show Bussiness News, Monday,
November 22, 2010
2. India ta glance, Trends, Corporate social responsibility, www.ibef.org,
To whom it may concern: This study is being conducted to analyze the on impact of CSR activities on Customer Perception. The responses provided by you would be purely used for research purposes only.
Q1.Which of the following FMCG company’s products do you prefer?
a. HUL b. ITC c. P&G d. Dabur e. Others
Q2. Do you think CSR initiatives are must for every company?
Q10. Are you aware of the following famous CSR initiatives?1. E-Chaopal Yes_____/No _____2. Shakti Yes_____/No _____3. Project Khamgaon Yes_____/No _____
Q11. Are you aware of SHIKSHA, an initiative by P&G? Yes_____/No _____
Q12. Are you aware of the Integrated Watershed Development, an initiative by ITC? Yes_____/No _____
Q13. Are you aware of the Livestock development initiative by ITC? Yes_____/No _____
Q14. Are you aware of the Renewable Energy initiative by ITC? Yes_____/No _____
Q15. Are you aware of the Project Silvassa by HUL? Yes_____/No _____
Q16. Do you believe that CSR helps in Economic Development?
1. Name:2. Gender: Male_____ Female _____3. Age:4. Highest Education: ________________________5. City of residence: ________________________6. Occupation: ________________________7. Approximate current annual household income (in Rs.):
a. Under 2, 00,000 b. 2, 00,000-5, 00,000c. 5, 00,000 and above