Corporate Social Responsibility of Maharashtra State Road Transport Corporation With Reference to Sangli Division

Corporate Social Responsibility of Maharashtra State Road Transport Corporation With Reference to Sangli Division.

1.0 Introduction:
The concept of Corporate Social Responsibility (CSR) originated in the 1950’s in the USA but it became prevalent in early 1970’s. At the time we had lots of social problems like poverty, unemployment & pollution. Consequently, a huge fall in the prices of dollar was witnessed. It became a matter of utmost importance for diverse groups demanding change in the business. During the 1980’s to 2000, corporations recognized ; started accepting a responsibility towards society.CSR has both ethical ; philosophical dimensions, particularly in India where there exists in terms of income ; standards as well as socio-economic status. It focuses on the wealth creation for the optimal benefit of all employees, customers, environment and society.

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Of course a corporation needs an active support of society in different ways for undertaking and managing its corporate activity. It requires money (Capital), workers and managers (Staff), entrepreneurs and directors (Management), public services and protection (Government) and consumers for managing its business activity smoothly and skillfully. All these different sections basically belong to the society, which are collected by a company systematically. In other terms, a corporation runs its activity with the active support of all these sections of the society. Absence of any one of these sections may put corporation in great trouble. As the society renders its active support in different ways, a corporation in return shall shoulder certain responsibility towards the society. This responsibility is termed as Corporate Social Responsibility.

1.1 Concept of Corporate Social Responsibility:
The concept of corporate enterprise has its origin in England. The CSR has a long history in India. The CSR depending on its nature and context, it was divided into three broad areas.

Traditionally, corporate philanthropy aimed at the welfare of the immediate members of the enterprise like staff and employees and their families. This was usually in the form of contributions by visionary business leaders to the establishment of trusts that promoted education, women’s welfare, medical care and so on.

CSR is a qualitatively different from the concept of the traditional concepts of corporate philanthropy. It acknowledges the corporation’s debt that the corporation owes to the community within which it operates. It regards the community as an equal stakeholder. It also defines the business corporation’s partnership with social action groups in providing financial & other resources to support development plans, especially among disadvantaged plans, especially among disadvantaged communities.
In the latest perspective, CSR enjoys upon corporations analyze profits and conjunction with social prosperity.
Various researcher, scholars, practitioners have emphasized the importance of CSR as an effective tool for creating a favorable corporate image in the minds of society. According to Bonen (1953) defined social responsibility refers to the “obligations (of businessman) to pursue those policies, to make those decision or to follow those lines of actions, which are desirable in terms of the objective and values of our society”. Likewise, Keith Davis (1960), an early analyst of social responsibility, said, ‘social responsibility is applied in any situation, if it influences a businessman’s decision even partially’. According to his analysis, the mere consideration of social needs / wants / desire by the organization decision maker is sufficient to be considered as corporate social responsibility.

According to the world business council for sustainable development, “corporate social responsibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large” (WBCSD,2000,p.3).

1.1.1 Corporate Social Responsibility:
The history of CSR can be traced back to the description of the aim of the found in ancient Indian literature. Observations in the Vedas suggest that peace, order, security, and justice were regarded as the fundamental aims of the state. Chandogya Upanishad (v.11.5) records that religion was to be promoted, morality was to be encouraged, and education was to be patronized. Total welfare of the public was clearly regarded as the chief aim of the state during the Vedic and Upanishadic ages.
CSR has come a long way in India. From CSR activities to sustainable initiatives, corporations have clearly demonstrated their ability to make a significant difference in society and improve the overall quality of life. In India, it is difficult for one single entity to bring about change, as the scale is enormous.

1.2 Need for Corporate Social Responsibility:
CSR has become increasingly because today’s heightened interest in the proper role of business in society has been promoted by increased sensitivity to and awareness of environmental and ethical issues. Issue such as environmental damage, improper treatment of workers, and faulty services leading to customer inconvenience; elsewhere some consumers have become increasingly sensitive to the CSR programmed of the corporations from which they provided services.

These trends have contributed to the pressure on companies to operate in an economically, socially and environmentally sustainable way. The CSR movement has argued that maximization profit should not be the corporation is single objective. The CSR in areas such as: concern for health, education, poverty alleviation, environmental concern, issues relating to the socially Vulnerable, and contribution to sports development. Hence, CSR is need of today’s Corporations.

1.3 Dimensional Aspects of Corporate Social Responsibility:
The main purpose of CSR is to make corporate business activities and corporate culture sustainable in following three aspects:
1) Economic aspects
2) Social aspects
3) Environmental and Ecological aspects.

The dimensional aspect has much more importance for management studies. The human and non- human aspect of any organization is its core asset, as they are the data generators as well as data users for corporate social responsibility. Businesses and management have to align profitable opportunities with their social identities and underline values of corporate social responsibility. The today’s world has going on to the rapid development. Hence, these three dimensional aspect are more important for business as well as management.

1.3.1 Economic aspects of CSR:
The economic aspects of CSR consist and impact of company operations. The economic issues have long term discussed of CSR. The economic aspects have been widely assumed to be well managed. However, it is actually understood by many of corporate and public policy agendas, and underrepresented the corporate responsibility agenda. The economic dimension of the sustainability agenda should rather consider that the organizations operations. The economic aspect of multiplier effect of its stakeholders, non – profit organizations, customer, supplier and the communities in which the company operates.

1.3.2 Social aspects of CSR:
Social responsibility is the new dimension of CSR. Many organizations are becoming increasingly active role in social concern. Social responsibility means being accountable and auditable social effects on the company and its people even indirectly. This includes stakeholders – including people within the company, in the supply chain of the company, in the community the company is in and as customers of the company etc. The following key social aspects of CSR for organizations are: Social responsibility towards customers:
Customers have been described as kings of business. The customers are solely responsible for making the right decision in the market to get the best gains. The satisfied customer is with the products and services provided by the business, the more profits business can reap. The responsibility towards include such issue as the safety and durability of products or services; standard or after sales service; prompt and courteous attention to queries and complaints; adequate supply of products or services; fair standards of advertising and trading; and full and unambiguous information to potential customers. Responsibility towards Employees:
Business are major contributor to community for generate of employment. However, social responsibility to employees extends beyond terms and conditions of the formal construct of business employment. Companies has wider expectations that today’s employees for the quality of their working life. Such expectations include welfare and safety at work and upholding their skills and motivation for the work. Beyond these social responsible companies secure, and equal opportunities for all its employees, regardless of age, gender, religion, caste etc. Responsibility towards the Community:
The company community includes additional vocational training places, recruiting socially excluded people, sponsoring local sports and cultural events, and through partnerships with communities or donations to charitable activities. The companies depends on the community includes health, stability and prosperity.

1.3.3 Environmental and Ecological aspects of CSR:
Environment is key pillar of the CSR. Environmental and ecological issues have been an important topic of discussion for the past thirty years in the business world. Corporate activity may have many way effects on the environment. Usually, environmental impact refers to the negative effects occurring in the natural environmental due to business operations. Such effects may include; pollution, wastage, degeneration of biodiversity, climate change etc.

Some companies have found that improving environmental performance using less material and streamlining processes to create less waste may lower the costs of operation significantly.

1.4 Social Responsibility in India:
Some efforts have been made in India to make business more responsible to society. A fair trade practices associations has been set up to check unfair practices on the part of trade. In March, 1965, an international seminar was held in New Delhi. The seminar defined the responsibility of business to various social groups. This was followed by another seminar at Calcutta in March, 1966 at which ways and means were outlined for the implementation of the concept of social responsibility. A national committee on social responsibility of business too was constituted. In July1980, a novel scheme was launched under which big business houses were to adopt 100 villages and develop them as model villages. The idea was to make the rural economy economically self – reliant.

On the other hand, a nonprofit organization is an organization, which exists for providing some benefit or assistance or a sort of self help Group. Like the name suggests, the organization will have the properties of a profit making organization. i.e. a mission statement, a vision, offices, infrastructures etc, but the objective will not include making a profit out of its operations. However to run any organization, fund is needed, and this has to come in to the non – profit in terms of financial i.e. grants, subsidies, donations etc or services in terms of staff support or infrastructure support. The sources for these funds could be individual, the government or other charitable institutions and finally companies. These business houses through their corporate social responsibility initiatives contribute to the mission of social progress and growth of India.

Now a day combined effect of socio-economic factors and political factors led to the development of social responsibility and famous families like Tata, Birla, Shri Ram, Godrej, Dalpatbhai Lalbhai, Singhania, Modi, Murugappa Chettiar, Kuppuswamy Naidu, Mafatlal, Mahindras and other became the backbone of India’s social strength. These families are the pride of India.

1.5 Conceptual Framework:
We fulfill our social responsibility by considering the environment in our social corporate activities, including pollution reduction, resource consumption and energy efficiency.

Our customers are the passengers who travel MSRTC/ Bus. We provide them with quality services, ensure safety and proper information.

Our society includes citizens and consumers. We can increase MSRTC value by fulfilling our social responsibility. We consider factors such as employment generation and welfare services as social responsibility
Our employees include the people who work for the MSRTC. We offer employees appropriate salaries & benefits, job satisfaction, health & safety measure and employee skills and training development.

Government activities such as implementation policies, maintain law and security. They are responsible for objective of the corporation

1.6 Statement of the Problem:
Efficient goods and passenger transport service is necessary for economic and social development. MSRTC is doing this work for last 4 decades. MSRTC had a lion’s share in providing efficient passenger services with a fleet of about 10000 buses. The MSRTC is providing short and long route passenger services and satisfying the needs of passenger transport by mechanized road vehicles happened to be a blessing for rural population. Passenger transportation by MSRTC buses is the most important means in the district on account of legal monopoly conferred on the corporation.
Now social responsibility of MSRTC is increased. The MSRTC is started to implement social responsibility in various areas. However, it faces some problems. These problems and Corporate Social Responsibility is the main part of the present study. The present study aims at critically examining the corporate social responsibility of MSRTC with special reference to Sangli Division.

1.7 Objective of the study:
The main objective of the study is to identify the extent and areas of corporate social Responsibility by MSRTC in Sangli Division. The specific objectives are as follows:
1. To study the social responsibility of MSRTC towards natural environment.

2. To study the social responsibility of MSRTC towards customer.

3. To study the social responsibility of MSRTC towards employee.

4. To study the social responsibility of MSRTC towards government
5. To study the social responsibility of MSRTC towards society.

6. To study the problem faced by the MSRTC in implementation of social

7. To give the suggestions for improving MSRTC social responsibility in sangli

1.8 Hypothesis of the study:
There is positive relationship between social responsibility and natural environment protection.

There is positive relationship between social responsibility and customer’s

There is positive relationship between social responsibility and employee

4. There is positive relationship between social responsibility and government

There is positive relationship between social responsibility and society

1.9 Significance of the study:-
MSRTC plays a pivotal role in Maharashtra in bringing about greater mobility both in and between rural and urban areas. Over the last few years, corporations have gradually shifted focus on service quality and customer satisfaction. It is very close to the society. Majority of employees in MSRTC are in low and medium income class, thus, MSRTC plays important role in empowerment and social responsibility of their employees.

This study will be a great asset to all those who are interested in conducting further in depth studies of the theme of Social Responsibility in different areas. This study will be useful to government and institutions engaged in the development of social responsibility.

1.10 Research Methodology:
1.10.1 Source of Data:
The present study is based on both primary and secondary data.
Primary Data:
The present study is mainly based on primary data which will be collected through self designed questionnaire for the response of MSRTC Officers, Employees, and Customers as well as personal observation through informal discussion with MSRTC officers and customers.

Secondary Data:
The secondary data was collected from library such as Shivaji University Library and Arts & Commerce College, Ashta Library. In addition to that following sources have been used for collecting data.

1. Annual reports and records related to CSR and MSRTC.

2. Supporting literature such as reference books, research papers, articles,
research journals, periodicals, etc.
3. Various websites etc.

4. Unpublished sources like M. Phil, Dissertations and Ph.D. Thesis.

1.10.2 Sample Design:-
The present study will be used for the collection of primary data and relevant information. The sample of MSRTC will be included employee and passenger. So MSRTC belong to a finite Population of 5311.

Sample Size is calculated by using the Slovin’s formula of finite population.

N = N / {1 + N (e) ^2}
N = sample size
N = population size which is 5311 employee of MSRTC.

E = error which is taken as 0.05
So after calculation sample size is 372.
Classification of Sample
Sample Name Population Sample
Driver 1722 120
Conductor 1784 125
Supervisor Staff (ATS, TI, ATI, Controllers etc.) 280 20
Clerical Staff 400 28
Officers (Dc, Mu, Dto, Dts, Dao, Dpo etc) 25 2
Mechanical Staff 1100 77
Total =SUM(ABOVE) 5311 372
The sample passenger will be included from all the bus depots of Sangli division of MSRTC. Priority will be given to equal representation of the passengers from all the bus depots. All the eleven bus depots will be covered in this study, from these bus depots 30 passengers from each bus depots will be selected for the study. It means in total 330 passenger will be analyzed.

1.10.3 Data Analysis:
The data would be analyzed by using different techniques and statistical tools. The present researcher will select suitable statistical tools like percentage, correlation, regression, standard deviation and suitable statistical tools used for the study.

1.10.4 Parameters:
The following parameters will be used for the analysis of data:
A Towards Environment-
1 Pollution reduction
2 Resource consumption ;
3 Energy efficiency
B Towards Customers-
1 Fair price
2 Comfortable
3 Attractiveness of services
4 Proper information
5 Timeliness
C Towards Employee-
1 Job satisfaction
2 Fair salaries ; benefits
3 Quality of work life
4 Healthy and safety
5 Employee skills and training development
D Towards Government-
1 Payment of taxes
2 Implementation of policies
3 Maintain law ; security
E Towards Society-
1 Employment generation
2 Welfare services
1.10.5 Period of study:
Period of the present study is from the year 2010-2015
1.10.6 Area of the study:
Area of the study of present research work is Sangli district of MSRTC.

1.10.7 Scope of the Study:-
A. Geographical Scope – This study is proposed to be conducted for Sangli District in Maharashtra.

B. Periodical Scope – This study will cover the period of five year 2010-15.

C. Topical Scope – The focus of study is on Social Responsibility in
MSRTC Sangli District.

D. Analytical Scope – The data collected from MSRTC will be analyzed to
test ; fulfill the Hypothesis.

E. Functional Scope –This study proposes to analyze the performance and
strategies Applied by Social Responsibility in MSRTC Sangli District.

1.10.8 Chapter Scheme:
1. Introduction and Research Methodology:
In this chapter, the matter of research work will be discussed at length and focused on introduction and research methodology. It will cover Introduction, Statement of the Problem, Hypothesis of the study, Objective of the study, Significance of the study, Scope of the study etc.

2. Review of Literature:
In the chapter, the review of literature according to present study will be discussed.

3. Profile of the Sangli District ; the MSRTC:
This chapter will consist of history and other profile of district, past and present condition of social responsibility in district.

4. Data Analysis and Interpretation:
This chapter will cover the analysis of collected data from various primary and secondary sources and its interpretation using graphs, tables, charts, and appropriate statistical tools. It also includes different facilities and related problems analyzed by this study.

5. Finding, Suggestions ; Conclusion:
This chapter includes major finding of the research and conclusion. It also includes some remedial measures for the problems of MSRTC.

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Research Articles:-
1Soheli Ghose, “A look into Corporate Social Responsibility in Indian and emerging economies,” International Journal of business and management Invention, volume 1 Issue 1 December.2012 p.p.22-29.2 Megha Mehta, ” Corporate Social Responsibility – A case study of Cognizant Group”,VSRD International Journal of business and management Research, Vol.III Issue VIII August 2013.

3 Eliza Sharma, Dr. Mukta Mani, “Corporate Social Responsibility: An analysis of Indian Commercial Banks,” AIMA Journal of management and Research, February 2013, Volume 7, Issue ¼.

4 Shanmugam, Kavitha; Shaik Mohamed, N., “A study on Corporate Social Responsibility Initiatives in Indian Automobile Industry,” Interdisciplinary Journal of contemporan Research in business; oct 2011, Vol-3 Issue 6, P-85.

5 Prof. Pisal D.T., Dr. Ajay Kumar, “Corporate social Responsibility Related to Sugar Industries,” P.D.F.A.R. D. Journal 2012, 5(5); (P) 26-39.6Dr. H.M. Thakar, UrmilaKisanDubal, ” A study on employee Welfare measure In Maharashtra State Transport Corpoartion with special Reference to Kolhapur District”, Indian Journal of Applied Research, Volume 1 , Issue – 4 , January 2012.

7 Prof. B. S. Kadamzenith International Journal of Business Economics ; Management ResearchVol.2 Issue 2, February 2012, ISSN 2249 8826.8Simeon Scott, (2007) “Corporate Social Responsibility and the Fetter of Profitability”, Social Responsibility Journal, Vol. 3 Iss: 4, pp.31 – 39.

9Mujih Edwin (2007), “Implementing Corporate Social Responsibility: Punishment or compliance. Social Responsibility Journal Volume 3 Number 3,


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