A Brief Investigation of CSR Initiatives of Tobacco Companies in India
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www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 Volume-5, Issue-1, February-2015 International Journal of Engineering and Management Research Page Number: 104-108 A Brief Investigation of CSR Initiatives of Tobacco Companies in India Daroga Manjhi Senior Research Fellow, University of Lucknow, Lucknow, INDIA Abstract companies of India. finding &Suggestion with conclusion and Tobacco companies and Corporate social scope for future research are given in this paper. responsibility are something contradicting to each other. Tobacco company’s claims that they are doing ethical Keywords---- Corporate Social Responsibility, Tobacco practices, while there product is not beneficial to its users Companies, ethical values. except satisfaction. This paper is based on descriptive research with two objectives. Data sources are based on primary and secondary sources from twenty five tobacco I. INTRODUCTION poverty, financial literacy, health care, promotion of Corporate Social Responsibility is the term used entrepreneurship, promotion of tourism, promotion of by companies, corporation, and business enterprises or by Arts/ culture/ education/ gender equality, rehabilitation and business organisation that’s to show their own resettlement, generation of employment, water shade responsibility towards other stakeholders of the business. development programme / rain harvesting, reduction of These stakeholders include Shareholders, suppliers, carbon foot prints etc; by the business entities. society, employee, government, consumers/ customers or The relationship between Corporate Social any other party who are interested in business activity Responsibility initiatives and by initiatives undertaken by directly or indirectly. Tobacco companies is questionable because the operation The aim of Corporate Social Responsibility is to and products of tobacco companies is not hugely upliftment of living of standard and development of acceptable by our civilized society. Tobacco companies economy through adoption of village, agricultural producing Gutka, Khaini, beedi, Tambacoo, Jarda and development programme, animal husbandry, development Cigarettes. These products are chewable, consumable and of rural areas, awareness of national/states government smoke able depends upon the nature of product. These are schemes of ministry of Rural development, community injurious to health, its consumption cause death due to development, environment sustainability, eradication of various types of cancerous diseases. The detailed literature on Corporate Social social responsibility means something, but not always the Responsibility and Tobacco Companies are given in next same thing to everybody”. It means different meaning has section of this research paper. This paper is divided into 8 evolved on the basis of each individual person’s section from introduction to references. perception. At presently various organizations have developed formal definitions of CSR, some of them are – II. LITERATURE REVIEW World Business Council for Sustainable Development: Corporate Social Responsibility Corporate Social Responsibility is the continuing The term Corporate Social Responsibility is used commitment by business to behave ethically and contribute by different scholars, contributors and entrepreneurs etc. in to economic development while improving the quality of different period of time, with different purpose and life of the workforce and their families as well as of the objectives. There is no only one singe globally acceptable local community and society at large. definition of CSR. Votaw (1973) said that “corporate 104 Copyright © 2011-15. Vandana Publications. All Rights Reserved. www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 Indian organization for standardization ISO: as “CSR origins that began many centuries ago as for as CSR is a responsibility of an organization for the 1700BC in Mesopotamia by King Hammurabi” whereas impact of its decisions and activities on society and the another scholars explained in their study that “In the late environment through transparent and ethical behavior. 1880s in the introduction stage of the industrialization it Business for Social Responsibility: was broadly discussed whether or not companies should Operating a business in a manner that meets or take their social responsibility (Carlsson, Johanna & exceeds the ethical, legal, commercial and public Akerstom, Richard (2008). Actual evolution of term CSR expectations that society has of business. assumed as from 1950s according to Carroll (1999). European Commission; Employment & Social Affairs: Since 1950s (from Bowen written book Social Corporate Social Responsibility is essentially a Responsibility of Business man) to till today’s we have concept whereby companies decide voluntarily to numbers of books, research papers and articles which are contribute to a better society and cleaner environment. based on Corporate Social Responsibility. Rahman A number of definitions for Corporate Social Shafiquar (2011) has identified them in their paper Responsibility have emerged over the years. The evidence “Evaluation of Definitions: Ten Dimensions of Corporate of term ‘Corporate Social Responsibility were identified Social Responsibility”. He has tried to explain the key by Tilakosiri at el. (2012), explained the evolution of CSR factor (issues) of CSR in different decades. III. TOBACCO INDUSTRY Western Tobacco Ltd; Asia Tobacco Co. Ltd; Raghunath Tobacco Ltd; J & K Cigarettes Ltd; North Eastern Tobacco Indian Tobacco Industry is one of the major Co. Ltd; Kanpur Cigarettes Ltd; Modi RJR Ltd; Survarn commercial crops in India. In spite of the health hazards Filter & Tobacco Product Ltd; Jupiter Tobacco Industries; associated with it, the tobacco industry contributes Kanhaya Tobacco Company; MR Tobacco; Sapna significantly to the economy in terms of employment, Enterprises; Sudarshan Tobacco; Indian Tobacco Co. Ltd; income and government revenue. It is the second largest Godfrey Phillips India., Golden Tobacco Ltd; VST sector in terms of central excise revenue contribution. The Industries, National Tobacco Co; Industries Ltd.,Kothari industry also acts as a major foreign exchange earner for Products Limited (KPL); Sri Jayalakshmi Tobacco Co Ltd. the government. Besides tobacco farming and production, Products of Tobacco Industries. the Indian tobacco industry also comprises company 1. Bidi - Bidis are slim hand-rolled, unfiltered cigarettes involved in manufacturing, sales and distribution of that are rolled in brown tendu or temburni leaves and held tobacco products like cigarettes, cigar, bidis and chewing together by a string. tobacco (India Tobacco Industry Report 2014). 2. The Smokeless – Khaini/ Kharra, Pan Masala, Mawa, Some Indian Players of this Industry are – Gutka, Zarda. International Tobacco Co. Ltd; Taminadu 3. Cigarette. – Cigarette for women and men; for first Tobacco Co. Ltd; Trupati Cigarette Ltd; New Tobacco Co; time user and for regular users. 105 Copyright © 2011-15. Vandana Publications. All Rights Reserved. www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962 Benefits of Products to the consumer. tobacco industry: hope or hype?” that “British American Nothing Tobacco and Philips Morris turned to the concept of Harmful effects of Products to the consumer. Corporate Social Responsibility. Philip Morris has not Nicotine addiction, Cancers of the mouth, issued a formal social report, choosing to declare its nasopharynx, larynx, trachea, bronchi, lungs, esophagus, responsibilities on its web pages, while BAT has published stomach, liver, pancreas, kidney, bladder, prostrate, cervix two. How PM explored and formulated its version of CSR and brain; colorectal cancer; leukemia Atherosclerosis of is found in the PM company documents, which this report the cardiovascular system, including coronary heart examines. Comparable documents for BAT may exist at disease (with ischemia and infarction), cardiomyopathy, the depository in Guildford, UK, but were not searched aortic and other aneurysms, cerebrovascular hemorrhages for. In the end, however, both companies arrived at similar and blockages, Renal failure and peripheral vascular configurations”. disease, Chronic obstructive pulmonary disease; Another scholar Champan, S (2004) comment on emphysema; pneumonia; childhood asthma, Peptic ulcer tobacco industry as “The tobacco industry continues to disease and regional ileitis; cirrhosis of the liver; seek corporate ‘‘respectability’’, despite being responsible Immunological deficiencies and failures of endocrine and for the deaths of millions of smokers worldwide every metabolic functions; cataracts; osteoporosis; optic year”. He strongly comments against the business neuropathy; infertility; fetal and neonatal deaths and child activities of tobacco industry because it causes many disabilities; and more(www.tobaccoindia.org). dangerous diseases due to its product’s consumption. Tobacco companies are facing the issue of child labour by which make profit from low wages and sale IV. CORPORATE SOCIAL tobacco at cheap price. (Otanez, M. G at el. 2005), RESPONSIBILITY PRACTICES environmental issue is another matter such as deforestation AND TOBACCO INDUSTRY IN use of non-biodegradable material/s in tobacco products, INDIA for instance cigarette butt. This problem’s solutions are seen by scholars Vaedavas, Constantine I. at el Developments in health and public awareness, (2010).They find in their research that in developing and litigation, regulation