SWOT ANALYSIS:

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate
a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and
external factors, as well as current and future potential.

A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and
weaknesses of an organization, initiatives, or within its industry. The organization needs to keep the
analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-life
contexts. Companies should use it as a guide and not necessarily as a prescription. Every SWOT analysis
will include the following four categories. Though the elements and discoveries within these categories
will vary from company to company, a SWOT analysis is not complete without each of these elements:

Strengths

Strengths describe what an organization excels at and what separates it from the competition: a strong
brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge
fund may have developed a proprietary trading strategy that returns market-beating results. It must then
decide how to use those results to attract new investors.

Weaknesses

Weaknesses stop an organization from performing at its optimum level. They are areas where the business
needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt,
an inadequate supply chain, or lack of capital.

Opportunities

Opportunities refer to favorable external factors that could give an organization a competitive advantage.
For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing
sales and market share.

Threats

Threats refer to factors that have the potential to harm an organization. For example, a drought is a threat
to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include
things like rising costs for materials, increasing competition, tight labor supply. and so on.

CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially
accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, also
called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects
of society, including economic, social, and environmental. Corporate social responsibility is a gesture of
showing the company’s concern & commitment towards society’s sustainability & development. CSR is
the ethical behaviour of a company towards society. To engage in CSR means that, in the ordinary course
of business, a company is operating in ways that enhance society and the environment, instead of
contributing negatively to them.
There are a few broad categories of social responsibility that many of today's businesses are
practicing:

1. Environmental efforts: One primary focus of corporate social responsibility is the environment.
Businesses regardless of size have a large carbon footprint. Any steps they can take to reduce those
footprints are considered both good for the company and society as a whole.

2. Philanthropy: Businesses also practice social responsibility by donating to national and local charities.
Businesses have a lot of resources that can benefit charities and local community programs.

3. Ethical labor practices: By treating employees fairly and ethically, companies can also demonstrate
their corporate social responsibility. This is especially true of businesses that operate in international
locations with labor laws that differ from those in the United States.

4. Volunteering: Attending volunteer events says a lot about a company's sincerity. By doing good deeds
without expecting anything in return, companies are able to express their concern for specific issues and
support for certain organizations.

NEED FOR CSR

• Issues such as environmental damage, improper treatment of workers, and faulty production
leading to customer inconvenience or danger are being highlighted.
• Investors and investment fund managers have began to take account of a firm’s CSR policy in
making investment decisions.
• Some consumers have become increasingly sensitive to the CSR program of the firms from which
they buy their goods and services.

BENEFITS OF CSR
• Improved public image: This is crucial, as consumers assess your public image when deciding whether
to buy from you. Something simple, like staff members volunteering an hour a week at a charity, shows
that you’re a brand committed to helping others. As a result, you’ll appear much more favorable to
consumers.
• Increased brand awareness and recognition: If you’re committed to ethical practices, this news will
spread. More people will therefore hear about your brand, which creates an increased brand awareness.
• Cost savings: Many simple changes in favor of sustainability, such as using less packaging, will help to
decrease your production costs.
• An advantage over competitors: By embracing CSR, you stand out from competitors in your industry.
You establish yourself as a company committed to going one step further by considering social and
environmental factors.
• Increased customer engagement: If you’re using sustainable systems, you should shout it from the
rooftops. Post it on your social media channels and create a story out of your efforts. Furthermore, you
should show your efforts to local media outlets in the hope they’ll give it some coverage. Customers will
follow this and engage with your brand and operations.
• Greater employee engagement: Similar to customer engagement, you also need to ensure that your
employees know your CSR strategies. It’s proven that employees enjoy working more for a company that
has a good public image than one that doesn’t. Furthermore, by showing that you’re committed to things
like human rights, you’re much more likely to attract and retain the top candidates.
• More benefits for employees: There are also a range of benefits for your employees when you embrace
CSR. Your workplace will be a more positive and productive place to work, and by promoting things like
volunteering, you encourage personal and professional growth.

CSR APPLICABILITY IN INDIA

The provisions of CSR apply to every company fulfilling any of the following conditions in the preceding
financial year:

• Net worth of more than Rs.500 crore

• Turnover of more than Rs.1000 crore
• Net profit of more than Rs.5 crore
The Board of Directors of every company for which the CSR provisions apply must ensure that the
company spends in every financial year at least 2% of its average net profits made during the immediately
preceding three financial years as per its CSR policy. If the company has not completed three financial
years since its incorporation, it must spend 2% of its average net profits made during the immediately
preceding financial years as per its CSR policy.

EXAMPLES OF CSR IN INDIA:

• The Tata Group in India has undertaken various CSR projects for community improvement,
poverty alleviation, agriculture programs, women's empowerment, income generation, rural
community development, AIDS awareness programs, infrastructure development of schools, sports
training centers, hospitals, research centers, etc. They also provide different kinds of scholarships
in the field of education.
• UltraTech Cement Group is involved in social work in around 407 villages in the country, aiming
to create self-reliance and sustainability. Their CSR activities focus on the healthcare sector. They
organize medical camps, immunization programs, sanitization programs. They are also involved in
water conservation drives, plantation drives, organic farming programs. One of their major areas
of focus is education and school enrollment. Other major areas of focus are infrastructure, social
welfare, environment protection, sustainable livelihood.
• ITC Group has been focusing on creating sustainable livelihoods and environmental protection
programs. The Company has been able to generate sustainable livelihood opportunities for 6
million people through its CSR activities. Their e-Choupal program aims to connect rural farmers
through the internet and covers 40,000 villages and over four million farmers. It's social, and farm
forestry program helps farmers convert the farm wasteland into pulpwood plantation. Social
empowerment programs through loans have created a sustainable livelihood for over 40,000 rural
women.
• Mahindra and Mahindra primarily focus on education programs to assist socially and economically
disadvantaged communities. They invest in scholarships and grants, livelihood training, healthcare
for remote areas, water conservation and disaster relief programs. They run programs like Nanhi
Kali focusing on education for girls, Mahindra Pride Schools for livelihood training, and Lifeline
Express for healthcare services.