434CIE/ MANAGERIAL ECONOMICS

AN ANALYSIS OF THE CONSUMER GRIEVANCE REDRESSAL MECHANISM

IMPLEMENTED BY A HYPERMARKKET CHAIN ON LEGAL
SYSTEMS IN BUSINESS

SUBMITTED BY

MOHAMED RAIYAN K - SA24MP029

DEEPAN S - SA24PM009

HARESH U J - SA24PM017

HARIPRIYA S - SA24PM037

HATSHAYA R - SA24PM038

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF MANAGEMENT
S.A COLLEGE OF ARTS AND SCIENCE, CHENNAI
(AFFLIATED TO UNIVERSITY OF MADRAS)
 S.A COLLEGE OF ARTS AND SCIENCE, CHENNAI
(AFFLIATED TO UNIVERSITY OF MADRAS)

SCHOOL OF MANAGEMENT

BONAFIDE CERTIFICATE

This is to certify that the report is a Bonafide work of MOHAMED RAIYAN.K

(SA24PM029), DEEPAN.S (SA24PM009), HARESH.U. J (SA24PM017), HARIPRIYA.S
(SA24PM037), HATSHAYA.R (SA24PM038) who had carried out the work and the report
is prepared under my supervision.

Signature of faculty Director of school of management

(MRS.S. KALPANA, ASSISTANT PROFESSOR DR R. VIJI
SCHOOL OF MANAGEMENT)

Internal Examiner External Examine

Date of Viva-Voice
 SCHOOL OF MANAGEMENT
MASTER OF BUSINESS ADMINISTRATION

NAME OF THE COURSE: MANAGERIAL ECONOMICS

FACULTY NAME :MRS.S. KALPANA, ASSISTANT PROFESSOR,
SCHOOL OF MANAGEMENT)

BRANCH - MBA YEAR/SEMESTER: I/II

DETAILS OF STUDENT

REGISTER NUMBER NAME

SA24PM029 MOHAMED RAIYAN K

SA24PM009 DEEPAN S

SA24PM017 HARESH U J

SA24PM037 HARIPRIYA S

SA24PM038 HATSHAYA R
 ACKNOWLEDGEMENT

The successful and final outcome of learning required a lot of guidance and assistance from
many people and we extremely privileged to have S A college of arts and science got this all
along the completion of our project. All that we have done is only due to such supervision
and assistance and we should not forget to thank them.

We respect and thank the honorable correspondent of the college Mr Venkatesh Raja for
providing us the opportunity to do the work study and giving us all the support guidance
which allowed us to complete study duly on time.

We owe the gratitude to our direct Dr. v. sayl sathyavathi and are beloved principal Dr
Malathi Selvakumaran who paved the way to complete this work study in successful manner.

We heartily thank Dr. viji. R director school of management who took keen interest on our
project work and guided us all along till the completion of a work study by providing all
necessary information for developing a good system.

We also express our sincere gratitude to a faculty MRS.S. KALPANA, ASSISTANT

PROFESSOR, school of management who elevated her valuable time and knowledge in
guiding us, in spite of her busy schedule in work.

We are thanking to and fortunate enough to get constant encouragement, support and
guidance from our family members which helped us successfully completing a project work.
 TABLE 0F CONTENTS

S.NO CHAPTER’S NAME PAGE.NO

1. INTRODUCTION 1

2. ADVANTAGES 5

3. DISADVANTAGES 8

4. COMPANY PROFILE 11

5. FINDINGS 15

6. SUGGESTIONS 17

7. REFERENCE 21

8. CONCLUSION 24
 CHAPTER – 1
INTRODUCTION

1
 INTRODUCTION

Corporate Social Responsibility (CSR) refers to the practices and policies undertaken by
corporations to have a positive influence on the world. It encompasses a wide range of
activities, from environmental sustainability and ethical labour practices to community
engagement and philanthropy. The goal of CSR is to ensure that businesses operate in a way
that is ethical and beneficial to society, balancing profit-making with the welfare of the
community and the environment.

In recent years, CSR has become increasingly important as consumers, investors, and
stakeholders demand greater accountability and transparency from companies. Businesses are
recognizing that a strong commitment to CSR can enhance their reputation, foster customer
loyalty, and lead to long-term success. By integrating social and environmental
considerations into their operations, companies can not only contribute to societal well-being
but also create value for themselves and their stakeholders.

CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES OF

FMCG COMPANIES

1. Overview of CSR in FMCG

Fast-Moving Consumer Goods (FMCG) companies often engage in CSR

initiatives to enhance brand reputation, improve customer loyalty, and
contribute positively to society. These activities can focus on environmental
sustainability, community development, health and wellness, and ethical
sourcing.

2. Key Areas of CSR Activities

A. Environmental sustainability

Waste Reduction: Many FMCG companies implement recycling programs,

reducing packaging waste, and promoting circular economy practices.

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Sustainable Sourcing: FMCGs often source raw materials sustainably. For
instance, Nestlé has programs to source coffee and cocoa through ethical
channels, ensuring fair wages for farmers and environmental protection.

Carbon Footprint Reduction: Companies are investing in renewable energy

and energy-efficient processes. Procter & Gamble has set targets to achieve
100% renewable electricity in their global operations.

Local Development Programs: FMCGs like Coca-Cola engage in community

development through initiatives that support local businesses and economies.
They often invest in infrastructure, education, and health programs.

Disaster Relief Efforts: During natural disasters, many FMCGs contribute

through donations of products or financial support. For example, PepsiCo has
been involved in relief efforts in response to global disasters.

c. Health and Wellness Initiatives

Nutritional Education: Many FMCGs focus on promoting healthy lifestyles.

For instance, companies like Kellogg's have launched campaigns to educate
consumers about balanced diets and nutrition.

Product Reformulation: FMCGs are reformulating products to reduce sugar,

salt, and unhealthy fats, responding to consumer demand for healthier options.

d. Ethical Labor Practices

Companies like Ben & Jerry's promote fair trade practices by ensuring their
suppliers adhere to ethical labour standards. This includes fair wages and safe
working conditions.

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3. CASE STUDIES

a. Unilever

Sustainable Living Plan: Unilever's comprehensive sustainability strategy

focuses on reducing environmental impact while increasing positive social
impact through initiatives in health, hygiene, and livelihoods.

b. Nestle

Creating Shared Value: Nestlé’s CSR efforts revolve around creating shared
value, which aligns their business success with social progress. They focus on
nutrition, water stewardship, and rural development.

c. Procter & Gamble

Children’s Safe Drinking Water Program: P&G has developed a program

that provides clean drinking water to communities in need through the
distribution of water purification packets.

4. Challenges and Criticisms

Despite their efforts, FMCG companies face challenges, such as:

Greenwashing: Companies may face scrutiny over misleading claims about

sustainability.

Supply Chain Transparency: Ensuring ethical practices throughout complex

global supply chains can be challenging.

Consumer Skepticism: Increasing consumer awareness leads to heightened

expectations and skepticism regarding corporate motives.

4
CHAPTER – 2

ADVANTAGES

5
 ADVANTAGES

CORPORATE SOCIAL RESPONSIBILITY (CSR) OFFERS SEVERAL

ADVANTAGES FOR BUSINESSES, INCLUDING:

Enhanced Reputation:

Engaging in CSR initiatives can improve a company's public image and brand loyalty.

Customer Loyalty:

Consumers increasingly prefer brands that demonstrate social and environmental

responsibility.

Attracting Talent:

Companies with strong CSR practices are often more appealing to job seekers, helping attract
and retain top talent.

Operational Efficiency:

Implementing sustainable practices can lead to cost savings through waste reduction and
energy efficiency.

Risk Management:

CSR helps mitigate risks related to regulatory compliance and public scrutiny.

Investor Attraction:

Many investors Favor companies with robust CSR strategies, seeing them as lower risk and
more sustainable.

Community Relations:

Positive engagement with local communities can foster goodwill and support for the
business.

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Innovation and Growth:

CSR can drive innovation as companies seek new ways to address social and environmental
challenges.

These advantages contribute to a more sustainable and profitable business model

in the long run.

Employee engagement:

CSR can help attract and retain employees who want to make a difference. Research shows
that engaged employees can lead to higher productivity, profitability, and lower absenteeism.

Customer loyalty:

CSR can help build a positive reputation and increase customer loyalty, which can lead to a
competitive advantage.

Cost savings:

CSR can help reduce costs by investing in energy-efficient technologies and reducing waste.

Brand differentiation: CSR can help differentiate a company's brand.

New business opportunities:

CSR can lead to new business opportunities as competition shifts from talent and products to
CSR.

Supporting communities:

CSR can help support local and global communities.

Investment opportunities:

CSR can increase investment opportunities.

Press opportunities:

CSR can present press opportunities.

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 CHAPTER-3
DISADVANTAGES

8
 DISADVANTAGES
CORPORATE SOCIAL RESPONSIBILITY (CSR) OFFERS SEVERAL
DISADVANTAGES FOR BUSINESSES, INCLUDING:

Cost Implications:

Implementing CSR initiatives can require significant financial investment, which might
affect profitability, especially for smaller businesses.

Resource Diversion:

Focusing on social and environmental efforts may divert resources and attention away from
core business activities.

Potential for Greenwashing:

Companies may engage in superficial CSR efforts just for public image, leading to
skepticism and backlash if they are perceived as insincere.

Stakeholder Conflicts:

Balancing the interests of various stakeholders can be challenging, and not all stakeholders
may agree on what constitutes responsible behaviour.

Measurement Difficulties:

Assessing the impact of CSR initiatives can be complex, making it hard to demonstrate
tangible benefits.

Short-Term Focus:

Some CSR activities may prioritize short-term visibility over long-term sustainability,
risking long-lasting impact.

9
Regulatory Risks:

In some cases, increased CSR commitments might lead to regulatory scrutiny or compliance
challenges.

Navigating these disadvantages requires careful planning and a genuine commitment to

responsible practices.

Greenwashing:

Companies may exaggerate or falsely promote their CSR initiatives.

Measuring social and environmental impact:

It can be difficult to quantify the social and environmental benefits of CSR efforts.

Meeting stakeholder expectations:

It can be difficult to meet the expectations of different stakeholders.

Conflicting with profit maximization: CSR may conflict with a business's primary
goal of maximizing profits.

Passing costs on to consumers:

CSR activities can be expensive, and businesses may pass the costs on to consumers.

Lack of social skills:

Some businesses may not have the skills to solve social problems effectively.

Lack of public support:

Society may not support businesses getting involved in social programs.

Poorly planned CSR:

A poorly planned CSR strategy can quickly become a failure and a business liability.

Reputation damage:

A poorly planned CSR strategy can damage a business's reputation.

10
 CHAPTER 4
COMPANY PROFILE

11
 PROFILE OF THE INDUSTRY AND ORGANISATION

INDUSTRY PROFILE

HYPERMARKET

A hypermarket is a large retail space that combines a supermarket and a department

store, offering a wide range of products under one roof.

Key Points

1. Size: Hypermarkets typically cover an area of 10,000 to 20,000 square meters or more,
providing extensive product selection.

Product Range: They sell groceries, clothing, electronics, household goods, and
sometimes even furniture and pharmacy items.

3. One-Stop Shopping: Customers can find everything they need in one location,
making shopping more convenient.

4. Self-Service: Hypermarkets usually feature self-service layouts, where customers can

browse and select items independently.

5. Cost Efficiency: They often benefit from economies of scale, allowing them to offer
competitive prices.

6. Global Presence: Popular brands include Walmart, Carrefour, and Tesco, found in
various countries around the world.

7. Additional Services: Many hypermarkets provide additional services like in-store

banking, food courts, and delivery options.

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COMPANY PROFILE
 COMPANY HISTORY AND BACKGROUND

RELIANCE INDUSRTIES LIMITED

Reliance Industries Limited is an Indian multinational conglomerate company

headquartered in Mumbai, Maharashtra. It was founded by Dhirubhai Ambani in 1958 and is
currently led by his son, Mukesh Ambani. It operates in various sectors, including
petrochemicals, refining, oil and gas exploration, retail, telecommunications, and media. The
company is one of the largest conglomerates in India and operates through a network of
subsidiaries, joint ventures, and associate companies. Its subsidiary companies include
Reliance Retail, Reliance Jio Infocom, and Reliance Petroleum. RIL is known for its focus on
technology and innovation and has been at the forefront of the digital transformation of India
through its telecom and internet businesses.

RELIANCE SMART

Reliance SMART is one of the largest & fastest growing Grocery retail chains in
India. Synonymous to its name, SMART is a new age supermarket serving the needs of
today’s smart and value seeking customers. Reliance SMART offers a one-stop shopping
experience by offering fresh produce, bakery, dairy products, home and personal care
products, general merchandise, smart apparels and appliances, making it a complete shopping
destination. In many cases SMART stores are co-located with our fashion & electronics store
Reliance Trends and Reliance Digital, giving customers a wide choice for all their shopping
needs. Reliance SMART’s incredible value proposition rewards shoppers more for bigger
purchases, every single time they shop, with 100% assortment being offered below MRP all
year round. Reliance Retail reported a turnover of Rs. 306,786 crores for the financial year
2023-24. As on March 31, 2024, Reliance Retail operated 18,836 stores with a retail area of
over 79.1 million sft.

Mission: To ensure value, freshness, range, and service to customers

Vision: To empower customers in their daily shopping journey

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PRODUCTS
The key services and products of Smart Reliance includes the following:

 Grocery, FMCG, F&V and Dairy etc. with “Badi Bachat”

 Netmeds Pharmacy, Medicines below MRP, all year round
 Jio Payment Bank, Banking with extended hours
 Health Care / Pathology Services
 Fashion / Electronics (through Kiosk)
 Battery Swap Station for Electric Vehicles

BRANDS

The Smart Reliance includes the following Brands:

 Freshpik
 Fresh Signature
 Reliance Smart
 Reliance Smart Point
 JioMart
 Reliance Digital
 JioMart Digital
 Cover Story
 GAP
 METRO Wholesale India
 Avantra By Trends
 Jio Stores
 Reliance Trends
 Trends Footwear
 Reliance Jewels
 AZORTE
 CENTRO
 Fashion Factory

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CHAPTER – 5
FINDINGS

15

FINDINGS
Reliance Smart, as part of the Reliance Retail segment of Reliance Industries, is involved in
several corporate social responsibility (CSR) initiatives, which generally focus on areas like
health, education, rural development, and environmental sustainability. Although much of
Reliance’s CSR is organized through the Reliance Foundation, its retail operations, including
Reliance Smart stores, contribute to CSR through initiatives like:

1. Supporting Local Communities:

Reliance Smart often participates in local community outreach programs. This includes
organizing donation drives, supporting underprivileged communities, and encouraging local
employment, especially around new store openings.

2. Promoting Sustainable Practices:

To support environmental responsibility, Reliance Smart emphasizes eco-friendly packaging
and promotes sustainable sourcing. They have also implemented energy-saving initiatives in
their stores to reduce carbon footprint.

3. Health and Wellness Programs:

Reliance Smart may engage in health awareness campaigns, often supporting local health
camps, and providing health-related information to customers and employees alike.

4. Disaster Relief:
The broader Reliance group is active in disaster response, providing relief during natural
disasters. This includes supplying food and essentials, which may also involve Reliance
Smart’s resources and supply chains.

5. Empowering Farmers and Supply Chain Partners:

Through partnerships with local farmers and suppliers, Reliance Smart plays a role in
providing fair pricing and fostering growth for rural suppliers, aligning with Reliance's
broader mission of rural development and livelihood improvement.

6. Employment Generation:
Reliance Smart, like other retail arms of Reliance, focuses on generating employment, often
providing skill training for local youth and promoting employment diversity.
These activities reflect the company's commitment to contributing to social and
environmental causes, aligning with the overall CSR strategies of Reliance Industries.

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CHAPTER – 6
SUGGESTIONS

17

SUGGESTIONS
Here are some CSR activity suggestions for Reliance Smart, focusing on impact areas
such as community welfare, sustainability, and employee engagement:

1. Plastic Reduction and Recycling Drives

Initiative:

Launch a "Bring Your Own Bag" campaign encouraging customers to reduce plastic usage.
Offer incentives or discounts for customers who bring reusable bags.

Recycling Bins:

Set up recycling bins at store entrances where customers can drop off plastic and electronic
waste. Collaborate with recycling partners to ensure proper disposal and recycling.

2. Supporting Local Farmers and Artisans

Local Produce Sections:

Dedicate a section of the store to locally grown produce and products made by artisans. This
would provide local farmers and artisans with direct access to customers.

Farmer Support Programs:

Offer workshops and resources to small-scale farmers on sustainable farming practices and
organic methods, encouraging responsible sourcing.

3. Food Donation Programs

Partner with Food Banks:

Collaborate with food banks and local NGOs to donate unsold, non-expired food items to
underprivileged communities, reducing waste and addressing hunger.

Customer Contribution Drive:

Place a "round-up" option at checkout, where customers can round up their total bill to donate
a small amount to food donation initiatives.

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4. Green Energy Adoption in Stores

Solar Panels: Install solar panels on store rooftops where possible, reducing dependency on
non-renewable energy sources.

Energy Efficient Lighting: Use LED lighting and other energy-saving equipment to reduce
the carbon footprint of each store.

5. Health and Wellness Camps

Free Health Checkups:
Organize monthly or quarterly health checkup camps in collaboration with local health
providers for employees and community members.

Nutrition Awareness:
Run nutrition awareness workshops at the stores, encouraging healthy eating habits and
promoting Reliance Smart’s healthy food options.

6. Skill Development for Youth

Retail Training Programs:
Offer retail management and customer service training sessions for young adults, helping
them gain skills relevant to the retail industry.

Scholarships for Underprivileged Students:

Establish scholarship programs for youth in areas where Reliance Smart operates, focusing
on retail or business education.

7. Digital Literacy Campaigns

Free Classes:
Partner with schools and local NGOs to provide basic digital literacy training, focusing on
communities that may not have access to such resources.

Workshops in Stores:
Organize workshops on mobile banking, digital payments, and online safety for customers
and local communities.

8. Waste Reduction in Stores

Encourage customers to use bulk bins for grains, cereals, and dry fruits to reduce packaging
waste.

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9. Employee Volunteering Programs
Paid Volunteer Days:

Offer employees paid time off to volunteer for causes they are passionate about, which can be
organized in partnership with local NGOs.

Community Cleanup Drives:

Organize regular cleanup drives around store neighborhoods, encouraging employee and
customer participation.

10. Environmental Awareness Initiatives

Eco-friendly Workshops:

Host workshops in stores on topics like home composting, waste segregation, and energy
conservation.

Eco-Friendly Packaging:

Shift to fully biodegradable or compostable packaging for Reliance Smart’s own branded
products, and educate customers about eco-friendly practices. These CSR activities can help
Reliance Smart build a strong connection with the community, promote environmental
sustainability, and create a positive impact on society.

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CHAPTER – 7
REFERENCES

21
REFERENCES

22
23
CHAPTER – 8
CONCLUSION

24
 CONCLUSION

Corporate Social Responsibility (CSR) has evolved into a fundamental aspect of modern
business strategy, reflecting a growing recognition that companies have a duty to contribute
positively to society while pursuing profit. This report has highlighted several key
dimensions of CSR, including environmental sustainability, social equity, and ethical
governance, each of which plays a vital role in shaping a company's reputation and
operational success.

Firstly, the environmental aspect of CSR emphasizes the need for businesses to minimize
their ecological footprint. Companies that adopt sustainable practices—such as reducing
waste, utilizing renewable energy, and implementing responsible sourcing—demonstrate
leadership in addressing global challenges like climate change. This not only mitigates risks
associated with environmental degradation but also attracts environmentally conscious
consumers and investors.

Secondly, the social dimension focuses on the impact of corporate activities on communities
and stakeholders. Organizations that prioritize fair labour practices, diversity and inclusion,
and community engagement foster goodwill and loyalty among customers and employees
alike. Such initiatives not only enhance employee morale and retention but also contribute to
a positive corporate culture, ultimately driving productivity and innovation.

Additionally, ethical governance is crucial for establishing trust and accountability.

Transparent operations, compliance with regulations, and proactive stakeholder engagement
help mitigate reputational risks and enhance corporate credibility. Companies that uphold
high ethical standards are better positioned to navigate challenges and build resilient
relationships with their stakeholders.

Moreover, integrating CSR into core business strategies can lead to competitive advantages.
Firms that innovate in sustainability and social responsibility often differentiate themselves in
the market, capturing the attention of consumers who prioritize corporate ethics. This
alignment with customer values can enhance brand loyalty and open new market
opportunities.

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