Professional Documents
Culture Documents
CHANDRIKA PALLE*
Cash market is the market in which trades are made for the
immediate sale or purchase of securities. In cash market
buyers pay the market price for the securities on the spot. In
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Chandrika Palle/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
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Chandrika Palle/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
introduced time to time. A study on impact An attempt has been made to analyse the
of derivatives on cash market will also help turnover of c derivative market. In the
in assessing the popularity of derivatives in process of analysis monthly average for each
based on the objective(s) of the study that calculated to know which particular market
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Chandrika Palle/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
Table 1
NSE PRODUCT-WISE GROWTH TREND IN DERIVATIVES TURNOVER (Rs. In Crores)
2010-11
Index Stock Stock Grand
Month Futures Growth Futures Growth Index Options Growth Options Growth Total Growth
April 2,79,572 100 4,09,844 100 9,05,472 100 76,731 100 16,71,620 100
May 3,95,613 142 4,31,593 105 12,17,458 134 79,832 104 21,24,496 127
June 3,72,266 133 4,21,843 103 11,69,943 129 71,547 93 20,35,599 122
July 2,89,423 104 4,23,422 103 10,43,354 115 73,710 96 18,29,910 109
Aug 2,99,130 107 4,96,267 121 11,57,466 128 1,00,865 131 20,53,728 123
Sep 3,83,872 137 5,55,581 136 16,88,469 186 1,08,470 141 27,36,392 164
Oct 4,02,457 144 6,08,830 149 17,05,514 188 1,07,693 140 28,24,493 169
Nov 4,24,789 152 5,39,872 132 19,02,944 210 98,241 128 29,65,846 177
Dec 3,22,793 115 4,32,644 106 15,19,280 168 82,391 107 23,57,109 141
Jan 3,84,484 138 4,11,149 100 19,62,516 217 83,685 109 28,41,834 170
Feb 4,02,759 144 4,01,307 98 20,44,353 226 80,876 105 29,29,295 175
CV 14 16 27 17 20
Table 2
NSE PRODUCT-WISE GROWTH TREND IN DERIVATIVES TURNOVER (Rs. In Crores)
2011-12
Index Stock Stock Grand
Month Futures Growth Futures Growth Index Options Growth Options Growth Total Growth
April 2,82,303 100 3,53,159 100 16,45,881 100 69,958 100 23,51,300 100
May 3,05,745 108 3,36,689 95 18,92,896 115 69,808 100 26,05,138 111
Aug 3,47,177 123 3,33,791 95 22,09,524 134 73,258 105 29,63,749 126
Sep 3,46,826 123 3,26,290 92 20,85,730 127 76,418 109 28,35,264 121
Nov 3,12,139 111 3,05,421 86 20,27,236 123 71,762 103 27,16,559 116
Dec 3,07,198 109 2,79,921 79 21,08,751 128 72,993 104 27,68,863 118
Feb 2,91,138 103 4,51,869 128 17,77,220 108 1,21,551 174 26,41,778 112
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Mar 3,37,972 120 3,84,126 109 21,56,837 131 1,00,296 143 29,79,231 127
CV 11 14 12 22 10
Table 3
2012-13
Index Stock Stock Grand
Month Futures Growth Futures Growth Index Options Growth Options Growth Total Growth
April 2,28,989 100 3,03,853 100 15,73,860 100 1,00,615 100 22,07,317 100
May 2,66,002 116 3,03,008 100 20,37,937 129 1,12,897 112 27,19,843 123
June 2,64,304 115 3,04,796 100 19,63,477 125 1,08,129 107 26,40,706 120
July 2,24,504 98 3,35,785 111 17,57,190 112 1,35,603 135 24,53,083 111
Aug 1,99,628 75 3,15,699 104 17,73,000 113 1,43,841 143 24,32,169 110
Sep 2,06,910 78 3,49,877 115 18,70,592 119 1,64,569 164 25,91,949 117
Oct 2,16,004 96 3,88,103 128 19,07,596 121 2,02,506 201 27,14,209 123
Nov 1,69,757 85 3,49,431 115 17,81,059 113 1,79,570 178 24,79,817 112
Dec 1,76,492 85 3,92,327 129 18,93,973 120 1,77,600 177 26,40,393 120
Jan 1,90,094 88 4,95,366 163 19,66,918 125 2,98,597 297 29,50,975 134
Feb 1,79,682 106 3,61,294 119 18,39,346 117 1,94,775 194 25,75,097 117
Mar 2,04,763 116 3,24,332 107 24,16,627 154 1,81,724 181 31,27,446 142
CV 15 16 11 5,29,972 83,35,644
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Chandrika Palle/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
Table 4
NSE PRODUCT-WISE GROWTH TREND IN DERIVATIVES TURNOVER (Rs. In Crores)
2013-14
Index Stock Index Stock Grand
Month Futures Growth Futures Growth Options Growth Options Growth Total Growth
April 2,08,590 100 3,65,064 100 21,92,470 100 2,44,039 100 30,10,163 100
May 2,45,783 118 4,09,851 112 26,21,647 120 2,26,521 93 35,03,801 116
July 2,53,644 122 4,28,504 117 22,51,414 103 2,46,830 101 31,80,393 106
Aug 3,27,735 157 4,10,088 112 29,00,978 132 1,75,120 72 38,13,921 127
Sep 3,17,154 152 3,87,799 106 25,24,746 115 1,51,859 62 33,81,558 112
Oct 2,97,026 142 4,16,432 114 22,81,809 104 2,10,799 86 32,06,066 107
Jan 2,63,691 126 4,85,233 133 23,20,692 106 2,54,757 104 33,24,374 110
Mar 2,53,892 122 5,21,103 143 23,06,996 105 2,43,713 100 33,25,705 110
CV 16 12 12 20 10
Table 5
2014-15
Index Stock Index Stock Grand
Month Futures Growth Futures Growth Options Growth Options Growth Total Growth
April 2,19,025 100 5,41,303 100 17,31,584 100 2,17,914 100 27,09,826 100
May 3,82,840 175 8,08,882 149 26,03,964 150 2,76,020 127 40,71,706 150
June 3,39,617 155 8,34,723 154 28,97,812 167 2,95,986 136 43,68,139 161
July 3,66,247 167 8,04,572 149 33,96,550 196 2,96,531 136 48,63,900 179
Aug 2,86,237 131 6,09,162 113 30,08,386 174 2,51,040 115 41,54,824 153
Sep 3,32,651 152 7,34,203 136 37,24,832 215 3,10,588 143 51,02,274 188
Oct 2,78,770 127 5,54,556 102 30,29,192 175 2,70,218 124 41,32,735 153
Nov 2,61,325 119 6,28,954 116 29,48,557 170 2,71,676 125 41,10,512 152
Dec 3,54,123 162 6,35,492 117 41,36,955 239 2,50,181 115 53,76,751 198
Jan 241 55,89,879
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Feb 4,38,460 200 7,26,572 134 39,91,306 231 2,75,801 127 54,32,139 200
Mar 4,39,265 201 6,98,648 129 42,88,684 248 2,64,915 122 56,91,512 210
CV 21 14 23 10 19
Table 6
NSE PRODUCT-WISE GROWTH TREND IN DERIVATIVES TURNOVER (Rs. In Crores)
2015-16
Index Stock Index Stock Grand
Month Futures Growth Futures Growth Options Growth Options Growth Total Growth
April 3,85,461 100 6,76,410 100 43,53,956 100 2,83,933 100 56,99,759 100
July 3,91,736 102 7,19,881 106 42,70,405 98 3,23,551 114 57,05,572 100
Aug 4,35,122 113 7,34,924 109 43,90,964 101 3,37,664 119 58,98,674 103
Jan 3,79,136 98 6,98,909 103 43,91,173 101 3,59,810 127 58,29,028 102
Feb 4,22,228 110 6,84,616 101 51,26,280 118 3,39,620 120 65,72,744 115
CV 13 8 15 15 13
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Chandrika Palle/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
cash market and derivatives market turnover between 11 – 21 percent. The case is same
are increasing simultaneously. This reveals respectively with Index Options, stock
that in the case of NSE cash market and Futures and Stock Options.
derivatives market both are growing at a 8. COMPOUNDED MONTHLY GROWTH
time. RATE
The NSE derivative market indicates the Compound monthly growth rate for
growth trend of Index Futures which has derivative instrument (NSE) has been
been a continuous rise in its mean turnover. calculated to assess the compound monthly
The co-efficient of variations of Index growth rate of index futures, stock futures,
Futures indicates there is more or less index options and stock options.
inconsistency in its turnover which ranges
Table: 7
COMPOUNDED MONTHLY GROWTH RATE OF INDEX FUTURES (NSE)
Table: 8
COMPOUNDED MONTHLY GROWTH RATE OF STOCK FUTURES (NSE)
Months 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
MAR 4,05,316 3,63,405 3,84,126 3,24,332 5,21,103 6,98,648
APR 4,09,844 3,53,159 3,03,853 3,65,064 5,41,303 6,76,410
MAY 4,31,593 3,36,689 3,03,008 4,09,851 8,08,882 6,28,531
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Table 9
COMPOUNDED MONTHLY GROWTH RATE OF INDEX OPTIONS (NSE)
Table 10
COMPOUNDED MONTHLY GROWTH RATE OF STOCK OPTIONS (NSE)
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Chandrika Palle/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
REFARENCES
Abhilash S. Nair “Impact on derivative trading on volatility of the
underlying evidence from Stock market” IIM Kozhikode,
kerala vol.3./FIM/2008/01
Dr.Sasidharan K “A critical evaluation of the performance F&O
segment in Indian Capital market, paper prepared in
2006,unpublished available at:www.derivatives forum.com
Kailash Chander & K.Sham Bat “An empirical analysis of the
impact of futures on spot market volatility evidence from
National Stock Exchange, India “,Indian Journal for
economics & Business,Dec2008.
Ravi Agarwal,Shiva Kumar ,wasi F mukhtar,Hemanth
Abar,”Impact of Derivatives on Indian Stock
market”presented in Indian Finance summit 2009 organised
by BIMTECH,Greater Noida, India Electronic copy
available at http://ssrn.com/bubstock=1500327. Spot
markets” published in prerana, vol.1. (2009).
Surjit Bhattacharya & Arunima Saxena “Stock Futures Introduction
& impact on Indian
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International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
1. INTRODUCTION
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Aliasghar Kodhaverdi/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
Until while ago the concept of e-government the UN in 2010, although Iran is generally
was a whole unknown phenomena in Iran, lag behind other markets in the rankings of
which it may still be for a large group of e-government implementation, there has
citizens. During the year of 1382 ( 21 march been improvement in the region since the
2003 to march 2004) the Iranian Parliament 2008 survey.
approved the allowance of a budget
Iran, (Persia) or officially the Islamic
equivalent to 100 million USD for the
republic of Iran (as it is called today) is a
purpose of implementing and developing of
large Western Asian country located in the
information and communication
Middle East, Central Asia and the Caucasus.
technologies in the public administration of
Its area equals the size of the United
Iran. From this time forth, the cabinet
Kingdom, France, Spain and Germany
authorized a comprehensive program for
combined. Iran borders Armenia, Azerbaijan
implementing several national information
and Turkmenistan to the north, Afghanistan
and communication projects. This program
and Pakistan to the east, and Iraq and
incorporated projects such as e-government,
Turkey to the west. In addition, it borders
e-commerce, e-banking, e-learning and e-
the Persian Gulf, across which lie Kuwait,
health. Recently introduced as a
Iraq, Saudi Arabia, Bahrain, Oman, Qatar
consequence of IT in the knowledge and
and the United Arab Emirates. Shia Islam is
information age and has been applied by
the official state religion and Persian the
many governments around the world in
official language. The people within present
practice. Iranian authorities also have
day Iran are the descendants of many of the
decided to take the essential methods
world’s oldest known civilizations. The
required for implementing e-government in
history of people in Iran covers over six
Iran. However, the large size of the
thousand years, and throughout history, Iran
government in Iran and many other
has been of great geostrategic importance
problems such as the lack of required legal,
because of its central location in Eurasia.
institutional and human resources
Iran is the founding member of the United
infrastructures make the planning and
Nations, NAM, OIC, OPEC and ECO. Iran
implementation a difficult task. With this in
is significant in international politics on
mind, it is refreshing to note that, according
accounts of its large supply of petroleum
to the E-Government Survey published by
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Aliasghar Kodhaverdi/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
and regional influence. The name of Iran is a Asiimwe Edgar Napolean., et.al (2007)
cognate of Aryan and literary means “land discussed in their paper “Continuous
of Aryans”. developments in mobile technology have led
to massive acquisition and adoption of
2. REVIEW OF LITERATURE
mobile devices at a fast pace. The
According to Antonio Cordella, Niccolo penetration of mobile use is higher in
Tempini (2015) there is a substantial developing countries than that in developed
literature on e-government that discusses countries. The emerging developments as
information and communication technology well as rapid adaptability of mobile
(ICT) as an instrument for reducing the role technologies have raised research interests
of bureaucracy in government organizations. in the field of mobile government (M-
The purpose of this paper is to offer a Government). The aim of this study is to
critical discussion of this literature and to investigate the current status of mobile
provide a complementary argument which government research. This study is based on
favors the use of ICT in the public sector to literature reviews. Different terms
support the operations of bureaucratic describing m-Government were used as
organizations. Based on the findings of a keywords to retrieve relevant literature
case study of the Venice Municipality in published in leading international journals
Italy the paper discusses how ICT can be and reputed conference proceedings. Then
used to support rather than eliminate the main thematic views of each retrieved
bureaucracy. Using the concepts of e- literature have explored.
bureaucracy and functional simplification
Ibrahim Kushchu, M. Halid Kuscu (2008)
and closure, the paper proposes evidence
highlighted in their paper “The changes in
and support for the argument that
the Internet and World Wide Web
bureaucracy should be preserved and
technologies and services lead to new
enhanced where e-government policies are
developments in the way e-government
concerned. Functional simplification and
efforts provide services to citizens and
closure are very valuable concepts for
businesses, and in the way governments
explaining why this should be a viable
handles their internal operations. One of the
approach.
revolutionary developments comes from
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expanding substantially among the and access to mobile users and level of
population of Iran in near future. This acts satisfaction among them.
as a platform in providing vast majority of 5. METHODOLOGY
Iran with the means to participate in mobile-
In the present study, quantitative method is
government (m-Government).
used. The purpose of adopting a quantitative
Therefore, researcher assumes that there is method for data collection is to develop the
vast potential of m-Government to function overall understanding of the role of mobile
as a driving force for e-government services in providing M- Government to
implementation in Iran as an appropriate mobile users. Data analysis done with help
issue for exploration. Researching of this of SPSS.
issue is appreciable as delivery of various 5.1 SOURCES OF COLLECTING DATA
services can be made at personal level, and The research is undertaken by way of a
identification of barriers for the survey. Survey research utilizes instruments
implementation of e-government in Iran can such as questionnaires and interviews to
be found. Appropriate e-government gather information from groups of
implement strategy can be formulated respondents and is usually based upon data
through m-government as mobile can be obtained from participation observation
easily affordable, penetration of mobile (Borg & Gall, 1989). Survey research, as
internet services is expanding and mobile defined by Kerlinger (1986 p. 377), is the
usage is increasing at a rapid pace in Iran. type of research that “studies populations by
As relevant conceptual frame work is selecting and studying samples chosen from
available and hence, it is both necessary and the population to discover the relative
timely for this study to be undertaken. incidence, distribution and interrelations of
sociological and psychological variables.”
4. RESEARCH OBJECTIVES
The social scientific nature of survey
1. To examine the socio-economic status of research is revealed by the nature of its
the mobile users. variables, which can be classified as
sociological facts and opinions or attitudes.
2. To assess mobile applications usage for
Sociological facts are attributes of
various needs between citizens to citizens.
individuals that originate from their
3. To probe strength of internet connection
membership in social groups: gender,
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Aliasghar Kodhaverdi/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
City Village
City Village
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are completely satisfied with internet usage 4. Reasons for not satisfied with internet *
Place
and followed by 22(2.2%) of the
respondents in the village have said that they Majority of the respondents 120(12%) in the
are completely satisfied by internet usage. city have said that they are not satisfied with
(Table.2.P.52) internet usage because of the
City Village
Unaware Count 194 156 350
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Aliasghar Kodhaverdi/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
low speed of internet and followed by the respondents in the village have said that
126(12.6%) of the respondents in the village they can rarely have access to the internet.
have said that they are not satisfied because Majority of the respondents in the city have
of the low speed of internet. (Table4. P.53) said that they are not satisfied with internet
5 .Tariff of Internet * Place usage and followed by of the respondents in
Majority of the respondents 288(28.8%) in the village have said that they are satisfied
the village have said that they are not with internet usage somewhat.
satisfied with tariff of internet and followed This paper concludes services provided by
by 252(25.2%) of the respondents in the city m-Government lead to better, faster and less
have said that they are not satisfied with limited provision of services to citizens.
tariff of internet. (Table.5, P.53) Also Thus, it is suggested that organizations and
56(5.6%) of the respondents in the village institutes in the governmental sector should
have said that they are satisfied with tariff of take effective steps in presenting mobile
internet. Only 54(5.4%) of the respondents services with regards to the capability of
in the city have said that they are satisfied every region considering the expansion of
one of the most important concepts that have and preparation and then the presenting
been in the top consideration for the last services stage should be selected in such a
decades. Majority of the respondents are in way to have the most efficiency for citizens.
the city have internet connection and minor This fact not only will increase the
respondents from village also have internet efficiency of governmental sectors but also
connection on the mobile. Also some of the will fulfill the citizens’ satisfaction.
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Revanth Kumar. G/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
predominant in recent times for most of the developing new international markets
companies as they are using it for their without the existence of representative or
benefit. It is a form of direct marketing for sales offices and agents. The Internet also
commercial communicating or fund raising provides new methods to improve customer
messages to audience. The core of e-mail services and is considered as the most cost-
marketing conceder very email sent to effective marketing tool as it reduces paper
potential customers or a targeted client. works and number of staff as well as by
E-marketing means using digital passes operating offices.
technologies to help sell you goods or This paper evaluates the opportunities and
services. challenges of E- marketing upon business
Email marketing is a form of direct and its significance of E marketing in India.
marketing that allows the brand to connect 2. OBJECTIVES OF STUDY
with a huge database of audiences. It is more To review the present scenario of E-
effective and inexpensive mode of Marketing in India
communication. To Identify the Opportunities and
The development of e marketing has been Challenges of E-Marketing in India
one of the most important and influential 3. SCOPE OF STUDY
trends in the field of business marketing and The Study is on the subject of E – Marketing
information Technology offer the past in India, which include the strategies,
decade. It has revolutionized the manner in opportunities and challenges of the
which certain businesses market their companies using E-Marketing in India.
products and the advent of social media 4. SOURCES OF DATA
offers the potential to revolutionize the The study is carried out using Secondary
manner in which business and consumers data. The data has been collected from the
The benefits of using Internet marketing are and various websites also.
relationship) and a new product distribution With more than 198 million Internet users,
channel. In addition to this, Internet India was the third-largest online market
marketing offers new opportunities for ranked only behind China and the United
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Revanth Kumar. G/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
States and declaring itself as a market not to in 2014. Happily, three signs of growth are
be ignored on the global stage. Of the evident that could break the slow progress of
millions of Internet users in India, come Internet marketing in India and could lead
from the 25-34 age brackets of those who into a promising future. You can see this
use the Internet at home or at work what through the existence of small sites, the role
makes the 38 percent usage of internet, a of social media, and innovative ideas. The
percentage that was higher than any other development of small websites is an integral
age group surveyed. Additionally, men part in the strategy to promote businesses
dominated internet usage with 61 percent to online. Advertising products and services
women’s 39 percent. 5.1 hours, it is the turns easy through this means. Potential
average daily online usage in the country customers are readily accessible through the
amongst internet users. Internet
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Revanth Kumar. G/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
for new and traditional media to play The Internet is no longer a specialty
together. Now, India’s rapidly economic technology as far as Socio Economic Class
improvement made the country one of the A and perhaps even B is concerned it is
world’s fastest growing economies. It’s more powerful than mass media as it is an
large and growing and can quadruple GDP utterly integral part of modern life and it is
and catapult India to the unity,of developed interactive. By online media almost no
economies over the next decade. aspect of life remains untouched. As our
lives become busier and cluttered, when it
Internet has been the biggest contributing
comes to researching and buying products it
factor in this growth. With a growth
isn’t surprising that consumers turn to the
percentage of 30% in the year gone by, it is
matchless, convenience of the Internet,”-
unarguably the sector with highest growth
N.S.Muthukumaran, Director, Online
rate in India. By needing of skilled Internet
Research, The Nielsen Company, India.
marketing workforce, jobs continue to be
By the end of FY2007-08, the e-commerce
created. We need to recognize new
market in India has already reached Rs.9,
opportunities and prepare the supply side.
210crore. According to a survey conducted
by the Internet and Mobile Association of
6. REVIEW OF LITERATURE
To buy online is within the theoretical India (IAMAI) and Indian Market Research
constructs Behavior and intentions of Bureau (IMRB) this segment had market
Internet users the Theory of Reasoned size of Rs.7,080crore at the end of 2006-07
Actions. The Theory of Reasoned Action and growth at an average rate of 30 per cent
(Fishbein, 1980) examines the relationship in 2007-08. According to the study, the three
between future intention to participate in major triggers of e-Commerce in India were
these buying behaviors and attitudes. saving of time, convenience associated with
According to Cheung et al (Online shopping at home and the availability of a
Consumer Behavior: A Review and Agenda range of products. However, the report also
for Future Research, 2003), for the highlighted problems to growth such as
development of an online consumer product quality, security issues with regard
behavior framework a base model called to e-transactions and the ability to bargain.
Model of Intention, Adoption, and
Continuance (MIAC).
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Revanth Kumar. G/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
Dr Subho Ray, President, IAMAI, said, accessible website the cornerstone of web
“Consumer e-commerce is a major driver of marketing it will be hard to reach customers
the economy and we are happy that it has that don’t live in the same town or have
achieved a very decent size in India. It is never heard of the company. Companies
perhaps the only sector which has operated such as Thumbs up or Life style, businesses
under, sometimes, hostile and at all other that aren’t household names of global
times indifferent policy environment.” visibility begin on the Web. Having a sound
The “Online shoppers tend to stick to the Internet marketing strategy ensures the best
shopping sites they are familiar with. chance of success.
Capturing the online shoppers early and Businesses continue to refine their tactics
creating a positive shopping experience for and strategy with a focus on
them would prove beneficial in the long run Engagement: How to engage the audience
for marketers,” said Muthukumaran. and best connect (customer service).
Audience: How to find and target their
7. STRATEGIES IN E-MARKETING BY audience
INDIAN COMPANIES Tools: What are the best social media tools?
When entering an Internet marketing zone, a Measurement: How to measure their return
company should identify some important on investment from their social activities?
issues such as different target customers, 8. VOICE OF INDIAN RETAILERS
another way to contact customers, Internet As per the study conducted by
security, new competitors, etc. ActoneGo.com along with Retailer
In the 21st century for most people running association of India (RAI) in the year of
a company, Internet marketing strategies are 2015, 3rd annual Retail e-Marketing unified
an indispensable part of the business plan. voice of Indian retailers. The
While small businesses such as local shops extensive Indian Retail e-Marketing
may require some form of web marketing, study has been prepared by the ardent
any business that wants a broad customer participation from more than 80+ retailers
reach should research the potential of a solid across India. The data was collected over a
Internet marketing strategy. period of 30 days from 20th April to 19th
As commerce continues to go global, May 2015, comprising responses from the
companies that lack an easy-to-find, industry rule setters to budding startups
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Revanth Kumar. G/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
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Revanth Kumar. G/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
10. CONCLUSION
The paper clearly shows that E-marketing
impacts in various numbers of ways upon
businesses. When used effectively, e-
marketing campaigns and strategies have the
potential to reach customers in a speedy and
12. 48% have allocated more than 10% low-cost manner and can provide promotion
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Revanth Kumar. G/International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
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marketing-in-india-2016/#sthash.eH9P0aO7.dpuf
https://www.academia.edu/8512383/ONLINE_MARKETING_CH
ALLENGES_AND_OPPORTUNITIES
https://www.academia.edu/8512383/ONLINE_MARKETING_CH
ALLENGES_AND_OPPORTUNITIES
http://taheera1.typepad.com/blog/2010/03/-describe-the-
opportunities-offered-to-businessesusing-
internet-marketing-in-relation-to-business-e.html
http://gatton.uky.edu/faculty/sudharshan/publications/InternetMark
etingResearch.pdf
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International Journal of Academic Research in Social Sciences & Humanities, 2(3), 2016.
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friendly. CSR can involve a range of domains (Sen et al. 2006) and that firms
activities such as working in partnership with higher CSR ratings may have a
with local communities, socially sensitive sustainable competitive advantage rooted in
investment, developing relationships with human capital as they attract more and better
employees, customers and their families, employees than firms with lower CSR
and involving in activities for environmental ratings (Carmeli 2005; Hunt et al. 1989;
conservation and sustainability. This article Turban and Greening 1997). Consequently,
focusses its attention on the concept of CSR, in order to pursue sustainable development,
the laws related to CSR and the role of and, achieve a good reputation in a fiercely
Government in implementation of CSR. competitive market, more and more
companies are publishing their CSR
1. INTRODUCTION
disclosures and CSR reports. Since the
The early roots of corporate social 1950s, CSR and
responsibility can be traced back to 1917, its related terms,
when Henry Ford announced that the aim of such as
Ford Motor company is that “To do as much corporate social
as possible for everybody concerned, to responsiveness,
make money and use it, give employment corporate social
and send out the car where the people can responses,
use it and incidentally to make money” (Lee corporate social performance, corporate
2008, p. 54). CSR initiatives are very citizenship and corporate philanthropy have
important in the context of business ethics been conceptualized and mainly originated
(Maignan and Ferrell 2004). During the last from the management area (e.g., Carroll
57 years, several findings have caught the 1979; Matten and Crane 2005; Wood 1991).
attention of CSR practitioners and scholars. Over the decades, the concept of corporate
These include studies which suggested that social responsibility (CSR) has continued to
CSR activities provide an “insurance-like” grow in importance and significance. It has
protection when negative events happen been the subject of considerable debate,
(Godfrey et al. 2009); that CSR activities not commentary, theory building and research.
only influence sales growth, but also In spite of the ongoing deliberations as to
influence the employment and investment what it means and what it embraces, it has
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developed and evolved in both academic as interest in CSR in the European Union and
well as practitioner communities worldwide. around the world.
The idea that business enterprises have some 2. OBJECTIVES OF THE STUDY
responsibilities to society beyond that of To Study the evaluation of corporate
making profits for the shareholders has been social responsibility.
around for centuries. For all practical To study the role of government for
purposes, however, it is largely a post-World implementation of CSR.
War II phenomenon and actually did not To overview the CSR related laws.
surge in importance until the 1960s and 3. BACKGROUND AND HISTORICAL
the past half century. Today, one cannot The roots of CSR certainly extend before
pick up a newspaper, magazine or journal World War II, but we will not go back that
ssion of the issue, some recent or innovative on the shoulders of business leaders (Spector
example of what business is thinking or 2008). In this connection, Bert Spector has
doing about CSR, or some new conference argued that the roots of the current social
that is being held. The business community responsibility movement can be traced to the
has formed its own organizations period 1945–1960, the early years of the
specializing in the topic. Business for Social Cold War. He has argued that Dean David
corporations with expertise on the subject business interests with the defense of free-
and an opportunity for business executives market capitalism against what was then
to advance the field and learn from one perceived to be the danger of Soviet
another. There has been an explosion of Communism (Spector 2008). In the 1950s,
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there was some limited discourse about (Levitt 1958). In spite of Levitt’s warnings,
CSR. Frank Abrams, a former executive CSR would grow in popularity and take
with Standard Oil Company, New Jersey, shape during the 1960s, driven largely by
introduced concerns about management’s the social movements that defined the times,
broader responsibilities in a complex world especially in the US, and by the forward-
(Abrams 1951). Abrams argued that, as thinking academics who were attempting to
management was professionalizing, articulate what CSR really meant and
companies had to think not just about profits implied for business. In the US, the most
but also about their employees, customers important social movements of the 1960s
and the public at large. And Howard R. included civil rights, women’s rights,
Bowen published his seminal book, Social consumers’ rights and the environmental
Responsibilities of the Businessman in 1953 movement. Key events, people and ideas in
(Bowen 1953). Bowen’s book was these movements were instrumental in
noticeably ahead of its time, by at least a characterizing the social changes ushered in
decade, but it came to shape significantly during the 1960s. In each of these arenas,
future thought on the subject. William C. business perceived expectations being
Frederick, a noted contributor to the CSR communicated which eventually had to be
literature, argued that there were three core addressed. Thus, the foundation for CSR
ideas about CSR that stood out in the 1950s. was being developed by a quickly changing
These included the idea of the manager as social environment and pressures from
public trustee, the balancing of competing others, especially activists, to adopt CSR
claims to corporate resources, and corporate perspectives, attitudes, practices and
philanthropy – business support of good policies. In the 1960s, companies initially
causes (Frederick 2006). During the 1950s, did not perceive a ‘social’ environment in
there was scant discussion of linking CSR the way that we do today. Yet, piece by
with benefits for businesses themselves. The piece, the overall social environment was
primary focus was on businesses’ being constructed by these movements and
responsibilities to society and doing good the result would be a dramatically different
works for society. Theodore Levitt closed context, in which business would then have
out the 1950s by warning the business world to operate. Though the 1960s seemed ripe
about the dangers of social responsibility for advances in social responsibility thought,
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the decade was still reeling from Professor actions taken for reasons at least partially
Theodore Levitt’s admonitions about ‘the beyond the firm’s direct economic or
dangers of social responsibility’. Levitt technical interest’ (Davis 1960, p. 70). At
thought that social concerns and the general the same time, William C. Frederick argued
welfare were not the responsibility of that businesses’ resources should also be
business, but of government, and that used for broad social goals (Frederick 1960,
business’s job was to ‘take care of the more p. 60), and Joseph McGuire posited that
material aspects of welfare’. Levitt feared social responsibility urges corporations to
that attention to social responsibilities would assume certain responsibilities to society
detract from the profit motive that was so which extend beyond their economic and
essential for business success. But, there legal obligations (McGuire 1963). A later
were also positive voices advocating the analysis by Patrick Murphy argued that the
social responsibility movement. In fact, 1960s and early 1970s were the ‘Awareness’
significant progress was made by both and ‘Issue’ eras of CSR. This was a period
government and academics, and businesses of changing social consciousness and
were following in parallel. As the 1960s recognition of overall responsibility,
transitioned into the 1970s and beyond, the involvement in community affairs, concern
particular emphasis in the CSR concept about urban decay, correction of racial
evolved primarily through the academic discrimination, alleviation of pollution, and
contributions in the literature and the slowly the continuing philanthropic era in which
emerging realities of business practice. This there was a focus on charitable donations by
history and evolution has been treated businesses (Murphy 1978). From about the
elsewhere (Carroll 1999, 2008; Lee 2008), 1950s forward, Hay and Gray characterized
so only some thematic highlights are this period of CSR development as ‘Quality
touched upon here. The CSR literature of Life Management’, as contrasted with
expanded significantly during the 1960s, and earlier periods, which emphasized profit
it tended to focus on the question of what maximization and trusteeship management
social responsibility actually meant and its (Hay and Gray 1974). Frederick
importance to business and society. Keith characterized the 1960s and 1970s as a stage
Davis argued that social responsibility of ‘corporate social responsiveness’
referred to ‘businessmen’s decisions and (Frederick 2008). Another characteristic of
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the 1960s was an absence of any coupling of was also about placing an emphasis on
social responsibility with financial achieving results or emphasizing the
performance (Lee 2008, p. 58). In other outcomes of socially responsible initiatives
words, social responsibility was driven (Carroll 1979; Wartick and Cochran 1985;
primarily by external, socially conscious Wood 1991). This focus on outcomes was
motivations, and businesses were not moving the field closer to the idea of the
looking for anything specific in return. ‘business case’. At least when outcomes are
Formal definitions of CSR began to emphasized, this sets the stage for attempts
proliferate in the 1970s, and the overall to measure or gauge the results of CSR
trajectory was towards an emphasis on CSP policies and practices. On the CSR front, the
(Carroll 1999; Sethi 1975). The 1970s was 1980s produced fewer new definitions of the
the decade in which corporate social concept, more empirical research, and the
responsibility, responsiveness and rise and popularity of alternative themes.
performance became the center of These CSR variants included corporate
discussions. Ackerman (1973) and Murray public policy, business ethics and
(1976) argued that what was really stakeholder theory/ management as well as
important was not that companies were further developments in CSP which arrived
‘assuming a responsibility’, but that on the scene in the 1970s (Carroll 1999, pp.
companies were responding to the social 285–289). Frederick termed the 1980s as the
environment. Frederick (1978) formalized beginning of the ‘corporate/business ethics’
this distinction by differentiating corporate stage, wherein the focus became fostering
social responsibility (CSR1) from corporate ethical corporate cultures (Frederick 2008).
social responsiveness (CSR2). CSR1 Research seeking to link CSR with corporate
emphasized companies ‘assuming’ a socially financial performance (CFP) exploded
responsible posture, whereas CSR2 focused during this decade, and the search for a
on the literal act of responding or of tighter coupling with firm financial
achieving a responsive posture towards performance became the order of the day
society. In the mid-1970s, an emphasis on (Lee 2008, p. 58). One could well argue that
CSP more clearly emerged. In one respect, the search for the business case for CSR
CSP was an attempt to reconcile the began and came-of-age during this decade,
importance of both CSR1 and CSR2, but it especially for academic researchers. This
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trend continued in the 1990s, and the quest development of the social responsibility
for CSR accelerated in terms of its global theme, though significant advances were
outreach. The 1990s and 2000s became the made, especially in the UK and continental
era of global corporate citizenship Europe (Moon 2005). The quest for the
(Frederick 2008). The early 2000s became business case for CSR certainly became a
preoccupied with the Enron Era of scandals, dominant theme during this period,
and these headlined the news until 2008, especially as the business community was
when the Wall Street Financial Scandals Era seeking to rationalize and legitimize the
began wreaking havoc all over the globe and activities it had begun and were continuing.
will most likely be with us for some time In the early 2000s, the business community
(Carroll 2009). Though CSR continued its became fascinated with the notion of
quest to find business legitimacy, the sustainability, or sustainable development,
emergence and preoccupation with business and this theme became an integral part of all
ethics obscured the continued growth and CSR discussions.
4. THE FOUR MODELS OF CORPORATE RESPONSIBILITY
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present-day CSR (also called corporate community and society at large. CSR simply
responsibility, corporate citizenship, refers to strategies corporations or firms
responsible business and corporate social conduct their business in a way that is
opportunity) is a concept whereby business ethical and society friendly. CSR can
organizations consider the interest of society involve a range of activities such as working
by taking responsibility for the impact of in partnership with local communities,
their activities on customers, suppliers, socially sensitive investment, developing
employees, shareholders, communities and relationships with employees, customers and
other stakeholders as well as their their families, and involving in activities for
environment. This obligation shows that the environmental conservation and
organizations have to comply with sustainability. This article aims to analyze
legislation and voluntarily take initiatives to three theories of CSR namely utilitarian,
improve the well-being of their employees managerial and relational in terms of their
and their families as well as for the local meaning and practical emphases.
5. THE COMPANIES ACT, 2013
In India, the concept of CSR is governed by
clause 135 of the Companies Act, 2013,
which was passed by both Houses of the
Parliament, and had received the assent of
the President of India on 29 August 2013.
The CSR provisions within the Act is
applicable to companies with an annual
turnover of 1,000 crore INR and more, or a
net worth of 500 crore INR and more, or a
net profit of five crore INR and more. The
new rules, which will be applicable from the
Act lists out a set of activities eligible under
CSR. Companies may implement these
activities taking into account the local
conditions after seeking board approval. The
indicative activities which can be
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the European Union since the 1970s whereas have been passed to support sustainable
a shift towards ‘shared responsibility’ development including the climate change
between government and industry is another levy, the community investment tax credit
favourable policy approach since the mid- and the Pensions Act. The company law
1990s. In the UK, the government’s review (1998-2002) has rejected the concept
privatization programme of the 1980s of ‘pluralism’ which would have required
shifted public expectation of the private directors to consider the interests of other
sector. Whilst until then, social objectives stakeholders as well as pursuing the interests
had been mainly the responsibility of of shareholders, but the government’s white
government, the privatization of gas, water paper, which incorporated the review’s
and electricity introduced a new paradigm. It recommendations, has communicated the
created public companies owned by message that directors would be foolish to
shareholders pursuing the same kind of omit such matters.22 23 A question of
financial returns as in any other public interest therefore in the contemporary debate
company, but the companies had also clear of CSR is whether government should assist
social objectives. In the case of the business to exceed its legal obligations and
privatized utilities, these social objectives hence commit itself to socially responsible
were managed through the regulatory behaviour, as defined in current terms. A
regime, but the existence of the companies second question considers the nature of a
as ‘stock market vehicles’ demonstrated that potential government role: Should
financial and non-financial objectives could government create the opportunities/enable
co-exist (Cowe, Porritt, 2002). The Labour business to opt for the business case for
government has maintained the interest to CSR? Or should government create the
‘bridge’ public and private, social and environment for business to realise the
financial objectives by drawing the private potentials of seeking legitimacy directly
sector into the provision of social goods ie, from the firm’s stakeholders rather than
public-private partnerships. The government shareholders alone?
has taken steps to reinforce the 7. CONCLUSION
responsibility of the private sector with The ever increasing business enterprise is
regard to its social and environmental just one side of the coin. The existence of
impact. A number of legislative measures social problems is another side. Both
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industries and social problems in the society David Polášek, M.B.A., Corporate Social Responsibility in Small
and Medium-Sized Companies in the Czech Republic,
Escuela superior de marketing y administración barcelona,
are growing hand in hand. The czech management institute praha, Faculty of Management,
2010.
implementation of CSR by various business Dr. Hind Bushra Ahmed Ibrahim , The Role of Kenena Sugar
Company’s CSR in Community Development Case Study:
enterprises can make the growth inversely Fangoa Cluster Communities, White Nile State, Sudan ,
Journal of Economics and Sustainable Development, Vol.6,
proportional. The business enterprises No.11, 2015 .
Maimunah ISMAIL ,corporate social responsibility and its role in
community development: an international perspective ,
should incorporate CSR as one of their Uluslararası Sosyal Aratırmalar Dergisi The Journal of
International Social Research Volume 2 / 9 Fall 2009.
strategies to propagate their business and Martin Samy , Henry Itotenaan Ogiri , Roberta Bampton , (2015)
"Examining the public policy perspective of CSR
show their social responsibility towards the implementation in Sub-Saharan Africa", Social
Responsibility Journal, Vol. 11 Iss: 3, pp.553 – 572.
betterment of the society. Despite several Ms. Shruti Garg, CSR in context of Companies Act 2013 and
SMEs , International Journal of Enhanced Research in
Management & Computer Applications, ISSN: 2319-7471
laws, still the implementation of CSR is Vol. 4 Issue 1, January-2015, pp: (51-54), Impact Factor:
1.296.
limited. The voluntary participation of Pavel Adámek , Opportunities and Options for Government to
Promote Corporate Social Responsibility in the Czech
companies to contribute their part to the Republic , World Academy of Science, Engineering and
Technology International Journal of Social, Behavioral,
societal development should be encouraged Educational, Economic, Business and Industrial
Engineering Vol:8, No:9, 2014 .
Younush Rana, CSR is become a tool for driving a roll to create an
and the Government should impose strict education to employment road map in India within in next 5
years, November 3, 2012.
rules for CSR implementation. Contributing Yuhui Gao,Shuo Wang , What Do We Know about Corporate
Social Responsibility Research? A Content Analysis, Irish
to resolve social problems along with Journal of Management on 27th January 2014 DOI:
10.1515/ijm-2016-0001.
earning profits for their stake holders will https://www.linkedin.com/pulse/20140531065132-71211544-csr-
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to-employment-road-map-in-india-within-in-next-5-years>
also increase the scope of the industry. CSR www.ukessays.com/essays/commerce/financial-performance-of-
price-comparison-sites-commerce-essay.php
increases the sense of responsibility among http://link.springer.com/article/10.1007/s10551-015-2549-9?no-
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business firms. http://link.springer.com/article/10.1007/s10551-015-2549-9?no-
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Ankit Sharma, Handbook on Corporate Social Responsibility in
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Corporate Social Responsibility: A Review Of Concepts,
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2370.2009.00275.x.
Constantina Bichta,corporate social responsibility a role in
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1. INTRODUCTION
Received: 23 Dec 2015
Revised: 22 Feb 2016 M-Pesa officially came into existence in 2007 through
Accepted: 1 Apr 2016
Published: 10 Sep 2016 Vodafone for Safaricom which is the largest mobile network
operator in Kenya. It spread fast and by 2010 it had become
the most successful mobile-phone based financial service in
the developing world. M-Pesa is a mobile money transfer
system created to allow microfinance borrowers and senders
to conveniently send and receive money through the
conversation of cash through electronic systems which happen
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at retail stores (agents). The transactions services across all borders. M-Pesa’s
are all recorded and authorized in real time success means that there is need for small
using secure SMS. electronic transactions and it’s designed
with certain limits on how much is to be
In 2015, Safaricom entered into a deal
transacted on a daily basis. M-Pesa acts as
with MTN a leading mobile network in
a role model to other mobile money
Uganda that will see their respective
transfer businesses because of its major
mobile money customers transfer money
success despite all the corruption and
to each other across the seven East African
development of technology with the
countries. The official merging between
attached disadvantages also. M-Pesa
two large mobile money operators now
subscribers can register for the M-Pesa
enables convenient sending of cash
services by filling up a simple form and
between M-Pesa customers in Kenya,
providing any identification proof. To load
Tanzania, DRC, Rwanda and Mozambique
the money on the wallet, the user needs to
with MTN mobile money customers in
visit the nearest agent and deposit cash
Uganda and Zambia as well. The
there and to access the service, the users
Safaricom Company has recorded over 1.5
will be required to dial *840# then follow
trillion transactions in the first semi
the instructions with the cash being sent in
quarter of 2015 with M-Pesa being its
Kenyan shillings and received in Ugandan
biggest revenue platform. Apparently the
shillings based on the prevailing exchange
two companies Safaricom and MTN boast
rates. The transaction charges depend on
about the very large number of active M-
the amount of money being transferred and
Pesa users with Safaricom having
whether the payee is a registered user of
22million M-Pesa users and MTN Uganda
the service plus the activation cost is a
with 5million mobile money users as well
fixed amount for a given range of
which is considered a great deal among
transaction.
both companies.
“We are excited to offer affordable
According to the press,
remittance services from M-Pesa to MTN
Safaricom’s director of financial services
mobile users in Uganda”, said Mr. Phrase
Betty Mwangi said that this was yet
Lubega MTN Uganda’s General Manager
another affirmation of their intention to
in charge of financial services. He also
make it possible for their individuals and
mentioned that their subscribers will from
business customers to enjoy convenient,
now henceforth be able to cash out at any
affordable and reliable mobile money
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of the 5500 agents across the country. The people to have access to a mobile phone,
partnership between MTN and Safaricom but do not have or have only limited
is set to increase trade between the two access to a bank account, to send and
nations and offer more cheap remittance receive money, top up airtime and bill
services especially since Uganda is one of payments. Customers register for the
Kenya’s top trading partners. The usage of service at an authorised agent, often this is
the mobile money transfer service is a small mobile store or retailer and then
mainly driven by the high number of deport the cash in exchange for electronic
traders operating from Kampala and other money which they can send to their
towns in the country and other kinds of families or friends. Once they have
regular day to day people like students, registered, all transactions are completed
teachers, doctors, lawyers, etc. M-Pesa is securely by entering a PIN number or code
also not classed as a deposit taking and both parties receive an SMS
institution such as a bank and its customers confirming the amount that has been
can deposit and withdraw money from a transferred. The recipient, who does not
network of agents that include airtime have to use the same network, receives the
resellers and retail outlets acting as electronic money in real- time and then
banking agents. The service enables its redeems it for cash by visiting another
users to; deposit and withdraw money, agent.
transfer money to users and non-users
Since its introduction in March of
(subscribers), pay bills, purchase airtime,
2007, the M-Pesa money transfer system
transfer money within the service and in
has seen its popularity with the un-banked
some nations like Kenya, Uganda,
population rush, making the application a
Tanzania, Rwanda, etc.
great success all over the country. In a
1.1 M-PESA countries like Kenya, Tanzania, Uganda
M-Pesa is the world's most successful and other low earning countries where
money transfer service. It’s one of the best almost 80% do not have access to the
products of Safaricom Kenya. It was traditional banking system and there are
developed by Vodafone which initially more mobile outlets like M-Pesa than
holds a 35% share in Safaricom. The “M” ATMs. Immediately after the system was
stands for mobile well as “Pesa” in Swahili launched, it was attracting new subscribers
stands for money. It’s a mobile based at the rate of 12000/day, quickly building a
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the millions of person- to-person (P2P) was started, customers adopted the service
and customer-to-business (C2B) for a variety of alternative uses and
transactions, M-Pesa has made a big complications arose with MTN, the
difference to peoples' lives in other ways. partnering MFI. In discussion with other
For example in Tanzania where the cost of parties, M-Pesa was re-focused and
travel prevents many people from getting launched with a different value
the medical care they need, one non- proposition: sending remittances home
government organisation (NGO), across the country and making payments.
Comprehensive Community Based The transaction infrastructure between the
Rehabilitation in Tanzania (CCBRT), has two networks has been enabled by MFS
used M-Pesa to send patients the money to Africa, which develops and distributes
pay for their travel to its hospitals. In mobile financial solutions to markets
Kenya, water company customers use M- across Africa. MFS Africa's Chief
Pesa to buy credits which are transferred Executive Officer, Dare Okoudjou said,
from their phone to their key receiver “We are confident that the cashless
which is then used to pay for fresh, clean revolution that started in Kenya almost a
water when they need it. Since its decade ago, will now unlock not only
commercial launch in March of 2007, M- intra-African remittances but also serve as
Pesa has received substantial scale and a catalyst for trade and economic growth
influential awards as well. in the region.”
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empowering the lower class people This paper studies the implementation,
especially to be able to send cash or regulations, services, status of M-PESA in
receive cash across countries and the Uganda and population of M-PESA Users.
ability of their phones to do the 2.2 PERIOD OF STUDY
transactions through SMS which expands The study has been conducted from the
leader in the market. The following is a This paper focused on M-Pesa since its
which M-PESA operates. Primary Pesa and its current situation like its
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required finding an individual that could like the National Water and Sewerage
be trusted, who was travelling to the Company in Uganda, have scrapped all of
relevant village and at the appropriate time their cash collection centres and resorted
(i.e. when the need arises). This individual to using banks and mobile money as the
should also know the recipients of the only ways for users to pay their dues.
funds and be willing to pass by their home
MNOs have also started cultivating
or link up with them to deliver the money.
merchants for m-payments, mainly
When considering that the person sending
targeting large entities with multiple
the money will most likely in any event
Outlets like supermarkets. For example,
uses a mobile phone to call ahead to alert
M-PESA and MTN as one are working
the relatives about the delivery that is to be
with Uchumi supermarkets in Uganda.
made and factoring in issues of reliability,
Many small businesses cannot qualify for
security and speed.
m-payments because they need to open a
9. M-PAYMENTS corporate account that requires them to be
Money is exchanged between two users legally registered with a range of
with an accompanying exchange of goods documents and a permanent physical
or services. From m-transfers, MNOs have address. Institutions in other sectors, such
broadened mobile money services to as education, health, tourism and
include a range of m-payments. MNOs insurance, are increasingly waking up to
started out by targeting individuals that the opportunities of using mobile money
receive recurrent payments from different as another payment channel for their
customers like utility companies (e.g. customers.
power, water, sewage, Pay TV, etc.) and
10. M-FINANCIAL SERVICES
those that make bulk payments (e.g.
M-Pesa services may be connected to a
salaries and school fees). Many of these
bank account to provide the user with a
services were launched as free promotional
whole range of transactions (savings,
offers to help build the businesses and
credits) that they would generally access at
prove their utility to the consumer. Some
a bank branch. In other cases, users can
service providers have stated that they can
access different financial-related services
bear the cost for their customers remitting
like insurance, micro-finance, etc. via their
dues via mobile money because it affords
mobile phone. Some transactions spread to
them a cheaper avenue to collect dues
different service categories. For example, a
from customers on a regular basis. Others,
user can access his or her bank account
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percent from 14.2 million customers in MM subscription actually grew faster than
2013 to 18.5 million customers in 2014. mobile telephony subscription. For the
The number of transactions increased by review period, the number of mobile
28.9 percent from 38.3 million in 2013 to money subscribers grew by 10%, resulting
49.4 million in 2014 and the value of the into 1,846,773 new mobile money
transactions increased by 16.9 percent subscribers. On the other hand, the number
from 1,982 billion shillings in 2013 to of mobile SIMs subscribers grew by 14%
2,316 billion shillings in 2014. bringing on board 2,666,928 new mobile
subscribers. The drop in the growth rate of
Mobile money services is one of many the mobile money subscribers is partly
value-added services that since gained a attributed to inability of the agent network
significant foothold in the communications expanding fast enough to cope with extra
sector. Since its introduction about five demand for cash-in and cash-out services
years ago, mobile money services have needed by subscribers.
grown by leaps and bounds, to the point
where much as mobile telephony 12. UGANDA MOBILE MONEY
subscription grew faster than MM TRANSACTIONS, 2010 - 2014
DESCRIPTION PERIOD
2010 2011 2012 2013 2014
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25,000,000
21,910,948
19,244,020 19,490,935
20,000,000
17,644,162
16,665,310
15,535,989
15,000,000 1 1 No of mobile
12,117,821 6 4 subscribers
% 4 %
10,000,000
7 Mobile
5,662,871 % 1 Money
0 Registered
5,000,000
% Subscribers
0
2011/12 2012/13 2013/14 2014/15
(Source:http://www.ucc.co.ug/files/downloads/Annual%20Market%20Industry%20Report%2
02014-15-%20October%2019-2015.pdf)
13. SERVICE CHARGES OF MTN UGANDA and individuals with bank accounts. M-
The mobile money agents represent a transfers are still the dominant form of
critical component of the mobile money transaction and given the lack of viable
through which users cash-in (convert cash smaller the amount transferred, the higher
into mobile money) or cash-out (convert the total fee (sending + receiving) as a
mobile money into cash) allowing proportion of the amount transferred via
convertibility between mobile money and mobile money. For example, consider the
cash. In the beginning, both cash-in and lowest threshold on MTN Mobile Money.
cash-out transactions were associated with To transfer U Sh 5,000, the total fee
economies of scale and greater per cent of the transaction amount. For a
competition, all MNOs in EAC now offer transactional amount of U Sh30,000 within
cash-in services for free. Once users have the same threshold, the fee is similar, but
mobile money in their wallet, they can then corresponds to only 5 per cent of the
highlighted above. The range of possible Nevertheless, users are still willing topay
transactions is growing. Other payment because there are no cheaper alternatives
instruments like debit or credit cards in that will enable a user to send such small
EAC are still the preserve of the well-off amounts of money while taking into
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account issues of reliability, security and seems set up to encourage registered users
speed associated with informal methods. to make more transfers amongst
In addition, it is always more expensive to themselves (and presumably find another
send money to a non-registered user than reason to stay with the provider) as
to a registered one. This holds true across opposed to non-registered users. For some
all mobile money platforms in EAC. For platforms (e.g. M-PESA), more money can
registered users, the total m-transfer fee is be sent in a single transaction to registered
split into a sending and a withdrawal than to non-registered users. Besides
component and shared between the sender attracting non-registered users to join the
and the receiver, making it appear cheaper platform, some may also argue that a
to both parties. For m-transfers to non- sender may have some influence over the
registered users, the cost is borne entirely receiver.
by the sender. The pricing mechanism
14. MTN MOBILE MONEY CHARGES FOR M-TRANSFERS IN UGANDA (SENDING AND
RECEIVING)
Amount UGX Sending Money UGX Withdrawing Money UGX
In the past year Safaricom has been on an Before licensing the telecom was not
expansion plan for M-Pesa across the allowed to handle outward cash
region, after the Central Bank Kenya transmission even to neighbouring Uganda
(CBK) awarded it a cash remittance for or Tanzania and had been offering
operating license last year, enabling it to onesided international cash transfer
carry money transfers out of the country. services moving money into Kenya
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through partners such as Western Union trust which will increase on their market
and Money Gram.The large population of penetration in Uganda making it another
Kenyan students who depend on huge success story or a major fail as well.
remittances from their parents or guardians
16. CONCLUSION
provide a big base for Safaricom to grow
M-Pesa's launch is enabling and advancing
its business in the country. Safaricom
the access to financial services in Uganda
signed a similar money transfer deal with
and across the Ugandan border making
Vodacom in Tanzania in March send
other competitor mobile networks come up
Rwanda's MTN in October this year.
with similar services just to reach its
Under the agreement with Vodacom,
standards which may not be possible
Safaricom subscribers sending money to
because of its fast growth. Though it has
Vodacom's M-Pesa network would be
almost just launched in Uganda (2015), it
charged one per cent of the value of
has shown a major increase in the number
transaction plus an exchange rate fee. The
of customers regardless of the challenges
same will also apply to Vodacom M-Pesa
it’s facing as well. With an increasing
clients.
customer base, M-Pesa is expected to gain
15. SUGGESTIONS a higher force making the mobile money
The fact that M-Pesa has found its way channel a vital part in transfer of small
into Uganda, shows how much power it sums of money country wide and
has over the East African countries and international wise. This report shows an
other developing countries and since it has update of how M-Pesa came about its way
started in Uganda in less than a year there to Uganda and its current status in Uganda.
is little information in aspects like how the
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