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CORPORATE SOCIAL RESPONSIBILITY_CSR_ Powered By Docstoc
					India’ Growth Story
India     seeing   growth     rates
 significantly above 3% by 2050
Next 10 year Indian Economy
growing by 4 times
 Education sector to grow 5.7 times
 Domestic pharma and health care- 6 times
 Media and entertainment 5 times
 Organised retail 6.3 times
 Automobile sector 4.8 times
 Urban premium housing 6.5 times
Key risk to achieve and managing
this growth

 The income disparity levels in India are amongst the
 highest in the world.

            in BRIC countries are still likely to be
 Individuals
 poorer on an average than individuals in the G6
 economies
INCLUSIVE GROWTH – GROWTH OF
 ALL

It is important that the Bottom of
the pyramid participates in the
growth process.
riple Bottom Line and CSR
CSR that commensurate with the
changes and challenges the growth
brings in.
CSR IS
Demonstration of
 - a commitment to society’s values,
 - contribute to society’s social goals
 - environmental goals and
 - economic goals
             -- through action
CSR FOCUS
 PEOPLE
 PLANET
 PROFIT
 “TRIPLE BOTTOM LINE”
ACTUAL STAKEHOLDERS OF COMPANIES

                     ENVIRONMENT



      •   GOVT. AGENCIES   •    COMMUNITY/CITIZENS




                       COMPANY
     SHAREHOLDERS
                                     •     EMPLOYEES




               CONSUMERS       SUPPLIERS
  Companies & CSR
Three kinds of Indian companies when it comes to
 corporate responsibility:

 Big Indian multinational corporations that have
  proper corporate Responsibility mechanisms in place
 Large national companies that appreciate the value of
  corporate Responsibility but have no inherent
  structures to show for it
 The many small and medium-sized enterprises that
  are doing only Piecemeal work
    Did you know that….

•   A paper company manufactures paper from waste cloth to reduce the use of
    pulp from trees
•   A Chemical manufacturer has protected the largest stretch of mangroves
    along Mumbai’s coast
•   A software company has developed a special call receiving software for 1098-
    Childline , India’s national helpline for children in distress
•   An FMCG company is working to protect and conserve endangered plant
    species in India through re-forestation programmes


•   A construction company (in Mumbai) posted a 60 % profit in 2010 amounting
    to Rs.1400 cr. and did not do any activity to benefit society
•   Don’t Drink and Drive is the CSR campaign of a leading company that makes
    alcoholic beverages
•   A drug manufacturer in India provides gifts and vacations abroad to doctors
    who prescribe its products.
•   A power generating company is the highest CO2 emitter in India
Times Foundation
                          Observations
51%   509 Companies reporting their CSR activities in either the Annual
      Report or Website
2%    21 Companies have published a separate Sustainability Report

3%    30 out of 1000 companies have reported the amount spent on CSR

10%   107 out of 1000 companies are doing CSR through a trust or
      foundation
90%   More than 90% high impact companies have no separate environment
      report
40%   Widely done CSR area is Education followed by Healthcare and Rural
      upliftment.
                         Observations….
All PSU’s undertake a basic minimum level of CSR based on mandatory
regulations (e.g. relating to employment)

Individual companies that are part of a larger group do not list their individual CSR
activities; the same CSR activities are listed for all companies of a Group


Poor performing Sectors- Construction, Entertainment and Media, Mining, Retail


Best Sectors- Banking, Software, FMCG, Paper
“Every company harms the
environment!”
                 (Just as an
individual does)
Sustainable Development –
environmental protection
A Heap of used Water Bottles
What should corporate do

 The whole society is looking at
 corporate and almost staring at them
 as polluters

 Corporate should have record of their
 carbon footprint and disclose how do
 they deal with that
For those companies which disrespect the
environment or living beings, we, as
responsible citizens, need to individually and
collectively, reward or penalise them through
our voices and our wallets.
Just 2% still believed that
 the only business of
 business is business.
       Do more, say the people
Social development

 Focus on nation building
 Rural development
 Employment
 Education for all
 Health for all
 Community support
 women's’ empowerment, girl child
 Capacity Building – skill development, training
 Community Development – education, health, poverty
 Social Challenges
Dr Reddy’s Foundation
"Everyone has a purpose in life and a unique talent to
  give to others. And when we blend this unique talent
  with service to others, we experience the ecstasy and
  exultation of own spirit, which is the ultimate goal of
  all goals."

      - Dr. Anji Reddy
ITC has won the prestigious
Corporate Social Responsibility
Closing Statement…
 Enlightened businesses worldwide, small and large, have
  begun to realise that responsible practices enhance
  profitability and ensure long term survival. Companies not
  doing CSR will not survive –it’s only a question of when

 For those companies which disrespect the environment or
  living beings, we, as responsible citizens, need to
  individually and collectively, reward or penalise them
  through our voices and our wallets.
Golden Peacock Global Award for corporate social
responsibility (CSR) This award has been showered for
Coca Cola India's contribution towards its efforts in
community development - for replenishment of ground
water and setting a target of year to reach a "net zero"
balance with respect to groundwater usage.
The New Red, White & Blue
Front lines of a green revolution.
Top-Rated Companies for
Social Responsibility
 Reliance Industries and two Tata Group firms – Tata
  Motors and Tata Steel – are the country’s most
  admired companies for their corporate social
  responsibility initiatives in the field of education,
  environment conservation and public health,
  according to a Nielsen survey.
 Under its Corporate Service Corps (CSC) programme,
  IBM joined hands with the Tribal Development
  Department of Gujarat for a development project
  aimed at upliftment of tribals in the Sasan area of Gir
  forest.
Top-Rated Companies for
Social Responsibility
 Towards curbing of carbon footprints at office, 2010 witnessed
  various initiatives including application of renewable energy
  technologies, moving to paperless operations, and recognition of
  environmental standards.
 Financial organizations—where paper usage is comparatively
  higher than other sectors—including HSBC India, Max New
  York Life and Standard Chartered Bank continued with the year-
  before’s resolution of asking their customers to shift to e-
  statements and e-receipts.

 Telecom operators including Airtel, Aircel, Vodafone and Idea,
  too, pushed their efforts to shift as many customers to e-bill and
  save paper.
CHANNELS OF IMPLEMENTING
CSR
 In-house team
 Trust or Foundation as an independent arm of the
    company
   Non-Governmental Organization (NGO)
   Industry consortia
   Collaboration with on-going Government programme
   Public- Private partnership.
Some suggestion……………..
1) Minimum annual CSR expenditure
  Every company must spend a minimum of 0.2% of its sales
  on CSR activities (i.e. Rs. 20 Lakhs per Rs. 100 Crores)
2) Reporting
  A Corporate Sustainability section to be included in the
  Annual Report and preferably a separate Corporate
  Sustainability Report (as per the Global Reporting
  Initiative framework) to be published.
 CSR linked to the skills of a company
 CSR linked to the location of a company
 Create inclusive employment
 Ensure responsible behavior in supply chain
 Use core competence
 Link CSR to government’s development plans
“Sarve bhavantu sukhinah:
    Sarve santhu niramayaaha: /
    Sarve badraani pasyantu
    Ma kaschith dhukha baag bhavet // ”

   “Let all people be happy
    Let all live with complete good health
    Let all know what is good and what is not so
     good
    Let no body be subjected to troubles”


				
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posted:11/5/2012
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