1. Role of NGOs in
CSR

2. NGOs
• NGOs are legal organizations that affect decisions and
distribution of resources of governments and companies.
• They aim to be opinion leaders and pressure groups and
initiate strategic changes by creating public awareness
and reaction via media and web sites.
• Each NGO focuses on certain issue such as protecting
human rights, labor rights, and environment.
• NGOs are powerful organizations to inform people, initiate
reactions and boycotts against governments and
companies.

3. NGO types by
orientation
• Charitable Orientation It includes NGOs with activities directed
toward meeting the needs of the poor -distribution of food,
clothing or medicine; provision of housing, transport, schools
etc. Such NGOs may also undertake relief activities during a
natural or man-made disaster.
• Service Orientation includes NGOs with activities such as the
provision of health, family planning or education services in
which the program is designed by the NGO
• Participatory Orientation is characterized by self-help projects
where local people are involved particularly in the
implementation of a project by contributing cash, tools, land,
materials, labor etc.
• Empowering Orientation is where the aim is to help poor
people develop a clearer understanding of the social, political
and economic factors affecting their lives, and to strengthen
their awareness of their own potential power to control their
lives

4. NGO Types by level of
operation
• Community-based Organizations (CBOs) arise out of
people's own initiatives. These can include sports clubs,
women's organizations, neighbourhood organizations,
religious or educational organizations.
• Citywide Organizations include organizations such as the
Rotary or lion's Club, chambers of commerce and industry,
coalitions of business, ethnic or educational groups and
associations of community organizations
• National NGOs include organizations such as the Red
Cross, YMCAs/YWCAs, professional organizations etc. Some
of these have state and cuty branches and assist local
NGOs.
• International NGOs range from secular gencies such as
Redda BArna and Save the Children organizations, OXFAM,
CARE, Ford and Rockefeller Foundations to religiously
motivated groups. Their activities vary from mainly funding
local NGOs, institutions and projects, to implementing the
projects themselves.

5. Perceptions of NGOs
• According to a survey conducted by
Environics and Gallup in 47 nations in 2002
48 %-52 % of respondents stated that they
had little to no trust in global companies
or large national companies.
• Whereas, 32 % of respondents expressed
distrust in NGOs and 59 % of respondents
stated that they had a lot or some trust in
NGOs.

6. Strategic Approach towards CSR
• NGO’s have strategic missions, visions and goals to
achieve and gain support of the public and other
stakeholders.
• Have missions that can be shared with the public,
other stakeholders and organizations.
• They develop attainable visions, form organizational
culture. They determine their approaches to their
members and other stakeholders.
• Their strategic plans are consistent with their
missions, visions and goals.

7. Continued
• NGOs gain the support of media, opinion leaders,
independents groups and public besides the support of
their members.
• Organizing meetings and workshops, using management
information systems and effective communication tools
such as media and internet to inform these groups and
gain their support. This support help to find new funds and
not to be controlled by governments and other
organizations.
• The strategic cooperation between NGOs at national and
global levels support their growth strategies, help to
develop core competencies and get the advantage of
different expertise.
• They reveal reports to public to inform about their
practices and their results to survive and gain the public
support.

8. The Business
Environment
• There are approximately 60.000 global companies and 500.000 foreign
affiliates in the world. They are central organizers of the global economy.
They invest $600 billion abroad annually and control two thirds of
international trade .Global FDI exceeded $US 916 billion and around $US
334 billion of it was made to developing countries in 2005
• Although some companies act responsibly most of the time, there are many
national and global companies that do not care about corporate social
responsibility and try to extract benefits and profits by harming natural
resources and exploiting employees and people in poor countries.
• International agreements and national laws should encourage global
companies to move beyond corporate social responsibility to corporate
accountability. Corporate accountability means that companies have a
legal obligation to uphold international standards and protect the rights of
their stakeholders.
• Governments, NGOs, multilateral institutions such as the United Nations and
the World Bank affect companies to be aware of their social responsibility,
act based on ethical values, help poor people and countries; protect the
environment, human, labor and customer rights.

9. Role of Media
• Press, TV channels and web sites are widely used by NGOs to create public
awareness and coercion for corporate social responsibility practices of
companies.
• There are several publications and web sites that highlight the best and the worst
corporate social and environmental responsibility practices. Publications such as
Ethical Consumer exist to help consumers to make ethical purchases.
• There are ethical pensions and stock portfolios for people who prefer to invest in
socially responsible companies..
• According to a survey by MORI, 80 percent of people thought large companies
had a moral responsibility to society in 2002. According to another survey by
MORI, 46 percent of people thought that social responsibility in corporate
behavior was very important in 2001
• On the other hand, it is very difficult to monitor, manage and report corporate
social responsibility practices of companies. E.g.:Shell emphasises that it aims to
be a good neighbour in Nigeria but it does not clean up oil spills quickly not to
ruin local villages. Coca Cola stresses that it uses natural resources responsibly
but it depletes village wells in an area where water is scarce in India. BP, Shell,
Nike, Reebok, and Disney are critisized by human rights groups and labor unions
in the past few years.

10. • People for the Ethical Treatment of Animals (better
known as PETA) maintain a list on their Web site of
companies who do animal testing and encourage
others to refer to this data.
• A dedicated animal-loving researcher named Alex
Poulos keeps his own list of “good” (no testing) and
“bad” (testing) companies on a site called “Vida
Compassion” or “Alex’s List.” .
• Another list comes from the American Anti-Vivisection
Society (AAVS)—which now has set up a “Leaping
Bunny” certification program. If you are interested in the
animal testing issue, you should probably explore the
information on these sites and many others listed here.
• NFP sources give us information on things like mercury in
fish (Oceana), involvement in Burma (The Burma
Campaign and Global Union Burma), and a list of who is
in the coal industry (Coal Mining Engineer’s List).

11. • NGOs can influence the media and the public
opinion, mobilise people on the streets so they can
exert pressure on the corporate sector
• NGOs have different roles at different times, use
different tactics from protests to collaboration to
enforce their messages
• NGO’s use several tactics to encourage companies
to accept their social responsibility: advocacy of
social accounting and independent verification
schemes, the filing of resolutions of the shareholders,
documentation of moral shaming and abuses, calls
for boycotts of products of company and
divestment of stocks, advocacy of selective
purchasing laws and government-imposed
standards and litigation seeking punitive damages

12. Role of NGOs
• Sustainable development by regulating hazardous
wastes.
• NGOs have begun to fix their sights on powerful
corporations - many of which can rival entire
nations in terms of their resources and influence.
• NGOs have helped organizations to focus on
externalities apart from economic gain.
• Increasing pressure from activists and from NGOs
• Auditing audits – Labour Human and
Environmental records.

13. • Stakeholder theory adoption by activists – not
shareholder centric but society centric.
• Integration of stakeholder theory into the decision
making process.
• Example - Devotion of energy and resources by
companies to environmental and social affairs.
• Companies are taking responsibility for their
externalities and reporting on the impact of their
activities on a range of stakeholders.

14. Cos and NGOs
cooperation
• NGOs need
o Public support,
o New members and
o Financing
• To achieve this – Projects for the welfare of the society – to
gain public trust.
• Companies can approach NGOs to conduct corporate
responsibility projects whereas NGOs can approach
companies to find financing for their prospective projects.
• Appropriate partners should be chosen - with good
reputation.
• They should prepare reports that show the needs for the
projects in the society and to companies.

15. • Mutually beneficial goals and missions of the project
• Projects should aim at long term relationships
• Marketing strategies should be effective and should be
agreeable by both the parties
• CSR projects should be supported by top management and
other stakeholders.
• Top management plays an important role in the success of the
projects.

16. Ikea
• Ikea, the international retailer of furniture and household
goods, has a reputation for low prices and fresh,
innovative design. However, it is also keen to develop a
reputation for environmental stewardship and sensitivity to
social issues.
• The Ikea Group of Companies has around 150 stores in 22
countries. It was founded in 1943, and in 2001 had a
turnover of 11.3 billion euros. It employs 70,000 people,
and purchases its raw materials from more than 50
countries, principally China, Sweden, Poland, Germany
and Italy.
• Most of Ikea's sales take place in Germany (21%), the USA
(13%), the UK (12%), France (9%) and Sweden (7%).
• In September 2000, Ikea launched The Ikea way on
purchasing home furnishing products, a three-page 'code
of conduct' for its 2,000 suppliers, focusing on working
conditions and environmental impacts
• As a first step, suppliers were asked to return a
questionnaire to ascertain how well they already
complied with the code.

17. • Ikea has also shown itself not to be shy of working with
lobby groups. As long ago as 1991, it collaborated with
Greenpeace to find a way of printing its catalogues on
chlorine-free paper.
• Several years later, Greenpeace was enlisted again,
this time to advise Ikea on how to phase out PVC from
its product range
• One of Ikea's most weighty environmental issues is
forestry, and in particular the impact of timber
extraction on ancient forests. At the end of the 1990s,
pressure from Greenpeace and other environmental
groups led Ikea to introduce a policy prohibiting the use
of wood from intact natural forests, except those
certified by the Forest Stewardship Council. This was
formally launched in November 1999.
• 'Ikea is joining the movement of responsible corporate
consumers concerned about ancient forests,'
commented Greenpeace's forest campaigner,
Christoph Thies.

18. • At the beginning of 2000, the company
has donated US$2.5 million to help launch
Global Forest Watch, a World Resources
Institute project set up to gather
information about the world's remaining
intact natural forests.
• 'Ikea dissociates itself from child labour,
and works actively against it.' To this end,
the retailer requires suppliers to keep it
informed about where production is
taking place - including the activities of
subcontractors.

19. Starbucks
• On the other hand, Starbucks has worked with NGOs since 1996. Global Exchange that
is a non-governmental organization focused on human rights criticized Starbucks not
buying Fair Trade coffee in 2000.
• It accused Starbucks to profit at the coffee farmer’s expense by paying low prices and
not buying ‘Fair Trade’ coffee beans. Starbucks made an agreement to collaborate
with the Ford Foundation, Oxfam America, and CEPCO to get rid of this critisicm in
2002.
• Oxfam America that is a member of Oxfam International is an NGO dedicated fighting
poverty, hunger, and social injustice in the world. CEPCO is the largest association of
small-scale coffee producers Oaxaca that is one of the poorest state in Mexico. Its
members are 16.000 farmers and 44 cooperatives.
• The Ford Foundation is a private, non-profit institution that provides loans and grants to
organizations that support its goals around poverty, democratic values, injustice,
human achievement and international cooperation. Starbucks and the Ford
Foundation provided financial support, each committing $125.000 per year for the
two-year pilot project for a total of $500.000.
• This collaboration had four overreaching goals: Increase the supply of high quality
Certified Fair Trade coffee for specialty coffee market in US from small-farmer
cooperatives; improve the skills of small-scale coffee farmers by providing training and
resources to implement and standardize post-harvest quality improvement; provide
information and support to enable farmers to earn Premium prices by producing a
high-quality coffee; and enable farmers to disseminate their knowledge and
experiences to other coffee cooperatives.
• Oxfam also shared its broader view of human rights with Starbucks. Oxfam and
Starbucks developed greater mutual respect for each other.

20. Bharat petroleum
• BPCL has continued its focused action in the area of
Corporate Social Responsibility (CSR) with thrust in the areas of
Education and Water Conservation.
• Through the various CSR initiatives along with NGOs across the
country, BPCL has been able to impact the lives of around
70,000 people.
• Projects were also initiated for the education of 1050 tribal
children in Araku Valley in 3 residential schools in collaboration
with Naandi foundation, a NGO working in this field.
• BPCL also partnered Agastya International Foundation, a NGO
in a ‘Science on Wheels’ project to reach out to 10,000
children across 70 rural schools near the Solur LPG plant in
Bangalore.
• Under Project Boond, 20 villages were converted from ‘water
scarce to water positive’. The project is being extended to
districts in Karnataka and Uttar Pradesh.

21. Continued
• As a part of the Livelihood Programme, BPCL has, in
collaboration with SEWA, a reputed NGO, imparted chikankari
skills to 500 women in Lucknow.
• In an effort to bring agro-based knowledge through
technology, making the process simple and easily accessible
to the women farmers, a programme has been initiated with
the MS Swaminathan Research Institute for the widows of
farmers in the district of Wardha.
• A Corporate CSR Booklet ‘ Umang’ was released, capturing all
the CSR initiatives undertaken across the country.
• BPCL won the ‘CIDC Vishwakarma Award 2012’ for CSR for the
second consecutive year and also won the ‘Aqua Excellence
Award’ for Project Boond.
• BPCL was recently conferred with the Aaj Tak Care award
under the Livelihood category for the project ‘Economic
Empowerment and Income Generation’ which has benefited
and impacted rural women in Lucknow.

22. EDF and McDonalds
Collaboration
• 23 years old
• Joint task force established: EDF scientist,
Economist, Chemical engineer and
McDonald’s managerial team to review
McDonald’s operations.
• EDF decided to take no money from
McDonald’s
• Transparency maintained by EDF
• Waste Reduction Action Plan developed

23. Outcome of EDF & McD
Collaboration
• Phase-out of McDonald’s polystyrene
Styrofoam clamshells that used to encase all
hamburgers
• 70-90 per cent reduction in packaging waste
as the switch was made over to paper-based
wrapping.
• No extra costs incurred
• Recycling of one million tons of corrugated
boxes,
• packaging reduced by 300 million pounds
• Waste reduction from restaurants by 30
percent.

24. WWF & Coca Cola
• Coca-Cola partnership with the World Wildlife
Fund (WWF) to improve the water quality in the
western stretches of the Yangtze (Chinese River)
• Partnership on 3 Fronts
• First, watershed management projects in two
crucial upper Yangtze tributaries. For example, one
project works with farmers to encourage them to
prevent the runoff of pig waste into water, diverting
the material into bio-gas instead.

25. • Bottling plants in the Yangtze basin also adopted
best practices for water usage, to the point at
which they can claim “water neutrality.”
• Coca-Cola is improving water recycling at the
company’s factories, and is encouraging the same
throughout its supply chain
• Both Coke and WWF staff also work with Chinese
sugar farmers to streamline their production and
reduce water use.

26. Challenges
• Chinese government officials tend to shun non-
profits, choosing to micro-manage such work
through locally-approved NGOs. WWF has come
under fire from other advocacy groups because of
its cooperation with corporations that they view as
the central part of the problem.

27. Conclusions
• Companies should balance their social, environmental and
financial responsibilities.
• They should choose NGOs and projects based on their missions,
visions and goals.
• They shouldn’t try to conduct to corporate social responsibility
projects just for public relations activities.
• They should act based on values and ethical standards. They
shouldn’t harm the environment and exploit people for benefits of
their shareholders and profits.
• On the other hand, NGOs should not be used by companies to
gain public support. They shouldn’t only focus on having
reputation, big funds and many supporters.
• They should convince companies to conduct projects that will
provide substantial benefits and funds to protect the environment,
human, labor and customer rights; improve the living conditions of
people, serve nutrition, health care and education for poor, old,
sick and disabled people.
• The cooperation projects between NGOs and the private sector
should initiate big changes and improvements in the society and
the lives of people.

28. Current Scenario in India
• Govt Regulation: Mandatory 2% spending on CSR
Activities
• NGOs would have to learn to work with the corporate
world for maximising the social benefits
• Corporate Sector has no clue how to spend that 2% (est.
Rs 8000cr to 20000cr) on CSR Activities
• It is a challenge for NGOs to absorb the CSR allocations
and translate it into effective programmes.
• NGOs should not be just implementing the CSR projects
but also help the companies in strategising
• Social sector attractive for youngsters by making it a
remunerative sector.
• NGOs need to be more transparent and accountable as
they look forward to be funded by the business houses

29. THANK YOU
Made by:
• Nitin gupta(514)
• Pranav Prateek(515)
• Shashank sharma(519)
• Yogendra yadav(530)
• Arpit goel
• Parag Gidh(564)