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Corporate social responsibility in india
1.
2. “ Business too owes an obligation to society. I urge
you to consider what your obligations are today. In
discovering opportunities to invest in social useful
projects, in creating new avenues of progress for the
un-privileged, in investing in the less developed
regions for the benefit of marginalized sections of
our society. Corporate social responsibility is not
philanthropy. It is not charity. It is an investment in
our collective future”
Dr. Manmohan Singh
(on JRD Tata Birth centenary celebration, 24 August 2004)
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer
3. Corporate Social Responsibility
“CSR is a concept which suggests that commercial
corporations must fulfill their duty of providing
care to the society”
• Ethical behavior of a company (or business) towards society.
Promoting activities like engaging directly with local
communities, identifying their basic needs, and integrating
their needs with business goals and strategic intent.
• The government perceives CSR as the business contribution
to the nation’s sustainable development goals.
• Essentially, it is about how business takes into account the
economic, social and environmental impact of the way in
which it operates.
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental
Officer
4. International Organisations
say on CSR
• European Commission States:
CSR is a concept which integrates social and environmental
concerns in their businesses and in their interactions with their
stakeholders on a voluntary basis.
• World Business Council for Sustainable Development:
Its publication, Corporate Social Responsibility: Making Good
Business Sense (January 2000), highlighted the importance of
continued commitment by business to behave ethically and
contribute to economic development. It also noted the
importance of improving the quality of life of the workforce
and their families as well as of the local community and
society at large.
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer
5. Promotion-Growth-Adoption of
CSR Internationally
• 1990s: Gained recognition in the way businesses were
conducted and adopted for better progress
• 1992: Rio Earth summit served as a key catalyst in developing
the modern CSR agenda and promoting the concept of
sustainable development
• 2002: World summit on Sustainable Development confirmed
CSR as a key item on the international agenda: bringing
together government, businesses and civil society were
recognised as key stepping stones to progress on Global
Sustainable Development.
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer
6. Benefits of CSR
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer
7. Benefits of CSR (Cont’d)
• CSR improves financial performance and reduces operating
costs.
– A project undertaken to separate waste in Tata Steel cost the company
Rs 100 Lakh (£120,000) in the first year. They had invested in 400
bins, but by selling the waste they earned Rs 20 Crore (£2,500,000).
• CSR Enhances Brand Image and Reputation
Below are two examples where Brand Image and Reputation have
benefited from CSR inspired advertisements:-
- Lifebuoy’s ‘Little Gandhi’ (an advertisement where a boy upset by
piles of garbage in his road, starts cleaning it all alone and slowly all
the neighbours join him)
- Surf’s ‘save two buckets of water' have benefited tremendously from
the use of public service communication.
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer
8. Benefits of CSR (Cont’d)
• CSR increases Customer Loyalty and Sales
– After unexpected floods hit Mumbai in July 2005 diseases like
diarrhoea were spreading rapidly. Hindustan Unilever Limited (HUL)
donated more than 1.50 lakh cakes of Lifebuoy soap through the
United Nation International Children's Emergency Fund (UNICEF)
and other NGOs and educated people about the importance of washing
hands with soap and clean water as a simple means of preventing
diseases.
• CSR Increases the Ability to Attract and Retain Employees
– A glaring example among them being the automobile major, Mahindra
& Mahindra (M&M). The company has introduced Employee Social
Options (ESOPs) through which a workforce of approximately 25,000
people employed at M&M could volunteer in any of a wide range of
CSR projects run by the company.
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief
Environmental Officer
9. Standards
• Lately, a standard that has gained wide acceptance is the Global
Reporting Initiative (GRI)
• According to the GRI Web site, the total number of companies
that have published GRI-based sustainability reports since 1999
add up to more than 2,800, out of which 39 are Indian.
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief
Environmental Officer
10. CSR concept from Indian Mythology
• In Indian Shastras, the ultimate aim of creating wealth is said
to be giving (donation) and enjoying.
• Whatever I dig from Earth, may that have quick growth again.
O Purifier, may we not injure your vitals or your heart.
Atharva Veda XII
• ‘May the Earth bring us closer to her through her middle-
portion, and the energy which resides throughout her body.
This land is my mother, I am the son of the Earth. May she
nourish, protect, and maintain us in an appropriate manner.
The Father is the sky who sustains us with rain.’ Prithivi
Sutka Verse 12 2.62
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer
11. Indian Model of CSR
• India has a number of companies with long traditions of
philanthropic and community programmes.
• It is based on the ‘Gandhian Model’
• Earlier mostly high profile companies like Public (such as
ONGC, Steel Authority of India Limited (SAIL)) and Private
companies (Tata, Birla, Godrej, Unilever) took up the
initiatives of CSR. Whereas the phenomena is changing and
the initiatives supported and taken up by most businesses
• Most of social work is representation of Entrepreneurship
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer
12. Initiative by Ministry of Corporate
Affairs
• In 2009 the Ministry came up the with publication titled
'Corporate Social responsibility Voluntary Guidelines 2009'
• The publication mentions 6 core elements to be taken into
consideration while designing CSR policy for any business:
1. Care for all Stakeholders
2. Ethical functioning
3. Respect for Workers' Rights and Welfare
4. Respect for Human Rights
5. Respect for Environment
6. Activities for Social and Inclusive Development
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer
13. CSR focus Action-Areas in India
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer
14. Famous leaders view on CSR
• In 1972, the Prime Minister of India, Mrs. Indira Gandhi emphasized, at
the UN Conference on Human Environment at Stockholm, that the removal
of poverty is an integral part of the goal of an environmental strategy for
the world
• “Corporate social responsibility must not be defined by tax planning
strategies alone. Rather, it should be defined within the framework of a
corporate philosophy which factors the needs of the community and the
regions in which a corporate entity functions. This is part of our cultural
heritage. Mahatma Gandhi called it trusteeship….I invite corporate India to
be a partner in making ours a more humane and just society… We need a
new Partnership for Inclusive Growth based on what I describe as a Ten
Point Social Charter...first, we need to have healthy respect for your
workers and invest in their welfare…” .
Dr. Manmohan Singh, Indian Prime Minister, in 2007
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer
15. Key People about CSR
• Mrs. Rajashree Birla, Chairperson of The Aditya Birla Centre for
Community Initiatives and Rural Development17 says:
“ CSR is an aspect of a company’s policy. The government has so many
schemes and has also allocated funds for them. If government ropes in
corporates besides the NGOs, the scheme would be very effective. With
corporates coming on scene, there would be a discipline and a definite
manner of working. It would also bring about a greater transparency”
• Mr. N. R. Naryana Murthy, Chairman and Chief Mentor, Infosys Ltd.
We must consider ourselves very fortunate to have bestowed this
extraordinary responsibility of handing over our planet intact to the next
generation at a very crucial stage when economic equity, economic
awareness and economic inclusivity is bringing about an unpredented
transformation is developing countries.
The Trend Is Blue – July 2012 Author: Venugopal Tatikunta - Chief Environmental Officer