Corporate Social Responsibility
-
Upload
harpreet-kaur -
Category
Documents
-
view
116 -
download
4
Transcript of Corporate Social Responsibility
1
Chatper-1
Introduction
INTRODUCTION
1.1 What is CSR1
The entirety of CSR can be discerned from the three words contained within its title
phrase: ‘corporate,’ ‘social,’ and ‘responsibility.’ Therefore, in broad terms, CSR covers
the responsibilities corporations (or other for-profit organizations) have to the societies
within which they are based and operate.
More specifically, CSR involves a business identifying its stakeholder groups and
incorporating their needs and values within the strategic and day-to-day decision-making
process.
Therefore, a business’ ‘society’ within which it operates, which defines the number of
stakeholders to which the organization has a ‘responsibility,’ may be broad or narrow
depending on the industry in which the firm operates and its perspective.
1.2 Other definitions of CSR:2
The notion of companies looking beyond profits to their role in society is generally
termed corporate social responsibility (CSR)….It refers to a company linking itself with
ethical values, transparency, employee relations, compliance with legal requirements and
overall respect for the communities in which they operate. It goes beyond the occasional
community service action, however, as CSR is a corporate philosophy that drives
strategic decision-making, partner selection, hiring practices and, ultimately, brand
development.
South China Morning Post, 2002
The social responsibility of business encompasses the economic, legal, ethical, and
discretionary expectations that society has of organizations at a given point in time.
Archie B. Carroll, 1979
CSR is about businesses and other organizations going beyond the legal obligations to
manage the impact they have on the environment and society. In particular, this could
1 http://www6.miami.edu/ethics/pdf_files/csr_guide.pdf2 http://www6.miami.edu/ethics/pdf_files/csr_guide.pdf
2
include how organizations interact with their employees, suppliers, customers and the
communities in which they operate, as well as the extent they attempt to protect the
environment.
The Institute of Directors, UK, 2002
CSR is a means of analyzing the inter-dependent relationships that exist between
businesses and economic systems, and the communities within which they are based.
CSR is a means of discussing the extent of any obligations a business has to its
immediate society; a way of proposing policy ideas on how those obligations can be met;
as well as a tool by which the benefits to a business for meeting those obligations can be
identified.
1.3 History of Corporate Social Responsibility and Sustainability3
The history of social and environmental concern about business is as old as trade and
business itself. Commercial logging operations for example, together with laws to protect
forests, can both be traced back almost 5,000 years. In Ancient Mesopotamia around
1700 BC, King Hammurabi introduced a code in which builders, innkeepers or farmers
were put to death if their negligence caused the deaths of others, or major inconvenience
to local citizens. In Ancient Rome senators grumbled about the failure of businesses to
contribute sufficient taxes to fund their military campaigns, while in 1622 disgruntled
shareholders in the Dutch East India Company started issuing pamphlets complaining
about management secrecy and “self enrichment”. With industrialisation, the impacts of
business on society and the environment assumed an entirely new dimension. The
“corporate paternalists” of the late nineteenth and early twentieth centuries used some of
their wealth to support philanthropic ventures. By the 1920s discussions about the social
responsibilities of business had evolved into what we can recognise as the beginnings of
the “modern” CSR movement. In 1929, the Dean of Harvard Business School, Wallace
B. Donham, commented within an address delivered at NorthWestern University:
'Business started long centuries before the dawn of history, but business as we now know
it is new - new in its broadening scope, new in its social significance. Business has not
3 http://www.brass.cf.ac.uk/uploads/History_L3.pdf
3
learned how to handle these changes, nor does it recognise the magnitude of its
responsibilities for the future of civilisation.'
Almost seventy five years later, these words ring just as true. Although today we face
some novel concerns about the role of business in society, from internet “spam” to
genetically modified foods, many of the issues under discussion are not very different to
those being raised in the 1920s. There is a danger that social and environmental concern
about business is an issue which, like sex, every new generation thinks that it has
discovered. The interactive timelines below provide details of the evolution of the history
of our environment, the history of business corporations, the evolution of the concept of
sustainable development and the history of business law and socially responsible
investment as forces seeking to shape the social and environmental impacts of business.
1.4 The Emerging CSR Model 4
1.5 The Role of Corporate Social Responsibility in Modern Business Development5
There are many factors within general business practices that are altering to ensure that
every person benefits from the continued functioning of the company. Previously many
businesses have subscribed to practices that may have had negative effects on their
stakeholders. This is now changing as the realisation sets in of the true importance of the
4 http://www.iitk.ac.in/infocell/announce/convention/papers/Industrial%20Economics,%20Environment,%20CSR-07-VijayLaxmi%20Iyengar.pdf5
http://ezinearticles.com/?The-Role-of-Corporate-Social-Responsibility-in-Modern-Business-Development&id=455618
4
different stakeholders in any particular business. There are many different manners in
which a company can implement corporate social responsibility measures for the benefit
of all concerned. The manner in which each different company implements the changes
will be dependant on what aspects of the company could be considered as having
produced negative effects.
Corporate Social responsibility can often be confused with corporate charity, but it is a
very different thing. Corporate charity can involve the donation of money and the
provision of opportunities to members of the community and stakeholders. This is very
different to the considerations that a company must abide by to ensure that their actions
fall with the acceptable corporate social responsibility guidelines that have been
established. These can include guidelines that relate to the environmental impact that a
particular action can have or they can relate to the impact that an action can have on the
local community. The guidelines are intended to ensure that any negative effects that an
action could possibly have are eliminated or reduced as far as possible.
The concept of corporate social responsibility is intended to provide each business with a
far greater ability to create sustainable development. This can help to provide ongoing
benefits for the business and its stakeholders, regardless of the size of the business. The
business can become more competitive once it begins to create and follow guidelines to
enforce the concept of corporate social responsibility within the company and its
surrounding community. The greater the sustainability of a business's developments, the
more successful it can become. The attraction of corporate social responsibility for many
businesses is that it can help to increase sustainability without creating negative effects.
The type of business that implements changes to come in line with accepted corporate
social responsibility guidelines will also determine what sort of changes will need to be
made. The size of the investment that will be required to ensure that the business
conforms to acceptable guidelines will also be affected by the type of business it is. The
resources that are expended for this purpose do need to be viewed as an investment rather
than an unnecessary expense since the positive results can more than repay the
investment.
The term corporate social responsibility may seem to be one of the current buzz words in
business, but the concept is one that has been formulated by many people over many
5
years. The concept is one that is seen as being important for the continued well-being of
the vast majority of companies and essential for the community that surrounds them. The
importance that is placed on business actions conforming to acceptable corporate social
responsibility standards can ensure that these guidelines are treated with the respect that
they merit.
1.6 Why is CSR important?6
CSR is an important business strategy because, wherever possible, consumers want to
buy products from companies they trust; suppliers want to form business partnerships
with companies they can rely on; employees want to work for companies they respect;
and NGOs, increasingly, want to work together with companies seeking feasible
solutions and innovations in areas of common concern. Satisfying each of these
stakeholder groups allows companies to maximize their commitment to another important
stakeholder group—their investors, who benefit most when the needs of these other
stakeholder groups are being met:
I honestly believe that the winning companies of this century will be those who prove
with their actions that they can be profitable and increase social value—companies that
both do well and do good….Increasingly, shareowners, customers, partners and
employees are going to vote with their feet—rewarding those companies that fuel social
change through business. This is simply the new reality of business—one that we should
and must embrace.
Carly FiorinaChairman and Chief Executive OfficerHewlett Packard Company
The businesses most likely to succeed in the globalizing world will be those best able to
combine the often conflicting interests of its multiple stakeholders, and incorporate a
wider spectrum of opinions and values within the decision-making process and objectives
of the organization Lifestyle brand firms, in particular, need to live the ideals they
convey to their consumers:
The 21st century will be the century of the social sector organization. The more economy,
6 http://www6.miami.edu/ethics/pdf_files/csr_guide.pdf
6
money, and information become global, the more community will matter.
Peter F. DruckerFounder of the Drucker Foundation (now the Leader to Leader Institute)
CSR is increasingly crucial to maintaining success in business—by providing a corporate
strategy around which the company can rally, but also by giving meaning and direction to
day-to-day operations.
1.7 The Growing Importance of Corporate Social Responsibility7
Corporate social responsibility (CSR) is the responsibility recognized by the companies
for acting in socially responsible manner. There is no single universally accepted
definition of corporate social responsibility
, it has generally come to mean business decision making linked to ethical values, legal
compliance, and respect for people, community, and environment. CSR accepts a
company to go further than required by law so as to
- treat employees fairly and with respect
- operate with integrity and in an ethical manner in all its business dealings with
customer, suppliers, lenders, and others
- respect human rights
- sustain the environment for future generations
- be a responsible neighbor in the community and a good ‘corporate citizen’.
Occupational welfare and corporate community welfare or corporate social responsibility
(CSR) are of growing importance to governments and service providers as they promise
to meet challenges of social problems within changing welfare environments. The
modern governments have increasingly resorted to corporate involvement in local
services and have also encouraged the expansion of occupational welfare. Despite its
growing importance CSR remains an under researched area even as business
organizations have faced new demands for increasing levels of occupational provision
and involvement in local partnerships
with public services.
7http://hubpages.com/hub/The-Growing-Importance-of-Corporate-Social-Responsibility
7
Over the last twenty years an increasingly large number of business houses have
responded positively to the banner of CSR. This has perhaps been partly due to their
aspiration to make their operations more ethical. While for the government, the role the
businesses can play in the development of society is quite crucial, the activist community
might like to take credit for the growing importance of CSR as a clear victory for their
efforts in pressurizing the activities of companies. To put the same in other words,
companies introduced CSR reports and programs as a response against damage inflicted
on their sale and reputation by attacks from activist groups who aided by 24 hour news
media in which corporate wrongdoing has been especially highlighted. While on the one
hand this makes a compelling news, it puts an ethical pressure on the companies to give
back at least a part to society in return what they have gained from it. It is therefore, no
longer important for companies to just make profit, the way this profit is generated is
deeply investigated by the activists. A company must not be seen violating ethics or law
in any of the areas like market behavior, trade policies, employment relations, sourcing of
raw materials
, human rights, environmental laws or the activists would put pressure on them through
media or the other channels. This analysis however fails to appreciate much of the social
contributions businesses have been making since long back. We have the example of
Joseph Rowntree and others and the way they developed their workforces. In 1980s, a
network of companies came together to establish Business in the Community (BITC).
Later, they launched Per Cent Club whose members donate 1 percent of pre-tax profits to
the community. BITC is a very widely acknowledged and influential force within
business and in CSR arena.
A set of indicators for the companies wanting to measure and report CSR has been
developed by the BITC. The Indicators that Count addresses four impact areas:
workplace, market place, environment and community. The indicators have been classed
into two groups. The core indicators consist of 27 basic indicators on which all the
companies are expected to report. The six advanced indicators are judged more difficult
to measure. The other group, made up of 17 specific indicators, may not be relevant to all
companies.
8
There are also specific projects for the measurement and reporting of particular aspects of
responsible business, as for example, Human Capital and Disability. Human capital
management and disability will have growing importance in CSR reporting. In the UK,
Accounting For People Taskforce has proposed a reporting framework for human capital
management (HCM). This taskforce, appointed by the UK government was represented
by Denise Kingsmill as chairman, and a number of other business leaders. According to
the Taskforce report, even as people typically account for up to 65 percent of a
company’s costs, there has been, however, little reporting on how companies develop
their people.
The companies may either include CSR report in their annual report and accounts or may
publish their separate corporate responsibility report which may be called a ‘social and
environmental report’ or a ‘sustainability report’. These reports indicate a company’s
commitment toward ethical behaviour and highlight their progress towards achieving
their strategic CSR objectives.
Increasingly more and more companies have begun to incorporate ethics and CSR in their
strategic planning and objectives. Many large companies have adopted formal
environmental policies with the objectives of creating a sustainable business and being
environment friendly. For instance, a company that uses large quantities of timber as raw
material might adopt a policy of re-forestation to replace the trees they have cut down.
The growing importance of CSR in context of market and public policies raises a key
issue, that of the legal recognition of CSR benchmarks (labels, certifications, ratings etc.)
and their progressive convergence across the market, that is, a broad consensus on scope
and contents of CSR benchmarks. Since November 2003, several initiatives have taken
place towards CSR convergence on benchmarks, including the EU CSR forum aimed at
facilitating the exchange of experience and good practices in order to establish common
guidelines for CSR tools.
It needs no argument to claim that CSR practices adopted by the companies pay them off
in managing their image. Since the beginning of the 1990s, companies are changing their
business practices under ethical frame work. Consider these examples: Nike and the other
similar footwear and apparel companies are monitoring working condition in their
supplier factories in developing nations; Ikea requires its rug suppliers in India to prohibit
9
the employment of children and provide their families with financial assistance to keep
children out of labor market; Starbucks and the other major coffee distributors and
retailers sell coffee bearing their ‘Fair Trade’ label; Home Depot and the other major
retailers of wood products no longer sells products
harvested from old growth or endangered forests; British Petroleum and several other
major firms in United States and Europe have significantly reduced its green house gas
emission; Shell and the other major extractive firms have adopted policies to address
human rights and environmental abuses associated with its investments in developing
countries; Timberland allows its employees to take one week off with pay each year to
work with local charities; PepsiCo along with more than a dozen oil companies and
consumer goods manufacturers have withdrawn investments from Burma because of
human rights concerns; Citibank along with other major financial institutions has
developed criteria for assessing the environmental impact of its lending decisions in
developing countries. While these are few cases of CSR, there are many more examples
that cannot be included here for lack of space.
CSR is becoming an increasingly important component in public affairs program. That’s
because of a number of reasons but the primary one is because of a need to maintain a
good reputation and trust among the stakeholders. The government and the political
entities will not want to maintain a relationship with or deal with organizations that do
not treat their stakeholders, especially employees well. The perceptions of poor CSR may
have their attendant consequences for those organizations that
- do not follow the ‘best practices’ of their competitors or others in their sector. If others
behave better than you then your public affairs activity may suffer;
- have a poor standing in the community;
- have been the target of activist groups
- are being targeted by the media on a regular basis because of their behavior.
It is to be remembered that media provides much of the information to political audiences
and regulators. The other sources of information apart from media on the activities of
organizations include
- friends and families
10
- other politicians/regulators
- the views of the electorate/their constituency in the case of MPs;
- the behavior of similar organizations (comparisons);
- activist organizations.
In the days to come CSR will go on to gain further importance for a number of reasons
including the competitive advantage to be garnered by the companies. Even now,
companies in Europe and North America are waking up to the strategic possibilities and
competitive advantages offered by being an environment friendly company. Customers
might be willing to pay more for environment friendliness and for healthy food.
Environment friendly and cheaper automobiles, for instance, have attracted public
attention. In other words, CSR activities can create value addition. Michael Porter has
suggested embedding CSR into corporate and business strategy to create competitive
advantage.
Corporate Social Responsibility is the latest buzz word to which increasingly more and
more companies are getting attentive. Moreover, the governments are keen that
companies take to CSR route as social welfare is becoming both public and private sector
responsibility. The companies too are realizing the hidden costs of failing to meet this
crucial social responsibility that is more ethically and morally binding than legal
necessity. It entails going beyond just the legal responsibilities. There are, however,
issues of labeling and standardization associated with CSR. Nonetheless, it is expected
that a level playing field will emerge as the number of stakeholders will also go on
increasing. Corporate Social Responsibility must be seen by the companies as a
responsibility not imposed by outside forces but guided by conscience and the best
practices of giving back to society, people, communities, and environment what they took
from them. What is even more important, companies have begun to realize the criticality
of CSR as value addition that might offer them competitive advantage in business.
1.8 Why is CSR relevant today?8
8 http://www6.miami.edu/ethics/pdf_files/csr_guide.pdf
11
CSR as a strategy is becoming increasingly important for businesses today because of
three identifiable trends:
Changing social expectations
Consumers and society in general expect more from the companies whose products they
buy. This sense has increased in the light of recent corporate scandals, which reduced
public trust of corporations, and reduced public confidence in the ability of regulatory
bodies and organizations to control corporate excess.
Increasing affluence
This is true within developed nations, but also in comparison to developing nations.
Affluent consumers can afford to pick and choose the products they buy. A society in
need of work and inward investment is less likely to enforce strict regulations and
penalize organizations that might take their business and money elsewhere.
Globalization
The growing influence of the media sees any ‘mistakes’ by companies brought
immediately to the attention of the public. In addition, the Internet fuels communication
among like-minded groups and consumers—empowering them to spread their message,
while giving them the means to co-ordinate collective action (i.e. a product boycott).
These three trends combine with the growing importance of brands and brand value to
corporate success (particularly lifestyle brands) to produce a shift in the relationship
between corporation and consumer, in particular, and between corporation and all
stakeholder groups, in general. The result of this mix is that consumers today are better
informed and feel more empowered to put their beliefs into action. From the corporate
point of view, the market parameters within which companies must operate are
increasingly being shaped by bottom-up, grassroots campaigns. NGOs and consumer
activists are feeding, and often driving, this changing relationship between consumer and
company.
12
1.9 Corporate Social Responsibility in India9
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations, along with their shareholder-wealth maximisation goal.
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education, health, livelihood creation, skill development,
and empowerment of weaker sections of the society. Notable efforts have come from the
Tata Group, Infosys, Bharti Enterprises, ITC Welcome group, Indian Oil Corporation
among others.
The 2010 list of Forbes Asia’s ‘48 Heroes of Philanthropy’ contains four Indians. The
2009 list also featured four Indians. India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms. India was ranked fourth in the list, according to social enterprise CSR
Asia's Asian Sustainability Ranking (ASR), released in October 2009.
According to a study undertaken by an industry body in June 2009, which studied the
CSR activities of 300 corporate houses, corporate India has spread its CSR activities
across 20 states and Union territories, with Maharashtra gaining the most from them.
About 36 per cent of the CSR activities are concentrated in the state, followed by about
12 per cent in Gujarat, 10 per cent in Delhi and 9 per cent in Tamil Nadu.
The companies have on an aggregate, identified 26 different themes for their CSR
initiatives. Of these 26 schemes, community welfare tops the list, followed by education,
the environment, health, as well as rural development.
Further, according to a study by financial paper, The Economic Times, donations by
listed companies grew 8 per cent during the fiscal ended March 2009. The study of
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09, up from US$ 156 million in the year-ago period. As many as 108 companies
donated over US$ 216,199, up 20 per cent over the previous year.
Although corporate India is involved in CSR activities, the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further. According to Minister for Corporate Affairs, Mr Salman Khurshid, one of
9 http://www.ibef.org/artdispview.aspx?art_id=26104&cat_id=926&in=84
13
the ways to attract companies towards CSR work is to develop a system of CSR credits,
similar to the system of carbon credits which are given to companies for green initiatives.
Moreover, in 2009, the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility.
Besides the private sector, the government is also ensuring that the public sector
companies participate actively in CSR initiatives. The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the company's net
profits.
As per the guidelines, companies with net profit of less than US$ 22.5 million will
earmark 3-5 per cent of profit for CSR, companies with net profit of between US$ 22.5
million - US$ 112.5 million, will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 112.5 million will spend 0.5-2 per cent of net profits for CSR.
1.10 CSR Initiatives and Green Measures
India Inc has joined hands to fine-tune all its activities falling under CSR. For this, it has
set up a global platform to showcase all the work done by Indian firms. Confederation of
Indian Industry (CII) and the TVS Group collaborated to form the CII-TVS Centre of
Excellence for Responsive Corporate Citizenship in 2007. It provides consultancy
services and technical assistance on social development and CSR.
According to a National Geographic survey which studied 17,000 consumers in 17
countries, Indians are the most eco-friendly consumers in the world. India topped the
Consumer Greendex, where consumers were asked about energy use and conservation,
transportation choices, food sources, the relative use of green products versus traditional
products, attitudes towards the environment and sustainability and knowledge of
environmental issues.
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, according to a Nielsen survey released in May 2009.
14
As part of its Corporate Service Corps (CSC) programme, IBM has 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.
The financial services sector is going green in a steady manner. With an eye on
preserving energy, companies have started easing the carbon footprint in their
offices. The year 2009 witnessed initiatives including application of renewable
energy technologies, moving to paperless operations and recognition of
environmental standards. Efforts by companies such as HSBC India, Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts.
State-owned Navratna company, Coal India Ltd (CIL) will invest US$ 67.5
million in 2010-11 on social and environmental causes.
Public sector aluminium company NALCO has contributed US$ 3.23 million for
development work in Orissa's Koraput district as part of its Corporate Social
Responsibility (CSR).
1.11 Corporate Social Responsibility in India – Putting Social-Economic
Development on a Fast Track10
Four years ago, Reliance Industries Ltd. launched a countrywide initiative known as
“Project Drishti”, to restore the eye-sights of visually challenged Indians from the
economically weaker sections of the society. This project, started by one of India’s
corporate giants has brightened up the lives of over 5000 people so far.
Corporate Social Responsibility (CSR) defined as “the ethical behavior of a company
towards the society,” manifests itself in the form of such noble programs initiated by for-
profit organizations. CSR has become increasingly prominent in the Indian corporate
scenario because organizations have realized that besides growing their businesses it is
also vital to build trustworthy and sustainable relationships with the community at large.
This is one of the key drivers of CSR programs.
10 http://www.chillibreeze.com/articles_various/CSR-in-India.asp
15
Another reason fuelling this rapid adoption of CSR is the state of the Indian society.
Though India is one of the fastest growing economies, socio-economic problems like
poverty, illiteracy, lack of healthcare etc. are still ubiquitous and the government has
limited resources to tackle these challenges. This scenario has opened up several areas for
businesses to contribute towards social development.
CSR is not a new concept in India. Corporates like the Tata Group, the Aditya Birla
Group, and Indian Oil Corporation, to name a few, have been involved in serving the
community ever since their inception. Many other organizations have been doing their
part for the society through donations and charity events.
Today, CSR in India has gone beyond merely charity and donations, and is approached in
a more organized fashion. It has become an integral part of the corporate strategy.
Companies have CSR teams that devise specific policies, strategies and goals for their
CSR programs and set aside budgets to support them.
These programs, in many cases, are based on a clearly defined social philosophy or are
closely aligned with the companies’ business expertise. Employees become the backbone
of these initiatives and volunteer their time and contribute their skills, to implement them.
CSR Programs could range from overall development of a community to supporting
specific causes like education, environment, healthcare etc.
For example, organizations like Bharath Petroleum Corporation Limited, Maruti Suzuki
India Limited, and Hindustan Unilever Limited, adopt villages where they focus on
holistic development. They provide better medical and sanitation facilities, build schools
and houses, and help the villagers become self-reliant by teaching them vocational and
business skills.
On the other hand GlaxoSmithKline Pharmaceuticals’ CSR programs primarily focus on
health and healthy living. They work in tribal villages where they provide medical check-
up and treatment, health camps and health awareness programs. They also provide
money, medicines and equipment to non-profit organizations that work towards
improving health and education in under-served communities.
Many CSR initiatives are executed by corporates in partnership with Non-governmental
organizations (NGOs) who are well versed in working with the local communities and
are experts in tackling specific social problems.
16
For example, SAP India in partnership with Hope Foundation, an NGO that works for the
betterment of the poor and the needy throughout India, has been working on short and
long-term rebuilding initiatives for the tsunami victims. Together, they also started The
SAP Labs Center of HOPE in Bangalore, a home for street children, where they provide
food, clothing, shelter, medical care and education.
CSR has come a long way in India. From responsive activities to sustainable initiatives,
corporates have clearly exhibited their ability to make a significant difference in the
society and improve the overall quality of life. In the current social situation in India, it is
difficult for one single entity to bring about change, as the scale is enormous. Corporates
have the expertise, strategic thinking, manpower and money to facilitate extensive social
change. Effective partnerships between corporates, NGOs and the government will place
India’s social development on a faster track.
17
18
Chatper-2
Case Studies and Analysis
CASE STUDIES AND ANALYSIS
2.1 ITC11
Envisioning a larger societal purpose has always been a hallmark of ITC. The company
sees no conflict between the twin goals of shareholder value enhancement and societal
value creation. The challenge lies in fashioning a corporate strategy that enables
realisation of these goals in a mutually reinforcing and synergistic manner.
As a corporate citizen with enduring relationships in rural India, ITC has a history of
collaboration with communities and government institutions to enhance farm productivity
and the rural resource base. ITC’s commitments in agricultural R&D and knowledge
sharing have spanned vital aspects of competitiveness – efficient farm practices, soil and
water management.
ITC is committed to a national agenda of raising agricultural productivity and making the
rural economy more socially inclusive. ITC believes that the urgency and scale of these
tasks make market linked solutions and innovations more effective and sustainable than
capital intensive approaches.
In 2000, harnessing the empowering force of information technology and its scalabilty,
ITC launched e-Choupal – a knowledge portal providing farmers with a range of
information and services. Designed to enable them to bargain collectively and enhance
their transactive power, e-Choupal became the much needed and easily adoptable tool
farmers had been waiting for. Today e-Choupal is a vibrant and rapidly growing zone of
business and interaction for over 4 million farmers.
ITC moved rapidly to apply the economic momentum of e-Choupal to solving urgent
social and environmental tasks. ITC launched Mission Sunehra Kal, a rural capacity
building programme fostering local initiatives to develop water and forest resources, open
up new non-farm livelihoods, empower women economically and expand primary
education.
The Mission now embraces a community of thousands of villages that are influential
nuclei of change in rural localities spread over 11 States. A clearly focused self-help
11 http://www.itcportal.com/sustainability/lets-put-india-first/home.aspx
19
movement has gained ground in village after village in these areas, with farmers co-
operating to create much needed economic, environmental and social assets out of their
own resources.
By linking knowledge and technology transfer to the creation of economic and social
capacity, ITC has brought a new dynamic to rural development.
ITC has consciously chosen the path less travelled. A path that has led it to create
sustainable livelihoods for 5 million people. For ITC this is an expression of a
commitment beyond the market. Of a conviction that country must come before
corporation. Of a true pride in being Citizen First.
Milestones
e - Choupal4 million farmers empowered,
6,500 e - Choupals installed
Social & Farm
Forestry
107,521 hectares greened,
generating 48.38 million person - days of
employment
Watershed
Development
54,615 hectares
brought under soil and moisture conservation
Women's
Empowerment
14,278 women members
1035 self - help groups
Livestock
Development
164 Cattle Development Centres
2300 villages covered annually
Primary Education228,872 children covered
through 2380 Supplementary Learning Centres
20
E-Choupal12
Before ITC introduced us to e-Choupal, we were
restricted to selling our produce in the local mandi. We
had to go through middlemen and prices were low. ITC
trained me to manage the Internet kiosk and I became
the e-Choupal Sanchalak in my village. Today we are a
community of e-farmers with access to daily prices of a
variety of crops in India and abroad – this helps us to
get the best price. We can also find out about many
other important things – weather forecasts, the latest
farming techniques, crop insurance, etc. e-Choupal has
not only changed the quality of our lives, but our entire
outlook.
e-Choupal Now
States covered 10
Villages covered 40,000
No. of e-Choupals 6,500
Farmers e-empowered 4 million
A powerful illustration of corporate strategy linking business purpose to larger societal
purpose, e-Choupal leverages the Internet to empower small and marginal farmers – who
constitute a majority of the 75% of the population below the poverty line.
12 http://www.itcportal.com/sustainability/lets-put-india-first/echoupal.aspx
21
By providing them with farming know-how and services, timely and relevant weather
information, transparent price discovery and access to wider markets, e-Choupal enabled
economic capacity to proliferate at the base of the rural economy.
Today 4 million farmers use e-Choupal to advantage – bargaining as virtual buyers’ co-
operatives, adopting best practices, matching up to food safety norms. Being linked to
futures markets is helping small farmers to better manage risk. e-Choupal has been
specially cited in the Government of India’s Economic Survey of 2006-07, for its
transformational impact on rural lives.
22
Social & Farm Forestry13
Social & Farm Forestry Now
Area developed ( hectares ) 1,07,521
Saplings planted ( nos.) 451 million
Employment generated ( person-days ) 48.38 million
ITC has helped to bring over 16,400 hectares of wasteland under social forestry
benefiting 19,376 poor households in 480 villages.
ITC’s social forestry programme simultaneously addresses the livelihood problems of
marginal farmers and the ecological imperative of regenerating biomass and nurturing
depleted soils.
In the moisture-stressed districts of Guntur, Nellore, Khammam, Nalgonda and Prakasam
in Andhra Pradesh, marginal wasteland owners, who mostly make a living as farm
labourers, are often out of work for long stretches.
In an innovative move, linking these farmers’ need for income to the wood fibre needs of
its paperboards business, ITC has enabled them to convert their wastelands to pulpwood
plantations – a commercially viable land use alternative that can end their
marginalisation.
Watershed Development14
Watershed Development Now
Water harvesting structures 2,884
Water user groups 1,153
Area under soil & moisture conservation (hectares)
54,615
13 http://www.itcportal.com/sustainability/lets-put-india-first/forestry.aspx
14http://www.itcportal.com/sustainability/lets-put-india-first/watershed-development.aspx
23
Employment generation (person-days) 1,491,030
ITC’s watershed initiatives have led to an improvement in soil and moisture regimes –
there is more land under irrigation, water tables have risen and farmers can harvest more
than one crop, making it possible to live off the land round the year.
Agricultural Development15
Agricultural Development Now
Group irrigation wells 409
Sprinkler units 477
Demonstration plots 4,075
Vermicompost & NADEP units 13,506
ITC offers facilitation to farmers to form agri-business societies, pool knowledge and
resources, improve productivity and quality, and reach out beyond local markets to sell at
better margins.
Women’s Empowerment16
Women’s Empowerment Now
Micro-credit groups 1,035
Women entrepreneurs 29,695
The confidence and skills generated among women by forming credit groups and
managing businesses become assets to their communities.
15 http://www.itcportal.com/sustainability/lets-put-india-first/agricultural-development.aspx
16 http://www.itcportal.com/sustainability/lets-put-india-first/womens-empowerment.aspx
24
Livestock Development17
Livestock Development Now
Animal husbandry services 441,297
Beneficiary farmers 126,085
Villages covered (annually) 2,300
The milk marketing co-operatives represent exemplary change in rural enterprise, away
from dependence on agriculture and local markets.
Primary Education18
Primary Education Now
Schools assisted 577
Students covered 228,872
Supplementary Learning Centres 2,380
School going becomes an empowering process for the child and the community. The
awareness of entitlements like education and health grows, along with a sense of the
community’s responsibility.
17 http://www.itcportal.com/sustainability/lets-put-india-first/livestock-development.aspx
18 http://www.itcportal.com/sustainability/lets-put-india-first/primary-education.aspx
25
2.2 ONGC CSR POLICY & INITIATIVES19
ONGC Group companies, as responsible Corporate Citizens shall promote
Education
Healthcare
Entrepreneurship in the Community
Support Water Management and Disaster Relief
Stakeholder Participation model
CSR activities to be undertaken based on the “Project” concept.
Identification of stakeholders (society) and intended beneficiaries.
Impact measurement
Benefit / impact for ONGC -leading to increased social bottom line and thus to
Corporate Social Performance
12 identified focus areas:
Education including vocational courses
Health Care
Entrepreneurship (self help & livelihood generation) schemes
Infrastructure support roads, bridges, schools, hospitals in around our operational
areas.
Environment protection, ecological conservation, promotion.
Protection of heritage sites, UNESCO heritage monuments etc.
Promotion of artisans, craftsman, musicians, artists etc. for preservation of
heritage, art & culture.
19 http://www.globalcompactasiapacific.org/india/files/documents/ONGC%20CSR%20Policy%20&%20Initiatives.pdf
26
Women’s empowerment, girl child development, gender sensitive projects.
27
CSR Expenditure
Key CSR initiatives so far :
Chaupal: Revival of primary health centre in Bayanpurvillage, Sonipat,
Haryana utilizing voluntary services of doctors
28
Establishment of MRI / CT scan centers in government hospital-GT Hospital,
Mumbai.
Public Libraries in various towns of Assam.
Brick making machine at Karaikalto facilitate poor villagers to make their own
houses
Him JyotiFoundation, Dehradun for development of infrastructure and support
for 50 under privileged girls every year for eight years
SundarPukhuriMilk Co-operative Society with State Veterinary Department
for supplying milk to consumers at Nazira & Sivasagar, Assam.
Bunkar Vikas Sansthan, Chanderi, MP to restore the dying heritage of
Chanderi Sarees and dress material.
Entrepreneurship
Creation of self help groups
weaving
sewing
handicrafts
dairy
goatrearing
piggery
poultry
Co-operatives for
rickshaws
fishery
Employment to handicapped
29
Rickshaw Bank project
Transfers the ownership of the rickshaws to the under privileged people.
In association with Centre for Rural Development
Successful in Guwahati and launched at Sivasagar & Nazira
2.3 CSR IN TATA MOTORS
CSR in Tata Motors is characterized by the capital building of our stakeholders. While
the individual capacity of our beneficiaries is increased through various activities in the
area of human capital, the welfare of the society and their economic enhancement are
taken care through social and economic capital enhancement respectively. We encourage
the adoption of green practices among the communities we work with by raising
awareness and by providing them with necessary facilities and infrastructure the same.
30
2.4 TATA CONSULTANCY SERVICES LTD.20
TCS Maitree
Maitree was started with an objective of bringing TCS associates and their families closer
and making them feel a part of the TCS extended family. Soon after, with a view to carry
on the TATA tradition of enabling the community, the scope of Maitree was enhanced to
include socially relevant activities and endeavors.
20 http://www.karmayog.org/csr501to1000/csr501to1000_21977.htm
31
Maitree and the TCS Community:
Even while at work, you're never away from life. TCS-Maitree was established with an
intention to strengthen the bond between TCS employees and their families, as well as
provide a platform to encourage hidden aspirations and talents. It lends a deeper and
broader dimension to the work culture at TCS. Over the years, Maitree has become a part
of every TCS employee's life. From cracking quizzes to conquering tall peaks, from
shaking a leg to bending it like Beckham, employees have reveled in the excitement and
fun of all Maitree events. And that's not all. Workshops on theatre, yoga, origami, flower
arrangement, chocolate making, and a host of others have allowed the employees to learn
and know about things they always wanted to. All in all, Maitree provides everyone at
TCS the opportunity to establish relationships that extend beyond work and thereby, help
build bonds that makes work so much more fun.
Maitree - Even beyond the TCS Community:
In addition to working towards bringing our associates and their families closer, Maitree
also strives to enable the development of the society. Our approach to social initiatives
entails being pro-actively involved and working at the root level. Some of the projects we
have undertaken include working with the differently-abled, aiding under-privileged
children across various schools in Mumbai, and helping rural community in Vazapur,
among others. Many programs initiated by Maitree, like employment opportunities for
the differently-abled, HIV/AIDS sensitization, peer education, Green Audits to check the
excess consumption of energy resources have now been accepted as best practices by the
organization.
Advanced Computer Training Centre for visually impaired
TCS pioneered an Advanced Computer Training Center (the first of its kind in India) for
the visually impaired. This center, launched at the MN Banajee Industrial Home for the
Blind at Jogeshwari, Mumbai, offers courses that are in sync with industry requirements,
providing the visually-impaired with life-affirming employment opportunities.
32
TCS-Maitree has pro-actively worked towards providing an inclusive environment for the
differently-abled. With the belief that people with disabilities offer incredible reserves of
untapped potential and an alternative talent pool, TCS-Maitree has recruited more than 30
differently-abled people in various branches of TCS. The following are some of the roles
in which the visually impaired persons are working in TCS:
Infrastructure Services Management
BPO processes
Learning & Development coordinator
Human Resource Manager
Global Helpdesk
Accessibility testing
Rural Development Initiative (at Panvel)
Wazapur (Raigad district of Maharashtra) is a village just off the Mumbai-Pune highway,
near Panvel. In spite of being so close to the city, the village is devoid of even the most
basic infrastructure and amenities. TCS-Maitree has been working at the ground level
over the last three years to bring about development in the village. A sustainable model
has been built to improve education, healthcare, and the environment in the area.
What started off as a children's education program has today grown into a larger
movement with developmental activities in the areas of water supply, illiteracy, and
women empowerment in addition to the focal point of education. Apart from setting up a
primary and a secondary school, some other highlights of the education initiative are:
Mid-day meal scheme for Balwadi kids
Computer literacy program
A state-of-the-art science lab
Taking up the cause of women empowerment, TCS-Maitree launched the WEP (Women
Empowerment Program) where the women of the village were taught basic arithmetic
and created awareness in health and hygiene. More than 25 women from three villages in
the area have been trained in embroidery, stitching, and other textile craftwork over the
last one year with help from the Women's India Trust. A new Gram Vikas Abhiyaan
Kendra was recently inaugurated to facilitate income generation for the women.
33
TCS-Maitree has also made strides in the area of health, conducting HIV/ AIDS
sensitization sessions as well as health check-up camps for the villagers and school
children.
Thalassaemia Drive
TCS-Maitree is organizing lectures, poster displays, and voluntary blood donation drives
across TCS offices to support those who suffer from Thalassaemia. In a partnership with
Red Cross, TCS embarks on periodic blood-donation drives towards the treatment of
Thalassaemia.
HIV AIDS awareness program
TCS-Maitree initiated TCS’ first steps in the area of HIV/AIDS Sensitization and
Awareness a few years ago. The focus of the initiative is to treat HIV as a social issue, as
against treating it as a solely medical prerogative. Associates across the TCS are
participating in TCS-Maitree's aim to spread awareness and sensitize people about
HIV/AIDS.
The highlights of this initiative are:
Commemorating World AIDS Day
Red Ribbon distribution at all offices
Online Quiz for creating more awareness s
Removing myths and misconceptions through articles
Peer Educator Program - Communicating with associates in their own language, through
their 'peers'
mKrishi is an agro advisory system developed by TCS. It connects
farmers to their own eco-systems through specially developed applications on mobile
phones. The application can support interactive and multimedia content to provide
farmers the required information. In mKrishi, data from a farmer reaches the central
server through a cell phone. Experts access this information on their PC and reply with
34
their advice in the native language using Roman script. mKrishi’s features include:
weather forecasts, pesticide and fertiliser advice, and market information.
2.5 TITAN INDUSTRIES LTD.21
CSR activities:
Social Initiatives
Corporate Social Responsibility
We believe that Corporate Social Responsibility is not an externalised activity nor is it
only philanthropy. It is an internal process reflecting the soul of the Company.
Titan's Community Development Policy - Experiencing the joy of sharing.
"Titan's initiatives will improve the quality of life of the communities in which it
operates. Titan will build partnerships for the social development of the communities in
which it operates. Titan will focus on initiatives, which can be sustained by the
communities in which it operates".
Titan has holistically integrated the CSR process and has programs covering the
following:
Employing the physically challenged.
Women's empowerment. Partnering with self help groups amongst rural women
for outsourcing components, bracelets - the Meadow Project with Myrada.
The Titan school and the Titan Foundation for Education - a primary school
currently enrolling 300 students.
The Titan Scholarship - meant for students in Dharmapuri and Krishnagiri based
on the criteria of academic performance and socio-economic background.
The Titan Township -building a sustainable community in Hosur providing a
home to 1300 residents.
Community Development Forums - Eye care camps, Eye donation initiatives -
Aids Awareness- Programs for the differently abled - No tobacco drive, Children's
programs.
21 http://www.karmayog.org/csr501to1000/csr501to1000_22167.htm
35
Volunteering in Hosur, Corporate Office as wells as Regions.
Partnering with NGOs like CRY, Concern India and Ashraya.
Improving the quality of life for children - the TATA -TCCI -TITAN Bal Bhavan
Children's park project at Cubbon Park , Bangalore .
The community appreciated and recognized us by awarding us:
The Government of Tamil Nadu's award for being the "Largest Employer of the
handicapped". This award was conferred on us in the years 1993 and 1996.
The Mother Teresa award for the best Corporate Citizen in 1998.
The Helen Keller Award in 1999.
FICCI-SEDF award in 2001-02 for Social Responsibility.
The Rotary Club of Bangalore Award for the Corporate Citizenship.
The Mother Teresa, Helen Keller and the Rotary Awards for Corporate
Citizenship.
The PHDCII Award for Good Corporate Citizenship.
Titan and the Environment - ISO 14001 but going beyond Compliance
Titan's products and services have very little or marginal impact on the environment.
Titan adheres to all related legal and statutory requirements. The Company is also
extremely conscious of environmental issues and has been recognized in this regard by
the Hosur Industries Association. The Company's environment control results are
continuously monitored with respect to both TNPCB and International Finance
Corporation (World Bank) norms. The Company has been certified under ISO 14001
EMS standards.
Initiatives taken:
Minimizing the use of cyanides in plating by adopting non-toxic PVD technology.
Eliminating the use of ozone-depleting substances ahead of the Montreal Protocol
deadline.
Minimizing the use of plastic packaging with eco-friendly materials.
36
Adopting Vermi-composting for the conversion of garden / vegetable waste in to
useful manure.
Piloting the study of conversion of industrial waste into useful civil materials.
Promotion of rainwater harvesting at manufacturing locations.
Waste water treatment with efficient effluent treatment and use for industrial
cleaning and gardening.
Recycling brass scraps.
Rainwater harvesting in 3 manufacturing locations.
Results:
Energy consumption per watch reduced by 41%.
Cumulative Energy savings - 26 Lac kwh.
Water consumption per watch down by 47%.
Daily plant water consumption reduced by 28%.
Brass scrap recycling back to process - saving during 2002 - 03 Rs.62 Lacs
Adhering to all Statutory norms. As a culmination of all these initiatives, we
received The Golden Peacock- Environment Management Award 2003 - at the 5th
World Congress on Environment Management.
Titan Industries is a signatory to the Global Compact and is committed to the
implementation of the 10 principles of the Global Compact. Titan Industries is also
guided by the principles of the Global Reporting Initiative.
There is a process of continuous dialogue and feedback with employees, respective
departments and business partners, to ensure adherence. E.g. Labour standards are
complied with as per the laws of the land and there is no evidence of any employment of
child labour.
The management of Business Ethics is facilitated by compliance of the Tata Code of
Conduct.
The Company's credo towards CSR:
37
Social Responsibility-an initiative today, a mandate tomorrow. Bringing a smile to
the community creates customer affection ensuring sustainability.
Corporate Sustainability:
Titan Industries has a clearly defined policy on Corporate Sustainability. The approach of
its policy continues to be at three levels, the first one being at the Group level where it
works closely with the Tata Council for Community Initiatives, the nodal apex body for
facilitating Tata Group initiatives.
At the Company level, key initiatives have been:
Engaged 330 rural women through self help group and provided them
opportunities for various outsourced activities in manufacturing/assembling of
Watches, Jewellery and Precision Engineered products.
Over 600 needy students in the disciplines of Vocational, Medicine & Engineering
have benefited from Titan Scholarship program.
The Jewellery Division started the concept of Karigar Park by providing
equipment, material and training to Karigars so that they can work directly under
the supervision of the Division and earn money on job-work without any
exploitation. At present there are more than 400 Karigars working on six Parks.
The Company has established a Basic Training Centre to impart technical skills to
youth from lower economic background to make them employable. Currently 96
students are studying in the centre.
At the individual level, Titan volunteers comprising the Community Development Forum
have taken up comprehensive vision care program in and around Hosur with a leading
Super Specialty Eye Hospital in Bangalore . Eye camps are being conducted and an eye
care clinic has been opened in Hosur to cater to the needy and poor.
• Other programs include programs for skill development for rural women, infrastructure
improvement in villages and creating awareness on hygiene and clean environment.
The Company is proactive in its approach towards the Environment and is compliant
with statutory and regulatory requirements. The Watch, Jewellery as well as the
38
Precision Engineering Divisions are certified under ISO 14000:2004 Environment
Management System Standards and under ISO 9001:2000, Quality Management Systems
Standards.
Titan Industries is a signatory to the 10 principles of the Global Compact with its
‘Communications on Progress’ (CoP) duly posted on the UN Global Compact website.
Awards and Recognitions:
Titan Industries Ltd was adjudged one of the World’s 50 “Domestic Dynamos” by
Boston Consulting Group in a survey of the top 50 fastest growing domestic companies
countering multi national majors in their respective domestic markets through innovative
products and marketing thus continuing to grow at an accelerated pace despite
international competition.
The Company also continued to be recognised for its product and retail brands and its
innovations as under:
Won the Top Retailer 2007 Asia Pacifi c - Bronze Award
Won Marico Erehwon Innovations for India Award for the slimmest watch - Titan
Edge
Titan the brand won Images Fashion Award for the ‘Most Admired Brand for the
year 2007-08 for the 7th consecutive year’.
Titan Industries Ltd won the Images Fashion Award for the ‘Retailer of the Year’.
Titan Brand was ranked fi rst amongst the consumer durables category in a survey
by Economic Times.
39
2.6 ADITYA BIRLA22
Our vision
"To actively contribute to the social and economic development of the communities in
which we operate. In so doing, build a better, sustainable way of life for the weaker
sections of society and raise the country's human development index."
— Mrs. Rajashree Birla, Chairperson,
The Aditya Birla Centre for Community Initiatives and Rural Development
Making a difference
Before Corporate Social Responsibility found a place in corporate lexicon, it was already
textured into our Group's value systems. As early as the 1940s, our founding father Shri
G.D Birla espoused the trusteeship concept of management. Simply stated, this entails
that the wealth that one generates and holds is to be held as in a trust for our multiple
stakeholders. With regard to CSR, this means investing part of our profits beyond
business, for the larger good of society.
While carrying forward this philosophy, his grandson, Aditya Birla weaved in the
concept of 'sustainable livelihood', which transcended cheque book philanthropy. In his
view, it was unwise to keep on giving endlessly. Instead, he felt that channelising
resources to ensure that people have the wherewithal to make both ends meet would be
more productive. He would say, "Give a hungry man fish for a day, he will eat it and the
next day, he would be hungry again. Instead if you taught him how to fish, he would be
able to feed himself and his family for a lifetime."
Taking these practices forward, our chairman Mr. Kumar Mangalam Birla
institutionalised the concept of triple bottom line accountability represented by economic
success, environmental responsibility and social commitment. In a holistic way thus, the
interests of all the stakeholders have been textured into our Group's fabric.
22 http://www.adityabirla.com/social_projects/overview.htm
40
The footprint of our social work today spans 2,500 villages in India, reaching out to 6
million people annually. Our community work is a way of telling the people among
whom we operate that We Care.
Our strategy
Our projects are carried out under the aegis of the "Aditya Birla Centre for Community
Initiatives and Rural Development", led by Mrs. Rajashree Birla. The Centre provides the
strategic direction, and the thrust areas for our work ensuring performance management
as well.
Our focus is on the all-round development of the communities around our plants located
mostly in distant rural areas and tribal belts. All our Group companies —- Grasim,
Hindalco, Aditya Birla Nuvo and UltraTech have Rural Development Cells which are the
implementation bodies.
Projects are planned after a participatory need assessment of the communities around the
plants. Each project has a one-year and a three-year rolling plan, with milestones and
measurable targets. The objective is to phase out our presence over a period of time and
hand over the reins of further development to the people. This also enables us to widen
our reach. Along with internal performance assessment mechanisms, our projects are
audited by reputed external agencies, who measure it on qualitative and quantitative
parameters, helping us gauge the effectiveness and providing excellent inputs.
Our partners in development are government bodies, district authorities, village
panchayats and the end beneficiaries — the villagers. The Government has, in their 5-
year plans, special funds earmarked for human development and we recourse to many of
these. At the same time, we network and collaborate with like-minded bilateral and
unilateral agencies to share ideas, draw from each other's experiences, and ensure that
efforts are not duplicated. At another level, this provides a platform for advocacy. Some
of the agencies we have collaborated with are UNFPA, SIFSA, CARE India, Habitat for
Humanity International, Unicef and the World Bank.
41
Our focus areas
Our rural development activities span five key areas and our single-minded goal here is to
help build model villages that can stand on their own feet. Our focus areas are healthcare,
education, sustainable livelihood, infrastructure and espousing social causes.
Education
Balwadis (pre-school)
Adult education
Non-formal education
Continuing education
Scholarships for girls, merit and technical education
Health and family welfare
Mobile clinics - doctors visit once a week
Medical camps - general and issue-based
Health training and awareness
Sanitation - toilets, training, smokeless chullahs, biogas
Safe drinking water
Mother and child health
Reproductive health
Awareness building
Corporate Social Responsibility Policy23
For us in the Aditya Birla Group, reaching out to underserved communities is part of our
DNA. We believe in the trusteeship concept. This entails transcending business interests
and grappling with the “quality of life” challenges that underserved communities face,
and working towards making a meaningful difference to them.
Our vision is – “to actively contribute to the social and economic development of the
communities in which we operate. In so doing build a better, sustainable way of life for
23 http://www.adityabirla.com/social_projects/downloads/csr_policy.pdf
42
the weaker sections of society and raise the country’s human development index”. (Mrs.
Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural
Development).
Implementation process: Identification of projects
All projects are identified in a participatory manner, in consultation with the community,
literally sitting with them and gauging their basic needs. We recourse to the participatory
rural appraisal mapping process. Subsequently, based on a consensus and in discussion
with the village panchayats, and other influentials, projects are prioritised.
Arising from this the focus areas that have emerged are Education, Health care,
Sustainable livelihood, Infrastructure development, and espousing social causes. All of
our community projects are carried out under the aegis of The Aditya Birla Centre for
Community Initiatives and Rural Development.
In Education, our endeavour is to spark the desire for learning and knowledge at every
stage through • Formal schools • Balwadis for elementary education • Quality primary
education • Aditya Bal Vidya Mandirs • Girl child education • Adult education
programmes.
In Health care our goal is to render quality health care facilities to people living in the
villages and elsewhere through our Hospitals • Primary health care centres • Mother and
Child care projects • Immunisation programmes with a thrust on polio eradication •
Health care for visually impaired, and physically challenged • Preventive health through
awareness programmes.
In Sustainable Livelihood our programmes aim at providing livelihood in a locally
appropriate and environmentally sustainable manner through • Formation of Self Help
Groups for women empowerment • Vocational training through Aditya Birla Rural
Technology Parks • Agriculture development and better farmer focus • Watershed
development • Partnership with Industrial Training Institutes.
In Infrastructure Development we endeavour to set up essential services that form the
foundation of sustainable development through • Basic infrastructure facilities • Housing
facilities • Safe drinking water • Sanitation & hygiene • Renewable sources of energy.
43
To bring about Social Change, we advocate and support • Dowryless marriage • Widow
remarriage • Awareness programmes on anti social issues • De-addiction campaigns and
programmes • Espousing basic moral values.
Activities, setting measurable targets with timeframes and performance
management.
Prior to the commencement of projects, we carry out a baseline study of the villages. The
study encompasses various parameters such as – health indicators, literacy levels,
sustainable livelihood processes, population data – below the poverty line and above the
poverty line, state of infrastructure, among others. From the data generated, a 1-year plan
and a 5-year rolling plan are developed for the holistic and integrated development of the
marginalised. These plans are presented at the Annual Planning and Budgeting meet. All
projects are assessed under the agreed strategy, and are monitored every quarter,
measured against targets and budgets. Wherever necessary, midcourse corrections are
affected.
Organisational mechanism and responsibilities
The Aditya Birla Centre for Community Initiatives and Rural Development provides the
vision under the leadership of its Chairperson, Mrs. Rajashree Birla. This vision
underlines all CSR activities. Every Manufacturing Unit has a CSR Cell. Every Company
has a CSR Head, who reports to the Group Executive President (Communications &
CSR) at the Centre. At the Company, the Business Director takes on the role of the
mentor, while the onus for the successful and time bound implementation of the projects
is on the various Unit Presidents and CSR teams. To measure the impact of the work
done, a social satisfaction survey / audit is carried out by an external agency.
44
Partnerships
Collaborative partnerships are formed with the Government, the District Authorities, the
village panchayats, NGOs and other like-minded stakeholders. This helps widen the
Company’s reach and leverage upon the collective expertise, wisdom and experience that
these partnerships bring to the table.
In collaboration with FICCI, we have set up Aditya Birla CSR Centre for Excellence to
make CSR an integral part of corporate culture.
The Company engages with well established and recognised programmes and national
platforms such as the CII, FICCI, ASSOCHAM to name a few, given their commitment
to inclusive growth.
Budgets
A specific budget is allocated for CSR activities. This budget is project driven.
Information dissemination
The Company’s engagement in this domain is disseminated on its website, annual
reports, its house journals and through the media.
Management Commitment
Our Board of Directors, our Management and all of our employees subscribe to the
philosophy of compassionate care. We believe and act on an ethos of generosity and
compassion, characterised by a willingness to build a society that works for everyone.
This is the cornerstone of our CSR policy.
Our Corporate Social Responsibility policy conforms to the Corporate Social
Responsibility Voluntary Guidelines spelt out by the Ministry of Corporate Affairs,
Government of India in collaboration with FICCI (2009).
45
2.7 MAHINDRA24
Corporate Social Responsibility has always been an integral part of the Mahindra Group's
vision and the cornerstone of our Core Value of Good Corporate Citizenship.
- Keshub Mahindra, Chairman
The Mahindra Group defines Corporate Social Responsibility as making socially
responsible products, engaging in socially responsible employee relations and making a
commitment to the community around it. At the Mahindra Group, Corporate Social
Responsibility is not just a duty; it's a way of life.
In 2005, the Group celebrated its 60th anniversary by renewing its commitment to
Corporate Social Responsibility. It pledged to dedicate 1% of its profit (after tax), on a
continuous basis towards Corporate Social Responsibility. A unique kind of ESOPs -
Employee Social Options was launched to enable Mahindra employees to involve
themselves in socially responsible activities of their choice. The Group also announced a
special gift: to provide free cochlear implants to 60 profoundly hearing-impaired, under-
privileged children.
In addition to giving impetus to the Nanhi Kali project for the girl child and the Mahindra
All India Talent Scholarship for the economically disadvantaged, the Mahindra Group is
planning to set up two Mahindra Pride Schools. These schools will offer a variety of
courses, with an emphasis on employability, including training for Information
Technology, Retail, Automotive Engineering etc. They will provide new skills and
capabilities to the weaker sections of society, particularly the scheduled castes and
scheduled tribe youth. While these projects are already underway, plans for more social
initiatives are on the anvil.
Education
A) K. C. Mahindra Education Trust
Established by the late Mr. K. C. Mahindra in 1953, the K. C. Mahindra Education Trust
aims to ‘Transform the lives of people
24 http://www.karmayog.org/csr501to1000/csr501to1000_20979.htm
46
in India through education, by providing financial assistance and recognition to them,
across age groups and across income strata'. It was registered as a Public Charitable Trust
under the Bombay Public Trusts Act, 1950.
The K.C. Mahindra Education Trust has undertaken a number of education initiatives to
make a difference to the lives of deserving students. The Trust promotes education
mainly by way of scholarships. It has provided more than Rs. 13.80 crores
(approximately US $ 3.0 million) in the form of grants, scholarships and loans. Some of
these scholarships were instituted as far back as the 1950’s, while others were founded
recently. These are funded through an investment portfolio, the main donors of which are
the Mahindra Group of companies.
Encouraging Students -
In its efforts to encourage and motivate students, the K. C. Mahindra Education Trust
has set up the following scholarships:
a. K. C. Mahindra Scholarships for Post-Graduate Studies Abroad Interest-free loan
scholarships for post-graduate studies are awarded to deserving students
interested in pursuing advanced studies overseas.
b. Mahindra Search for Talent Scholarship
This has been set up in 35 schools across the country with an objective to enthuse
and reward excellence in academics.
c. K. C. Mahindra United World College Scholarship
This is offered to deserving students in the age group of 16 -18
Encouraging Teachers
To further encourage teachers, the Trust has set up
- K. C. Mahindra Chair for Nuclear Chemistry at the Institute of Science, Mumbai.
- Dhandevi Mahindra Scholarship Award at Sophia College, Mumbai
- The Trust has also established several awards and scholarships for the academia.
Empowering the Under-privileged
Mahindra All India Talent Scholarship
47
To empower the under-privileged and disadvantaged sections of society, the Trust has
set up the Mahindra All India Talent Schoarship. These are given to students
belonging to lower income group families, to help them pursue job
oriented diploma courses at recognised government polytechnics. Most of the
awardees are girl students, as the Trust is keen on helping girls earn well, to elevate
their standard of living.
Nanhi Kali
Government of India statistics reveal that out of every ten girls who enrol in school in
India, only three complete Standard X. The Nanhi Kali project, launched in 1996 by the
K. C. Mahindra Education Trust, aims to change this by providing quality education to
the disadvantaged girl child. This national girl child sponsorship programme ensures that
every girl child completes her ten years of formal school education in an environment
that would help her to realise her potential to the fullest. Also, various corporates and
individuals can join the Nanhi Kali project by becoming guardian angels to these
disadvantaged girls.
What is most encouraging is that it takes only Rs. 5/- per day to take care of the girl
child’s education and provide her with a life of dignity. The project addresses attitudes
and issues towards girl children by sensitising the teachers, family members and
community on the importance of providing the child with a good education. Sponsors of
Nanhi Kali are provided with a profile of the child (including her photograph), along with
periodic progress reports so that her academic progress can be tracked. The
Nanhi Kali project is currently looking after the education of 30,000 girl children and
intends to reach out to many more in a phased manner.
Recently, the K.C. Mahindra Education Trust entered into a strategic alliance with
Naandi Foundation, a not-for-profit organisation, to jointly manage the Nanhi Kali
project. Naandi Foundation works with 1500 government schools in Andhra Pradesh,
Madhya Pradesh and Chhattisgarh. Through its ‘Ensure Children Learn Programme’,
Naandi Foundation is creating child-friendly school environments that prevent dropouts
and ensure that children learn. The partnership complements the efforts put in by Naandi
48
Foundation in enriching the learning environment, by helping the girl child in the form of
uniforms, textbooks and other learning material.
The Nanhi Kali project is spearheaded by Mr. Keshub Mahindra and Mr. Anand
Mahindra on the K. C. Mahindra Education Trust’s board, and Dr. Anji Reddy, Mr.
Anand Mahindra, Dr. Ishar Judge Ahluwalia, Mr. Ramalinga Raju and Mr. K. S. Raju on
the Naandi Foundation’s board.
B) Mahindra Education Society
As part of its Corporate Social Responsibility activities, the Mahindra Group has
established schools near its factories primarily for children of its employees. At present,
the Group has three schools that impart high standards of education - Mahindra Academy
at Malad in Mumbai, Mahindra Academy in Zaheerabad and a school in Khopoli.The
establishment of these schools has not just benefited their employees but also the
community around these schools. Teachers at these schools are qualified and undergo
regular training as well as attend relevant workshops. Their teaching methodologies are
constantly evaluated and modified when necessary.
C) Mahindra United World College
The striking feature of the United World Colleges is that they embrace the entire world
across all divides of race, history, culture, wealth, religion, economic status and political
belief: they are unique and they are conscious of their responsibilities.
– Nelson Mandela, United World College Honorary President
The Mahindra United World College of India, part of the United World College
movement, was founded by the late Harish Mahindra in 1997. It is the Group’s endeavour
to promote world- class education with an emphasis on the ideals of peace and
understanding, central to the ethos of the United World Colleges. There are 10 United
World Colleges spread across the globe, with colleges situated in United Kingdom,
Singapore, Canada, Swaziland, Italy, United States of America, Venezuela, Hong Kong,
Norway and India. Her Majesty Queen Noor of the Hashemite Kingdom of Jordan is the
President of the United World Colleges and Mr. Nelson Mandela, former President of the
49
Republic of South Africa, is the Honorary President of the United World College
International Council.
Located 40 kms. west of Pune, the Mahindra United World College of India brings
together students of various nationalities for a pre-university degree. The school is global
not only because of the International Baccalaureate degree, but also because of the true
international culture in which the students study, live and learn. Each year’s batch of
about 100 students accommodates about 65 to 70 from abroad. The faculty includes
professors from Argentina, Australia, Austria, Cameroon, Canada, Colombia, Ecuador,
France, Germany, India, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand,
Sweden, South Africa, UK and USA. The teacher-student ratio is 1:9.
This international mix facilitates global exposure and helps students transcend all
artificial barriers based on race, religion, ethnicity, class, gender or nationality. Keen
focus is given on all-round development, and students are encouraged to think
innovatively by involving themselves in socially and environmentally relevant issues.
The students also contribute to the local neighbourhood through community service
programmes.
Health & Disaster Relief
Mahindra Foundation
The Mahindra Foundation has been set up with a specific objective: to provide medical
relief to the poor and needy sections of society. The foundation has helped patients
suffering from cancer, heart ailments as well as burn victims. It has also been very active
during national calamities and disasters and has helped contribute and mobilise resources.
The foundation also extends its support to academia and other professionals and
sportsmen by helping them attend workshops and conferences overseas.
The Mahindra Group has always been very responsive to any major disaster in India.
Whether it's been the tsunami or the Gujarat earthquake, the Mahindra family has got
together and always provided support either by way of financial help or by way of
sending vehicles, supplying material or manpower.
50
Arts & Culture
Theatre Week
The Mahindra Excellence in Theatre Awards (META) is the latest in the Mahindra
Group’s efforts to encourage national theatre in two broad categories - Emerging theatre
and Established theatre. The annual awards are in tune with the Group’s Corporate Social
Responsibility programmes, which have already received a fillip in the Conglomerate’s
60th anniversary year. The awards will initially cover English & Hindi theatre and
includeother language productions at a later stage. The Critic’s Panel, consisting of
expert theatre and literary personalities based in the four metros, has overseen the
selection of the plays in both categories.
The selection process covers four broad areas of the country, namely, North, South, East
and West. The Critic’s Panels are based in each of the four regional hubs of Kolkata,
Mumbai, Delhi and Bangalore.
Six plays are selected from each region and are referred to the respective Critic’s Panel.
The Panel from each metro city then sends the final list of eight productions to the Grand
National Jury.
The Grand National Jury for the year 2006 includes theatre luminaries such as
Shyamanand Jalan, Shabana Azmi, Ila Arun, Shashi Kapoor, Zafar Hai and M. S. Sathyu.
The Mahindra Group also plans to set up a Mahindra Academy for Excellence in Theatre.
Environmental Initiatives
Environment protection is a part of everyday being at the Mahindra Group. Right from
Mahindra products such as vehicles which are designed meeting International standards
of Safety and emission, to all Mahindra plants across the nation which comply way
beyond necessary environmental regulations by setting new standards in natural resource
conservation, efficient water management and with the most recent Green IT; Mahindra
shows that it care of planet earth proactively.
Towards making planet earth greener, the Group has vowed to plant a One Million Trees
across the Nation by October 2008 under the Mahindra Hariyali initiative. Mahindra
Hariyali, is a mass tree plantation initiative undertaken by each and every Mahindra
location - be it a Plant/factory setting or a corporate office. Shramdaan by Mahindra
51
employees (and their families) themselves and even Mahindra dealers is a major driver of
the initiative. With strong and meaningful partnerships with various stakeholders in the
civil society such as schools, colleges, trusts, and also the Government (Forest
Departments etc), the Mahindra Hariyali model ensures plantation and nurturing of these
trees in the society at large. What started as a seed with top management vision is now
bearing fruits towards reaching the zenith of completion.
Since 1984, the Mahindra Group has been lending a hand to the ‘Green Bombay’
movement by developing and maintaining municipal gardens. Greenery is at a high
premium as the city has less than half an acre of open place per thousand people. That’s
ten times less than Delhi and twenty times less than what London offers.
The Group has transformed three municipal gardens:
The Shivaji Garden (near Gateway of India) is admired for its beautiful architecture and
flourishing plants and flowers. Completely renovated by the Mahindra Group at a cost of
Rs. 6 Lakhs, it now has pathways for pedestrians as well as new stretches
of lawns and flowers. An area formerly frequented by anti-social elements has been
merged with the garden, to prevent further misuse. Every effort has been taken to keep
the garden in an immaculate condition and visiting hours are in place, facilitating
maintenance work.
The Traffic Island Garden (opposite Regal Cinema) has been completely renovated by
the Mahindra Group at the cost of Rs. 1 Lakh. New lamp posts and a variety of plants
were put into place and the fountain was restored to its former glory. The garden provides
visual relief in this crowded and traffic congested circle.
The third garden is located at the junction of Madame Cama Road, to the south of Oval
Maidan. This is a brand new garden, developed by the group from scratch, at a cost of Rs.
1.5 Lakhs. Formerly misused by vagrants, it is now a serene and beautiful little corner.
Excerpts from letters of appreciation the Mahindra Group has received over the
years:
The President of India and all VVIP's who witnessed the Presidential Review recently
were very happy about the way the Gateway has been given a new look. This was mainly
52
because your organisation did a splendid job in giving a face-lift to Shivaji Garden,
which added to the beauty of the surroundings. With your co-operation, the garden stands
out as a model to be emulated by others.
- Mr. D.M. Sukthankar, Municipal Commissioner, Bombay
The Review of the Fleet by the President of India on February 12, 1984 and the other
functions concerned with it have been a great success. This achievement would not have
been possible without the dedicated efforts of a number of agencies. I would like to
especially thank you for your personal interest in the beautification of the garden at the
Gateway of India, which distinctively lent charm and character to the Beating Retreat
Ceremony and reception that followed.
- Vice Admiral R.H. Tahiliant, Flat Office Commanding-in-Chief, Western Naval
Command, Bombay
The traffic island opposite Regal Cinema has become a beautifully appointed garden. Of
greater merit perhaps would be your initiative at undertaking such a job. I consider this a
textbook example of showing us a simple, albeit effective way of improving the quality
of life in this crowded metropolis.
- Sr. Columbiere, Principal, St. Annes School, Bombay
A long-time resident of Bombay, I have been in the Virgin Islands, USA, for the past two
years. On a recent visit home, I was pleasantly surprised to see new greenery in this city.
The garden at the side of Oval Maidan with its pretty lawns and flaming bougainvillea
specially caught my eye. I am sure that citizens of Bombay greatly appreciated your
company's efforts in beautifying our city.
- Shobha Idnani
53
Sports
Mahindra United Football
a) History
All work and no play can indeed make a company very dull. That’s why a simple club
with a few games and basic amenities was set up in 1950. No one ever thought that this
would grow into an establishment that ran a professional team and offered high quality
facilities, incentives and allowances.
The shift was gradual. In 1956, a group of youngsters enrolled themselves as the
Mahindra official team in the Bombay Football League and made valiant efforts to reach
the top. To further improve the standards, the company provided a full- size football
field for practice and training. At this point, with the football teams representing the
company at tournaments in Bombay, the need for a sports club arose. So the Mahindra &
Mahindra Allied Company Sports Club came into being in 1962.
Since then the team has gone from strength to strength, getting into Bombay’s senior
division Harwood League in 1964 and earned the dashing sobriquet, ‘The Giant Killers’.
Football was developing in Maharashtra and in Mahindra too. In 1969, Mr. Harish
Mahindra was elected Vice President of Western India Football Association (WIFA).
Mahindra & Mahindra Allied Company Sports Club, then known as the Orange Brigade,
was the most popular team in Maharashtra after strong teams like TATA’s, Mafatlal’s
and Caltex. The late 80’s saw Mahindra emerge as one of the most formidable teams in
the country, attracting talented international players like P. M. Shivdas, C. Mustafa, Jerry
Bassi, Henry Menezes, Santosh Kashyap and Godfrey Pereira. Top teams like East
Bengal, Mohun Bagan and Mohammedan Sporting went all out to recruit the Mahindra
players.
In 2000, the Mahindra Football Team underwent a total revamp and the Orange Brigade
turned red. The team was renamed Mahindra United under the leadership of Mr. Alan
Durante, Executive Director & President of the Automotive Sector. Committed support
from the Chairman, Keshub Mahindra, and Managing Director & Vice Chairman, Anand
Mahindra, set the ball rolling. Big names like Raghavan, Derek Desouza, Harish Rao,
Karel Stromsik, David Booth and Dhronacharya Awardee, Syed Nayeemuddin, have
coached the team and taken it from victory to victory.
54
There's been no looking back since then. Mahindra United of Mumbai is the only team in
Maharashtra to win the Durand Cup twice, which is the second oldest trophy in the
world. It is also the first team in Maharashtra to win the Harwood League and the
Nadkarni Cup three times in a row. In fact, right now the Indian football team too, is led
by the captain of Mahindra United.
b) Mahindra United Under - 19 years
In an attempt to nurture young talent and promote football in Mumbai, Mahindra United
fielded an Under-19 years team from 2003. The team performed extremely well in the
NFL league for U-19 years and reached the semi-finals, beating teams like Churchill Bros
and Salgaocars. This promotion of the U-19 years team has helped the players to develop
and display their talent at the top level and has got them instant recognition and offers
from some leading clubs in Mumbai.
c) Mahindra United Under - 15 years
Spurred by the success of its U-19 years team, Mahindra United fielded an Under-15
years team from 2006. The team played the Manchester United Premier Cup Asian
Qualifiers held at Kolkata where top NFL Clubs participated.
Awards & Recognitions – 2008
The Nashik Plant became the first plant to win the prestigious CII National Award
for Excellence in Energy Management 2008 at an event held in Pune on 22nd and
23rd August 2008.. The award recognizes various industrial sectors for their
outstanding contribution to Energy Conservation and Management. The award
was conferred on the basis of Nashik plant’s various energy conservation
initiatives and its performance over the last three years.
Mahindra & Mahindra was honoured with the Businessworld FICCI-SEDF
Corporate Social Responsibility Award from the Honourable Finance Minister,
Mr. P. Chidambaram in New Delhi on May 18, 2008. Instituted in 1999, the
Businessworld FICCI-SEDF Corporate Social Responsibility Award identifies and
recognizes the efforts of companies in integrating and internalizing CSR into their
55
core business operations. Mahindra’s CSR activities focus on the three areas of
education, environment and health, and the company has pledged 1% of its profit
after tax (PAT) on a continuing basis for CSR activities.
M&M won the Auto Monitor CSR award for the Lifeline Express at a glittering
ceremony held in New Delhi on the 7th of March 2008. The Lifeline Express was
the organization’s largest Esops initiative and was undertaken by the FES
Rudrapur plant, who together with other volunteers such as doctors put in an
amazing 21,742 man hours.
On January 18, Mahindra and Mahindra won the BSE award for Best Corporate
Social Responsibility Practice at the Social and Corporate Governance Awards
(Innovative strategies - Measurable Impacts), presented by BSE and NASSCOM
Foundation. The Award ceremony was the culmination of the Business for Social
Responsibility Contest organized by BSE and NASSCOM Foundation in which
Mahindra and Mahindra Limited was short listed along with 28 other Corporates
for the category Best Corporate Social Responsibility Practice.
2.8 LARSEN & TOUBRO LTD.25
CSR activities:
L&T believes that the true and full measure of growth, success and progress lies beyond
balance sheets or conventional economic indices. It is best reflected in the difference that
business and industry make to the lives of people. Through its social investments, L&T
addresses the needs of communities residing in the vicinity of its facilities, taking
sustainable initiatives in the areas of heath, education, environment conservation,
infrastructure and community development.
The company proactively provides assistance in situations such as natural calamities and
assists victims of nature's fury or social neglect. Many social initiatives are undertaken in
partnership with government agencies and NGOs.
25 http://www.karmayog.org/csr501to1000/csr501to1000_21150.htm
56
Health
L&T's participates in building a healthy community through continuing initiatives in
several areas of healthcare, with a focus on mother & child care and HIV/AIDS
awareness. All L&T locations, including construction sites, have in-house AIDS
awareness programs. Five additional mother & child care centers were set up in 2006-07.
In partnership with local NGOs, these centres benefit children of commercial sex
workers, street children and tribal communities.
Through health care centres and regular family camps L&T organizes health checkups,
provides gynaecology and laboratory facilities, carries out free cataract surgeries and
intra ocular lens implants, and helps maintain health data for children.Supply of
equipment and aid for orphanages and physically challenged children, periodic
counseling to combat rampant alcoholism, awareness camps on childcare, reproductive
health, sanitation, dental check-up, provision for safe drinking water, cancer awareness
etc. are other healthcare activities that L&T supports.
Education:
L&T's diverse and sustained programmes in education provide underprivileged children
with learning opportunities through supply of educational materials, teaching aids,
recreational tools and up scaling school infrastructure. L&T also enriches children's lives
through programmes like summer camps, maths coaching, providing facilities like
science laboratories, scholarship to deserving students, etc.
The vocational training institutes of the Larsen and Toubro Public Charitable Trust,
provide local communities with skill-based training in Formwork, Masonry, Agro
Mechanics, Electricals, Fabrication, Welding and Housekeeping.Various diploma courses
are also conducted by L&T Institute of Technology for the children of employees. L&T
has developed training modules in local languages in six centres across India for
imparting skills sets in construction. L&T Training Centers provide courses for
improving the standards of electrical engineering practices and for upgrading knowledge
of maintenance, repair and welding.
57
Environment
Global warming: at L&T, we have always been conscious of the need to maintain
harmony with the environment. We continuously seek newer environment-friendly
approaches in all our operations – energy conservation, exploring alternative sources like
wind and solar energy, waste water reduction, etc.
The Zero Discharge approach of the Powai Campus saves over 350,000 litres water
everyday through water treatment and recycling. More than 13,500 trees have been
planted in different L&T campuses in the last year, and an additional 4,000 saplings were
distributed among local communities.
Response to natural calamities
L&T and its employees have provided relief measures during natural calamities like
earthquake and floods. L&T has assisted in disaster relief through employee and
corporate donations, employee volunteering, supply of construction material, medical and
food supplies. After the floods in Surat (Gujarat-India), L&T played a major role in road-
clearing operations, organising medical camps, and supply of food, water, clothes and
other relief materials.
Employee Volunterring
L&T encourages employees to volunteer for CSR activities, resulting in a self-driven
approach while retaining consistency. L&T employees and the ladies clubs formed by
their families at different locations, serve their communities by investing personal
resources and time.
From taking initiatives in building the next generation of productive citizens,
empowering women, paying regular visits to old age homes and orphanages, to
organising blood donation camps, our employees have always believed in truly making a
difference to the world in which they live.
58
RECOMMENDATIONS
A company must spend a minimum of 0.2% of annual sales on CSR
A company must publish its CSR activities in the annual report, or in a separate
Sustainability Report
International guidelines for Environment, Health and Safety as well as for
industry-specific processes exist, and a company must adopt these along with
using its core competence for CSR, and must link CSR to its physical location and
reach.
The CSR policy of the business entity should provide for an implementation
strategy which should include identification of projects/activities, setting
measurable physical targets with timeframe, organizational mechanism and
responsibilities, time schedules and monitoring. Companies may partner with local
authorities, business associations and civil society/non-government organizations.
They may influence the supply chain for CSR initiative and motivate employees
for voluntary effort for social development. They may evolve a system of need
assessment and impact assessment while undertaking CSR activities in a particular
area. Independent evaluation may also be undertaken for selected
projects/activities from time to time.
Companies should allocate specific amount in their budgets for CSR activities.
This amount may be related to profits after tax, cost of planned CSR activities or
any other suitable parameter.
To share experiences and network with other organizations the company should
engage with well established and recognized programmes/platforms which
encourage responsible business practices and CSR activities. This would help
companies to improve on their CSR strategies and effectively project the image of
being socially responsible.
The companies should disseminate information on CSR policy, activities and
progress in a structured manner to all their stakeholders and the public at large
through their website, annual reports, and other communication media.
59
Government and Industry Associations to support companies generating green and
renewable energy
Government and Industry Associations to send letters of appreciation to those
companies that succeed in substantial reduction in energy consumption and
wastage
Government along with Industry Associations to rate companies on the scale 1-5
based on a responsibility index. This result to be widely published. Tax
concessions to be given to companies that secure CSR high ratings.
Companies should take measures to check and prevent pollution; recycle, manage
and reduce waste, should manage natural resources in a sustainable manner and
ensure optimal use of resources like land and water, should proactively respond to
the challenges of climate change by adopting cleaner production methods,
promoting efficient use of energy and environment friendly technologies.
Depending upon their core competency and business interest, companies should
undertake activities for economic and social development of communities and
geographical areas, particularly in the vicinity of their operations. These could
include: education, skill building for livelihood of people, health, cultural and
social welfare etc., particularly targeting at disadvantaged sections of society.
60
CONCLUSION
Even though companies are taking serious efforts for the sustained development, some
critics still are questioning the concept of CSR. There are people who claim that
Corporate Social Responsibility underlies some hidden motives while others consider it
as a myth. Is CSR really a stalking horse for an anti-corporate agenda? The reality is that
CSR is not a tactic for brand building. Indulging into activities that help society in one
way or the other only adds to the goodwill of a company. Rural people can become a
viable market for the corporate with a developmental approach of social marketing.
Organisations can launch social responsibility initiatives in order to build brands in the
rural areas. The social responsibility initiatives are far more effective in building brands
in rural market than the commercial advertisements.
With increasing and widespread commitment of corporate resources to CSR, attention is
now shifting to the strategic formulation, implementation, and measurement of the
market returns to CSR initiatives. But still a concern to companies is whether their focus
on “doing good,” will provide positive returns to their CSR actions. This emphsize the
need for better measurement models of CSR that capture and estimate clearly the effects
of a company’s CSR actions on its stakeholders as well as the nations in which they are
operating. The developing economy like India is progressing at a growth which is much
higher to its social growth. It is increasing the gap between the different strata of society
in the country in terms of employment, human development, capital distribution and
poverty. Public sectors companies and government are continuously introducing reforms
to achieve the balance but it seems that it is not sufficient to bring revolutionary changes
in the social progress. So there is urgent need that all stakeholders in national economic
development put synergistic effort to create a impact. This balancing has to be achieved
or growth has to be stabilized in respect to social growth else the divergence between
them will cross a threshold and after that a downfall will come which will lead to a
stagnancies in growth.
61
CSR is about common sense policies that represent a means of integrating a complete
‘social perspective’ into all aspects of operations. The goal is to maximize true value and
benefit for an organization, while protecting the huge investments corporations make
today in their brands. CSR asks companies to ensure their business operations are clean
and equitable, and contribute positively to the society in which they are based. Otherwise,
they leave themselves open to too much danger from a potential consumer backlash.
CSR is good business sense, and a total approach to doing business, in a globalizing
world where companies are increasingly relying on brand strength (particularly global
lifestyle brands) to add value and product differentiation, and where NGO-driven
consumer activism is increasing.
Many believe the issue of how corporations integrate CSR into everyday operations and
longterm strategic planning will define the business marketplace in the near future. It will
become a key point of brand differentiation, both in terms of corporate entities and the
products that carry their brands.
Key steps on the road to integrating CSR within all aspects of operations include:
Ensure the commitment of top management, and particularly the CEO, is
communicated throughout the organization
Appoint a CSR position at the strategic decision-making level to manage the
development of policy and its implementation
Develop relationships with all stakeholder groups and interests (particular relevant
NGOs)
Incorporate a Social or CSR Audit within the company’s annual report
62
BIBLIOGRAPHY
Websites :
http://www6.miami.edu/ethics/pdf_files/csr_guide.pdf
http://www.brass.cf.ac.uk/uploads/History_L3.pdf
http://www.iitk.ac.in/infocell/announce/convention/papers/Industrial
%20Economics,%20Environment,%20CSR-07-VijayLaxmi%20Iyengar.pdf
http://ezinearticles.com/?The-Role-of-Corporate-Social-Responsibility-in-
Modern-Business-Development&id=455618
http://hubpages.com/hub/The-Growing-Importance-of-Corporate-Social-
Responsibility
http://www.ibef.org/artdispview.aspx?art_id=26104&cat_id=926&in=84
http://www.chillibreeze.com/articles_various/CSR-in-India.asp
http://www.itcportal.com/sustainability/lets-put-india-first/home.aspx
http://www.itcportal.com/sustainability/lets-put-india-first/echoupal.aspx
http://www.itcportal.com/sustainability/lets-put-india-first/forestry.aspx
http://www.itcportal.com/sustainability/lets-put-india-first/watershed-
development.aspx
http://www.itcportal.com/sustainability/lets-put-india-first/agricultural-
development.aspx
http://www.itcportal.com/sustainability/lets-put-india-first/womens-
empowerment.aspx
http://www.itcportal.com/sustainability/lets-put-india-first/livestock-
development.aspx
http://www.itcportal.com/sustainability/lets-put-india-first/primary-education.aspx
63
http://www.globalcompactasiapacific.org/india/files/documents/ONGC%20CSR
%20Policy%20&%20Initiatives.pdf
http://www.karmayog.org/csr501to1000/csr501to1000_21977.htm
http://www.karmayog.org/csr501to1000/csr501to1000_22167.htm
http://www.adityabirla.com/social_projects/overview.htm
http://www.adityabirla.com/social_projects/downloads/csr_policy.pdf
http://www.karmayog.org/csr501to1000/csr501to1000_20979.htm
http://www.karmayog.org/csr501to1000/csr501to1000_21150.htm
64