Csr Final

Corporate social responsibility (CSR)

also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance It is a form of corporate self-regulation integrated into a business model. CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: People  Planet  Profit. Business would embrace responsibility for the impact of their activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere.

The multiple responsibilities of business

Economic Responsibility

Legal Responsibility

Social Responsibility

Social Responsibility... an organization’s obligation to maximize its positive impact on stakeholders and to minimize its negative impact includes legal, ethical, economic, and philanthropic (discretionary) dimensions

refers to obeying governmental laws and regulations civil law: rights & duties of individuals and organizations criminal law: prohibits specific actions and imposes fines and/or imprisonment as punishment for breaking the law

behaviors and activities that are expected or prohibited by organizational members, the community and society . standards, norms, or expectations that reflect the concern of major stakeholders

how resources for the production of goods and services are distributed within the social system Do you think consumers favor socially responsible companies or are they most enamored with companies that maximize profits?

Charity Principle Definition

Type of activity Examples

Stewardship Principle

• Business should give • Business, acting as a public voluntary aid to trustee, should consider the society’s needy persons interests of all who are and groups affected by business decisions and policies • Corporate philanthropy • Acknowledging business and society interdependence • Voluntary actions to promote the social good • Balancing the interests and needs of many diverse groups in society • Corporate philanthropic • Enlightened self-interest foundations • Meeting legal requirements • Private initiatives to • Stakeholder approach to solve social problems corporate strategic planning • Social partnerships with needy groups

The pros and cons of corporate social responsibility Arguments for corporate Arguments against corporate social responsibility social responsibility Balances corporate power with responsibility.

Lowers economic efficiency and profit.

Discourages government regulation.

Imposes unequal costs among competitors.

Promotes long-term profits for business. Responds to changing stakeholders’ demands.

Imposes hidden costs passed on to stakeholders. Requires social skills business may lack.

Corrects social problems caused by business.

Places responsibility on business rather than individuals.

Two views of corporate social responsibility The shareholder view • The only social responsibility of business is to create shareholder wealth. • Corporate management cannot decide what is in the social interest. • The costs of social responsibility which do not increase the value of stock, will be passed on to consumers. The multiple stakeholders view • All customers and employees are treated with dignity. • Relationships with suppliers must be based on mutual trust. • Belief in fair economic competition. • Business can contribute to social reform and honor human rights.

Degree of responsiveness to a specific issue

A three-stage model of corporate social responsiveness High

Policy

STAG EOrganizational Learning Commitment

• Organizational changes • Administrative learning • Specialized learning • Formulate policy • Identity problem

Low

Time (years)

Human resources A CSR programme can be an aid to recruitment and retention particularly within the competitive graduate student market. CSR can also help to improve the perception of a company among its staff, particularly when staff can become involved through •payroll giving • fundraising activities • community volunteering. Risk management Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks. Brand differentiation In crowded marketplaces, companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in building customer

Corporate Social Responsibility is about two aspects. To reduce the negative effects caused by its products and processes on the environment, Positive steps a company takes using its resources and core competence for the benefit of society. FACTS: The results of the ratings for 2008 show that 49% of the companies are not doing any CSR activity. Just 1% or 10 of the 1000 largest Indian companies studied have got the highest rating of Level 4. Companies that have got a Level 4 rating are: •ACC • Ballarpur Industries • HDFC • Infosys Technologies, •Jubilant Organosys •Kansai Nerolac • Moser Baer •TCS • Tata Steel • Titan Industries.

There are 3 mandatory recommendations flowing from the premise that 'every company must do CSR’, 1) A company must spend a minimum of 0.2% of annual sales on CSR 2) A company must publish its CSR activities in the annual report, or in a separate Sustainability Report 3) International guidelines for Environment, Health and Safety as well as for industryspecific 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.

A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged "The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its overseas operations. The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh Beyond business — the Aditya Birla Group is::: Working in 3,700 villages :: Reaching out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, headed by Mrs. Rajashree Birla :: Focusing on: health care, education, sustainable livelihood, infrastructure and espousing social causes :: Running 41 schools and 18 hospitals A message "We

care".

Sales (2007-2008) =Rs.25700 crores. (rounded off) Net profit after tax =Rs.6200 crores. (rounded off) 2008 CSR Rating:   3/5 At Bharti, CSR is a way of life‘Corporate Values’ These Values are: To be responsive to the needs of our customers To trust and respect our employees To continuously improve our services – innovatively and expeditiously To be transparent and sensitive in our dealings with all stakeholders  We encourage our employees to take decisions and design business

processes, keeping in mind the following: Ethics, fairness and being correct Showing respect and sensitivity towards stakeholders and communities, and Nurturing the environment

Community Initiatives  Blood donation camps are organized for the welfare of the underprivileged community.  Bharti constantly searches for new, innovative ways of reducing the consumption of resources, with the aim of leaving a better and greener earth for future generations. Bharti Airtel’s response to Tsunami Disaster:  Donated Rs. 1 Crore to the Prime Minister’s Relief Fund,  Created 29 Airtel Crisis Communications centres in Tamil Nadu  Raised resources for Tsunami victims by initiatives such as a ‘Benefit Cricket Match’  Employees  A ‘Material Collection Drive’  Bharti Airtel during Mumbai Floods:  Bharti Airtel’s response to Kashmir earthquake:  Airtel Ashiana for underprivileged children at the Mohali. Bharti FoundationBharti Foundation in 2000 with a vision, “To help underprivileged children and youth of our country realize their potential.  

Income 2005-2006 =  Rs 1700 Cr (rounded off) Net profit after  tax (05-06) = Rs  150 Cr (rounded off) CSR Rating- 2/5

CSR activities: The involvement of the Wadias in community welfare began: Set out to construct low cost baugs or housing colonies in Bombay for lower and middle-class Parsis.

Health care facilities was another area: Build hospitals in Bombay.

welfare of its workers. First housing projects for mill workers was started by the Wadia mills. The trustees have disbursed funds to causes from scholarships for the disabled to drought relief in Bombay. Latur earthquake in India saw the Wadia Group rebuild an entire village and in the process, rehabilitate thousands of families.

Income 2005-2006 =  Rs 815 Cr (rounded off) Net profit after tax (05-06) = Rs 75  Cr (rounded off) CSR Rating- 3/5

CSR activities:  Mangrove conservation has been the key focus of the Environment Cell. The  residential township and community Focusing on environmental education Godrej  has successfully oriented thousands of school, college,through their Mangrove Awareness Programs. Godrej  has formed specialist group:, for example

The Envirotech Group – for pollution-reduction. The Encon Group – for energy conservation. Garden Deparment - which looks after the natural environment. Simultaneously, engaged in propagation of various species of orchids, medicinal plants and rare endemic species, amongst others. Organised tours

Income 2005-2006 =  Rs 12750 Cr (rounded off) Net profit after tax (05-06) = Rs1950 Cr (rounded off) CSR Rating- 3/5

CSR activities: Healthcare/medical Literacy enhancement Infrastructure   Community development Educational aid Drinking water /sanitation Environment protection Sponsorship of 350 reconstructive surgeries for leprosy patients, Donation of 11 motorized tri wheelers to the physically challenged, Training orthopedically challenged women in Kerala and Madhya Pradesh in screw pine craft and mushroom cultivation. Donation and contribution , Helping War widows.

Income 2005-2006 =  Rs  7550   Cr (rounded off) Net profit after tax (05-06) = Rs   800   Cr (rounded off) CSR Rating- 2/5

CSR activities: An Integrated Rural Development Centre has been set up on 40 acres of land. Installation of deep bore hand pumps to provide clean drinking water. Constructing metalled roads and connecting these villages to the National Highway (NH -8). Renovating primary school buildings and providing hygienic water and toilet facilities. Ensuring a proper drainage system at each of these villages to prevent water-logging. Promoting non-conventional sources of energy by providing a 50 per cent subsidy on biogas plants. Building Hospitals,Schools, Sports complex, Vocational Training Centre. Adult Literacy Mission. Marriages of underprivileged girls..

Income 2005-2006 =  Rs 7000 Cr (rounded off) Net profit after tax (0506) = Rs 2000 Cr (rounded off) CSR Rating- 4/5

CSR activities: Healthcare: constructing hospital wards, donating hi-tech equipment and organizing health camps, distributes medicines to economicallyweaker sections in remote areas. Social rehabilitation and rural upliftment:building orphanages, to distribute sewing machines to destitute women and help them earn a livelihood. Learning and education:the Foundation has set up more than 10,150 libraries in rural government schools. Art and culture

Income 2005-2006 = Rs 14000 Cr (rounded off) Net profit after tax (05-06) = Rs 3500 Cr (rounded off) CSR Rating-4/5

CSR activities: Sharing Wealth to Diminish Disparities  Free medical aid in 1915. Education. Income generation for tribals. Health care. Health care awareness including eye care, tuberculosis treatment, general health awareness, HIV/AIDS Awareness and Mother and Child survival programmes.

Ongoing Programmes •Mother and Infant Survival Programme Population Stabilisation •Operation Muskaan for cleft lips and palates "YARS" - Youth and Adolescent Reproductive Services. •Specifically targeted programmes on HIV and AIDS. •Project "WATSAN" for Water and Sanitation Free Health Checkups for Women at Surya Clinics •Pioneer in Family Initiatives and HIV/AIDS Awareness Ringing the first alarm bell for

Sales (2007-2008) = Rs. 1340 crores (rounded off) Net profit after tax = Rs. 60 crores (rounded off) 2008 CSR Rating: 3/5 CSR activities:

Mission: To contribute positively to the community well being.

Objective: Undertake a comprehensive social development program in the identified areas to promote.

Primary Education * Awareness programmes * Infrastructure for existing schools * Financing payroll of teachers or support staff appointed * Providing meals

Primary Health Care To make primary health care more accessible and affordable. * Awareness programmes * Health Camps * Providing infrastructure to existing dispensaries, clinic

3. Water Availability Promote conservation of water resources and facilitate access to clean and portable drinking water. It includes : * Rain water harvesting * De-silting of tanks/ponds or other water bodies * Providing portable drinking water to communities BOOK DISTRIBUTIONS. SCHOOL FOR THE BLIND. LIBRARY INAUGURATED. MOBILE MEDICAL SERVICE. MEDICAL CAMP.

Co’s. Not Performing CSR Activities Airports Authority of India - New Delhi ,CSR Rating- 0/5 Aurobindo Pharma Ltd - Hyderabad,AP: ,CSR Rating- 0/5 Berger Paints India Ltd - Kolkata,W.b ,Rating- 0/5 Bharat Sanchar Nigam Ltd - New Delhi,Rating- 0/5 City Union Bank Ltd - Kumbakonam,T.N ,Rating- 0/5 Exide Industries Ltd - Kolkata,W.B ,CSR Rating- 0/5 LIC Housing Finance Ltd - Mumbai,Mah, CSR Rating 0/5. Moser Baer India Ltd – Delhi ,CSR Rating- 0/5 Unitech Ltd - Gurgaon,Har ,Rating- 0/5

THANK YOU