Swap Csr
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CORPORATE SOCIAL RESPONSIBILITY Presented By – Group1 Manish Ayare – Larina Lobo – Priti Mehendale – Swapnil Parab -
03 30 35 44
CORPORATE SOCIAL RESPONSIBILITY
Business is social function.
Business innovates new product.
It exploits natural, human resources.
Shareholder
Society at Large
Social Responsibility
Customer
Employee
Responsibility towards Shareholders
Ethical Mandate of Business is to increase shareholder’s profit.
Responsibility Towards Employee Fair Treatment No discrimination. Fair Wages. Healthy & safety working Environment. Proper recognition, appreciation. Proper Training development.
Responsibility Towards Consumer Products with Quality. New Innovative products. Reasonable Price of Product. After sale service. Ensuring that product doesn’t have adverse effect. To hear and redress the grievance of customer.
Responsibility Towards Community To prevent Ecological imbalance. Contributing to R & D Development of Backward areas Development of region in which they are operating. Developing alternatives for scarce resources.
Gandhian Philosophy of Trusteeship
Based on “Sarvodaya” Principle.
Manager and Labor should supplement each other’s work.
Investment in employee increases productivity. Social Responsibility imparts Loyalty,sale,profit. CSR used to gain strategic advantage,market share. It is not one time activity but ongoing process.
TATA -
Established by Jamshethji Tata in the second half of the 19th century one of India's biggest and most respected business organisations 3 Main things in jamshethji which hepled TATA to born and grow: His entrepreneurial vision commitment to ideals that put people before profits fortitude in the face of adversity
Tata Group comprises 98 operating companies in seven business sectors information systems and communications; engineering; materials; services; energy; consumer products; and chemicals revenues in 2006-07 of $28.8 billion (Rs129,994 crore), the equivalent of about 3.2 per cent of the country's GDP, and a market capitalisation of $65.32 billion as on February 7, 2008 operations in more than 80 countries across six continents, and its companies export products and services to 85 countries. five core values: integrity, understanding, excellence, unity and responsibility
EMPLOYEES
Created sense of loyalty Well known political personalities were involved Failure of union leaders Threat of losing control over workforce 1st post war meeting of ILO’s Iron & Steel Committee Created sense of belonging
Apprenticeship Pioneer of apprenticeship Object : to inspire trainees to attain standard of excellence Sir Dorab Tata’s initiatives: Institute of metallurgical technology, 1921 Created future workforce for the country Apprentices created standards of excellence outside their field as well
Planting Men “If you want to plan for a year, plant corn; if you want to plan for 30years, plant a tree; but if you want to plan for 100 years, plant men” One of Tata’s small component supplier about TATA: “ whenever I am short of funds I ask them and that very day I get my payments. I also supply parts to another factory but I feel shy of asking them, but to TELCO I go freely. They have given me izzat (dignity) in the way they have treated me.” Encouragement to retired people and family members of the staff
Development of villages Jamshedpur development Invitation to Sydney and Beatrice Webb for planning purpose appointment of A.V.Thakkar for execution of plan - Elimination of middlemen - Removal of Pathan money lenders
Adoption of concept of social services 1st to start Urban Community development Programme 1st company to have social Audit for its activities Setting up co-operative society at ‘Bhalubasa’
-
-
The Devapur Project 1952, professor D.R.Gadgil Area of incessant wind and dust, no facilities of school, medicine, roads, clean drinking water, scanty rain Different measures implemented Positive results achieved
Assessment report on project ‘ notwithstanding the few qualitative deficiencies that might exist, the Devapur Project is an oasis in the famine tract of Maharashtra’
Relief to distress
1934 – earthquake at Monghyr World war II – contribution to lord mayors fund in London – for people displaced by war & to refugee organizations 1967 – earthquake at Koyna 1975 – flood in Patna 1979 – Morvi flood 1977 – cyclone in Andhra
Institutions -
TATA INSTITUTION OF FUNDAENTAL RESEARCH Born due to vision of Dr. Homi Bhabha Research and contributions used not only by India but foreign countries Major programmes for control of mouth cancer
TATA INSTITUTE OF CANCER RESEARCH AND DEVELOPMENT - Findings on proposal with help of Dr. John Spies - 1941, 1st cancer hospital - Creation of culture - ‘The cost can be estimated but not the value of investment. For who can measure the joy in the heart of the wife or a mother to see her loved one & the bread-winner recover & return home?’
TATA INSTITUTE OF SOCIAL SCIENCES - 1ST activity undertaken at the time IndiaPakistan partition - 1st project of Sir Darobji Tata Trust, on recommendations of American social worker Dr. Clifford Manshardt - “an outstanding scholastic institution. It will seek to make men are at present willing to do social work, actually competent to do social work” - Some achievements like 1st labor welfare officer, set up of 1st child guidance clinic, different projects for children's, women. Tribal & rural development
TATA TRUSTS
concept of “TRUSTEESHIP” By product of Jamshethji Tata & his sons Aim to pitch folk India among great industrial nations Trusts : 1.Sir Ratan Tata trust (1918) & Sir Dorab Tata trust (1932) Worked in non-biased nature
Sir Dorabji Tata trust - Provided funds for learning & relief of distress - Established major institutions 1. Tata Institute of Social sciences(1936) 2. Tata institute for cancer research & development(1941) 3. Tata institute of fundamental research (1945) 4. national centre for the performing arts (1980) 5. Centre for advancement of philanthropy - Setting up of India 1st helpline for drug addicts(1989)
Ratan tata trust - Worked for women from lower income groups - Contribution to homeless, hospitals, outpatient dispensaries, village schools, blind schools The Lady Tata Memorial trust (1932) - Huge contributions for research work on Leukaemia - Helped women for higher education
-
-
JRD Tata Trust (1944) Advancement for learning & relief of human suffering Jamshethji Tata Trust (1974) To assist innovative projects Rehabilitation of the blind, helping aged
The Homi Bhabha fellowship Council(1966) - Scholarships for promotion of excellence in any field of endeavor
ENVIRONMENT
"Our real contribution, on the environment front and on the entire corporate responsibility issue, is being socially responsible, and that means doing much more than staying on the right side of the law to make money."
-
Provides special emphasis on environmental and ecological issues TATA Council for community initiatives Adherence to procedures laid by Global Reporting Initiative (GRI) Some initiatives : recycling and resource conservation projects Saving of white sharks (Tata chemicals) safeguarding the incredibly rich flora and fauna in and around Munnar, Kerala use recyclable and biodegradable packing material
Creation of wealth for themselves or for nation?
“the wealth gathered by Jamshethji Tata & his sons on behalf of century of industrial pioneering formed but a minute fraction of the amount by which they enriched the nation. The whole of the wealth is held in trust or the people and used exclusively for their benefit. The cycle is thus complete; what comes from the people has gone back to the people many times over.” Always criticised by saying ‘growth in Tata’s assets increases the concentration
-
Established all basis industries Provided basic industrial infrastructure Answered reasons for increased capital Govt. resistance for withdrawal of important projects, resulted in loss to nation not to TATA Scheme on Fertilizer complex Production of foreign cars
Keynote from book written by JRD Tata in 1986 “my one sorrow and regret is that the govt. had from Jawaharlal Nehru onwards and at least couple of years ago, not allowed many of us imbued with enthusiasm & hope to do enough……” What concentration of economic power or control means? Today also large share of Tata’s capital assigned to public causes through the creation public charitable trusts It is said that “ profit earned by TATA’s from the people go back to people many times over”
“ HAVE TATAS AS A HOUSE & A FAMILY TAKEN MORE OUT OF THE NATION THAN THEY HAVE GIVEN? OR HAVE THEY CONTRIBUTED MORE THAN WHAT THEY HAVE RECEIVED?”
Hindustan Unilever Limited HUL’s Corporate purpose “ The Highest standard of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact”
CSR at HUL
Community Initiatives – Disability. Ankur – ( seeding) Started for Handicapped children Aim was to provide special education,services to children. Kappagam – ( shelter) Same as Ankur
Special Education & rehabilatation Asha Dhan Supported Mother Teresa, Missionaries. Mother Teresa’s Mission – Serve poorest of poor Helped abandoned, challenged and HIV patients.
School contact Programme
Offered Donation to build auditorium,library,purchase computers.
Organised workshop for teacher to train them.
Disaster relief – Rebuilding Lives
Reconstructed a village in Kachch District.
Provided with School, Playground, community center.
Renamed as “ yashodadham”
Lifebuoy Swasthya Chetana Single largest rural health, hygiene programme. To educate people about basic Hygienic habits. Covered 15000 villages,8 states and 70 million people.
Health and Hygiene Education Lifebuoy Lifeline Express For people who are cannot afford services of Doctor. “Hospital on Rails.”
“Project Shakti”
Objective is to To create income generating capabilities for underprivileged rural woman by providing a sustainable micro enterprises opportunity To improve rural living standard through health and hygiene awareness. Shakti is pioneering effort in creating livelihood for rural woman.
Typically woman receives stock at her door step from distributor Each entrepreneur services 6 – 10 villages with 4 to 5 brand. This gives woman a steady business which gives her an income in excess of Rs. 1000 This helped in making changes in woman’s status.
The Vision
HUL envision the creation of 1,00,000 Shakti Entrepreneur covering 5,00,000 villages and touching the lives of 600 million rural people by year 2010
ITC Profile • ITC is one of India's foremost
private sector companies
• ITC has a diversified presence • Nation-oriented organization
ITC's CSR initiatives
e-Choupal
Integrated Watershed Development
Women's Empowerment
Primary Education
Livestock Development
e-Choupal
How it started?
ITC's International Business Division (IBD)
Realized that there were numerous constraints
Agricultural information was incomplete or inconsistent.
Implementation
Introduced in the year 2000 Began with the soyabean farmers Sets up kiosks in villages Information can be obtained by the farmers through the kiosk free of cost ITC initially placed e-Choupals in villages that are within a ten to fifteen kilometer radius of a city. ITC procurement center is a professionally run operation Designed a hardware solution
DEVELOPMENT BENEFIT
Farmers have more control over their choices
Increases trust and fairness
Direct supply chain to ITC
Integrated watershed development
Two critical objectives:
Water conservation and
Soil enrichment
Women empowerment
Economic empowerment of women transforms them into powerful agents of social change
Organized village women into micro-credit groups
Provides training to group members to handle bank accounts
Venture funds provided
Primary education
Aimed at overcoming the lack of opportunities available to the poor
Financed the establishment of Supplementary Learning Centres and teacher training programmes
Organizes summer camps
Livestock Development Assisting
farmers to cross-breed their low milk-yielding cattle with highyielding breeds.
Argument against CSR
Loss of Profit Maximization
Cost
Lack of skills
Dilution of Purpose
Lack of broad support
Lack of accountability
Argument for CSR
Public expenditure
Long Run Viability
Public Image
Better Environment
Avoidance of government regulation
Balance of Responsibility and Power
Let Business Try
Business has the resources
Problems can become profit
Prevention is better than cure
Shareholder Interest
KEY LESSONS
“Corporate Social Responsibility is not a Charity”
Large corporation can play a major role
Key role of information technology
Corporate + Social =
Responsibility
03 30 35 44
CORPORATE SOCIAL RESPONSIBILITY
Business is social function.
Business innovates new product.
It exploits natural, human resources.
Shareholder
Society at Large
Social Responsibility
Customer
Employee
Responsibility towards Shareholders
Ethical Mandate of Business is to increase shareholder’s profit.
Responsibility Towards Employee Fair Treatment No discrimination. Fair Wages. Healthy & safety working Environment. Proper recognition, appreciation. Proper Training development.
Responsibility Towards Consumer Products with Quality. New Innovative products. Reasonable Price of Product. After sale service. Ensuring that product doesn’t have adverse effect. To hear and redress the grievance of customer.
Responsibility Towards Community To prevent Ecological imbalance. Contributing to R & D Development of Backward areas Development of region in which they are operating. Developing alternatives for scarce resources.
Gandhian Philosophy of Trusteeship
Based on “Sarvodaya” Principle.
Manager and Labor should supplement each other’s work.
Investment in employee increases productivity. Social Responsibility imparts Loyalty,sale,profit. CSR used to gain strategic advantage,market share. It is not one time activity but ongoing process.
TATA -
Established by Jamshethji Tata in the second half of the 19th century one of India's biggest and most respected business organisations 3 Main things in jamshethji which hepled TATA to born and grow: His entrepreneurial vision commitment to ideals that put people before profits fortitude in the face of adversity
Tata Group comprises 98 operating companies in seven business sectors information systems and communications; engineering; materials; services; energy; consumer products; and chemicals revenues in 2006-07 of $28.8 billion (Rs129,994 crore), the equivalent of about 3.2 per cent of the country's GDP, and a market capitalisation of $65.32 billion as on February 7, 2008 operations in more than 80 countries across six continents, and its companies export products and services to 85 countries. five core values: integrity, understanding, excellence, unity and responsibility
EMPLOYEES
Created sense of loyalty Well known political personalities were involved Failure of union leaders Threat of losing control over workforce 1st post war meeting of ILO’s Iron & Steel Committee Created sense of belonging
Apprenticeship Pioneer of apprenticeship Object : to inspire trainees to attain standard of excellence Sir Dorab Tata’s initiatives: Institute of metallurgical technology, 1921 Created future workforce for the country Apprentices created standards of excellence outside their field as well
Planting Men “If you want to plan for a year, plant corn; if you want to plan for 30years, plant a tree; but if you want to plan for 100 years, plant men” One of Tata’s small component supplier about TATA: “ whenever I am short of funds I ask them and that very day I get my payments. I also supply parts to another factory but I feel shy of asking them, but to TELCO I go freely. They have given me izzat (dignity) in the way they have treated me.” Encouragement to retired people and family members of the staff
Development of villages Jamshedpur development Invitation to Sydney and Beatrice Webb for planning purpose appointment of A.V.Thakkar for execution of plan - Elimination of middlemen - Removal of Pathan money lenders
Adoption of concept of social services 1st to start Urban Community development Programme 1st company to have social Audit for its activities Setting up co-operative society at ‘Bhalubasa’
-
-
The Devapur Project 1952, professor D.R.Gadgil Area of incessant wind and dust, no facilities of school, medicine, roads, clean drinking water, scanty rain Different measures implemented Positive results achieved
Assessment report on project ‘ notwithstanding the few qualitative deficiencies that might exist, the Devapur Project is an oasis in the famine tract of Maharashtra’
Relief to distress
1934 – earthquake at Monghyr World war II – contribution to lord mayors fund in London – for people displaced by war & to refugee organizations 1967 – earthquake at Koyna 1975 – flood in Patna 1979 – Morvi flood 1977 – cyclone in Andhra
Institutions -
TATA INSTITUTION OF FUNDAENTAL RESEARCH Born due to vision of Dr. Homi Bhabha Research and contributions used not only by India but foreign countries Major programmes for control of mouth cancer
TATA INSTITUTE OF CANCER RESEARCH AND DEVELOPMENT - Findings on proposal with help of Dr. John Spies - 1941, 1st cancer hospital - Creation of culture - ‘The cost can be estimated but not the value of investment. For who can measure the joy in the heart of the wife or a mother to see her loved one & the bread-winner recover & return home?’
TATA INSTITUTE OF SOCIAL SCIENCES - 1ST activity undertaken at the time IndiaPakistan partition - 1st project of Sir Darobji Tata Trust, on recommendations of American social worker Dr. Clifford Manshardt - “an outstanding scholastic institution. It will seek to make men are at present willing to do social work, actually competent to do social work” - Some achievements like 1st labor welfare officer, set up of 1st child guidance clinic, different projects for children's, women. Tribal & rural development
TATA TRUSTS
concept of “TRUSTEESHIP” By product of Jamshethji Tata & his sons Aim to pitch folk India among great industrial nations Trusts : 1.Sir Ratan Tata trust (1918) & Sir Dorab Tata trust (1932) Worked in non-biased nature
Sir Dorabji Tata trust - Provided funds for learning & relief of distress - Established major institutions 1. Tata Institute of Social sciences(1936) 2. Tata institute for cancer research & development(1941) 3. Tata institute of fundamental research (1945) 4. national centre for the performing arts (1980) 5. Centre for advancement of philanthropy - Setting up of India 1st helpline for drug addicts(1989)
Ratan tata trust - Worked for women from lower income groups - Contribution to homeless, hospitals, outpatient dispensaries, village schools, blind schools The Lady Tata Memorial trust (1932) - Huge contributions for research work on Leukaemia - Helped women for higher education
-
-
JRD Tata Trust (1944) Advancement for learning & relief of human suffering Jamshethji Tata Trust (1974) To assist innovative projects Rehabilitation of the blind, helping aged
The Homi Bhabha fellowship Council(1966) - Scholarships for promotion of excellence in any field of endeavor
ENVIRONMENT
"Our real contribution, on the environment front and on the entire corporate responsibility issue, is being socially responsible, and that means doing much more than staying on the right side of the law to make money."
-
Provides special emphasis on environmental and ecological issues TATA Council for community initiatives Adherence to procedures laid by Global Reporting Initiative (GRI) Some initiatives : recycling and resource conservation projects Saving of white sharks (Tata chemicals) safeguarding the incredibly rich flora and fauna in and around Munnar, Kerala use recyclable and biodegradable packing material
Creation of wealth for themselves or for nation?
“the wealth gathered by Jamshethji Tata & his sons on behalf of century of industrial pioneering formed but a minute fraction of the amount by which they enriched the nation. The whole of the wealth is held in trust or the people and used exclusively for their benefit. The cycle is thus complete; what comes from the people has gone back to the people many times over.” Always criticised by saying ‘growth in Tata’s assets increases the concentration
-
Established all basis industries Provided basic industrial infrastructure Answered reasons for increased capital Govt. resistance for withdrawal of important projects, resulted in loss to nation not to TATA Scheme on Fertilizer complex Production of foreign cars
Keynote from book written by JRD Tata in 1986 “my one sorrow and regret is that the govt. had from Jawaharlal Nehru onwards and at least couple of years ago, not allowed many of us imbued with enthusiasm & hope to do enough……” What concentration of economic power or control means? Today also large share of Tata’s capital assigned to public causes through the creation public charitable trusts It is said that “ profit earned by TATA’s from the people go back to people many times over”
“ HAVE TATAS AS A HOUSE & A FAMILY TAKEN MORE OUT OF THE NATION THAN THEY HAVE GIVEN? OR HAVE THEY CONTRIBUTED MORE THAN WHAT THEY HAVE RECEIVED?”
Hindustan Unilever Limited HUL’s Corporate purpose “ The Highest standard of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact”
CSR at HUL
Community Initiatives – Disability. Ankur – ( seeding) Started for Handicapped children Aim was to provide special education,services to children. Kappagam – ( shelter) Same as Ankur
Special Education & rehabilatation Asha Dhan Supported Mother Teresa, Missionaries. Mother Teresa’s Mission – Serve poorest of poor Helped abandoned, challenged and HIV patients.
School contact Programme
Offered Donation to build auditorium,library,purchase computers.
Organised workshop for teacher to train them.
Disaster relief – Rebuilding Lives
Reconstructed a village in Kachch District.
Provided with School, Playground, community center.
Renamed as “ yashodadham”
Lifebuoy Swasthya Chetana Single largest rural health, hygiene programme. To educate people about basic Hygienic habits. Covered 15000 villages,8 states and 70 million people.
Health and Hygiene Education Lifebuoy Lifeline Express For people who are cannot afford services of Doctor. “Hospital on Rails.”
“Project Shakti”
Objective is to To create income generating capabilities for underprivileged rural woman by providing a sustainable micro enterprises opportunity To improve rural living standard through health and hygiene awareness. Shakti is pioneering effort in creating livelihood for rural woman.
Typically woman receives stock at her door step from distributor Each entrepreneur services 6 – 10 villages with 4 to 5 brand. This gives woman a steady business which gives her an income in excess of Rs. 1000 This helped in making changes in woman’s status.
The Vision
HUL envision the creation of 1,00,000 Shakti Entrepreneur covering 5,00,000 villages and touching the lives of 600 million rural people by year 2010
ITC Profile • ITC is one of India's foremost
private sector companies
• ITC has a diversified presence • Nation-oriented organization
ITC's CSR initiatives
e-Choupal
Integrated Watershed Development
Women's Empowerment
Primary Education
Livestock Development
e-Choupal
How it started?
ITC's International Business Division (IBD)
Realized that there were numerous constraints
Agricultural information was incomplete or inconsistent.
Implementation
Introduced in the year 2000 Began with the soyabean farmers Sets up kiosks in villages Information can be obtained by the farmers through the kiosk free of cost ITC initially placed e-Choupals in villages that are within a ten to fifteen kilometer radius of a city. ITC procurement center is a professionally run operation Designed a hardware solution
DEVELOPMENT BENEFIT
Farmers have more control over their choices
Increases trust and fairness
Direct supply chain to ITC
Integrated watershed development
Two critical objectives:
Water conservation and
Soil enrichment
Women empowerment
Economic empowerment of women transforms them into powerful agents of social change
Organized village women into micro-credit groups
Provides training to group members to handle bank accounts
Venture funds provided
Primary education
Aimed at overcoming the lack of opportunities available to the poor
Financed the establishment of Supplementary Learning Centres and teacher training programmes
Organizes summer camps
Livestock Development Assisting
farmers to cross-breed their low milk-yielding cattle with highyielding breeds.
Argument against CSR
Loss of Profit Maximization
Cost
Lack of skills
Dilution of Purpose
Lack of broad support
Lack of accountability
Argument for CSR
Public expenditure
Long Run Viability
Public Image
Better Environment
Avoidance of government regulation
Balance of Responsibility and Power
Let Business Try
Business has the resources
Problems can become profit
Prevention is better than cure
Shareholder Interest
KEY LESSONS
“Corporate Social Responsibility is not a Charity”
Large corporation can play a major role
Key role of information technology
Corporate + Social =
Responsibility
