Corporrate Social Responsibilty

8/8/2019 Corporrate Social Responsibilty

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-Chandan Priyadarshi

-Parvez Rangwala

-Sainatth Wagh

-Shagoon Panda

-Sudhish Warrier



I think many people assume, wrongly, that a company existssimply to make money. While this is an important result of acompanys existence, we have to go deeper and find the realreasons for our being. As we investigate this, we inevitably

come to the conclusion that a group of people get togetherand exist as an institution that we call a company so thatthey are able to accomplish something collectively that theycould not accomplish separately they make a contributionto society, a phrase which sounds trite but is fundamental.

- Dave Packard

Co-founder of Hewlett Packard , 1939



CSR = Corporate + Social + Responsibility

Analyzing the inter-dependent relationshipsbetween businesses and economic systems,and the communities

Involves a business identifying its stakeholdergroups and incorporating their needs and

values within the strategic and day-to-daydecision-making process.

A much more holistic approach to business

CSR ????



What it is not?

Not a legal or regulatory obligations

individuals and corporations face.

Not about pursuing the CEOs pet interest and

saving the whales

Should be distinguished from concepts such

as strategic philosophy and cause-relatedmarketing



Why CSR?

profit

Society

Infrastructure

inter-dependence and a meansof delivering

Moral

holistic approach

real point of differentiation andcompetitive market advantage

Examples: corporate governance,patriotism, fair trade diversity inthe workplace.

Economical



Triple bottom line by

John Elkingston

People

Planet

Profit



IS CSR Relevant???

YES



Significance of CSR

CSR

IncreasingAffluence

ChangingSocial

Expectations

Globalizationand FreeFlow of

Information



Steps to implement CSR

Ensure commitment from top management and keep CEO

informed throughout the communication.

Appoint CSR strategic decision making level to manage all the

CSR activity. Develop relationships with stakeholder groups and interests(

specially NGOs).

Incorporate Social or CSR audit within companys annual

report.

Any anonymous feedback will ideally help to improve CSR

activities more efficiently.



Key Motivators



Contd

National Drivers DescriptionCultural tradition CSR often draws strongly on deep-rooted

indigenous cultural traditions of charity, business

ethics.

Political reform CSR cannot be divorced from the socio-political

policy reform process, which often drives business

behaviour towards integrating social and ethical

issues.Governance gaps CSR helps to provide all the social services which

are not done due to government lethargy

Crisis response CSR responses can be catalysed by economic,

social, environmental, health-related or industrial

crises.

Market access CSR may be seen as a bridge for companies indeveloping countries trying to access markets in

the developed world.



Contd

International Drivers DescriptionInternational Standardization CSR codes, guidelines and standards are a

key driver for companies wishing to

operate as global players.

Investment Incentives CSR is given an incentive by trend of Socially

Responsible Investment, where funds are screenon ethical and environmental criteria

Stakeholders Activism CSR is often encouraged by the activism of

stakeholder, to address the perceived failure of

market and government policy.



KarmayogCSR Ratings

K armayog is the Convenor of the NGO Council, which has an MoU with BMC

to collaborate on civic issues. It also partners with the Anti-CorruptionBureau in a "Mumbai - Pact Against Corruption" Program.

K armayog is a free platform for the Indian nonprofit sector & for

addressing civic issues in Mumbai.Formed on August 22, 2005.

The basic premise of K armayog to rate the companies on their CSR activityare:

The steps taken by the organization to minimize the harmful effects causedby its process or product usage.

The extra step taken for the benefit of the people and environment.



Contd..

The three mandatory recommendations flowing from the premise that every company must do CSR and these are:

A company must spend 0.2% of its annual sales on CSR.

A company must publish its CSR activities in annual report or in

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 linkCSR to its physical location and reach.



Importance of rating to stakeholders

To get a snapshot of state of CSR in India.

To set benchmarks for companies to follow.

To highlight best practices of CSR.

To work with government and NGO for the betterment of society.

To recognize companies doing good CSR activities by awardingthem.



Advantages

Balances corporate power with responsibility.

Promotes long term profit

Corrects social problems caused due to business.

Discourages government regulation. Responds to changing stakeholders demands.

It differentiates the company from its competitor

and can be a source of competitive advantage. It aids the attraction and retention of staff



Disadvantages

Excessive Costs.

Managers have no right to give away the money

of owners.

Directors have a legal obligation to manage thecompany in the interest of the shareholders-and not

for other stakeholders

To attract quality workers it is necessary to offer

better pay and conditions and this leads to a risein standards of living and wealth creation.

Costs will be passed on to customers.



Indian Context

CSR in India is in a very nascent stage

Reasons - A lack of understanding,

inadequately trained personnel, nonavailability of authentic data and specific

information on the kinds of CSR activities,

policy etc. further adds to the non-reach and

ineffectiveness of CSR programmes.

But situation is changing.



CSR for PSU in India

The Department of Public Enterprises (DPE) is in the

final stage of preparing guidelines for the central

public sector enterprises (CPSEs) to take up

important CSR projects.

Those earning net profit of more than Rs 100 crores

may be asked to contribute up to 2% of the amount.

The obligations of CSR activities would be set in theMemorandum of Understanding, which sets targets

for an individual CPSE detailed Business Standard

link



CSR for PSU in Indiacontd

The PTI reports on Feb 10,2010, that CSR of PSUs

may be funded by 2-5% of net profit

This fact can be applied to an example of Ministry of

Steel announcement on 29th March,2010 and thethrust can be further reinstated by this article click

here

The Ministry advised the PSUs to undertake a benefit

analysis and impact of the CSR programmes

conducted during the year 2008-09 for better focus

in future.



Some Examples Infosys Healthcare , Social Rehabilitation

and Rural Upliftment, Cancer Institue

Wipro Olcott Memorial School in

Besantnagar, ICICI ICICI Foundation

Microsoft - Shiksha

ITC E Choupal Mahindra Nanhi Kali

HUL Shakti



ITC

ITC-Welcomgroup has employed persons with

disabilities (PWD)

Improved Access Audits

Making things easier for the PWD

Empowering them by ingraining confidence

through training programs.



Business Case

They have been able to widen the pool of recruits,

which is especially useful where the skill pool is

limited or employees are in short supply.

Disabled people are as productive and reliable asother employees

Disabled people in work tend to have better

attendance records, stay with employers longer

and have fewer accidents at work.

Most only require minimal and very basic

adjustments at work.



Business Casecontd

Staff morale and team development are enhancedwhen businesses are seen to be equal opportunity

employers.

They have been able to retain employees valuable

skills, experience and expertise within theorganisation.

Organisations accessible to disabled customers are

more accessible and appealing to all consumers and

stake holders.

Improves the public image of the organisation by

showing that, apart from economical benefits, it also

pursues social objectives.



Making it Work

STEP 1

± Skill Matching Identifying suitable jobs

± Skills Charting/

Skill Matrix

STEP 2

± Recruitment Policy



STEP 3

± The Selection Process

± Application Forms

STEP 4

Shortlisting

Interview

Making it Work



WORKPLACE ADJUSTMENTS

Working arrangements Telecon, videocon,

work from home or cut down health impact

on traveling.

Working hours

Equipment and personal assistance through to

major alterations to the building.



Mahindra & Mahindra Ltd

Income 2005-2006 =Rs 7000 crores (rounded

off)

Net profit before tax (05-06)= Rs 500 crores

(rounded off)

Contribution to CSR - In 2005, it pledged to

dedicate 1% of its profit (after tax), on a

continuous basis towards Corporate SocialResponsibility.

Karmayog CSR Rating :3/5



CSR Activities of Mahindra

A unique kind of ESOPs

To provide free cochlear implants to 60

profoundly hearing-impaired, under-privilegedchildren.

Impetus to the Nanhi Kali project for the girlchild and the Mahindra All India Talent

Scholarship for the economicallydisadvantaged - they plan to set up twoMahindra Pride Schools.



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 in India througheducation, by providing financial assistance and recognition to them,across age groups and across income strata.

Mahindra Academy ± Mahindra Academy at

Malad in Mumbai, Mahindra Academy in Zaheerabad and a school inKhopoli.The establishment of these schools has not just benefitedtheir employees but also the community around these schools.

Disaster Relief - Mahindra Foundation

Environmental relief Transformed 3 MunicipalGardens ± The Shivaji Garden (near Gateway of India)

± The Traffic Island Garden (opposite Regal Cinema)

± Garden near Madame Cama Road, to the south of Oval Maidan.



C.S.R During Recession

Companies can contribute to society with cash orproducts, giving away grants, goods, or their services

to schools, homeless shelters, hospitals etc.

Second, companies can focus their CSR on community

involvement, by supporting employees who mentorstudents or volunteer for a myriad of causes.

And third, companies can put CSR into their product

and service strategies, focusing on green initiatives, forinstance, or factoring environmental concerns into

their manufacturing processes.



Contd.Build brand through total wealth creation:

Develop your brand based on maximizing the

wealth of all stakeholders through effective

community investment and pro-poor development

projects, to foster respect for the brand during aperiod of financial hardship.

Become more strategic : Making the economic case

for CSR investment will be more important thanever. Projects should be able to demonstrate clear

returns and value for money.



Contd.

Develop environmental projects focusing oneconomic exclusion: Letting environmental issues

slip in the face of other priorities is not the answer;

instead, environmental projects should seek to be

more inclusive or target economically deprived

areas.

Partner more effectively : increasing government

involvement can ease project funding demands and

help fit better into integrated national strategies.



Future Scope

T

he following five key megatrends highlight whythe business case for CSR will continue to grow:

Globalisation Global business, local CSR

Companies that lead the field in CSR often have a

competitive advantage over their rivals; in an

increasingly moral economy product features like

fair trade can be a powerful value-adding feature.



Contd.New consumption patterns:

Over the past years consumption has changeddramatically. Environmental awareness, rising healthconcerns, and a widespread call for efficiency havefostered consumers that long for more sustainable and

healthy lifestyle.

Changes in the world of work winning the war fortalent : The worldwide war for talent will continue to

expand. The modern worker is much more mobile, andqualified workers are increasingly scarce. Companiesmust provide the right incentives to retain and attractemployees.



Contd.Energy and resources Towards sustainable

business: Until 2030, global energy demand ispredicted to grow by 55 percent. At the same timethe amount of available resources will continue todecline. By 2025, the number of people living withextreme water scarcity will rise to a quarter of theworlds population.

Climate change and environmental pollution Finding solutions : Climate change is perhaps thebiggest social, economic and environmentalchallenge facing the planet.



Thank You !!

Corporrate Social Responsibilty

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