Csr Project on Insurance

CSR BY INSURANCE COMPANIES

EXECUTIVE SUMMARY

Corporate Social Responsibility is achieving commercial success in ways that

honor ethical values and respect people, communities and the natural

environment.”

This project shows the positive outlook of Indian insurance companies towards

CSR. With more and more companies taking initiatives for betterment of the

society.

The law on mandatory CSR has already made its impact and it's heartening to see

that a large percentage of insurance companies are leveraging their internal

expertise in trying to make a positive social impact and some are even

transforming their product and services to account for social and environmental

factors.

However, as with any research, it's hard to know whether what the companies

claim and what they action are necessarily the same thing.

This project shows who the leading stars are in the Indian CSR space in the

insurance sector. The study shows the polices adopted by insurance companies in

relation to their corporate social responsibility.

But companies still have a long way to go in terms of disclosure, stakeholder

engagement and sustainability.

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RESEARCH METHODOLOGY

Objective of the study

This project has been conducted with a variety of important objectives in mind.

The objectives of doing this project are:

To study the concept of Corporate Social Responsibility by Insurance

companies.

To evaluate the different methods of Corporate Social Responsibility.

To analyze the various activities of insurance company.

To know major players of insurance sector involved in Corporate Social

Responsibility.

Sources of data

Primary data:

Primary data is the data which is collected from the surveys, personal

interactions, etc.

Secondary data:

The secondary data is the data which is collected from books, periodicals,

newspapers, magazines, articles, etc.

The contents of this project are purely based on secondary data. The data is

gathered from various sources like various websites, periodicals and reference

books.

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LIMITATIONS OF THE STUDY

The time given for preparing the project was limited to cover the topic in full detail.

University has imposed limitations on maximum pages due to which every topic cannot be explained in full detail otherwise more concepts of this topic would have been elaborated.

We do have much information on insurance but the practical functionality

has not been experienced. So the project is more based on theoretical concepts as compared to practical implementations of the concepts.

The actual effect on the society of the Corporate Social Responsibility By Insurance Companies cannot be measured.

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INTRODUCTION OF INSURANCE

Insurance is form of the contract between insurer and insured. Insurance is the

equitable transfer of the risk of a loss, from one entity to another in exchange for

payment. It is a form of risk management primarily used to hedge against the risk of a

contingent, uncertain loss. An insure r, or insurance carrier, is a company selling the

insurance; the insured, or policyholder, is the person or entity buying the insurance

policy. The amount of money to be charged for a certain amount of insurance

coverage is called the premium. Risk management, the practice of appraising and controlling

risk, has evolved as a discrete field of study and practice. The transaction involves

the insured assuming a guaranteed and known relatively small loss in the form of

payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the

insured in the case of a financial (personal) loss. The insured receives a contract,

called the insurance policy, which details the conditions and circumstances under

which the insured will be financially compensated.

Insurance involves pooling funds from many insured entities (known as exposures)

to pay for the losses that some may incur. The insured entities are therefore protected from

risk for a fee, with the fee being dependent upon the frequency and severity of the event

occurring. In order to be an insurable risk, the risk insured against must meet certain

characteristics. Insurance as a financial intermediary is a commercial enterprise and

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a major part of the financial services industry, but individual entities can insure

through saving money for possible future losses.

Insurance allows individuals, businesses and other entities to protect themselves

against significant potential losses and financial hardship at a reasonably

affordable rate.

Insurance is appropriate when you want to protect against a significant monetary

loss. If the potential loss will have a detrimental effect on the person or entity,

insurance makes sense.

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OVERVIEW OF INSURANCE INDUSTRY

The insurance industry of India consists of 52 insurance companies of which 24 are

in life insurance business and 28 are non-life insurers. Among the life insurers,

Life Insurance Corporation (LIC) is the sole public sector company. Apart from

that, among the non-life insurers there are six public sector insurers. In addition to

these, there is sole national re-insurer, namely, General Insurance Corporation of

India. Other stakeholders in Indian Insurance market include agents (individual and

corporate), brokers, surveyors and third party administrators servicing health

insurance claims.

Out of 28 non-life insurance companies, five private sector insurers are registered

to underwrite policies exclusively in health, personal accident and travel insurance

segments. They are Star Health and Allied Insurance Company Ltd, Apollo

Munich Health Insurance Company Ltd, Max Bupa Health Insurance Company

Ltd, Religare Health Insurance Company Ltd and Cigna TTK Health Insurance

Company Ltd. There are two more specialized insurers belonging to public sector,

namely, Export Credit Guarantee Corporation of India for Credit Insurance and

Agriculture Insurance Company Ltd for crop insurance.

The insurance industry has also seen its reputation tarnished by scandal. AIG was

accused of bid rigging, accepting contingent commissions and reporting

misleading financial figures. The Equitable Life scandal in Great Britain caused

thousands of policyholders who invested in annuities to lose billions. There was

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the collapse of HIH Insurance, a failure caused by under pricing, reserve problems,

false reports, reckless management, incompetence, fraud and greed.

Cases like these have left the impression that unethical behavior is characteristic of

the industry. Unfavorable media coverage has shaken stakeholder confidence and

raised suspicion.

The insurance industry’s reputation suffered a setback from the global financial

crisis. Although most insurers were relatively unscathed compared to the banking

sector, some leading insurers, such as AIG, Fortis (a Belgian insurance group) and

Argenta (a Lloyd’s of London syndicate), were let down by their non-insurance

operations. Despite the performance of the industry on the whole, trust in insurers

deteriorated.

During a crisis, an insurer needs to demonstrate that it is more than just a profit-

generating, abstract entity. It is important for insurers to emphasize the vital role

they play in economic and societal development. CSR measures implemented in

good times—and in bad—will improve the industry’s reputation and reinforce

stakeholder relationships. These two outcomes, in turn, can increase loyalty and

sales.

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INTRODUCTION TO CSR

The roots of CSR lie in philanthropic activities (such as donations, charity, relief

work, etc.) of corporations, globally, the concept of CSR has evolved and now

encompasses all related concepts such as triple bottom line, corporate citizenship,

philanthropy, strategic philanthropy, shared value, corporate sustainability and

business responsibility.

Corporate social responsibility (CSR) refers to a business practice that involves

participating in initiatives that benefit society

"Sustainability isn't just important for people and the planet, but also is vital for

business success," said Maw. "Communities are grappling with problems that are

global in scope and structurally multifaceted — Ebola, persistent poverty, climate

change. The business case for engaging in corporate social responsibility is clear

and unmistakable. Billions are at stake if fast and large-scale action is not taken."

As consumers' awareness about global social issues continues to grow, so does the

importance these customers place on CSR when choosing where to shop.

"Technology has brought global connectivity and enabled advocacy and awareness

for social situations that were once obscure," said Alexis Magnan-Callaway, whose

fashion company Pax Cult donates 10 percent of its profits to an organization of

the customer's choice. "Millennials are redefining what it means to connect and

give back through this technology. It's not just about having a recycling program or

sustainable products. People want to feel good about what their dollar is doing."

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http://paxcult.com/


A company's CSR strategy is a big factor in where today's top talent chooses to

work.

"The next generation of employees is seeking out employers that are focused on

the triple bottom line: people, planet and revenue," Cooney told Business News

Daily.

“Corporate Social Responsibility is an integrated combination of policies,

programs, education and practices which extend throughout a corporation’s

operations and into the communities in which they operate.”

“Corporate Social Responsibility is the continuing commitment by business to

behave ethically and contribute to economic development while improving the

quality of life of the workforce and their families as well as of the local community

and society at large.”

Corporate Social Responsibility is achieving commercial success in ways that

honor ethical values and respect people, communities and the natural

environment.”

Corporate Social Responsibility is a way of integrating the social, economic and

environmental imperatives of business activities. The term corporate Citizenship

denotes the expert to which business meet the legal, ethical, economic and

voluntary responsibilities placed on them by their stakeholders. It’s all about how

companies voluntarily manage the business processes to produce on overall

positive impact on society.

From the above definitions, it is clear that:

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The CSR approach is holistic and integrated with the core business strategy for

addressing social and environmental impacts of businesses.

CSR needs to address the well-being of all stakeholders and not just the company’s

shareholders.

Philanthropic activities are only a part of CSR, which otherwise constitutes a much

larger set of activities entailing strategic business benefits.

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THE PHASES OF CSR DEVELOPMENT IN INDIA

The history of CSR in India has its four phases which run parallel to India's

historical development and has resulted in different approaches towards CSR.

First Phase

In the first phase charity and philanthropy were the main drivers of CSR. Culture,

religion, family values and tradition and industrialization had an influential effect

on CSR. In the pre-industrialization period, which lasted till 1850, wealthy

merchants shared a part of their wealth with the wider society by way of setting up

temples for a religious cause. Moreover, these merchants helped the society in

getting over phases of famine and epidemics by providing food from their

godowns and money and thus securing an integral position in the society. With the

arrival of colonial rule in India from the 1850s onwards, the approach towards

CSR changed. The industrial families of the 19th century such as Tata, Godrej,

Bajaj, Modi, Birla, Singhania were strongly inclined towards economic as well as

social considerations. However it has been observed that their efforts towards

social as well as industrial development were not only driven by selfless and

religious motives but also influenced by caste groups and political objectives.

The Second Phase

In the second phase, during the independence movement, there was increased

stress on Indian Industrialists to demonstrate their dedication towards the progress

of the society. This was when Mahatma Gandhi introduced the notion of

"trusteeship", according to which the industry leaders had to manage their wealth

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http://en.wikipedia.org/wiki/Mahatma_Gandhi

http://en.wikipedia.org/wiki/Indian_independence_movement

http://en.wikipedia.org/wiki/Birla_family

http://en.wikipedia.org/wiki/Modi_Group

http://en.wikipedia.org/wiki/Bajaj_Group

http://en.wikipedia.org/wiki/Godrej_Group

http://en.wikipedia.org/wiki/Tata_Group

http://en.wikipedia.org/wiki/Industrialization

http://en.wikipedia.org/wiki/Philanthropy

http://en.wikipedia.org/wiki/Charitable_organization


so as to benefit the common man. "I desire to end capitalism almost, if not quite, as

much as the most advanced socialist. But our methods differ. My theory of

trusteeship is no make-shift, certainly no camouflage. I am confident that it will

survive all other theories." This was Gandhi's words which highlights his argument

towards his concept of "trusteeship". Gandhi's influence put pressure on various

Industrialists to act towards building the nation and its socio-economic

development. According to Gandhi, Indian companies were supposed to be the

"temples of modern India". Under his influence businesses established trusts for

schools and colleges and also helped in setting up training and scientific

institutions. The operations of the trusts were largely in line with Gandhi's reforms

which sought to abolish untouchability, encourage empowerment of women and

rural development.

The Third Phase

The third phase of CSR (1960–80) had its relation to the element of "mixed

economy", emergence of Public Sector Undertakings (PSUs) and laws relating

labour and environmental standards. During this period the private sector was

forced to take a backseat. The public sector was seen as the prime mover of

development. Because of the stringent legal rules and regulations surrounding the

activities of the private sector, the period was described as an "era of command and

control". The policy of industrial licensing, high taxes and restrictions on the

private sector led to corporate malpractices. This led to enactment of legislation

regarding corporate governance, labour and environmental issues. PSUs were set

up by the state to ensure suitable distribution of resources (wealth, food etc.) to the

needy. However the public sector was effective only to a certain limited extent.

This led to shift of expectation from the public to the private sector and their active

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http://en.wikipedia.org/wiki/Public_Sector_Undertakings

http://en.wikipedia.org/wiki/Mixed_economy

http://en.wikipedia.org/wiki/Mixed_economy


involvement in the socio-economic development of the country became absolutely

necessary. In 1965 Indian academicians, politicians and businessmen set up a

national workshop on CSR aimed at reconciliation. They emphasized upon

transparency, social accountability and regular stakeholder dialogues. In spite of

such attempts the CSR failed to catch steam.

The Fourth Phase

In the fourth phase (1980 until the present) Indian companies started abandoning

their traditional engagement with CSR and integrated it into a sustainable business

strategy. In the 1990s the first initiation towards globalization and economic

liberalization were undertaken. Controls and licensing system were partly done

away with which gave a boost to the economy the signs of which are very evident

today. Increased growth momentum of the economy helped Indian companies

grow rapidly and this made them more willing. Globalization has transformed

India into an important destination in terms of production and manufacturing bases

of TNCs are concerned. As Western markets are becoming more and more

concerned about labour and environmental standards in the developing countries,

Indian companies which export and produce goods for the developed world need to

pay a close attention to compliance with the international standards.

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http://en.wikipedia.org/wiki/Economic_liberalization

http://en.wikipedia.org/wiki/Economic_liberalization

http://en.wikipedia.org/wiki/Globalization


CURRENT STATE OF CSR IN INDIA

CSR is not a new concept in India. Ever since their inception, corporates like the

Tata Group, the Group, and Indian Oil Corporation, to name a few, have been

involved in serving the community. Through donations and charity events, many

other organizations have been doing their part for the society. The basic objective

of CSR in these days is to maximize the company's overall impact on the society

and stakeholders. CSR policies, practices and programs are being comprehensively

integrated by an increasing number of companies throughout their business

operations and processes. A growing number of corporates feel that CSR is not just

another form of indirect expense but is important for protecting the goodwill and

reputation, defending attacks and increasing business competitiveness.

Companies have specialized CSR teams that formulate policies, strategies and

goals for their CSR programs and set aside budgets to fund them. These programs

are often determined by social philosophy which have clear objectives and are well

defined and are aligned with the mainstream business. The programs are put into

practice by the employees who are crucial to this process. CSR programs ranges

from community development to development in education, environment and

healthcare etc.

For example, a more comprehensive method of development is adopted by some

corporations such as Bharat Petroleum Corporation Limited, Maruti Suzuki India

Limited. Provision of improved medical and sanitation facilities, building schools

and houses, and empowering the villagers and in process making them more self-

reliant by providing vocational training and a knowledge of business operations are

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http://en.wikipedia.org/wiki/Vocational_education

http://en.wikipedia.org/wiki/Sanitation

http://en.wikipedia.org/wiki/Maruti_Suzuki

http://en.wikipedia.org/wiki/Maruti_Suzuki

http://en.wikipedia.org/wiki/Bharat_Petroleum

http://en.wikipedia.org/wiki/Indian_Oil_Corporation

http://en.wikipedia.org/wiki/Tata_Group


the facilities that these corporations focus on. Many of the companies are helping

other peoples by providing them good standard of living.

Also, corporates increasingly joining hands with non-governmental organizations

(NGOs) and use their expertise in devising programs which address wider social

problems.

CSR has gone through many phases in India. The ability to make a significant

difference in the society and improve the overall quality of life has clearly been

proven by the corporates. Not one but all corporates should try and bring about a

change in the current social situation in India in order to have an effective and

lasting solution to the social woes. Partnerships between companies, NGOs and

the government should be facilitated so that a combination of their skills such as

expertise, strategic thinking, manpower and money to initiate extensive social

change will put the socio-economic development of India on a fast track.

TYPES OF CORPORATE SOCIAL RESPONSIBILITY

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http://en.wikipedia.org/wiki/Non-governmental_organizations


CSR can encompass a wide variety of tactics, from giving nonprofit organizations

a portion of a company's proceeds, to giving away a product or service to a worthy

recipient for every sale made. Here are a few of the broad categories of social

responsibility that businesses are practicing:

Environment: organizations are starting to focus on their carbon footprint and

look for ways in which this can be reduced. Additionally, companies are looking at

ways that their operations can be more sustainable overall for the environment, by

having a minimal impact. Some companies are now required by law in the UK to

report on their emissions of greenhouse gases. This makes it more likely than in the

past that a company would focus on environmental areas of corporate social

responsibility. One primary focus of corporate social responsibility is

the environment. Businesses, both large and small, have a large carbon footprint.

Any steps they can take to reduce those footprints are considered both good for the

company and society as a whole.

Philanthropy: Businesses also practice social responsibility by donating to

national and local charities. Whether it involves giving money or time, businesses

have a lot of resources that can benefit charities and local community programs. –

this type of corporate social responsibility is most commonly associated with

giving money to charities. Often, organizations will have specific charities that

they support, and these may be linked to their line of business. This is not always

linked to charity work however. For example, Google carries out several initiatives

in China that help to improve the prospects of people. One such example is Google

gives money to support earthquake relief efforts.

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http://www.businessnewsdaily.com/5491-how-to-start-nonprofit.html


Ethical labor practices: By treating employees fairly and ethically, companies

can also demonstrate their corporate social responsibility. This is especially true of

businesses that operate in international locations with labor laws that differ from

those in the United States. Most of the ethical corporate social responsibility

programmes out there focus on fair treatment of employees, which includes

employees that may not be directly working for the organization. What this means

is that ethical corporate social responsibility usually considers the entire supply

chain. That means that some companies that source clothes from Asia have

corporate social responsibility programmes to make sure that the people that work

to produce the clothes that they buy are treated fairly. This may include a minimum

wage or certain standards to be met in the factories. Some of this can be quite

difficult to enforce in the supply chain. Another example is that small farmers in

developing countries that supply produce such as coffee, bananas or other crops are

paid a fair price for their goods.

Ethical corporate social responsibility is not just limited to making sure that people

in less developed countries are treated fairly. It is also focused on making sure that

all stakeholders receive fair treatment. This includes employees, but also

customers, shareholders and other stakeholders that the company may impact

through its activities.

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STEPS TO ACHIEVING CORPORATE SOCIAL RESPONSIBILITY

When formulating CSR best practices, insurers should consider customers,

employees, shareholders, intermediaries, suppliers, regulators and the broader

community. The interests of these stakeholders are vast, and insurers should focus

on those that are affected by, or align with, their business operations.

Paying Valid Claims Efficiently

Paying valid claims efficiently sounds simple, but it involves more. Having the

right technology is essential, as is staff training. Insurers also need to price risks

accurately and fairly. If risks are continually underpriced, an insurer will go out of

business, which will have wide-ranging effects on all stakeholders. On the other

hand, if risks are overpriced, customers may not be able to afford adequate

coverage—and may choose not to insure at all. If most businesses and individuals

choose to bear the risk of a loss that they cannot afford to cover, this will have real

implications for the economy, as well as individuals’ health and safety. It would

also place an unbearable burden on the government to serve as a safety net.

To pay valid claims efficiently, insurers must also keep down costs. Premiums are

calculated by account for both the particular risks and operating costs required to

provide the policy. It is therefore important to minimize overhead, infrastructure

and claims-processing costs so that insurers can offer affordable insurance.

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Risk Minimization/Loss Control

. Insurers are in the business of risk analysis. They are the ones best positioned to

minimize risks—both internally in their operations and externally for their clients

and other stakeholders.

Internal risk minimization could be as simple as implementing proper policies and

procedures, such as occupational health and safety guidelines. External risk

minimization may be more difficult to employ. Appropriate strategic CSR

measures used to reduce risk externally will depend on the type of products offered

by an insurer. In general, insurers should train underwriters to look more closely at

clients’ internal decision-making processes, risk management procedures and

ethics.

Underwriting for large, risky projects or companies should entail in-depth research

on the likely sources of risk as well as more extensive screening and monitoring.

Further, insurers should be proactive in stipulating limits or requirements around

insurance for projects that may impact human rights.

External risk minimization should reduce claims costs and frequency for clients,

and insured's will thus be incentivized to reduce the likelihood and severity of loss

in order to lower their premiums. Insurers should, and often do, consider offering

discounted premiums to insured’s that take preventative measures. For example,

discounts are offered to households that install security systems.

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Strategic Philanthropy

Strategic philanthropy involves partnering with charities or organizations in the

community for a mutually beneficial purpose. This type of corporate giving can not

only impact the community but also other stakeholders in the business.

QBE has set up a foundation that aims to drive employee engagement. Through

the program, employees are able to apply for local grants for charities that they

personally support. Employees can also get involved in the community through

paid volunteer leave, and the foundation has promised to match employees’

charitable contributions and fundraising efforts.

Another form of philanthropy relevant for insurers is disaster relief. Following the

recent Queensland floods, for example, Suncorp donated AU$100,000 to the

Queensland premier’s “disaster relief appeal” and set up customer response teams

in remote locations to assist as many customers as it could. Further, Suncorp

provided employees affected by the floods with a range of services including

professional counseling, financial recovery packages and hardship grants.

There are many other projects insurers could support that are a form of strategic

philanthropy. Those that decrease crime or improve safety are particularly

valuable, as they not only support the participants but create safer communities,

which have lower claims costs than dangerous areas.

LAG focused its strategic philanthropy on a partnership with St. John Ambulance

to help stakeholders improve their safety and reduce injuries.

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Recognition for Human Rights

Studies show that few companies have taken steps to implement human rights

policies.

Companies that show enthusiasm for observing voluntary human rights codes of

conduct usually operate in a business with the potential to considerably impact

human rights; the majority of their work may be done in developing countries, for

example. These companies also tend to have high-profile brand names that they

wish to protect, and for that reason they can be more easily pressured into action

by civil society.

Human rights are still an important consideration because insurance permeates

many facets of everyday life. It is particularly relevant for corporations operating

globally or those that may be considering outsourcing (or moving) services to

countries with lesser human rights protections.

Many organizations have created initiatives to encourage companies to respect

human rights and hold corporations liable for violations. One of the most notable is

the “U.N. Guiding Principles on Business and Human Rights,” developed by

Harvard professor John Ruggie and endorsed by the United Nations in June 2011.

These principles provide a useful reference for insurers. Ruggie explains that “to

respect rights essentially means not to infringe on the rights of others—put simply,

to do no harm.” The key operational element is to conduct due diligence to

“become aware of, prevent and address adverse human rights impacts.” This

process involves making policy commitments to human rights, undertaking

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“periodic assessments on the actual and potential impact of business operations on

human rights, integrating the process into decision making and the tracking of

performance.” The principles also recommend that corporations develop a means

to hold themselves accountable and to provide for remediation through grievance

or other mechanisms.

Socially Responsible Investment

Socially responsible investment describes the process of including non-financial

criteria—environmental, social and governance considerations—in decision

making. Institutional investors, such as insurers, are in a powerful position in that

they are able to encourage positive change in investment strategies.

With issues such as global warming, child labor and other human rights violations

becoming more prominent in investors’ minds.

A positive correlation between social, environmental and ethical issues, and long-

term shareholder value is a prerequisite for socially responsible investment to

thrive. Some studies show a positive relationship between CSR and financial

performance.

There are three main strategies that socially responsible investors can use. The

first, called screening, involves selecting investment options based on social or

environmental criteria. The second strategy, shareholder activism, as its name

suggests, involves communication with the investment company through

shareholder resolutions, The third strategy, community investing.

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COMPANIES ACT RELATED TO CSR

The Ministry of Corporate Affairs has notified Section 135 and Schedule VII of the

Companies Act 2013 as well as the provisions of the Companies (Corporate Social

Responsibility Policy) Rules, 2014 to come into effect from April 1, 2014.

With effect from April 1, 2014, every company, private limited or public limited,

which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net

profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the

immediately preceding three financial years on corporate social responsibility

activities. The CSR activities should not be undertaken in the normal course of

business and must be with respect to any of the activities mentioned in Schedule

VII of the 2013 Act. Contribution to any political party is not considered to be a

CSR activity and only activities in India would be considered for computing CSR

expenditure.

The net worth, turnover and net profits are to be computed in terms of Section 198

of the 2013 Act as per the profit and loss statement prepared by the company in

terms of Section 381 (1) (a) and Section 198 of the 2013 Act. It is has been

clarified that if net profits are computed under the Companies Act, 1956 they

needn't be recomputed under the 2013 Act. Profits from any overseas branch of the

company, including those branches that are operated as a separate company would

not be included in the computation of net profits of a company. Besides, dividends

received from other companies in India which need to comply with the CSR

obligations would not be included in the computation of net profits of a company.

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http://www.business-standard.com/search?type=news&q=Csr

http://www.business-standard.com/search?type=news&q=Companies+Act+2013


The CSR Rules appear to widen the ambit for compliance obligations to include

the holding and subsidiary companies as well as foreign companies whose

branches or project offices in India fulfill the specified criteria. There is a need for

clarity with respect to the compliance obligations of a company as well as its

holding and subsidiary companies.

The activities that can be undertaken by a company to fulfill its CSR obligations

include eradicating hunger, poverty and malnutrition, promoting preventive

healthcare, promoting education and promoting gender equality, setting up homes

for women, orphans and the senior citizens, measures for reducing inequalities

faced by socially and economically backward groups, ensuring environmental

sustainability and ecological balance, animal welfare, protection of national

heritage and art and culture, measures for the benefit of armed forces veterans, war

widows and their dependents, training to promote rural, nationally recognized,

Paralympics or Olympic sports, contribution to the prime minister's national relief

fund or any other fund set up by the Central Government for socio economic

development and relief and welfare of SC, ST, OBCs, minorities and women,

contributions or funds provided to technology incubators located within academic

institutions approved by the Central Government and rural development projects.

However, preference would need to be given to local areas and the areas around

where the company operates.

To formulate and monitor the CSR policy of a company, a CSR Committee of the

Board needs to be constituted. Section 135 of the 2013 Act requires the CSR

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Committee to consist of at least three directors, including an independent director.

However, CSR Rules exempts unlisted public companies and private companies

that are not required to appoint an independent director from having an

independent director as a part of their CSR Committee and stipulates that the

Committee for a private company and a foreign company need have a minimum of

only 2 members.

A company can undertake its CSR activities through a registered trust or society, a

company established by its holding, subsidiary or associate company or otherwise,

provided that the company has specified the activities to be undertaken, the

modalities for utilization of funds as well as the reporting and monitoring

mechanism. If the entity through which the CSR activities are being undertaken is

not established by the company or its holding, subsidiary or associate company,

such entity would need to have an established track record of three years

undertaking similar activities.

Companies can also collaborate with each other for jointly undertaking CSR

activities, provided that each of the companies are able individually report on such

projects.

A company can build CSR capabilities of its personnel or implementation agencies

through institutions with established track records of at least three years, provided

that the expenditure for such activities does not exceed 5% of the total CSR

expenditure of the company in a single financial year.

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The CSR Rules specify that a company which does not satisfy the specified criteria

for a consecutive period of three financial years is not required to comply with the

CSR obligations, implying that a company not satisfying any of the specified

criteria in a subsequent financial year would still need to undertake CSR activities

unless it ceases to satisfy the specified criteria for a continuous period of three

years. This could increase the burden on small companies which do not continue to

make significant profits.

Circular No. 21/2014 clarifies:

One-off events such as marathons, awards, charitable contributions,

advertisements, sponsoring TV programs, etc. do not qualify as CSR expenditures

and should be checked against Rule 4(1) of the Companies CSR Rules, 2014.

Expenses incurred for the fulfillment of any Act/Statute do not count as CSR

expenditures.

Salaries paid to CSR staff and volunteers participating in CSR activities can be

factored into a CSR project cost as party of the CSR expenditure.

Expenditures incurred by a foreign holding company for CSR activities in India

will qualify as CSR expenditure of that company’s Indian subsidiary.

The report of the Board of Directors attached to the financial statements of the

Company would also need to include an annual report on the CSR activities of the

company in the format prescribed in the CSR Rules setting out inter alia a brief

outline of the CSR policy, the composition of the CSR Committee, the average net

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profit for the last three financial years and the prescribed CSR expenditure. If the

company has been unable to spend the minimum required on its CSR initiatives,

the reasons for not doing so are to be specified in the Board Report.

Activities under CSR

The activities that can be done by the company to achieve its CSR obligations

include eradicating extreme hunger and poverty, promotion of education,

promoting gender equality and empowering women, reducing child mortality and

improving maternal health, combating human immunodeficiency virus, acquired,

immune deficiency syndrome, malaria and other diseases, ensuring environmental

sustainability, employment enhancing vocational skills, social business projects,

contribution to the Prime Minister's National Relief Fund or any other fund set up

by the Central Government or the State Governments for socio-economic

development and relief and funds for the welfare of the Scheduled Castes, the

Scheduled Tribes, other backward classes, minorities and women and such other

matters as may be prescribed.

Local Area

Under the Companies Act, preference should be given to local areas and the areas

where the company operates. Company may also choose to associate with 2 or

more companies for fulfilling the CSR activities provided that they are able to

report individually. The CSR Committee shall also prepare the CSR Policy in

which it includes the projects and programmes which is to be undertaken, prepare a

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list of projects and programmes which a company plans to undertake during the

implementation year and also focus on integrating business models with social and

environmental priorities and process in order to create share value.

The company can also make the annual report of CSR activities in which they

mention the average net profit for the 3 financial years and also prescribed CSR

expenditure but if the company is unable to spend the minimum required

expenditure the company has to give the reasons in the Board Report for non

compliance so that there are no penal provisions are attracted by it.

When a company has a website, the CSR policy of the company would need to be

disclosed on such website.

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FORMAT FOR THE ANNUAL REPORT ON CSR ACTIVITIES

1. A brief outline of the company's CSR policy, including overview of projects or

programs proposed to be undertaken and a reference to the web-link to the CSR

policy and projects or programs.

2. The Composition of the CSR Committee.

3. Average net profit of the company for last three financial years

4. Prescribed CSR Expenditure (two per cent. Of the amount as in item 3 above)

5. Details of CSR spent during the financial year.

(a) Total amount to be spent for the financial year;

(b) Amount unspent , if any;

(c) Manner in which the amount spent during the year in prescribed format.

6. In case the company has failed to spend the two per cent of the average net

profit of the last three financial years or any part thereof, the company shall

provide the reasons for not spending the amount in its Board report.

7. A responsibility statement of the CSR Committee that the implementation and

monitoring of CSR

Policy, is in compliance with CSR objectives and Policy of the company.

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ADVANTAGES OF CSR TO THE COMPANY

Better Public Image

A corporation’s public image is at the mercy of it’s social responsibility programs

and how aware consumers are of them. According to a study by Cone

Communications, 9 out of 10 consumers would refrain from doing business with a

corporation if there existed no corporate social responsibility plan.

For example, if a company is heavily involved in the practice of donating funds or

goods to local nonprofit organizations and schools, this increases the likelihood

that a consumer will use their product. Additionally, if a corporation takes great

care to ensure the materials used in its products are environmentally safe and the

process is sustainable, this goes a long way in the eye of the public.

Consumers feel good shopping at institutions that help the community.

Better and More Media Coverage

Going along with how the public sees your corporation, the amount of positive

media coverage a corporation receives is extremely important for business. It

doesn’t matter how much your company is doing to save the environment if

nobody knows about it. As they say, it’s okay to toot your own horn every once in

a while. Make sure you’re forming relationships with local media outlets so they’ll

be more likely to cover the stories you offer them.

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How much good a company can do in the local communities, or even beyond that,

is corporate social responsibility. And the better the benefits, the better the media

coverage.

On the other hand, however, if a corporation participates in production or activities

that bring upon negative community impacts, the media will also pick this up (and

unfortunately, bad news spreads quicker than good news). Media visibility is only

so useful in that it sheds a positive light to your organization.

Fosters a Positive Workplace Environment

This section is short and simple because it’s just common sense – employees like

working for a company that has a good public image and is constantly in the media

for positive reasons. Happy employees almost always equals positive output.

How Nonprofits Benefit

How corporations embrace corporate social responsibility in 2015 is also going to

be of great importance to the nonprofit world. Corporate giving programs, which

can include everything from matching gifts to volunteer grants; from team building

volunteer efforts to fundraising events. These types of programs, which vastly

increase the public good that corporations are doing, are vital to nonprofit

organizations because of the great monetary and volunteer implications.

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http://doublethedonation.com/matching-grant-resources/volunteer-grant-basics/

http://doublethedonation.com/matching-grant-resources/matching-gift-information/

http://doublethedonation.com/blog/2013/08/the-importance-of-increasing-employee-engagement-using-corporate-giving-programs/


Greater Funding through Employee Matching Gift Programs

Corporations that offer matching gift programs are essentially doubling donations

that its employees are giving to eligible nonprofits. For example, if an employee

provides a $100 donation to a nonprofit of their choice, his or her employer (if the

company offers a matching gift program) will write an additional $100 check,

thereby increasing total funds brought in.

Greater Time Commitments through Employee Volunteer Grant Programs

Corporations that offer volunteer grants, or even offer paid time off to volunteer at

nonprofit organizations, are bringing in helping hands to eligible nonprofit

organizations. A corporation with this kind of program might offer (for example) a

$250 check to a nonprofit once an employee has volunteered at least 10 hours with

the organization. There are also pay-per-hour grants that many corporations offer,

paying a certain dollar amount per hour volunteered.

This kind of socially responsible program is a win-win for both parties involved.

Employees of corporations are seen volunteering and donating their time to

important causes in the community, and nonprofits are receiving free time and

volunteer work, which is essential the success of so many nonprofits.

Forging Corporate Partnerships

Another positive impact corporate social responsibility has on nonprofit

organizations is the possibility of corporate partnerships. These partnerships are

vital to the work a corporation can do in the local community, and important to a

nonprofit that may not have the resources for major marketing campaigns. Long-

term corporate-nonprofit partnerships can benefit everyone.

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For a corporation, a partnership with a local or national nonprofit organization

improves the company’s image in the public eye, as consumers can clearly see the

positive impact a corporation is having on their community. A key benefit is that it

makes it easier for consumers to trust a company.

Brand differentiation

In the past, brand differentiation was one of the primary reasons companies

embraced CSR. Companies such as Timberland were able to find their voice and

incorporate the company’s values into their business model. However, as CSR has

become more commonplace, using it to differentiate your brand is getting harder to

do. For example, the “Cola Wars” is one of the longest running rivalries in

business. Coke and Pepsi are constantly looking to grab as much market share as

they can from each other. Yet they are both adopting similar, although slightly

different, approaches to CSR. Both Pepsi and Coke are pursuing strategies of zero

net water usage. Both companies offer water bottles made from sustainable

packaging as well.

Long-term thinking

“The only reason we’re doing sustainability is to drive the growth of Unilever,”

McDonald said in the video mentioned. Indeed, CSR is an effort to look at the

company’s long-term interest and ensuring that the company’s future is… well…

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http://www.thecoca-colacompany.com/citizenship/water_main.html

http://www.pepsico.com/Purpose/Environmental-Sustainability/Water.html


sustainable. Hence, that’s why I prefer the term sustainability to CSR. It is a shift

from worrying about the next fiscal quarter’s financial results to the impact

business decisions today have on financial (and social) results ten years from now.

Customer engagement

For the past few years, Wal-Mart has established itself as a leader on

environmental efforts. Wal-Mart is a leader in environmentalism. In 2008, Wal-

Mart ran an ad campaign designed to raise awareness about the environment and

the product choices consumers could make. Using CSR can help you engage with

your customers in new ways. Since the message is about something “good,” it can

often be an easier way to talk to your customers. This is an underused tool for

business-to-business company communication.

Stable Cash Flow

Fines and penalties assessed by the government for lack of regulatory compliance

and lawsuits from customers due to product defects or from employees due to

unsafe working conditions can be costly to a small business. Cash flow is the

lifeblood of a company, allowing it to meet its obligations such as payroll and to

fund marketing and business development programs. Maintaining a stable cash

flow keeps the company on its growth track.

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http://www.youtube.com/watch?v=4XGshOMljFs

http://dowelldogood.net/?page_id=446


CSR POLICIES AND PRACTICES

Mission, Vision and values statement:

Corporate Social Responsibility is regarded as a prominent place in a company’s

core mission, vision and values documents which state a company’s goals and

aspirations. It provides insight into the company’s values, culture and strategies for

achieving its aims. The mission or vision of a socially responsible business refers

to a purpose beyond “making a profit” and specifies that it will engage in ethical

and responsible business practices. It seeks to balance the interests of all the key

shareholders while making decisions.

Culture Values:

Corporate Social Responsibility requires an environment where innovation and

independent thinking are welcomed. There must be a commitment to close the gap

between “what the company says” and “reality of its actual performance.” Care

should be exercised so that the company says what it means what it says.

Management Structures:

Corporate Social Responsibility management systems aims to integrate corporate

responsibility concerns into a company’s values culture, operations and business

decisions at all levels of the organization. Such a system can be created by

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assigning responsibility to a Board Committee, an executive level committee or a

single executive or a group of executives who can identify key Corporate Social

Responsibility issues and evaluate and develop a structure for long term integration

of social values throughout the organizations. The designed structure should align

the company’s mission, size, sector, culture, business structure, geographic

locations, risk areas & level of Corporate Social Responsibility commitment.

Strategic Planning:

Companies begun to incorporate Corporate Social Responsibility into their long

term planning processes. Specific goals and measures of progress are identified for

the purpose. The impact of any major company proposals on society is assessed

before it is approved.

General Accountability:

Social responsibility goals may be prescribed for different divisions, departments

and job positions. Job descriptions are designed so that each employee can

understand how he can contribute to the company’s overall effects to be socially

responsible.

Employee recognition and rewards:

Employees tend to engage in such behavior that is recognized and rewarded and

avoid behavior that is penalized. To promote Corporate Social Responsibility, the

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system of recruiting, hiring, promoting, compensating and publicly honoring

employees should be designed.

Communication, education and training:

Employees cannot be held accountable for responsible behavior if they are not

aware of its importance. Therefore, they should be provided with the information

and tools they need to act appropriately in carrying out their job requirements.

Companies should publicize the need of Corporate Social Responsibility internally,

include it as a subject in management training programs, establish a code of

conduct, and provide managers and employees with decision making processes that

help them to achieve responsible outcomes.

Corporate Social Responsibility reporting:

Annual Corporate Social Responsibility reports builds trust with stakeholders and

encourage internal efforts to comply with a company’s Corporate Social

Responsibility goals. The best report demonstrate -

CEO and senior leadership support.

Provide verified performance date for social, environmental and economic

performance indicators.

Share good and bad news.

Set goals for improvement.

Include stakeholder’s feedback.

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Leadership Role:

A few socially responsible companies take the lead and persuade others to behave

in more responsible manner. It is in everyone’s best interest to have as many

companies as possible honoring the requirements and expectations of Corporate

Social Responsibility.

Increased productivity and quality of work life:

Efforts to improve working conditions lessen environmental impacts and increase

employee involvement in decision making often lead to increase productivity and

reduce error rate in a company.

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CSR BY HDFC LIFE INSURANCE COMPANY

HDFC Life has always believed that establishing a strong and ethical foundation is

an essential prerequisite for long-term sustainable growth. Integrity and people

care are two of our key fundamental values which they follow.

Approach

HDFC Life has always believed that establishing a strong and ethical foundation is

an essential prerequisite for long-term sustainable growth. HDFC Life focuses on

maintaining the quality of business and creation of long-term value for policy

holders and stakeholders. We also believe that business must go hand in hand with

a sense of responsibility towards the society.

HDFC Life’s business philosophy highlights the theme of self-respect and

independence. Swabhimaan, HDFC Life’s Corporate Social Responsibility (CSR)

initiative- aims to play a positive role by contributing towards easing distress and

aiding in advancement of society while engaging with stakeholders thereby

becoming a socially responsible corporate citizen.

HDFC Life is committed to being a socially responsible corporate and its CSR

framework is governed by a formal policy.

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HDFC Life CSR framework

Achievements

Winner of ‘Best Marketing Campaign’ awards for India Giving Challenge

2013

Winner of ‘ Innovative Fundraising Campaign’ awards for India Giving

Challenge 2013

Runner up in ‘Better than last year prizes’ for the India Giving Challenge

2013

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Won the 2nd ‘Best Marketing Campaign’ awards during the India Giving

Challenge 2012

Won the 2nd ‘Best Marketing Campaign’ and 2nd ‘Most Innovative

Fundraising Campaign’ awards during the India Giving Challenge 2011

HDFC Life was awarded the ‘Yuva Hero Award’ in July 2011 for

contribution towards the educational support of lesser privileged children

Won the ‘Most innovative fundraising campaign’ award during the ‘India

Giving Challenge 2010’

HDFC Life was awarded with ‘Yuva Unstoppable Corporate Icon Award’

from Dr. APJ Kalam in Sept’2010

Initiatives

Rebuilding Uttarakhand: A Flood Response

In June 2013, devastating floods struck Uttarakhand. As a responsible corporate

HDFC Life decided to support rehabilitation of people affected in Uttarakhand

floods.

Company partnered with Habitat for Humanity India to provide long term

sustainable shelters to affected families.

The project is funded through the contribution made by our employees & matching

amount donated by the company. Under this project 75 transitional shelter to

address immediate needs & 50 permanent houses are being constructed. The

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project will rehabilitate total of 125 families. As on 31st March, 2014, 60

transitional shelters have been constructed & handed over to beneficiaries.

SOS children’s village project

HDFC life believes that education plays a significant role in an individual’s life. It

helps children living on the margins of the society to break away from the cycle of

poverty to a secure future.

The journey from poverty to a financially stable life is especially difficult for

orphaned and destitute children. In absence of any care and guidance from an adult

they are left to face the harsh realities of life on their own and their chances of

achieving a secure and stable future is drastically lowered.

In the new financial year, HDFC Life took its commitment for child education one

step further by partnering with SOS Children’s Villages which focuses on

providing family-based care, quality education and holistic development of

abandoned, destitute and orphaned children. The project, known as ‘Swabhimaan’

supports the education of 300 vulnerable children in 4 locations -Kolkata,

Guwahati, Bhubaneshwar and Rourkela.

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Teach for India

HDFC Life believes in every child’s right to quality education and believes that

one of the long term solutions to eradicate the ‘Education inequality’ is by creating

‘Change Leaders’.

To facilitate the development of ‘Change Leaders’ and channelize the aspirations

of its dynamic employees, HDFC Life has been partnering with Teach for India, a

non-profit organization engaged in supporting education for underprivileged

children since 2010. The Teach for India fellowship is a two year program, which

places fellows as full-time teachers in low income English medium schools. HDFC

sponsored two fellows for the 2010-12 fellowship program, these employees have

been reintegrated in the company and remain active change leaders within and

outside the company.

Presently, the Company has sponsored two employees each for the 2012-14 and

2013-15 Teach for India Fellowship programs. The project provides the employees

with the opportunity to have a secure career while following their dream of giving.

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Payroll Giving

HDFC Life encourages its employees to contribute a small part of their salary to

establish their own charity account through the Payroll Giving programme.

This initiative has been implemented in partnership with GiveIndia, an

organization dedicated to help individuals donate to credible NGOs. This

programme helps employees create a strong impact in the lives of the

underprivileged through small, yet effective contributions. The employees are also

able to follow up on the utilization of their contribution. HDFC Life has been

successfully running the programme with an exponential increase in the number of

enrolments since 2008 and till date, has effectively channelized Rs.58.08 lakhs

worth of donations.

Tree plantation

Environmental sustainability is emerging as an essential ingredient to doing

business responsibly and successfully. As the first private company in Indian

insurance sector, our actions have the potential to set sustainability benchmarks for

the industry and ensuring a better world for generations to come.

These aspirations materialized into environmental initiatives at HDFC Life. Under

its environmental CSR initiatives, since 2010, HDFC Life, in all its offices has

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been undertaking steps like prohibiting the use of paper cups completely, saving

paper by setting ‘printing on both sides’ as a default on printers, ensuring desktops

hibernate after 15 minutes to minimize electricity use, setting usage hours for air

conditioners, initiating internal campaigns to save water, power and paper

wastages and encouraging employees to organise environment friendly

celebrations and festivities.

To offset the use of paper for printing the Policy Documents for 2012-13, HDFC

Life partnered with a non-profit organization - Plant a Tree Today Foundation - to

plant 1,500 saplings in Mumbai in August 2012. The saplings have been planted on

a third party land and are maintained by them. HDFC Life and PATT regularly

monitor the growth of the saplings. In the financial year 2013-14, HDFC Life aims

to plant 3000 saplings.

Financial Literacy project

HDFC life believes in empowering marginalized population by building their

capabilities. One of the key capabilities is the ability to use knowledge and skills to

manage financial resources effectively for long term financial well-being.

With this belief, HDFC Life has initiated a financial literacy project to educate and

equip children (from grades 5 to 8) with financial knowledge to help them

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effectively manage their finances. A financial literacy module has been created by

HDFC Life. The project was piloted in 2011 in partnership with Yuva Unstoppable

across 25 municipal schools in Gujarat (Ahmedabad, Baroda & Surat). Yuva

Unstoppable is a youth volunteer movement. The second phase of the Program was

launched in 2012 in Municipal schools across Gujarat, MP, Rajasthan,

Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu and Uttar Pradesh. Sessions

with the children were conducted by trained HDFC Life employees and other

volunteers. HDFC Life has educated more than 12,000 children through this

project since 2011.

HDFC Life realizes that coping with the loss of a loved one is a painful experience.

While the disbursement of a death claim may help family members/ claimants

overcome any immediate financial difficulties, further support is required to

achieve long term financial stability.

Swabhimaan Careers

As an insurer, HDFC Life focuses on the long-term financial well being of the

policyholders and their dependants and thereby launched the ‘Swabhimaan

Careers’ project. This initiative proactively reaches out to the policyholder’s

dependants and extends an opportunity to the dependants to send their applications

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to HDFC Life. Basis the suitability of the profile, it is assessed and considered for

employment in the company.

Akshaya Patra

HDFC life believes that education plays a significant role in a person’s life. It helps

marginalized population of society in breaking away from the shackles of poverty.

Schools and qualified teachers might be significant in providing quality education

but without enabling conditions their impacts drastically diminishes. Access to

food and nutrition is one such enabling factor which may affect utilization of

education facilities both positively as well as negatively. Currently 42.5% of

school aged children are under nourished. HDFC Life in its endeavor to enhance

access to education for children of underprivileged groups is partnering with the

Not for Profit organization, Akshaya Patra. The organization runs school lunch

programs across India. Akshaya Patra distributes freshly cooked, healthy meals

daily to 1.37 million children. HDFC life has funded a vehicle for Akshaya Patra,

Hyderabad. This vehicle will be used for delivering the midday meals at different

school locations with more efficiency ensuring the freshness of food.

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CSR BY BHARTI AXA GENERAL INSURANCE COMPANY

They commit ourselves to shaping a better tomorrow by choosing empathy over

sympathy, respect over pity, and contribution over payment; to meaningfully

transform the society at large as "we choose to care"

Global Volunteering Challenge

This is part of the week long CR programme. In 2014 we stood second globally in

the "Global Volunteering Challenge" which was an effort to promote the culture of

volunteerism for worthy causes amongst our employees. In 2013, we participated

in the global walk challenge to stand number one globally and we donated the

highest contribution amount of 20,000 Euros to Concern India Foundation. in

2012, we stood first amongst the AXA Asia entities..

Employees enthusiastically participate in the CR week Global challenge year on

year to contribute to a greater cause and vision. In 2014 our employees contributed

a phenomenal 11,712 man hours out of the 1,32,616 Hours collected globally by

all AXA entities and we donated the second highest contribution amount of.18,000

Euros to Satya Bharti Schools. This was possible due to their selfless efforts in

various volunteering activities such as visit to NGOs orphanages and old age

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homes, Chabeel, risk education workshops, cooking food for the D & I day stalls

and many more.

Diversity and Inclusion

Bharti AXA GI is committed in promoting Diversity and Inclusion by creating a

work environment where all employees are treated with dignity and respect; and

where individual differences are valued. The D&I board is dedicated to cultivate a

diverse and inclusive environment where all employees feel fully engaged and

included in our business and strategy to become the "Preferred Company".

As part of the AXA Global D&I Day celebration held for the first time on June

10th 2013, we celebrated the day to widen the scope of diversity beyond gender in

a meaningful way.

To rejuvenate our focus and efforts on building an inclusive organization, we at

Bharti AXA GI dedicate one day of the CR Week as "Diversity & Inclusion Day"

to celebrate the diversity of the team. Diverse ethnic dress codes, stalls with food

prepared by the employees, created a festive atmosphere and a spirit of employee

engagement in social harmony.

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The proceeds collected from the sale of food at the stalls were utilized towards

funding various risk education projects conducted in collaboration with Local

NGOs . Many Local NGOs were invited to put up stalls at office premises to

showcase and sell their products like clothes & handicrafts to help them raise

funds.

Risk Education

Keeping in mind the increased need to spread awareness around gender sensitivity

and related issues, we at Bharti AXA GI dedicate one day of the CR Week this

year as "Risk Education Day". On this day we organize camps, in association with

Concern India Foundation, where employees volunteered to conduct sensitization

workshops that helped girls from underprivileged backgrounds to safeguard

themselves against perils of society which included identifying a 'good touch' and a

'bad touch'.

Other risk awareness programmes on road safety, healthy habits and other

social/civic issues are also conducted.

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Apart from the above programs which we do on Risk Education Day, on a regular

basis we keep conducting awareness programs for employees as well as for

underprivileged women & children on diverse risk topics.

Awards Accolades & Other key Projects

Bharti AXA General Insurance Company was awarded the Change maker

Company of the Year Award (2014 – Bronze) for Corporate Responsibility.

The Change maker Company of the year is part of the Change maker - Corporate

Responsibility Awards instituted by Bharti Foundation. the philanthropy entity of

the Bharti Enterprises . The awards are to recognize efforts of Bharti Group

Companies to integrate corporate responsibility as an integral part of their

everyday business. The jury assessed nominees on eight different parameters

ranging from the Company's Vision and its integration with Corporate

Responsibility, Social & Community Initiatives, Innovative use of Business

products & services and more.

Bharti AXA GI has consistently won this award for the second year for its year

round CSR efforts focused on the 3 pillars- Women and Children, Health &

Education and disaster relief.

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At Bharti AXA GI, we ensure that women’s empowerment and gender equality

stand at the heart of our work to build a better tomorrow and thus bring in inclusive

culture.

Nanhi Kali Project

An employee sponsorship program in collaboration with K.C. Mahindra Trust and

Naadi Foundation which focused on individuals coming forth to support and

contribute towards educating underprivileged girl children; and help them go to

school with dignity. A three month campaign was run whereby employees could

contribute 1200 or 800 per month to provide support for supplementary education

and school material for girls in primary and secondary schools.

In 2012, the campaign received tremendous support from the team at Bharti AXA

GI. Employees not only contributed a part of their salary but also spread a word

amongst friends and family to support the cause. There were some who also gifted

Nanhi Kalis to their loved ones on special occasions.

The 'Say No to 3Ps' day

This campaign promoted Going Green and was organized at all branches across

India. Employees were urged to reduce the use of plastic and paper, and

encouraged to reuse and recycle by keeping printing and photocopying to a bare

minimum, this included blocking off a few hours during office hours where neither

were allowed. Each employee received a cotton bag as a symbolic gesture to

reduce the use of plastic bags and. also received note pads made out of recycled

paper.

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Health Check-up for underprivileged women

As volunteerism is at the heart of CSR at Bharti AXA GI, employee participate in

organizing and assisting in health camps which are conducted for underprivileged

women hailing from humble backgrounds. During such camps, free medicines and

supplements are also distributed as prescribed by the attending doctors.

Charity Begins at Home

An annual initiative wherein the Senior Management and employees at Bharti

AXA GI contribute towards the education of children of the housekeeping staff .

Women Empowerment projects

To drive our Social & community related work on CR we work closely with

Concern India Foundation – a non profit organization and we chose 4 projects for

this year which focuses on women empowerment and women & children health.

The projects were supported with the funds generated through CR Week. Below

mentioned are some of the highlighted projects. Women Empowerment projects in

Rural Karnataka supporting sustainable agriculture. Vocational training centers run

for unemployed young women to help them find jobs and many more. Health Care

Projects for Underprivileged women and children in North & Southern states of

India

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CSR POLICY OF MAX LIFE INSURANCE CO. LTD.

I. PREAMBLE

1.1 Corporate Social Responsibility has been an area of focus not only for the Max

Group but also for Max Life Insurance Company Limited, (“MaxLife” or the

“Company”) since inception. Max Group being in the “Business of Life”, there

has been a conscious effort to make a difference in the lives of the less

privileged. Max Life has made conscious efforts to make a difference in the lives

of the less privileged.

1.2 The Companies Act brings an even greater emphasis on CSR with Rules that

provide guidance on minimum CSR spend, reporting mechanism, review

structure and reporting to the shareholders of the Company. A CSR Committee

has been formed at the Board level to oversee CSR Activities of the Company.

1.3 Further to the above stated, the Board has approved this CSR Policy which has

been formulated and proposed by the CSR Committee with an objective to

outline its CSR focus areas, recommending the amount of CSR Expenditure,

execution process, review & monitoring mechanism, and, reporting process to the

Management and the Board of Directors of the Company.

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II. PHILOSOPHY &OBJECTIVES

Max Life has its vision to build the most admired life insurance company by

securing the financial future of our customers and the Company’s mission bring

about strong social relevance, and aims to be committed to social causes and

relevance for its inclusive growth and to contribute to society by supporting causes

on the health and well being platform.

IV. CSR IDENTIFIED SECTORS AND CSR ACTIVITIES

Max Life shall undertake Max Life CSR Activities in all or any of the CSR

Activities as per the Companies Act, however, it shall give primary importance to

the Max Life CSR

Identified Sectors, as follows.

4.1 Health & Hygiene

a. Supporting and facilitating surgery and high end treatment.

b. Preventive healthcare to underprivileged in identified geographies

c. Personal hygiene training in those villages which have been adopted by the

Company and in those locations where Health and Immunization camps are

organized by the Company

d. Environmental hygiene awareness in and around the areas of

operations of the Company

4.2 Education(exclusively for the select Village / Grams / any other

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geographical clusters selected for development project)

a. Augment Primary and Secondary Education through remedial education support

b. Bridging Digital Divide

c. Financial Literacy to create awareness about financial planning

4.3 Nutrition

a. Vitamin A(children 0-5 years) and other supplements for underprivileged

women and children

4.4 Livelihood

a. Vocational training and creating & supporting Self Help Groups for single

women led households in villages adopted by the Company. The vocations for

which training will be provided will be identified basis the inherent skill sets and

commercial opportunities for those vocations in and around the village

V. MODALITIES OF EXECUTION AND IMPLEMENTATION

SCHEDULES

5.1 Independent Implementing Agency: The Company shall work with Max India

Foundation or any other NGO, identified from time to time, as its independent

implementation partners for execution of the Max CSR Activities

5.2 NGO Support: Max India Foundation will execute projects with the help of

NGOs and employee engagement. Max India Foundation may seek the support of

NGOs who are working on ground on issues decided upon. Max India Foundation

will also provide training support to volunteers to carry out CSR activities.

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5.3 Modality of Execution of Max CSR Activities: The Company shall execute and

undertake the Max Life CSR Activities as follows:

5.3.1. Healthcare which will cover pan-India immunization, surgeries and

treatments, health camps, medicinal support, health awareness, environmental

awareness, support for artificial limbs & polio calipers and other disability.

5.3.2 Village Adoption in which the Company will focus on:

i) Children related issues in the areas of health, education and nutrition (education

being an integral part of holistic well being, will be addressed only in the village

adoption initiative, not in any other geography)

ii) Single women led households to create self sustenance

iii) Health and Hygiene in the village and

iv) Spreading awareness about a healthy environment.

5.4 Geographical Areas for Max CSR Activities:

1. Health & Hygiene: In areas as may be identified by Max India Foundation.

2. Nutrition: For underprivileged children in selected areas of MIF operations.

3. Education and Livelihood: Only in the village adopted by Max India Foundation

in areas identified by the Company from time to time

5.5 Beneficiaries for the Max CSR Activities:

1. Children (0-18 years)

2. Women – Particularly, widows and those who are running households alone

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3. Senior citizens

4. Others – society at large

VI. Monitoring Process of CSR Activities

6.1 Approval of CSR Plan. Max India Foundation and other NGOs, the

Company may decide to work with from time to time, shall present and get

approval on a quarterly activity plan at the beginning of every quarter from

relevant authority at Max Life Insurance. The plan should be in line with

Max Life CSR Policy approved by the CSR Committee. This plan will form

the basis for progress report to CSR Committee.

6.2 Reporting to CSR Committee. Max India Foundation and other NGOs

the Company may decide to work with from time to time shall provide a

detailed progress report on the Key Performance Indicators to the CSR

Committee every Quarter, or, at such intervals and at such times as the

CSR Committee shall require Max India Foundation and other NGOs to do

so. The progress on CSR issues selected by the Company will be reported

in the Annual Report in the format prescribed by the CSR Rules.

6.3 Reporting to the Board. The CSR Committee, after approval, shall

submit its report giving status of the CSR Activities undertaken, CSR

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Expenditure incurred and such other details as may be required by the

Board, in accordance with applicable laws.

6.4 Key Performance Indicators: Following shall be the key indicators for

assessment of each of the Max Life CSR Identified Sectors:

Issues Key Performance Indicators

Healthcare

Surgeries and

treatments including

Cancer

i) No of children benefitted

ii) No of women benefitted

iii) Total no. of beneficiaries

Preventive Healthcare Immunization

i) No. of children covered

ii) No. of vaccines administered

iii) No. of locations covered

Health Camps

i) No. of beneficiaries

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ii) No. of locations covered

iii) No. of people provided immediate solutions /referred for further treatment.

Personal Hygiene & Environment Hygiene

i) No. of children and adults trained

ii) Creation of garbage dumps / cleaning of open drains

iii) Reduction / removal of open defecation practices

Education

Primary & Secondary

Education

i) No. of registered children and their attendance percentage

ii) No. of drop-outs – boys and girls

iii) Percentage of days when teacher was not available

Bridging Digital Divide

i) No. of children enrolled in computer literacy programme.

ii) Proficiency in computer knowledge (certification)

Financial Literacy

i) %age of adults (20-60 years) covered Nutrition Vitamin A

i) No. of children (0-5 years) given vitamin A capsules.

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ii) No. of women and children provided with other supplements

Livelihood Vocational training

i) No. of women registered for vocational training

ii) Self – sufficient women in year 3 and year 5

Self Help Group

i) No. of Self Help Groups of women created

ii) Earnings of Self Help Groups

Miscellaneous

i) Any other parameters as the CSR Committee may require

6.5 Board Report and Annual Report. The Board shall publish this Policy and an

annual report on CSR Activities as per applicable laws.

VII. Budget for FY 15

CSR Budget FY 2015

Budget FY 2015

(in Rs. Crore)

Total 9.70

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CSR OF LIFE INSURANCE CORPORATION

LIC with about fifty percent of personal insurance market share in India has taken

up activates under Corporate Social Responsibility in the right earnest. The thrust

area CSR activities of Life Insurance Corporation (LIC) include operational

transparency, information sharing and accountability to help support investors

particularly rural based, as covertly improvement resulting into efficient

functioning with fewer complaints.

LIC Golden Jubilee Foundation was established on 20-10- 2006 with an initial

corpus of Rs.50 Crores and with the provision of increasing to 100 Crores within

five years for tangible social work. LIC has gone into the activity in a big way. LIC

golden Jubilee scholarship scheme provides scholarship at the rate of Rs. 10,000/

year to children of economically weaker sections.

Under infrastructure support LIC has gone in a fairly involved way for the

construction of building at Howrah for mentally and physically challenged

persons; constructed a library cum study centre and residential hostel for ladies at

Shri Ramakrishna Ashram. LIC has constructed class room cum activity centers at

Jorhat; hostel at Jalpaiguri; golden jubilee hall, school and college building at

Shimoga; Vocational center at Jodhpur; computer center at Bhopal; toilet and class

room blocks at Haldwani, Vellore district and similar activities extending help for

infrastructure support. LIC has provided school buses at Patna division and Raipur

divisions.

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Under Medical and Health care, the LIC has provided Camera for diabetic

retinopathy; Tata Winger ambulance van equipped with hearing aids at Jorhat;

Ambulance with ECG machine at Bangalore and Belgaum; Construction of

obstetrics and Gynecology unit at Udapi for masses; provided sonography machine

for providing advanced healthcare for rural area at Nadiad; Mobile van for blood

collection purpose at Thane and Bhavnagar.

Under Public Utility activities, the LIC has constructed homes for aged persons at

Bhagalpur; Observation centre for HIV infected children at Satara; Kitchen,

dinning room for destitute and mentally challenged women; Medical unite-home

for aged at Banglore.LIC has installed roof top solar photovoltaic system at

Ludhiana.

Life Insurance Corporation of India’s Berhampur division has decided to provide

monthly scholarship to 20 poor and meritorious students to pursue higher

education.

The amount of scholarship is Rs 1000 per month for undergraduate students and

the amount would be provided till the end of the course of the student. The

scholarship would be provided to the students as a part of Corporate Social

Responsibility (CSR) of the public sector unit, its senior Divisional Manager. Last

year, the division provided scholarship to nine under-graduate students. This year,

he said as many as 182 applications were received by the division and the process

was on to select 20 students.

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CONCLUSION

CSR programmes integrate core business operations with efforts to reduce the

disadvantage faced by socially-excluded populations. The examples cited in the

case study demonstrate that commercial activities that incorporate socially-

excluded populations as employees, suppliers, distributors, and customers can

contribute to capability and resource development for these populations. CSR

activities can have a significantly-positive effect on socially-excluded groups—

both directly through health services and more generally by improving economic

and social capabilities of socially-excluded populations. This positive association

supports recommendations for policy measures to increase the number, scale, and

scope of CSR initiatives in countries.

The private sector is often seen as a driver of exclusionary processes rather than a

partner in improving the health and welfare of socially-excluded populations.

However, private-sector initiatives and partnerships—collectively labeled

corporate social responsibility (CSR) initiatives—may be able to positively impact

social status, earning potential, and access to services and resources for socially-

excluded populations. This project highlights the initiatives taken by the insurance

sector in India. The results show that there is (a) increase job-skills and

employment opportunities for women, disabled women, and rehabilitated drug-

users and (b) provide healthcare services to female workers and their communities.

(c) increase in the literacy and cleanliness programs. Common success factors from

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the project form the basis for recommendations to design and implement more

CSR initiatives targeting socially-excluded groups. The analysis found that CSR by

insurance companies has potential for positive and lasting impact on developing

countries, specifically on socially-excluded populations. However, there is a need

for additional monitoring and critical evaluation.

C SR is an increasingly important tool to maximize the positive development

impact of corporations and commercial activity in the developing world. In India,

companies, civil society organizations (CSOs)/NGOs, and development partners

have adapted international practices of CSR for better development of the society.

This project has proved that the society stands to benefit from company social

responsibility and that the society is satisfied with the level of social responsibility

undertaken by insurance companies.

A relationship exist between society and business organization because

organizations need the society for its manpower and marketing of its products

while the organization help in so many ways in the development of the society.

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RECOMMENDATIONS

Detailed report of spending areas with relevant numbers of people and

activity undertaken.

Basic documentation including photographs, reports, budget, expenditure,

results should be maintained.

Final report should be published as per the act passed by government.

The strategies should be reviewed and recommendations should be taken in

consideration for the formation of further strategies.

Different channels for communication should be such as website content,

internal columns , stakeholder columns, films, case studies, reports and

others.

companies are required to spend as per the mandate and the actual current

financial position.

expand the reach and scale of CSR initiatives designed for socially-excluded

populations.

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When designing and implementing CSR initiatives, quantify the social

objectives and monitor the results; strategic CSR initiatives should include

both social and commercial goals; proving the business case for CSR

through quantitative data on sales, market penetration, or customer loyalty is

important to justify more CSR initiatives; strong, independently-verified

data on the health and social benefits of CSR for socially-excluded and poor

populations will build community support for CSR initiatives.

Include socially-excluded groups in stakeholder analysis. Stakeholder

analysis is a tool that incorporates the viewpoints of all the various

populations with an interest in a commercial operation. Stakeholders can

include customers, suppliers, communities, and government. Stakeholder

analysis can be used for identifying socially-excluded groups that have

potential as employees, distributors, and customers.

Focus on corporate partnerships for scalable projects. Smaller, limited scope

projects can be best carried out by civil society alone. Projects that can be

replicated and expanded to reach a large population are the best fit for a CSR

partnership. Corporate resources may be able to expand the scope and scale

of the project far beyond what could be accomplished otherwise.

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BIBLIOGRAPHY

Corporate social Responsibility by Philip Kotler

Corporate Social Responsibility in India by Sanjay K Agarwal

Journal on Companies Act 2013

www.licindia.in

bharti-axagi.co.in

www.hdfclife.com

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http://www.licindia.in/

Csr Project on Insurance

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Transcript of Csr Project on Insurance