Nikhil Repot on Csr

8/8/2019 Nikhil Repot on Csr

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Content:


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Introduction

Corporate Social Responsibility (CSR) is viewed as a comprehensiveset of policies, practices and programs that are integrated intobusiness operations, supply chains, and decision-making processesthroughout the organization -- wherever the organization doesbusiness -- and includes responsibility for current and past actions aswell as future impacts.CSR involves addressing the legal, ethical commercial and otherexpectations society has for business, and making decisions that fairlybalance the claims of all key stakeholders. Effective CSR aims atachieving commercial success in ways that honor ethical values and

respect people, communities, and the natural environment. Simplyput it means what you do, how you do it, and when and what yousay.

Several terms have been used interchangeably with CSR. Theyinclude -- business ethics, corporate citizenship, corporateaccountability, sustainability and corporate responsibility.The issues that represent an organizations CSR focus vary by size(small, medium and large), sector (for example, financial institutions,infrastructure providers, textile manufacturers, agri-producerssupermarket retailers, etc.) and even by geographic region. In itsbroadest categories, CSR typically includes issues related to businessethics, community investment, environment, governance, humanrights, the marketplace and the workplace.


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Areas of Corporate Social Responsibility


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Overview

Corporate social responsibility is necessarily an evolving term that does not

have a standard definition or a fully recognized set of specific criteria. With the

understanding that businesses play a key role on job and wealth creation in

society, CSR is generally understood to be the way a company achieves a

balance or integration of economic, environmental ,and social imperatives

while at the same time addressing shareholder and stakeholder expectations.

CSR is generally accepted as applying to firms wherever they operate in the

domestic and global economy. The way businesses engage/involve the

shareholders, employees, customers, suppliers, governments, non-

governmental organizations, international organizations, and other

stakeholders is usually a key feature of the concept. While business

compliance with laws and regulations on social, environmental and economicobjectives set the official level of CSR performance, CSR is often understood

as involving the private sector commitments and activities that extend beyond

this foundation of compliance with laws.

From a progressive business perspective, CSR usually involves focusing on

new opportunities as a way to respond to interrelated economic, societal and

environmental demands in the marketplace. Many firms believe that this focus

provides a clear competitive advantage and stimulates corporate innovation.

CSR is generally seen as the business contribution to sustainable

development which has been defined as "development that meets the needs

of the present without compromising the ability of future generations to meet

their own needs", and is generally understood as focusing on how to achieve

the integration of economic, environmental, and social imperatives. CSR also

overlaps and often is synonymous with many features of other related

concepts such as corporate sustainability, corporate accountability, corporate

responsibility, corporate citizenship, corporate stewardship, etc..CSR commitments and activities typically address aspects of a firm's

behaviour (including its policies and practices) with respect to such key

elements as; health and safety, environmental protection, human rights,

human resource management practices, corporate governance, community


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development, and consumer protection, labour protection, supplier relations,

business ethics, and stakeholder rights.

Corporations are motivated to involve stakeholders in their decision-making

and to address societal challenges because today's stakeholders are

increasingly aware of the importance and impact of corporate decisions uponsociety and the environment. The stakeholders can reward or punish

corporations. Corporations can be motivated to change their corporate

behaviour in response to the business case which a CSR approach potentially

promises. This includes:

1.Stronger financial performance and profitability (e.g. through eco-efficiency),

2.Improved accountability to and assessments from the investment

community,

3.Enhanced employee commitment,

4.Decreased vulnerability through stronger relationships with communities,

and

5.Improved reputation and branding.


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Components of CSR

The emerging concept of CSR goes beyond charity and requires the companyto act beyond its legal obligations and to integrate social, environmental andethical concerns into companys business process. What is generally

understood by CSR is that the business has a responsibility towards itsstakeholders and society at large that extends beyond its legal andenforceable obligations. The triple bottom line (people, planet, profit) approachto CSR emphasizes a companys commitment to operating in aneconomically, socially and environmentally sustainable manner. The emergingconcept of CSR advocates moving away from a shareholder alone focus to amulti-stakeholder focus. This would include investors, employees, businesspartners, customers, regulators, supply chain, local communities, theenvironment and society at large. The key components of CSR would

therefore include the following:

Corporate Governance:Within the ambit of corporate governance, major issues are the accountability,transparency and conduct in conformity with the laws which enable thecompany to realize its corporate objectives, protect shareholder rights, meetlegal requirements and create transparency for all stakeholders.

Business Ethics:relates to value-based and ethical business practices.

Workplace & labour relations:Human resources can help in improving the workplace in terms of health andsafety, employee relations as well as result in a healthy balance between workand non-work aspects of employees life.

Affirmative action/good practices:Equal opportunity employer, diversity of workforce that includes people withdisability, people from the local community etc., gender policy, code ofconduct/guidelines on prevention of sexual harassment at workplace,prevention of HIV/AIDS at workplace, employee volunteering etc. are some ofthe good practices which reflect CSR practices of the company.

Supply Chain:


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The business process of the company is not just limited to the operationsinternal to the company but to the entire supply chain involved in goods andservices.

Customers:With increased awareness and means of communication, customersatisfaction and loyalty would depend on how the company has produced thegoods and services, considering the social, environmental, supply-chain andother such aspects.

Environment:Merely meeting legal requirements in itself does not comprise CSR but itrequires company to engage in such a way that goes beyond mandatory

requirements and delivers environmental benefits.

Community:A major stakeholder to the business is the community in which the companyoperates. The involvement of a company with the community would dependupon its direct interaction with the community and assessment of issues/risksfaced by those living in the company surrounding areas.


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History of CSR in India :-

India has a long rich history of close business involvement in social causes fornational development. In India, CSR is known from ancient time as social dutyor charity, which through different ages is changing its nature in broader

aspect, now generally known as CSR. From the origin of business, whichleads towards excess wealth, social and environmental issues have deeproots in the history of business. India has had a long tradition ofcorporate philanthropy and industrial welfare has been put to practice sincelate 1800s. Historically, the philanthropy of business people in India hasresembled western philanthropy in being rooted in religious belief. Businesspractices in the 1900s that could be termed socially responsible took differentforms: philanthropic donations to charity, service to the community, enhancingemployee welfare and promoting religious conduct. Corporations may givefunds to charitable or educational institutions and may argue for them as greathumanitarian deeds, when in fact they are simply trying to buy communitygood will. The ideology of CSR in the 1950s was primarily based on anassumption of the obligation of business to society.

In initial years there was little documentation of social responsibility initiativesin India. Since then there is a growing realization towards contribution to socialactivities globally with a desire to improve the immediate environment (Shinde,2005). It has also been found that to a growing degree companies that paygenuine attention to the principles of socially responsible behavior are also

favored by the public and preferred for theirgoods and services. This hasgiven rise to the concept of CSR.

After Independence, JRD Tata who always laid a great deal of emphasis to gobeyond conducting themselves as honest citizens pointed out that there weremany ways in which industrial and business enterprises can contribute topublic welfare beyond the scope of their normal activities. He advised thatapart from the obvious one of donating funds to good causes which has beentheir normal practice for years; they could have used their own financial,managerial and human resourced to provide task forces for undertaking directrelief and reconstruction measures. Slowly, it began to be accepted, at least intheory that business had to share a part of the social overhead costs of.Traditionally, it had discharged its responsibility to society throughbenefactions for education, medical facilities, and scientific research amongother objects. The important change at that time was that industry acceptedsocial responsibility as part of the management of the enterprise itself. The
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community development and social welfare program of the premier TataCompany, Tata Iron and Steel Company was started the concepts of "SocialResponsibility." (Gupta, 2007)

The term corporate social performance was first coined by Sethi (1975),

expanded by Carroll (1979), and then refined by Wartick and Cochran (1985).In Sethi's 1975 three-level model, the concept of corporate social performancewas discussed, and distinctions made between various corporate behaviors.Sethi's three tiers were 'social obligation (a response to legal and marketconstraints); social responsibility (congruent with societal norms); and socialresponsiveness (adaptive, anticipatory and preventive) (Cochran, 2007).

The last decade of the twentieth century witnessed a swing away from charityand traditional philanthropy towards more direct engagement of business inmainstream development and concern for disadvantaged groups in thesociety. This has been driven both internally by corporate will and externallyby increased governmental and public expectations (Mohan, 2001). This wasevident from a sample survey conducted in 1984 reporting that of the amountcompanies spent on social development, the largest sum 47 percent wasspent through company programs, 39 percent was given to outsideorganizations as aid and 14 percent was spent through company trusts(Working Document of EU India CSR, 2001). In India as in the rest of theworld there is a growing realization that business cannot succeed in a societywhich fails. An ideal CSR has both ethical and philosophical dimensions,

particularly in India where there exists a wide gap between sections of peoplein terms of income and standards as well as socio-economic status (Bajpai,2001).

According to Infosys founder, Narayan Murthy, 'social responsibility is tocreate maximum shareholders value working under the circumstances, whereit is fair to all its stakeholders, workers, consumers, the community,government and the environment'. Commission of the European Communities2001 stated that being socially responsible means not only fulfilling legalexpectations, but also going beyond compliance and investing 'more' intohuman capital, the environment and the relation with stakeholders(Bajpai,2001). Over the time four different models have emerged all of which can befound in India regarding corporate responsibility (Kumar et al., 2001).
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The Political Economy of Corporate Responsibility in India

Corporate social responsibility (CSR) is on the rise all over the world, and

India is no exception. The history of corporate paternalism has played animportant part in shaping community expectations and CSR practices in India.Civil society, consumers and other actors have increased the pressure oncompanies to adhere to social and environmental standards, and this newcivil regulatory environment has had impacts on business in India. Thispaper considers corporate environmental and social behaviour in India, both inthe past and the present, in an attempt to better understand the actual impactof CSR.

The paper is divided into five broad sections with the first section setting forth

the issues in context. Section 2 covers the historical aspects of the businessand society interface in India from the middle of the nineteenth century up tothe present, and it determines the actors and the factors that have influencedthe corporate responsibility discourse. Section 3 then presents the state ofcontemporary CSR in India, by detailing perceptions of the issue, and theinitiatives undertaken by selected companies, industries, industryassociations, non-governmental organizations (NGOs) and trade unions. Itincludes a discussion on certain codes of conduct related to labour andenvironmental issues. Section 4 discusses the drivers of corporate social andenvironmental responsibility in India, using a case study of the garment sector.

Voluntary initiatives are examined in light of the macro changes unfolding inthe Indian economy and society since the early 1990s, particularly byexamining the characteristics of the labour market and the impact of labour,environmental and other regulations on business and society. This sectionalso documents corporate management and governance practices. The lastsection contains a brief discussion on issues beyond voluntarism and judicialactivism.

Philanthropy has been important in India since the middle of the nineteenth

century, largely due to a strong heritage of community influence andpaternalism among traders-turned-entrepreneurs. At the same time, the largereconomic governance framework that was put in place by the state alsoinfluenced corporate practices toward labour and society from time to time.The Indian governments socialistic policy agenda, which aimed at a moreequitable distribution of resources, restricted the concentration of wealth to thehands of a few industrialists through strategies of import substitution, foreign


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exchange control, reservations for and protection of small-scale enterprises,industrial licence, and quota systems for raw material and production. Thisinfluenced business practices of the times. However, business was oftenreluctant to abide by such principles. As a result, interest in corporatephilanthropy decreased, leading to an increase in corporate malpractice, and

manoeuvring for survival and profits. All this was facilitated by incidents ofcorruption in state and national government bureaucracies. However, certainself-enlightened businessmen practiced and advocated ethical andresponsible business behaviour, and issues of the social responsibility ofbusiness and stakeholder engagement were debated in India as early as the1960s. In fact, there is evidence available of businesses going far beyondcompliance and setting best-practice standards in labour relations andcommunity development even before Indias independence in 1947. Somesuch best practices later became the basis for drafting related legislation afterindependence.

Despite the existence of trade unions, the trade union movement was not veryeffective in advocating for the rights of workers beyond issues related towages and could not, therefore, contribute much to the larger corporateresponsibility debate. To some extent, this shortcoming was offset by theemergence of other civil society actors in the form of NGOs and community-based organizations from the 1970s. However, NGO activism in the earlyphase was limited by government policies to the role of service deliveryagents; it was only in the 1990s, when this role broadened, that NGOs started

to have greater effect. However, they tended to influence state policies ratherthan confronting business head-on. Consumer boycotts, popular in theWestern economies, have also been rare in the Indian context.

The response to corporate responsibility pressures in India has occurredmostly in export-led sectors and where the business is part of a global supplychain. The important issue of home-based workers was not addressed byinternational instruments for a long time and this, coupled with the lack of boththe will and capability for monitoring, meant that businesses could exploitvulnerable groups of workers. Manufacturers catering to local markets did notexperience the same demands and pressures to practise corporate social andenvironmental responsibility. Therefore, the locally developed certification andlabelling schemes failed to attract the attention of local business.

Since the mid-1990s, CSR has been practised and debated by businesses,industry associations, NGOs and the government. However, there is still


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progress to be made. CSR is not institutionalized as a part of businesspractice; instead it is more of a social good left to the discretion of chiefexecutive officers or top management. The agenda does not yet engage withCSR in terms of workers rights. Employee care is often left to employerbenevolence. And while environmental care and total quality management

have been driven by international competition as well as by legislation in India,compliance and enforcement are slack.

The nature of corporate actions and market-friendly regulations in Indiasuggests that increased private sector participation in social andenvironmental affairs will need more vigilance from the government, not less.More importantly, we will need more democracy, not less, to create the spacefor various actors to operate and provide support and resistance, as required.The government will have to be re-engineered so that its regulation andmonitoring role can be strengthened. In other words, it will need countervailingpower outside the government-industry nexus. This requires democratic rightsand institutions that can defend or advocate these rights, from courts to civilsociety institutions. The challenge, therefore, is to continue to build a vibrantset of civil institutions capable of feeding the corporate community and theirmarkets with signals of success that orient companies toward social andenvironmental goods, and away from the bads.


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Need for CSR

While the interests of shareholders and the actions of managers of anybusiness enterprise have to be governed by the laws of economics, requiringan adequate financial return on investments made, in reality the operations of

an enterprise need to be driven by a much larger set of objectives that aretoday being defined under the term CSR. The broad rationale for a new set ofethics for corporate decision making, which clearly constructs and upholds aorganization's social responsibility, arises from the fact that a businessenterprise derives several benefits from society, which must, therefore requirethe enterprise to provide returns to society as wel.l. A business cannotsucceed in a society which fails. This, therefore, clearly establishes the stakeof a business organization in the good health and well being of a society ofwhich it is a part. More importantly, in this age of widespread communicationand growing emphasis on transparency, customers of any product or serviceare unlikely to feel satisfied in buying from an organization that is seen toviolate the expectations of what is deemed to be ethically and sociallyresponsible behavior.It is becoming increasingly evident that organizations thatpay genuine attention to the principles of socially responsible behaviour arealso finding favour with the public and are the preferred choice for their goodsand services.

Corporate and Social Responsibility for SMEs


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Corporate Social Responsibility (or more recently social responsibility) hasincreased in importance around the world. Much of the content of the reportsfocus on large companys and statistical analysis all very well but for smalllean business like mine and yours we need a different approach.

This page aims to explore CSR - Corporate Social Responsibility from the

practical stance of the smaller business. For CSR to be adopted as aprinciple, it needs not only to be understood, but practical steps provided tomake this valuable concept accessible and sustainable - in other words - youas a manager needs to know what and how you can do this easily and today.

Is CSR important to SME's?Yes CSR is important, and yes it can help us be more effective, efficient andmost importantly more profitable.

In 2002 a survey of Small-Medium sized Enterprises (SME) attitudes to CSRconducted by MORI sponsored by the DTi, it found that:

A large number of SMEs were already engaged in socialresponsibility where defined as a contribution to the community, relations withemployees and protection of the environment

Training, employment and education were the top priorities for SMEinvestment

SMEs were not yet defining social responsibility as an issue thatcould be integrated into all core business activities.

So why is it relevant?Managers and owners in smaller businesses are often heard asking...

I am increasingly being asked for information on environmental andcommunity issues as part of tendering for contracts and from larger clientsand I dont know where to start.

My business is struggling to recruit, motivate and retain good staff.

How can I ensure that I run an environmentally friendly businesswithout costing me a lot of time and money?

I have a business to run with limited resources, so how can mybusiness benefit?

Corporate Social Responsibility a definition:A responsible business is achieving commercial success in ways that honour


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ethical values and respect people, communities and the natural environment.These businesses minimise any negative environmental and socialimpacts and maximise the positive ones.

Approaches

There are several approaches to Corporate Social Responsibility(CSR)

The Three-P Approach to CSR:

o Level 1: Principles of social responsibility

o Level 2: Processes of social responsiveness

o Level 3: Products (or Outcomes) as they relate to the firm'ssocietal relationships

We need to adopt these as appropriate for our business. For many of us wewill only work at level one with some elements of level 2.

What does a sustainable and responsible company look like?

It is run for and can be seen to be run for the benefit of profit, peopleand planet.

It integrates responsible business practice so that it is built in tobusiness purpose and strategy rather than being a bolt-on to businessoperations.

Employees value it as a great place to work.

Customers and suppliers value it as a good business to do businesswith.

The community values it as a great neighbour.

Investors and financiers value it as worth investing in.

It has a good health and safety record.

It has environmentally friendly premises.


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BENEFITS OF CSR

Stronger Financial Performance and Profitability

Businesses can use CSR and corporate sustainability to produce direct

benefits for the bottom line. For example, operational efficiencies can beachieved through reducing energy and materials as input factors for

production. Wastes can also be reduced and materials can be recycled. These

sorts of actions from eco-efficiency can produce concurrent environmental and

economic benefits for the company and thereby contribute to stronger

financial performance and more positive profitability. Operational efficiencies

can be achieved in other facets of CSR such as streamlining the way that

information is provided to the investment community as well as to other

stakeholders that demand increased transparency. Managing potential risksand liabilities more effectively throughCSR tools and perspectives can also

reduce costs. Using corporate responsibility and sustainability approaches

within business decision-making can result not only in reduced costs but can

also lead to recognizing new market opportunities such as when new

manufacturing processes are developed that can be expanded to other plants,

regions or markets. There are various studies that have examined the

relationship between CSR and corporate financial performance and most of

the evidence suggests that the links are positive.Enhanced Employee Relations, Productivity and Innovation

A key potential benefit from CSR initiatives involves establishing the

conditions that can contribute to increasing the commitment and motivation of

employees to become more innovative and productive. Companies that

employ CSR related perspectives and tools tend to be businesses that provide

the pre-conditions for increased loyalty and commitment from employees.

These conditions can serve to help to recruit employees, retain employees,

motivate employees to develop skills, and encourage employees to pursuelearning to find innovative ways to not only reduce costs but to also spot and

take advantage of new opportunities for maximizing benefits, reduce

absenteeism, and may also translate into marginally less demands for higher

wages.


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Stronger Relations Within Communities Through Stakeholder

Engagement

A key feature of CSR involves the way that a company engages, involves, and

collaborates with its stakeholders including shareholders, employees,

debtholders, suppliers, customers, communities, non-governmentalorganizations, and governments. To the extent that stakeholder engagement

and collaboration involve maintaining an open dialogue, being prepared to

form effective partnerships, and demonstrating transparency (through

measuring, accounting, and reporting practices), the relationship between the

business and the community in which it operates is likely to be more credible

and trustworthy. This is a potentially important benefit for companies because

it increases their "licence to operate", enhances their prospects to be

supported over the longer term by the community, and improves their capacity

to be more sustainable. Companies can use stakeholder engagement to

internalize societys needs, hopes, circumstances into their corporate views

and decision-making. While there are many questions about how far a

companys responsibilities extend into communities relative to the roles of

governments and individual citizens, there is a strong argument that CSR can

effectively improve a companys relations with communities and thereby

produce some key features that will improve business prospects for its future

Improved Reputation and BrandingA potential benefit of CSR is that it can improve a companys reputation and

branding and this in turn improves the prospects for the company to be more

effective in the way that it manages communications and marketing in efforts

to attract new customers and increase market share. CSR as a concept with

various tools can help a company to position itself in the marketplace as a

company that is more responsible and more sustainable than its competitors.


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A Word on CSR as an Investment

CSR can be viewed by businesses as a form of investment that helps to

differentiate a company and its goods and services.

What then is the right way to look at CSR as an investment - particularly giventhat it frequently involves intangible and less quantifiable domains. The bottom

line is that a prudent business may tend to regard CSR in the same way it

treats most investment decisions. It would be inclined to use the same

systematic approach to assess the anticipated benefits and related revenues

relative to the costs that it employs for investment proposals. A rigorous and

systematic approach to CSR investment is likely to yield the most positive

results for both the business and society as it is likely to demonstrate the most

efficient allocation of resources from the perspective of both the firm andsociety.

There are many different areas where a firm can invest to

develop CSR attributes (e.g. human resource management, environmental

protection, health and safety, community involvement, etc.). Investment

decisions on CSR need to take account of various factors and parameters as

well as the anticipated cost and benefit stream to be produced by the

investment.


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CSR focus on:

Policy:Business Principles, Defining your Purpose, Innovation, Know the law,Managing risks, Measuring success, Sharing good practice

What are the theories and business principles which drive successfulbusinesses?Here you can dip into information on the law and its implications for yourbusiness. There is also information about how to measure the intangibles e.g.how can you measure increased customer loyalty? Plus you'll find usefulsignposts and pointers as to where you can find more information on eachtopic.

Practice:Better payment, Developing skills, Diversity, Equality, Health and safety,

Managing resources, Marketing with a cause, Minimising waste, VolunteeringIf you want to save money through managing waste more effectively how doyou go about it? What about health & safety? In a recent survey* 60% of smalland medium sized business owners said that they had been asked about theirpractices in this area by a large corporate customer. Make sure you're onestep ahead of the game and start by reading the guide to health and safetycontained within this section.Stakeholders:Employees, Customers, Suppliers, Communities

Stakeholder is an umbrella term, which covers every group of individuals youdeal with as a business.Here we focus on four stakeholders- your employees, the community, yourcustomers and your suppliers. By listening and talking to these groups on aregular basis you can really improve your business's reputation and it doesn'tcost a fortune.Corporate Social Responsibility (CSR) or Corporate Responsibility is aboutmanaging your business to achieve both commercial and social benefit. Inessence it's about managing your social, community and environmental

impacts to help you improve results, reduce risks and enhance yourreputation. It is also about growing your business in a way that has value foreveryone connected to it.


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MeasuringSuccessFor the majority of SMEs and small businesses, it is not about copying whatthe big companies do, but to use these principles in the way we work. Thismeans treating them as principles, not yet another administrative burden. Someasure themno!

ACC Limited -CSR Activities

Today we define Corporate Social Responsibility as the way a companybalances its economic, social and environmental objectives while addressingstakeholder expectations and enhancing shareholder value.

But ACC has undertaken social volunteering practices almost from itsinception, long before the term corporate social responsibility was coined.The companys earliest initiatives in community development date back to the1940's in a village on the outskirts of Mumbai while the first formal VillageWelfare Scheme was launched in 1952. The community living around many of

our factories comprises the weakest sections of rural and tribal India with noaccess to basic amenities.

Corporate Social Responsibility Policy

The Company shall continue to have among its objectives the promotion andgrowth of the national economy through increased productivity, effectiveutilization of material and manpower resources and continued application ofmodern scientific and managerial techniques, in keeping with the nationalaspiration; and the Company shall continue to be mindful of its social and

moral responsibilities to consumers, employees, shareholders, society and thelocal community.

In pursuance of the above objective, ACC acknowledges the importance ofthe concept of inter-dependence of all sections of society. In particular, itsfocus revolves around the community residing in the immediate vicinity of itsCement Plants and Mines where it seeks to actively assist in improving the


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quality of life and making this community self-reliant. In line with its abidingconcern for preservation of the ecological balance and safeguarding thehealth of the community, ACC has always actively demonstrated its firmresolve to protect the environment

Mindful of its great tradition, ACC is deeply committed to enhancing itsreputation and respect built over the years in industry and society for itsprofessional style of management based on philosophy of the best in businessethics.

Community & Rural WelfareOur community development activities revolve around the under-privilegedcommunity that lives in the immediate vicinity of our cement plants and is thusmore dependent on us. The range of our activities begins with extendingeducational and medical facilities and goes on to cover vocational guidanceand supporting employment-oriented and income-generation projects likeagriculture, animal husbandry, cottage industries by developing local skills,using local raw materials and helping create marketing outlets.At all our cement factories we share our amenities and facilities with membersof the local community. This includes sharing education and medical facilities,sports and recreation. Wherever possible we share access to Bore Wells,drinking water and the usage of colony roads.

Education

Education is imparted not only to children of ACC employees but also moreimportantly to children from rural areas who do not have access to anymedium of information or education. ACC schools maintain high standardsand are open to other children of the vicinity. Often these schools are the mostpreferred centers of learning in the district and adjoining areas. Whereverpossible, ACC provides funds and infrastructure to help set up local schools,colleges and centers for learning and education.

HealthcareACC takes pride in providing various forms of medical assistance to thefamilies of our employees and also to all those living in surrounding villages.Each factory has a medical center with full-fledged doctors and the latest ofbasic equipment. Mobile medical services are provided in the vicinity andregular medical camps are held to eradicate diseases, offer medical help,treatment and preventive care.


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ACC has come out to provide support to state and national health initiativessuch as the eradication of malaria, dengue fever and the dreaded HIV.

The CSR focus, methodology, and impact and businesslinkage of 30 companies IN INDIA

BusinessCompany Type Focus Area Linkage

Bajaj Auto Auto Development of Indirectweaker sections ofsociety

Castrol India Chemicals Strengthens link Indirectbetween business &social investments

Mahindra & Auto-mobile Sharing wealth and Indirect

Mahindra promote primaryeducation

Infosys IT Support and Indirectencourageunderprivilegedsections

ITC FMCG "Citizen First" Indirectwatersheddevelopment program;Empowering Farmers;Greening Wastelandsand Irrigating drylands


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L & T Engg. Enhancing Indirectshareholder valueand responsibilityfor welfare ofsociety at large

Dabur India Pharma FMCG Give back some part Indirectof what Dabur hasgained fromcommunity

BHEL Engg. Community and DirectProduct development

Tata Steel Engg./Metal "Improve the quality Indirectof life of thecommunities itserves."

Wipro IT Learning Enhancement IndirectDisasterrehabilitation

Nestle India FMCG Integrated Indirect

communities where itruns industrial andcommercialoperations

ICICI Financial Empower millions Directeconomically &socially challengedIndians.

Colgate- FMCG Colgate care for the DirectPalmolive community where theylive & work

Britannia FMCG Wadia Group DirectIndustries Community conscious,


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desire to shareprosperity withcommunity.

BPCL Petrochemicals Community Indirect

development

Godrej Engg & FMCG Promoting education, Indirecthousing, socialupliftment,conservation,populationmanagement andrelief of naturalcalamities

Grasim Textile Social and economic IndirectIndustries Engg Chemicals development of thecommunities in whichwe operate

Cipla Pharma Cipla Care Direct

Johnson & Pharma Support good works Direct

Johnson FMCG and charities.

Hero Honda Auto-mobile Do something for Indirectcommunity from whoseland we generate ourwealth

NIIT IT Narrowing the Directdigital divideacross the world,

Zee Telefilms Entertainment being successful is Directto be sociallyresponsible

Dr Reddy's Lab Pharma Prosperity of Direct


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communities integralto success ofcompanies

Satyam Computer IT Contributing to the Indirect

Service well-being anddevelopment ofsociety

Novartis Pharma Treatment for DirectLeprosy

TCS IT Flexible Global Indirectbusiness practices

Citi group Financia l Women empowerment DirectServices

NTPC Power Rehabilitation & DirectResettlement policy,community work,gender equality,Policy of grant ofpaternity leave,

SAIL Manuf. Community Directdevelopment

Hindalco Manuf. Poverty Alleviation DirectProgram

MethodologyCompany Adopted Impact

Bajaj Auto Trust Undertakes long-term Communityprojects in rural areas. Development

Castrol India Rehabilitation of earthquake Community Serviceaffected victims in Gujarat.Castrol Drive for Safety


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Initiative Collegeestablishment

Mahindra & College establishment Nanhi CommunityMahindra Kali (underprivileged girl Development

child) 1% Profit after tax forCSR activitiesFree education for girlsLifeline Express: medicalfacility Free surgeries

Infosys Infosys Foundation provide Successfullymedical facilities to remote implementedrural areas, organizing novel projectspension schemes and aidingorphans and street childrenand rural education programtitled "A library for everyschool", Human CapitalEducation index for itsemployees

ITC Through "e-choupal" organizing Supplier andfarmers into water user groups community

that plan and build water- developmentharvesting structures Primaryeducation Livestockdevelopment Social forestryIntegrated watersheddevelopment First to becertified SA 8000 standard

L & T Eco Friendly approach; Create Community Serviceawareness on HIV/AIDS; and and environmentwaste minimization, Health One protectionof the first corporate tolaunch HIV/AIDS program

Dabur India Establishment of Sundesh, NGO RM SupplierPrograms for ecological development


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regeneration & protection ofendangered plant speciesPromoting health and hygieneamongst the underprivilegedthrough Trust and Create

environmental awarenessamongst young minds

BHEL Adopted 56 villages and Benefited overprovided infrastructure for 80,000 people.schools for physicallychallenged children near itsunitsLaunched wind electric Minimizegenerators, solar heating environmentalsystems, solar photovoltaic impact of fossilsystems, solar lanterns and energy products,battery powered road vehicles

Tata Steel Through "Green Millennium" Settlingcampaign planted 1.5 million Sustainabilitysurviving trees Through StandardsEmployment Generation,Building people, education,

health and hygiene

Wipro Through trust: Provide Community Servicerehabilitation to survivorsof natural calamities andEnhancing learning abilitiesof children fromunderprivileged sections.

Nestle India Through Water Conservation, EnvironmentNatural refrigerants replaced protection andozone depleting. Also include community servicesNutrition & health projects,agricultural assistance,education and training, artsand culture, HIV/AIDS


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prevention and donations

ICICI Through initiatives Give CommunityIndia; Shop; Volunteer; developmentand Info change.

Colgate- Free oral care education CommunityPalmolive Through different community developmentprograms

Britannia Welfare of its workers through EmployeeIndustries trust Health care facilities developmentSupport

BPCL Through Health, Rain water Community servicesharvesting, Infrastructuredevelopment, education, HIVHealth care and prevention.

Godrej Three Foundations/Trusts to Employees'contribute to Social, involvementEnvironmental, and Educational in Group'scauses. philanthropicefforts.

Grasim Through "Aditya Birla Centre CommunityIndustries for Community Initiatives and DevelopmentRural Development".Includes education, Health &family welfare, Sustainabledevelopment & livelihood &agriculture & watersheddevelopment, Infrastructuredevelopment & Social causes

Cipla Cipla Foundation Through Dr. Community serviceK. A. Hamied Institute & CiplaCancer Palliative Care Centre

Johnson & Through donations of time, Community Services


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Johnson money and goods. Women's andChildren's Health CommunityResponsibility Access to CareAdvancing Health CareKnowledge Global Public Health

Hero Honda Through Integrated Rural CommunityDevelopment Centre including development: Hospital, Sports complex,Vocational Training Centre,Adult Literacy Mission,Marriages of underprivilegedgirl, Rural Health Care

NIIT Through launch of Community servicesInternational Women's Monthuplifting Indian women,Computer literacy. DevelopedI-Learn Create awarenessabout AIDS

Zee Telefilms Public Service Ads/Fillers Community Servicetelecast to date are:Campaigns on TV

Dr Reddy's Lab Through Environmental: Water EnvironmentaUsage Energy Usage Wastewater l ProtectionDischarge COD & TDS LoadDischarge HW-hazardous wastedisposal GHG emissions

Satyam Computer Specific services through Community ServiceService various development projects

Novartis Free Multi Drug therapy. CommunityCured 4.5 million patients services

TCS Global delivery model: Global 35 Countriesdeployment & delivery of high benefitedvalue services


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Citi group Rehabilitation Education Community servicesHealth Benefited statesAP,TN, Karnataka,Kerala,

Maharashtra, MP

NTPC Founded Global Compact Society Community servicesfor India in 2003

SAIL AIDS awareness Education CommunityMedical facilities and health developmentDevelopment of small scale/ancillary industries

Hindalco Agriculture, poultry, Communityfisheries Asian CSR award for developmentIntegrated Rural PovertyAlleviation Program

IT: Information Technology, Pharma: Pharmaceuticals, Manuf.:Manufacturing, FMCG: Fast moving consumer goods.


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Criticisms and concerns

Critics of CSR as well as proponents debate a number of concerns related toit. These include CSR's relationship to the fundamental purpose and nature of

business and questionable motives for engaging in CSR, including concerns

about insincerity and hypocrisy.

Critics concerned with corporate hypocrisy and insincerity generally suggestthat better governmental and international regulation and enforcement, ratherthan voluntary measures, are necessary to ensure that companies behave ina socially responsible manner. CSR could prove to be a valuable asset in an

age of Mergers & Acquisitions, as it helps firms spread their brand name.

current status of CSR in India

As of the year 2000, CSR is fast gaining momentum as an important aspect ofbusiness practice in India. An appreciative quantum of roundtables andnetworks pertaining to CSR are being established and doing good work. Givenbelow are a few of the more prominent examples.There are several bodies now emerging on the Indian scene that focus onissues of CSR. For instance the Corporate Roundtable on Development ofStrategies for the Environment and Sustainable Development - BusinessCouncil for Sustainable Development (CoRE-BCSD) of India is a grouping intotheir operations.Initiated by The Energy and Resources Institute (TERI), CoRE- BCSD Indiaincludes some of the most innovative, some of the largest and also the mostforwardlooking organizations in the country. Subject experts from these corporates

identify and conceptualize projects. A team of industry members and TERIresearchers then works to develop appropriate solutions/strategies for use bythe industry. Currently the Roundtable includes some of the leading Indiancorporates, such as:- The Associated Cement Companies Limited- Bharat Heavy Electricals Limited- Bharat Petroleum Corporation Limited


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- Century Textiles & Industries Limited- Gas Authority of India Limite- Gujarat Ambuja Cements Limited- Hindustan Lever Limited- Infrastructure Leasing & Financial Services Limited

- ITC Limited - Paper Brands & Speciality Papers Division


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CONCLUSION

The concept of corporate social responsibility has gained prominence

from all avenues. Organizations must realize that government alone

will not be able to get success in its endeavor to uplift the

downtrodden of society. The present societal marketing concept ofcompanies is constantly evolving and has given rise to a new

concept-Corporate Social Responsibility. Many of the leading

corporations across the world had realized the importance of being

associated with socially relevant causes as a means of promoting

their brands. It stems from the desire to do good and get self

satisfaction in return as well as societal obligation of business.

The Indian corporate sector spent US$ 6.31 billion on social

expenditure during 2007-08, up from US$ 3.68 billion spent during

the previous fiscal. The Steel Authority of India Ltd (SAIL), the

country's largest steel company, spent US$ 21.05 million on CSR last

year; Tata Steel Ltd, (which runs a 850-bed hospital and rural projects

in 800 villages around Jamshedpur), spends about US$ 31.58 million

as part of its annual revenue expenditure. Now there are plans to also

introduce CSR in the small and medium enterprises (SME) sector to

increase its reach in remote areas.

Corporate Social Responsibility in India : Past, Present And

Future

Business houses and corporate have been taking up social welfareactivities from time to time. Recently, priority of business is gettingwidened from 1 P to 3 Ps by inclusion of People and Planet withProfit. Short-term, charity-based welfare interventions are beingreplaced by long-term, empowerment-based Corporate SocialResponsibility (CSR). Based on the realization, Business cannot

succeed in a society that fails, CSR is being considered as animperative for carrying on business in the society rather than as acharity. While CSR is relevant for business in all societies, it isparticularly significant for developing countries like India, wherelimited resources for meeting the ever growing aspirations anddiversity of a pluralistic society, make the process of sustainabledevelopment more challenging. CSR interventions based on


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commitment, mobilization of employees-voluntarism, innovativeapproaches, appropriate technology and continuing partnership have been making lasting differences in the life of the disadvantaged.Further, synergy of corporate action with the government and the civilsociety are making the CSR interventions more effective and

facilitating the corporate carrying on business in the society. Coveringa wide range of subjects from theory to practice, this book hasoutlined steps to be taken by the major stakeholders the Corporate,the Government and the Civil society- for making CSR effective in theIndian context. Based on case studies and best practices, thishandbook on CSR seeks to provide valuable insights and pragmaticsolutions to the corporate managers. It will be of interest togovernment officials, NGOs and media and helps in makingdevelopment sustainable in general and growth inclusive in particular

Nikhil Repot on Csr

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