Specialisation H2-59

8/7/2019 Specialisation H2-59

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DECLARATION

I hereby declare that the project report entitled Corporate Social responsibility- A study , is my

original work and it has not been submitted any where before. The findings in the report are based on the

information collected by me during the study.


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Date:

INDEX

S.No CHAPTER Page No.

1 Introduction 5

6

6

6

7

1 .1 Introduction

1 .2 Objectives & Logic behind the study

1 .3 Methodology

1 .4 Scope of the study & Limitations of the study

2 Review of literature 8

9

10

1 2

1 3

1 6

1 9

2.1 Evolution of Corporate Social Responsibility

2.2 Introduction to Corporate Social Responsibility

2.3 Models of Corporate Social Responsibility

2.4 The Interest Groups

2.5 Why social responsibilities of business?

2.6 Reasons behind corporate social responsibility


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2.7 What to consider when starting a CSR strategy? 2 0

21 2.8 Benefits of corporate social responsibility to business

3 Corporate social responsibility of different companies 22

23

29

34

3.1 Reliance Corporation

3.2 Mahindra & Mahindra

3.3 Standard Chartered

4 Findings and Conclusion 4 0

41

42

4.1 Findings

4.2 Conclusion

5 Bibliography 44

CHAPTER 1


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INTRODUCTION

1.1 INTRODUCTION

Corporate Social Responsibility(CSR) covers all aspects of corporate governance. It is about

how companies conduct their business in an ethical way, taking account of their impact

economically, socially, environmentally and in terms of human rights. This moves beyond

traditional business stakeholders such as shareholders or local suppliers. CSR includes social

partners such as local communities, and global responsibilities such as protecting the

environment and ensuring good labour standards in overseas suppliers. CSR also includes

relationships with employees and customers. It inevitably involves working in partnership with

other organisations or groups. It can be seen as a form of strategic management, encouraging

the organisation to scan the horizon and think laterally about how its relationships will

contribute long-term to its bottom line in a constantly changing world.

1.2 OBJECTIVES & LOGIC BEHIND THE STUDY

OBJECTIVES

y To study the different aspects of corporate social responsibility


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y To study the different activities carried out by different companies with regards to

corporate social responsibility

LOGIC BEHIND THE STUDY :

Today a lot of premium companies are undertaking corporate social responsibility initiatives tocontribute towards the society, to support stakeholders interest, to build their brand image, for long run success, for future development and growth and for financial and non-financial aspects.

Businesses undertaking corporate social responsibility can build goodwill among the societywhilst contributing towards it. Companies can earn many intangible benefits by carrying out suchactivities.

1.3 METHODOLOGY :

This study is a descriptive and analytical study. The data has been collected from secondarysources internet, journals, magazines and books. This data has been reviewed, and specific &valuable findings are compiled to fulfill the objectives of the study.

1.4 SCOPE OF THE STUDY & LIMITATIONS OF THE STUDY

SCOPE OF THE STUDY:

This study is confined to four companies namely Reliance, Satyam, Mahindra and Mahindra andStandard Chartered.

LIMITATIONS OF THE STUDY :

- The study could not be done in a detailed way because of time constraint.

- The data is collected from secondary sources.

- The study is confined to 4 companies namely, Satyam, Reliance, Mahindra and Mahindraand Standard Chartered Bank.


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CHAPTER 2


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REVIEW OF LITERATURE

2.1 EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY

The concept of corporate social responsibility is not brand new; however it has evolvedconsiderably in the last few decades since the phrase corporate social responsibility was coinedin 1 953 with the publication of Social Responsibility of Businessmen by Howard R. Bowen.

The phrase has been in wide use since the 1 960 s and through the 7 0 s and 80 discussion of theconcept grew. Around the same time, big international companies also faced anti-corporatesentiments because of environmental and human rights issues. In fact, companies faced largescale boycotts of their goods and services to force change.

Though initially CSR was seen as the moral responsibility of corporate managers, it is nowincreasingly being accepted as being in the long term interest of corporations. Organisations aswell as consumers are recognizing that companies have a responsibility not only to their shareholders, but also to stakeholders including their employees, consumers, suppliers,communities, legislators and the environment. CSR now represents an organisations contributionto these stakeholders, the society at large and increasingly the global society in which they


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Social Responsibility of business refers to what business does over and above the statutory

requirement for the benefit of the society. The word responsibility emphasizes that the

business has some moral obligations towards the society. The term corporate citizenship is also

commonly used to refer to the moral obligations of the business towards the society. It implies

that like individuals, corporate are also the part of the society and their behavior shall be guided

by the social norms. Social Responsibility has been defined by Davis as follows:

Social responsibilities refer to businessmans decision and actions taken to reason at least

partially beyond the firms direct economic or technical interest.

In addition, some other aspects have been encompassed by Andrews. According to him, By

social responsibility, we mean the intelligent and objective concern for the welfare of the society

that restrains individual and corporate behavior from ultimately destructive activities, no

matter how immediately profitable, and leads in the direction of positive contributions to human

betterment, variously as the latter may be defined.

Philip Kotler defines corporate social responsibility as: Corporate social responsibility (CSR)is a commitment to improve community well-being through discretionary business practices and

contributions of corporate resources.There has been a growing acceptance of the plea that

business should be socially responsible i.e. it should discharge its duties and responsibilities

in enhancing the welfare of the society of which it is an integral part.


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2.3 MODELS OF CORPORATE SOCIAL RESPONSIBILITY

There are some models, which endeavor to describe the evolution and extent of social orientation

of companies.

Carrolls Model: Carroll defines CSR as a range and obligations a business has towards the

society. There are four categories of the obligation.

Discretionary Resp.

Ethical Resp.

Legal Resp.

Economic Resp.


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Economic Responsibility: A firm being an economic unity, this is its prime responsibility, i.e. to

satisfy the economic needs of the society through generating surplus and investing in development

of the society.

Legal Responsibility: A company performs this because it is bound to obey the law and the

legal system.

Ethical Responsibility: Business organization is expected to undertake these though they are

not mandatory. These include not restoring to unfair trade practices, not cheating the

customer, etc.

Discretionary Responsibility: It refers to the voluntary activities undertaken by theorganization for social development programs.

These levels of responsibilities was named as Pyramid of Corporate Social Responsibility

Ackermans model:

Also described that CSR done by a company generally spreads over three phases:

FIRST where the top management recognizes the existence of social problem,

which deserves attention and acknowledges the companys policy towards it by

making an oral or written statement.

SECOND phase is where the Co. appoints staff specialists or external consultants

to study the problem and suggest ways of dealing with it. THIRD phase involves the implementation of the social responsibility programs.

2.4 THE INTEREST GROUPS

Social Responsibility requires the identification of various interest groups, which may

affect the functioning of a business organization and may also be affected by its functioning.

Normally various groups associated with a business organization are shareholders, workers,

customers, creditors, suppliers, government and society in general. The management owes


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responsibility towards all these groups. Therefore, management should show a standardized

norm of behavior.

Shareholders: The first responsibility of the management is to protect the interest of

shareholders. The interests of majority of shareholders and large minority of shareholders are

generally well protected through either direct participation in the management actions or they

have real power to intervene, if necessary. They should be informed about the functioning of the

organization adequately and timely. Therefore, management has a responsibility to provide

proper safeguard to the money invested by shareholders.

Workers: Workers have direct interest in an organization because by working there, they satisfy

their needs. Thus, it is the managements responsibility to protect the interest of workers in the

organization. This can be done by the management in the following ways: Management should treat workers as another wheel of the cart

Management should develop administrative process in such a way that promotescooperative endeavor between employers and employees.

The management should adopt a progressive labor policy based on recognition of

genuine trade union rights participation of workers in management, creating a sense

of belongingness, improving their living and working conditions.


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Management should pay fair and reasonable wages and other financial benefits to

workers.

Customers: Management owes a primary obligation to give a fair deal to the customers. This

can be done in the following ways: Customers should be charged a fair and reasonable price. The supply of goods and services should be of uniform standard and of reasonable

quality. Management should not indulge in profiteering, hoarding, or creating artificial

scarcity. Management should not mislead the customers by false, misleading and exaggerated

advertisements.

Creditors, Suppliers and Others: They affect the organization in various ways. Therefore, the

management is responsible to fulfill its obligations towards them. This can be done in the

following ways. Management should create healthy and cooperative inter business relationship

between different businesses. Management should provide accurate and relevant information to creditors and

suppliers. Payments of price of materials, interest on borrowings, other charges should be

prompt.

Government: It is very closely related with the business system of the country. It provides

various facilities for the development of business. Government, no doubt, exercises control over

business, but these controls are meant for overall development of business. Management can

discharge its obligation to government by:

Management should be a law-abiding citizen Management should pay taxes and other dues fully, timely & honestly. It should not corrupt government workers and public servants and the democratic

process


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It should not buy political favors by any means

Society: Organizations exist within a social system and get facilities from the system. Therefore,

they owe obligations to the society as a whole. This can be done by: Management should maintain fair business policies and practices. It should play a proper role in civic affairs. It should provide and promote general amenities and help in creating better

living conditions in general.

2.5 WHY SOCIAL RESPONSIBILITIES OF BUSINESS?

Why business should be concerned about social responsibilities? is a question that has

attracted the attention of many thinkers, both from academics as well as from practitioners.

There have been arguments and counterarguments in favour of and against social

responsibility of business.

Arguments against Social Responsibility:

1. Profit maximization: The first and the most important argument against CSR is that a

business organizations primary objective is profit maximization. Since business operates

in a world of poverty and hunger, the economic efficiency of the business is a matter of

top priority and should be the sole mission of business. Its function is economic and not

social and economic values should be the only criteria used to measure success.

2. Society has to pay the cost: Another argument is that the costs of social responsibility will be

passed on to the society and it is the society, which has to bear its cost. The question is whether

the society can afford these costs?


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3. Avoidance of Government Regulation: It seeks to regulate business in the public interest.

Government regulation is costly and denies the much needed freedom in decision-making. Before

government stretches its long arms, business should discharge its obligation to society.

4. Business has the Resources: Another argument for social responsibility is that business

has a vast pool of resources in terms of men, talents, fictional expertise and money.

Probably, business is without peers in respect of the resources it possesses. With these

resources at its command, business is in a better position to work for social goals.

5. Prevention is Better than Cure: If business delays dealing with social problems now, it

may find itself constantly occupied with social problems now, it may find itself

constantly occupied with putting out social fires so that it has no time to accomplish its

goal of producing goods and services. Since these social problems have to be dealt some

time, it is actually more economical to deal with them before they develop into serioussocial breakdowns that consume management time.

6. Citizenship argument: If individual members of society have an obligation to improve

society, corporations also have this responsibility. After all, corporations unlike citizens

are created by the society. Corporations are citizens and citizens have civic duties and

responsibilities.

The proponents of social responsibility say that the old concept of profit maximization has

vanished and even economists have accepted it. They have substituted profit maximization

with satisfactory profit. Today, business decision making is a mixture of altruism, self

interest and good citizenship. Managers do take actions, which are in the social interest even

though there is a cost involved and the connection with the long-range profit is quite remote.

Therefore, the responsibilities of a business can be represented as follows:

Social

Concern

Economic

Concern

Mutual

Concern


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The figure shows that though there may be some cleary distinct economic and social goals of

an organisation, there is always a common area. This is the area that provides a realistic view of

the social responsibility of a business

2.6 REASONS BEHIND CORPORATE SOCIAL RESPONSIBILITY

CSR has grown in importance in recent years, often through public scandals and mis-

management. This has meant increased demands from customers, employees, statutory bodies

and the general public for detailed information about whether companies are meeting acceptable

standards. Increasingly companies have to take account of how their actions impact on society.

The employer brand has become an important way to add value but it is also more vulnerable

to scrutiny and suspicion. Bad publicity travels fast through communication channels which areoften out of organisational control such as the Internet.

CSR is an issue in which we all have a stake. Our actions today will influence the lives of future

generations through for example, trying to protect the environment. It is changing the way

business is done.


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Being proactive about CSR will increasingly provide a competitive advantage both externally

through protecting company reputation and the accompanying publicity, and internally through

employee engagement. To really do CSR businesses need to accept that they dont exist in a

vacuum but operate in a wider community that has an impact on their, and others, futures.

When CSR is done well, it means a precious, though precarious, trust in your business.

Successful CSR can bring benefits such as a distinct position in your marketplace, protecting

your employer brand, and building credibility and trust with current and potential customers and

employees. It can help significantly with recruitment, engagement and retention of employees.

2.7 WHAT TO CONSIDER WHEN STARTING A CSR STRATEGY?

Clarify your core values and principles. Make sure you know who your key internal and external stakeholders are and which

issues affect your relationship with them.

Get the top team on board, and know how to sell the benefits of CSR to different

stakeholders. Understand how the CSR strategy is aligned to your business strategy and HR practices.

Get endorsement for the CSR strategy from inside and outside your organisation. Communicate consistently. Training is vital, as CSR will only have an impact if employees are engaged: attitudes or

behaviour wont change otherwise.


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Effectively measure and evaluate CSR, otherwise the time, effort and money invested are

based on assumptions, not results.

2.8 BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY TO BUSINESS

CSR is not just about doing the right thing. It also offers direct business benefits.

y Building a reputation as a responsible business sets a business apart. Many consumers

prefer to buy from ethical businesses. Companies often favor suppliers who demonstrate

responsible policies as this helps them to minimise the risk of any damage to their own

reputation.y A good reputation makes it easier to recruit employees.y Employees stay longer, reducing the costs and disruption of recruitment and retraining.y Employees are better motivated and more productive.

y CSR helps ensure the company comply with regulatory requirements.


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y Activities such as involvement with the local community are ideal opportunities to

generate positive press coverage.

y Good relationships with local authorities make doing business easier.y Understanding the wider impact of the business can help think up profitable new products

and services.

y CSR can make a company more competitive and reduces the risk of sudden damage to

the reputation (and sales). Investors recognise this and are more willing to finance such

companies.


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CHAPTER 3

CORPORATE S OCIAL RES PON S IBILITY

ACTIVITIES OF DIFFERENT COMPANIES

Three premium companies have been chosen randomly to learn more about corporate socialresponsibility initiatives undertaken by them. These companies are Reliance, Satyam, Mahindraand Mahindra and Standard Chartered.

3.1 RELIANCE CORPORATION

Reliance thinks beyond business. As corporate citizens, they invest in social infrastructure,

believing strongly that their business strength fuels their social contributions. To this end,

Reliance encourages, funds and develops numerous education, health, human capital and

infrastructure initiatives. It has partnered with various social and environmental organizations to

address the issue of sustainable development and social upliftment. The major partners in these


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areas are International Institute for Sustainable Future (IISF), Lion's Club, Rotary Club,

Maharashtra Energy Development Association (MEDA) and various local NGOs.

Educational Initiatives

Aligned with the goals and vision of the management, several educational initiatives have been

proposed / established as leaps into the future. These ventures aim at building confidence,

capacity, global mindsets and communication skills in young people-how they grow will shape

and give direction to the growth of our country.

Reliance is associated with the Indian Institute of Management (IIM), Bangalore and the

Indian Institute of Technology (IIT), Bombay. They have sponsored the participation of over

250 engineers in a customized Management course - MPRE (Management Program for Reliance Engineers) at IIM-Bangalore. They have sponsored 9 1 science graduates and diploma

holders to complete a Reliance Certified Engineering course with IIT-Bombay.

D hirubhai Ambani Institute of Information and Communication Technology (DA-IICT),

Gandhinagar, India. DA-IICT, Gandhinagar, is a statutory university as per an enactment of the

Government of Gujarat in the year 2 00 3. Its status was further acknowledged in November

200

4 when the University Grants Commission (UGC) notified its inclusion in the list of universities maintained under Section 2(f) of the UGC Act.. To meet the rising demand for ICT

professionals Reliance, proposes two new DA-IICTs be established at Kolkata and Srinagar.

D hirubhai Ambani International School, Mumbai. The Dhirubhai Ambani International

School commenced academic sessions in March 2 00 3. The school provides international

educational opportunities in the context of the emerging educational needs of students. The

school prepares students for the Indian Certificate of Secondary Education (ICSE), Cambridge

University's International General Certificate of Secondary Education (IGCSE) and the

International Baccalaureate Diploma (IB) examinations.

Reliance has started a teacher training project called Anand- D ayee Shikhshan with UNICEF

and the Raigad zilla parishad covering all the 25 00 primary schools of the zilla parishad and has


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trained more than 5 000 teachers and officers. Recently Reliance has joined with other corporate

houses to setup a w orld-class business school in India, in association w ith the Wharton and

Kellogg business schools of USA.

Rewards and scholarships

The Dhirubhai Ambani Foundation (DAF) has instituted several rewards and scholars schemes

over the years.

The D hirubhai Ambani SSC Merit Re w ard Scheme and D hirubhai Ambani

Undergraduate Scholarship Scheme encourages and assists district level meritorious students to

pursue professionally oriented higher education. Both the schemes, instituted in June 1 996, are

currently applicable in the states of Gujarat, Maharashtra, Goa and the Union Territory of Diu,Daman, Dadra and Nagar Haveli.

The Reliance Kargil Scholarship Scheme was launched with the generous contribution of

Reliance employees. It continued to support 383 children from 10 3 families of martyrs of the

Kargil war as well as disabled soldiers. In 200 3 a special a w ard and a scholarship scheme have been introduced for district

toppers in the physically challenged category, to help such students obtain equal opportunities in

education.

Healthcare Initiatives

As with education, Reliance stresses one more key contributor to the country's human

index factor - programs and projects in areas of health awareness and management. Along with

other pre-occupations, social infrastructure is foremost in their activities.

Sir Hurkisondas Nurrotumdas Hospital and Research Centre (HNHRC), Mumbai . The

Dhirubhai Ambani Foundation joined the management of Sir Hurkisondas Nurrotumdas

Hospital and Research Centre in December 1 997 with the commitment to restore the hospital

to its erstwhile glory by re-structuring the hospital services and setting up state-of-the-art

technology in the field of healthcare that will conform to international standards.


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The Company has constructed a 6- storey, 100 bed hospital in Mumbai viz. BSES

MG Hospital . The building is spread on a plot of area of 4 0 ,000 sq. ft. This fully equipped

hospital will cater to the needs of the Company's consumers. Apart from general medical

services, specialty services like C T Scan, Stress Test, Intensive Care Unit, etc. will also be

made available to patients. D hirubhai Ambani Hospital, Lodhivali, Raigad. This 82-bed state-of-the-art hospital was

established seven years ago. It has served the population in the industrial and rural areas of

Raigad District, Maharashtra. Besides taking care of hospitalization requirements, the

hospital provides poor patients and senior citizens free outpatient and subsidized inpatient

treatment. It has provided critical intervention in the case of numerous highway accidents and

saved lives by providing prompt, specialized and free life saving treatment. Reliance

provides free trauma care and treats all local people in nearly all area of medicine andsurgery.

COMMUNITY DEVELOPMENT

At all manufacturing locations, care is taken to improve the quality of life in the surrounding

communities. These community development programs focus on key areas of healthcare,

education, child welfare, and infrastructure development. Reliance offers medical services at all

its locations. At Jamnagar Reliance organized community meals programs in surroundingvillages, safety awareness programs to educate villagers in community safety, mobile medical

van service to surrounding villages, multi diagnostic medical camps and a village medical center.

They carried out repairing of village roads, supply of drinking water through water tankers on

need basis.

At Hazira Reliance initiated a major outreach program towards HIV/AIDS and TB intervention,

by the creation of a DOTS (Directly Observed Therapy Short-term) centre. This unique and first

of its kind Public-Private Partnership project, with 4, 1 54 registered patients, has been recognized

by United Nations Development Project (UNDP) and has been widely acclaimed. They are

conducting Eye camps, blood donation camps, a mobile dispensary catering to nearly 1 5,000

patients and a physiotherapy centre for mentally challenged children constituted some of the

other healthcare initiatives at Hazira.


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At Patalganga the Patalganga complex undertook several community health initiatives. These

included organising an HIV a w areness drive benefiting 5 00 tanker drivers, and a blood donation

camp.

THE HARMONY INITIATIVE

Harmony , an initiative of the Dhirubhai Ambani Memorial Trust, is dedicated to the cause of a

growing population of Senior Citizens . The Harmony Interactive Centre, in South Mumbai,

provides a unique opportunity for senior citizens to interact and connect with their peers in a

space of their own. The Centre also aims to sensitize people on issues pertaining to the elderly.

Over 1000 enthusiastic Senior Citizens came together to Celebrate Age in the Harmony

initiated 5kms Senior Citizen Special Run, held in association with the Standard CharteredMumbai Marathon 2 00 5 on January 1 6, 200 5. The event placed the image of senior citizens in

the forefront, helping increase awareness and sensitivity towards them.

OTHER INITIATIVES:

After the devastating cyclone that hit Jamnagar in June1

998, Reliance carried out a large-scalerelief operation that covered the entire Jamnagar city and neighboring villages. Over 2 000 light

poles were erected and within just 3 days power was supplied. 7 medical centers and 4

ambulances carried out medical relief operations throughout the region and free medicines were

also distributed besides supplying essential commodities to the entire area 2 0 standard houses

were handed over to landless labourers of the village.

When the super cyclone devastated parts of Orissa , the Company deputed a team of engineers

with support staff for restoration of electricity in the affected areas. The timely assistancerendered by their team was effective and widely commended. In January 2 001 , immediately in

the aftermath of the earthquake that struck parts of Gujarat , Reliance rushed teams of its

executives; engineers and skilled workforce to the quake affected areas and speedily restored

electricity supply. The Chairman and senior officials of Gujarat State Electricity Board lauded


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the efforts put in by our team. In addition, Reliance organized a 3-day drive for collection of

relief materials in Mumbai, which were immediately dispatched to the affected areas

In the year 2 002 the flood w ater entered the homes of all those who lived at ground level in

D ahanu and their Dahanu plant had to be shut down. Enormous damage was caused due to thisdisaster. The total damage in this region was about Rs. 25crore. In spite of this Reliance went to

help the citizens of Dahanu with clean drinking water and bags of grain were distributed to those

who lived in the affected areas.

Reliance also took up a turnkey contract on no profit basis for the construction of more than six

hundred houses in D udhai of Bhuj district, Gujarat in association with a social welfare

organization. The township was completed in a record period of 100 days and dedicated to the

residents of the village by the Hon'ble Prime Minister. Reliance with contributions from its

employees and matching contribution from the Company constructed a 3 0 -room secondary

school and a community center, the latter also was inaugurated by the Hon'ble Prime Minister.

The Company, in association with Forest Department of the Government of Maharashtra, has

adopted Kainad village as a part of the 'Adopt a Village" Program for its strategy of developing

rural areas. Under the program, Reliance assisted in constructing smokeless 'chullas' (stoves)

and toilet blocks for tribal families and installed photovoltaic streetlights in the village. Duringmonsoon, the Company supplied chlorine in plastic bottles for purification of drinking water to

over 5, 000 tribal community members at Dahanu. When several villages on the banks of Surya

and Vaitarna rivers in Palghar Taluka where the Company's Dahanu Power Station is situated

were flooded, Reliance promptly responded to the calamity and assisted over 8 00 families with

utensils and other essential items. The Company's fire tenders played a major role in dewatering

and cleaning the affected villages.


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labour relations. As a core business value, M&M believes that its human resources are its

richest assets, and thus the wealth generated by the Company must go towards the

enrichment of its people. It follows the following five principles:

Their five golden commandments 1 ) Transparency

2) Local partnership

3) People participation

4) Voluntary work

5) Openness

Mahindra & Mahindra undertakes quite a bit of charitable work, and eventhough the figure against its name shows Rs 1 .3 crore, this is just the amount available

under the head donations in its annual report. Its activities include:

1. KC Mahindra Education Trust

Established in 1 953 by the late K.C. Mahindra, M&M is the main sponsor of the KC

Mahindra Education Trust. The trust's objective is the promotion of education at various

levels, and it is involved in and contributes to various education initiatives.

In 34 schools in India the trust has instituted the Mahindra Search for Talent

scholarships to encourage and reward students who have achieved academic excellence.

These scholarships are awarded every year to over 3 00 students from all over India. These

are students with good scholastic records who come from lower income groups and are keen

on pursuing job-oriented diploma courses.

The trust has also instituted the KC Mahindra Chair at the Institute of Science,Mumbai, since 1 970 to encourage research in the field of nuclear chemistry. Besides, the

trust has established the Mahindra Search for Talent scholarship at the Banasthali

Vidyapeeth, a deemed university in the state of Rajasthan, where it has also recently started


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a management school called Wisdom - Women's Institute for Studies In Development-

Oriented Management.

2. Nanhi Kali

In 1 996 the KC Mahindra Trust kicked off an ambitious program aimed at helping the

underprivileged girl child in India. Christened Nanhi Kali , the project's principal goal is to

promote primary education for the underprivileged girl child in both rural and urban parts of

the country.

The program is implemented with the help of several non-government organizations (NGOs)

and voluntary agencies doing community-based development work. To make the project

more participatory and involving, individual sponsorship is encouraged wherein individual

donors adopt a girl child. The Nanhi Kali project, backed by an encouraging response fromsponsors, currently supports the education and general welfare of over 1 ,700 girl children

through 1 8 NGOs.

The project hopes to reach out to thousands of such underprivileged girls across India to

provide them with opportunities and choices that give them a fighting chance in life.

3. The Mahindra United World College of India

The Mahindra United World College of India (MUWCI) situated about 40

Kilometers to theWest of Pune, was founded in 1 997, as a premier educational institute offering true

international education to students from India and abroad. The global education offered by

MUWCI brings together students of various nationalities for a pre-university degree. The

school is global not only because of the International Baccalaureate degree, but also because

of the true international culture, in which the students study, lives and learns. Each years

batch of about 100 students accommodates about 65 to 7 0 international students. The

students also contribute to the local neighborhood through community service programs as

an intrinsic part of their curriculum.

M&M has in association with the Joseph Cardijn Technical School, a non-aided industrial

training centre affiliated to the Government of India National Council for Vocational

Training, has set up an industrial training centre in Mumbai. The focus of this project is to


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regular feature as are regular social awareness programs on topics such as family welfare,

cancer, aids-awareness, heart care, diabetes and other ailments. Periodic health checks ups

for all employees as well as psychiatric consultation when needed for employees and their

families is provided.

c). HIV/AIDS Prevention and Care Activities - HIV/AIDS activities were started for both

the Automotive Sector as well as Farm. At the Automotive Sector Welfare Centre, the social

workers and counselors initiated dialogue with other business houses such as L&T and

Glaxo. Recognizing the various impacts of HIV/AIDS, a need to develop awareness

initiatives within the respective companies was felt. Thus the Company got involved in

various HIV/AIDS initiatives.

I. Awareness Generation and Training

Awareness activities are carried out in both the divisions along with the staff and members

of the Trade Union. These include information dissemination through exhibitions, posters,

pamphlets, booklets, street play, newsletter articles and interactive discussions with

employees, which provide a platform to the employees to ask questions, clarify,

misconceptions, etc.

Members of the Trade Union are involved very closely in the implementation of the

program and participate actively in the awareness programs. The Company treats them asequal partners. Some of the Trade Union members and staff volunteer their time and skills

for social initiatives. This group, after attending various awareness sessions, expressed an

interest in working on issues of HIV/AIDS. They were given further training on HIV/AIDS,

on motivation and being peer educators, as well as education materials and condoms. The

group since then has been regularly conducting one-to-one as well as group discussions on

HIV/AIDS, providing information to and facilitating referrals for the employees.

II. Condom Distribution and STD TreatmentQuality condoms are distributed free of cost by both the sectors. Condoms are kept at the

Welfare Centres, Family Counselling Centres and the Medical Centre. The Company as a

component of the family welfare programs had initiated condom distribution and promotion.

Later, information about condoms as disease prevention tools was also disseminated.


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III. Advocacy Initiatives:

Personnel from M&M along with others from L&T and Glaxo, were involved in designing

and writing an HIV/AIDS policy guideline for Indian industries entitled, Corporate

Response to AIDS: Policy Guidelines in partnership with Bombay Chamber of Commerceand Industry (BCCI).

IV. General Concern for Environment

A committed separate department monitors the Environment Pollution Control and Effluent

Treatment facilities, re-cycling of effluents and control of stack emissions. The Company

has been the recipient of the prestigious International Award Oscar of the Safety World

the Sw ord of Honour from the British Safety Council, London in 1 993. The Award is

presented to 3 0 best/safest companies in the world over.

Environment protection efforts include developing and maintaining gardens at various

locations in Mumbai the Gateway of India (Shivaji Udayan), Regal Cinema Traffic Island,

a garden near Oval Maidan, including restoration of the boundaries of Oval Maidan, Rajni

Patel Garden and a garden in Ghatkopar near Mahindra Park.

3.3 STANDARD CHARTERED

Standard Chartered employs 38, 000 people in 95 0 locations in more than 5 0 countries in the

Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the

United States of America. Standard Chartered is one of the world's most international banks,with employees representing 8 0 nationalities. Since SCB operates all around the globe and

in such a diverse culture they face a variety of corporate responsibility issues.

In June 2 00 4 SCB carried out an audit of Corporate Responsibility activities through a cross

section of the Banks operations. The audit provided a snapshot of the organizations strength


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and weakness in the area of Corporate Responsibility and covered its approach and

management of Corporate Responsibility related issues and the effectiveness of both its

internal and external communication.

SCB like most of the leading organizers sees Corporate Responsibility as an opportunity tomake its brand stand out. Working on this, SCB has set some goals for itself for the year

200 5 as follows: -

By the end of 2 00 5 it aims to have:

I. An established governance structure for Corporate Responsibility

II. Raised awareness, internally and externally, of its priorities and intentions

III. Corporate Responsibility aspirations that are aligned with its business goals

IV. Established clear goals for all areas overseen by the Corporate ResponsibilityCommittee

V. Actively engaged all its employees in its Corporate Responsibility program to spread

understanding and best practice

VI. Community Partnership around the Globe

VII. Seeing is Believing

S eeing is Believing is one of the major global community programs conducted by SCB. It

was launched in 2 00 3 to help alleviate the issue of blindness across the globe. In first year of

its functioning SCB raised enough money to restore the sight of 56, 000 people. This

achievement exceeded their goal of raising enough to restore sight to 28, 000 people by

World Sight Day on the 9th October 2 00 3.

Due to this overwhelming success, SCB has continued with its program, in partnership with

VISION 2 0 20 the international body for the elimination of avoidable blindness - and

together aim to raise US$ 6 million over the next three years which will help to restore sightof about one million people.

The bank believed in discharging its social responsibility and so as part of the bank's 1 50 th

anniversary in 2 00 3, a global fund raising campaign - 'Seeing is Believing' -- was launched

that aimed to restore eyesight for nearly 3 0 ,000 persons globally (one for each Standard


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Chartered Bank employee). The Bank raised over US$ 1 .44 million globally (enough to

restore eyesight for 56, 000 persons). In India, the Bank raised about US$ 2 00 ,000 from its

staff and customers and is in the process of partnering with several organizations and NGOs

across the country to restore eyesight to over 7,5 00 persons.

LIVING WITH HIV

SCBs Living with HIV program focuses on training all of its 3 0 ,000 plus employees in

more than 5 0 countries on the facts about HIV/AIDS, how it spreads, how it can be

prevented and how to care for those who are infected or affected by HIV.

SCB in through their unique program hopes to take away the stigma attached to HIV/AIDS

in the hope that more people will come forward for testing and treatment, which they also

offer to their staff members. In Botswana for example SCBs work with the youth

organizations has helped to educate people about prevention and treatment. Similarly, in

Malaysia, SCB is working with the student organization, AIESEC, and have trained 3 0

young people who will in turn train a further 3, 000 counselors, thus spreading awareness in

the country.


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Standard Chartered had organized an International Marathon in Mumbai on 1 5th February

200 4, as an innovative platform to bring together the corporate and the NGOs. What

emerged from this initiative was a fun-filled way to channel funds to those in the country

who needed it the most. Like, Give India, the charity partner for the event, raised an

impressive figure close to Rs. 52, 00 ,000 /- for various causes. The funds are now been

allotted to various causes as per the choices of the participants. They range from child

welfare and education to aid for the blind and programs for the elderly.

SCB, through this marathon was able to bring closer donors like ICICI, McKinsey,

celebrities and international sports personality to various NGOs like the Give India and

National association for the Blind (NAB).

The participants of the Marathon began at the start and ended at the finish line. But the funds

generated began at the Marathon and ended in spurring social action for the under

privileged. Following the choice of the donors and the variety of donation options, funds

have found their way to a variety of causes. It took Rs 6 00 to sponsor a mid-day meal for

1 20 children, Rs7 00 to sponsor an artificial limb for a disabled child, Rs2 000 to sponsor a

blind childs education for a year, Rs5 000 to sponsor a set of books and journals for a rural

library and Rs 11 ,250 to sponsor teacher training workshops for 25 women.

The Nation Association for the Blind (NAB) has spread the Marathon generated funds for

cataract operations, Braille presses and rehabilitation activities, while the Children Toy

Foundation is busy formulating nutrition programs, teaching aides, uniforms and libraries

with it. 1 25 children are now assured of an education while 3 0 disabled people will have

access to rehabilitation facilities. Dream a Dream will initiate the Dream Outdoor Program,

aimed at giving disadvantaged children exposure and empowerment through the means of

outdoor activities.SCB will be arranging similar such marathons this year in Nairobi and

Singapore and in Hong Kong the next year.


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ASHRAY CENTRE

In continuing the Bank's pledge for providing support to HIV affected people Standard

Chartered India has recently supported the children of Ashray Centre.

Ashray centre is a local NGO which provides residential shelter for children of 0 -1 2 yearsaffected and infected by HIV /AIDS. A total of 6 0 children are currently housed at the

centre. The Standard Chartered Branch staff donated generously for the mission along with

money that was available out of selling old newspapers. School bags, notebooks and pencil

were donated to each child. And as a token of their gratitude towards the Bank, the children,

all trained by Shiamak Davar, entertained the Banks staff when the staff had visited the

NGO to distribute the gift items.

MOBILE MEDICAL UNIT

The Mobile Medicine Unit sponsored by Standard Chartered Bank to Helpage India has

continued to render primary healthcare at the doorsteps of the poor and needy old persons

living in slums and peripheral villages of Kanpur and Patna in India. During the period of

April to June 2 00 2, a total number of beneficiaries for treatments reached 1 2,52 1 .

Health education and awareness activities were also undertaken by the Mobile Medical Unit

to address eyes related problems and organizes preventive health-checking camps.

Arrangements have also been made under which the patients can be referred for a secondary

level and tertiary level health care. The Mobile Medicine Unit is believed to have fulfilled a

long felt need of the disadvantaged older persons in the society who were otherwise

neglected by the society.

CENTRAL SCHOOL FOR THE EDUCATION OF THE DEAF

The Bank is a strong supporter of the Central School for the Education of the Deaf - a

registered society and public charitable trust founded in 1 966. Its prime concern is to

rehabilitate profoundly and severely deaf children by providing model teaching and training

facilities, both in English and Marathi. In doing so, the School also endeavors to bring

vocational and other employment opportunities, which would otherwise be denied to them,

within the reach of deaf children.


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The Central School for the Deaf has 62 children divided into 6 classes. Education is

imparted to the children free of charge and a school bus service is provided for bringing and

taking the children to and from school. A balanced mid-day meal is also provided to the

children free of cost. Regular medical and dental camps are conducted every year for the

children and follow-up treatment is ensured. The school also offers assistance for the

purchase of the individual hearing aids wherever necessary.

The Bank provides ongoing assistance to the School, through cash donation, as well as the

Standard Chartered Income Fund, in which the Bank's donations and the School's own funds

are invested, and which interest returns fund the School.

PREM DAN

Prem Dan, a charity run by Sister Felicity Morris in Mumbai, has three learning centers for children forced into living on the streets.

Standard Chartered Bank has committed an annual donation for a period of five years

towards the Education and Nutrition Program for the under privileged children in Mumbai.

The children covered under program are provided with a wholesome mid-day meal and are

given free tuition classes to help them cope with their studies. This program has helped the

children because they leave their homes early morning and return home only in the night for

their supper. The program supports around 572 children in four local schools in Mumbai.

VICTORIA MEMORIAL SCHOOL FOR THE BLIND

In 1 995, during the visit to India of Chairman Sir Patrick Gillam, the Bank undertook to

sponsor the refurbishment of the central hall of the Victoria Memorial School for the Blind

in Mumbai.

The school required nearly five years to complete the renovation project, due to the

meticulous care with which the renovation to an 86-year old Heritage building needed to be

carried out. The hall, now complete and known as the Standard Chartered Hall, was

inaugurated by Dr. P. C. Alexander, Governor of the state of Maharashtra, in January 2 001 .


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PRATHAM MUMBAI INITIATIVE

The Bank has made a three-year commitment to Pratham to contribute necessary funds

towards the running of 5 0 balwadis (pre-primary schools) per year.

Pratham is a registered public charitable trust, founded in 1 994, and their successful modelof tripartite collaboration between corporates, government and the voluntary sector is being

replicated in Delhi, Bangalore, Pune, Vadodara, Surat, Ahmedabad and Patna. The model

has three basic elements: supplementing and strengthening the government school system,

working on a city or large regional scale and cost effectiveness expected of a catalyst. The

uniqueness of Pratham is that the organization allows and encourages young executives to

volunteer time to work in their balwadis which are pre-primary classes set up in slum

colonies in Mumbai, with bridge courses and computer-assisted learning centre.

Standard Chartered is the largest donor and supporter of the Balwadi program and the bank

is now exploring the possibility of taking on the role of the 'Leading Organization' in this

ward. Standard Chartered India has increased its involvement with this organization, to

embrace not only donations of funds, but also the inclusion of need-specific contributions,

with the Bank donating old computers and furniture for the Mahila Mandals during the

Pratham Mumbai Initiative in 2 001 .


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4.1 FINDINGS

From the study the following key findings have been derived:

1 . With the passage of time and increased privatization and globalization, the stakeholder model

is gaining more importance.

2. Corporate responsibility is becoming an integral part of the business strategy.

3. Finding creative ways to work in collaboration with the NGOs would help companies to

enhance the corporate image.

4. Companies must focus on their prime responsibility to the shareholders, the owners of the

company.

5. Working within and as part of society is all-important, failing which society will reject the

socially unconscientiously corporation, often sooner rather than later.

6. Corporate social responsibility enables companies to earn various intangible benefits like

creating goodwill, building brand image and supporting the shareholders interests.

7. Reliance, Mahindra and Mahindra and Standard Chartered are some companies who are

actively involved in corporate social responsibility and hence they fall under the category of

premium companies and have a good brand image.


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4.2 CONCLUSION

The concept of corporate social responsibility is not new in India. Right from the pre-

independence times, the Gandhian model has been in practice. Many family owned businesses

continue to engage in philanthropic activities. However with the passage of time and increased

privatization and globalization, the stakeholder model is gaining more importance. Hence,

corporate responsibility is becoming an integral part of the business strategy.

Companies must focus on their prime responsibility to the shareholders, the owners of the

company. In order to sustain such achievements, working within and as a part of society is all-

important, failing which society will reject the socially unconscientiously corporation, often

sooner rather than later. Such are the challenges and opportunities for corporations in quest of

world-class standards of excellence in the twenty first century.


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CHAPTER 5

BIBILOGRAPHY


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Specialisation H2-59

Documents

Transcript of Specialisation H2-59