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-Chandan Priyadarshi
-Parvez Rangwala
-Sainatth Wagh
-Shagoon Panda
-Sudhish Warrier
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I think many people assume, wrongly, that a company existssimply to make money. While this is an important result of acompanys existence, we have to go deeper and find the realreasons for our being. As we investigate this, we inevitably
come to the conclusion that a group of people get togetherand exist as an institution that we call a company so thatthey are able to accomplish something collectively that theycould not accomplish separately they make a contributionto society, a phrase which sounds trite but is fundamental.
- Dave Packard
Co-founder of Hewlett Packard , 1939
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CSR = Corporate + Social + Responsibility
Analyzing the inter-dependent relationshipsbetween businesses and economic systems,and the communities
Involves a business identifying its stakeholdergroups and incorporating their needs and
values within the strategic and day-to-daydecision-making process.
A much more holistic approach to business
CSR ????
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What it is not?
Not a legal or regulatory obligations
individuals and corporations face.
Not about pursuing the CEOs pet interest and
saving the whales
Should be distinguished from concepts such
as strategic philosophy and cause-relatedmarketing
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Why CSR?
profit
Society
Infrastructure
inter-dependence and a meansof delivering
Moral
holistic approach
real point of differentiation andcompetitive market advantage
Examples: corporate governance,patriotism, fair trade diversity inthe workplace.
Economical
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Triple bottom line by
John Elkingston
People
Planet
Profit
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IS CSR Relevant???
YES
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Significance of CSR
CSR
IncreasingAffluence
ChangingSocial
Expectations
Globalizationand FreeFlow of
Information
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Steps to implement CSR
Ensure commitment from top management and keep CEO
informed throughout the communication.
Appoint CSR strategic decision making level to manage all the
CSR activity. Develop relationships with stakeholder groups and interests(
specially NGOs).
Incorporate Social or CSR audit within companys annual
report.
Any anonymous feedback will ideally help to improve CSR
activities more efficiently.
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Key Motivators
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Contd
National Drivers DescriptionCultural tradition CSR often draws strongly on deep-rooted
indigenous cultural traditions of charity, business
ethics.
Political reform CSR cannot be divorced from the socio-political
policy reform process, which often drives business
behaviour towards integrating social and ethical
issues.Governance gaps CSR helps to provide all the social services which
are not done due to government lethargy
Crisis response CSR responses can be catalysed by economic,
social, environmental, health-related or industrial
crises.
Market access CSR may be seen as a bridge for companies indeveloping countries trying to access markets in
the developed world.
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Contd
International Drivers DescriptionInternational Standardization CSR codes, guidelines and standards are a
key driver for companies wishing to
operate as global players.
Investment Incentives CSR is given an incentive by trend of Socially
Responsible Investment, where funds are screenon ethical and environmental criteria
Stakeholders Activism CSR is often encouraged by the activism of
stakeholder, to address the perceived failure of
market and government policy.
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KarmayogCSR Ratings
K armayog is the Convenor of the NGO Council, which has an MoU with BMC
to collaborate on civic issues. It also partners with the Anti-CorruptionBureau in a "Mumbai - Pact Against Corruption" Program.
K armayog is a free platform for the Indian nonprofit sector & for
addressing civic issues in Mumbai.Formed on August 22, 2005.
The basic premise of K armayog to rate the companies on their CSR activityare:
The steps taken by the organization to minimize the harmful effects causedby its process or product usage.
The extra step taken for the benefit of the people and environment.
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Contd..
The three mandatory recommendations flowing from the premise that every company must do CSR and these are:
A company must spend 0.2% of its annual sales on CSR.
A company must publish its CSR activities in annual report or in
sustainability report. International guidelines for Environment, Health and Safety as well
as for industry-specific processes exist, and a company must adopt these along with using its core competence for CSR, and must linkCSR to its physical location and reach.
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Importance of rating to stakeholders
To get a snapshot of state of CSR in India.
To set benchmarks for companies to follow.
To highlight best practices of CSR.
To work with government and NGO for the betterment of society.
To recognize companies doing good CSR activities by awardingthem.
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Advantages
Balances corporate power with responsibility.
Promotes long term profit
Corrects social problems caused due to business.
Discourages government regulation. Responds to changing stakeholders demands.
It differentiates the company from its competitor
and can be a source of competitive advantage. It aids the attraction and retention of staff
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Disadvantages
Excessive Costs.
Managers have no right to give away the money
of owners.
Directors have a legal obligation to manage thecompany in the interest of the shareholders-and not
for other stakeholders
To attract quality workers it is necessary to offer
better pay and conditions and this leads to a risein standards of living and wealth creation.
Costs will be passed on to customers.
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Indian Context
CSR in India is in a very nascent stage
Reasons - A lack of understanding,
inadequately trained personnel, nonavailability of authentic data and specific
information on the kinds of CSR activities,
policy etc. further adds to the non-reach and
ineffectiveness of CSR programmes.
But situation is changing.
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CSR for PSU in India
The Department of Public Enterprises (DPE) is in the
final stage of preparing guidelines for the central
public sector enterprises (CPSEs) to take up
important CSR projects.
Those earning net profit of more than Rs 100 crores
may be asked to contribute up to 2% of the amount.
The obligations of CSR activities would be set in theMemorandum of Understanding, which sets targets
for an individual CPSE detailed Business Standard
link
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CSR for PSU in Indiacontd
The PTI reports on Feb 10,2010, that CSR of PSUs
may be funded by 2-5% of net profit
This fact can be applied to an example of Ministry of
Steel announcement on 29th March,2010 and thethrust can be further reinstated by this article click
here
The Ministry advised the PSUs to undertake a benefit
analysis and impact of the CSR programmes
conducted during the year 2008-09 for better focus
in future.
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Some Examples Infosys Healthcare , Social Rehabilitation
and Rural Upliftment, Cancer Institue
Wipro Olcott Memorial School in
Besantnagar, ICICI ICICI Foundation
Microsoft - Shiksha
ITC E Choupal Mahindra Nanhi Kali
HUL Shakti
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ITC
ITC-Welcomgroup has employed persons with
disabilities (PWD)
Improved Access Audits
Making things easier for the PWD
Empowering them by ingraining confidence
through training programs.
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Business Case
They have been able to widen the pool of recruits,
which is especially useful where the skill pool is
limited or employees are in short supply.
Disabled people are as productive and reliable asother employees
Disabled people in work tend to have better
attendance records, stay with employers longer
and have fewer accidents at work.
Most only require minimal and very basic
adjustments at work.
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Business Casecontd
Staff morale and team development are enhancedwhen businesses are seen to be equal opportunity
employers.
They have been able to retain employees valuable
skills, experience and expertise within theorganisation.
Organisations accessible to disabled customers are
more accessible and appealing to all consumers and
stake holders.
Improves the public image of the organisation by
showing that, apart from economical benefits, it also
pursues social objectives.
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Making it Work
STEP 1
± Skill Matching Identifying suitable jobs
± Skills Charting/
Skill Matrix
STEP 2
± Recruitment Policy
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STEP 3
± The Selection Process
± Application Forms
STEP 4
Shortlisting
Interview
Making it Work
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WORKPLACE ADJUSTMENTS
Working arrangements Telecon, videocon,
work from home or cut down health impact
on traveling.
Working hours
Equipment and personal assistance through to
major alterations to the building.
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Mahindra & Mahindra Ltd
Income 2005-2006 =Rs 7000 crores (rounded
off)
Net profit before tax (05-06)= Rs 500 crores
(rounded off)
Contribution to CSR - In 2005, it pledged to
dedicate 1% of its profit (after tax), on a
continuous basis towards Corporate SocialResponsibility.
Karmayog CSR Rating :3/5
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CSR Activities of Mahindra
A unique kind of ESOPs
To provide free cochlear implants to 60
profoundly hearing-impaired, under-privilegedchildren.
Impetus to the Nanhi Kali project for the girlchild and the Mahindra All India Talent
Scholarship for the economicallydisadvantaged - they plan to set up twoMahindra Pride Schools.
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K. C. Mahindra Education Trust ± Established by the late Mr. K. C. Mahindra in 1953, the K. C. Mahindra
Education Trust aims to 'Transform the lives of people in India througheducation, by providing financial assistance and recognition to them,across age groups and across income strata.
Mahindra Academy ± Mahindra Academy at
Malad in Mumbai, Mahindra Academy in Zaheerabad and a school inKhopoli.The establishment of these schools has not just benefitedtheir employees but also the community around these schools.
Disaster Relief - Mahindra Foundation
Environmental relief Transformed 3 MunicipalGardens ± The Shivaji Garden (near Gateway of India)
± The Traffic Island Garden (opposite Regal Cinema)
± Garden near Madame Cama Road, to the south of Oval Maidan.
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C.S.R During Recession
Companies can contribute to society with cash orproducts, giving away grants, goods, or their services
to schools, homeless shelters, hospitals etc.
Second, companies can focus their CSR on community
involvement, by supporting employees who mentorstudents or volunteer for a myriad of causes.
And third, companies can put CSR into their product
and service strategies, focusing on green initiatives, forinstance, or factoring environmental concerns into
their manufacturing processes.
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Contd.Build brand through total wealth creation:
Develop your brand based on maximizing the
wealth of all stakeholders through effective
community investment and pro-poor development
projects, to foster respect for the brand during aperiod of financial hardship.
Become more strategic : Making the economic case
for CSR investment will be more important thanever. Projects should be able to demonstrate clear
returns and value for money.
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Contd.
Develop environmental projects focusing oneconomic exclusion: Letting environmental issues
slip in the face of other priorities is not the answer;
instead, environmental projects should seek to be
more inclusive or target economically deprived
areas.
Partner more effectively : increasing government
involvement can ease project funding demands and
help fit better into integrated national strategies.
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Future Scope
T
he following five key megatrends highlight whythe business case for CSR will continue to grow:
Globalisation Global business, local CSR
Companies that lead the field in CSR often have a
competitive advantage over their rivals; in an
increasingly moral economy product features like
fair trade can be a powerful value-adding feature.
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Contd.New consumption patterns:
Over the past years consumption has changeddramatically. Environmental awareness, rising healthconcerns, and a widespread call for efficiency havefostered consumers that long for more sustainable and
healthy lifestyle.
Changes in the world of work winning the war fortalent : The worldwide war for talent will continue to
expand. The modern worker is much more mobile, andqualified workers are increasingly scarce. Companiesmust provide the right incentives to retain and attractemployees.
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Contd.Energy and resources Towards sustainable
business: Until 2030, global energy demand ispredicted to grow by 55 percent. At the same timethe amount of available resources will continue todecline. By 2025, the number of people living withextreme water scarcity will rise to a quarter of theworlds population.
Climate change and environmental pollution Finding solutions : Climate change is perhaps thebiggest social, economic and environmentalchallenge facing the planet.
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Thank You !!