rishi csr report

8/3/2019 Rishi Csr Report

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1: INTRODUCTION

Corporate social responsibility (CSR, also called corporate responsibility,

corporate citizenship, and responsible business) is a concept whereby organizations

consider the interests of society by taking responsibility for the impact of their activities

on customers, suppliers, employees, shareholders, communities and other stakeholders, as

well as the environment. This obligation is seen to extend beyond the statutory obligation

to comply with legislation and sees organizations voluntarily taking further steps to

improve the quality of life for employees and their families as well as for the local

community and society at large.

The practice of CSR is subject to much debate and criticism. Proponents argue that there

is a strong business case for CSR, in that corporations benefit in multiple ways by

operating with a perspective broader and longer than their own immediate, short-term

profits. Critics argue that CSR distracts from the fundamental economic role of

businesses; others argue that it is nothing more than superficial window-dressing; still

others argue that it is an attempt to pre-empt the role of governments as a watchdog over

powerful multinational corporations.

1.1 DEVELOPMENT

Business ethics is a form of the art of applied ethics that examines ethical principles and

moral or ethical problems that can arise in a business environment.

In the increasingly conscience-focused marketplaces of the 21st century, the demand for

more ethical business processes and actions (known as ethicism) is increasing.

Simultaneously, pressure is applied on industry to improve business ethics through new

public initiatives and laws (e.g. higher UK road tax for higher-emission vehicles).

Business ethics can be both a normative and a descriptive discipline. As a corporate

practice and a career specialization, the field is primarily normative. In academia,

descriptive approaches are also taken. The range and quantity of business ethical issues

reflects the degree to which business is perceived to be at odds with non-economic social

CORPORATE SOCIAL RESPONSIBILITY 1


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values. Historically, interest in business ethics accelerated dramatically during the 1980s

and 1990s, both within major corporations and within academia. For example, today most

major corporate websites lay emphasis on commitment to promoting non-economic

social values under a variety of headings (e.g. ethics codes, social responsibility charters).

In some cases, corporations have redefined their core values in the light of business

ethical considerations (e.g. BP's "beyond petroleum" environmental tilt).

The term CSR itself came in to common use in the early 1970s although it was seldom

abbreviated. The term stakeholder, meaning those impacted by an organization's

activities, was used to describe corporate owners beyond shareholders from around 1989.

1.2 APPROACHES

Some commentators have identified a difference between the Continental European and

the Anglo-Saxon approaches to CSR. And even within Europe the discussion about CSR

is very heterogenous.

An approach for CSR that is becoming more widely accepted is community-based

development projects, such as the Shell Foundation's involvement in the Flower Valley,

South Africa. Here they have set up an Early Learning Centre to help educate the

community's children, as well as develop new skills for the adults. Marks and Spencer is

also active in this community through the building of a trade network with the

community - guaranteeing regular fair-trade purchases. Often alternative approaches to

this is the establishment of education facilities for adults, as well as HIV/AIDS education

programmes. The majority of these CSR projects are established in Africa. A more

common approach of CSR is through the giving of aid to local organizations and

impoverished communities in developing countries. Some organizations do not like this

approach as it does not help build on the skills of the local people, whereas community-

based development generally leads to more sustainable development.



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1.3 AUDITING AND REPORTING

To demonstrate good business citizenship, firms can report in accordance with a number

of CSR reporting guidelines or standards, including:

AccountAbility'sAA1000 standard, based on John Elkington's triple bottom line

(3BL) reporting

Global Reporting Initiative's Sustainability Reporting Guidelines

Verite's Monitoring Guidelines

Social Accountability International'sSA8000 standard

Green Globe Certification / Standard

The ISO 14000 environmental management standard

The United Nations Global Compact promotes companies reporting in the format

of aCommunication on Progress (COP). A COP report describes the company's

implementation of the Compact's ten universal principles.

The United Nations Intergovernmental Working Group of Experts on

International Standards of Accounting and Reporting (ISAR) provides voluntary

technical guidance on eco-efficiency indicators,corporate responsibility reporting

andcorporate governance disclosure.

The FTSE Group publishes theFTSE4Good Index, an evaluation of CSR performance of

companies.

Some nations require CSR reporting, though agreement on meaningful measurements of

social and environmental performance is difficult. Many companies now produce

externally audited annual reports that cover Sustainable Development and CSR issues

("Triple Bottom Line Reports"), but the reports vary widely in format, style, andevaluationmethodology (even within the same industry). Critics dismiss these reports as

lip service, citing examples such as Enron's yearly "Corporate Responsibility Annual

Report" and tobacco corporations' social reports.

http://en.wikipedia.org/w/index.php?title=AccountAbility&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AccountAbility&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AA1000&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AA1000&action=edit&redlink=1http://en.wikipedia.org/wiki/John_Elkingtonhttp://en.wikipedia.org/wiki/John_Elkingtonhttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Veritehttp://en.wikipedia.org/wiki/Social_Accountability_Internationalhttp://en.wikipedia.org/wiki/Social_Accountability_Internationalhttp://en.wikipedia.org/wiki/SA8000http://en.wikipedia.org/wiki/SA8000http://en.wikipedia.org/wiki/Green_Globehttp://en.wikipedia.org/wiki/ISO_14000http://en.wikipedia.org/wiki/United_Nations_Global_Compacthttp://www.unglobalcompact.org/COP/http://www.unglobalcompact.org/COP/http://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)http://en.wikipedia.org/wiki/Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)http://www.unctad.org/en/docs/iteipc20037_en.pdfhttp://www.unctad.org/en/docs/iteteb20076_en.pdfhttp://www.unctad.org/en/docs/iteteb20063_en.pdfhttp://www.unctad.org/en/docs/iteteb20063_en.pdfhttp://en.wikipedia.org/wiki/FTSE_Grouphttp://www.ftse.com/Indices/FTSE4Good_Index_Series/http://www.ftse.com/Indices/FTSE4Good_Index_Series/http://en.wikipedia.org/wiki/Sustainable_Developmenthttp://en.wikipedia.org/wiki/Sustainable_Developmenthttp://en.wikipedia.org/wiki/Evaluationhttp://en.wikipedia.org/wiki/Methodologyhttp://en.wikipedia.org/wiki/Lip_servicehttp://en.wikipedia.org/wiki/Enronhttp://en.wikipedia.org/w/index.php?title=AccountAbility&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AA1000&action=edit&redlink=1http://en.wikipedia.org/wiki/John_Elkingtonhttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Veritehttp://en.wikipedia.org/wiki/Social_Accountability_Internationalhttp://en.wikipedia.org/wiki/SA8000http://en.wikipedia.org/wiki/Green_Globehttp://en.wikipedia.org/wiki/ISO_14000http://en.wikipedia.org/wiki/United_Nations_Global_Compacthttp://www.unglobalcompact.org/COP/http://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)http://en.wikipedia.org/wiki/Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)http://www.unctad.org/en/docs/iteipc20037_en.pdfhttp://www.unctad.org/en/docs/iteteb20076_en.pdfhttp://www.unctad.org/en/docs/iteteb20063_en.pdfhttp://en.wikipedia.org/wiki/FTSE_Grouphttp://www.ftse.com/Indices/FTSE4Good_Index_Series/http://en.wikipedia.org/wiki/Sustainable_Developmenthttp://en.wikipedia.org/wiki/Evaluationhttp://en.wikipedia.org/wiki/Methodologyhttp://en.wikipedia.org/wiki/Lip_servicehttp://en.wikipedia.org/wiki/Enron


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1.4 BUSINESS BENEFITS

The scale and nature of the benefits of CSR for an organization can vary depending on

the nature of the enterprise, and are difficult to quantify, though there is a large body of

literature exhorting business to adopt measures beyond financial ones (e.g., Deming's

Fourteen Points, balanced scorecards). Orlizty, Schmidt, and Rynes found a correlation

between social/environmental performance and financial performance. However,

businesses may not be looking at short-run financial returns when developing their CSR

strategy.

The definition of CSR used within an organisation can vary from the strict "stakeholder

impacts" definition used by many CSR advocates and will often include charitable efforts

and volunteering. CSR may be based within thehuman resources,business development

orpublic relations departments of an organisation, or may be given a separate unit

reporting to the CEO or in some cases directly to the board. Some companies may

implement CSR-type values without a clearly defined team or programme.

The business case for CSR within a company will likely rest on one or more of these

arguments:

Human resources

A CSR programme can be seen as an aid to recruitment and retention, particularly within

the competitive graduate student market. Potential recruits often ask about a firm's CSR

policy during an interview, and having a comprehensive policy can give an advantage.

CSR can also help to improve the perception of a company among its staff, particularly

when staff can become involved through payroll giving, fundraising activities or

community volunteering.

Risk management

Managing risk is a central part of many corporate strategies. Reputations that take

decades to build up can be ruined in hours through incidents such as corruption scandals

http://en.wikipedia.org/wiki/W._Edwards_Deminghttp://en.wikipedia.org/wiki/W._Edwards_Deminghttp://en.wikipedia.org/wiki/Balanced_scorecardhttp://en.wikipedia.org/wiki/Philanthropyhttp://en.wikipedia.org/wiki/Volunteeringhttp://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Business_developmenthttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Boardhttp://en.wikipedia.org/wiki/Business_casehttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Retentionhttp://en.wikipedia.org/wiki/Graduate_schoolhttp://en.wikipedia.org/wiki/Payroll_givinghttp://en.wikipedia.org/wiki/Payroll_givinghttp://en.wikipedia.org/wiki/Fundraisinghttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/W._Edwards_Deminghttp://en.wikipedia.org/wiki/Balanced_scorecardhttp://en.wikipedia.org/wiki/Philanthropyhttp://en.wikipedia.org/wiki/Volunteeringhttp://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Business_developmenthttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Boardhttp://en.wikipedia.org/wiki/Business_casehttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Retentionhttp://en.wikipedia.org/wiki/Graduate_schoolhttp://en.wikipedia.org/wiki/Payroll_givinghttp://en.wikipedia.org/wiki/Fundraisinghttp://en.wikipedia.org/wiki/Risk


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or environmental accidents. These events can also draw unwanted attention from

regulators, courts, governments and media. Building a genuine culture of 'doing the right

thing' within a corporation can offset these risks.

Brand differentiation

In crowded marketplaces, companies strive for a unique selling proposition which can

separate them from the competition in the minds of consumers. CSR can play a role in

building customer loyalty based on distinctive ethical values. Several majorbrands, such

as The Co-operative Group and The Body Shop are built on ethical values. Business

service organisations can benefit too from building a reputation for integrity and best

practice.

License to operate

Corporations are keen to avoid interference in their business through taxation or

regulations. By taking substantive voluntary steps, they can persuade governments and

the wider public that they are taking issues such as health and safety, diversity or the

environment seriously, and so avoid intervention. This also applies to firms seeking to

justify eye-catching profits and high levels of boardroom pay. Those operating away

from their home country can make sure they stay welcome by being good corporate

citizens with respect to labour standards and impacts on the environment.

1.5 CRITICAL ANALYSIS

CSR is entwined in the strategic planning process of many multinational organizations.

The reasons or drive behind social responsibility towards human and environmental

responsibility whether driven by ulterior motives, enlightened self-interest, or interests

beyond the enterprise, is subject to much debate and criticism.

Some critics argue that corporations are fundamentally entities responsible for generating

a product and/or service to gain profits to satisfy shareholders. Milton Friedman and

others argue that there is no place for social responsibility as a business function. These

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critics point to the rule of corporate law that prohibits a corporation's directors from any

activity that would reduce profits.

Other critics argue that the practice cherry-picks the good activities a company is

involved with and ignores the others, thus 'greenwashing' their image as a socially or

environmentally responsible company. Still other critics argue that it inhibits free markets

or seeks to pre-empt the role of governments in controlling the socially or

environmentally damaging effects of corporations' pursuit of self-interest.

Disputed business motives

Some critics believe that CSR programmes are often undertaken in an effort to distract

the public from the ethical questions posed by their core operations. Examples of

companies that have been accused of this motivation include British American Tobacco

(BAT), which produces major CSR reports, and the petroleum giant BP, which is well-

known for its high-profile advertising campaigns on environmental aspects of its

operations.

Self-interest

Some CSR critics argue that the only reason corporations put in place social projects is

for the commercial benefit they see in raising their reputation with the public or with

government. They suggest a number of reasons why self-interested corporations, solely

seeking to maximise profits, are unable to advance the interests of society as a whole.

They point to examples where companies have spent a lot of time promoting CSR

policies and commitment to Sustainable Development on the one hand, whilst damaging

revelations about business practices emerge on the other.

For example, the McDonald's Corporation has been criticized by CSR campaigners for

unethical business practices and was the subject of a decision by Justice Roger Bell in the

McLibel case which upheld claims regarding mistreatment of workers, misleading

advertising, and unnecessary cruelty to animals. Similarly Shell has a much-publicised

CSR policy and was a pioneer in triple bottom line reporting, but was involved in 2004 in

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a scandal over the misreporting of its oil reserves which seriously damaged its reputation

and led to charges of hypocrisy. Since this has happened, the Shell Foundation has

become involved in many projects across the world, including a partnership with Marks

and Spencer(UK) in three flower and fruit growing communities across Africa.

These critics generally suggest that stronger government and international regulation,

rather than voluntary measures, are necessary to ensure that companies behave in a

socially responsible manner.

Other views from this perspective include:

Corporations really care little for the welfare of workers or the environment, and

given the opportunity will move production to sweatshops in less well-regulated

countries.

Companies do not pay the full costs of their impact. For example, the costs of

cleaning pollution often fall on society in general. As a result profits of

corporations are enhanced at the expense of social or ecological welfare.

Hindrance of free trade

These critics are generally supporters of Milton Friedman, who argued that a

corporation's principal purpose is to maximize returns to its shareholders, while obeying

the laws of the countries within which it works. Friedman argued that only people can

have responsibilities. Because of this, moderate critics suggest that CSR activity is most

effective in achieving social or environmental outcomes when there is a direct link to

profit. This approach to CSR requires that the resources applied to CSR activities must

have at least as good a return as these resources could generate if applied anywhere else.

This analysis drastically narrows the possible scope of CSR activities.

Critics who believe that CSR runs against capitalism would go further and say that

improvements in health, longevity or infant mortality have been created by economic

growth attributed tofree enterprise. Investment inless developed countries contributes to

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the welfare of those societies, notwithstanding that these countries have fewer protections

in place for workers. Failure to invest in these countries decreases the opportunity to

increase social welfare.

1.6 DRIVERS

Corporations may be influenced to adopt CSR practices by several drivers.

Ethical consumerism

The rise in popularity ofethical consumerism over the last two decades can be linked to

the rise of CSR. As global population increases, so does the pressure on limited natural

resources required to meet rising consumer demand (Grace and Cohen 2005, 147).

Industrialization in many developing countries is booming as a result of technology and

globalization. Consumers are becoming more aware of the environmental and social

implications of their day-to-day consumer decisions and are beginning to make

purchasing decisions related to their environmental and ethical concerns. However, this

practice is far from consistent or universal.

Globalization and market forces

As corporations pursue growth through globalization, they have encountered new

challenges that impose limits to their growth and potential profits. Government

regulations, tariffs, environmental restrictions and varying standards of what constitutes

labour exploitation are problems that can cost organizations millions of dollars. Some

view ethical issues as simply a costly hindrance. Some companies use CSR

methodologies as a strategic tactic to gain public support for their presence in global

markets, helping them sustain a competitive advantage by using their social contributions

to provide a subconscious level of advertising.(Fry, Keim, Mieners 1986, 105) Global

competition places particular pressure on multinational corporations to examine not only

their own labour practices, but those of their entire supply chain, from a CSR perspective.

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Social awareness and education

The role among corporate stakeholders to work collectively to pressure corporations is

changing. Shareholders and investors themselves, through socially responsible investing

are exerting pressure on corporations to behave responsibly. Non-governmental

organizations are also taking an increasing role, leveraging the power of the media and

the Internet to increase their scrutiny and collective activism around corporate behavior.

Through education and dialogue, the development of community in holding businesses

responsible for their actions is growing (Roux 2007).

Ethics training

The rise of ethics training inside corporations, some of it required by government

regulation, is another driver credited with changing the behaviour and culture of

corporations. The aim of such training is to help employees make ethical decisions when

the answers are unclear. Tullberg believes that humans are built with the capacity to cheat

and manipulate, a view taken from (Trivers 1971, 1985), hence the need for learning

normative values and rules in human behaviour (Tullberg 1996). The most direct benefit

is reducing the likelihood of dirty hands (Grace and Cohen 2005), fines and damaged

reputations for breaching laws or moral norms. Organizations also see secondary benefitin increasing employee loyalty and pride in the organization. Caterpillarand Best Buyare

examples of organizations that have taken such steps (Thilmany 2007).

Government laws and regulation

Another driver of CSR is the role of independent mediators, particularly the government,

in ensuring that corporations are prevented from harming the broader social good,

including people and the environment. CSR critics such as Robert Reich argue that

governments should set the agenda for social responsibility by the way of laws and

regulation that will allow a business to conduct themselves responsibly.

The issues surrounding government regulation pose several problems. Regulation in itself

is unable to cover every aspect in detail of a corporations operations. This leads to

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burdensome legal processes bogged down in interpretations of the law and debatable grey

areas (Sacconi 2004). General Electric is an example of a corporation that has failed to

clean up the Hudson River after contaminating it with organic pollutants. The company

continues to argue via the legal process on assignment of liability, while the cleanup

remains stagnant. (Sullivan & Schiafo 2005). The second issue is the financial burden

that regulation can place on a nation's economy. This view shared by Bulkeley, who cites

as an the Australian federal government's actions to avoid compliance with the Kyoto

Protocol in 1997, on the concerns of economic loss and national interest. The Australian

government took the position that signing the Kyoto Pact would have caused more

significant economic losses for Australia than for any other OECD nation (Bulkeley

2001, pg 436). Critics of CSR also point out that organizations pay taxes to government

to ensure that society and the environment are not adversely affected by business

activities.

Crises and their consequences

Often it takes a crisis to precipitate attention to CSR. One of the most active stands

against environmental management is the CERES Principles that resulted after the Exxon

Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples include the

lead poisoning paint used by toy giant Mattel, which required a recall of millions of toys

globally and caused the company to initiate new risk management and quality control

processes. In another example, Magellan Metals in the West Australian town of

Esperance was responsible for lead contamination killing thousands of birds in the area.

The company had to cease business immediately and work with independent regulatory

bodies to execute a cleanup.

http://en.wikipedia.org/wiki/General_Electrichttp://en.wikipedia.org/wiki/Kyoto_Protocolhttp://en.wikipedia.org/wiki/Kyoto_Protocolhttp://en.wikipedia.org/wiki/Coalition_for_Environmentally_Responsible_Economieshttp://en.wikipedia.org/wiki/Exxon_Valdezhttp://en.wikipedia.org/wiki/Exxon_Valdezhttp://en.wikipedia.org/wiki/Mattelhttp://en.wikipedia.org/wiki/Magellan_Metalshttp://en.wikipedia.org/wiki/General_Electrichttp://en.wikipedia.org/wiki/Kyoto_Protocolhttp://en.wikipedia.org/wiki/Kyoto_Protocolhttp://en.wikipedia.org/wiki/Coalition_for_Environmentally_Responsible_Economieshttp://en.wikipedia.org/wiki/Exxon_Valdezhttp://en.wikipedia.org/wiki/Exxon_Valdezhttp://en.wikipedia.org/wiki/Mattelhttp://en.wikipedia.org/wiki/Magellan_Metals


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2: BEST PRACTICES OF CSR AT INTERNATIONAL

LEVEL

2.1 BEST PRACTICES OF CORPORATE SOCIALRESPONSIBILITY IN ASIA

Background

Corporate social responsibility (CSR) is becoming a critical theme to further enhance

private-public partnerships in Asia. ADBI will organize a series of workshops on this

topic from 2006-2008 to identify best practices of private corporations in delivering CSR

in developing Asia to improve their corporate governance.

Objectives

The workshop aims to:

introduce the current concept of CSR and its development

overview the current situation of CSR in Asia and the Pacific

address the issues and problems of CSR in the context of post-financial crisis

in Asia

strengthen staff resources and capacity of CSR

enhance financial incentives for the private sector to allocate more resources

for CSR

introduce best practices of CSR in other regions

Outputs

30-40 well trained policy makers

Executive summary of the workshop

Participants



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Senior corporate and government officials from selected ADB developing member

countries. Each participant will be required to prepare a case or best practice of CSR in

respective countries.

Language

English (No interpretation will be provided)

Responsibilities

Each participant is required to participate in every session during the course and prepare

an action plan better manage CSR

Cosponsors

ADB, Chambers of Commerce and Business Organizations, Association of Southeast

Asian Nations, Asia-Pacific Economic Cooperation, and Organization for Economic Co-

operation and Development.

2.2 CORPORATE SOCIAL RESPONSIBILITY: CSR EUROPE(CSRE)

Organization Profile

CSR Europe is a non-profit organisation that promotes corporate social

responsibility. Its mission is to help companies achieve profitability, sustainable growth

and human progress by placing corporate social responsibility in the mainstream of

business practice.

CSR Europe Objectives



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o To convince managers of the benefits of socially responsible business

practice, by providing over 500,000 business people and partners with

print and online publications, best practices and tools, annually.

o To offer business managers learning, benchmarking, and capacity

building opportunities.

o To energize a broader stakeholder dialogue between businesses,

European policy makers, governments, investors, social partners, civil

society and academics.

o Through its 65 company members, 18 national partner organisations,

its thematic work and dialogue and its online CSR info centre, CSR

o Europe has become the major European reference point on corporate

social responsibility strategies and practices for companies.

o Through its national partner organisations, we reach out to more than 1500

companies around Europe.

Corporate Social Responsibility Principles

o By sharing experience and enhancing the capacity of current and future

managers, CSR Europe member companies are committed to promote the

following principles as part of achieving business success:

o Conduct business responsibly by contributing to the economic

health and sustainable development of the communities in which we

operate.

o Offer its employees healthy and safe working conditions, ensure fair

compensation, good communication as well as equal opportunity for

employment and development.

o Offer quality, safe products and services at competitive prices, meet

customers needs promptly and accurately and work responsibly with our

business partners.



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o Minimise the negative impacts our activities can have on the

environment and its resources, while striving to provide our customers

with products and services that take sustainable consumption into account.

o Be accountable to key stakeholders through dialogue and

transparency regarding the economic, social and environmental impacts of

our business activities.

o Operate a good governance structure and upholds the highest

standards in business ethics.

o Provide a fair return to our shareholders while fulfilling the above

principles.

o CSRE is responding to European heads of state and government who, at

the Lisbon summit 2000, set the goal of making "Europe the most

competitive and dynamic knowledge-based economy in the world, capable

of sustainable economic growth, with more and better jobs and greater

social cohesion by 2010.

o CSR Europe was set up in 1996 by former European Commission

president Jacques Delors. Today, European institutions regard us as the

expert on CSR in Europe. Supported by its 18 national partner

organisations, CSR Europe is also the only truly European authority on

corporate social responsibility.

2.3 US-ASEAN CORPORATE SOCIAL RESPONSIBILITY

Overview

A vision of development that leaves out the private sector is only vision, said a UNDP

official. Today, multinational companies play a vital role in social development as

businesses not only fund but provide labor and planning for community projects that

range from educational courses that teach elementary school children about health and

dental hygiene to micro-credit programs for poverty stricken families trying to earn a

living.



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US companies, in addition to the integral economic and business roles that they play in

individual ASEAN countries, also invest large amounts of human and financial capital

towards improving developing communities. With social programs that address

education, health, human rights, and environment needs of the local people, US

companies have continued to build upon mutually beneficial relationships established

with the 10 ASEAN Nations.

Mission Statement

The member companies of the US ASEAN Business Council recognize the important

role private business can play in bettering the local communities they do business in. In

an effort to play a more proactive role in promoting US company sponsored community

activities existing or in the works, the Council is launching a new working groupfocusing on Corporate Responsibility and promoting existing and future private and

public sector community initiatives related to ASEAN.

The US ASEAN Business Council is creating the Corporate Social Responsibility

webpage to give member companies a venue to:

1. Communicate what the company has done in the realm of corporate responsibility in

the ASEAN region

2. Share best practices with other companies

3. Obtain ideas on future projects within the region

By promoting the community projects member companies are involved in, the Corporate

Responsibility Working Group of the US ASEAN Business Council hopes to emphasize

that economic integration and globalization can not only improve economic conditions,

but also have a positive social impact in a country.

2.4 AFRICA: CORPORATE SOCIAL RESPONSIBILITY

It is recognized that poverty reduction and sustainable development will not be

achieved through government action alone. Policy makers are paying increasing attention

to the potential contribution of the private sector to such policy objectives.1 The concept



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of corporate social responsibility (CSR) is sometimes used as shorthand for businesses

contribution to sustainable development. A number of core development issues are

already central to the international CSR agenda. They include labour standards, human

rights, education, health, child labour, poverty reduction, conflict and environmental

impacts.

But what does this mean at the national level, particularly in those countries in which

sustainable development challenges appear most intractable? Does CSR have resonance

among local stakeholders? Key aspects of the emerging CSR agenda in two countries in

sub- Saharan Africa Kenya and Zambia in order to explore what it would take to help

unlock the potential private sector contribution to sustainable development in each

country.

Key Points

Both Kenya and Zambia face significant development challenges. If we are to

maximise the potential contribution of the private sector to poverty reduction and

sustainable development, these are two of the countries in which this is most needed.

Although the concept of corporate social responsibility (CSR) is gaining

some prominence within policy debates in Kenya and Zambia, it is not applied widely

and is usually associated with philanthropy. But there are many private sector-related

initiatives and business activities in both countries that might be described as expressions

of CSR, and there are also emerging specialist CSR organisations.

The private sector contribution to sustainable development in both Zambia and

Kenya could be strengthened by tackling capacity constraints among public and civil

society institutions, building the drivers for responsible business, nurturing socially-

oriented companies, and encouraging local business linkages.

Creating space for national dialogue between government, business, civil society

and donors on the role of the private sector in development can help to localise the CSR

agenda, and to build trust and mutual understanding of the potential and the limits of

businesses contribution to development.



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3: GLOBAL WORKFORCE STUDY SOCIAL

RESPONSIBILITY

Companies have their own ideas about corporate social responsibility (CSR) and how

much of a commitment they make to it. It can range from "going green" to supporting

local charities.

But one thing is increasingly clear. It's not a choice any longer. Your employees expect it,

and your company needs it.

What used to be considered good PR, or window dressing for community relations, is in

fact linked to how well your employees perform. In other words, CSR extends to the

bottom line. Sound like an exaggeration?

3.1 THE ENGAGEMENT CONNECTION

In ourGlobal Workforce Study, we found that CSR is the third most important driver of

employee engagement overall. For companies in the U.S., an organization's stature in the

community is the second most important driver of employee engagement, and a

company's reputation for social responsibility is also among the top 10 drivers. Take a

look:

This is important because higher employee engagement levels are highly correlated

with better business performance as measured by revenue, earnings and other key

business metrics.

3.2 HELPING TO ATTRACT TALENT

Our Global Workforce Study also found that a company's reputation as a good employer

ranks sixth as an attraction driver. Organizations with a reputation for CSR can take

advantage of their status and strengthen their appeal as an attractive employer by making

their commitment part of their value proposition for potential candidates.

Some of the world's largest companies have made a highly visible commitment to CSR,

for example, with initiatives aimed at reducing their environmental footprint. These

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companies take the view that financial and environmental performance can work together

to drive company growth. This attitude can only serve to enhance the employment value

proposition as interest in "going green" gains traction.

3.3 THE CSR FACTOR: COMPANY REPUTATION

We also found that when employees view their organization's commitment to socially

responsible behavior more favorably, they also tend to have more positive attitudes in

other areas that correlate with better performance. They believe their organizations

recognize and reward great customer service, act quickly to address and resolve customer

concerns, and are led by people in senior management who act in the best interest of

customers.

Confidence in senior management is higher in other areas, too, when employees give

their company high marks for being socially responsible. For example, 82% of these

employees say their organization's senior management supports new ideas and new ways

of doing things. This correlation is important because a company's success in the

marketplace is often influenced by its capacity for innovation.

So you can add corporate social responsibility the CSR factor to the top drivers of

workplace engagement. It's also a factor in attracting and retaining talent. And the moresenior management is seen to be out front on the issue, the more employees like it.

3.4 SUSTAINABLE BUSINESS PRACTICES

In Europe and elsewhere outside the U.S., companies have been taking their social role

seriously for years, often under the banner of what is known as corporate sustainability.

The EU has developed a corporate sustainability framework, which identifies a

progressive set of economic, social and environmental objectives that companies areencouraged to achieve.

At Towers Perrin, we have developed a methodology to assess the employee perspective

on sustainable business practices (SBP). These practices represent a continuing

commitment by a company to behave ethically and contribute to economic development



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while improving the quality of life of its workforce and family members, as well as the

local community and society at large. Towers Perrin's SBP index specifically covers five

areas:

awareness and perceived importance among employees employee sustainable behaviors

social and community performance

environmental performance

ethical and legal performance.



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4: CSR STUDY IN DIFFERENT GLOBALIZED

COMPANIES

4.1 WIPRO

Wipro Ltd (BSE: 507685, NYSE:WIT) is a giant information technology services

corporationheadquartered in Bangalore,India. According to the 200809 revenue, Wipro

is one of the largest IT services company in India and employs more than 115,900 people

worldwide as of September 2010. It has interests varying from information technology,

consumer care, lighting, engineering and healthcare businesses. It is 9th most valuable

brand in India according to an annual survey conducted by Brand Finance and The

Economic Times in 2010. Azim Premji is the Chairman of the board.

Major Divisions

Cyber Towers the software landmark of Hyderabad. Located at Madhapur surrounded by

many software majors like Wipro, IBM and Accenture.

IT Services: Wipro provides complete range of IT Services to the organization.

The range of services extends from Enterprise Application Services (CRM, ERP,

e-Procurement and SCM) to e-Business solutions. Wipro's enterprise solutions

serve a host of industries such as Energy and Utilities, Finance, Telecom, and

Media and Entertainment.

Product Engineering Solutions: Wipro is the largest independent provider of R&D

services in the world. Using "Extended Engineering" model for leveraging R&D

investment and accessing new knowledge and experience across the globe, people

and technical infrastructure, Wipro enables firms to introduce new products

rapidly..

http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=507685http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=507685http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=withttp://www.nyse.com/about/listed/quickquote.html?ticker=withttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Headquarterhttp://en.wikipedia.org/wiki/Headquarterhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Lightinghttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Healthcarehttp://en.wikipedia.org/wiki/Azim_Premjihttp://en.wikipedia.org/wiki/Chairman_of_the_boardhttp://en.wikipedia.org/wiki/Image:WiproLogo.jpghttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=507685http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=withttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Headquarterhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Lightinghttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Healthcarehttp://en.wikipedia.org/wiki/Azim_Premjihttp://en.wikipedia.org/wiki/Chairman_of_the_board


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Technology Infrastructure called as TIS provides remote infrastructure

management solutions and services. Wipro Technologies achieves this through a

Global Command Centre (GCC) which consolidates services and resources in one

place and centrally manage them. It is a true enabler for the company for

providing services in infrastructure management.

Corporate Social Responsibilities

The Azim Premji Foundation run by the Wipro chairman is working on providing

elementary schooling to thousands of underprivileged children. It believes in partnering

to guarantee learning in school.

The CSR effect has been creating a positive ripple in both society and the corporate

world. The initiative has changed the landscape of India's development sector. A large

number of public and private sector organisations have their own foundations, which

work in close association with NGOs and the government.

Together they tackle a lot of local and public issues. These organisations focus on

education, primary healthcare, AIDS awareness and infrastructure.

In the words of Dr Madhav Mehra, President of the UK-based World Environment

Foundation and the World Council for Corporate Governance, "The realisation that

companies have a great prospect to making profits through a triple bottom line approach

is helping the development sector to enhance its reach and tackle the yawning gap

between India's rich and poor."

Wipro Cares is a foundation focused on primary education that has been set up with a

corpus of Rs.1000 million.The objecive of Wipro Cares is to harness the creativity,

passion and sense of social responsibility of all Wipro employees to contribute to the

society that we live and work in.

For instance, Wipro Cares will be educating 3500 children through Child Care India.

Libraries have been set up in slums, computer skills are imparted and scholarships are



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made available to needy students. In the short time since its inception, Wipro Cares has

brought joy to many - to the children whose lives it has touched as well as the Wipro

employees who have experienced the pleasure of giving.

Wipro's Gujarat Earthquake Relief Fund

In response to a corporate announcement requesting contribution from Wiproites to help

provide relief for the earth quake victims in Gujarat, an amount of Rs 10 million was

collected. After Wipros matching contribution, the total amount available is Rs 20

million, Wipro will ensure that this amount is utilized for the rehabilitation work either

directly or through an identified NGO.

At present our focus area is education. We see that education is very

fundamental to development. So, if we work in the field of education, then we feel we

have helped people to access whatever opportunities that are available.

Wipro is seen as a knowledge company, and education fits in well with our work. More

and more jobs are now based on the knowledge industry. Even traditional jobs like

trading now require automation and therefore education has become necessary.

Along with our education initiatives, we also have Wipro Cares. There is a lot of desire

among our employees to volunteer. Many of them want to spend time and money on

social causes.

Wipro Cares is a platform through which they can do this. When Wipro Cares came into

being three years ago, we just collected funds for relief operations. For instance, after the

Gujarat earthquake, we collected over Rs.1 crore. We sent clothes and essentials to

Gujarat, and also built a hospital. But later we realised that we must do something in an

ongoing manner and not wait for natural calamities to start our voluntary activities.

Our volunteers did a quick survey around urban slumsin Bangalore and Hyderabad.

identified three major issues---unemployment, hygiene and sanitation. Now we will start

addressing these issues.



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Evaluating CSR Programs

The impact of our programme is not easy to assess. How do you assess whether

the quality of teaching has improved? How soon can quality be tested?

There is an evaluation process built into each component of the Wipro Applying Thought

in Schools Programme. For instance, the teachers programme does require students and

senior educational consultants who sit in during classes to evaluate the teaching process.

But this is not an evaluation of the programme, but only an evaluation of the teaching.

At present, therefore, we are still exploring on an effective method to evaluate our

programme. We have invited our partners to come up with ways to make evaluation

possible.

We realise that evaluation is an extremely important part of doing any kind of work. It is

evaluation that helps us to learn. When we ask our teachers to continue learning, we

ourselves cannot stop learning. And not knowing the impact of ones work amounts to

not learning about the process.

Education

Wipro chairman Azim Premji gave about Rs 8,846 crore ($2 billion) to improve school

education in India. Other donations to charitable institutions by any person or corporation

in India pale in comparison to this massive endowment. It effectively silences critics who

say Indian billionaires are measly donors compared to foreign counterparts, and that they

focus on big-name western universities rather than addressing Indias problems.

Azim Premji is actively involved in social works through his organization Azim Premji

Foundation. Programmes of the Azim Premji Foundation focus on "creating effective and

scalable models that significantly improve the quality of learning in the school and ensure

satisfactory ownership by the community in the management of the school". Azim Premji

Foundation says it "dedicates itself to the cause of Universalization of Elementary



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Education in India. The organisation has over the years been instrumental in improving

the quality of general education, particularly in rural schools.

This donation would be done by transferring 213 million equity shares of Wipro Ltd,

held by a few entities controlled by him, to the Azim Premji Trust.This donation is the

first of its kind by any Indian billionaire.

4.2 JOHNSON AND JOHNSON

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

Johnson & Johnson is one of the largest corporate contributors, based on total

cash and product donations, with 2004 worldwide contributions totaling over

$528 million.

Emergency relief provided since the early 1900s for victims of natural disasters

and other emergencies.

Johnson & Johnson continues to strengthen its relationships with leading

environmental organizations committed to sustainable development. Other

environmental partnership activities have focused on the protection of endangered

species and habitats, as well as supporting environmental education initiatives in

local school districts.

SOCIAL RESPONSIBILITY

Through Our Credo, Johnson & Johnson is committed to improving the community

through a variety of programs both in the United States and abroad. In this section, you

can learn about our Contributions program, Environmental commitments and Health and

Safety efforts. You can also review ourpolicies on Equal Opportunity, child labor,

business conduct and other key issues. OurCorporate Informationsection will acquaint

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you with our financial performance and overall structure, while Corporate Governance

will explain the practice of ethical business conduct. There is also information about the

Board of Directors and the Committees of the Board.

In response to the loss of life and property caused by the recent

mudslides in the Philippines, Johnson & Johnson has donated a disaster relief module,

which includes medical supplies, disinfectants, analgesic and other products. In addition,

the Company has made donations to local relief organizations and employees in the

Philippines are conducting a volunteer and donation drive for the mudslide victims.

Through ourcontributions efforts, we are actively involved in supporting ongoing health

care, educational and cultural programs. We are committed to a healthy environment

through a reduction in our facility environmental impacts and our participation in

conservation projects. Johnson & Johnson has established high standards for the health

and safety of our workers and has worked with others in our community to share our

knowledge in this area.

OurHIV/AIDS section includes information about the many projects Johnson & Johnsonsponsors to combat the spread of this deadly virus.

Ourpublications section includes yearly reports which discuss Johnson & Johnson's

various programs, projects and activities in the areas of charitable giving, environmental

sustainability and workplace safety, as well as our Annual Report.

Johnson & Johnson is proud that its stock is included in the Dow Jones

Sustainability Index (DJSI). The DJSI family follows a best-in-class

approach comprising the sustainability leaders in each industry.

Categorized by industry group, companies are assessed against general

and industry-specific criteria and then compared against their peers and ranked

accordingly

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CONTRIBUTIONS:

We must be good citizens support good works and charities..." Johnson & Johnson

Credo

In response to the loss of life and property caused by the recent

mudslides in the Philippines, Johnson & Johnson has donated a disaster relief module,

which includes medical supplies, disinfectants, analgesic and other products. In addition,

the Company has made donations to local relief organizations and employees in the

Philippines are conducting a volunteer and donation drive for the mudslide victims.

At Johnson & Johnson, improving the health and welfare of people around the world is

an integral part of our business.

Since the San Francisco earthquake of 1906, Johnson & Johnson has provided disaster

relief supplies to aid the victims of hurricanes, floods, fires and, more recently, terrorism.

Johnson & Johnson's commitment to social responsibility is reflected in the Johnson &

JohnsonCredo and exemplified by a number of key community initiatives described in

the Contributions Annual Report. Through the Contributions Program, a worldwide

social responsibility effort, Johnson & Johnson aligns its philanthropic initiatives with its

expertise in four key platforms for giving: Access to Health Care, Children's Health,

Professional Development and Education and Community Responsibility. Johnson &

Johnson sponsors a number of programs structured around the principles of these

platforms.

Johnson & Johnson has created "Signature Programs" in order to address community

needs through focused strategies which are clearly aligned with the Company's

Contributions platforms. One of these programs, the Johnson & Johnson-Wharton

Fellows Program in Management for Nurse Executives, has graduated 805 studentsfrom

the United States, Australia, Canada, Saudi Arabia and Cuba. In addition, the Company

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supports local initiatives that are critical to the communities in which we live and work.

Johnson & Johnson worked with hundreds of nonprofit U.S.-based and international

organizations during 2004, making $528.7 million in cash and product contributions. In

2001, a pledge of $10 million to aid the victims of the September 11 terrorist attacks gave

needed support to numerous organizations aiding the victims and their families.

CORPORATE INFORMATION:

Johnson & Johnson's commitment to the community comes from a dedication to the

principles defined60 years ago by then Chairman of the Board General Robert Wood

Johnson in Our Credo. This living document, which has been translated into dozens of

languages, establishes the company's responsibilities to customers, employees, the

communities in which we operate and to the stockholders. In order to determine how

effectively the company's policies fulfill these Credo responsibilities, employees

throughout Johnson & Johnson are periodically surveyed to be sure that the company

conducts business in accordance with the Credo.

Johnson & Johnson, which was founded in 1887, employs 115,600 people in 57

countries around the world. Our 200operating companies produce thousands of

products spanning our threebusiness segments. This site's Corporate Governance sectiondescribes our management structure and includes information on how Johnson & Johnson

fulfills our Credo responsibilities through the practice of ethical business conduct. There

is also information about the Board of Directorsand the Committees of the Board.

Financial information about Johnson & Johnson, including services for shareowners and

an electronic version of the Annual Report, can be found in the Investor Relations

section. A calendar of upcoming financial events and an archive of recent webcasts is

available, as is historical sales information about the company.

Johnson & Johnson is committed to a diverse and stimulating workplace. OurDiversity

section illustrates how the Credo continues to guide our business decisions, both inside

and outside of the company and states ourDiversity Vision of being the employer of

choice in a dynamic global environment.

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DIVERSITY:

Diversity is part of the culture of Johnson & Johnson, where we recognize the value that

differences in age, race, gender, nationality, sexual orientation, physical ability, thinking

style and background bring a richness to the working environment. Our vision is to be

the Employer of Choice in a Dynamic Global Environment.

ENVIRONMENT:

"We must maintain in good order the property we are privileged to use, protecting the

environment and natural resources." Johnson & Johnson Credo

Healthy People..Healthy Planet reflects our understanding of the criticalinterdependence between human health and the health of our planet. As one of the

worlds most broadly based and diversified health care companies, we feel a special

responsibility to protect the environment.

GOVERNANCE:

At all levels, Johnson & Johnson employees are committed to the ethical principals

outlined by Our Credo. These principles have guided us for many years and will continueto set the tone of integrity for the entire Company. The Credo values extend to our

accounting and financial reporting responsibilities that we have to our shareholders and

investors, and many shareholders are interested in how the company is managed. For

information on our structure, the Board of Directors and the committees on which they

serve, our policies, corporate documents and filings with the Securities and Exchange

Commission.

HIV/AIDS:

As a global company dedicated to human health for more than 120 years, Johnson &

Johnson has a deep and abiding commitment to summon our skills and resources to help

address what is surely one of the most critical health issues facing our world today,

HIV/AIDS.

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Enhancing health care for people suffering from HIV/AIDS is a priority for Johnson &

Johnson; it is inherent in our responsibility to the global community as expressed in Our

Credo. We aspire to make a difference in the lives of those infected and affected by

HIV/AIDS by:

Developing effective new medicines and diagnostics against HIV and related

opportunistic infections;

Enhancing access to our products as well as needed patient care and support;

Providing contributions to assist communities and individuals who are most

vulnerable to HIV/AIDS; and

Meeting our obligations to employees through HIV/AIDS workplace programs.

The number of men, women and children suffering from HIV/AIDS is staggering. While

we are humbled by the extent of this pandemic and recognize that no single company or

coalition can address all aspects of HIV/AIDS, we believe we can make a meaningful

contribution and are committed to do so.

We are working with many local and global organizations and creating partnerships with

new organizations to help vulnerable communities. Our contributions focus on helping

meet the needs of children, women and families and supporting organizations providingcare, education, prevention and access to treatment. Improving lives will take a

collaborative effort by companies like Johnson & Johnson as well as caregivers,

scientists, governments and non-governmental organizations, advocacy groups, health

care professionals and patients.

Johnson & Johnson sponsors HIV/AIDS philanthropic programs in locations around the

world. Our initiatives will build on this portfolio of giving and will combine financial,

medical and human resources to address this pandemic. To find out more about our

efforts, click on the map below.



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HEALTH AND SAFETY:

"Compensation must be fair and adequate, and working conditions clean, orderly and

safe." Johnson & Johnson Credo

POLICIES:

In order to ensure that Johnson & Johnson fulfills the responsibilities listed in Our Credo,

company-wide polices have been adopted which guide the decisions and actions of our

employees. These policies apply to all aspects of the business and address our duties to

our employees, our customers and to the communities in which we work. Johnson &

Johnson surveys employees at all locations every two to three years to learn their

impressions of how well the Company performs its Credo responsibilities. These

assessments are then fed back to the senior management, and where there are

shortcomings, corrective action is taken.

GENERAL POLICIES:

Climate Friendly Energy Policy

Employment of Young Persons

Equal Employment Opportunity Policy

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Global Labor & Employment Guidelines

Harassment Policy

Johnson & Johnson Safety Vision Statement

Laboratory Research Animal Testing

Our Ethical Code For The Conduct of Pharmaceutical Medicine

Our Policy on Grants

Policy on Business Conduct

Health & Safety Policy

Work and Family Leave and Family Medical Leave Absence (FMLA)

Worldwide Environmental Policy

PUBLICATIONS:

Johnson & Johnson publishes a number of documents that outline our efforts in the area

of social responsibility. These reports document our performance, state our plans and

goals for the future and describe just a few of the many programs and projects supported

by Johnson & Johnson.

4.3 NOVO NORDISKIn the twenty-first century, many corporations are acknowledging the need for

a more responsible strategy that marries economic success with environmental

protection. As most companies inch at a snails pace into the green limelight, there

are a few whose seasoned experience in dealing with environmental dilemmas is

allowing them to reach beyond the initial recognition of adverse environmental

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impact. One such company is Novo Nordisk, a Danish pharmaceutical company that

is positioning itself to have a unique influence, not only on its own operations but

also on suppliers in the next link of the supply chain.

Novo Nordisk has been developing an implementation strategy for a Triple Bottom

Line (TBL) encompassing social, environmental, and economic dimensions since

the early 1990s, giving it an advantage over competitors who are just beginning to

deal with social and environmental responsibility issues. As the company tracks its

own performance based on TBL criteria and hones in on its all-inclusive

environmental and social impact, relationships with outside suppliers are being

studied. In evaluating the overall supply chain, the company has realized that the

transporters that it contracts are also a part of Novo Nordisks net climate impact. Thecompanys work to influence the supply chain and reduce this impact stands out as

some of the most ground-breaking in the corporate sustainability field.

COMMITMENTS

Financial responsibility

We will work to continuously improve our financial performance by setting high

objectives for growth and value creation and deliver competitive performance in theseareas. We will maintain an open dialogue with our stakeholders and comply with

international reporting standards.

Environmental responsibility

We will work to continuously improve our environmental performance by setting high

objectives and integrating environmental and bioethical considerations into our daily

business. We will maintain an open dialogue with our stakeholders and report annually

on our environmental performance.

We subscribe to the International Chamber of Commerce's Business Charter for

Sustainable Development.

We support the United Nations Convention on Biological Diversity.



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Social responsibility

We will work to continuously improve our social performance by setting high objectives

and integrating social, human rights and health & safety considerations into our daily

business. We will maintain an open dialogue with our stakeholders and report annually

on our social performance.

SOCIAL RESPONSIBILITIES OF NOVO NORDISK

Impact on the Environment

As the company has developed a more sophisticated methodology for reducing

impact on the environment, environmental managers now try to integrate

environmental considerations into product development, fabrication, use and final

disposal. The company has sought to reduce energy use and emissions through

strategies such as implementing energy saving programs, purchasing environmentally

certified hydroelectric power and other renewable sources, substituting alternative

cooling agents for chlorofluorocarbons (CFCs), internally reusing energy and

chemicals, externally recycling materials, and working with suppliers to developenvironmentally sound packaging materials.

In 2002, Novo Nordisk purchased 30 percent of its energy from renewable sources,

including a hydropower plant identified as renewable energy by the Swedish Society

for Nature Conservation and Eco-labelling. The remaining renewable energy was

provided by the Danish power grid and included sources like wind and biomass.

The company has also found ways to safely recycle some of the waste products fromits industrial production process. The key raw materials used in microbial

fermentation to produce therapeutic proteins are water, nutrients and sugar. The main

byproduct from this fermentation is yeast sludge, a non-toxic substance. At least one

industrial plant recycles the sludge either as pig feed for local farms or as raw

material for biogas generation.



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Managing to Achieve the Triple Bottom Line

The Stakeholder Relations department drives much of the environmental

management at Novo Nordisk and focuses primarily on eco-efficiency as the main

environmental goal. Reporting on the Triple Bottom Line 2001 explains that, Our

eco-productivity indices (EPIs) express eco-efficiency as the ability to effectively

utilize resources, relating the scale of production to the consumption of resources.

This is used for water, energy, and packaging as well as raw materials. An increase in

an index is a positive trend and shows greater efficiency.

In managing the impact on climate, Novo Nordisk has instituted both a

comprehensive measurement tool for energy use and a strategy to reduce energy use

overall. The total energy consumption for Novo Nordisk in 2001 amounted to

510,596,400 kilowatt-hours which was an increase of 6 percent from 2000. Total

CO2 emissions, however, only increased by 3 percent because more of the energy

purchased came from renewable energy sources. Also, these increases in energy use

and emissions occurred while profits were increasing by 25%. The EPI increased by 4

percent, reflecting this increase in energy efficiency.

Avoiding Transport Emissions

Novo Nordisk recognizes that a critical component to the companys objective of

producing pharmaceutical products to be available worldwide is transporting those

products to consumers. Although the company is not directly responsible for the

environmental impacts associated with transporting its goods, this stage in the supply

chain ultimately leads to a significant quantity of fossil fuel emissions which

ultimately impact global warming, acidification, and photochemical smog.

One of the general targets towards which progress has been made is the improvement

of methods for reporting transport emissions, and then using the results to reduce the

environmental impact, in cooperation with transport suppliers. Novo Nordisk has

pledged to assess the environmental and social performance of 90 percent of key raw

material suppliers and a range of key suppliers in service and engineering. Truckers



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of raw materials are the initial supplier group that have been zeroed in on. As

transport data from trucks pours in, Novo Nordisk is beginning to require strict

environmental guidelines to reinforce the message to suppliers to cut down on

emissions. One of new requirements is efficient refrigeration and heating controls

inside trucks.

Benefits of Engaging in Corporate Social Responsibility

1) Increased profit

2) Access to capital

3) Reduced operating costs/increased operational efficiency

4) Enhanced brand image and reputation

5) Increased sales and customer loyalty

6) Increased productivity and quality

7) Increased ability to attract and retain employees

8) Potentially, reduced regulatory oversight

9) Reducing risk, and increased risk management

10) Keeping up with competitors and where the market is.

The Dangers of Corporate Social Responsibility

The magnificent seven ride again. But beware, they might bump into the glass

ceiling, or, worse, fall victim to carpet-bombing syndrome. This collection of clichs,

laced with breathless examples of consultancy-speak such as triple bottom line and

blended value, are intended to draw attention to a new study of corporate

sustainability reporting by big firms, published on November 18th. Entitled Trust Us,



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it has been co-written by a consultancy, SustainAbility, which counts such companies as

Ford and Shell among its clients, and the United Nations Environment Programme. A

SustainAbility consultant, Oliver Dudok van Heel, preaches that its mission is to make

companies behave responsibly, for the sake of present and future generations.

Firms are falling over themselves to compete for an ethical Oscar. For the record, this

year's magnificent seventhose with the best scores for social policy and environment

reportsare the Co-Op Bank, NOVO NORDISK, BAA, British Telecom, Rio Tinto,

Shell and BP. The glass ceiling is a coded way for the authors to say that these reports

have not improved in quality since the first such survey was carried out in 2000.

However, since then, the authors chastise, they have gained 45% in volume and now

measure, on average, a frightening 86 pages apiecehence the reference to carpetbombing.

The aim of sustainability reportingto determine if a firm trades fairly, protects the

environment and so onmay be relatively new, but the tone of this report is thoroughly

Victorian, a sort of schoolmasterly could do better. And herein lies a serious concern.

Pervading the report is the sense, increasingly widespread nowadays, that companies are

inherently immoral unless they demonstrate that they are the oppositein effect, guiltyuntil proved innocent. Yet, even allowing for some recent corporate scandals and the odd

crooked chief executive, most law-abiding companies do good simply as a by-product of

their pursuit of profitsas Adam Smith first proclaimed over 200 years ago. In its rush to

sell clients advice on how to buff up their ethical image, SustainAbility glosses over the

fact that the likes of Wal-Mart employ thousands of staff worldwide and also deliver

goods cheaply to consumers.



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5: INDIA AND CSR

In India, the market is the new mantra. Globalization has brought in new players

and alluring products into markets. The growing middle class, which has been bereft, of

goods in the past, is too happy consuming, to want to pay heed to what may lieunderneath. American style, glass lined shopping malls teem with the newly rich. Plastic

money has made hitherto inaccessible goods merely a signature away. It is a new ethos,

expectant and eager, which draws in glitzy brands supported by nubile advertising. The

dismal human condition of the rest of the country does not exist here, and the fact that

over 25 % of the country does not have even a meal a day is a mere statistic3. It is an

engagement, which for many is an uncomfortable one, and a willingness to believe in

corporate literature an easy out of any possible guilt.

In such a context the picking seems to be easy for businesses with the system available

to be beaten for profit. Terms like ethical behavior can put an uncomfortable hurdle in

that path and for a powerful corporate bending rules, is not too difficult. Corporate

philanthropy helps as well. NGOs are funded to carry out community development

work, and these too are advertised as part of the branding process4. Cynically, such

donations also obtain local tax rebates. But even though some people may benefit from

such charity, it does not translate into changing the way business itself is done.

Can Corporate Social Responsibility truly be a reality in such a context? Or does it need

other legal and institutional pushes which empower the citizenry to function adequately?

Such provisions can include effective liability laws, information disclosure requirements,

corporate accountability and an impartial implementa

rishi csr report

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