BUSINESS ETHICS

AND
CORPORATE SOCIAL
RESPONSIBILITIES
PROJECT ON

“CORPORATE GOVERNANCE AND CSR ACTIVITIES OF

Godrej ”
SUBMITTED TO

PROF. SAMEER VIRANI

SUBMITTED BY THE STUDENTS OF TYBMS-B

BAJEKAL PRANAY 04

1
 CONTENTS

• Introduction to Godrej
• Corporate social Responsibilities
• CSR activities of Godrej
• What’s new..???
• Corporate governance
• Corporate Governance of Godrej
• Base CG on principles
• Leadership in times of crisis
• CG according to Godrej Infotech
• “Pass it forward” says Godrej Group
• CSR activities of Godrej as per Karmayog
• Mandatory CSR is not a great idea, feels India Inc
• Conclusion
• Bibliography

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Godrej Group was set up in 1897 by Pirojsha and Ardeshir Godrej. The Group Godrej is
involved in various businesses that ranges from word processors and typewriters to safes
and locks, from chemicals and edible oils to agricultural products, from furniture and
refrigerators to process equipment and machine tools, and from detergents to cosmetics.

Godrej Label has become one of India's most remarkable corporation in the industrial
sector. This has been possible due to the fact that the Label Godrej has strictly maintained
the quality of its products by using the best quality of raw materials. The Group Godrej
has also highly technologically advanced manufacturing facilities. All these measures has
ensured that the group's products are of very good quality which has led to customer
satisfaction and loyalty. This has helped Godrej Group to become worth around US$ 1.3
billion. The Label Godrej employs more than 18,000 people.

The various companies under the Godrej Group are:

- Godrej Global Solutions Ltd

- Godrej Hi Care India Ltd

- Godrej Industries Ltd

- Godrej Consumer Products Ltd

- Godrej Commodities Ltd

Among the many companies under the Godrej Label, Godrej Global Solutions Ltd is an
important company. The company provides global BPO services and solutions to their
clients. Godrej Hi Care India Ltd is another company that is under the Group Godrej. The
company provides pest management services to its customers. Godrej Hi Care India Ltd
has introduced a highly technical and odorless way of pest control. The company is worth
around Rs. 30 crore and has over 2 lakhs customers. Among the many companies that
come under the Godrej Group, Godrej Industries Ltd is another important company. The
company manufactures various kinds of chemicals and also food products like fruit

3
beverages and refined oil. Godrej Industries Ltd's total income amounted to Rs. 2014.50
million in 2006- 2007 and the net profit stood at Rs. 325.30 million.

Godrej Consumer Products Ltd is another company that is under the Godrej Group. The
company produces household and personal products such as soaps, shaving cream,
talcum powder, fairness cream, and liquid detergent. Godrej Consumer Products Ltd's
total income amounted to Rs. 2372.90 million in 2006- 2007 and the net profit stood at
Rs. 357.90 million. Godrej Commodities Ltd is another company that is under the Group
Godrej. The company is engaged in trading various vegetable oils such as soybean,
groundnut, and sunflower. The total income of Godrej Commodities Ltd amounted to Rs.
3.20 million in 2006- 2007 and the net profit stood at Rs. 0.85 million.

Godrej Group has become one of the leading groups in the country on the basis of the
quality of its products. And so in order to retain its position the group must continue to
supply the best quality of products to its customers.

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BACKGROUND

Godrej Group is one of the largest conglomerates based in Mumbai, India, involved in
various industries that include appliances, precision equipment, machine tools, furniture,
healthcare, interior solutions, office equipment, food-processing, security, materials
handling and industrial storage solutions, construction and information technology. Its
products include security Systems and Safes, Typewriters and Word processors, Rocket
Launchers, Refrigerators and Furniture, Outsourcing Services, Machine Tools and
Process Equipment, Cosmetics and Detergents, Engineering Workstations, Medical
Diagnostics and Aerospace Equipment, Edible Oils and Chemical, Mosquito Repellents,
Car perfumes, Chicken and Agri-products, Material Handling Equipments Like
FORKLIFT Trucks, Stackers, Tyre handlers, Sweeping machines, access equipments etc.
The Group is headed by Adi Godrej and Jamshyd Godrej.

Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been Godrej’s

manufacturing base, but increasingly the group have moved significant production
facilities away from Mumbai. The Godrej group also owns vast land in Vikhroli,
occupying 3500 acres (14 sq km) of land on both sides of the Vikhroli section of the LBS
marg. That makes the Godrej group the biggest private land owner in Mumbai by far [citation
needed]
. Such vast land can, in theory, be used to create at least 1500 acres of residential
floor space, which, at very modest rates (Rs.10000/sq ft), can be sold for USD 16 billion .
Thus, the Godrej group is sitting on an invisible cashpile that is envy of other Indian
conglomerates.

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TIMELINE

• 1897 – Godrej & Boyce Mfg. Co. Ltd established

• 1918 – Godrej Soaps Limited incorporated
• 1961- Godrej Started Manufacturing Forklift Trucks in India
• 1971- Godrej Agrovet Limited began as an Animal Feeds division of Godrej
Soaps
• 1974 – Veg oils division in Wadala, Mumbai acquired
• 1990 – Godrej Properties Limited, another subsidiary, established
• 1991 – Foods business started
• 1991 – Godrej Agrovet Limited incorporated
• 1994 – Transelektra Domestic Products acquired
• 1995 – Transelektra forged a strategic alliance with Sara Lee USA
• 1999 – Transelektra renamed Godrej Sara Lee Limited and incorporated Godrej
Infotech Ltd.
• 2001 – Godrej Consumer Products was formed as a result of the demerger of
Godrej Soaps Limited. Godrej Soaps renamed Godrej Industries Limited
• 2002 – Godrej Tea Limited set up
• 2003 – Entered the BPO solutions and services space with Godrej Global
Solutions Limited
• 2004 – Godrej HiCare Limited set up to provide a Safe Healthy Environment to
customers by providing professional pest management services
• 2006 – Foods business was merged with Godrej Tea and Godrej Tea renamed
Godrej Beverages & Foods Limited
• 2007 – Godrej Beverages & Foods Limited formed a JV with The Hershey
Company of North America and the company was renamed Godrej Hershey
Foods & Beverages Limited
• 2008 – Godrej relaunched itself with new colourful logo and a fresh identity
music

SOCIAL RESPONSIBILITY

Godrej has a philanthropic arm that has built schools, dispensaries and a residential
complex for their employees. Trusts established by Godrej continue to invest in
education, healthcare and upliftment of the underprivileged.

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CORPORATE DETAILS

Adi Godrej is the current Chairman of the Godrej Group. Godrej & Boyce Mfg. Co. Ltd.
Is headed by Mr. Jamshyd Godrej. The Group revenue was approximately US$ 1.7 billion
in financial year 06/07. Godrej Interio is the flagship company of the group.

The Godrej group can be broadly divided into two major holding companies, working
independently:

1. Godrej Industries Ltd

2. Godrej & Boyce Mfg. Co. Ltd.

The Major Companies, subsidiaries and affiliates are

• CHEMICAL & COMMODITIES

• Godrej Industries
• Chemicals
• Veg Oils
• FMCG
• Godrej Consumer Products
• Keyline Brands UK
• Rapidol South Africa
• Godrej Global Mideast FZE
• Godrej SCA Hygiene Limited
• Godrej Hershey Foods & Beverages Limited
• Nutrine
• Godrej Sara Lee

• AGRI

• Godrej Agrovet
• Animal Feeds
• Goldmohur Foods and Feeds
• Golden Feed Products
• Higashimaru Feed Products
• Oil Palm
• Agri Inputs
• Godrej Aadhaar
• Nature’s Basket
• Integrated Poultry Business
• Plant Biotech
• SERVICES
• Godrej HiCare (Pest Management Services)
• Godrej Global Solutions (ITES)

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 • Godrej Properties
• ACHIEVEMENTS

• In 1897, Godrej Introduced the first lock with lever technology in India.
• In 1902, Godrej made the first Indian safe.
• In 1920, Godrej made soap using vegetable oil, which was a huge hit with the
vegetarian community in India
• In 1955, Godrej produced India’s first indigenous typewriter
• In 1989, Godrej became the first company to introduce PUF ( Polyurethane Foam)
• Introduced India’s first and only 100% CFC, HCFC, HFC free refrigerators

AWARDS

• GCPL, the Highest Ranked Indian FMCG in Asia’s Hot Growth Companies’ List
by Business Week
• Godrej Consumer Products Ltd. Has been ranked 14th in The Best Companies to
Work For study. This study was jointly conducted by Business Today, Mercer and
Taylor Nelson Sofres (TNS)
• Godrej Consumer Products Ranks 6th in ET-Hewitt Best Employers of India
survey
• GCPL ranked 15th in Great Places to Work 2006 survey
• The Corporate Citizen of the Year Award given by Economic Times.
• Flagship brands Goodknight, Cinthol and Ezee selected Superbrands by the
Superbrands Council
• Godrej Sara Lee, the JV between the Godrej Group and Sara lee Corporation,
USA is acknowledged the World’s largest mat manufacturers and South Asia’s
largest manufacturers of Coils.
• Godrej Consumer Products Limited, adjudged as a Business Superbrand by the
Super Brands Council.
• The Return on Capital Employed and Return on Net Worth ratios of Godrej
Consumer Products – the highest in corporate India.
• Godrej Consumer Products was awarded the “Best Managed Workforce” award
given by Hewitt Associates and CNBC TV18.
• Godrej Consumer Products features in the Top 25 list of Great Places to Work
(survey conducted by GrowTalent in association with Business World) for four
years in a row.
• Lifetime Achievement Award for Godrej Industries from CHEMEXCIL, the
Basic Chemicals Pharmaceuticals and Cosmetics Exports Promotion Council.

CORPORATE SOCIAL RESONSIBILITY (CSR)

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Corporate social responsibility (CSR), also known as corporate responsibility,
corporate citizenship, responsible business, sustainable responsible business (SRB),
or corporate social performance, is a form of corporate self-regulation integrated into a
business model. Ideally, CSR policy would function as a built-in, self-regulating
mechanism whereby business would monitor and ensure its support to law, ethical
standards, and international norms. Consequently, business would embrace responsibility
for the impact of its activities on the environment, consumers, employees, communities,
stakeholders and all other members of the public sphere. Furthermore, CSR-focused
businesses would proactively promote the public interest by encouraging community
growth and development, and voluntarily eliminating practices that harm the public
sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public
interest into corporate decision-making, and the honoring of a triple bottom line: people,
planet, profit.

The practice of CSR is much debated and criticized. 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; others yet argue that it is
an attempt to pre-empt the role of governments as a watchdog over powerful
multinational corporations. Corporate Social Responsibility has been redefined
throughout the years. However, it essentially is titled to aid to an organization's mission
as well as a guide to what the company stands for and will uphold to its consumers.

CSR ACTIVITIES OF GODREJ

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 TRUST/FOUNDATIONH OF CSR:

“PIROJSHA GODREJ FOUNDATION”

CSR AREAS:
Children
Community welfare
Education
Employee welfare
Environment
Healthcare
Rural development

TRHEE MAIN CSR ACTIVITIES:

Environment
Education and Children
Healthcare

CSR POLICY :
Environment Policy of Godrej consumer products ltd. Company has identified
biodiversity enhancement as a focal point.
The preservation of open spaces and especially green open spaces such as mangroves has
been a priority for the company.
Godrej strongly believes that this green environment enhances productivity and quality.
Godrej’s entire campus, known as Pirojshanagar, is an industrial garden township. It has
been greatly appreciated by all their employees and visitors.

CSR ACTIVITIES OF THE COMPANY :

They believe that environment, safety and health are important components of any well-
run business and would like every member of the Godrej 'parivar', and the extended
family, to inculcate these values. Godrej Company has a green image; the credit goes to
Godrej founders.
Until 1995 Godrej had not publicized their efforts. They were doing things for the joy it
gave them. It was in 1996 that they adopted the System's approach and then the entire
business was involved in changing processes and setting procedures to give due
consideration to the mangroves. As a matter of fact, some of the businesses found that the
conservation of mangroves actually helped them in strengthening business relationships
with clients, government and customers.  MANGROVE DEVELOPMENT:
Mangroves are essential to the ecology of the coast and the island. They provide fertile
ground for fish to feed and breed in and nurture a large variety of birds.Mangrove
conservation has been the key focus of the Environment Cell.
The Environment Cell has a broad mandate to mentor and monitor all their activities so as
to ensure high standards. The residential township and community around the company is
also focus of their environmental cell.

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 (MANGROVE AREA VIKHROLI)
BNHS and the Soonabai Phirojsha Godrej Foundation made efforts to replant mangroves
in Vikhroli-Ghatkopar in the early 90's

THE SOONABAI PIROJSHA GODREJ FOUNDATION

(Mangrove Project)

FOUNDED/OPENED

SPMEC was formally inaugurated in 1985 under the leadership of the late Dr. Salim Ali,
one of the world's most honoured ornithologists, the late Dr. A.K. Ganguly (a reputed
botanist) and Dr. H.N. Sethna. The aim was to protect the 1750 acres of mangrove forest
on land owned by the Foundation and the Godrej & Boyce company. The scope of the
project was further expanded by creating a research, education and conservation base.

DESCRIPTION:

This is the first privately managed mangrove area in India and probably the first
mangrove management project in the world to formally adopt ISO14001 standards for
Environment Management System. This system has been amalgamated with the corporate
environment policy of the parent company, Godrej & Boyce Mfg. Co. Ltd. and is looked
at as a success story for the corporate environment.
Several short- and longterm research projects have been undertaken including the
biodiversity of Thane creek, vegetation mapping, satellite imagery studies, pollution of
Thane creek etc. Researchers from various universities and organisations are encouraged
to conduct research projects and surveys in Pirojshanagar mangroves.Regular mangrove
plantation activities have been conducted since the project's inception. Studies reveal an
18% increase in vegetative cover due to conservation measures taken so far. This is an
outstanding achievement since more than 50% of Mumbai's mangroves have been
destroyed in the last 20 years.

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The Mangrove Interpretation Centre (MIC) is situated in Udayachal Primary School,
Vikhroli (total area = 475.3 square metres). The Centre is involved in educational
activities such as nature trails, audio-visual shows and other activities related to the
mangrove ecosystem. The objective of the MIC is to spread environmental awareness
using mangroves as a platform. MIC has been largely responsible for promoting
mangrove awareness in Mumbai and the State of Maharashtra. Thousands of people have
visited the centre, including many forest officials on training programmes. New
mangrove conservation groups have become established in the city as a result of MIC
awareness and conservation programmes.
As part of the Centre's ISO 14001 certification, it complies with the requirements of the
evaluating agency, TUV International. Feedback is collected from visitors and forwarded
to the management. Relevant suggestions are adopted to improve the effectiveness of
conservation measures.

KEY SPECIES/FEATURES:

Pirojshanagar mangroves have an amazing biodiversity. There are approximately 15

mangrove species and associatesin the 1,750 acre area.
The total plant diversity exceeds 200 species.
Marine biodiversity is represented by 20 fish spp., 15 crab spp., 7 prawn spp., and several
molluscs.
Terrestrial fauna includes 206 bird spp., 33 reptile spp.,12 mammal spp.
Examples of prominent animals include Jungle Cat, Asiatic Jackal, Wild Boar, Indian
Mongoose, Binocellate Cobra, Russell's Viper, Rat Snake, Rock Python, Indian Monitor ,
Dog-faced Water Snake, Wart Snake, Common Skini, Snake Skink, Lesser Spotted
Eagle, Greater Spotted Eagle, Marsh Harrier, Hen Harrier,and Buzzard. The wetland is an
important stopover for over 100 species of migratory birds. A recent study showed 29
spider spp. within just eight hours of a field search.Surveys are ongoing for a detailed
biodiversity inventory of the wetland.

GENERAL:

SPGMEC has adopted a three-fold approach for mangrove protection - research,

conservation and education. All the activities of the Centre are planned and conducted to
equally justify these three aspects.
SPGMEC believes in the 'wise use' of wetlands and discourages unsustainable
development activities that would adversely affect the mangrove ecosystem. The
SPGMEC has been involved in mangrove conservation much before mangroves were
classified as forests and protected by Indian legislation.
There is little community education work. Most of the population around the wetland is
an urban one which is not directly dependent on the wetland for its livelihood. There a
minority of fisherfolk but no CEPA programmes for them. The situation may change if
the Thane Creek area is designated a Ramsar site as proposed by Maharashtra State to the
Government of India. There is wide scope for community work as over 10,000 people
live in the surrounding area and depend on the wetland for fish and shellfish.
The wetland has also been linked to the Industrial Garden Township of M/s. Godrej &
Boyce Mfg. Co. Ltd. Being a part of the Environment Management of the Township and
12
industry, it has been made mandatory for the industrial processes and the Township
activities to rigorpously observe environmental norms.
Garbage is treated on the reduce-recycle-reuse principle. Effluents and seage are strictly
monitored and recycled to the maximum capacity. To keep the wetland safe, the only
secured landfill in the city has been built to avoid land or water contamination. The
SPGMEC mangroves are being treated as ecological indicators for the environmental
performance of the industrial and residential township.
An Animal Rescue Programme was started in 1993. Over 1,000 birds, 400 repatiles
(mostly snakes), and some mammals (monkeys, jackals, mongoose and a Leopard) have
been rescued and rehabilitated. The programme has changed people's mentality and is
helping in creating a comfortable relationship between people and animals. The
Foundation published a book, ' Symbiosis of Industry and Nature', about wildlife and
particularly urban wildlife. The book is available to employees at a subsidised price.

INTERPRETATION AND EXHIBITORY

The Mangrove Interpretation Centre is designed for the interests and needs of a variety of
target groups. These include students, teachers, NGO’s, Government departments (related
to environment, forests and urban development), and common citizens.
The Centre contains attractive posters depicting information about aspects of the
mangrove ecosystem including world distribution of mangroves, Indian distribustion,
mangrove adaptations, associated biodiversity, and the ecological and economical
importance of mangroves. Since the major target group is students, some of the posters
describe the role of students and laymen in nature conservation. Some rotating displays
with a picture on one side and its description in verse form on the other side is a simple
play for children. Another activity is the 'Tree of life' where descriptions of various types
of plants and animals found in a mangrove ecosystem are written on a wooden panel
shaped in tree form.
The children are given pictures of these lifeforms and asked to place them at the correct
places. To make children aware about underwater biodiversity and seashore animals, two
dioramas have been specially designed.
The Centre also has a collection of natural specimens such as snake moults, abandoned
bird nests and marine shells that are used to discuss biodiversity and related issues.
SPGMEC believes in informal techniques rather than classroom sessions for effective
education, and has adoped the 'learn with fun' approach with students.
. The nature trails are guided by an Education Officer and sometimes by volunteers. A
new MIC is being planned at the periphery of the Pirojshanagar mangroves so that it is
easy for visitors to visit the mangroves and to relate the information displayed in the
Centre with actual sightings in the field. Work is in progress to develop and maintain a
marine aquarium.

FORMAL (SCHOOL AND UNIVERSITY) LEARNING:

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Mangrove Education is not a part of the formal curriculum. Hence, activities for schools,
colleges and universities are mainly considered as extracurricular activities. As a general
rule, schools and colleges are contacted at the beginning of the year and, as and when
requests come from them, the programmes are structured, scheduled and conducted.Some
colleges and university students take up shortterm projects on subjects related to the
mangrove habitat.
These programmes are mainly college/university programmes and infrastructure for
the field studies and guidance is provided by the Centre. The projects range from 15 days
to a maximum of three months duration. Project eveluation is done separately by the
Centre and parent institution of the student.

INFORMAL (GENERAL PUBLIC) LEARNING

The Soonabai Pirojsha Godrej Foundation has published a book, ' Godrej - A
Symbiosis of Industry and Nature', a pictorial guide with lay person information about the
flora and fauna of Pirojshanagar, Godrej Township and Pirojshanagar mangroves.Every
year, a number of awareness programmes are conducted to discuss a range of
environmental issues for the residents of Pirojshanagar mangroves. Education
programmes for students of the Godrej schools are conducted regularly to make them
aware about the importance of the mangrove ecosystem situated in their 'backyard'.

Activities such as nature walks, bird watching (etc.) are conducted on weekends for the
public to create concern for the environment and mangroves in particular. Thus, the
mangrove conservation project is used as a platform to create awareness among citizens
about environmental issues in general.
Every year since 1998, World Wetland Day has been celebrated with the
participation of the Township residents and other interested citizens with a series of
entertaining and educative activities.

MANAGEMENT AND FUNDING

The Soonabai Pirojsha Godrej Foundation is a public charitable Trust registered
under the Bombay Public Trust Act, 1950. The Foundation works mainly in social fields
like education and medical aid etc.
Soonabai Pirojsha Godrej Marine Ecology Centre (SPGMEC) is part of the
Foundation., and is partly funded by the Trust and partly by M/s. Godrej & Boyce
Mfg.Co. Ltd., a multi-product Indian corporate.

The Foundation also seeks aid from donor agencies for general or specific
programmes for mangrove conservation. The project is managed by trustees of the SPG
Foundation and an Environment Cell - an advisory body. Members of the Environment
Cell are eminent environmentalists and scientists..

GARDEN DEPARTMENT:

Garden Department looks after the natural environment of numerous areas in Mumbai
and in other cities where Company have establishments.
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Company is engaged in the propagation of various species of orchids, medicinal plants
and rare endemic species, amongst others.
For the Godrej family Nature has always formed an important part of their upbringing
and their garden township at Vikhroli bears witness to this.

OTHER DEPARTMENTS:
Godrej has formed specialist groups, for example
• The Envirotech Group – for pollution-reduction and related matters;
• The Encon Group – for energy conservation

ENVIRONMENT AWARENESS PROGRAMS

Godrej have been focusing on environmental education and, over the years, Godrej
has successfully oriented thousands of school, college and graduate students, across the
country, through their Mangrove Awareness Programs.
Every year thousands of students visit the mangrove area. They are guided on specially
organized tours, which are interesting and educative.
In our Godrej Udayachal Schools they have been educating on environment for many
years. Right from the preprimary level the children are exposed to the mangrove area,
where they are introduced to plant and animal life, flora and fauna.
Many of them are likely to become naturalists of a high order. Their High
School students have a special mangrove club and the Soonabai Pirojsha Ecological
Mangrove Project runs a programme in Mumbai city for school and college students.

15
Godrej offers researchers and naturalists every facility to conduct studies on this most
important, but long neglected eco-system.
All Godrej’s business heads are more than adequately equipped and empowered to make
decisions in business as well as on safety, health and environment.
All the groups report to their divisional heads that have direct access to the chairman.
Most of Godrej’s businesses have the ISO 14000 certification, along with
strong Environment Management Systems.
According to the System's requirement, most environmental matters are resolved at the
business level. These important issues are addressed at weekly meetings of
business heads.

What's New….???
During last financial year, Soonabai Pirojsha Godrej Marine Ecology Centre conducted
around 200 comprehensive education programs comprising of nature trails, slide shows,
film shows, lectures, games and role plays on Biodiversity and Mangrove conservation
for different school children, college students, G&B management trainees and citizens
group.

Four research studies were undertaken by different research students from various
institutes under the guidance of experts in our centre.

1. Socio-ecological study of mangroves in Carter road, Bandra, Mumbai by Mr. Jobi

Cherrian, post graduate student from Bharathi Vidyapeeth, Pune.
2. A study on Antimicrobial properties of different mangrove species by R.
Shrinivasan, Vivekanand College, Chembur.
3. Mangrove environment in Malad creek by Ms. Meenakshi Malik, Sikkim Manipal
University.
4. A Comparative assessment of status of Mangrove fauna in different areas in
Vikhroli by Vikas College, Vikhroli

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 EVENTS ORGANIZED BY SOONABAI PIROJSHA GODREJ
MARINE ECOLOGY CENTRE

VANMAHOTSAV – 2010

The Van-mahotsav was celebrated during first week of July 2010 by Garden and
Mangrove department.

EARTH DAY CELEBRATION 23RD APRIL, 2010

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As a part of Earth day celebration this year on 23rd April, SPGMEC had organized a
Film Show on Our Mother Earth - HOME by Yann Arthus Bertrand (renowned French
photographer, journalist and environmentalist), which included aerial footage over fifty
countries. Fifty representatives of Environment Department of different companies and
interested Godrej employees participated in the program. Film show was followed by
Nature trail in the Mangroves.

FLAMINGO WATCH ORGANIZED FOR NISARG AND GREEN CLUB

On 16th march 2010 the nature lovers of Godrej started their New Year - Gudi Padwa -
celebrations with great enthusiasm in the company of thousands of pink beauties in the
Sewri mudflats. The Flamingo watch organised by Nisarg and Green club had good
participation of around 25 people despite many cancellations because of Gudi
celebrations. The group started from Hillside colony by 8 am and reached Sewri in 20
minutes. Some of the participans not staying in the colony had also come directly to
Sewri by train. They were welcomed at Ghaslet bunder by several thousands of pink
flamingoes almost completely covering the huge expanse of mudflats exposed due to low
tide. It was a spectacular sight and as the tide rose they came even closer and all the
shutterbusg had a whale of a time. We spend around three hours till the high tide covered
the mud flats and Flamingoes retreated. Overall it was a great experience to have
witnessed one of nature’s spectacular show right within the city of Mumbai.

18
CORPORATE GOVERNANCE

19
Corporate governance is the set of processes, customs, policies, laws, and institutions
affecting the way a corporation (or company) is directed, administered or controlled.
Corporate governance also includes the relationships among the many stakeholders
involved and the goals for which the corporation is governed. The principal stakeholders
are the shareholders, the board of directors, employees, customers, creditors, suppliers,
and the community at large.

Corporate governance is a multi-faceted subject. An important theme of corporate

governance is to ensure the accountability of certain individuals in an organization
through mechanisms that try to reduce or eliminate the principal-agent problem. A related
but separate thread of discussions focuses on the impact of a corporate governance
system in economic efficiency, with a strong emphasis on shareholders' welfare. There
are yet other aspects to the corporate governance subject, such as the stakeholder view
and the corporate governance models around the world.

There has been renewed interest in the corporate governance practices of modern
corporations since 2001, particularly due to the high-profile collapses of a number of
large U.S. firms such as Enron Corporation and MCI Inc. (formerly WorldCom). In 2002,
the U.S. federal government passed the Sarbanes-Oxley Act, intending to restore public
confidence in corporate governance.

CORPORATE GOVERNANCE OF GODREJ

20
The corporate governance framework of our organization is based on an effective
independent board and separation of the board’s supervisory role from the executive
management team. The Board has twelve directors, out of which six are independent
directors with distinguished careers in government, academia, and business. In
recognition of GPL’s strong corporate governance practices, Accommodation Times
presented Godrej Properties with the ‘Corporate Governance of the Year’ award for
the year 2008.

21
 Financial Daily from THE HINDU group of publications
Friday, Oct 08, 2004

Base corporate governance on

principles: Adi Godrej
AN executive board of 10 young managers who look at issues such as strategy, corporate
governance and human resource development will report their findings once a quarter to
the regular company board. This is one of the many initiatives to improve corporate
governance in India today; at least in the Godrej Group, according to Mr Adi Godrej,
Chairman, Godrej Group.

It is important that corporate governance be principle-based rather than rule-based. This

is essential since principles are harder to `get around' compared to rules. "In trying times,
the temptation to seek loopholes in the rules remains large. However, with principle-
based corporate governance, the quality of governance is as robust as the principles," said
Mr Godrej.

Mr Godrej was addressing the 32nd national convention of company secretaries in

Mumbai on Thursday.

There is no strategy more important for company secretaries than improving the corporate
governance in companies that they work for, Mr Godrej said.

"The present crisis of confidence on corporate leadership owes its origin to the failures of
seemingly infallible corporations like Enron, Arthur Andersen, Tyco, Worldcom etc. The
recent US mutual fund problems have further added to the interest,'' he said.

Mr Godrej emphasised that corporate governance is not just another management or

social fad, but is the ultimate management tool. "Good corporate governance is a very
rewarding journey for those who choose the right path," he said.

22
 LEADERSHIP IN TIMES OF CRISIS: CORPORATE
GOVERNANCE
‘Principle-Based Governance Works’

Godrej Group upholds the highest standards of governance

NAME: Adi Godrej

DESIGNATION: Chairman,
Godrej Group

Companies in developed countries have managed to separate management and

ownership. Most Indian companies, however, are promoter-run with members of the
family at various levels in the management. This can lead to a conflict of interest,
recently highlighted in the case of Satyam Computers, unless carefully tempered.
Implementing principle-based governance and, encouraging professional independent
directors are some of the ways the Godrej Group ensures this balance — and some of its
group companies have even gained highest ratings in terms of stakeholder value creation
and management, as well as corporate governance practices by ICRA. Once chairman of
the Confederation of Indian Industry (CII)’s council of corporate governance,
Adi Godrej, chairman of Godrej Group, shares his views with BW.

How has the situation at Satyam affected the perception of India Inc. in terms of
corporategovernance?
I don’t think it has dented corporate India’s image at all. it is criminal behaviour, and has
nothing to do with corporate governance. We should treat it as an aberrational behaviour
and not take it as any landmark or important reason why corporate governance should be
dented in India. International investors in India are all registered FIIs; they too realise that
this is anaberration, it happens in other countries also. It’s difficult to root out criminality
completely; it is bound to raise its ugly head time and again. In the Satyam case, the
government has acted very quickly to assuage the investors and to see that the company
continues on its path of progress. So, that was a good message we sent out to the rest of
the world.

23
In India, a majority of the companies are run by promoters. What is the incentive
for them to follow good governance?

First of all, one thing is very clear — with the Satyam episode perhaps more so — that
good governance will lead to better market capitalisation. And market capitalisation helps
the promoter group raise funds and more investors. The message is loud and clear that
bad CG is negative for both the company and the promoter. Another thing that was
apparent after the Satyam case was that when a promoter holds a very small share, the
incentive for good CG becomes lesser. When a promoter holds a large share, anything
going wrong in the company hurts him very badly.

What kind of reporting should be made mandatory?

According to Sebi regulations, we have a very comprehensive list of items that have to
appear in the annual report, in what format, what needs to be done at the board level, etc.
So, I think we have some of the best standards of corporate governance in the world
today. Clearly, execution and implementation is important, but the basis of governance is
good. A couple of years ago, CLSA — a major analyst and investing company — had
rated us third, after Hong Kong and Singapore.

Since it is more of an ethical issue rather than a legal one, how far can regulatory
impetus ensure governance?

Yes, of course. Corporate governance should not be driven only by regulation. We need
to have the basic regulations, but it should be principle-based; because by doing so you
ensure that CG is followed in both difficult and easy times. A friend of mine once
remarked that we shouldn’t make the regulations such that they become weapons of mass
distraction. If you have too many things to adhere to, you are distracted from the
company affairs.

Several committees have highlighted aspects of CG that could be improved, but with
little success. Are companies waiting for the regulators to enforce practices?

No. A couple of years ago Sebi brought in clause 49, which added a lot of value to
governance. The J.J. Irani committee produced a report on the companies act amendment,
which has been taken forward. Though they might not become legislation immediately,
once they are published, many companies will start adopting the practices.
24
Clause 49 also recommended the number of independent directors on the board. But
there appears to be shortage of people qualified for the job.

Not really. The CII and many other agencies have a list of potential independent directors
to choose from. It is very important that independent directors be truly independent. All
committees in the Godrej group — audit, nomination, shareholders — consist of
independent directors only. So there is no promoter influence on the decisions taken by
them. But still, it will be terrible if the government were to appoint independent directors
for a company. It is a learning process, and today, at least 20 Indian companies are among
the best governed in the world.

How does Godrej ensure good governance?

I’ll take the example of Godrej Consumer Products, which is our highest market cap
listed company — we hold about 70 per cent of the shares. When we first set up the
board, we invited independent directors who had professional reputation, not industrialist
friends. I think industrial friends are not able to devote enough time to the company.
Secondly, all our board meetings last at least half a day — no perfunctory meetings.
Every year, the January board meeting is a two-day offsite affair, which devotes a lot of
time on strategy.

How would you define corporate governance?

Our corporate governance is much beyond the legal minimum that is prescribed. It looks
into the interests of all stakeholders. One of the misconceptions is that it is to protect the
interests of the minority shareholders. But I think it is to protect the interests of the
company as a whole.

Difficult times such as now gives a good excuse to companies not to adhere to good
governance. What is your take on that?

That is a mistake, if they do. Some of the best corporate governance is from the new IT
companies. Young entrepreneurs have strong principles. In fact, negative governance is
practiced by old family businesses who believe that protecting the interest of the
promoter is vital. But that perception is changing.

(Businessworld Issue Dated 27 April-04 May 2009)

25
 CORPORATE GOVERNANCE ACCORDING TO

OPPORTUNITIES FOR LEARNING GROWTH:

The work culture in Godrej supports learning at every stage of your work life.
Opportunities in learning are available in the technical, functional, behavioural, general
management and leadership areas through options like EDPs (Executive Development
Programmes), MDPs (Management Development Programmes), E-learning and On the
Job exposure to International Practices.
Respect and recognition of performance is an inextricable part of our work culture.
Consistent performance becomes the benchmark for growth opportunities, job rotations,
remuneration, reward and recognition. We provide equal opportunities to our employees
to grow both horizontally & vertically through cross functional, cross business and cross
location job rotations. This gives immense opportunities to professionals to add value to
them and to satisfy their career aspirations.

EMPLOYEE CARE:

We believe in the philosophy of holistic employee care. We not only take care of the
employees but of their families as well. Take a glimpse of the facilities and welfare
activities provided for our employees & their families at Vikhroli campus.

RESIDENTIAL COMPLEX

26
 THE UDAYACHAL SCHOOLS

GODREJ HILLSIDE CLUB

THE GODREJ MEMORIAL HOSPITAL

THE EMPLOYEE CO-OPERATIVE CONSUMER SOCIETY

27
 PRAGATI KENDRA

Other corporate developments

• ICRA (Investment and Credit Rating Agency of India) has reaffirmed the CGR2+
rating to the Corporate Governance Practices of the Company. This is on a rating
scale of CGR1 to CGR6 where CGR1 denotes the highest rating. The + sign indicates
a relatively higher standing within the category indicated by the rating. The
CGR2+rating Implies that in ICRA’s current opinion, the rated Company has adopted
and follows such practices, conventions and codes as would provide its financial
stakeholders a high level of assurance on the quality of corporate governance.

• ICRA has reaffirmed the SVG1 rating for Stakeholders Value Creation and
Governance practices of the Company. This is on a rating scale of SVG1 to SVG6
where SVG1 denotes the highest rating. The SVG1 rating implies that in ICRA’s
current opinion, the rated Company belongs to the Highest Category on the composite
parameters of stakeholder value creation and management as also corporate
governance practices.

“Pass it forward”
28
 Says
GODREJ GROUP

25% of the shares of the Godrej Group’s holding company Godrej & Boyce are held in a
trust that invests back in the environment, healthcare and education. Which means
business is not just about revenues and profits but keeping our land green, our
communities healthy and our kids smart. In 1920, our founder Ardeshir Godrej gave a
donation of Rs. 3 lakhs to the Tilak Swaraj Fund – then considered a princely sum – for
upliftment of the downtrodden. His gesture of philanthropy grew into Godrej corporate
policy. Giving back turned into our way of saying thank you to the 400 million Indians
who are Godrej loyalists.

Education
Udayachal Schools:
29
Udayachal schools (pre-primary, primary and secondary), managed by Godrej, have
been providing quality care and education since 1955. Education in the schools focuses
on total personality development of the child, which is further enhanced and
strengthened through joyful learning. This takes into account the physical, socio-
emotional, aesthetic, spiritual as well as mental growth.

Teachers here play various roles – that of a facilitator, counselor, guardian and a learner.
The individual needs of each student are catered to, ensured by a healthy teacher child
ratio.

Great emphasis is laid on creativity – pioneering in recycling waste material such as

paper, glass, metal, plastic etc. in the art and craft classes, and also using them to make
teaching aids. Even used paper is transformed into beautiful creations of Papier-mache.
On the technical side, subjects such as carpentry, fitting, electronics, plumbing and
computer skills are offered.

Environment consciousness is kindled in every child – through various programmes

marking World Wetlands Day, World Population Day, World Forestry Day etc. to name
a few. With ISO-14001 certification, Udayachal Schools are doing their bit towards the
environmental concerns.

There is a constant endeavour to create a happy and fun-filled learning environment for
children. Through experiential learning, young inquiring minds are developed. Children
are given freedom to discover, explore, question and make choices. They are active
initiators of their own learning process through which they strive to reach their true
potential

Teach For India (TFI)

30
Teach for India (TFI) is a nationwide movement that aims to narrow the education gap in
India by placing outstanding college graduates and young professionals, who commit
two years to teach full-time in under resourced schools. They will become lifelong
leaders working from within various sectors toward the pursuit of equity in education.

Godrej group has pledged to sponsor employees for the TFI Programme, as a
contribution towards educational opportunity for all Indians. Godrejite Veena Verma
was one of the recent 94 selected out of thousands of applicants.

The TFI Fellowship is a challenging assignment aimed at transforming the participant’s

life. As a Teacher, each day is likely to offer multiple opportunities to confront and
tackle challenges, motivate diverse stakeholders to work hard toward a shared vision,
and create and adjust plans to move further towards their intended goals. Every TFI
Fellow has two main responsibilities: classroom instructional leadership and community
transformation project.

Healthcare
31
Godrej Memorial Hospital

The Godrej Memorial Hospital (GMH) has treated 35,000 patients and performed 3,128
surgeries since inception. We provide quality healthcare services at an affordable cost in
a rational and ethical manner. We have free well-equipped cardiac ambulances to attend
to medical emergencies in a 10 km zone. An Anti Retroviral Treatment Center in
association with NACO is available for HIV patients.

GMH was set up by Godrej Memorial Trust. The objective of the hospital was to create a
balance between the philanthropic hospital in the city and the private hospitals. For this,
an alternate business model was created which would emulate philanthropic hospitals but
have high quality healthcare services at an affordable cost.

The hospital has implemented this unique business model, and today even the highest
rates in the state-of-the-art hospital are 40-60 percent lower than other private hospitals.
The model is inspired by the concept of Sustainable Philanthropy. This model was
adopted with the belief that a wholly philanthropic model would not be sustainable and
would grow only in a very limited sense.

GMH has been awarded the NABH (National Accreditation Board for Hospitals)
accreditation w.e.f. 1st July 2009. GMH is now in the league of a select few hospitals in
India to have achieved the same. The hospital has to comply with more than 500
predetermined objectives to receive NABH accreditation. The accreditation assures
‘Quality of Care & Patient Safety’ in accredited Hospitals. NABH standards are
accredited by International Society for Quality in Healthcare (ISQua) as consistent with
its global benchmarks.

AIDS Awareness

32
Godrej supports The Heroes Project in trying to bring an end to misconceptions and in
spreading awareness about HIV and AIDS. In addition, employees are urged to take
preventive care to combat AIDS through posters, hand outs, street plays and talks.

Heroes AIDS Project is a national initiative launched in July 2004 to work with media
organizations and societal leaders in India. It seeks to develop coordinated campaigns to
address the spread of HIV & AIDS and reduce stigma and discrimination by influencing
public perception and policy through two platforms: advocacy and communications.

The project had its beginning in a fund raising event for pediatric AIDS organized by
Mrs. Parmeshwar Godrej called ‘A Time for Heroes, India’. The event, held in
December ’02 was hugely successful and brought together Indian media, entertainment
and business houses which committed to use their combined strength to advocate on
issues related to HIV and AIDS.

India, with its population of over one billion people, requires timely and sustained
intervention in the area of HIV and AIDS. Heroes AIDS Project aims to harness India’s
communication power by converting the passion and ideals of a small but powerful core
of concerned individuals into tangible actions by the government and public in India.
The Project seeks to advocate with the Indian government to strengthen existing methods
of information distribution; and create a range of communication materials to
complement advocacy and media initiatives so that the public is connected to important
HIV and AIDS related services.

Twenty-eight television PSAs and numerous radio PSAs productions and around 29,000
times their airing across various media networks later, Heroes AIDS Project is the largest
non-governmental media campaign garnering nearly fifty-percent of the media exposure
on HIV and AIDS in India.

Blood Donation

33
A blood donation camp is organized by Godrej every year on the death anniversaries of
its founders Naval Godrej and Burjorji Godrej. Godrejites support this noble cause in big
numbers and save precious lives of fellow humans. The number of people donating
blood in consecutive years has always shown an encouraging trend.

Leading hospitals, the Red Cross Society and Indian Medical Association extend their
help in conducting these camps

Smile Train

34
Millions of children in India and other developing countries are born with this handicap
called Cleft Lip where they are unable to smile properly. The good news is that almost
all can be helped by skillful plastic surgery.

Godrej Memorial Hospital (GMH) along with a US based NGO ‘Smile Train’ conducts a
program, for helping these very children from poor families. The program consists of
primary consultation and screening followed by expert plastic surgery. The operation
lasts for any where between 45 min. to three hours depending on the extent and
complexity of the defect. Several of the patients are offered follow up speech therapy
and other support services. Children operated at a younger age seem to derive optimum
benefit. Over 300 surgeries have been successfully conducted at GMH till date. GMH
offers surgery and hospitalization to the patient and one attendant completely free of
cost. Deserving cases are also reimbursed travel costs by the hospital.

Foundation for Medical Research

Godrej supports the Foundation for Medical Research (FMR), Mumbai, particularly for
the cure of leprosy. This Foundation is intended to develop an alternative model the
immunological concept regarding leprosy cure. Through a rural health and research
project, Godrej has striven to develop an alternative model for rural health care based on
community participation, with the emphasis on preventive rather than curative aspects

Preserving our Heritage

35
Godrej's devoted effort to preserve India’s architectural heritage, is best expressed by its
active participation in the Indian Heritage Society of which Mrs. Pheroza Godrej is a
past President and the late Mr. S. P. Godrej was head of the Mumbai Chapter. The
introduction of the annual Urban Heritage Award is an attempt to make the citizens of
Mumbai aware of the city's colourful history, as the primary object of the Indian
Heritage Society is to awaken consciousness of the people in the diversity and richness
of their art, architecture and culture. But it is also the objective of the society to deal with
natural resources – such as wild life, forests, mountains, sea, beaches, lakes and rivers
and rare geographical formations. It draws attention to the dangers which threaten these
irreplaceable resources and calls for action to protect and preserve them.

Other Initiatives
Scout & Guide Pavilion
The Pirojsha Godrej Scout and Guide Pavilion, in existence since 1923, was restored by
the Pirojsha Godrej Foundation between 1983-85 and made available to organisations
like the World Wide Fund for Nature (WWF), Friends of Trees and Bombay Natural
History Society (BNHS). In 1997, the area outside the hut was developed into the Godrej
Centenary Garden – a haven for tired pedestrians. Godrej continues to maintain the hut
and garden.

Tsunami Rehabilitation Project

The Confederation of Indian Industry (CII) and Godrej employees voluntarily supported
150 families in the Tsunami stricken Pallayar (in Nagapattinam district) and Azhikal (in
Kanyakumari district) by providing fishing equipment, boats, engines etc., funding a
community health center and providing skill based training to 200 residents. A sum of
over Rs. 56 L was handed over to CII.

Crematorium for animals

Shocked by the horrifying conditions of the dilapidated incinerator at Bombay
Veterinary College, where Naval Godrej’s pet labrador was cremated, he sponsored the
very first electric crematorium at the Bai Sakarbai Dinshaw Petit Hospital for animals at
Parel, the first non-polluting crematorium of its kind in Asia.

Table for Two

Godrej instituted the Indian chapter of ‘Table For Two’ initiative at the World
Economic Forum’s India Economic Summit in December 2008. This initiative is

36
targeted at addressing hunger and malnutrition in the developing world by combining the
organization’s tradition of serving society and involvement of individuals.

Godrej pledged to collect funds that would be utilized to provide school children mid-
day meals. The fund was created in three ways. Firstly, a ‘healthy meal’ option was
provided in the canteen menus to the employees. The savings from the reduced use of oil
and sugar were diverted to the central pool of funds for the ‘Table For Two’ initiative.
This means that each time an employee ordered a ‘healthy meal’, the savings contributed
to this fund and provided Godrejites with an even healthier alternative for lunch.
Secondly, Godrejites voluntarily contributed a fixed monthly amount to the fund.
Thirdly, the contribution from the ‘healthy meals’ menu was matched by Godrej and
effectively combined corporate and employee participation.

The initiative has been a great success within the first few months of its inception – with
a sizeable fund that is geared to feeding close to 780 school children and providing for
1,56,000 meals annually.

Family Planning
Godrej has been connected with the Family Planning Foundation, which is a voluntary
organisation devoted to promote Family Planning as a basic human right, as well as
population Policies which can help bring about a balanced development of the resources
of the country-both human and material - as a means towards raising the quality of life.
‘Pragati Kendra’ imparts not only information regarding Family Planning but, through
various social and cultural activities, provides for a better quality of life for the
inhabitants of the township.

A Family Planning Centre was opened in September 1957. Family Planning advice and
conventional contraceptives at concessional rates were provided. Family Planning
Exhibitions were held. A Vasectomy Centre was opened. Volunteers were trained in an
intensive one-week orientation course. Incentives are offered to persons undergoing
vasectomy and tubectomy operations. In 1965 a Research Centre was opened with the
help of Dr. R. P. Soonawala and the Ford Foundation authorities. To give fillip to the
family Planning Programme, the services of two American Peace Corps volunteers were
engaged.

The Family Planning Programme is an integral part of the “Family Welfare Programme".
A ‘Well Baby Clinic’ has been opened for giving advice to mothers about their children's
health and hygiene as also for advising them about IUCD and oral contraceptives. About
1135 children have been treated so far at this clinic. This long-standing Family Planning
programme has definitely been able to lift workers into the middle-class, at least at
Godrej.

CSR ACTIVITIES OF GODREJ

AS PER

37
 This section presents Karmayog's view on Corporate Social Responsibility, & how
Companies can undertake CSR programmes.
The section contains:
a) Details of the CSR activities of the 500 largest Indian Companies & other Indian
Companies.
b) Karmayog CSR rating of the largest 500 Indian Companies, & sector-wise analysis
of the same.
c) Recommendations, guidelines, reporting formats for Companies to adopt
d) Opportunities available for NGOs under the CSR programmes of various
Companies.

Godrej Industries Ltd

Sales (2007-2008) = Rs.800 crores (rounded off)

Net profit after tax = Rs.100 crores (rounded off)
CSR Budget = Not Available

Karmayog 2008 CSR Rating: 3/ 5

CSR activities:

Environment and Social Concerns

Your Company continues its efforts for the betterment of the environment and
conservation of scarce natural resources. Your Company continued “Rain water
harvesting” initiatives undertaken during the previous year at its Vikhroli Factory and in
the staff quarters at Vikhroli. So far 8,500 Sq. Meter of roof area has been covered under
the rain water harvesting initiative and 22,500 M3 of water has been collected at the
factory and staff quarters in Vikhroli. This process has resulted in saving water and
consequently, the costs thereof. Recharging of two bore wells with rain water has also
been undertaken, which resulted in improvement of yield and quality.
The Effluent Drainage System for carrying effluents from the chemical plants was
upgraded. To prevent pollution to environment, waste from the factories is converted into
an environment-friendly product and then disposed off safely.

More Areas of wasteland have been converted into gardens using water from the Effluent
Treatment Plant. The Vikhroli factory continues to convert the bio degradable waste into
bio compost with the help of an NGO. The process of bio composting has been enhanced
with the use of enzymes to reduce the frequency of decomposition.

38
The Confederation of Indian Industry (CII) - Sohrabji Godrej Green
Business Centre has evolved a Code for Ecologically Sustainable Business Growth.
The Code comprises of “Ten Natural Capital Commandments”, which include,
commitments to reduce specific consumption of Energy and Water, reduce Green
House Gas (GHG) emissions and all kinds of waste. Your Company has been an
early and enthusiastic adopter of this Code. Electricity produced by your Company’s
wind mills have resulted in reduction in emission of CO2 for which your Company was
granted CERs (Certified Emission Reduction). Unfortunately in the current year, the
windmills have produced less electricity than expected. Your Company has started a
concept of “Table For Two” under which the Company will sponsor mid-day meals to
students coming from the underprivileged section of the society. Your Company is also in
the process of signing an agreement with a logistics service provider for distribution of
mid-day meals to a number of schools in Mumbai

Malanpur factory of Godrej Consumer Products LTD (GCPL) organised

Sports & Cultural Activities for Singwari School children on Feb 18 & 20,
2006. Prizes were distributed prizes to the winners

“MANDATORY CSR NOT A GREAT IDEA, FEELS INDIA INC”

Published on Thu, Aug 05, 2010 at 21:57 | Updated at Fri, Aug 06, 2010 at 11:08 |
Source : CNBC-TV18

39
Corporate social responsibility (CSR) spends will now be made mandatory for corporate
India, sources in the Ministry of Company Affairs told CNBC-TV18. If approved,
companies will have to spend 2% of the average net profit on CSR.

Mandatory CSR will be made part of the amendment to the Companies Bill. Currently,
CSR 2009 guidelines are voluntary. CSR will be mandatory for companies with Rs 500
crore networth, Rs 1,000 crore sales, or net profit of Rs 5 crore or more. Such companies
will have to formulate a CSR policy. Directors will have to disclose CSR in their annual
report.

CNBC-TV18 had chronicled the social outreach initiatives of India Inc on its special
show ‘The Heart of Business’. Through the course of the series, influential leaders of
India Inc spoke about their take on making CSR mandatory.

Adi Godrej, MD, Godrej Group said, “Philanthropic organizations should be

allowed to operate reasonably freely and not with control to my mind. When
governments start controlling things, things don’t work as well as when people are
motivated to do these things.”

Kiran Mazumdar Shaw, CMD, Biocon Ltd says making CSR mandatory would make
it cosmetic. “I don’t think anything should be made mandatory because it then becomes
very cosmetic, I think there needs to be a realization from corporate India that they have
to necessarily engage in this because without that their businesses themselves are not sort
of exuding good governance,” she said.

Nitin Paranjpe, MD & CEO, HUL is not in favour of the idea. He said, “I am not in
favor, I don’t know what will be achieved, the history of this country and the companies
out here and many other people would have shown we try and do this people will find a
way out. It is not about ticking the box, it is about the belief that this will be good for us,
the more education that we can have around this issue, the more conviction that we can
build around this issue we will see a difference. I have said this to our teams when I talk
to them that if I trace the history of social responsibility in this country it has moved
considerably. Not long ago, at all times businesses realize that they must contribute to
society, but there was a period when it was all about charity and philanthropy etc.

CONCLUSION

40
 Godrej continues its efforts for the betterment of the environment and
conservation of scarce natural resources.
They say “they touch more consumers than any other Indian company- it’s not just
with soaps, locks and cupboards….”
It is because of their determination towards the helping hand to society and
commitment to serve better every time through their
CORPORATE GOVERNANCE & its CORPORATE SOCIAL
RESPONSIBILITIES.

BIBLIOGRAPHY

www.godrej.com

41
 www.godrejinfotech.com
www.godrejgospel.com
www.karmayog.org
www.thehindubusiness.com
www.slideshare.net
www.moneycontrol.com

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