MBA(PT)2011-14 Section B/Group:5

Deepak Bal (Roll No 67)

Harmeet Si Bhatia (Roll No - 71)

Kanwar Pal Singh (Roll No 74) Mandavi Sharma (Roll No 76) Gordhan Meghwal (Roll No - 106)

Some Important Facts.

Till 2009, Satyam was the leader in CSR amongst Indian Companies. B. Ramalinga Raju, used to be the Chairman of CSR Committee of Confederation of Indian Industries (CII). Satyam Foundation was its CSR arm. Its Philanthropy won several domestic awards for CSR e.g. Asian CSR Award under Poverty Alleviation category; Golden Peacock Global Award for Excellence in Corporate Governance (providing anti-money laundering solution)

Charity is the Narrow definition of CSR excludes Transparency, Governance, Anti-corruption and Accountability to stakeholders.

Ethics,

What is Corporate Social Responsibility

Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations of the society. - World Business Council for Sustainable Development
(WBCSD)

Why do Corporation have Social Responsibility

Business Reasons Rewarded with more satisfied customers Esteemed destination for employment Greater independent from Government Create an improved and stable competitive environment to do business Moral Reasons To solve problems those they cause e.g. Pollution Powerful social actor Corporate activities have social impact

Reply on the contribution of much wider set of contribution

The Nature of the Responsibility

How do Corporations respond for

CSR
Reaction- Denies the responsibility
Defence Admits but doing that is required

Accommodation Accepts and does what is demanded by the relevant group.

Pro-action- Go beyond industry norms

How do Corporations do CSR

(Not every country at same pedestal)

Explicit - CSR as an explicit activity US Implicit - CSR tightly embedded in the legal and institutional framework of society Europe Regulations; Asia & Africa- Religious, Customary, Tribal Tradition

Implications for Enterprises: CSR Management

How do companies address socio-environmental & legal compliance issues? Policies - Code of Conduct through explicit activities e.g. BPs emission target Systems - Compliance Management - Social Programs Like ISO 14000; ISO 26000; EMAS Reporting - Accounting and Reporting

Compliance Management: Management by certification

ISO 26000: Social Responsibility
ISO 26000:2010 provides guidance rather than requirements, so it cannot be certified to unlike some other well-known ISO standards. Instead, it helps clarify what social responsibility is, helps businesses and organizations translate principles into effective actions and shares best practices relating to social responsibility, globally. It is aimed at all types of organizations regardless of their activity, size or location

International CSR Norms

1.ISO 26000 2.UN Global Compact 3.ILOs Tripartite Declaration on Multinational Enterprises and Social Policy

ISO 26000 Format

Principles of SR
1. Ethical behaviour 2. Respect for rule of law 3. Respect for international norms of behaviour 4. Respect for and considering of stakeholder interests 5. Accountability 6. Transparency 7. Precautionary approach 8. Respect for human rights

Core Subjects
Organizational Governance

Implementing SR
7.3 Working With Stakeholders

7.2 Defining scope Fair operating practises Community & society development Consumer issues Labour Practises Human Rights

7.4 Integrating into organization 7.5 Implementing in daily practise 7.7 Evaluating performance 7.8 Enhancing credibility

Environment

7.3 Communicating

UN Global Compact
The Ten Principles of the UN Global Compact:

Human rights 1. Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence, and 2. Make sure that they are not complicit in human rights abuses. Labor relations 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining, and encourage 4. Elimination of all forms of forced and compulsory labor, 5. Effective elimination of child labor, and 6. Elimination of discrimination in respect of employment and occupation. Environment 7. Businesses should support a precautionary approach to environmental challenges, 8. Undertake initiatives to promote greater environmental responsibility, and 9. Encourage development and diffusion of environmentally friendly technologies. Combating corruption 10. Businesses should work against all forms of corruption, including extortion and bribery.

ILOs Tripartite Declaration on Multinational Enterprises and Social Policy

It is considered to be the most appropriate ILO norm for CSR. The tripartite declaration, revised in 2002, includes: Employment: Increasing employment possibilities and standards Promoting equality of opportunity and equal treatment in employment Avoiding arbitrary dismissal procedures Training: Appropriate training for employees in the host country / opportunities for local workers to extend their experience in suitable areas, e.g. labor relations, within the group as a whole Working and living conditions: No pay, benefits or working conditions which are less favorable than those enjoyed by comparable workers in the host country Adequate wages for workers and their families to meet their basic needs Effective abolition of child labor The highest health and safety standards Information about health and safety standards observed in other countries Instruction about particular dangers and the corresponding safety measures when new products and/or processes are introduced Labor relations: Freedom for workers to organize and associate Support for representative worker organizations Right for workers to make complaints without suffering disadvantage

Socially Responsible Investment (SRI)

The Dow Jones Sustainability Index (DJSI) and the FTSE4Good Index Series are independently defined and researched index series which aim to set an objective global standard for SRI covering: Environmental sustainability Positive relationships with stakeholders Human rights To qualify for inclusion, a company must meet selection criteria which focus on positive efforts of companies with clear and achievable targets for developing socially responsible policies and practices.

FTSE4Good Index Series

Market capitalization weighted indexes maintained by the FTSE group to measure the performance of companies that meet globally recognized corporate responsibility standards. The FTSE4Good Index Series is designed to provide exposure to companies that are managing their social and environmental risks. At the same time, they also help ethical investors avoid companies that aren't.
To be included in the FTSE4Good Indexes companies must: support human rights, have good relationships with the various stakeholders, be making progress to become environmentally sustainable, ensure good labor standards not only for their own company but for companies that supply them as well, and fight bribery and corruption.

CSR Management:
Management structure

Board of Directors

Audit Committee of Board

President & CEO

Group Presidents

Chief Financial Officer

VP of Human Resources

General Counsel

Corporate Responsibili ty Officer

Steering Committee

CSR Management: Plan, Do, Check, Act method

Plan Do

Consult stakeholders Establish code of conduct Set targets

Establish management systems and personnel

Promote code compliance

Check
Act

Measure progress Audit Report

Corrective action Reform of systems

Indian Context .on Paper

Section 80 G of Income Tax Act Section 217 & 293 (1)(e) of India Companies Act, 1956 Voluntary Guidelines of MCA Sustainability Report in Chairman Statement of Annual Report New Company Bill 2% of net profit spend on CSR activities; CSR committee in high turnover company Pollution Control Laws

In Newspapers
Delink from the business Thermax shunned its business of energy and environment solutions and focuses on imparting soft skills to youngsters from marginalised communities to make them more employable Indias Pressing Problems The Bharti Foundation runs 254 schools, providing free primary & secondary education. Link it to Business The Godrej Group has a beauticians training program to help woman to get jobs in salon or turn entrepreneur in the grooming business. Their familiarity with the companies Product makes them brand ambassador for the Group

Address the Local Community Mobile health units and Cadre of local caregivers created in the 12 villages adjoining its plant in chandrapur, Maharashtra, is outside the purview of companys operations

Rakesh Bharti Mittal, Bharti Enterprises

Anu Aga, Director, Thermax

B L Taparia, Director, Ambuja Group

Adi Godrej, BOD- Godrej Group

TOP CSR SPENDERS

Some Socially Responsible Companies

(ref -Fortune Magazine)
Walt Disney Company The company house that Mickey built is the only US-based in the top 5. Some of their more interesting initiatives include: running Disneyland trains on biodiesel made with cooking oil from the resort's hotels, establishing a worldwide conservation fund and instituting a "green standard" for all employees and cast members.
Edison - Founded in 1884, this Milan based firm is Europe's oldest energy company. Despite its age, Edison is one of the leading renewable energy providers in Europe with 68 hydroelectric facilities, 29 wind farms, and one solar facility (tie) Nestle - One of the largest food manufacturers in the world, in 2009 Nestle instituted "The Cocoa Plan" in an effort to encourage sustainability, labor rights and fair trade in the cocoa industry. NextEra Energy - Formerly known as Florida Power & Light, Nextera rebranded themselves in 2009 in an effort to disassociate themselves from a regional sounding name (they operate is 28 US states and Canada) and to highlight their aggressive move into renewable energy. NEE is the largest owner and operator of wind power farms in the US and second only to Iberdrola in the world (44% of NEE's total energy output comes from wind power). Weyerhauser -one the biggest players in the global forest products industry, Weyerhauser owns 6.6 million acres of commercial timberland worldwide and another 15.2 million acres on long-term leases in Canada. According to their website, 99% of these forests are certified to sustainable forestry standards.

An absolute 10.61 percent reduction in our greenhouse gas (GHG) emissions from its 2005 base of stores, by the end of 2009 119 factories in China have demonstrated greater than 20 percent improved in efficiency compared to 2007 baseline. In the U.S., Wal-Mart redirected 81 percent of waste in California. Plastic bag waste was reduced by 47.95 million pounds, or approximately 3.5 billion bags, globally. Wal-Mart de Mxico reduced water use by 17 percent compared to 2008 baseline. 73 percent of the total pounds of wild fish and farmed seafood sold at WalMart U.S. and Sam's Club was certified. We reduced our customer returns on defective merchandise to 1.76 percent globally. More than 94 percent of direct import factories have received one of our two highest audit ratings.

Wal-Mart China successfully engaged more than 470,000 farmers into our Direct Farm program in 2010, bringing the total to just over 757,000.

Michael T. Duke, President and CEO

Thank you

MBA(PT)2011-14 -SEC B-Group:5

Deepak Bal (Roll No 67) Harmeet Si Bhatia (Roll No - 71) Kanwar Pal Singh (Roll No 74) Mandavi Sharma (Roll No 76) Gordhan Meghwal (Roll No - 106)