What is

Corporate Social Responsibility?

 “Every company harms the
environment!”
( Just as an individual does)

Corporate Social Responsibility is thus only

about two aspects:

1) Reducing the Negative Effects

2) Increasing the Positive Contributions
Triple Bottom Line and CSR
 Did you know that….

• A paper company manufactures paper from waste cloth to

reduce the use of pulp from trees
• A Chemical manufacturer has protected the largest stretch of
mangroves along Mumbai’s coast
• A software company has developed a special call receiving
software for 1098-Childline , India’s national helpline for
children in distress
• An FMCG company is working to protect and conserve
endangered plant species in India through re-forestation
programmes
 How pity….
• A construction company (in Mumbai) posted a 60
% profit in 2008 amounting to Rs.1400 cr. and did
not do any activity to benefit society
• Don’t Drink and Drive is the CSR campaign of a
leading company that makes alcoholic beverages
• A drug manufacturer in India provides gifts and
vacations abroad to doctors who prescribe its
products.
• A power generating company is the highest CO2
emitter in India
Actual Stakeholders of Companies

ENVIRONMENT

• GOVT. AGENCIES • COMMUNITY/CITIZENS

COMPANY
SHAREHOLDERS
• EMPLOYEES

CONSUMERS SUPPLIERS
 Results of the
Karmayog CSR Rating 2008
of the
1000 largest Indian companies
 Results of CSR Ratings 2008
of 1000 largest Indian Companies

Karmayog Number of % of Companies

CSR Rating Companies
Level 5 0 0%
(highest)
4 10 1%
3 45 5%
2 221 22%
1 232 23%
0 (lowest) 492 (no CSR) 49%
Total 1000 100%
Companies with the highest rating of Level 4
No Company Sector
.
1 ACC Ltd. Cement
2 Ballarpur Industries Ltd. Paper
3 HDFC Ltd. * Finance
4 Infosys Technologies Ltd. * Software and ITES
5 Jubilant Organosys Ltd. Pharmaceuticals
6 Kansai Nerolac Paints Ltd. Paints
7 Moser Baer Ltd. Hardware
8 Tata Consultancy Services Software and ITES
Ltd.
9 companies
* Indicates Tata Steel Ltd.
that *
received Steel in the Karmayog CSR
a Level 4 rating
10 Titan IndustriesRatings
Ltd. * 2007 Watches & Jewelry
 Minimum necessary parameters for
different rating levels
If undertaking any CSR Activity Level 1

If CSR is linked to reducing the negative impacts of Level 2

company’s own products or processes
If CSR initiatives are for the local community Level 3

If CSR is embedded in the business operations Level 4

If innovative ideas and practices are developed for Level 5

CSR
Note: - Companies that manufacture liquor, tobacco, genetically modified crops
have been given a Level 0 rating

The criteria stated above are only the minimum criteria needed to qualify for a
particular rating; apart from this, there are other negative and positive criteria
that are also applicable, and a combination of these determines the final rating.
 Recent Trends in CSR-2008

Expectations of the stakeholders

Government’s Role

Increasing awareness amongst consumers, management colleges and

students
Suppliers Responsibility

Disclosure of social and environmental performance

 Closing Statement…
• Enlightened businesses worldwide, small and large, have begun to
realise that responsible practices enhance profitability and ensure
long term survival. Companies not doing CSR will not survive –it’s
only a question of when

• For those companies which disrespect the environment or living

beings, we, as responsible citizens, need to individually and
collectively, reward or penalise them through our voices and our
wallets.

…..
 Case study

• TATA STEELS
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 Tata Steel: A Pioneering Enterprise

Tata Steel established in 1907 as a

Greenfield project in eastern India

Founded in the vision of Jamsetji Tata, a

true nationalist

Corporate Social Responsibility in Indian

industry traces its roots from him.

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 Corporate Social Responsibility Policy

“Tata Steel believes that the primary

purpose of a business is to improve the
quality of life of people.

Tata Steel will volunteer its resources,

to the extent that it can reasonably
afford, to sustain and improve a healthy
and prosperous environment and to
improve the quality of life of the people
of the areas in which it operates.”

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 From Tradition To Process

Areas of Impact
Environment

Employee Relations

Stimulating Economic Growth

Civic Amenities & Community Service

Population Management

Sports and Adventure

Health for All

Relief During Natural Calamities

Education / Arts and Culture

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 “We generate wealth for the people. What
comes from the people must, to the extent
possible, therefore get back to the people.”
- Bharat Ratna, J R D Tata

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