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Content:

Introduction

Corporate Social Responsibility (CSR) is viewed as a comprehensive


set of policies, practices and programs that are integrated into
business operations, supply chains, and decision-making processes
throughout the organization -- wherever the organization does
business -- and includes responsibility for current and past actions as
well as future impacts.
CSR involves addressing the legal, ethical commercial and other
expectations society has for business, and making decisions that fairly
balance the claims of all key stakeholders. Effective CSR aims at
“achieving commercial success in ways that honor ethical values and
respect people, communities, and the natural environment.” Simply
put it means “what you do, how you do it, and when and what you
say.”

Several terms have been used interchangeably with CSR. They


include -- business ethics, corporate citizenship, corporate
accountability, sustainability and corporate responsibility.
The issues that represent an organization’s CSR focus vary by size
(small, medium and large), sector (for example, financial institutions,
infrastructure providers, textile manufacturers, agri-producers
supermarket retailers, etc.) and even by geographic region. In its
broadest categories, CSR typically includes issues related to business
ethics, community investment, environment, governance, human
rights, the marketplace and the workplace.
Areas of Corporate Social Responsibility
Overview
Corporate social responsibility is necessarily an evolving term that does not
have a standard definition or a fully recognized set of specific criteria. With the
understanding that businesses play a key role on job and wealth creation in
society, CSR is generally understood to be the way a company achieves a
balance or integration of economic, environmental ,and social imperatives
while at the same time addressing shareholder and stakeholder expectations.
CSR is generally accepted as applying to firms wherever they operate in the
domestic and global economy. The way businesses engage/involve the
shareholders, employees, customers, suppliers, governments, non-
governmental organizations, international organizations, and other
stakeholders is usually a key feature of the concept. While business
compliance with laws and regulations on social, environmental and economic
objectives set the official level of CSR performance, CSR is often understood
as involving the private sector commitments and activities that extend beyond
this foundation of compliance with laws.

From a progressive business perspective, CSR usually involves focusing on


new opportunities as a way to respond to interrelated economic, societal and
environmental demands in the marketplace. Many firms believe that this focus
provides a clear competitive advantage and stimulates corporate innovation.

CSR is generally seen as the business contribution to sustainable


development which has been defined as "development that meets the needs
of the present without compromising the ability of future generations to meet
their own needs", and is generally understood as focusing on how to achieve
the integration of economic, environmental, and social imperatives. CSR also
overlaps and often is synonymous with many features of other related
concepts such as corporate sustainability, corporate accountability, corporate
responsibility, corporate citizenship, corporate stewardship, etc..

CSR commitments and activities typically address aspects of a firm's


behaviour (including its policies and practices) with respect to such key
elements as; health and safety, environmental protection, human rights,
human resource management practices, corporate governance, community
development, and consumer protection, labour protection, supplier relations,
business ethics, and stakeholder rights.

Corporations are motivated to involve stakeholders in their decision-making


and to address societal challenges because today's stakeholders are
increasingly aware of the importance and impact of corporate decisions upon
society and the environment. The stakeholders can reward or punish
corporations. Corporations can be motivated to change their corporate
behaviour in response to the business case which a CSR approach potentially
promises. This includes:

1.Stronger financial performance and profitability (e.g. through eco-efficiency),

2.Improved accountability to and assessments from the investment


community,

3.Enhanced employee commitment,

4.Decreased vulnerability through stronger relationships with communities,


and

5.Improved reputation and branding.


Components of CSR

The emerging concept of CSR goes beyond charity and requires the company
to act beyond its legal obligations and to integrate social, environmental and
ethical concerns into company’s business process. What is generally
understood by CSR is that the business has a responsibility – towards its
stakeholders and society at large – that extends beyond its legal and
enforceable obligations. The triple bottom line (people, planet, profit) approach
to CSR emphasizes a company’s commitment to operating in an
economically, socially and environmentally sustainable manner. The emerging
concept of CSR advocates moving away from a ‘shareholder alone’ focus to a
‘multi-stakeholder’ focus. This would include investors, employees, business
partners, customers, regulators, supply chain, local communities, the
environment and society at large. The key components of CSR would
therefore include the following:

Corporate Governance:
Within the ambit of corporate governance, major issues are the accountability,
transparency and conduct in conformity with the laws which enable the
company to realize its corporate objectives, protect shareholder rights, meet
legal requirements and create transparency for all stakeholders.

Business Ethics:
relates to value-based and ethical business practices.

Workplace & labour relations:


Human resources can help in improving the workplace in terms of health and
safety, employee relations as well as result in a healthy balance between work
and non-work aspects of employees’ life.

Affirmative action/good practices:


Equal opportunity employer, diversity of workforce that includes people with
disability, people from the local community etc., gender policy, code of
conduct/guidelines on prevention of sexual harassment at workplace,
prevention of HIV/AIDS at workplace, employee volunteering etc. are some of
the good practices which reflect CSR practices of the company.

Supply Chain:
The business process of the company is not just limited to the operations
internal to the company but to the entire supply chain involved in goods and
services.

Customers:
With increased awareness and means of communication, customer
satisfaction and loyalty would depend on how the company has produced the
goods and services, considering the social, environmental, supply-chain and
other such aspects.

Environment:
Merely meeting legal requirements in itself does not comprise CSR but it
requires company to engage in such a way that goes beyond mandatory
requirements and delivers environmental benefits.

Community:
A major stakeholder to the business is the community in which the company
operates. The involvement of a company with the community would depend
upon its direct interaction with the community and assessment of issues/risks
faced by those living in the company surrounding areas.
History of CSR in India :-

India has a long rich history of close business involvement in social causes for
national development. In India, CSR is known from ancient time as social duty
or charity, which through different ages is changing its nature in broader
aspect, now generally known as CSR. From the origin of business, which
leads towards excess wealth, social and environmental issues have deep
roots in the history of business. India has had a long tradition of
corporate philanthropy and industrial welfare has been put to practice since
late 1800s. Historically, the philanthropy of business people in India has
resembled western philanthropy in being rooted in religious belief. Business
practices in the 1900s that could be termed socially responsible took different
forms: philanthropic donations to charity, service to the community, enhancing
employee welfare and promoting religious conduct. Corporations may give
funds to charitable or educational institutions and may argue for them as great
humanitarian deeds, when in fact they are simply trying to buy community
good will. The ideology of CSR in the 1950s was primarily based on an
assumption of the obligation of business to society.

In initial years there was little documentation of social responsibility initiatives


in India. Since then there is a growing realization towards contribution to social
activities globally with a desire to improve the immediate environment (Shinde,
2005). It has also been found that to a growing degree companies that pay
genuine attention to the principles of socially responsible behavior are also
favored by the public and preferred for their goods and services. This has
given rise to the concept of CSR.

After Independence, JRD Tata who always laid a great deal of emphasis to go
beyond conducting themselves as honest citizens pointed out that there were
many ways in which industrial and business enterprises can contribute to
public welfare beyond the scope of their normal activities. He advised that
apart from the obvious one of donating funds to good causes which has been
their normal practice for years; they could have used their own financial,
managerial and human resourced to provide task forces for undertaking direct
relief and reconstruction measures. Slowly, it began to be accepted, at least in
theory that business had to share a part of the social overhead costs of.
Traditionally, it had discharged its responsibility to society through
benefactions for education, medical facilities, and scientific research among
other objects. The important change at that time was that industry accepted
social responsibility as part of the management of the enterprise itself. The
community development and social welfare program of the premier Tata
Company, Tata Iron and Steel Company was started the concepts of "Social
Responsibility." (Gupta, 2007)

The term corporate social performance was first coined by Sethi (1975),
expanded by Carroll (1979), and then refined by Wartick and Cochran (1985).
In Sethi's 1975 three-level model, the concept of corporate social performance
was discussed, and distinctions made between various corporate behaviors.
Sethi's three tiers were 'social obligation (a response to legal and market
constraints); social responsibility (congruent with societal norms); and social
responsiveness (adaptive, anticipatory and preventive) (Cochran, 2007).

The last decade of the twentieth century witnessed a swing away from charity
and traditional philanthropy towards more direct engagement of business in
mainstream development and concern for disadvantaged groups in the
society. This has been driven both internally by corporate will and externally
by increased governmental and public expectations (Mohan, 2001). This was
evident from a sample survey conducted in 1984 reporting that of the amount
companies spent on social development, the largest sum 47 percent was
spent through company programs, 39 percent was given to outside
organizations as aid and 14 percent was spent through company trusts
(Working Document of EU India CSR, 2001). In India as in the rest of the
world there is a growing realization that business cannot succeed in a society
which fails. An ideal CSR has both ethical and philosophical dimensions,
particularly in India where there exists a wide gap between sections of people
in terms of income and standards as well as socio-economic status (Bajpai,
2001).

According to Infosys founder, Narayan Murthy, 'social responsibility is to


create maximum shareholders value working under the circumstances, where
it is fair to all its stakeholders, workers, consumers, the community,
government and the environment'. Commission of the European Communities
2001 stated that being socially responsible means not only fulfilling legal
expectations, but also going beyond compliance and investing 'more' into
human capital, the environment and the relation with stakeholders(Bajpai,
2001). Over the time four different models have emerged all of which can be
found in India regarding corporate responsibility (Kumar et al., 2001).
The Political Economy of Corporate Responsibility in India

Corporate social responsibility (CSR) is on the rise all over the world, and
India is no exception. The history of corporate paternalism has played an
important part in shaping community expectations and CSR practices in India.
Civil society, consumers and other actors have increased the pressure on
companies to adhere to social and environmental standards, and this new
“civil regulatory” environment has had impacts on business in India. This
paper considers corporate environmental and social behaviour in India, both in
the past and the present, in an attempt to better understand the actual impact
of CSR.
The paper is divided into five broad sections with the first section setting forth
the issues in context. Section 2 covers the historical aspects of the business
and society interface in India from the middle of the nineteenth century up to
the present, and it determines the actors and the factors that have influenced
the corporate responsibility discourse. Section 3 then presents the state of
contemporary CSR in India, by detailing perceptions of the issue, and the
initiatives undertaken by selected companies, industries, industry
associations, non-governmental organizations (NGOs) and trade unions. It
includes a discussion on certain codes of conduct related to labour and
environmental issues. Section 4 discusses the drivers of corporate social and
environmental responsibility in India, using a case study of the garment sector.
Voluntary initiatives are examined in light of the macro changes unfolding in
the Indian economy and society since the early 1990s, particularly by
examining the characteristics of the labour market and the impact of labour,
environmental and other regulations on business and society. This section
also documents corporate management and governance practices. The last
section contains a brief discussion on issues beyond voluntarism and judicial
activism.

Philanthropy has been important in India since the middle of the nineteenth
century, largely due to a strong heritage of community influence and
paternalism among traders-turned-entrepreneurs. At the same time, the larger
economic governance framework that was put in place by the state also
influenced corporate practices toward labour and society from time to time.
The Indian government’s socialistic policy agenda, which aimed at a more
equitable distribution of resources, restricted the concentration of wealth to the
hands of a few industrialists through strategies of import substitution, foreign
exchange control, reservations for and protection of small-scale enterprises,
industrial licence, and quota systems for raw material and production. This
influenced business practices of the times. However, business was often
reluctant to abide by such principles. As a result, interest in corporate
philanthropy decreased, leading to an increase in corporate malpractice, and
manoeuvring for survival and profits. All this was facilitated by incidents of
corruption in state and national government bureaucracies. However, certain
self-enlightened businessmen practiced and advocated ethical and
responsible business behaviour, and issues of the social responsibility of
business and stakeholder engagement were debated in India as early as the
1960s. In fact, there is evidence available of businesses going far beyond
compliance and setting best-practice standards in labour relations and
community development even before India’s independence in 1947. Some
such best practices later became the basis for drafting related legislation after
independence.

Despite the existence of trade unions, the trade union movement was not very
effective in advocating for the rights of workers beyond issues related to
wages and could not, therefore, contribute much to the larger corporate
responsibility debate. To some extent, this shortcoming was offset by the
emergence of other civil society actors in the form of NGOs and community-
based organizations from the 1970s. However, NGO activism in the early
phase was limited by government policies to the role of service delivery
agents; it was only in the 1990s, when this role broadened, that NGOs started
to have greater effect. However, they tended to influence state policies rather
than confronting business head-on. Consumer boycotts, popular in the
Western economies, have also been rare in the Indian context.

The response to corporate responsibility pressures in India has occurred


mostly in export-led sectors and where the business is part of a global supply
chain. The important issue of home-based workers was not addressed by
international instruments for a long time and this, coupled with the lack of both
the will and capability for monitoring, meant that businesses could exploit
vulnerable groups of workers. Manufacturers catering to local markets did not
experience the same demands and pressures to practise corporate social and
environmental responsibility. Therefore, the locally developed certification and
labelling schemes failed to attract the attention of local business.

Since the mid-1990s, CSR has been practised and debated by businesses,
industry associations, NGOs and the government. However, there is still
progress to be made. CSR is not institutionalized as a part of business
practice; instead it is more of a “social good” left to the discretion of chief
executive officers or top management. The agenda does not yet engage with
CSR in terms of workers’ rights. Employee care is often left to employer
benevolence. And while environmental care and total quality management
have been driven by international competition as well as by legislation in India,
compliance and enforcement are slack.

The nature of corporate actions and market-friendly regulations in India


suggests that increased private sector participation in social and
environmental affairs will need more vigilance from the government, not less.
More importantly, we will need more democracy, not less, to create the space
for various actors to operate and provide support and resistance, as required.
The government will have to be re-engineered so that its regulation and
monitoring role can be strengthened. In other words, it will need countervailing
power outside the government-industry nexus. This requires democratic rights
and institutions that can defend or advocate these rights, from courts to civil
society institutions. The challenge, therefore, is to continue to build a vibrant
set of civil institutions capable of feeding the corporate community and their
markets with signals of success that orient companies toward social and
environmental “goods”, and away from the “bads”.
Need for CSR

While the interests of shareholders and the actions of managers of any


business enterprise have to be governed by the laws of economics, requiring
an adequate financial return on investments made, in reality the operations of
an enterprise need to be driven by a much larger set of objectives that are
today being defined under the term CSR. The broad rationale for a new set of
ethics for corporate decision making, which clearly constructs and upholds a
organization's social responsibility, arises from the fact that a business
enterprise derives several benefits from society, which must, therefore require
the enterprise to provide returns to society as wel.l. A business cannot
succeed in a society which fails. This, therefore, clearly establishes the stake
of a business organization in the good health and well being of a society of
which it is a part. More importantly, in this age of widespread communication
and growing emphasis on transparency, customers of any product or service
are unlikely to feel satisfied in buying from an organization that is seen to
violate the expectations of what is deemed to be ethically and socially
responsible behavior.It is becoming increasingly evident that organizations that
pay genuine attention to the principles of socially responsible behaviour are
also finding favour with the public and are the preferred choice for their goods
and services.

Corporate and Social Responsibility for SME’s


Corporate Social Responsibility (or more recently social responsibility) has
increased in importance around the world. Much of the content of the reports
focus on large company’s and statistical analysis – all very well but for small
lean business like mine and yours we need a different approach.
This page aims to explore CSR - Corporate Social Responsibility from the
practical stance of the smaller business. For CSR to be adopted as a
principle, it needs not only to be understood, but practical steps provided to
make this valuable concept accessible and sustainable - in other words - you
as a manager needs to know what and how you can do this easily and today.

Is CSR important to SME's?


Yes CSR is important, and yes it can help us be more effective, efficient and
most importantly more profitable.
In 2002 a survey of Small-Medium sized Enterprises (SME) attitudes to CSR
conducted by MORI sponsored by the DTi, it found that:
• A large number of SMEs were already engaged in social
responsibility where defined as a contribution to the community, relations with
employees and protection of the environment
• Training, employment and education were the top priorities for SME
investment
• SMEs were not yet defining social responsibility as an issue that
could be integrated into all core business activities.
So why is it relevant?
Managers and owners in smaller businesses are often heard asking...
• ‘I am increasingly being asked for information on environmental and
community issues as part of tendering for contracts and from larger clients
and I don’t know where to start.’
• ‘My business is struggling to recruit, motivate and retain good staff.’
• ‘How can I ensure that I run an environmentally friendly business
without costing me a lot of time and money?’
• ‘I have a business to run with limited resources, so how can my
business benefit?’

Corporate Social Responsibility – a definition:


A responsible business is achieving commercial success in ways that honour
ethical values and respect people, communities and the natural environment.
These businesses minimise any negative environmental and social
impacts and maximise the positive ones.
Approaches
• There are several approaches to Corporate Social Responsibility
(CSR)
• The Three-P Approach to CSR:
o Level 1: Principles of social responsibility
o Level 2: Processes of social responsiveness
o Level 3: Products (or Outcomes) as they relate to the firm's
societal relationships

We need to adopt these as appropriate for our business. For many of us we


will only work at level one with some elements of level 2.
What does a sustainable and responsible company look like?
• It is run for and can be seen to be run for the benefit of profit, people
and planet.
• It integrates responsible business practice so that it is built in to
business purpose and strategy rather than being a bolt-on to business
operations.
• Employees value it as a great place to work.
• Customers and suppliers value it as a good business to do business
with.
• The community values it as a great neighbour.
• Investors and financiers value it as worth investing in.
• It has a good health and safety record.
• It has environmentally friendly premises.
BENEFITS OF CSR

Stronger Financial Performance and Profitability


Businesses can use CSR and corporate sustainability to produce direct
benefits for the bottom line. For example, operational efficiencies can be
achieved through reducing energy and materials as input factors for
production. Wastes can also be reduced and materials can be recycled. These
sorts of actions from eco-efficiency can produce concurrent environmental and
economic benefits for the company and thereby contribute to stronger
financial performance and more positive profitability. Operational efficiencies
can be achieved in other facets of CSR such as streamlining the way that
information is provided to the investment community as well as to other
stakeholders that demand increased transparency. Managing potential risks
and liabilities more effectively throughCSR tools and perspectives can also
reduce costs. Using corporate responsibility and sustainability approaches
within business decision-making can result not only in reduced costs but can
also lead to recognizing new market opportunities such as when new
manufacturing processes are developed that can be expanded to other plants,
regions or markets. There are various studies that have examined the
relationship between CSR and corporate financial performance and most of
the evidence suggests that the links are positive.

Enhanced Employee Relations, Productivity and Innovation


A key potential benefit from CSR initiatives involves establishing the
conditions that can contribute to increasing the commitment and motivation of
employees to become more innovative and productive. Companies that
employ CSR related perspectives and tools tend to be businesses that provide
the pre-conditions for increased loyalty and commitment from employees.
These conditions can serve to help to recruit employees, retain employees,
motivate employees to develop skills, and encourage employees to pursue
learning to find innovative ways to not only reduce costs but to also spot and
take advantage of new opportunities for maximizing benefits, reduce
absenteeism, and may also translate into marginally less demands for higher
wages.
Stronger Relations Within Communities Through Stakeholder
Engagement
A key feature of CSR involves the way that a company engages, involves, and
collaborates with its stakeholders including shareholders, employees,
debtholders, suppliers, customers, communities, non-governmental
organizations, and governments. To the extent that stakeholder engagement
and collaboration involve maintaining an open dialogue, being prepared to
form effective partnerships, and demonstrating transparency (through
measuring, accounting, and reporting practices), the relationship between the
business and the community in which it operates is likely to be more credible
and trustworthy. This is a potentially important benefit for companies because
it increases their "licence to operate", enhances their prospects to be
supported over the longer term by the community, and improves their capacity
to be more sustainable. Companies can use stakeholder engagement to
internalize society’s needs, hopes, circumstances into their corporate views
and decision-making. While there are many questions about how far a
company’s responsibilities extend into communities relative to the roles of
governments and individual citizens, there is a strong argument that CSR can
effectively improve a company’s relations with communities and thereby
produce some key features that will improve business prospects for its future

Improved Reputation and Branding


A potential benefit of CSR is that it can improve a company’s reputation and
branding and this in turn improves the prospects for the company to be more
effective in the way that it manages communications and marketing in efforts
to attract new customers and increase market share. CSR as a concept with
various tools can help a company to position itself in the marketplace as a
company that is more responsible and more sustainable than its competitors.
A Word on CSR as an Investment
CSR can be viewed by businesses as a form of investment that helps to
differentiate a company and its goods and services.

What then is the right way to look at CSR as an investment - particularly given
that it frequently involves intangible and less quantifiable domains. The bottom
line is that a prudent business may tend to regard CSR in the same way it
treats most investment decisions. It would be inclined to use the same
systematic approach to assess the anticipated benefits and related revenues
relative to the costs that it employs for investment proposals. A rigorous and
systematic approach to CSR investment is likely to yield the most positive
results for both the business and society as it is likely to demonstrate the most
efficient allocation of resources from the perspective of both the firm and
society.

There are many different areas where a firm can invest to


develop CSR attributes (e.g. human resource management, environmental
protection, health and safety, community involvement, etc.). Investment
decisions on CSR need to take account of various factors and parameters as
well as the anticipated cost and benefit stream to be produced by the
investment.
CSR focus on:

Policy:
Business Principles, Defining your Purpose, Innovation, Know the law,
Managing risks, Measuring success, Sharing good practice
What are the theories and business principles which drive successful
businesses?
Here you can dip into information on the law and its implications for your
business. There is also information about how to measure the intangibles e.g.
how can you measure increased customer loyalty? Plus you'll find useful
signposts and pointers as to where you can find more information on each
topic.
Practice:
Better payment, Developing skills, Diversity, Equality, Health and safety,
Managing resources, Marketing with a cause, Minimising waste, Volunteering
If you want to save money through managing waste more effectively how do
you go about it? What about health & safety? In a recent survey* 60% of small
and medium sized business owners said that they had been asked about their
practices in this area by a large corporate customer. Make sure you're one
step ahead of the game and start by reading the guide to health and safety
contained within this section.
Stakeholders:
Employees, Customers, Suppliers, Communities

Stakeholder is an umbrella term, which covers every group of individuals you


deal with as a business.
Here we focus on four stakeholders- your employees, the community, your
customers and your suppliers. By listening and talking to these groups on a
regular basis you can really improve your business's reputation and it doesn't
cost a fortune.
Corporate Social Responsibility (CSR) or Corporate Responsibility is about
managing your business to achieve both commercial and social benefit. In
essence it's about managing your social, community and environmental
impacts to help you improve results, reduce risks and enhance your
reputation. It is also about growing your business in a way that has value for
everyone connected to it.
MeasuringSuccess
For the majority of SME’s and small businesses, it is not about copying what
the ‘big companies’ do, but to use these principles in the way we work. This
means treating them as principles, not yet another administrative burden. So
measure them…no!

ACC Limited -CSR Activities

Today we define Corporate Social Responsibility as the way a company


balances its economic, social and environmental objectives while addressing
stakeholder expectations and enhancing shareholder value.

But ACC has undertaken social volunteering practices almost from its
inception, – long before the term corporate social responsibility was coined.
The company’s earliest initiatives in community development date back to the
1940's in a village on the outskirts of Mumbai while the first formal Village
Welfare Scheme was launched in 1952. The community living around many of
our factories comprises the weakest sections of rural and tribal India with no
access to basic amenities.

Corporate Social Responsibility Policy

“The Company shall continue to have among its objectives the promotion and
growth of the national economy through increased productivity, effective
utilization of material and manpower resources and continued application of
modern scientific and managerial techniques, in keeping with the national
aspiration; and the Company shall continue to be mindful of its social and
moral responsibilities to consumers, employees, shareholders, society and the
local community.

In pursuance of the above objective, ACC acknowledges the importance of


the concept of inter-dependence of all sections of society. In particular, its
focus revolves around the community residing in the immediate vicinity of its
Cement Plants and Mines where it seeks to actively assist in improving the
quality of life and making this community self-reliant. In line with its abiding
concern for preservation of the ecological balance and safeguarding the
health of the community, ACC has always actively demonstrated its firm
resolve to protect the environment

Mindful of its great tradition, ACC is deeply committed to enhancing its


reputation and respect built over the years in industry and society for its
professional style of management based on philosophy of the best in business
ethics.”

Community & Rural Welfare


Our community development activities revolve around the under-privileged
community that lives in the immediate vicinity of our cement plants and is thus
more dependent on us. The range of our activities begins with extending
educational and medical facilities and goes on to cover vocational guidance
and supporting employment-oriented and income-generation projects like
agriculture, animal husbandry, cottage industries by developing local skills,
using local raw materials and helping create marketing outlets.
At all our cement factories we share our amenities and facilities with members
of the local community. This includes sharing education and medical facilities,
sports and recreation. Wherever possible we share access to Bore Wells,
drinking water and the usage of colony roads.

Education
Education is imparted not only to children of ACC employees but also more
importantly to children from rural areas who do not have access to any
medium of information or education. ACC schools maintain high standards
and are open to other children of the vicinity. Often these schools are the most
preferred centers of learning in the district and adjoining areas. Wherever
possible, ACC provides funds and infrastructure to help set up local schools,
colleges and centers for learning and education.

Healthcare
ACC takes pride in providing various forms of medical assistance to the
families of our employees and also to all those living in surrounding villages.
Each factory has a medical center with full-fledged doctors and the latest of
basic equipment. Mobile medical services are provided in the vicinity and
regular medical camps are held to eradicate diseases, offer medical help,
treatment and preventive care.
ACC has come out to provide support to state and national health initiatives
such as the eradication of malaria, dengue fever and the dreaded HIV.

The CSR focus, methodology, and impact and business


linkage of 30 companies IN INDIA

Business
Company Type Focus Area Linkage

Bajaj Auto Auto Development of Indirect


weaker sections of
society

Castrol India Chemicals Strengthens link Indirect


between business &
social investments

Mahindra & Auto-mobile Sharing wealth and Indirect


Mahindra promote primary
education

Infosys IT Support and Indirect


encourage
underprivileged
sections

ITC FMCG "Citizen First" Indirect


watershed
development program;
Empowering Farmers;
Greening Wastelands
and Irrigating dry
lands
L&T Engg. Enhancing Indirect
shareholder value
and responsibility
for welfare of
society at large

Dabur India Pharma FMCG Give back some part Indirect


of what Dabur has
gained from
community

BHEL Engg. Community and Direct


Product development

Tata Steel Engg./Metal "Improve the quality Indirect


of life of the
communities it
serves."

Wipro IT Learning Enhancement Indirect


Disaster
rehabilitation

Nestle India FMCG Integrated Indirect


communities where it
runs industrial and
commercial
operations

ICICI Financial Empower millions Direct


economically &
socially challenged
Indians.

Colgate- FMCG Colgate care for the Direct


Palmolive community where they
live & work

Britannia FMCG Wadia Group Direct


Industries Community conscious,
desire to share
prosperity with
community.

BPCL Petrochemicals Community Indirect


development

Godrej Engg & FMCG Promoting education, Indirect


housing, social
upliftment,
conservation,
population
management and
relief of natural
calamities

Grasim Textile Social and economic Indirect


Industries Engg Chemicals development of the
communities in which
we operate

Cipla Pharma Cipla Care Direct

Johnson & Pharma Support good works Direct


Johnson FMCG and charities.

Hero Honda Auto-mobile Do something for Indirect


community from whose
land we generate our
wealth

NIIT IT Narrowing the Direct


digital divide
across the world,

Zee Telefilms Entertainment being successful is Direct


to be socially
responsible

Dr Reddy's Lab Pharma Prosperity of Direct


communities integral
to success of
companies

Satyam Computer IT Contributing to the Indirect


Service well-being and
development of
society

Novartis Pharma Treatment for Direct


Leprosy

TCS IT Flexible Global Indirect


business practices

Citi group Financia l Women empowerment Direct


Services

NTPC Power Rehabilitation & Direct


Resettlement policy,
community work,
gender equality,
Policy of grant of
paternity leave,

SAIL Manuf. Community Direct


development

Hindalco Manuf. Poverty Alleviation Direct


Program

Methodology
Company Adopted Impact

Bajaj Auto Trust Undertakes long-term Community


projects in rural areas. Development

Castrol India Rehabilitation of earthquake Community Service


affected victims in Gujarat.
Castrol Drive for Safety
Initiative College
establishment

Mahindra & College establishment Nanhi Community


Mahindra Kali (underprivileged girl Development
child) 1% Profit after tax for
CSR activities
Free education for girls
Lifeline Express: medical
facility Free surgeries

Infosys Infosys Foundation provide Successfully


medical facilities to remote implemented
rural areas, organizing novel projects
pension schemes and aiding
orphans and street children
and rural education program
titled "A library for every
school", Human Capital
Education index for its
employees

ITC Through "e-choupal" organizing Supplier and


farmers into water user groups community
that plan and build water- development
harvesting structures Primary
education Livestock
development Social forestry
Integrated watershed
development First to be
certified SA 8000 standard

L&T Eco Friendly approach; Create Community Service


awareness on HIV/AIDS; and and environment
waste minimization, Health One protection
of the first corporate to
launch HIV/AIDS program

Dabur India Establishment of Sundesh, NGO RM Supplier


Programs for ecological development
regeneration & protection of
endangered plant species
Promoting health and hygiene
amongst the underprivileged
through Trust and Create
environmental awareness
amongst young minds

BHEL Adopted 56 villages and Benefited over


provided infrastructure for 80,000 people.
schools for physically
challenged children near its
units
Launched wind electric Minimize
generators, solar heating environmental
systems, solar photovoltaic impact of fossil
systems, solar lanterns and energy products,
battery powered road vehicles

Tata Steel Through "Green Millennium" Settling


campaign planted 1.5 million Sustainability
surviving trees Through Standards
Employment Generation,
Building people, education,
health and hygiene

Wipro Through trust: Provide Community Service


rehabilitation to survivors
of natural calamities and
Enhancing learning abilities
of children from
underprivileged sections.

Nestle India Through Water Conservation, Environment


Natural refrigerants replaced protection and
ozone depleting. Also include community services
Nutrition & health projects,
agricultural assistance,
education and training, arts
and culture, HIV/AIDS
prevention and donations

ICICI Through initiatives Give Community


India; Shop; Volunteer; development
and Info change.

Colgate- Free oral care education Community


Palmolive Through different community development
programs

Britannia Welfare of its workers through Employee


Industries trust Health care facilities development
Support

BPCL Through Health, Rain water Community services


harvesting, Infrastructure
development, education, HIV
Health care and prevention.

Godrej Three Foundations/Trusts to Employees'


contribute to Social, involvement
Environmental, and Educational in Group's
causes. philanthropic
efforts.

Grasim Through "Aditya Birla Centre Community


Industries for Community Initiatives and Development
Rural Development".
Includes education, Health &
family welfare, Sustainable
development & livelihood &
agriculture & watershed
development, Infrastructure
development & Social causes

Cipla Cipla Foundation Through Dr. Community service


K. A. Hamied Institute & Cipla
Cancer Palliative Care Centre

Johnson & Through donations of time, Community Services


Johnson money and goods. Women's and
Children's Health Community
Responsibility Access to Care
Advancing Health Care
Knowledge Global Public Health

Hero Honda Through Integrated Rural Community


Development Centre including development
: Hospital, Sports complex,
Vocational Training Centre,
Adult Literacy Mission,
Marriages of underprivileged
girl, Rural Health Care

NIIT Through launch of Community services


International Women's Month
uplifting Indian women,
Computer literacy. Developed
I-Learn Create awareness
about AIDS

Zee Telefilms Public Service Ads/Fillers Community Service


telecast to date are:
Campaigns on TV

Dr Reddy's Lab Through Environmental: Water Environmenta


Usage Energy Usage Wastewater l Protection
Discharge COD & TDS Load
Discharge HW-hazardous waste
disposal GHG emissions

Satyam Computer Specific services through Community Service


Service various development projects

Novartis Free Multi Drug therapy. Community


Cured 4.5 million patients services

TCS Global delivery model: Global 35 Countries


deployment & delivery of high benefited
value services
Citi group Rehabilitation Education Community services
Health Benefited statesAP,
TN, Karnataka,
Kerala,
Maharashtra, MP

NTPC Founded Global Compact Society Community services


for India in 2003

SAIL AIDS awareness Education Community


Medical facilities and health development
Development of small scale/
ancillary industries

Hindalco Agriculture, poultry, Community


fisheries Asian CSR award for development
Integrated Rural Poverty
Alleviation Program

IT: Information Technology, Pharma: Pharmaceuticals, Manuf.:


Manufacturing, FMCG: Fast moving consumer goods.
Criticisms and concerns

Critics of CSR as well as proponents debate a number of concerns related to


it. These include CSR's relationship to the fundamental purpose and nature of
business and questionable motives for engaging in CSR, including concerns
about insincerity and hypocrisy.

Critics concerned with corporate hypocrisy and insincerity generally suggest


that better governmental and international regulation and enforcement, rather
than voluntary measures, are necessary to ensure that companies behave in
a socially responsible manner. CSR could prove to be a valuable asset in an
age of Mergers & Acquisitions, as it helps firms spread their brand name.

current status of CSR in India

As of the year 2000, CSR is fast gaining momentum as an important aspect of


business practice in India. An appreciative quantum of roundtables and
networks pertaining to CSR are being established and doing good work. Given
below are a few of the more prominent examples.
There are several bodies now emerging on the Indian scene that focus on
issues of CSR. For instance the Corporate Roundtable on Development of
Strategies for the Environment and Sustainable Development - Business
Council for Sustainable Development (CoRE-BCSD) of India is a grouping into
their operations.
Initiated by The Energy and Resources Institute (TERI), CoRE- BCSD India
includes some of the most innovative, some of the largest and also the most
forward
looking organizations in the country. Subject experts from these corporates
identify and conceptualize projects. A team of industry members and TERI
researchers then works to develop appropriate solutions/strategies for use by
the industry. Currently the Roundtable includes some of the leading Indian
corporates, such as:
- The Associated Cement Companies Limited
- Bharat Heavy Electricals Limited
- Bharat Petroleum Corporation Limited
- Century Textiles & Industries Limited
- Gas Authority of India Limite
- Gujarat Ambuja Cements Limited
- Hindustan Lever Limited
- Infrastructure Leasing & Financial Services Limited
- ITC Limited - Paper Brands & Speciality Papers Division
CONCLUSION

The concept of corporate social responsibility has gained prominence


from all avenues. Organizations must realize that government alone
will not be able to get success in its endeavor to uplift the
downtrodden of society. The present societal marketing concept of
companies is constantly evolving and has given rise to a new
concept-Corporate Social Responsibility. Many of the leading
corporations across the world had realized the importance of being
associated with socially relevant causes as a means of promoting
their brands. It stems from the desire to do good and get self
satisfaction in return as well as societal obligation of business.

The Indian corporate sector spent US$ 6.31 billion on social


expenditure during 2007-08, up from US$ 3.68 billion spent during
the previous fiscal. The Steel Authority of India Ltd (SAIL), the
country's largest steel company, spent US$ 21.05 million on CSR last
year; Tata Steel Ltd, (which runs a 850-bed hospital and rural projects
in 800 villages around Jamshedpur), spends about US$ 31.58 million
as part of its annual revenue expenditure. Now there are plans to also
introduce CSR in the small and medium enterprises (SME) sector to
increase its reach in remote areas.

Corporate Social Responsibility in India : Past, Present And


Future
Business houses and corporate have been taking up social welfare
activities from time to time. Recently, priority of business is getting
widened from 1 P to 3 Ps by inclusion of People and Planet with
Profit. Short-term, charity-based welfare interventions are being
replaced by long-term, empowerment-based Corporate Social
Responsibility (CSR). Based on the realization, “Business cannot
succeed in a society that fails”, CSR is being considered as an
imperative for carrying on business in the society rather than as a
charity. While CSR is relevant for business in all societies, it is
particularly significant for developing countries like India, where
limited resources for meeting the ever growing aspirations and
diversity of a pluralistic society, make the process of sustainable
development more challenging. CSR interventions – based on
commitment, mobilization of employees-voluntarism, innovative
approaches, appropriate technology and continuing partnership –
have been making lasting differences in the life of the disadvantaged.
Further, synergy of corporate action with the government and the civil
society are making the CSR interventions more effective and
facilitating the corporate carrying on business in the society. Covering
a wide range of subjects from theory to practice, this book has
outlined steps to be taken by the major stakeholders – the Corporate,
the Government and the Civil society- for making CSR effective in the
Indian context. Based on case studies and best practices, this
handbook on CSR seeks to provide valuable insights and pragmatic
solutions to the corporate managers. It will be of interest to
government officials, NGOs and media and helps in making
development sustainable in general and growth inclusive in particular