INTRODUCTION

Corporate social responsibility is the continuing commitment by business to achieve commercial

success in ways that honor ethical values, address legal issues and contribute to economic
development while improving the quality of the workforce and their families as well as the local
community and society at large. Indeed, the idea of social responsibility is not new to this age;
rather it has been around as long as businesses have existed. Sometimes it comes in the shape of
caring owners who provided housing, paid the workers who are off due to sickness or otherwise
in form of attempts made to provide ease and comfort to the employees lot. lthough many such
voluntary social measures have become legal requirements, a number of business leaders have
gone further ahead by utili!ing their wealth to improve the living conditions of many people in
the society. Simultaneously, a shift is already occurring from traditional philanthropy to

wholesome community development among the more progressive of the companies. "inancial
System is the most important institutional and functional vehicle for economic transformation of
any country. #anking sector is reckoned as a hub and barometer of the financial system. s a
pillar of the economy, this sector plays a predominant role in the economic development of the
country. $hus the banking sector has been playing a significant role as growth facilitator. In
recent years corporate social responsibility has become an important issue at global level. $he
concept of corporate social responsibility recogni!es as commitment of an organi!ation to
operate in a socially responsible manner. It takes into consideration the social and environmental
implications of corporate financial decisions. It is also associated with corporate governance and

ethical business procedure.

Experts have defined CSR as ‘A concept whereby a copany ind!"#es in contin!o!s$
responsib"e activities that point to its #ood intentions as a corporate citi%en&
 renowned social responsibility analyst in the %&, 'alin #aker states that CS( is about how
companies manage the business processes to produce an overall positive effect on society
)$he *orld business counsel for sustainable development+ notes that CS( is the continuing
commitment by business to behave ethically and contribute to economic development while
improving the quality of life of the workforce and their families as well as of the local
community and society at large.
 Definitions

ct means the Companies ct, -/0

Corporate Social (esponsibility 1CS(2 means and includes but is not limited to

a2 3ro4ects or programmes relating to activities specified in Schedule 5II to the ct or

b2 3ro4ects or programs relating to activities undertaken by the board of directors of a Company in
pursuance of recommendations of the CS( Committee of the #oard as per declared CS( policy
of the company sub4ect to the condition that such policy will cover sub4ects enumerated in
Schedule 5II of the ct.

CS( Committee means the Corporate Social (esponsibility Committee of the #oard referred
to in section /06 of the ct.
CS( 3olicy relates to the CS( outlook of the Company and the activities to be undertaken by
the company as specified in Schedule 5II to the ct and the expenditure thereon, excluding
activities undertaken in pursuance of normal course of business of a company.
7et profit means the net profit of a company as per its financial statement prepared in
accordance with the applicable provisions of the ct, but shall not include the following,
namely89
a2 any profit arising from any overseas branch or branches of the com pany, whether operated as a
separate company or otherwise; and
b2 any dividend received from other companies in India, which are covered under and complying

with the provisions of section /06 of the ct8

3rovided that net profit in respect of a financial year for which the relevant financial statements
were prepared in accordance with the provisions of the Companies ct, /:6, 1/ of /:62 shall
not be required to be re9calculated in accordance with the provisions of the ct.
 NEED 'OR CSR

CS( is a concept whereby companies decide voluntarily to contribute to a better society and a
cleaner environment. It is represented by the contributions undertaken by companies to society

through its business activities and its social investment. CS( has been making an increasingly
prominent impact in the Indian social system by supplementing development pro4ects. #ut it is
not a novel concept in India as its historical roots goes till the 5edic age. $oday Insurance Sector
growing larger and powerful than before. 5arious 7on9government organi!ations put pressure on
them to act responsibly towards their stakeholde rs. $hus pressure has given rise to the concept
named Corporate Social (esponsibility. CS( defined as <the economic, legal, ethical, and
philanthropic expectations placed on organi!ations by society at a given point in time.= 1Carrol
and #uchholt!, -8062. >xactly what responsibility companies have towards society has been
discussed for some decades now.  fundamental model which could be argued to reflect the

outcome of this discussion is Carroll s 1/::/2 four9part model in figure ? /.

‟

CS( is now an integral part of functioning of an organisation. $he performance of an

organisation should be 4udged beyond the financial parameters. $he authorities need not only
focus on the financial performance but to examine into the CS( performance of the organisation.
Econoic responsibi"ities8 $he first responsibility of the company towards society refers to
running the business as an economically healthy unit. It includes aspects such as return on
investment for shareholders, fair employee salaries, and quality products supplied to customers at
fair prices; all required by the society. 1Crane @'atten, -A2

(e#a" responsibi"ities8 Bemands that companies act in accordance with existing legislation
and regulatory requirements. $he legal framework consequentially fosters society+s ethical view
and all companies attempting to be socially responsible are therefore required by society to
follow the law. 1Crane @'atten, -A2

Ethica" responsibi"ities8 It refers to corporation+s responsibilities which are not covered by

legal or economical requirements, but instead by what could be considered as right or fair in the
eyes of society. Society therefore expects corporations to act ethically towards their stakeholders.

1Crane @ 'atten, -A2

)hi"anthropic responsibi"ities8 $his involves corporations willingness to enhance the

quality of living for their stakeholders 1i.e. employees, local community, and society at large2
through charitable donations and organi!ational support. $hese corporate decisions are entirely
voluntary, of less importance than the former three, and 1with regards to social responsibility2
only seen as desired by society. 1Crane @ 'atten, -A2.
 CSR Nors in India

th
$he government on $hursday, -D "eb -/A notified the much9awaited provisions mandating
companies to plough back at least - per cent of their net profit on upliftment of the society. $he
ministry of corporate affairs 1'C2 has notified Section /06 and Schedule 5II of the Companies

ct, -/0, which relate to corporate social responsibility 1CS(2 that will be effective from pril
/, as part of the new Companies ct. $he norms will apply to companies with at least (s 6crore
net profit or (s /,crore turnover or (s 6crore net worth. $hese companies will have to
spend - per cent of their three9year average annual net profit on CS( activities in each financial
year, starting from "E/6. <$he rules have been finalised after extensive consultations with all
stakeholders and provide for the manner in which CS( committee shall formula te and monitor
the CS( policy, manner of undertaking CS( activities, role of the board of directors therein and
format of disclosure of such activities in the board+s report,= said an official statement by Sachin
3ilot, minister of corporate affairs. ccording to the norms, the CS( activities will have to be
within India, but will apply to foreign companies registered in the country. $he ministry, which
has also listed out permissible activities, said companies will need to take approval from their
board for CS( activities in accordance with its CS( policy and the decision of its CS(
committee. *hile activities such as donating funds to political parties or spends to benefit own
employees and their families will not be counted as a company+s CS(, the government said that
activities such as promoting preventive health care and sanitation, setting up homes and hostels
for women and orphans and livelihood enhancement pro4ects would qualify. $o decide if a
company is eligible for mandatory CS( spending, its profit from overseas branches and dividend
received from other companies in India will be excluded from the net profit criteria.  company
can also carry out CS( works through a registered trust or society or a separate company, but
they can only spend up to 6 per cent of total CS( expenditure on manpower in a single financial
year. $his would be applicable for own personnel as well as those of their implementing
agencies. $he ministry had, late last year, issued draft rules for CS( activities by India Inc and
had sought public comments. *elcoming the final norms, experts said that companies will now
have to gear up to implement their CS( programmes under the final rules that will be effective in
4ust a month.
 CSR )o"icy re*!ireents asper the Copanies Act$ and notified R!"es

It may be noted that the term <CS( 3olicy= as used in the ct and the (ules notified on "ebruary
-F, -/A requires the following to be included8

a2 < list of CS( pro4ects or programs which a company plans to undertake falli ng within the
purview of Schedule 5II of the ct, specifying modalities of execution of such pro4ects and
programs and implementation schedules for the same; and

b2 'onitoring process for such programs provided that the CS( activities shall not include the
activities undertaken in pursuance of normal course of business of the company.
$he surplus arising out of CS( pro4ects or programs or activities shall not for a part of the
business profits of a company.=
 +a,or Areas for CSR
"ollowing are the ma4or areas the banks need to focus on for acting as socially responsible89

 CSR AND )RO-ECT 'INANCE./Gow to balance the risk and interest of the various

participating parties including protecting the interest of those who are directly or
indirectly affected9 specifically the local community that reside within or close to the
area impacted by the pro4ect. $his means that before funding a particular pro4ect they
should analy!e the pro4ect to assess the social and environmental harm that can be
caused by its activities. $hey should also verify the credit worthiness of the borrower so
that the stake holders are protected.

 CO++UNIT0 IN1O(+ENT./ $his includes sponsorship of young entrepreneurs,

giving academic scholarships, taking part in re9cycling and waste management, health
support programs, financial support for art and culture, supporting 7Hs engaged in
drug9prevention measures for the youth etc.

 A2ARENESS AND TRANS)ARENC0./ Bedicating sections of annual reports to

CS( matters, publishing sustainability reports on CS( and web9based information

 EN1IORN+ENT./ #y limiting the consumption of energy and paper, ensuring good

waste management and encouraging the clients to adopt low9carbon emission practices
CSR/Core Thr!st Areas
 $he insurance sector brings a number of positive contributions to society8 by its very
existence, the insurance mechanism is beneficial in many respects, and most companies are
concerned with risk reduction and prevention. 'oreover, insurance companies increasingly tend
to be concerned with responsibility issues. In this, they follow the example of a number of
multinationals worldwide, which have now become familiar with the notions of sustainable
development, corporate social responsibility, or triple bottom line. ver the past few years, a
group of pioneering insurance companies such as JIC, S%7 Jife Insurance, #a4a4 Jife
Insurance, 'K Jife Insurance, >KIB>, H", llian!, viva, K, the Co9operative Insurance
Society, "riends 3rovident, I7H Hroup, the Insurance ustralia Hroup, Jloyds $S#, 3rudential,
the (oyal #ank of Scotland Hroup, Storebrand and Swiss (e, has developed new policies in
order to address mounting challenges in important areas. $hey have undertaken community
involvement programs; they strive to integrate the environmental concern, both internally and
externally; and they also show a growing interest for socially responsible investment. #esides, the
insurance industry generates indirect positive effects on the functioning of the economic system8
firstly, because it tackles the factors of insecurity which would otherwise lead agents to adopt a
more cautious behavior; secondly, because it reduces the number of legal actions that would
otherwise take place; and thirdly, because it alleviates the need for regulation in a vast number of
areas.

Gowever, on closer inspection, it appears that the image of the insurance industry in the
public opinion is not so good. In reality, it appears to be blurred, if not squarely bad.  number
of reasons account for this negative perception8 the opacity of the insurance business with its

misrepresentation and mis9selling practices, the dissatisfaction about the insurance agentsL
reward system, the problems associated with the respect of customersL privacy, and the dilemmas
related to the consequences of outsourcing decisions, count among the ma4or determinants of the
bad image conveyed by the industry. 'oreover, its reputation has been further tarnished by
corporate scandals such as the recent IH affair, where the C> had institutionali!ed
wrongdoings in his company for decades.
 Advanta#es of CSR

It is becoming increasingly important for companies to be good corporate citi!ens. Society has
started to demand it. Consumers believe that increasing the transparency of business practices,
and demonstrating positive social and environmental impacts are the two most effective actions

companies can take to improve public trust in the private sector, according to the <State of
Sustainable #usiness 3oll -//,= a survey conducted by sustainability consultant firms #S( and
Hlobescan.

Bespite the apparent recognition of its benefits, corporate social responsibility 1CS(2 is still only
an emerging phenomenon in the ustralian market. Companies remain skeptical of the idea and
its purported benefits. $he resistance may be, in part, because of ustralia+s operation as a
welfare state, where the onus is on government to provide basic social needs. It may also be due,
in part, to the economic uncertainty following the financial crisis.

Corporations are 4ustifiably uneasy about spending to implement socially responsible

mechanisms when the benefits are not always quantifiable and may only be apparent in the long
term. Gowever, in light of the litany of corporate scandals in recent decades, it is difficult to
maintain the view that organi!ations are under no obligation to consider the broader social,
environmental and economic interests of all stakeholders.

(eputational damage is but one consequence if a company fails to appreciate the importance of
its stakeholders+ interests. $ake, for instance, the infamous ustralian example of Mames Gardie
Industries, which continued to manufacture and sell asbestos products even after becoming

aware of the dangers. &3'H has estimated the total compensation costs at more than %N0
billion, on top of the immeasurable social costs borne by the community.

$he insurance industry has also seen its reputation tarnished by scandal. IH was accused of bid
rigging, accepting contingent commissions and reporting misleading financial figures. $he
>quitable Jife scandal in Hreat #ritain caused thousands of policyholders who invested in
annuities to lose billions. nd in ustralia, there was the collapse of GIG Insurance, a failure
caused by underpricing, reserve problems, false reports, reckless management, incompetence,
fraud and greed. #y the end of Mune -0, the government9funded GIG Claims Support Scheme

had paid out close to %N-A6 million in claims.

Cases like these have left the impression that unethical behavior is characteristic of the industry.
%nfavorable media coverage has shaken stakeholder confidence and raised suspicion.

$he insurance industry+s reputation suffered a setback from the global financial crisis. lthough
most insurers were relatively unscathed compared to the banking sector, some leading insurers,
such as IH, "ortis 1a #elgian insurance group2 and rgenta 1a Jloyd+s of Jondon syndicat e2,
were let down by their non9insurance operations. Bespite the performance of the industry on the
whole, trust in insurers deteriorated.

$he increased occurrence of natural disasters has also presented a social challenge for insurers.
ustralia is highly exposed to natural disasters, and following the Oueensland floods in -/ and
-//, public leaders asked insurers to extend their compassion to victims. #ut with numerous
insurers not offering flood coverage, many policyholders were forced to turn to the government
for assistance when their policies did not respond.

Buring a crisis, an insurer needs to demonstrate that it is more than 4ust a profit9generating,
abstract entity. It is important for insurers to emphasi!e the vital role they play in economic and
societal development. CS( measures implemented in good timesPand in badPwill improve the
industry+s reputation and reinforce stakeholder relationships. $hese two outcomes, in turn, can
increase loyalty, sales and resilience.

Steps to chieving Corporate Social (esponsibility

*hen formulating CS( best practices, insurers should consider customers, employees,
shareholders, intermediaries, suppliers, regulators and the broader community. $he interests of
these stakeholders are vast, and insurers should focus on those that are affected by, or align with,
their business operations.

$here are many potential benefits. Insurers can earn a superior reputation in the market. $hey
can increase engagement and loyalty among staff while reducing turnover rates. CS( can also
increase long9term sustainability and profitability by shaping the market+s competitive
environment and the community as a whole. %ltimately, it will result in insurers becoming more
attractive to investors, who are increasingly concerned about CS( and corporate governance.
34 )ayin# 1a"id C"ais Efficient"y

3aying valid claims efficiently sounds simple, but it involves more than the obvious. Gaving the
right technology is essential, as is staff training. Insurers also need to price risks accurately and
fairly. If risks are continually underpriced, an insurer will go out of business, which will have

wide9ranging effects on all stakeholders 1as demonstrated by the GIG collapse2. n the other
hand, if risks are overpriced, customers may not be able to afford adequate coveragePand may
choose not to insure at all. If most businesses and individuals choose to bear the risk of a loss
that they cannot afford to cover, this will have real implications for the economy, as well as
individuals+ health and safety. It would also place an unbearable burden on the government to
serve as a safety net.

$o pay valid claims efficiently, insurers must also keep down costs. 3remiums are calculated by
account for both the particular risks and operating costs required to provide the policy. It is
therefore important to minimi!e overhead, infrastructure and claims9processing costs so that
insurers can offer affordable insurance. $here is, however, a fine line between insurers being
adequately resourced and providing appropriately priced insurance and insurers being under
resourced, leading to cheaper insurancePbut poor service, long delays and higher claims costs.

54 Ris6 +inii%ation7(oss Contro"

'oney can never entirely repair damage. $herefore, calculating the probability of loss and its
likely costs is not, by itself, good practice. Insurers are in the business of risk analysis. $hey are
the ones best positioned to minimi!e risksPboth internally in their operations and externally for

their clients and other stakeholders.

Internal risk minimi!ation could be as simple as implementing proper policies and procedures,
such as occupational health and safety guidelines. >xternal risk minimi!ation may be more
difficult to employ. Insurers should, however, attempt to do so in any circumstances over which
they have some control. ppropriate strategic CS( measures used to reduce risk externally will
depend on the type of products offered by an insurer. In general, insurers should train
underwriters to look more closely at clients+ internal decision9making processes, risk
management procedures and ethics.
%nderwriting for large, risky pro4ects or companies should entail in9depth research on the likely
sources of risk as well as more extensive screening and monitoring. "urther, insurers should be
proactive in stipulating limits or requirements around insurance for pro4ects that may impact
human rights. ne example is insurance policies for pipeline pro4ects in countries where the
exploitation of natural resources has fueled corruption, social unrest, conflict and abuses.

>xternal risk minimi!ation should reduce claims costs and frequency for clients, and insureds
will thus be incentivi!ed to reduce the likelihood and severity of loss in order to lower their
premiums. Insurers should, and often do, consider offering discounted premiums to insureds that
take preventative measures. "or example, discounts are offered to households that install security
systems, young drivers who take safety courses and life insureds who do not smoke.

84 C"iate Chan#e (eadership

"or insurers, a big part of risk minimi!ation involves the environment, as insurers have an

inherent interest in ensuring their clients are equipped to deal with natural disasters and the
effects of climate change. $he %nited 7ations >nvironmental 3rogram "inance Initiative is a
collaborative effort of more than - companies in the financial services sector to <identify,
define and promote good and best environmental practice= in the industry. *hile some critici!e
its lack of enforcement powers, the initiative plays an important role in fostering international
dialogue. Insurers should support the work of the program, and those like it, if they want to
strengthen their position as pioneers of CS( and stay in reach of their most advanced
competitors.

*ith climate change already impacting the industryPincreasing the number of natural disasters,
altering claims trends, prompting a need for novel underwriting skills, escalating business costs,
spurring new regulations and altering the investment environmentPmany insurers have focused
their CS( strategies on reducing their environmental footprint.

In -, for example, viva, a >uropean company, became the first insurer to <carbon
neutrali!e= its operations. Its program focuses on reducing energy consumption, paper use and
business travel while capitali!ing on energy9efficient property management, waste management
and carbon offsetting. $he company+s approach to carbon offsetting is particularly noteworthy.

7ot only has viva approached carbon brokers to buy carbon credits, but it has also introduced
innovative social and commercial pro4ects to offset carbon emissions. "or example, the company
is supporting a *orld "ood rgani!ation pro4ect in sub9Saharan frica to slow deforestation that
replaces open fires with energy9efficient stoves.

Some insurers are also helping customers reduce their energy consumption. "or example if
customers+ homes are DQ damaged by a weather9related event, Suncorp and HI offer them up
to %N-,6 to pay for rainwater storage or solar power. $hey also have a policy of providing
replacement household products that have a minimum three9star energy9efficiency rating.

94 Strate#ic )hi"anthropy

Strategic philanthropy involves partnering with charities or organi!ations in the community for a
mutually beneficial purpose. $his type of corporate giving can not only impact the community
but also other stakeholders in the business.

"or instance, O#> has set up a foundation that aims to drive employee engagement. $hrough the
program, employees are able to apply for local grants for charities that they personally support.
>mployees can also get involved in the community through paid volunteer leave, and the
foundation has promised to match employees+ charitable contributions and fundraising efforts.

nother form of philanthropy relevant for insurers is disaster relief. "ollowing the recent
Oueensland floods, for example, Suncorp donated %N/, to the Oueensland premier+s
<disaster relief appeal= and set up customer response teams in remote locations to assist as many
customers as it could. "urther, Suncorp provided employees affected by the floods with a range
of services including professional counseling, financial recovery packages and hardship grants.

$here are many other pro4ects insurers could support that are a form of strategic philanthropy.
$hose that decrease crime or improve safety are particularly valuable, as they not only support
the participants but create safer communities, which have lower claims costs than dangerous
areas.
'ission ustralia initiated such a program to deter young people from South 3acific Island
backgrounds from committing criminal behavior in Sydney+s southwest, an area known for its
high number of insurance claims relating to theft. Independent analysis demonstrated that the
program reduced crime rates amongst participants, and 6Q of participants had not reoffended in
the /- months following completion of the program.

IH has done something similar. $he company focused its strategic philanthropy on a
partnership with St. Mohn mbulance to help stakeholders improve their safety and reduce
in4uries.

:4 Reco#nition for ;!an Ri#hts

Studies show that few companies have taken steps to implement human rights policies. Such
mechanisms are often overlooked by companies that either do not see their importancePbecause
they consider the protections afforded in the countries in which they operate to be sufficientPor

specifically want to take advantage of the lack of protections provided by these countries.

Companies that show enthusiasm for observing voluntary human rights codes of conduct usually
operate in a business with the potential to considerably impact human rights; the ma4ority of their
work may be done in developing countries, for example. $hese companies also tend to have
high9profile brand names that they wish to protect, and for that reason they can be more easily
pressured into action by civil society.

$he insurance industry doesn+t meet this classification, but human rights are still an important
consideration because insurance permeates many facets of everyday life. It is particularly
relevant for corporations operating globally or those that may be considering outsourcing 1or
moving2 services to countries with lesser human rights protections.

'any organi!ations have created initiatives to encourage companies to respect human rights and
hold corporations liable for violations. ne of the most notable is the <%.7. Huiding 3rinciples
on #usiness and Guman (ights,= developed by Garvard professor Mohn (uggie and endorsed by
the %nited 7ations in Mune -//.
$hese principles provide a useful reference for insurers. (uggie explains that <to respect rights
essentially means not to infringe on the rights of othersPput simply, to do no harm.= $he key
operational element is to conduct due diligence to <become aware of, prevent and address
adverse human rights impacts.= $his process involves making policy commitments to human
rights, undertaking <periodic assessments on the actual and potential impact of business
operations on human rights, integrating the process into decision making and the tracking of
performance.= $he principles also recommend that corporations develop a means to hold
themselves accountable and to provide for remediation through grievance or other mechanisms.

$he concern about the lack of international legal remedies available for corporations+ human
rights abuses is on the rise. "ollowing the %.S. Supreme Court+s recent, controversial decision
in &iobel v. (oyal Butch 3etroleumPa ruling that has rendered the lien $ort Statute incapable
of providing a means for 4ustice for foreign victimsPsuch concerns will presumably now be at
the forefront of human rights discourse. >ngaging in voluntary measures that afford some

protection from human rights abuses now will help to diminish the demand for increased
regulation in this area in the future.

<4 Socia""y Responsib"e Investent

Socially responsible investment describes the process of including non9financial criteria P

environmental, social and governance considerationsPin decision making. Institutional
investors, such as insurers, are in a powerful position in that they are able to encourage positive
change in investment strategies.

$raditionally, institutional investors have affected the market by investigating how investment
firm boards manage risk, analy!ing reporting methods and occasionally recommending corporate
governance changes. *ith issues such as global warming, child labor and other human rights
violations becoming more prominent in investors+ minds, however, innovative companies
understand that corporations that knowingly ignore social and environmental influences do so at
their own risk. $hey may face complaints, litigation, tarnished reputationsPor see their
opportunity to operate in important markets diminished.
 positive correlation between social, environmental and ethical issues, and long9term
shareholder value is a prerequisite for socially responsible investment to thrive. Studies have
shown that it does not compromise financial gains. Indeed, some studies show a positive
relationship between CS( and financial performance. Institutional investors, including some
insurers, are recogni!ing that non9financial factors are appropriate considerations when it comes
to investing.

$here are three main strategies that socially responsible investors can use. $he first, called
screening, involves selecting investment options based on social or environmental criteria. It
makes sense for insurers to screen out companies that, by the very nature of their operations,
increase the likelihood and costs of claims, such as tobacco companies. $he second strategy,
shareholder activism, as its name suggests, involves communication with the investment
company through shareholder resolutions, for example. If measures of communication are
unsuccessful, then investors can always make their position clear by ceasing to invest in that

company. $he third strategy, community investing, is self9explanatory.

"or example, viva has insured A6, underpri vileged people in India who would otherwise
not be able to take part in productive activities. bviously, financial returns for this type of
investing are likely to be relatively low; however, taking part in community investing may create
new opportunities for an insurer while also improving its standing as a socially responsible
corporation.
 CSR )O(ICIES AND ACTI1ITIES7INITIATI1ES =0 INSURANCE
SECTOR

;D'C (ife Ins!rance

GB"C Jife has always believed that establishing a strong and ethical foundation is an essential
prerequisite for long9term sustainable growth. Integrity and people care are two of our key
fundamental values which we follow. "or us, Corporate (esponsibility comes first.

O!r Approach

GB"C Jife has always believed that establishing a strong and ethical foundation is an essential
prerequisite for long9term sustainable growth. GB"C Jife focuses on maintaining the quality of
business and creation of long9term value for policy holders and stakeholders. *e also believe
that business must go hand in hand with a sense of responsibility towards the society.

GB"C Jife+s business philosophy highlights the theme of self9respect and independence.
Swabhimaan, GB"C Jife+s Corporate Social (esponsibility 1CS(2 initiative9 aims to play a
positive role by contributing towards easing distress and aiding in advancement of society while
engaging with stakeholders thereby becoming a socially responsible corporate citi!en.

GB"C Jife is committed to being a socially responsible corporate and its CS( framework is
governed by a formal policy.

Corporate Socia" Responsibi"ity )o"icy

GB"C Jife CS( framework

chievements *inner of )#est 'arketing Campaign+ award s for India Hiving Challenge
-/0*inner of )Innovative "undraising Campaign+ award s for India Hiving Challenge
-/0(unner up in )#etter than last year pri!es+ for the India Hiving Challenge -/0*on the -nd
)#est 'arketing Campaign+ awards during the India Hiving Challenge -/-*on the -nd )#est
'arketing Campaign+ and -nd )'ost Innovative "undraising Campaign+ awards during the India
Hiving Challenge -//GB"C Jife was awarded the )Euva Gero ward+ in Muly -// for
contribution towards the educational support of lesser privileged children*on the )'ost
innovative fundraising campaign+ award during the )India Hiving Challenge -/+GB"C Jife
was awarded with )Euva %nstoppable Corporate Icon ward+ from Br. 3M &alam in Sept+-/
Initiatives

Reb!i"din# Uttara6hand. A '"ood Response

In Mune -/0, devastating floods struck %ttarakhand. s a responsible corporate GB"C Jife

decided to support rehabilitation of people affected in %ttarakhand floods

SOS chi"dren&s vi""a#e pro,ect

GB"C life believes that education plays a significant role in an individual+s life. It helps children
living on the margins of the society to break away from the cycle of poverty to a secure future.
Teach for India

GB"C Jife believes in every child+s right to quality education and believes that one of the long
term solutions to eradicate the )>ducation inequality+ is by creating )Change Jeaders+.

)ayro"" >ivin#

GB"C Jife encourages its employees to contribute a small part of their salary to establish their
own charity account through the 3ayroll Hiving programme.
Tree p"antation

>nvironmental sustainability is emerging as an essential ingredient to doing business responsibly

and successfully.

'inancia" (iteracy pro,ect

GB"C life believes in empowering marginali!ed population by building their capabilities. ne
of the key capabilities is the ability to use knowledge and skills to manage financial resources
effectively for long term financial well9being.
Swabhiaan Careers

GB"C Jife reali!es that coping with the loss of a loved one is a painful experience. *hile the
disbursement of a death claim may help family members.

A6shaya )atra

GB"C life believes that education plays a significant role in a person+s life. It helps marginali!ed
population of society in breaking away from the shackles of poverty.
 E?IDE (I'E INSURANCE

Say No to )"astics

>xide Jife Insurance is in the business of helping its customers manage their financial futures.
Jike protection of life insurance is important to build a foundation for our familyLs financial
future, it is important for us as individuals to protect the environment that will lead to a safer and
better tomorrow.

Say 7o to 3lastics is a very unique initiative from >xide Jife Insurance that educates the citi!ens
of India on the negative effects of usage of plastics and encourages them to switch to
environment friendly materials.

%nder this program, our teams have engaged with more than /, households. ur teams go
door to door and during every interaction they handover &ora Cloth bags and make people take
a pledge towards this noble cause.

$his program was recently recogni!ed by (ural 'arketing ssociation India through a Hold
ward in the Boor $o Boor 'arketing 1Social2 Category.

>xide Jife Insurance thanks all those have already said no to plastics.
 S=I (ife Ins!rance / India

S#I Jife undertakes its CS( initiatives with an ob4ective to bring about effective change as a
(esponsible Corporate Citi!en.

$hrough various CS( initiatives, Company intends to ameliorate the conditions of the people
from the underprivileged sections of the society by facilitating them with education, adequate
health care services and contributing towards making their lives better.

34 'aci"itate ed!cation for !nderprivi"e#ed chi"dren thro!#h the fo""owin# initiatives.

RContributed towards the academic support of /,- underprivileged girls in 'umbai and :
girls in ndhra 3radesh in partnership with 7anhi &ali. In addition to primary education, the
support includes cademic Support 1Cost of $utors, $raining2 and 'aterial Support 1%niform,
Stationery and 7otebooks2.

Nanhi @a"i, is a pro4ect 4ointly managed by &C 'ahindra >ducation $rust and 7aandi
"oundation was incepted in /::.

Rrgani!ed 3ro4ect %nnati along with Smile "oundation and supported the educational needs of
-6 young girls.
Si"e 'o!ndation is an Indian development agency registered as an Indian Charitable $rust in
--, working for the holistic development of children, youths and women 1in the areas of
education, health, girl child, empowerment and livelihood2.

RContributed towards supporting the educational requirement of the children like note books,
stationary items from druta "oundation.

Adr!ta 'o!ndation rehabilitates orphaned or deserted children in disha. It aims at becoming

the centre of excellence in providing food, clothing, education and holistic growth to destitute
children.

RContributed towards procuring school bags, water bottles, notebooks, pencils, erasers, crayon
boxes and white board for classroom teaching /-6 children in %$SG, Huwhati.

3
UTSA; 1%niversal $eam for Social ction @ Gelp2 is a Child 3rotection Centre,
accommodating /-6 students from the slum area under the >ducation 3rogramme.

RS#I Jife Chandigarh office identified an orphanage for girls 9 <%nique Gomes for Hirls=,
Malandhar. $he office distributed a set of uniform, bags and shoes to A6 girls.

%nique Gome is run by a trust named after #hai Hhanayya Mi, a disciple of Huru Hobind Singh

RS#I Jife distributed books at Maibai Choudhary School, 7ew Colony, Sadar 7agpur.
 54 S!pport towards Underprivi"e#ed Citi%ens.

RS#I Jife &olkata donated /6 *heel Chairs, /6 Ceiling "ans, 6 3lastic Chairs, and 'edicines
for one month, 6&gs Gorlicks, "ruits, #iscuits, etc to 3rem Baan a home for destitute run by
'issionaries of Charity.

)re Daan is a home for destitute run by 'issionaries of Charity, &olkata with a mission of
serving underprivileged destitute brought from different part of the city. 3eople with

psychological problems are treated and helped to return to normal life.

84 Towards Environenta" Re"ated Ca!se

RS#I Jife in association with Hrow$rees.com plants a tree on the occasion of every employee+s
birthday. $he trees are planted at various reforestation areas like &anha 7ational 3ark at 'adhya
3radesh, periphery of Satkosia Horge *ildlife Sanctuary, ngul, rissa etc and are maintained
at a high survival rate. In "E -/09/A, D,F0 trees were planted.

Hrow$rees.com focuses on tree plantation as it creates low9skill 4obs and trees provide benefit to
current and future generations, have a direct impact on carbon reduction, restoring forests,
improving wildlife habitats, and upgrading water catchment areas, offer flowers, fruit fodder and
fuel for local communities and all living creatures.
 TRI)(E =OTTO+ (INE AND CSR

$he triple bottom line refers to a how a corporation deals with and reports on its impact and
behaviour in respect to people, planet and profit. It reflects to a corporation+s greater
transparency and accountability in its public reporting, communication and disclosure in regard
to how the corporate entity performs in environmental, social and economic dimensions *hile
there is no single universally accepted definition of $#J reporting, in a sentence it can be
defined as corporate communication with stakeholders that describes the company+s approach to
managing economic, environmental and social dimensions of its activities. It is also known as
)corporate social responsibility+, though some prefer to use the word )sustainability+ as more
encompassing, as they argue that responsibility emphasises the benefits to social groups outside
the business, whereas sustainability gives equal importance to the benefits en4oyed by the
corporation itself. Sustainable in this definition also refers to development that must not reduce
options open to future generations

Gowever, responsibility and sustainability are both used to refer to a company+s obligations to
society at large. $he phrase LLcorporate social responsibilityLL 1CS(2 is used to describe why,
when, and how businesses manage their social, environmental, and economic aims and
performance. It is an expression of the belief that it is not enough for a company simply to profit
its owners. (ather, CS( holds that a company also must ensure that it does little or no harm to,
and preferably helps, its workers, the environment, and the communities in which it operates.

s such, CS( is a balancing act between the interests of a companyLs various LLstakeholdersLL
including shareowners, executives, employees, communities, and customers. It also is referred to
as LLgood corporate citi!enshipLL, LLcompassionate capitalismLL, and LLbusiness ethicsLL. CS( has
evolved in diverse ways for different companies, industries, and societies. In the %nited States,
Jatin merica and Southeast sia, for example, much CS( involves donations to social and
artistic causes and other such acts of corporate philanthropy. In >urope, where charity is
regarded as a peripheral aspect of corporate operations, debate about CS( has focused on the
environmental and social impact of companiesL business functions.

$he concept of the $riple bottom line was proposed by Mohn >lkington, who suggests that
businesses need to measure their success not only by the traditional bottom line of financial
performance @ profit, but also by their impact on the broader economy, the environment and on
the society in which they operate.In conducting their businesses, companies use not only
financial resources 1investment dollars, sales revenues2, but also environmental resources 1water,
energy, raw materials2 and social resources 1employee+s time and talents, infrastructure provided
by govt agencies2. Gis argument was that a sustainable business out to be able to measure,
document ad report a positive return on investment across all three bottom lines, as well as
showing the benefits that stakeholders receive along the same three dimensions.
#asically, triple bottom line 1$#J2 reporting is meant to capture, describe and measure the
impact of the organisation+s activities on the world. $he triple bottom line exists as a kind of
balanced scorecard that captures in numbers and words the degree to which any company is or is
not creating value for its shareholders and society

Econoic profitB Environenta" p"anetB Socia" peop"eB

Sales, profits return on irOuality Jabour3ractices

investment
$axes paid *aterquality CommunityImpacts

'onetary"lows >nergyusage Guman(ights

MobsCreated *aste3roduced 3roduct(esponsibility

 =ENE'ITS O' TRI)(E =OTTO+ (INE

Enhanceent of rep!tation and brand./

>ffective communication with stakeholders on one or more of $#J dimensions can play an
important role in managing stakeholder perceptions and so protect and enhance corporate
reputation 1look what happened to wheat board shares2.

Sec!rin# a socia" "icence to operate./

$his is kind of like reputation, an informal community and stakeholder support for the
organi!ation+s operations ? communities are likely to be more supportive of companies that
communicate openly @ honestly about their performance in relation to environ, social @
economic factors.

Attraction and retention of hi#h ca"ibre ep"oyees./

$he publication of $#J information can play a role in positioning an employer as an employer of
choice, which can enhance employee loyalty , reduce turnover attract knowledgegold collar
workers.

Red!ced ris6 profi"e./

*hen $#J reporting takes place a company shows its commitment to minimising risk ? in times
of increasing litigation, where due diligence can be established and a company establishes risks,
they can be better managed. In turn, this improves stakeholder relations and makes it easier to

attract investment capital and therefore positively affect the share price.

Identification of potentia" cost savin#s./

$#J reporting involves the collection, collation and analysis of data on resource and material
usage and the assessment of various processes. $his can actually help a company to better
identify opportunities for cost savings through more efficient use of resources and materials
Increased scope for innovation./
In the process of reporting on all aspects of $#J, a company may actually create new
innovations.
>.g.89 trying to use less water, invent a grey water recycler.

Creation of a so!nd basis for sta6eho"der dia"o#!e./

3ublication of $#J reporting creates a platform for engaging in dialogue with stakeholders.
%nderstanding stakeholder requirements and aligning them with business performance is
fundamental to business success.
 'UTURE SCENARIO O' CSR

*e in India need to take hard look at ourselves. Compared to other countries our track record in
development is fair from satisfactory.  man may have a mobile phone, but does not have access
to clean drinking water , a toilet, healthcare or basic infrastructure like electricity or roads. $he

poorest of the poor in the world live here even while malls are springing up everywhere. $he
population stratification is the steepest in the world. In a country of more than /.-b people, we
have a shortage of doctors, teachers, nurses, policem an, soldiers in fact of all skilled workmen .
$he harsh reality of a high rate of malnutrition and infant mortality cannot be brushed under the
carpet or simply wished away. bove all, the complete breakdown of the <value system= has
brought the sense of mortality, ethics and social 4ustice to an all time low.

*here is the disconnectT Is the environment conducive to growth and developmentT In a country
sixty six years 1not young2 there has been grave failure. Gowever, it is not the time to fix

responsibility for the past, but it is time to take responsibility for the present.
*hat is Indias take on thisT re we waiting for <policy change= at the national levelT Can we
remain myopic and unaffected, like a duck in waterT I think there is an urgent call for <#ack to
#asics=. *e all have a role to play. Sustained growth has to be inclusive. $ipping of the balance
will result in disaster. Social and economic asymmetries cause imbalances leading to law and
order situations and even revolutions. >conomic growth must be a nation, not in exclusion of the
people. $he imbalances may not be obvious to some because of a large middle lass population
that lives in urban areas and is hopefully getting <roti, kapda= but this constitutes a minority of
the total populati on. *ith exposure to media they are also well aware of what they do not have
access to leading to frustration. $here are some people in tribal areas who still eat rats to survive
and have no knowledge of electricity even today.

t a time when Corporate Social (esponsi bility is being pro4ected as mandatory, it is the ideal
opportunity for corporate to establish priorities and work on their selected platform with
accountability and responsibility, focusing on areas where their efforts will result in nation
building.
$here is a need for corporates to take on institutional responsibility and ownership in executing
CS( in the line of their business. It is simply a matter of looking and reaching outwards, out of
the circle the routine profit making cycle. $his effort of reaching outwards inevitably widens
ones reach and reaps gains for the company while bringing about positive changes in the
environment. Such positive change from different directions merges into direct <Hrowth=. CS(
is a *in9*in situation.

*hat are the pre9requisites that a company should imbibe before its CS( becomes a significant
entityT

  sense of collective responsibility

 ccountability
 n ability to see the larger picture; the larger good which will bring additional value to
the company.
  sense of nationalism; pride in the nation and its achievements. $he ability to think as
an Indian.
 Hood Corporate Hovernance and >thical practices which are also a part of Corporate
(esponsibility. $hese must filter to the individual level.

>xecution needs commitment, authenticating of partners and monitoring processes. >mployees

engagement is important. Involvement and support from the top management is vital for the
success of CS( pro4ects. >mployees reali!e the importance of CS( initiatives to the company
when support from top management is visible. I have seen that those employees who engage in
CS( initiatives get involved and feel empowered by their personal ability to make a difference.

$hey feel proud to belong to an organi!ation that does good work for the needy. $hey are
motivated and from a more committed work force.

Areas of wor6 co!"d be.

/. Gealthcare
-. >ducation
0. Skills training
A. #uilding infrastructure
6. >nvironmental issues
Conc"!sion.

7o doubt CS( is not the only solution. It is but a small cog in the engine of development;
however it is critical part. *ithout the corporates taking on the mantle of social responsibility
and aiding and pressuri!ing the government to do it bit, this engine could come to a grinding

halt.

$he time to act is 7*.

 =I=(IO>RA);0

Sched!"e 1II of Copanies Act 538

>"oba" -o!rna" 'or Research Ana"ysis

Indian -o!rna" Of Research

2E=(IO>RA);0

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