Corporate Social Responsibility Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance

, or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders. The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact. It was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984. Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized international standard for CSR. Public sector

but Plenty of Debate The problem with corporate social responsibility (CSR) is that nobody is very clear about what exactly it encompasses. The CSR measures are actually part of a new Companies Bill that has been in the works for several years. A revision process was .organizations (the United Nations for example) adhere to the triple bottom line (TBL). That would have gone some way in removing the vagueness that exists about the term. Instead of defining CSR. Today. CSR to some companies means providing lunch to employees. But the debate continues. Deora has repeatedly expressed the personal view that CSR should be compulsory. Facing strong criticism. the government would have had to spell out what constitutes CSR. the Indian government recast it as "responsible business" in a set of voluntary guidelines for firms released July 8 by then Union minister of corporate affairs Murli Deora. In meetings with industry. If the proposed rule had come into play. it's about tackling global warming and environmental issues. The UN has developed the Principles for Responsible Investment as guidelines for investing entities. It is widely accepted that CSR adheres to similar principles but with no formal act of legislation. the government asks that companies keep tabs on CSR spending and disclose it to their principal stakeholders. it gave up the effort in mid-July and made the spending voluntary. however. To others. The recent unsuccessful effort isn't expected to be the last word on mandatory CSR spending. The Companies Act of 1956. In the latest round of recommendations. has several clauses inappropriate to the current business and economic environment. Corporate Social Responsibility in India: No Clear Definition. which is currently the rule of law. The Indian government has been trying to make it mandatory for companies to spend at least 2% of net profits on CSR.

started in October 2003 and a Companies Bill 2008 was tabled in Parliament." Deval Sanghavi. "Companies may resort to camouflaging activities to meet such regulations. The rules will be so vague that the reporting will be even vaguer. agrees." argues the lobbying group. Salman Khurshid (now Union minister for law).the Companies Bill 2009 -. Rival chamber the Confederation of Indian Industry (CII) says that compulsory corporate responsibility would be counterproductive. Industry has been almost totally against a mandatory clause. When you make things mandatory. That legislation lapsed with the dissolution of the Lok Sabha (the lower house of Parliament) in 2009. Later. "I am not in favor of mandatory CSR. CEO of non-governmental organization (NGO) GiveIndia. particularly during recessionary periods and economic downturns. he veered around to the view that if CSR spending figures are made public. The Federation of Indian Chambers of Commerce & Industry (FICCI) has suggested tax breaks instead for those who meet the voluntary targets." says Dhaval Udani. a strategic philanthropy foundation. "It is a crazy idea. it's the CSR piece that has created the most debate. Deora's predecessor. While the Companies Bill contains many provisions that are of great importance to industry. A new bill -. the chances of their not being done are greater. co-founder & CEO of Dasra. India's philanthropic community is also against compulsory CSR. It is wending its way slowly through various committees. it will put adequate peer pressure on the corporate laggards." he notes. "Once you make it mandatory.has been tabled. at one time supported making the spending mandatory. . people will find ways and means to get out of it.

"In the recent past. "This is outsourcing of governance. the lines between giving and CSR have grown hazier. The trouble is that somewhere along the way. particularly in India. "CSR should actually relate to the way you conduct your business. "The laws in developed countries do not stipulate mandatory CSR contributions. It is not necessarily the quantum of funds spent that matters. If you want. Then people should decide [what to do] on their own. "It's good to say that [CSR] is desirable.where corporates understand the value in focusing on philanthropy and act upon it in that regard -.Industrialist Adi Godrej adds. .is better than the stick approach." He. "I just don't get it. But you can't dictate CSR." Dungarpur notes. many European countries have specified that companies must include CSR information in their annual reports. too. Saudi Arabia is possibly the only exception." Philanthropist Rohini Nilekani is more critical. very few countries have a CSR requirement. whereas it gets confused with giving to the local communities in which you operate. you tax the corporates and put the money into social programs. "Generally the carrot approach -. is against a government mandate." The world over." according to KPMG partner (development sector practice) Sudhir Singh Dungarpur." Blurred Boundaries India has a tradition of corporate philanthropy." she says. but get blurred. This is taking the failure of the state and the corporates and trying to create a model out of it. "Corporate philanthropy and CSR are really two different things." Adds Parul Soni. it is how you spend it.

executive director and practice leader at Ernst & Young (India): "CSR is a journey and not a destination." between philanthropy and CSR. But that term. corporate . the government also sought to include vocational training for employees as part of CSR. When Bill Gates and Warren Buffett came to India earlier this year to popularize their Giving Pledge. I think in many ways. in India in particular.also talks of health. which runs a huge university of sorts for entry-level employees. cultural and social welfare. and education coming under the CSR head." Recently. Mumbai-based partner with Bain & Company and the author of Bain's recently-released "India Philanthropy Report 2011". CSR is almost a 100% overlap with whatever the promoter family's passions are. just about everyone sees CSR through a different lens. An Ernst & Young white paper titled. "The Emerging Role of Business -.corporate social compulsion. says Arpan Sheth. qualify? Or is would the vocational training umbrella only include those who are taught manual skills? The first government paper on CSR -. is difficult to define.Not Just for Profit.released by the ministry of corporate affairs in 2009 -. Would Infosys. too." offers other options: "CSR could be and is used synonymously with terms like corporate responsibility. Indeed." "I don't think there is a clear distinction. which asks the wealthy to commit to giving the majority of their fortunes to philanthropy. they told Indian companies that the effort was not CSR but CSC -. "It's like a Venn diagram where there's overlap between the two.

"However. corporate social performance and corporate sustainability. unemployment. "CSR: Towards a Sustainable Future" -.noted that until the 1990s. CSR was dominated by the idea of philanthropy and that business efforts were often limited to one-time financial grants. the country continues to grapple with problems of poverty. businesses never kept the stakeholder in mind while planning such initiatives. But that effort has spawned its own debate with some others questioning ICAI's right to be heard." Stepping into the breach is the Institute of Chartered Accountants of India (ICAI). the concept of CSR has been changing. over the past few years. sustainable responsible business. thereby reducing the efficacy and efficiency of CSR initiatives." The View from Delhi When former minister of corporate affairs Khurshid released the 2009 guidelines he noted that though India's business sector has generated wealth for shareholders for decades. illiteracy and malnutrition." The report -. as a white paper by KPMG and the Associated Chambers of Commerce and Industry of India (ASSOCHAM) presented at the first International Summit on CSR held in New Delhi in 2008 put it: "CSR is comprehended differently by different people. The arguments will likely continue because." according to the report.citizenship. "Corporate growth is sometimes seen as widening the gap between India and Bharat [rural .titled. There has been an apparent transition from giving as an obligation or charity to giving as a strategy or responsibility. The accounting regulator has set up a subcommittee to identify what should come under the CSR umbrella and what shouldn't. "Moreover.

The Grant Thornton International Business Report was launched in 1992 and now covers over 11." A report from global accounting and consulting firm Grant Thornton that used data collected in late 2010 and early 2011 noted that CSR activities across the world have increased dramatically in recent years as "businesses realize their value not only commercially. "This gap needs to be bridged. some management thinkers feel a meeting of minds is possible.India] through its income-skewing capability. "The Link between Competitive Advantage and CSR." they wrote. In a 2006 Harvard Business Review article titled. CSV is integral to a company's profitability . While the government undertakes extensive developmental initiatives through a series of sectoral programs. making them hard to justify and maintain over the long run. but also in terms of boosting employee value.000 respondents per year in 39 economies. the business sector also needs to take the responsibility of exhibiting socially responsible business practices that ensure the distribution of wealth and the well-being of the communities in which the business operates. attracting staff and cutting costs. "CSR programs focus mostly on reputation and have only a limited connection to the business." authors Michael E. "Saving the planet" came in sixth in the survey of drivers of CSR. Kramer argue that creating shared value (CSV) should take precedence over CSR." Incidentally. "CSV should supersede CSR in guiding the investments of companies in their communities. Porter and Mark R. In contrast. Despite this seemingly irreconcilable divergence." Khursid said.

5 trillion. Corporate Social Responsibility Practices in India CSR is not new to India. Egypt. and the Philippines. In developing countries such as India. small. Indonesia.400 corporate members that globally employ more than six million workers. and has established affiliate resource centers in emerging market economies where there is a demand for corporate involvement in social causes. with a collective membership of thousands of companies -big. Brazil. and account for a total annual revenue of US$1. Inspite of having such life size successful examples. CSR in India is in a very nascent stage. the London-based International Business Leaders Forum counts 60 major global companies as members. business associations dedicated to CSR exist." CSR Practices across the globe There are scores of CSR organizations and business associations promoting corporate social responsibility. It can be said that there are as many variations of CSR activities as there are CSR advocate companies and organizations. It leverages the unique expertise and resources of the company to create economic value by creating social value. San Francisco-based Business for Social Responsibility alone has 1. In Europe. and medium-sized – in diverse industries. companies like TATA and BIRLA have been imbibing the case for social good in their operations for decades long before CSR become a popular cause. It is followed by a handful of . In the United States. It is still one of the least understood initiatives in the Indian development sector.and competitive position.

the Infosys Foundation as a not-for-profit trust to which it contributes up to 1%PAT every year. and environment is also good for the business’. in 1996. inadequately trained personnel. A lack of understanding. Community Service. Additionally. But the situation is changing. health. and by a few private companies. Infosys leadership has set examples in the area of corporate citizenship and has involved itself actively in key national bodies. Welfare activities undertaken by the Infosys Foundation.their community. Employment. policy etc. They have taken initiatives to work in the areas of Research and Education. Examples from India Infosys Technologies Limited Infosys is actively involved in various community development programs. with international shareholding as this is the practice followed by them in their respective foreign country. Healthcare for the poor.public companies as dictated by the very basis of their existence. further adds to the reach and effectiveness of CSR programmes. . non availability of authentic data and specific information on the kinds of CSR activities. Education and Arts & Culture.Rural Reach Programme. the Education and ResearchDepartment (E&R) at Infosys also works with employee volunteers on community development projects. Thus the situation is far from perfect as the emphasis is not on social good but rather on a policy that needs to be implemented.Infosys promoted. coverage. And CSR is coming out of the purview of ‘doing social good’ and is fast becoming a ‘business necessity’. The ‘business case’ for CSR is gaining ground and corporate houses are realising that ‘what is good for workers .

Mahindra Education Trust was established in 1953 by late Mr. . It promotes education mainly by the way of scholarships. financial assistanceand recognition to them. C. across age groups and across income strata.ITC Limited ITC partnered the Indian farmer for close to a century.5 Crore in the form of grants. We aim to increase the number of Nanhi Kalis (children) to 10. and providing infrastructural support to make schools exciting for village children. The K. which make a difference to the lives of deserving students.000 in the next 2 years.300 children under it. Its vision is to transform the lives of people in India through education. 7. ITC is significantly widening its farmer partnerships to embrace a host of value-adding activities: creating livelihoods by helping poor tribals make their wastelands productive. investing in rainwater harvesting to bring much-needed irrigation to parched drylands. Mahindra with an objective topromote education. The Nanhi Kali project has over 3. C. scholarships and loans. Mahindra Education Trust undertakesa number of education initiatives. Mahindra & Mahindra The K.Through these rural partnerships. K. C. by reaching out to the underprivileged children especially in rural areas. empowering rural women by helping them evolve into entrepreneurs. ITC touches the lives of nearly 3 million villagers across India. ITC is now engaged in elevating this partnership to a new paradigm by leveraging information technology through its trailblazing 'eChoupal' initiative.The Trust has provided more than Rs.

F C Kohli along with Prof. an innovative teaching strategy that uses multimedia software to teach adults to read within about 40 learning hours. ALP believes illiteracy is a major social concern affecting a third of the Indian population comprising old and young adults. after discussing with the village elders and concerned Government authorities. Registered as Satyam Alambana Trust in 2000. Tata Consultancy Services The Adult Literacy Program (ALP) was conceived and set up by Dr. Kesav Nori of Tata Consultancy Services in May 2000 to address the problem of illiteracy. formed to support and strengthen the vulnerable and underprivileged sections in urban India. travel long distances to fetch water for drinking and other purposes. the company. it uses a TCSdesigned Computer–Based Functional Literacy Method (CBFL). the villagers.Satyam Computer Services Limited Alambana (support) is the corporate social responsibility arm of Satyam Computer Services Limited. Volunteers from among Satyam associates and their family members lead the services and perform the required tasks. Alambana aims at transforming the quality of life among urban population. Alambana's services are directed primarily at the disadvantaged sections in all the cities that Satyam has offices in. Considering the difficulties and hardship faced by the people. To accelerate the rate of learning. P N Murthy and Prof.took the initiative of making water available . particularly women folk. During summer months. Dalmia Cement (Bharat) Limited The water source for the villages in and around the Dalmia Cement factory is dependent on rains.

in the Hadoti region (Kota. The four-year project covered 63 government schools and benefited 15. 45 bore wells have been provided in various villages. Bundi. Over the last 3 decades. medical assistance. is a unit of DSCL. emphasis on girl child education. scholarships. GEF is currently implementing projects in Thane district. covering 71 schools & balwadis) and Solan district. 475 kms. Malvoi. Himachal Pradesh (10 . Water tanks to store the water.000 trees were planted and nurtured over a period of eight years.schools. Edayathankudi etc. The presence of large trees and vast greenery has considerably improved the ecology in the area. ambulances.water to people and infrastructure. Pullabmadi. Rajasthan (this Project is being implemented in partnership with the NGO Bodh Shiksha Samiti. Rain and seepage water is harvested in the quarries of the company is pumped into a tank and supplied to inhabitants. Maharashtra (in 56 schools & balwadis). various initiatives have been undertaken by the unit. Elakkurichi. Alwar District. Jhalawar districts) in ICU. DCM Shriram Consolidated Limited Shriram Fertilisers and Chemicals. family planning. namely Kallakudi. Muthuvathur. 300 to 400 people get adequate drinking water from each bore well. 44. Palanganathan. located at Kota.by: Providing deep bore wells. Goodearth Education Foundation (GEF) Work of GEF was initiated in 1996 with a project in the Rai Bareilly district in Uttar Pradesh.000 children. Approximately. So far.

And shortly thereafter. The members of Engineering and Logistics segment of WEF came together to establish this network. It was during the WEF annual meet that the massive earthquake struck Gujarat in January 2001.promoted by the World Economic Forum (WEF). DRN . India Aluminium Company Limited The Women's Empowerment project was initiated by Indal-Muri in Jharkhand where the Company operates an alumina refining plant. and Environment. It was implemented in collaboration with an NGO.India Initiative was launched. Education. CARE-Jharkhand. Hindustan Construction Company (HCC) HCC plays an active role in CSR initiatives in the fields of Health.Disaster Resource Network DRN is a worldwide initiative. The central problem this project has attempted to address is the very low . NGO's and International Organizations in disaster management. GEF Objectives include providing equal opportunities in pre-primary& primary education to all children. The idea was further strengthened during the 9/11 incident where again the industry participated in the relief operations. The need for a trained and effective participation from industry was first felt there. effective and activity based. DRN Worldwide was formally launched in New York in January 2002.Balwadis). and quality of education by ensuring that it is relevant.Trained volunteers and equipment resources from Engineering Construction & Logistics companies will complement the existing efforts of Government. Disaster Management.

we could build a better community and society tomorrow. The company’s commitment to the school . Promotion of Nutrition Gardens and improved land / agricultural and natural resource management practices. unresponsive health/ Integrated Child Development Services (ICDS)schemes.lack of or low cash income.socio-economic condition of the rural and tribal population of Silli block caused by low agricultural productivity. which are running successfully with members trained in various vocational income–generating skills. agricultural methods for better yields and health care initiatives. in the vicinity of the company premises as its social responsibility. and Creation of demand for improved ICDS/ health services through Self Help Groups and strengthening ICDS/ Health Department's service delivery JCB India Ltd.The Project has helped set up around 100 Self Help Groups so far. They strongly believe that children are the foundation of our nation and they could be helped. The reason for adopting this particular school was the poor management of the school in terms of infrastructure. The Indal Women's Empowerment & Child Care project employed integrated package of strategies and interventions. About 2000 women have been brought into the fold of this activity helping to improve not justtheir own lives but the quality of life of their children and families as well. such as: Establishment and Strengthening of Self Help Groups (SHG) in 30 strategically selected villages. JCB India adopted a Government school. resources and qualityof education.

scaffolder and electrical wireman trades to a wide spectrum of the rural poor. employing about 32 million-strong workforce. initially offering training in formwork. masonry.goes much beyond just providing monetary support towards infrastructure and maintenance of school building. Since inception. with about sixty percent of them being deployed to L&T’s jobsites spread across the country.000 skilled workmen in various trades.Chennai. CSTI set up a branch at Panvel. As a result of the good response it received in Chennai. L&T set out to regulate and promote Construction Vocational Training (CVT) in India by establishing a Construction Skills Training Institute (CSTI) on a 5. these two units have produced about 2. The success of this training-initiative demonstrates that adoption of systematic training techniques are bound to yield efficient and skilled personnel in the shortest possible time. plumbing and sanitary. totally free of cost. Larsen & Toubro (L & T) Limited Considering that construction industry is the second largest employer in India after agriculture. the minimum qualification being tenth standard.5 acre land. carpentry. CSTI imparts. and in the power to convert the potential of the Rural Youth in Construction and upgrading Rura Economy in a small way . Mumbai. The Manapakkam and Panvel facilities together provide training to about 300 candidates annually who are inducted after a process of selection. bar-bending. close to its Construction Division Headquarters at Manapakkam. basic training in formwork. carpentry and masonry trades.

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