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

Deepak Bal (Roll No – 67)

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

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

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

Ethics,

What is Corporate Social Responsibility “Operating a business in a manner that meets or exceeds the ethical.World Business Council for Sustainable Development (WBCSD) . commercial and public expectations of the society. legal.” .

g. Pollution • Powerful social actor • Corporate activities have social impact • Reply on the contribution of much wider set of contribution .Why do Corporation have Social Responsibility Business Reasons • • • • Rewarded with more satisfied customers Esteemed destination for employment Greater independent from Government Create an improved and stable competitive environment to do business Moral Reasons • To solve problems those they cause e.

The Nature of the Responsibility .

How do Corporations respond for CSR • Reaction.Go beyond industry norms .Denies the responsibility • Defence – Admits but doing that is required • Accommodation – Accepts and does what is demanded by the relevant group. • Pro-action.

Tribal Tradition .Religious. – Asia & Africa.CSR tightly embedded in the legal and institutional framework of society – Europe – Regulations.How do Corporations do CSR (Not every country at same pedestal) • Explicit . Customary.CSR as an explicit activity – US • Implicit .

Accounting and Reporting . BP’s emission target • Systems . ISO 26000.Compliance Management .Social Programs Like ISO 14000.Code of Conduct through explicit activities e.g. EMAS • Reporting .Implications for Enterprises: CSR Management How do companies address socio-environmental & legal compliance issues? • Policies .

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

International CSR Norms 1.UN Global Compact 3.ISO – 26000 2.ILO’s Tripartite Declaration on Multinational Enterprises and Social Policy .

2 Defining scope Fair operating practises Community & society development Consumer issues Labour Practises Human Rights 7. Ethical behaviour 2. Respect for and considering of stakeholder interests 5.8 Enhancing credibility Environment 7. Transparency 7. Respect for international norms of behaviour 4.4 Integrating into organization 7. Respect for rule of law 3.ISO 26000 – Format Principles of SR 1. Accountability 6.3 Communicating .7 Evaluating performance 7. Respect for human rights Core Subjects Organizational Governance Implementing SR 7.5 Implementing in daily practise 7.3 Working With Stakeholders 7. Precautionary approach 8.

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

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

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

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

CSR Management: Management structure Board of Directors Audit Committee of Board President & CEO Group Presidents Chief Financial Officer VP of Human Resources General Counsel Corporate Responsibili ty Officer Steering Committee .

CSR Management: Plan. Act method Plan Do • Consult stakeholders • Establish code of conduct • Set targets • Establish management systems and personnel • Promote code compliance Check Act • Measure progress • Audit • Report • Corrective action • Reform of systems . Do. Check.

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

Bharti Enterprises Anu Aga. Link it to Business The Godrej Group has a beautician’s training program to help woman to get jobs in salon or turn entrepreneur in the grooming business.In Newspapers…… Delink from the business Thermax shunned its business of energy and environment solutions and focuses on imparting soft skills to youngsters from marginalised communities to make them more employable India’s Pressing Problems The Bharti Foundation runs 254 schools. Director. providing free primary & secondary education. Maharashtra. BOD. Director.Godrej Group . is outside the purview of company’s operations Rakesh Bharti Mittal. Their familiarity with the companies Product makes them brand ambassador for the Group Address the Local Community Mobile health units and Cadre of local caregivers created in the 12 villages adjoining its plant in chandrapur. Ambuja Group Adi Godrej. Thermax B L Taparia.

TOP CSR SPENDERS .

Weyerhauser -one the biggest players in the global forest products industry. Nextera rebranded themselves in 2009 in an effort to disassociate themselves from a regional sounding name (they operate is 28 US states and Canada) and to highlight their aggressive move into renewable energy.6 million acres of commercial timberland worldwide and another 15. 29 wind farms.Founded in 1884. in 2009 Nestle instituted "The Cocoa Plan" in an effort to encourage sustainability. NextEra Energy . Weyerhauser owns 6.Formerly known as Florida Power & Light.Some Socially Responsible Companies (ref -Fortune Magazine) Walt Disney Company – The company house that Mickey built is the only US-based in the top 5.2 million acres on long-term leases in Canada. Edison is one of the leading renewable energy providers in Europe with 68 hydroelectric facilities. and one solar facility (tie) Nestle . 99% of these forests are certified to sustainable forestry standards. this Milan based firm is Europe's oldest energy company. According to their website. Edison . NEE is the largest owner and operator of wind power farms in the US and second only to Iberdrola in the world (44% of NEE's total energy output comes from wind power). labor rights and fair trade in the cocoa industry. .One of the largest food manufacturers in the world. Some of their more interesting initiatives include: running Disneyland trains on biodiesel made with cooking oil from the resort's hotels. establishing a worldwide conservation fund and instituting a "green standard" for all employees and cast members. Despite its age.

. We reduced our customer returns on defective merchandise to 1. bringing the total to just over 757.000 farmers into our Direct Farm program in 2010. or approximately 3.76 percent globally.S. Michael T. 73 percent of the total pounds of wild fish and farmed seafood sold at WalMart U. Wal-Mart redirected 81 percent of waste in California.61 percent reduction in our greenhouse gas (GHG) emissions from its 2005 base of stores.000. Duke. globally. President and CEO .• • • • • • • • An absolute 10. by the end of 2009 119 factories in China have demonstrated greater than 20 percent improved in efficiency compared to 2007 baseline.95 million pounds. Plastic bag waste was reduced by 47. • Wal-Mart China successfully engaged more than 470.S. In the U.5 billion bags. More than 94 percent of direct import factories have received one of our two highest audit ratings. Wal-Mart de México reduced water use by 17 percent compared to 2008 baseline. and Sam's Club was certified.

71) Kanwar Pal Singh (Roll No – 74) Mandavi Sharma (Roll No – 76) Gordhan Meghwal (Roll No .Thank you MBA(PT)2011-14 -SEC B-Group:5 Deepak Bal (Roll No – 67) Harmeet Si Bhatia (Roll No .106) .