What is Corporate Social Responsibility?

´Every company harms the
environment!µ
(Just as an individual does)
Corporate Social Responsibility is thus only about two aspects: 1) Reducing the Negative Effects 2) Increasing the Positive Contributions

Triple Bottom Line and CSR

Did you know that«.
‡ A paper company manufactures paper from waste cloth to reduce the use of pulp from trees ‡ A Chemical manufacturer has protected the largest stretch of mangroves along Mumbai¶s coast ‡ A software company has developed a special call receiving software for 1098-Childline , India¶s national helpline for children in distress ‡ An FMCG company is working to protect and conserve endangered plant species in India through re-forestation programmes

How pity«.
‡ A construction company (in Mumbai) posted a 60 % profit in 2008 amounting to Rs.1400 cr. and did not do any activity to benefit society ‡ Don·t Drink and Drive is the CSR campaign of a leading company that makes alcoholic beverages ‡ A drug manufacturer in India provides gifts and vacations abroad to doctors who prescribe its products. ‡ A power generating company is the highest CO2 emitter in India

Actual Stakeholders of Companies
ENVIRONMENT

‡

GOVT. AGENCIES

‡

COMMUNITY/CITIZENS

COMPANY SHAREHOLDERS ‡ EMPLOYEES

CONSUMERS

SUPPLIERS

Results of the Karmayog CSR Rating 2008 of the 1000 largest Indian companies

Results of CSR Ratings 2008
of 1000 largest Indian Companies
Karmayog CSR Rating
Level 5 (highest) 4 3 2 1 0 (lowest) Total

Number of Companies
0 10 45 221 232 492 (no CSR) 1000

% of Companies
0% 1% 5% 22% 23% 49% 100%

Companies with the highest rating of Level 4
No Company .
1 2 3 4 5 6 7 8 ACC Ltd. Ballarpur Industries Ltd. HDFC Ltd. * Infosys Technologies Ltd. * Jubilant Organosys Ltd. Kansai Nerolac Paints Ltd. Moser Baer Ltd. Tata Consultancy Services Ltd.

Sector
Cement Paper Finance Software and ITES Pharmaceuticals Paints Hardware Software and ITES

9 Tata Steel Ltd. * Steel * Indicates companies that received a Level 4 rating in the Karmayog CSR 10 Titan Industries Ratings 2007 Watches & Jewelry Ltd. *

Minimum necessary parameters for different rating levels
If undertaking any CSR Activity If CSR is linked to reducing the negative impacts of company¶s own products or processes If CSR initiatives are for the local community If CSR is embedded in the business operations If innovative ideas and practices are developed for CSR Level 1 Level 2 Level 3 Level 4 Level 5

Note: - Companies that manufacture liquor, tobacco, genetically modified crops have been given a Level 0 rating The criteria stated above are only the minimum criteria needed to qualify for a particular rating; apart from this, there are other negative and positive criteria that are also applicable, and a combination of these determines the final rating.

Recent Trends in CSR-2008
Expectations of the stakeholders Government¶s Role Increasing awareness amongst consumers, management colleges and students Suppliers Responsibility Disclosure of social and environmental performance

Closing Statement«
‡ Enlightened businesses worldwide, small and large, have begun to realise that responsible practices enhance profitability and ensure long term survival. Companies not doing CSR will not survive ²it·s only a question of when ‡ For those companies which disrespect the environment or living beings, we, as responsible citizens, need to individually and collectively, reward or penalise them through our voices and our wallets.

Case study
‡ TATA STEELS

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1

Tata Steel: A Pioneering Enterprise

Tata Steel established in 1907 as a Greenfield project in eastern India

Founded in the vision of Jamsetji Tata, a true nationalist

Corporate Social Responsibility in Indian industry traces its roots from him.

2

Corporate Social Responsibility Policy

³Tata Steel believes that the primary purpose of a business is to improve the quality of life of people. Tata Steel will volunteer its resources, to the extent that it can reasonably afford, to sustain and improve a healthy and prosperous environment and to improve the quality of life of the people of the areas in which it operates.´

8

From Tradition To Process Areas of Impact Environment Employee Relations Stimulating Economic Growth Civic Amenities & Community Service Population Management Sports and Adventure Health for All Relief During Natural Calamities Education / Arts and Culture
9

³We generate wealth for the people. What comes from the people must, to the extent possible, therefore get back to the people.´
- Bharat Ratna, J R D Tata

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