Session-6

Prof. Muneza Kagzi

T. A. Pai Management Institute (TAPMI)
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 Contents

• Recap of the previous sessions

• CSR and Sustainable Business practices
• CSR in India
• Examples and discussion
• Challenges with CSR
• Summary 2
Is CSR and Sustainability is one and same?
https://www.menti.com/11a5u453b9
The digit code 63 68 28 3

Answer- Sometimes CSR and Sustainability can be one and same

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CSR vs. Sustainable Business Practices

CSR Sustainability

-Reactive measure
-Proactive measure
CSR often looks backward and reflects on what a
Corporate sustainability looks forward and
company has done to contribute to society
develops a sustainable strategy for the future.
-Focuses on opinion formers
- Focuses on value chain
The targets of CSR initiatives are often opinion
Corporate sustainability looks at the whole value
formers (e.g., media, politicians, and pressure
chain (i.e., everyone from end-consumers to
groups).
stakeholders).

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Similarity- CSR and Sustainable Business Practices

• Both CSR and sustainability focus on helping companies run in a way that
allows them to be profitable without incurring harm
• Both aim towards creating positive impact
• Sustainability initiatives for the needy population is part of CSR and also
qualifies for sustainability
• Distribution of solar energy solutions at free of cost to poor people by SELCO company

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CSR
initiatives
by ITC

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ITC About- Conglomerate

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CSR Initiatives of ITC

E Chaupal

Women Empowerment

Primary Education

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How eChaupal works?
Sanchalak Samyojaks
Farmers (a trained farmer) Manages a ITC
Manages a kiosk warehouse

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 eChaupal
• Initiated in the year 2000 to directly link with farmers
• Kiosk with Internet access is run by a sanchalak — a trained farmer
• The computer is housed in the sanchalak's house and is linked to the Internet via phone lines or
by a VSAT connection
• Each installation serves an average of 600 farmers in the surrounding ten villages within about a
5 km radius.
• The sanchalak bears some operating cost but in return earns a service fee for the e-transactions
done through his e-Choupal.
• The warehouse hub is managed by the same traditional middle-men, now called samyojaks, but
with no exploitative power due to the reorganisation.
• There are 6,100 e-Choupals in operation in 35,000 villages in 10 states (Madhya Pradesh,
Haryana, Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Kerala, Maharashtra, Andhra Pradesh
and Tamil Nadu)
• Serves 4 million farmers

https://www.youtube.com/watch?v=tCtHEby8ugM 10
 Traditional Value Chain

Farmer Mandi ITC

Processing

Other buyers

Inbound Display and Bagging and Outbound

Auction Payment
logistics Inspection Weighing Logistics

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 Modified eChaupal Value Chain
Mandi Other buyers
Price
discovery
Farmer ITC Processing

eChaupal

Inbound Display and Bagging and Outbound

Auction Payment
logistics Inspection Weighing Logistics

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Which are the benefits of eChaupal?

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Outcomes of eChupal
• Win-win situation for farmers and ITC
• Farmers
• Competitive pricing
• Rise in farm yield
• Timely payment
• Improved standard of living
• Savings on transection cost (Compare to Mandi)
• ITC
• Timely raw materials
• Reputation
• Quality assurance

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Tata Motors- CSR
• Rs. 22 crores (Standalone) towards various schemes of CSR in FY
2018-19.

• Not eligible for CSR (not reported profit)

• https://www.youtube.com/watch?v=arSMxYZzGYs

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 RIL
• Rural Transformation, Health, Education, Sports for Development,
Disaster Response, Arts, Culture and Heritage, and Urban Renewal
• Project Jagruti
• A project to uplift and bring dyslexic students from the underprivileged
segment into the main stream
• Women and youth empowerment

https://www.ril.com/OurCompany/CSR.aspx#:~:text=Reliance%20provides%20affordable%20curative
%20and,various%20camps%20on%20health%20awareness

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Wipro
• Wipro has spent more than the prescribed CSR budget in the last
three financial years

• Education, Ecology, and Community Care.

• https://www.youtube.com/watch?v=o0Ur-JqQmvQ

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 The truth about CSR

Rangan, K., Chase, L. and Karim, S., 2015. The truth about CSR. Harvard Business Review, 93(1/2), pp.40-49.

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 The truth about CSR
Research question
How companies devise and execute CSR?
Method
In-depth interviews with managers, directors and CEO who are
directly or indirectly responsible for CSR
Findings
• Multifaceted version of CSR (Multiple avenues of investment)
• Less interested in integrating CSR with their business strategies and
vision

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Rangan, K., Chase, L. and Karim, S., 2015. The truth about CSR. Harvard Business Review, 93(1/2), pp.40-49.
(Amt. in ₹Crore) ₹ 123 ₹ 121₹ 123 ₹ 36
Development
₹ 157Sector wise break up of CSR Spend Education
₹ 160 ₹ 19
Health & WASH
₹ 165
1% 1%
1% 0% 0.22% 0.21% ₹ 18 Environment
2%
₹ 192 2%
2% Rural Development
2%
Women Empowernment
4%
PM Relief Fund
₹ 326 32%
Others

12% ₹ 2728 Sports Promotion

₹ 1017 Art & Culture
Slum development
Administrative Overheads
Swachh Bharat Kosh
1213
₹ 14%
Any Other fund
₹ 2246
Clean Ganga Fund
26% Contribution to Corpus
 Problems and concerns of CSR
Problems Concerns from companies Concerns from People

• No funding to the
• CSR initiatives are backward area
• Definition of CSR
disparate and (concentrated in few
• Mandate- requires
uncoordinated states)
documentation
• Many managers are • No consideration of
involved markets
• No incentive to be a part
of CSR team

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State wise CSR

www.crisil.com › 2020/06 › doing-good-in-bad-time

 • Rangan, K., Chase, L. and Karim, S., 2015. The
truth about CSR. Harvard Business Review,
References 93(1/2), pp.40-49.

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 Thank you

Thank you

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