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Corporate Social Responsibility
To develop the knowledge base of students in developing sustainable corporate practices to address social responsibilities towards stakeholders.
To sensitize students to social and environmental realities affecting business and its consequential impact on profitability and sustainability of the company To orient and update the students about the strategies used by business organizations to integrate CSR in their major business operations
Evaluation Criteria: Presentation: 20 Marks Mid-term examination: 30 marks Trimester-end Examination: 50 marks .
COURSE OUTLINE y y Global Development Scenario.Developed Nations v/s Developing and Under developing Nations Social issues directly impacting financial sector Role of financial institutions in achieving sustainability .
COURSE OUTLINE y Millennium Development Goals and Business involvement to achieve the same. What are the responsibilities of Business Role of socially responsible investing .
COURSE OUTLINE Arguments for & Against CSR Typology of Stakeholders in Business and their importance Conceptual Clarity of CSR and paradigm shift in CSR Difference between Philanthropy and Strategic Philanthropy .
COURSE OUTLINE Generations of CSR Drivers for CSR Theories of CSR Approaches to CSR Class Activity: Case: Banco Real: Banking on Sustainability .
Environment & Community . Marketplace.COURSE OUTLINE Responsibilities of Business at Workplace.
Employment Practices etc & its implications Sexual Harassment at Workplace . R& D. Land usage.COURSE OUTLINE Human Rights in Business Philosophical and legal foundations of human rights Peculiarities of specific cultures and minimum standards of human rights Relationship of civil and political rights vis-avis economic and social rights Violations of Human Rights in BusinessMarketplace.
COURSE OUTLINE Strategies to Protect Human Rights by Business Integrating human rights in finance sector Human rights responsibilities of financial institutions Economic crisis & human rights initiatives .
Clause 49 Governance for Unlisted Companies / Banks .COURSE OUTLINE Corporate Governance Genesis & Conceptual Clarity International Developments Why an Imperative in India Role of SEBI.
COURSE OUTLINE Role of Board & Responsibilities of Independent Directors Initiatives by RBI for strengthening corporate governance in banks Economic impact of corporate governance practices Class Activity: Case: Rogue Trader at Daiwa Bank .
measuring and reporting CSR Strategies for implementing CSR Need for Monitoring & Measurement of CSR Monitoring Tools Global Sullivan Principles. Monitoring.COURSE OUTLINE Role of NGOs. . Government & Cross sector Partnership Implementing .
Equator Principles Certifications in CSR. UN Global Compact. ISO 14. Global Reporting Initiative & Internal Reporting Social Investment & Impact of CSR on Investment .0000 Rating Indices for Investors.SA 8000. AA1000. FTSE4.Dows Sustainability Index.COURSE OUTLINE OECD Guidelines.
External (Trimester-end Examination) .Evaluation 50% -.Internal 50% -.
Internal Presentation: 20 Marks Mid-term examination: 30 marks .
DOING GOOD Corporate Citizenship Corporate Philanthropy Corporate Giving Corporate Community involvement Societal Marketing Community Relations Community Affairs Community Development Global Citizenship Corporate Social Responsibility .
Common Phrases Corporate Philanthropy Corporate Citizenship Corporate social responsibility .
including cash contributions.Corporate Philanthropy Those activities that companies voluntarily undertake to have a positive impact on society. contributions of products and services. volunteerism. and other business transactions to advance a cause or an issue Donating money and other corporate resources to social causes It may or may not tangibly benefit the organization in the long run .
. apart from economic and financial responsibilities to its shareholders. a company has duties and responsibilities that come with being a member of a community in which it seeks a licence to operate.Corporate Citizenship Corporate citizenship recognises that.
preventing environmental harm. ecosystems. treating employees responsibly. ensuring that marketing statements are accurate. ensuring the safety of employees. enforcing good conduct from suppliers. customers. including employees. Examples include operating ethically. supporting efforts to stop corruption. high-quality products. and delivering safe. championing human rights. communities. and suppliers. Work to minimize the negative consequences of business activities and decisions on stakeholders. shareholders. .Core principles that define the essence of corporate citizenship Minimize harm.
paying fair wages. economic development for lowincome communities. Examples include participating voluntarily to help solve social problems (such as education. ensuring stable employment. and producing a product with social value . youth development. health. Contribute to societal and economic well-being by investing resources in activities that benefit shareholders as well as broader stakeholders. and workforce development).Core principles that define the essence of corporate citizenship Maximize benefit.
and listen to and communicate with stakeholders. produce social reports assured by third parties.Core principles that define the essence of corporate citizenship Be accountable and responsive to key stakeholders. operate according to a code of conduct. Create mechanisms to include the voice of stakeholders in governance. Build relationships of trust that involve becoming more transparent and open about the progress and setbacks businesses experience in an effort to operate ethically. .
. Corporate citizenship values are regarded as strategic assets supporting market trust and business networking.Core principles that define the essence of corporate citizenship Support strong financial results. The responsibility of a company to return a profit to shareholders must always be considered as part of its obligation to society.
and sustainable development of natural resources. mitigating or remedying operational harm.Corporate Social Responsibility Obeying the letter and spirit of the law. .
Corporate Social Responsibility Achieving commercial success in ways that honor ethical values and respect people. commercial and other expectations society has for business. . communities. ethical. and making decisions that fairly balance the claims of all key stakeholders. Addressing the legal. and the natural environment.
operations and supply chains.Corporate Social Responsibility Companies that consciously integrate strategies that seek to maximize the creation of environmental and social value within their core business models. .
DIFFERENCE GOOD COMPANY Excellent Products & Services GREAT COMPANY Excellent Products/services & Makes the world a better place .
3 mile long ice berg noticed near South Island.000 people died in the heat-wave across western Europe.Mercury soared 5` C above normal and at least 35. New Zealand . It was hottest August.Some Indicators of Natural Changes 2003 Europe Baking -.
..An iceberg drifts off the coast . .
Some Indicators of Natural Changes 2004 ±Desert Snow ± snow fell over the UAE for the first time ever (Mountains of Ras alKhaimah near Dubai) Grass found on Antarctica .
Desert Snow ± (Mountains of Ras al-Khaimah near Dubai) .
Grass (Deschampsia Antarctica) .
US Stormed ± Katrina and Rita made it one of the worst hurricane seasons in North Atlantic.Some Indicators of Natural Changes 2005 ± Mumbai Deluge ± a whopping 942 mm of rains on July 26. Previous single-day record was 838 mm in 1912. .
Mumbai Flooding 2005 .
Hurricane Katrina .
Snowfall in Johannesburg.1 in 1928. .Some Indicators of Natural Changes 2006 Oz & Ashes ± Sydney had its hottest New Year¶s Day with mercury hitting 45`C ± the previous warmest was 38. Europe in the grip of heat wave once again.
Wild fire outside Sydney .
a rare snowfall in Johannesburg .
2-metre tidal wave hits Jakarta Half the city under water Due to climate change and excessive mining .Some Indicators of Natural Changes 2007 : 2.
Flooding as tidal waves hit Jakarta .
Images from NASA satellites show that the area of permanent ice cover is contracting at a rate of 9 percent each decade. summers in the Arctic could become ice-free by the end of the century. .Some Indicators of Natural Changes 2008 : Global Warming Puts the Arctic on Thin Ice The polar ice cap as a whole is shrinking. If this trend continues.
Global Warming Puts the Arctic on Thin Ice
2009 Typhoon in Taiwan
2009 Typhoon in Taiwan
Eastern Europe and European Russia. Middle East. June 2010 marked the fourth consecutive warmest month on record globally .Heat Wave 2010: The heat wave during the summer of 2010 was at its worst in June over the eastern United States. and over Northeastern China and southeastern Russia.
2010 Floods in Pakistan and North India .
Andaman and Lakeside Islands. .Future Bangladesh smaller and vanishing of countries like Maldives Deserts in Europe Penguins on thin ice and some species may disappear Mt. Mauritius. Kilimanjaro (Tanzania) Ice projected to disappear completely by 2020 Coral reef bleaching in Seychelles. Great Barrier Reef.
Low lying areas of Bangladesh .
Turning into .
Penguins on thin ice .
Penguins on thin ice .
Kilimanjaro -then .Mt.
Kilimanjaro .Now .Mt.
Coral reef .
Coral reef bleaching .
bottom image was taken in 2000.A comparison of the size of Grinnell Glacier. The top image was taken in 1911. .
(Green Land) .Icebergs from the rapidly moving glaciers of Disko Bay.
.Dry lake during drought in Orlando Florida.
Many species of flora and fauna will become extinct. .Impact on India Warmer climates will result in lower rice and wheat yields. rivers will turn into trickles. Shrinking of Himalayan glaciers ± Short term danger is floods and in the long term. Rainfall could decline by 5 to 25% leading to droughts. Increase in pest population.
India¶s Progress Democratic Political System Development of Indian economy LPR to LPG Free Press and electronic media Mass calamities have been faced effectively Improvement in Standard of living .
India has been making progress on a scale. and a vibrant democracy. diverse regions.India Country Overview World Bank With some 1. the country has been successful on a number of fronts: . In the nearly 60 years since its independence. size and pace that is unprecedented in its own history.2 billion people.
telecommunications. business process outsourcing.Overview India has maintained electoral democracy Banished the specter of famines Reduced absolute poverty by more than half Dramatically improved literacy Vastly improved health conditions Become one of the world¶s fastest growing economies with average growth rates of 8% over the past three years Emerged as a global player in information technology. and pharmaceuticals .
3. 2. Improving the Delivery of Core Public Services Making Growth More Inclusive Sustaining Growth .Challenges 1.
learning outcomes have yet to make more headway. Improving the Delivery of Core Public Services Education: While India has made huge progress in getting more children into primary school.1. .
. Improving the Delivery of Core Public Services Health: Although population growth has fallen below 2% per year due to declining fertility. And.1. there has been little improvement in maternal mortality. despite the fall in child mortality. these rates remain high as they are strongly related to child malnutrition where little progress has been made.
transportation systems and ports are facing huge demands from India¶s rapidly growing economy. particularly export-oriented manufacturing which has the potential to absorb India¶s fastgrowing working population. roads. . Improving the Delivery of Core Public Services Infrastructure: Power networks. shortages are eroding the country¶s competitiveness and hurting the growth of labor-intensive enterprises. But.1.
. and evidence of social unrest in some disadvantaged regions is growing.2. Making Growth More Inclusive Substantial disparities persist within the country: Disparities between urban and rural areas Prosperous and lagging states Skilled and low-skilled workers Inequality can have huge social costs.
and excessive regulation. rudimentary market infrastructure. Making Growth More Inclusive Agriculture: Slow agricultural growth is a concern as some twothirds of India¶s people depend on rural employment for a living.2. Current agricultural practices are neither economically nor environmentally sustainable India's yields for many agricultural commodities are low. Farmers' access to markets is hampered by poor roads. Poorly maintained irrigation systems and almost universal lack of good extension services are among the factors responsible. .
some 90% of India¶s labor force remains trapped in low productivity informal sector jobs.2. . Making Growth More Inclusive Jobs: While the services sector has promising job opportunities for skilled workers.
Assam. Madhya Pradesh. . and Uttar Pradesh . Orissa. its poorer states . Jharkhand.have not kept pace and are lagging behind their more prosperous counterparts. While India¶s higherincome states have successfully reduced poverty to levels comparable with richer Latin American countries. Bihar.2. Making Growth More Inclusive Lagging States: Faster economic growth has seen rising inter-state disparities. Rajasthan. Chhattisgarh.
3. Sustaining Growth Maintaining high growth will also require attention to some basics: Fiscal deficit Trade Deficit Ongoing Reform .
3. further improvements will be needed to reduce risks to fiscal stability and. to create the space to fund the country¶s large infrastructure needs and ambitious social development programs. Sustaining Growth Fiscal deficit: While the country has improved its fiscal indicators recently. . more importantly.
its low levels of external debt. . India¶s vulnerability to an external crisis remains limited due to its large foreign exchange reserves which touched almost US$ 285 billion on Jan 18. Nevertheless. 2008 . Sustaining Growth Trade Deficit: The trade deficit is large and has widened due to high oil prices and increased non-oil imports.3. and buoyant exports of services.
as international experience shows that the recipe for slow growth is complacency about pushing ahead with reforms in times when growth is high.3. Sustaining Growth Ongoing Reform: Redoubling of reforms that address the basic constraints to growth is essential. .
Priorities Public sector services reform Infrastructure Agricultural and rural development Labor regulations Lagging states HIV/AIDS Other strategic challenges .
.Public sector services reform: India¶s core public services such as healthcare. This will require systemic reform of the public sector service providers. education. water supply and transportation need urgent improvement. implementing effective systems of accountability to citizens. and expanding the role of non-state service providers. power. decentralizing responsibilities.
the relative roles of the government and private sector need to be defined.Infrastructure: India needs to invest an additional 3-4% of GDP on infrastructure to sustain its current levels of growth and to spread the benefits of growth more widely. Although this will clearly require a government role. Policies that encourage competition can be strengthened. .
. The bright spot on the horizon is that the private sector is now looking at the rural areas as a potentially important market and is increasing its investments accordingly. thereby opening up new opportunities for Indian farmers.non-farm entrepreneurship.Agricultural and rural development: Raising agricultural productivity requires a return to investments in agricultural technology and infrastructure. Getting the rural economy moving will also require facilitating rural . Encouraging policies that promote competition will also ensure farmers receive better prices.
Better designed labor regulations can attract more labor.intensive investment and create jobs for India¶s unemployed millions and those trapped in poor quality jobs.among the most restrictive and complex in the world .Labor regulations: India¶s labor regulations . Given the country¶s momentum of growth. the window of opportunity must not be lost for improving the job prospects for the 80 million new entrants who are expected to join the work force over the next decade. .have constrained the growth of the formal manufacturing sector where these laws have their widest application.
Reforming cumbersome regulatory procedures. and providing rural finance are important.Lagging states: Lagging states need to bring more jobs to their people by creating an attractive investment destination. . establishing law and order. improving rural connectivity. creating a stable platform for natural resource investment that balances business interests with social concerns.
HIV/AIDS: India has one of the largest numbers of HIV infected populations anywhere in the world. it remains acutely at risk of a growing epidemic. at less than one percent. . Although the prevalence rate is low.
Other strategic challenges: Adapting to increasing water scarcity Improving energy efficiency and ensuring adequate energy supplies Adapting to climate change which could impact India more than most countries Coping with accelerating urbanization through strengthened urban governance Protecting India¶s fragile environment in the face of the rising pressures created by economic success Making India a driving force in technical innovation. .
2008): 9.1% Poverty (Below National Poverty Line) Rural: 28 % Urban: 26 % .0% GDP Growth (Govt. Estimates for 20082009): 7.Key Development Indicators GROWTH: Population Growth ( 2001.4% GDP Growth (2007.2007) : 1.
000 live births):450 Children Underweight (below 5 years): 46% .Key Development Indicators Fertility rate: 2.5 births per woman Life expectancy at birth: 64 years Infant mortality (per 1000 live births): 57 Maternal Mortality (per 100.
net: 90% Male Adult literacy (age 15 and older): 73% Female Adult literacy (age 15 and older): 48% Access to improved water source (% of pop): 89% Access to improved sanitation: 33% .Key Development Indicators Primary school enrollment.
The INDIA you may not know .
Indians are young. population increase 1.000 schools. China has 18. . 29 million people are born every year.8%. India has 9. 90 to 94% drop out rate of children (including those who never went to school) between kindergarten and 10 + 2.000.India 71% or 770 million people are below 35 years of age.70.00. 10 million die per year.
600 colleges are Arts graduates. Balance 28% in Science.T.India 6% or the ones that cross the 10 + 2 stage. (Educational ³Line of Control´) which is our so called educated youth. Law. Medical. I. 72% of all graduates from 15. Commerce. go in for a regular college degree which may not be very relevant in today¶s context for the sake of employment generation and National GDP enhancement. . Engineering. Management and special subjects..
India India has 372 universities. we in India have only identified about 71 trades. China has 900 & Japan has 4000.500 vocational education & training (VET) programs. a skill or a trade. after 60 years of Independence and hardly 2% of the population goes for formal VET training! . While 95% of the world youth between 15 to 35 years of age learn a vocation. with a choice of 2.
Software or I. China has 5.T.India India has 11. . We can get engineers in India but no carpenters. is the only exception. training centers.T.000 senior secondary vocational education and training schools. Perhaps because of 50.000 or more I. repairmen and other skilled personnel as per international standards! Information Technology. drivers.00.000 ITI¶s and VET schools.
For rapid economic growth and employment generation we need to concentrate on the balance 95% of the Economy & Enterprise and make it world class. & Software is only 1.India I. India¶s present share is about 5%.T.5% of the world¶s GDP. .
300 million unemployed/employable age and only 45 million have actually registered with employment offices with little or no hope of getting employment (our estimates) Of all new employment generated, 1% are Government jobs, 2% are in the Organized Sector and the balance 97% in the unorganized sector. Out of our 430 million workforce, 94% work in the unorganized sector and about 6% in the organized sector.
1.7% of the entire population, viz. 18 million people work for the Central & State Government; another 9 million work in the private organized sector, total 2.6%. All the Labour Laws are made to protect, at any cost, the above 2.6% of the Indian population. Article 311 of the Indian Constitution needs revision since it over protects employees of the Government even at a cost to the nation.
While MP¶s, MLA¶s and Municipal Councilors and the village Panchayats, can only be elected for a maximum of 5 years, the officials, babus and government employees enjoy life long benefits of employment, in spite of performance. 600 million illiterate people based on the international definition of the 3R¶s (reading, writing and arithmetic, education up to primary level) as per Government of India 63% literate. China is 93% literate.
14 (Urban) per day! (based on being able to buy enough rice and wheat from Public Distribution System/Ration Shops. . which has food value of 2200 K Cal. Per day). you are literate´. 11 (Rural) and Rs.India The Indian definition of literacy. nobody has seriously ever challenged this definition! 260 million live below the Government of India¶s definition of Poverty Line of Rs. ³If you can write your name.
How can one expect people to live with a few kilos of raw uncooked wheat or rice? As human beings don¶t we need more? How about one set of clothes to cover our bodies. some vegetables. a set of chappals for our feet. milk & fruit. in our diet? How will we cook without any energy and fuel? .India Nobody has ever challenged this definition of ³Poverty Line´.
. or US$ 365 per year. or US$ 730 per year. 700 million people below the poverty line definition of the World Bank¶s new definition of @ US$ 2 per day per person.India 450 million live below the poverty line definition of the World Bank¶s old definition of @ US$ 1 per day per person.
8%. as the foreign markets are 60 times bigger than the Indian market. Demands are high but buying power is low. down from 27% when the British landed in India and down from 3% in 1947.07 billion people and a GDP of US$ 648 billion). . Average earning of an Indian is US$ 1.India Average per capita of an Indian is about US$ 600 per year per person (l. India has only 1. Hence we will need to increase our export related activities by 10 times.72% of the World GDP and is 17% of the world population.65 per day. down from 33% 1000 years ago. Our share of world markets or foreign trade is 0.
. German etc. yet most websites of the Government of India.India Only 5% of Indians understand English.g.. e.. unlike the Chinese youth who are doing otherwise.. yet in India while we talk of Globalization. USA + UK + old British Colonies. we are not serious to learn the other languages of the world. State Governments and Public Institutions are in English! While English is a language used in countries which account for about 40% of the world GDP. viz. Japanese.
India is probable at the bottom of the heap, as far as the human development index is concerned such as infant mortality, child care, malnutrition, health, clean water etc.
Democracy is to the people, for the people, by the people. If we have to succeed the Citizen has to get involved and participate in Governance.
Unlike other countries, we have 18 official languages, 4,000 dialects, all the religions of the world and because of low human and economic development, emphasis on SC, ST, Dalits, caste, religion, sect, minorities, region, ethnic groups etc.
which do not encourage ³Labour Intensive´ enterprises. .India Employment generation is restricted due to existing policies. Relevant Labour Reforms in line with prevailing practices in other countries of Asia are required for a level playing field for Indian Organizations.
needs to be scrapped and SME¶s should be encouraged. . process. 99. They are decided by technology. To understand the meaning of ³E´ in SME. 90% of the Indian GDP is SME.7% of all organizations in the world are SME¶s. international market forces and competitive pressures.India The size of Enterprises cannot be decided by officials in the Central Government. Reservation for Small scale Industry. SSI¶s are 7% of the Indian GDP.
To improve Governance we need to ensure +95% of Literacy. a large number of active Citizen Groups and maximum use of The Right to Information Act! .loksatta.200 crores are spent every day.org about Rs. at the Central and State level.India As per www. 2. both on revenue as well as capital account in order to Govern INDIA.
The World .
often defines poverty. such as a $ 1 per day per person. .Poverty Living below a minimum level of income.
However. poverty is also lack of: Food Shelter Health Education Influence over decisions that affect one¶s life .
Our Planet Of the 6 billion people on our planet. 3 billion live in developing countries in conditions that fit those definitions of poverty .
The World Today more than 2.9 billion people ± nearly half of the world¶s population are under the age of 25 And one child dies every 5 second from hunger and related causes .
1. only 50 million people will be added to rich countries .The World Over next 25 years.5 billion people will be born in poor countries.
. Yet 184 million children aged 5-17 are in the labor market.The World Some 186 million adults and 88 million young people aged 15-24 are unemployed.
But there is hope«« .
The number of people living on less than $1 a day fell ± even as the world¶s population grew by 1.6 billion over the past 20 years. adult illiteracy in the developing world has nearly halved. .The World Over the past 30 years.
.The World Over the last decade economic growth in the developing world has outpaced that in the developed countries.
on average life expectancy is only 49 years.Just a Comparison A child born in the top 20 countries can expect to live at least 80 years. . but if she or he happens to be born in one of the bottom 20 countries.
Just a Comparison In countries with the highest life expectancies a child born today can expect to live twice as long as child born in Swaziland or Zambia the countries at the bottom of the world¶s life expectancy ranking. .
virtually all adults can read and write but in some countries close to the bottom more than two in three adults are illiterate .Just a Comparison In countries at the top end of the Human Development Index ranking.
Just a Comparison Adult literacy levels among the top 20 countries are. on average double those in the bottom 20 (99 versus 46 per cent) and enrolment ratios are on average more than double (93 versus 43 per cent) .
International Efforts .
Domestic Efforts .