CHAPTER I INTRODUCTION

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INTRODUCTION OF TOPIC
Corporate social responsibility (CSR) has variously been described as a motherhood issue (Ryan 2002, p. 02) the hot business issue o! the nou"hties (#lyth 200$, p. 0) and the tal% o! the to&n in corporate circles these days ('ees ( #onham 2004). )here seems to be an in!inite number o! de!initions o! CSR, ran"in" !rom the simplistic to the comple*, and a ran"e o! associated terms and ideas (some used interchan"eably), includin" corporate sustainability, corporate citi+enship, corporate social investment, the triple bottom line, socially responsible investment, business sustainability and corporate "overnance (,rime 'inister-s Community #usiness ,artnership). .t has been su""ested that some/researchers/distort the de!inition o! corporate social responsibility or per!ormance so much that the concept becomes morally vacuous, conceptually meanin"less, and utterly unreco"ni+able(0rlit+%y 200$)1 or CSR may be re"arded as the panacea &hich &ill solve the "lobal poverty "ap, social e*clusion and environmental de"radation (2an 'arre&i3% 200 ). Corporate Social Responsibility is the continuin" commitment by business to behave ethically and contribute to economic development &hile improvin" the 4uality o! li!e o! the &or%!orce and their !amilies as &ell as o! the local community and society at lar"e. )he study aims to detail the various corporate social responsibilities underta%en by 5r. Reddys lab !or the &el!are o! public. )he concept o! social licence is an abstract one, the interpretation o! &hich varies. )his is understandable in a corporate &orld "rapplin" &ith varyin" de"rees o! success &ith a ran"e o! concepts such as CSR, triple bottom line,

40

and socially responsible investment. 6o&ever, it is critical that corporations understand and embrace this relationship &ith the broader society in &hich they operate. 7 popular e*planation o! the term CSR is the continuin" commitment by businesses to behave ethically and contribute to economic development, &hile improvin" the 4uality o! li!e o! the &or%!orce and their !amilies as &ell as o! the local community and society at lar"e. 0ver the last years an increasin" number o! companies &orld&ide started promotin" their business throu"h Corporate Social Responsibility strate"ies because the customers, the public and the investors e*pect them to act sustainable as &ell as responsible. .n some cases, CSR is a result o! a variety o! social, environmental and economic pressures &hile some other cases many lar"e corporations, it is primarily a strate"y to divert attention a&ay !rom the ne"ative social and environmental impacts o! their lives. .t enables the company to levera"e its products, employee stren"th, net&or%s and pro!its and up to some e*tent to create a sustainable chan"e !or mar"inali+ed communities

40

TITLE OF TOPIC
)he topic is titled as 8Corporate Social Responsibility9 &ith speci!ic re!erence o! 5r. Reddys :aboratory

OBJECTIVE OF THE STUDY

)o underta%e a "eneral research on corporate social responsibility underta%en by 5r. Reddys :aboratory

)o study the contribution o! leadership and mana"ement practice in the area o! corporate social responsibility.

)o !acilitate the ac4uisition and dissemination o! %no&led"e about practice in corporate social responsibility.

SCOPE OF THE STUDY

'any o! the insi"hts and recommendations !rom this report may also be relevant !or local and national private sector en"a"ement1 ho&ever, the e*tent to &hich local and national private sector actors can contribute CSR is a topic that merits additional revie& 7 literature revie& has been complemented &hich provides insi"ht into the diversity o! CSR approaches and their implementation.

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LIMITATION OF THE STUDY

)his study is based upon the literature present ( secondary data only, so the study in itsel! is con!ined up to a certain e*tent.

5ue to paucity o! time and limits the CSR activities o! companies are described in short and there is a scope o! more detailed study.

)he comparison is based on the 4ualitative in!ormation. )here is not much in!ormation avai:aboratoryle on the CSR e*penditure o! company and its brea% up so the comparison is limited in its scope.

)here &as no interaction &ith any pro!essional o! the companies studied so study lac%s practical approach.

PERIOD OF STUDY
)he study &as conducted !or a duration o! 4 months i.e !rom ;uly 20< to 0ctober 20< .

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CHAPTER II PROFILE OF Dr. REDDYs LABORATORY

40

INTRODUCTION - DRREDDY LABORATORIES

5r. Reddys :aboratories &as !ounded by 5r 7n3i Reddy, an entrepreneur=scientist, in <>?4. )he 5@7 o! the company is dra&n !rom its !ounder and his vision to establish .ndias !irst discovery led "lobal pharmaceutical company. .n !act, it is this spirit o! entrepreneurship that has shaped the company to become &hat it is today. 5r 7n3i Reddy, havin" moved out o! Standard 0r"anics :imited, a company he had success!ully co=!ounded, started 5r. Reddys :aboratories &ith A 40,000 in cash and A<20,000 in ban% loanB )oday, the company &ith revenues o! Rs.2, 42C crore (DS A$4E million), as o! !iscal year 200E, is .ndias second lar"est pharmaceutical company and the youn"est amon" its peer "roup. )he company has several distinctions to its credit. #ein" the !irst pharmaceutical company !rom 7sia ,aci!ic (outside ;apan) to be listed on the @e& For% Stoc% G*chan"e (on 7pril <<, 200<) is only one amon" them. 7nd as al&ays, 5r. Reddys chose to do it in the most di!!icult o! circumstances a"ainst &idespread s%epticism. 5r. Reddys came up trumps not only havin" its stoc% oversubscribed but also becomin" the best per!ormin" .,0 that year.

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5r. 7n3i Reddy is &ell %no&n !or his passion !or research and dru" discovery. 5r. Reddys started its dru" discovery pro"ramme in <>> and &ithin three years it achieved its !irst brea%throu"h by out licensin" an anti=diabetes molecule to @ovo @ordis% in 'arch <>>C. Hith this very small but si"ni!icant step, the .ndian industry &ent throu"h a paradi"m shi!t in its ima"e !rom bein" %no&n as 3ust copycats to innovatorsB )hrou"h its success, 5r. Reddys pioneered dru" discovery in .ndia. )here are several such in!lection points in the companys evolution !rom a bul% dru" (7,.) manu!acturer into a vertically inte"rated "lobal pharmaceutical company today. )oday, the company manu!actures and mar%ets 7,. (#ul% 7ctives), Iinished 5osa"es and #iolo"ics in over <00 countries &orld&ide, in addition to havin" a very promisin" 5ru" 5iscovery ,ipeline. Hhen 5r. Reddys started its !irst bi" move in <>?E !rom manu!acturin" and mar%etin" bul% actives to the domestic (.ndian) mar%et to manu!acturin" and e*portin" di!!icult=to=manu!acture bul% actives such as 'ethyldopa to hi"hly re"ulated overseas mar%ets, it had to not only overcome re"ulatory and le"al hurdles but also battle deeply entrenched mind=set issues o! .ndian ,harma bein" seen as producers o! -cheap- and there!ore lo& 4uality pharmaceuticals. )oday, the .ndian pharma industry, in star% contrast, is %no&n "lobally !or its proven hi"h 4uality=lo& cost advanta"e in deliverin" sa!e and e!!ective pharmaceuticals. )his transition, a tou"h and o!ten=perilous one, &as made possible than%s to the pioneerin" e!!orts o! companies such as 5r. Reddys. )oday, 5r. Reddys continues its 3ourney. :evera"in" on its :o& Cost, 6i"h .ntellect advanta"e. Iorayin" into ne& mar%ets and ne& businesses. )a%in" on ne& challen"es and "ro&in" stron"er and more capable. Gach !ailure and each success rene&in" the sense o! purpose and helpin" the company evolve. 40

Hith over >$0 scientists &or%in" across the "lobe, around the cloc%, the company continues its relentless march !or&ard to discover and deliver a brea%throu"h medicine to address an unmet medical need and ma%e a di!!erence to peoples lives &orld&ide. 7nd &hen it does that, it &ould only be the be"innin" and yet it &ould be the most important step. 7s :ao )+u &rote a lon" time a"o, Gven a <000 mile 3ourney starts &ith a sin"le step.

OVERVIEW
5r. Reddys be"an as an 7,. manu!acturer in <>?4, producin" hi"h=4uality 7,.s to !irst the .ndian, and later, the international mar%ets. .n <>?C, &e started our !ormulations operations and, a!ter becomin" a !orce to rec%on &ith in the .ndian !ormulations mar%et, &ent international in <>><. )oday, our value proposition to our customers derives !rom an optimal operatin" system in &hich operations, product development and mar%etin" ( sales are !ully inte"rated. 0perations and the supply chain are ali"ned to ensure hi"h availability, pull based replenishment o! products at the retail level and superior inventory turns to our customers. )his advanta"e is combined &ith a hi"hly e!!ective prescription "eneration detailin" e!!ort. 7 !ield !orce o! over 2C00 motivated and %no&led"eable representatives supported by an inte"rated net&or% o! bac%=end services and armed &ith handheld devices !or 4uic% in!ormation access add value to every customer call and interaction.

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5r. Reddys = .ndia today is more than a 200 million dollar venture &ith presence in almost all ma3or therapeutic areas. 0ur !inished dosa"e business in .ndia started in <>?E &ith launch o! @orilet (nor!lo*acin). 0ur mar%et penetration throu"h nearly 000 sales !orce &ho connect to more than ,00,000 doctors on a re"ular basis has yielded us reachin" all corners o! the country and providin" a!!ordable and innovative medicines in all ma3or therapeutic areas li%e "astro=intestinal, oncolo"y, pain mana"ement, cardiovascular, dermatolo"y, diabetes, etc. Gi"ht o! our brands !eature in the top= 00 brands in .ndia that include dru"s li%e Stamlo, Reditu*, 0me+ and Jetorol. 7lon"side the presence o! end=to=end pharmaceutical capabilities &ithin the or"ani+ation helps us cater customer and patient needs much more e!!ectively. 'edicines li%e !or any other "eo"raphy, &e manu!acture at our DSI57 approved !inished dosa"e !acility &ith utmost importance on 4uality and e!!icacy o! the dru"s. Recently &e have deepened our !ocus into the rural mar%ets in .ndia to ensure the e*pansion o! our reach. .n this initiative &e have collaborated &ith our CSR &in", 5r. Reddys Ioundation to help us reach the millions &ho are still a&ay !rom e!!ective treatment and availability o! the ri"ht medicines. 7part !rom manu!acturin" and distribution o! medicines &e also provide patient care throu"h our various initiatives li%e Sparsh, :i!e at your 5oorstep, etc. (&here patients are "iven !ree treatment and medicines), and educate and create a&areness amon" healthcare pro!essionals throu"h 5RI6G to cater to the millions &ho are in need o! proper treatment across the country.

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HISTORY

5r. J. 7n3i Reddy &as the Iounder=Chairman o! 5r. Reddys :aboratories :imited head4uartered in 6yderabad, .ndia. 6e &as born in )adepalli in Kuntur district o! 7ndhra ,radesh. 7!ter "raduatin" !rom #ombay Dniversity in #.Sc. ()ech) &ith speciali+ation in ,harmaceutical Science and Iine Chemicals, 5r. Reddy obtained his ,h.5 in Chemical Gn"ineerin" !rom @ational Chemical :aboratory, ,une. )hen came a stint at the state= o&ned .5,:, !ollo&in" &hich he became an entrepreneur and !ounded Dr. Reddys L !"r #"r$es in <>?4. Dnder 5r. Reddys leadership the company has evolved into a pioneer in the .ndian ,harmaceutical space.

5r. Reddys passion !or research had led Dr. Reddys L !"r #"r$es to ta%e up basic dru" discovery research in <>> , thereby becomin" the !irst pharmaceutical company in .ndia to do so. 5r. Reddys mission &as to provide innovative ne& medicines !or healthier lives, at a price the common man can a!!ord. 5r. Reddy &as also the !ounder o! 6yderabad based .nstitute o! :i!e Sciences, a public=private partnership &ith the Kovernment o! 7ndhra ,radesh !ocused on cuttin" ed"e research in :i!e Sciences. 7 humanitarian, 5r. Reddys &or% in the !ield o! outcome based institutionali+ed philanthropy is le"endary. 6is sustained e!!orts in this area have had a tremendous impact

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on improvin" the lives o! nearly $ million underprivile"ed people in .ndia, especially youth and children.

Hith the intent to &or% closely &ith the .ndian Kovernment and !ul!ill his vision o! a poverty=!ree .ndia, 5r. Reddy had set up @aandi Ioundation in <>>? as a ,ublic Charitable )rust. 0peratin" in multiple states, this is one o! the bi""est social enterprises in .ndia and provides clean drin%in" &ater and mid=day meals to children and !armers. Sa!e motherhood and ne&born care &ere very close to 5r. Reddys heart, &hich is &hy he had !ounded @.CG Ioundation, dedicated to&ards improvin" maternal health and combatin" in!ant and child mortality.

5r. Reddy served as a 'ember o! the ,rime 'inisters Council on )rade ( .ndustry, Kovernment o! .ndia. 6e &as a Iello& o! the .ndian @ational 7cademy o! Gn"ineerin" and the Chairman o! 7ndhra ,radesh .ndustrial 5evelopment Corporation (7,.5C). 6e &as also the ,resident o! )he .ndian ,harmaceutical 7lliance and had served as a #oard 'ember o! K7.@, S&it+erland (Klobal 7lliance !or .mproved @utrition and a #oard o! 5irector !or )# 7lliance, @e& For% (Klobal 7lliance !or )# 5ru" 5evelopment).

5r. Reddy &as a recipient o! several national and international reco"nitions and :i!etime 7chievement 7&ards. .n 7pril 20<< the Kovernment o! .ndia honored him &ith ,adma #hushan (the third hi"hest civilian a&ard in the country) !or his contribution to the .ndian ,harmaceutical industry.

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CHAPTER III MEANIN% AND IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY

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CORPORATE SOCIAL RESPONSIBILITY

&C"r'"r #e S"($ ) Res'"*s$!$)$#y $s #+e ("*#$*,$*- ("..$#.e*# !y !,s$*ess #" !e+ /e e#+$( ))y *d ("*#r$!,#e #" e("*".$( de/e)"'.e*# 0+$)e $.'r"/$*- #+e 1, )$#y "2 )$2e "2 #+e 0"r32"r(e *d #+e$r 2 .$)$es s 0e)) s "2 #+e )"( ) ("..,*$#y *d s"($e#y # ) r-e& )he same report "ave some evidence o! the di!!erent perceptions o! &hat this should mean !rom a number o! di!!erent societies across the &orld. 5e!initions as di!!erent as &CSR $s !",# ( ' ($#y !,$)d$*- 2"r s,s# $* !)e )$/e)$+""ds. I# res'e(#s (,)#,r ) d$22ere*(es *d 2$*ds #+e !,s$*ess "''"r#,*$#$es $* !,$)d$*- #+e s3$))s "2 e.')"yees4 #+e ("..,*$#y *d #+e -"/er*.e*#& !rom Khana, throu"h to &CSR $s !",# !,s$*ess -$/$*- ! (3 #" s"($e#y& !rom the ,hillipines. #usiness and society have been coeval since time immemorial and also have been inter= dependant. )his relationship bet&een business and society is appreciated in Ri"veda also L 8Corporates should &or% li%e a honeybee, &hich ta%es the nectar o! a !lo&er &ithout the !lo&er bein" losin" its shape and !ra"rance and provides honey !or the &ellbein" o! the society.9 .t means that both have to &or% on a symbiosis manner !or each ones survival and success. )he business history is replete &ith evidences to believe that business !lourishes only &here society thrives. 0n the contrary, business dies &hen society condemns and re3ects it. @o business can survive &ithout societal approval and sanction. )he inter= dependant nature o! relationship bet&een the business and the society is best illustrated by the mana"ement "uru ,eter 5ruc%er (<>$4) by the e*ample o! a ship and sea. 6e states that the relationship bet&een business and society is 5)$3e #+e re) #$"*s+$' !e#0ee* s+$' *d

#+e se 0+$(+ e*-$rds $# *d ( rr$es $#4 0+$(+ #+re #e*s $# 0$#+ s#"r. *d s+$'0re(34 0+$(+ + s #" !e (r"ssed !,# 0+$(+ $s ye# )$e* *d d$s# *#.6 @o doubt, business has been

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conducted primarily to earn pro!it and M or create &ealth. 6o&ever, there are reasons and evidences to believe that the mindless obsession &ith pro!it ma*imi+ation at any cost carried to any e*treme has led to spurt in sordid activities in business causin" harm to both the business and society and ultimately leadin" business to !lounder and !i++le out. Gnrons ,armalats, Dnion Carbide, and Horld.com are to name a !e& representin" e*amples o! such business collapses. #usiness history is also replete &ith e*amples that only the businesses that are conducted throu"h "ood or ri"ht practices en3oy societal sanction and survive and last !or lon". ;ohnson ( ;ohnson, 'aruti :imited, Reliance .ndustries :imited, and )ata .ron and Steel Company are such e*amples that indicate that bein" "ood in conductin" business activities proves "ood !or businesses also. 6ence, there has been increasin" concern !or conductin" business in a "ood or ethical manner. )hou"h there has been a spurt in research activities on business ethics or ethics in business, not much research has so !ar been conducted on &hat actually ma%es business ethics and ho& bein" ethical or "ood is "ood !or business also. Corporate social responsibility (CSR, per!ormance, also called corporate responsible conscience, corporate businessM Responsible

citi+enship, social

or sustainable

#usiness) is a !orm o! corporate sel!=re"ulation inte"rated into a business model. CSR policy !unctions as a built=in, sel!=re"ulatin" mechanism &hereby a business monitors and ensures its active compliance &ith the spirit o! the la&, ethical standards, and international norms. .n some models, a !irm-s implementation o! CSR "oes beyond compliance and en"a"es in Nactions that appear to !urther some social "ood, beyond the interests o! the !irm and that &hich is re4uired by la&.N CSR is a process &ith the aim to embrace responsibility !or the company-s actions and encoura"e a positive impact throu"h its activities on the environment, consumers, employees, communities, sta%eholders and all other members o! the public sphere &ho may also be considered as sta%eholders. 40

)he term Ncorporate social responsibilityN came into common use in the late <>E0s and early <>C0s a!ter many multinational corporations !ormed the term sta%eholder, meanin" those on &hom an or"ani+ation-s activities have an impact. .t &as used to describe corporate o&ners beyond shareholders as a result o! an in!luential boo% by R. Gd&ard Ireeman, Strate"ic mana"ementL a sta%eholder approach in <>?4.

,roponents ar"ue that corporations ma%e more lon" term pro!its by operatin" &ith a perspective, &hile critics ar"ue that CSR distracts !rom the economic role o! businesses. 'cHilliams and Sie"el-s article (2000) published in Strate"ic 'ana"ement ;ournal, cited by over <000 academics, compared e*istin" econometric studies o! the relationship bet&een social and !inancial per!ormance. )hey concluded that the contradictory results o! previous studies reportin" positive, ne"ative, and neutral !inancial impact, &ere due to !la&ed empirical analysis. 'cHilliams and Sie"el demonstrated that &hen the model is properly speci!ied1 that is, &hen you control !or investment in Research and 5evelopment, an important determinant o! !inancial per!ormance, CSR has a neutral impact on !inancial outcomes.

.n his &idely=cited boo% entitled 'is"uided 2irtueL Ialse @otions o! Corporate Social Responsibility (200<) 5avid 6enderson ar"ued !orce!ully a"ainst the &ay in &hich CSR bro%e !rom traditional corporate value=settin". 6e 4uestioned the Nlo!tyN and sometimes Nunrealistic e*pectationsN in CSR.

Some ar"ue that CSR is merely &indo&=dressin", or an attempt to pre=empt the role o! "overnments as a &atchdo" over po&er!ul multinational corporations. 40

CSR is titled to aid an or"ani+ation-s mission as &ell as a "uide to &hat the company stands !or and &ill uphold to its consumers. 5evelopment business ethics is one o! the !orms o! applied ethics that e*amines ethical principles and moral or ethical problems that can arise in a business environment. .S0 2E000 is the reco"ni+ed international standard !or CSR. ,ublic sector or"ani+ations (the Dnited @ations !or e*ample) adhere to the triple bottom line ()#:). .t is &idely accepted that CSR adheres to similar principles but &ith no !ormal act o! le"islation. )he D@ has developed the ,rinciples !or Responsible .nvestment as "uidelines !or investin" entities.

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CHAPTER IV MEANIN% AND IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY

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CORPORATE SOCIAL RESPONSIBILITY INITIATIVES OF Dr. REDDYs LABORATORY

Hhile -SustainabilityL )he )riple #ottom :ine- as a term may have a contemporary rin" to it, the spirit underlyin" it has been relevant throu"h the a"es. .n <>?C, the Horld Commission on Gnvironment and 5evelopment (established by a resolution o! D@ Keneral 7ssembly) de!ined sustainability as "5evelopment &hich meets the needs o! the present &ithout compromisin" the ability o! !uture "enerations to meet their o&n needs". .t also populari+ed the use o! this term !or resources rene& ability, desired business plan and a pro"ressive &ay o! doin" thin"s. 7t 5r. Reddy-s, belie! is that any hi"h per!ormance sustainable or"ani+ation rests on the three pillars o! economic, social and environmental per!ormance. )o be a truly sustainable or"ani+ation, in the broadest de!inition o! its terms, an or"ani+ation must per!orm &ell across all three dimensions. 7s a company, they are !ully committed to the principles o! sustainability. )hey see the s# 3e+")ders s s+ re+")ders, to &hom &e promise sustained economic per!ormance, #+e s"($e#y = to &hom &e promise to create positive impact throu"h our activities both business as &ell as voluntary = and !inally #+e e*/$r"*.e*#, &hich &e promise &ill be &ell protected and enriched !rom our various activities. .n reco"nition o! the conviction that the prosperity o! communities is inte"ral to the success o! companies, Social .nitiatives is hi"her on the a"enda o! more companies no& than ever be!ore.

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7t 5r Reddys, &e ta%e pride in the !act that our products and &hat they are intended to achieve represent the core o! Social .nitiatives O to help people lead healthier lives. )he company achieves this ob3ective throu"h increased access and a!!ordability o! its "enerics, 7,. and branded "enerics products and addressin" unmet and undeserved medical needs by innovation throu"h its Specialty and @CG businesses. 7t 5r Reddys, Social .nitiatives represents an inte"ral component o! Corporate Social Responsibility. )heir investments in the communities have e*tended beyond the adhoc disbursement o! charity to a planned pro"ram in capability buildin", helpin" e*tend the sporadic to the sustainable. )he various or"ani+ations that &e support areL DR. REDDY FOUNDATION NAANDIFOUNDATION

DR. REDDYS FOUNDATION FOR HEALTH EDUCATION 7DRFHE8 CENTRE FOR SOCIAL INITIATIVE AND MANA%EMENT 7CSIM8

7t the company, Social .nitiatives does not 3ust cover the community, but also employees. )his re=interpretation has happened !or an important reasonL society represents a mi* o! employees and non=employees. #y includin" employees in our de!inition o! Social .nitiatives, the company has demonstrated that no initiative can succeed unless i! the initiators o! the improvement do not !i"ure amon" the bene!iciaries themselves. .t is this comprehensive address O employees to communities O that enhances the impact o! the companys social initiatives, stren"thenin" its case !or true sustainability.

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DR. REDDY FOUNDATION

7t 5r. Reddys &e believe that !or any development to be sustainable, people need to be empo&ered to support themselves in the !irst place. )he company also believes that in every human bein" and or"ani+ation there is a latent need to "ive bac% to society. .t is &ith this perspective that 5r. Reddy-s Ioundation &as incepted by 5r J 7n3i Reddy, Chairman o! 5r. Reddys :aboratories, in <>>E. )he Ioundation acts as a social chan"e catalyst that !osters, develops and promotes initiatives at individual M "roup M or"ani+ation levels to promote sustainable human and social development. #elievin" in the inherent motivation and capacity o! the human bein" !or pro"ress O "iven the appropriate and ade4uate environment = the Ioundation innovates and tries out novel concepts in pilot models that are continuously re!ined and scaled up to cover lar"er "roups o! deprived populations. :i!e . Research . 6ope = 5riven by this spirit, the company, led by the Chairman, 5r J 7n3i Reddy, called upon similar=minded corporates and created a ne& social plat!orm, a not=!or=pro!it development or"ani+ation that could sho&case not only to .ndia but the 40

international community as &ell, the depth o! corporate &ill in shoulderin" the responsibility o! !indin" solutions to lon"=pendin" social development problems o! the country. 5r. Reddys Ioundation (5RI) is a non=pro!it partner o! 5r. Reddys :aboratories and it-s interventions span t&o sectorsL

PL$/e)$+""ds9 )hrou"h a &ide array o! vocational trainin" pro"rams, 5RI addresses the issues o! employability, income "eneration and conse4uent improvement in 4uality o! li!e. 7s o! no&, the pro"ram has touched :4 ;<4=== )$/e)$+""ds.

P Ed,( #$"*9 5RI strives to provide various opportunities !or learnin" to those &ho have never been to school, or have dropped out o! it1 it also &or%s to improve the 4uality o! education in schools.

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NAANDI FOUNDATION

@aandi Ioundation &as created throu"h this e!!ort. .t is an autonomous, public trust that &or%s to"ether &ith "overnments, corporates and civil society to improve the lives o! the underprivile"ed.

)o underline the company-s commitment in supportin" @aandi-s ob3ectives, 5r J 7n3i Reddy became one o! its principal !ounders, and too% on the responsibility o! its Chairmanship as &ell.

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)he employees o! 5r Reddy-s too have been staunch supporters o! @aandi-s vision o! improvin" lives. )he company has de!ined -corporate "ivin"- by comin" !or&ard to donate unconditionally to @aandi-s social initiative pro"rams throu"h the ,o&er o! <0Q.

T+e P"0er "2 >=?

)he ,o&er o! <0Q is a mechanism created by @aandi that allo&s everyone to do their bit !or the society, even i! it is donatin" Rs <0 every month to&ards a cause. 7nd leadin" the &ay, they are proud to say, have been the company-s !actory &or%ers. )hey "ive "enerously to the ,o&er o! <0Q , &hich is channelised by @aandi into its education pro3ect, popularly %no&n as the -S,''"r# O,r S(+"")s- pro"ram, aimed at improvin" the 4uality o! education in over 2000 "overnment schools. )o encoura"e this culture o! "ivin" sho&cased by its employees, 5r. Reddy-s too ma%es a contribution to the ,o&er o! <0Q that matches the contributions made by the employees.

5r. Reddy-s has become a model that is bein" emulated by more and more corporates, institutions, and individuals thereby enablin" @aandi to become the plat!orm that allo&s !or an inter!ace bet&een civil society and the underprivile"ed.

Ior employees &ho &ant to do more, @aandi o!!ers several &indo&s o! opportunities to "ive bac% to the society. )hese ran"e !rom adoptin" "overnment schools, and

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volunteerin" in them to improve 4uality education, to participatin" in tribal development pro3ects. 5r. Reddy-s ne& recruits inevitably "et their !irst taste o! rural .ndia, every year, throu"h an 0utbound Rural Sensitivity )rainin", that is or"anised by @aandi.

7bility to "arner civil society support has propelled @aandi-s "ro&th and reach. .t is the only @K0 in the country to run automated central M$dd y .e ) %itchens in urban centres = the ones at 6yderabad and 2isa%hapatnam presently cater to around <200 "overnment schools. So !ar the %itchens have supplied 4$ million meals, &ithout any complaints, to the underprivile"ed that come to these schools. )his tas% "ets bi""er as @aandi tar"ets to implement this model !or the children o! $ other cities in the country by 200$. 7mon" its other innovations, @aandi has enabled the revival o! dead irri"ation assets by convertin" the small !armer into a micro=entrepreneur and brin"in" &ater bac% to more than 40,000 drou"ht =hit !amilies. #y creatin" sustainable and cost=e!!ective social entrepreneurship models @aandi is enablin" technolo"y trans!ers !rom )he :a&rence #er%eley @ational :aboratory, Cali!ornia , to brin" sa!e drin%in" &ater to .ndian villa"es. 7nd in %eepin" &ith its vision, @aandi continues to create ne& development brea%throu"hs in the areas o! health, education and livelihood that are bein" replicated by "overnments across the country to impact millions o! men, &omen and children in the country.

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DR. REDDYS FOUNDATION FOR HEALTH EDUCATION 7DRFHE8

5r. Reddys instituted the Dr. Reddys F",*d #$"* 2"r He )#+ Ed,( #$"* 7DRFHE8 &ith a vision to be a "lobally admired provider o! healthcare education.

5RI6G aims to create pro!essionals &ho &or% &ith the medical !raternity to o!!er an inte"rated, multi=disciplinary approach to "ood health.

)he ,ro"rams are aimed at buildin" necessary so!t s%ills &ith an ob3ective o! stren"thenin" the healthcare delivery system !or better patient care.

5RI6G has a vision o! to become a "lobally admired provider o! innovative healthcare vistas by ma%in" a di!!erence to >==4=== $*d$/$d, )s in the healthcare value chain by 20<2.

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7t 5r. Reddys, sustainability is a multi=dimensional aspiration, &hich has its roots in the very purpose o! e*istence = providin" a!!ordable medicines to people around the &orld and meetin" unmet medical needs throu"h innovation. )he business, by its very nature, serves a social "ood, so &e have a !ar deeper reason than pro!its alone to drive our per!ormance.

5r. Reddys Ioundation !or 6ealth Gducation (5RI6G) &as instituted to stren"then the healthcare delivery system.

5RI6G &or%s on 2 areas vi+.,

TRAININ% INITIATVES9 ,ro"rams aimed to brin" about a trans!ormation in N,atient CareN throu"h healthcare related so!t s%ill and li!e s%ill trainin" !or all healthcare sta%eholders. AWARENESS PRO%RAMS9 5isease a&areness !or corporate employees &ith an aim to preventin" li!estyle disorders.

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CENTRE FOR SOCIAL INITIATIVE AND MANA%EMENT 7CSIM8

Centre !or Social .nitiative and 'ana"ement (CS.'), an .nitiative under the ae"is o! 'anava Seva 5harma Samvardhani ('S5S), is a re"istered ,ublic Charitable )rust &ith 'r. ,.@.5evara3an as its !ounder and 'ana"in" )rustee. )he 6yderabad Chapter o! CS.', started in 2002, is supported by 5r.Reddy-s as CS.' !its 5r.Reddy-s concept o! social sustainability throu"h enhancin" community value throu"h their pro"rammes. Several social divides con!ront the .ndian society todayL their "ro&in" intensity and emer"in" ne&er ones ma%e the situation increasin"ly di!!icult.

Social Hor% education in the country does not prepare students !or such a challen"e = there!ore, the need !or pro!essional and entrepreneurial talent.

Compassionate individuals, &ho pitch in &ith noble intentions, have limitations in !indin" brea%throu"h solutions and thus add to the list o! non=per!ormin" and under= per!ormin" @K0s. )he environment thus presents an opportunity !or individuals &ith initiative and &ho can thin% o! bold and creative solutions to ma%e a si"ni!icant di!!erence throu"h concrete actions. )he challen"e is to discover and mould Social Gntrepreneurs, &ho can "enerate radical, path=brea%in" solutions to social divides, &ho can ta%e reasonable ris%s and persistently &or% to&ards creatin" a lastin" social impact. Similarly, small and medium 40

tier non="overnmental or"ani+ations (@K0s), &ith compassionate individuals as leaders, also need or"ani+ational s%ills to rechar"e themselves, re!ocus priorities and become impact=driven. )hey need a lon"=term approach to sustenance, creatively plan a revenue model and levera"e hidden resources includin" volunteer talent.

Ce*#re 2"r S"($ ) I*$#$ #$/e *d M * -e.e*# 7CSIM8 is a learnin" center that

Gnrolls, discovers and shapes Social Gntrepreneurs Supports the process o! social entrepreneurship in small and medium @K0s ,rovides a volunteer constituency to Social Gntrepreneurs and @K0s

7t CS.', the core activities are L S"($ ) E*#re're*e,rs+$' I*$#$ #$/e that is %no&led"e and involvement based and o!!ers learnin" in Social Gntrepreneurship. )he pro"rams areL

0ne year ,K diploma in Social .nitiative and 'ana"ement, Iour month part=time pro"ram in Social Gntrepreneurship 0utloo%, )rainin" !or volunteers &ho &ish to partner &ith Social Gntrepreneurs, Gntrepreneurship :earnin" club as an interactive net&or%in" plat!orm, .ncubation service to desi"n and deploy impact based social chan"e initiatives .nternship pro"ram !or the socially conscious Customi+ed mana"ement s%ill development pro"rams !or @K0s

V"),*#eer$*- I*$#$ #$/e4 &hich o!!ers short term and action oriented pro"rams !or socially conscious individuals, youth and &or%in" pro!essionals. Several plat!orms such as the Social 7ction Kroup, Student 2olunteer Consultin" pro"ram and Student=@on

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,ro!it G*chan"e pro"rams are operational &ith individual volunteers and also in partnership &ith colle"es, schools and corporates.

Ed,( #$"* - Pr"-r . O/er/$e0

7 conviction that poor are not poor but rich by a state and conscientious civil society and it is by accessin" those &ho had !ailed in "ettin" democratic institutions &or% !or them, &ith the institutions and standin" by them in reali+in" their constitutional ri"hts has been the motive !orce behind all &hat 5RI has been doin" since <>>C.

Gducation is more than attendin" schools, it decides ho& li!e &ould be and it relieves one !rom the circularity in li!e and it is the decidin" line that separates participants in the development !rom those &ho are le!t behind. )he very essentiality o! education ma%es it a !undamental ri"ht. 5RI choose to stand by the children, &ho are denied o! that ri"ht and ma%e every e!!ort possible to support them reali+e their ri"hts.

#esides underta%in" the pro"ramme o! mobilisin" children to school &e thou"ht it &ould be hal! hearted e!!ort unless &e address the issue o! 4uality education &hich is no less a ri"ht than accessin" school, &hich led us to ta%e up a pro"ramme o! partnerin" &ith schools in Secunderabad and 6yderabad

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districts in improvin" school processes, curriculum delivery mechanisms to ensure every pupil "et trained in curricular ob3ectives proclaimed by the "overnment. 0r"ani+ation had ta%en up several pro"rams to support youn" persons reclaim their education, 7#C centers mobili+e adolescent boys and "irls &ho are past their school a"e Kive them education, prepare them to complete Cth and <0th e*ams and let them ac4uire relevant Certi!ication to pursue their careers .5RI also !acilitates youn"sters to "et trained in the modern s%ills li%e communication and computers and e*pose them to various opportunities. 5r. Reddys are not duplicatin" the !unctions o! the "overnment, they are not playin" the role o! the state by presentin" alternative institutions1 conversely they are not &or%in" on behal! o! the communities &ho are deprived o! li!e-s opportunities to secure them services, &hat &e are consciously attemptin" is to prepare communities reali+e and articulate their ri"hts 7nd invest in the processes that !acilitate them access institutions.

Since education is the !ield o! activity they chose and mobili+in" communities throu"h a&areness campai"ns, !acilitatin" youth, parents and leaders o! the community to !orm Comities that loo% a!ter children-s schoolin" particularly en"a"ed in campai"ns a"ainst the system o! child labour that deprives children o! their ri"ht to education.

5r. Reddys have been &or%in" in close collaboration &ith the "overnment so as to sensiti+e them o! the needs and attendin" di!!iculties o! the communities in schoolin"

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their children and ,reparin" "overnment schools to "ro& into 4uality oriented company.

S. *"

Pr"-r ..e

N" "2 S(+"")s@ Ce*#ers

N,.!er P) (es C+$)dre* #alana"ar mandal, dt 2,C>2 (

"2

.nterventions < Kovernment

in $C Schools Ran"areddy 6yderabad Secunderabad <$ Schools

Schools .ntervention 2 )ribal Schools Jallam 7n3i < School Reddy 2idyalaya 2ocational 4 Colle"e 7dolescent #rid"e $ Course Short E 2ocational Course Sevalalna"ar Residential #rid"e C Course Center mandal #alana"ar Garly ? Centers ,radesh Childhood <> Centers Ran"areddy 5t 7ndhra <4E mandal, 2 Centers 'oosapet, #alana"ar C$ )anda, term < Center Ja&adi"uda, 6yderabad $0 C Centers 6yderabad ?$< < School 'adina"uda, 6yderabad 'adina"uda, 6yderabad <,400 in 2 schools Jhammam 2.R.,uram mandal, ,E

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L$/e)$+""ds LABS
5r. Reddys Ioundation has been en"a"ed in promotin" pioneerin" public=private partnership models lin%in" li!e, learnin" and livelihoods. )he !oundation addresses the cause o! poverty alleviation, &ith speci!ic emphasis on livelihoods !or mar"inali+ed youth.

L$/e)$+""d Ad/ *(e.e*# B,s$*ess S(+"") 7LABS8

)he :ivelihood 7dvancement #usiness School (:7#S), a !la"ship pro"ram o! 5r. Reddy-s Ioundation (5RI), since its inception in <>>>, promotes tailor made pro"rams tar"eted at youth in the a"e "roup o! <? = $ years !rom economically &ea%est sections and enables them to "ain access to opportunities !or sustainable livelihoods and "ro&th in the @e& Gconomy. :7#S had so !ar created over C0,000 ne& economy livelihoods in :7#S assumes the role o! a catalyst, !acilitatin" on"oin", concurrent participation o! citi+ens, corporate and "overnment in !indin" lastin" solutions !or sustainable livelihoods. :7#S is no& operational in ?E centers across .ndia. << states o! the country have been already covered

40

by the pro"ram includin" all the ma3or metropolitan to&ns, cities as &ell as small and medium to&ns. )here are 2E ne& sector curriculums &ithin the :7#S !rame&or%, !or e."., #,0, retail academy, Customer Relations and Sales, 'icro .rri"ation, 7utomobile#ed side ,atient 7ssistants, etc. Gach curriculum is incorporated into the :7#S !rame&or% a!ter a thorou"h mar%et survey is underta%en in the sector. )he survey analyses the possible livelihoods in the respective sector and the potential !or up&ard mobility !or the :7#S aspirant. )he trainin" is imparted !or duration o! >0 days, &hich in itsel! is uni4ue. )he classroom modules are uni4ue &ith lot o! emphasis on li!e s%ills, so!t s%ills such as communication, emphasis on team &or% and technical s%ills. )he industry also participates in the classroom activity by ta%in" special "uest sessions !or the aspirants at re"ular intervals. )he &hole pro"ram is a complete pac%a"e o! s%ill based trainin" &hich is %ept abreast &ith the mar%et demands and technolo"y.

0ur economy is "ro&in" but still there is a mismatch bet&een employment opportunities and s%ill sets o! the unemployed, &hich is deepenin" poverty in .ndia. )he numbers o! those see%in" active employment is li%ely to reach E>2 million by 200C. )he 3obless a!ter tryin" mi"ration, alternative sources, crime or insur"ency opts !or the !inal desperate actL Suicide. )he numbers o! suicides are shoc%in" amon" those &ho declare themselves totally unemployed. 7s the duration o! unemployment increases, suicide rates "o up. Hith time the percenta"e o! unemployment has risen !rom $.>>R (<>> =>4) to C. R (2000=2004). Hhile >ER o! .ndia-s children enroll in primary school, by the a"e o! <0 about 40R have dropped out and 3ust over a third o! hi"h school students "raduate creatin" a hu"e pool o! dropouts &ho are unsuitable !or mainstream employment. Static education system, obsolete curriculum asymmetric to the ne& economy and diverse socio=economic reasons contribute to unemployment despite a dynamic labor mar%et. :7#S tac%les this systemic problem &ith a mar%et based approach that is sensitive to socio=

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economic needs o! mar"inali+ed youth. 7imed at mainstreamin" and ensurin" economic security o! youth &ho could be 8victimi+ed9 by poverty, :7#S is an e*ample o! synchronous social action o! di!!erent players. .nitially, :7#S !aced di!!iculties li%e industry reluctance to recruit non="raduates, "overnment cynicism about e!!ectiveness o! the pro"ram, community distrust o! run=o!=the=mill vocational trainin" and di!!iculty in mobili+in" youth. )he concept o! :7#S bein" hi"hly appreciated, various or"ani+ations &orld&ide are loo%in" at replicatin" :7#S, so that youth can ta%e advanta"e o! this pro"ram. Kovernment ( @on= Kovernment or"ani+ations, Corporate and many .nternational or"ani+ations are collaboratin" &ith 5RI to implement the :7#S pro"ram across the country. 5RI has ventured into many public private partnerships !or the success!ul implementation o! the :7#S pro"ram.

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CHAPTER V CONCLUSION A RECOMMENDATIONS

CONCLUSION
)hus Corporate Social Responsibility (CSR) is about ho& companies mana"e the business processes to produce an overall positive impact on society. )hus companies

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consider the interests o! society by ta%in" responsibility !or the impact o! their activities on customers, suppliers, employees shareholders, communities and other sta%eholders, as &ell as the environment. )his is seen to e*tend beyond the statutory obli"ation to comply &ith le"islation as or"ani+ations are voluntarily ta%in" !urther steps to improve the 4uality o! li!e !or employees and their !amilies as &ell as !or the local community and society at lar"e. .! a company chooses to !ollo& the &ay o! CSR, it &ill inte"rate ethical concerns in its activities and in its interaction &ith all the. sta%eholders. )his implies that the corporate units !unction in such a &ay that their CSR activities in all li%elihood actually reach out to the bene!iciaries Othe society in "eneral. )he ethical considerations are aimed at preparin" the "round&or% !or e*pectin" the correct reaction or response o! their CSR "enerated activities

Corporate Social Responsibility is a concept &hich is still evolvin" in .ndia, only !e& '@Cs have started practicin" it, 5r. Reddys :ab has made considerable contribution to the society and has participated in various activities to promote &el!are amon" hapless people across .ndia.

RECOMMENDATIONS
.mplementin" the CSR strate"y and commitments is all about translatin" tal% into action == inte"ratin" the !irm-s CSR strate"y and commitments into the daily routine. #ut &ith 40

limited time and resources, it doesn-t al&ays ma%e sense !or a small business to hire CSR sta!!, nor !or it to put too much CSR &or% on one employee-s plate. Small !irms also o!ten !ace challen"es (as do lar"e !irms) &hen they identi!y too many elements o! CSR as bein" relevant to the company. )he result may be that employees "iven responsibility !or CSR are over&helmed and do nothin", or become over= enthusiastic and bite o!! more than they can che&. )o avoid over&helmin" sta!!, ta%e small stepsL choose 3ust one initiative and set tar"ets !or it the !irst year. .! that "oes &ell, add another, and so on. )he activities underta%en need to reach the rural public &ho live in the interior, thus more study ahs to made about the actual need to upli!t the lives and empo&er them &ith some alternative livelihood options.

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