Professional Documents
Culture Documents
CSR Project On Insurance
CSR Project On Insurance
EXECUTIVE SUMMARY
RESEARCH METHODOLOGY
Objective of the study
This project has been conducted with a variety of important objectives in mind.
The objectives of doing this project are:
To study the concept of Corporate Social Responsibility by Insurance
companies.
To evaluate the different methods of Corporate Social Responsibility.
To analyze the various activities of insurance company.
To know major players of insurance sector involved in Corporate Social
Responsibility.
Sources of data
Primary data:
Primary data is the data which is collected from the surveys, personal
interactions, etc.
Secondary data:
The secondary data is the data which is collected from books, periodicals,
newspapers, magazines, articles, etc.
The contents of this project are purely based on secondary data. The data is
gathered from various sources like various websites, periodicals and reference
books.
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The time given for preparing the project was limited to cover the topic in full
detail.
University has imposed limitations on maximum pages due to which every
topic cannot be explained in full detail otherwise more concepts of this topic
would have been elaborated.
We do have much information on insurance but the practical functionality
has not been experienced. So the project is more based on theoretical
concepts as compared to practical implementations of the concepts.
The actual effect on the society of the Corporate Social Responsibility By
Insurance Companies cannot be measured.
INTRODUCTION OF INSURANCE
Insurance is form of the contract between insurer and insured. Insurance is the
equitable transfer of the risk of a loss, from one entity to another in exchange for
payment. It is a form of risk management primarily used to hedge against the risk of a
contingent, uncertain loss. An insure r, or insurance carrier, is a company selling the
insurance; the insured, or policyholder, is the person or entity buying the insurance
policy. The amount of money to be charged for a certain amount of insurance
coverage is called the premium. Risk management, the practice of appraising and controlling
risk, has evolved as a discrete field of study and practice. The transaction involves
the insured assuming a guaranteed and known relatively small loss in the form of
payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the
insured in the case of a financial (personal) loss. The insured receives a contract,
called the insurance policy, which details the conditions and circumstances under
which the insured will be financially compensated.
Insurance involves pooling funds from many insured entities (known as exposures)
to pay for the losses that some may incur. The insured entities are therefore protected from
risk for a fee, with the fee being dependent upon the frequency and severity of the event
occurring. In order to be an insurable risk, the risk insured against must meet certain
characteristics. Insurance as a financial intermediary is a commercial enterprise and
a major part of the financial services industry, but individual entities can insure
through saving money for possible future losses.
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Cases like these have left the impression that unethical behavior is characteristic of
the industry. Unfavorable media coverage has shaken stakeholder confidence and
raised suspicion.
The insurance industrys reputation suffered a setback from the global financial
crisis. Although most insurers were relatively unscathed compared to the banking
sector, some leading insurers, such as AIG, Fortis (a Belgian insurance group) and
Argenta (a Lloyds of London syndicate), were let down by their non-insurance
operations. Despite the performance of the industry on the whole, trust in insurers
deteriorated.
During a crisis, an insurer needs to demonstrate that it is more than just a profitgenerating, abstract entity. It is important for insurers to emphasize the vital role
they play in economic and societal development. CSR measures implemented in
good timesand in badwill improve the industrys reputation and reinforce
stakeholder relationships. These two outcomes, in turn, can increase loyalty and
sales.
INTRODUCTION TO CSR
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The roots of CSR lie in philanthropic activities (such as donations, charity, relief
work, etc.) of corporations, globally, the concept of CSR has evolved and now
encompasses all related concepts such as triple bottom line, corporate citizenship,
philanthropy, strategic philanthropy, shared value, corporate sustainability and
business responsibility.
Corporate social responsibility (CSR) refers to a business practice that involves
participating in initiatives that benefit society
"Sustainability isn't just important for people and the planet, but also is vital for
business success," said Maw. "Communities are grappling with problems that are
global in scope and structurally multifaceted Ebola, persistent poverty, climate
change. The business case for engaging in corporate social responsibility is clear
and unmistakable. Billions are at stake if fast and large-scale action is not taken."
As consumers' awareness about global social issues continues to grow, so does the
importance these customers place on CSR when choosing where to shop.
"Technology has brought global connectivity and enabled advocacy and awareness
for social situations that were once obscure," said Alexis Magnan-Callaway, whose
fashion company Pax Cult donates 10 percent of its profits to an organization of
the customer's choice. "Millennials are redefining what it means to connect and
give back through this technology. It's not just about having a recycling program or
sustainable products. People want to feel good about what their dollar is doing."
A company's CSR strategy is a big factor in where today's top talent chooses to
work.
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"The next generation of employees is seeking out employers that are focused on
the triple bottom line: people, planet and revenue," Cooney told Business News
Daily.
Corporate Social Responsibility is an integrated combination of policies,
programs, education and practices which extend throughout a corporations
operations and into the communities in which they operate.
Corporate Social Responsibility is the continuing commitment by business to
behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as of the local community
and society at large.
Corporate Social Responsibility is achieving commercial success in ways that
honor ethical values and respect people, communities and the natural
environment.
Corporate Social Responsibility is a way of integrating the social, economic and
environmental imperatives of business activities. The term corporate Citizenship
denotes the expert to which business meet the legal, ethical, economic and
voluntary responsibilities placed on them by their stakeholders. Its all about how
companies voluntarily manage the business processes to produce on overall
positive impact on society.
From the above definitions, it is clear that:
The CSR approach is holistic and integrated with the core business strategy for
addressing social and environmental impacts of businesses.
CSR needs to address the well-being of all stakeholders and not just the companys
shareholders.
Philanthropic activities are only a part of CSR, which otherwise constitutes a much
larger set of activities entailing strategic business benefits.
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The history of CSR in India has its four phases which run parallel to India's
historical development and has resulted in different approaches towards CSR.
First Phase
In the first phase charity and philanthropy were the main drivers of CSR. Culture,
religion, family values and tradition and industrialization had an influential effect
on CSR. In the pre-industrialization period, which lasted till 1850, wealthy
merchants shared a part of their wealth with the wider society by way of setting up
temples for a religious cause. Moreover, these merchants helped the society in
getting over phases of famine and epidemics by providing food from their
godowns and money and thus securing an integral position in the society. With the
arrival of colonial rule in India from the 1850s onwards, the approach towards
CSR changed. The industrial families of the 19th century such as Tata, Godrej,
Bajaj, Modi, Birla, Singhania were strongly inclined towards economic as well as
social considerations. However it has been observed that their efforts towards
social as well as industrial development were not only driven by selfless and
religious motives but also influenced by caste groups and political objectives.
The Second Phase
In the second phase, during the independence movement, there was increased
stress on Indian Industrialists to demonstrate their dedication towards the progress
of the society. This was when Mahatma Gandhi introduced the notion of
"trusteeship", according to which the industry leaders had to manage their wealth
so as to benefit the common man. "I desire to end capitalism almost, if not quite, as
much as the most advanced socialist. But our methods differ. My theory of
trusteeship is no make-shift, certainly no camouflage. I am confident that it will
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survive all other theories." This was Gandhi's words which highlights his argument
towards his concept of "trusteeship". Gandhi's influence put pressure on various
Industrialists to act towards building the nation and its socio-economic
development. According to Gandhi, Indian companies were supposed to be the
"temples of modern India". Under his influence businesses established trusts for
schools and colleges and also helped in setting up training and scientific
institutions. The operations of the trusts were largely in line with Gandhi's reforms
which sought to abolish untouchability, encourage empowerment of women and
rural development.
The Third Phase
The third phase of CSR (196080) had its relation to the element of "mixed
economy", emergence of Public Sector Undertakings (PSUs) and laws relating
labour and environmental standards. During this period the private sector was
forced to take a backseat. The public sector was seen as the prime mover of
development. Because of the stringent legal rules and regulations surrounding the
activities of the private sector, the period was described as an "era of command and
control". The policy of industrial licensing, high taxes and restrictions on the
private sector led to corporate malpractices. This led to enactment of legislation
regarding corporate governance, labour and environmental issues. PSUs were set
up by the state to ensure suitable distribution of resources (wealth, food etc.) to the
needy. However the public sector was effective only to a certain limited extent.
This led to shift of expectation from the public to the private sector and their active
involvement in the socio-economic development of the country became absolutely
necessary. In 1965 Indian academicians, politicians and businessmen set up a
national workshop on CSR aimed at reconciliation. They emphasized upon
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CSR is not a new concept in India. Ever since their inception, corporates like the
Tata Group, the Group, and Indian Oil Corporation, to name a few, have been
involved in serving the community. Through donations and charity events, many
other organizations have been doing their part for the society. The basic objective
of CSR in these days is to maximize the company's overall impact on the society
and stakeholders. CSR policies, practices and programs are being comprehensively
integrated by an increasing number of companies throughout their business
operations and processes. A growing number of corporates feel that CSR is not just
another form of indirect expense but is important for protecting the goodwill and
reputation, defending attacks and increasing business competitiveness.
Companies have specialized CSR teams that formulate policies, strategies and
goals for their CSR programs and set aside budgets to fund them. These programs
are often determined by social philosophy which have clear objectives and are well
defined and are aligned with the mainstream business. The programs are put into
practice by the employees who are crucial to this process. CSR programs ranges
from community development to development in education, environment and
healthcare etc.
For example, a more comprehensive method of development is adopted by some
corporations such as Bharat Petroleum Corporation Limited, Maruti Suzuki India
Limited. Provision of improved medical and sanitation facilities, building schools
and houses, and empowering the villagers and in process making them more selfreliant by providing vocational training and a knowledge of business operations are
the facilities that these corporations focus on. Many of the companies are helping
other peoples by providing them good standard of living.
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CSR can encompass a wide variety of tactics, from giving nonprofit organizations
a portion of a company's proceeds, to giving away a product or service to a worthy
recipient for every sale made. Here are a few of the broad categories of social
responsibility that businesses are practicing:
Environment: organizations are starting to focus on their carbon footprint and
look for ways in which this can be reduced. Additionally, companies are looking at
ways that their operations can be more sustainable overall for the environment, by
having a minimal impact. Some companies are now required by law in the UK to
report on their emissions of greenhouse gases. This makes it more likely than in the
past that a company would focus on environmental areas of corporate social
responsibility. One primary focus of corporate social responsibility is
the environment. Businesses, both large and small, have a large carbon footprint.
Any steps they can take to reduce those footprints are considered both good for the
company and society as a whole.
Philanthropy: Businesses also practice social responsibility by donating to
national and local charities. Whether it involves giving money or time, businesses
have a lot of resources that can benefit charities and local community programs.
this type of corporate social responsibility is most commonly associated with
giving money to charities. Often, organizations will have specific charities that
they support, and these may be linked to their line of business. This is not always
linked to charity work however. For example, Google carries out several initiatives
in China that help to improve the prospects of people. One such example is Google
gives money to support earthquake relief efforts.
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Ethical labor practices: By treating employees fairly and ethically, companies can
also demonstrate their corporate social responsibility. This is especially true of
businesses that operate in international locations with labor laws that differ from
those in the United States. Most of the ethical corporate social responsibility
programmes out there focus on fair treatment of employees, which includes
employees that may not be directly working for the organization. What this means
is that ethical corporate social responsibility usually considers the entire supply
chain. That means that some companies that source clothes from Asia have
corporate social responsibility programmes to make sure that the people that work
to produce the clothes that they buy are treated fairly. This may include a minimum
wage or certain standards to be met in the factories. Some of this can be quite
difficult to enforce in the supply chain. Another example is that small farmers in
developing countries that supply produce such as coffee, bananas or other crops are
paid a fair price for their goods.
Ethical corporate social responsibility is not just limited to making sure that people
in less developed countries are treated fairly. It is also focused on making sure that
all stakeholders receive fair treatment. This includes employees, but also
customers, shareholders and other stakeholders that the company may impact
through its activities.
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Strategic Philanthropy
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Studies show that few companies have taken steps to implement human rights
policies.
Companies that show enthusiasm for observing voluntary human rights codes of
conduct usually operate in a business with the potential to considerably impact
human rights; the majority of their work may be done in developing countries, for
example. These companies also tend to have high-profile brand names that they
wish to protect, and for that reason they can be more easily pressured into action
by civil society.
Human rights are still an important consideration because insurance permeates
many facets of everyday life. It is particularly relevant for corporations operating
globally or those that may be considering outsourcing (or moving) services to
countries with lesser human rights protections.
Many organizations have created initiatives to encourage companies to respect
human rights and hold corporations liable for violations. One of the most notable is
the U.N. Guiding Principles on Business and Human Rights, developed by
Harvard professor John Ruggie and endorsed by the United Nations in June 2011.
These principles provide a useful reference for insurers. Ruggie explains that to
respect rights essentially means not to infringe on the rights of othersput simply,
to do no harm. The key operational element is to conduct due diligence to
become aware of, prevent and address adverse human rights impacts. This
process involves making policy commitments to human rights, undertaking
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The Ministry of Corporate Affairs has notified Section 135 and Schedule VII of the
Companies Act 2013 as well as the provisions of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 to come into effect from April 1, 2014.
With effect from April 1, 2014, every company, private limited or public limited,
which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net
profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the
immediately preceding three financial years on corporate social responsibility
activities. The CSR activities should not be undertaken in the normal course of
business and must be with respect to any of the activities mentioned in Schedule
VII of the 2013 Act. Contribution to any political party is not considered to be a
CSR activity and only activities in India would be considered for computing CSR
expenditure.
The net worth, turnover and net profits are to be computed in terms of Section 198
of the 2013 Act as per the profit and loss statement prepared by the company in
terms of Section 381 (1) (a) and Section 198 of the 2013 Act. It is has been
clarified that if net profits are computed under the Companies Act, 1956 they
needn't be recomputed under the 2013 Act. Profits from any overseas branch of the
company, including those branches that are operated as a separate company would
not be included in the computation of net profits of a company. Besides, dividends
received from other companies in India which need to comply with the CSR
obligations would not be included in the computation of net profits of a company.
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The CSR Rules appear to widen the ambit for compliance obligations to include
the holding and subsidiary companies as well as foreign companies whose
branches or project offices in India fulfill the specified criteria. There is a need for
clarity with respect to the compliance obligations of a company as well as its
holding and subsidiary companies.
The activities that can be undertaken by a company to fulfill its CSR obligations
include eradicating hunger, poverty and malnutrition, promoting preventive
healthcare, promoting education and promoting gender equality, setting up homes
for women, orphans and the senior citizens, measures for reducing inequalities
faced by socially and economically backward groups, ensuring environmental
sustainability and ecological balance, animal welfare, protection of national
heritage and art and culture, measures for the benefit of armed forces veterans, war
widows and their dependents, training to promote rural, nationally recognized,
Paralympics or Olympic sports, contribution to the prime minister's national relief
fund or any other fund set up by the Central Government for socio economic
development and relief and welfare of SC, ST, OBCs, minorities and women,
contributions or funds provided to technology incubators located within academic
institutions approved by the Central Government and rural development projects.
However, preference would need to be given to local areas and the areas around
where the company operates.
To formulate and monitor the CSR policy of a company, a CSR Committee of the
Board needs to be constituted. Section 135 of the 2013 Act requires the CSR
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A company can undertake its CSR activities through a registered trust or society, a
company established by its holding, subsidiary or associate company or otherwise,
provided that the company has specified the activities to be undertaken, the
modalities for utilization of funds as well as the reporting and monitoring
mechanism. If the entity through which the CSR activities are being undertaken is
not established by the company or its holding, subsidiary or associate company,
such entity would need to have an established track record of three years
undertaking similar activities.
Companies can also collaborate with each other for jointly undertaking CSR
activities, provided that each of the companies are able individually report on such
projects.
A company can build CSR capabilities of its personnel or implementation agencies
through institutions with established track records of at least three years, provided
that the expenditure for such activities does not exceed 5% of the total CSR
expenditure of the company in a single financial year.
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The CSR Rules specify that a company which does not satisfy the specified criteria
for a consecutive period of three financial years is not required to comply with the
CSR obligations, implying that a company not satisfying any of the specified
criteria in a subsequent financial year would still need to undertake CSR activities
unless it ceases to satisfy the specified criteria for a continuous period of three
years. This could increase the burden on small companies which do not continue to
make significant profits.
profit for the last three financial years and the prescribed CSR expenditure. If the
company has been unable to spend the minimum required on its CSR initiatives,
the reasons for not doing so are to be specified in the Board Report.
Local Area
Under the Companies Act, preference should be given to local areas and the areas
where the company operates. Company may also choose to associate with 2 or
more companies for fulfilling the CSR activities provided that they are able to
report individually. The CSR Committee shall also prepare the CSR Policy in
which it includes the projects and programmes which is to be undertaken, prepare a
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list of projects and programmes which a company plans to undertake during the
implementation year and also focus on integrating business models with social and
environmental priorities and process in order to create share value.
The company can also make the annual report of CSR activities in which they
mention the average net profit for the 3 financial years and also prescribed CSR
expenditure but if the company is unable to spend the minimum required
expenditure the company has to give the reasons in the Board Report for non
compliance so that there are no penal provisions are attracted by it.
When a company has a website, the CSR policy of the company would need to be
disclosed on such website.
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How much good a company can do in the local communities, or even beyond that,
is corporate social responsibility. And the better the benefits, the better the media
coverage.
On the other hand, however, if a corporation participates in production or activities
that bring upon negative community impacts, the media will also pick this up (and
unfortunately, bad news spreads quicker than good news). Media visibility is only
so useful in that it sheds a positive light to your organization.
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Brand differentiation
In the past, brand differentiation was one of the primary reasons companies
embraced CSR. Companies such as Timberland were able to find their voice and
incorporate the companys values into their business model. However, as CSR has
become more commonplace, using it to differentiate your brand is getting harder to
do. For example, the Cola Wars is one of the longest running rivalries in
business. Coke and Pepsi are constantly looking to grab as much market share as
they can from each other. Yet they are both adopting similar, although slightly
different, approaches to CSR. Both Pepsi and Coke are pursuing strategies of zero
net water usage. Both companies offer water bottles made from sustainable
packaging as well.
Long-term thinking
The only reason were doing sustainability is to drive the growth of Unilever,
McDonald said in the video mentioned. Indeed, CSR is an effort to look at the
companys long-term interest and ensuring that the companys future is well
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sustainable. Hence, thats why I prefer the term sustainability to CSR. It is a shift
from worrying about the next fiscal quarters financial results to the impact
business decisions today have on financial (and social) results ten years from now.
Customer engagement
For the past few years, Wal-Mart has established itself as a leader on
environmental efforts. Wal-Mart is a leader in environmentalism. In 2008, WalMart ran an ad campaign designed to raise awareness about the environment and
the product choices consumers could make. Using CSR can help you engage with
your customers in new ways. Since the message is about something good, it can
often be an easier way to talk to your customers. This is an underused tool for
business-to-business company communication.
Fines and penalties assessed by the government for lack of regulatory compliance
and lawsuits from customers due to product defects or from employees due to
unsafe working conditions can be costly to a small business. Cash flow is the
lifeblood of a company, allowing it to meet its obligations such as payroll and to
fund marketing and business development programs. Maintaining a stable cash
flow keeps the company on its growth track.
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Culture Values:
Corporate Social Responsibility requires an environment where innovation and
independent thinking are welcomed. There must be a commitment to close the gap
between what the company says and reality of its actual performance. Care
should be exercised so that the company says what it means what it says.
Management Structures:
Corporate Social Responsibility management systems aims to integrate corporate
responsibility concerns into a companys values culture, operations and business
decisions at all levels of the organization. Such a system can be created by
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Strategic Planning:
Companies begun to incorporate Corporate Social Responsibility into their long
term planning processes. Specific goals and measures of progress are identified for
the purpose. The impact of any major company proposals on society is assessed
before it is approved.
General Accountability:
Social responsibility goals may be prescribed for different divisions, departments
and job positions. Job descriptions are designed so that each employee can
understand how he can contribute to the companys overall effects to be socially
responsible.
A few socially responsible companies take the lead and persuade others to behave
in more responsible manner. It is in everyones best interest to have as many
companies as possible honoring the requirements and expectations of Corporate
Social Responsibility.
HDFC Life has always believed that establishing a strong and ethical foundation is
an essential prerequisite for long-term sustainable growth. Integrity and people
care are two of our key fundamental values which they follow.
Approach
HDFC Life has always believed that establishing a strong and ethical foundation is
an essential prerequisite for long-term sustainable growth. HDFC Life focuses on
maintaining the quality of business and creation of long-term value for policy
holders and stakeholders. We also believe that business must go hand in hand with
a sense of responsibility towards the society.
HDFC Lifes business philosophy highlights the theme of self-respect and
independence. Swabhimaan, HDFC Lifes Corporate Social Responsibility (CSR)
initiative- aims to play a positive role by contributing towards easing distress and
aiding in advancement of society while engaging with stakeholders thereby
becoming a socially responsible corporate citizen.
HDFC Life is committed to being a socially responsible corporate and its CSR
framework is governed by a formal policy.
Achievements
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Won the 2nd Best Marketing Campaign and 2nd Most Innovative
Fundraising Campaign awards during the India Giving Challenge 2011
HDFC Life was awarded the Yuva Hero Award in July 2011 for
contribution towards the educational support of lesser privileged children
Won the Most innovative fundraising campaign award during the India
Giving Challenge 2010
HDFC Life was awarded with Yuva Unstoppable Corporate Icon Award
from Dr. APJ Kalam in Sept2010
Initiatives
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Payroll Giving
HDFC Life encourages its employees to contribute a small part of their salary to
establish their own charity account through the Payroll Giving programme.
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Tree plantation
Environmental sustainability is emerging as an essential ingredient to doing
business responsibly and successfully. As the first private company in Indian
insurance sector, our actions have the potential to set sustainability benchmarks for
the industry and ensuring a better world for generations to come.
These aspirations materialized into environmental initiatives at HDFC Life. Under
its environmental CSR initiatives, since 2010, HDFC Life, in all its offices has
been undertaking steps like prohibiting the use of paper cups completely, saving
paper by setting printing on both sides as a default on printers, ensuring desktops
hibernate after 15 minutes to minimize electricity use, setting usage hours for air
conditioners, initiating internal campaigns to save water, power and paper wastages
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HDFC Life realizes that coping with the loss of a loved one is a painful experience.
While the disbursement of a death claim may help family members/ claimants
overcome any immediate financial difficulties, further support is required to
achieve long term financial stability.
Swabhimaan Careers
As an insurer, HDFC Life focuses on the long-term financial well being of the
policyholders and their dependants and thereby launched the Swabhimaan
Careers project. This initiative proactively reaches out to the policyholders
dependants and extends an opportunity to the dependants to send their applications
to HDFC Life. Basis the suitability of the profile, it is assessed and considered for
employment in the company.
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Akshaya Patra
HDFC life believes that education plays a significant role in a persons life. It helps
marginalized population of society in breaking away from the shackles of poverty.
Schools and qualified teachers might be significant in providing quality education
but without enabling conditions their impacts drastically diminishes. Access to
food and nutrition is one such enabling factor which may affect utilization of
education facilities both positively as well as negatively. Currently 42.5% of school
aged children are under nourished. HDFC Life in its endeavor to enhance access to
education for children of underprivileged groups is partnering with the Not for
Profit organization, Akshaya Patra. The organization runs school lunch programs
across India. Akshaya Patra distributes freshly cooked, healthy meals daily to 1.37
million children. HDFC life has funded a vehicle for Akshaya Patra, Hyderabad.
This vehicle will be used for delivering the midday meals at different school
locations with more efficiency ensuring the freshness of food.
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showcase and sell their products like clothes & handicrafts to help them raise
funds.
Risk Education
Keeping in mind the increased need to spread awareness around gender sensitivity
and related issues, we at Bharti AXA GI dedicate one day of the CR Week this year
as "Risk Education Day". On this day we organize camps, in association with
Concern India Foundation, where employees volunteered to conduct sensitization
workshops that helped girls from underprivileged backgrounds to safeguard
themselves against perils of society which included identifying a 'good touch' and a
'bad touch'.
Other risk awareness programmes on road safety, healthy habits and other
social/civic issues are also conducted.
Apart from the above programs which we do on Risk Education Day, on a regular
basis we keep conducting awareness programs for employees as well as for
underprivileged women & children on diverse risk topics.
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women hailing from humble backgrounds. During such camps, free medicines and
supplements are also distributed as prescribed by the attending doctors.
I. PREAMBLE
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1.1 Corporate Social Responsibility has been an area of focus not only for the Max
Group but also for Max Life Insurance Company Limited, (MaxLife or the
Company) since inception. Max Group being in the Business of Life, there
has been a conscious effort to make a difference in the lives of the less
privileged. Max Life has made conscious efforts to make a difference in the lives
of the less privileged.
1.2 The Companies Act brings an even greater emphasis on CSR with Rules that
provide guidance on minimum CSR spend, reporting mechanism, review
structure and reporting to the shareholders of the Company. A CSR Committee
has been formed at the Board level to oversee CSR Activities of the Company.
1.3 Further to the above stated, the Board has approved this CSR Policy which has
been formulated and proposed by the CSR Committee with an objective to
outline its CSR focus areas, recommending the amount of CSR Expenditure,
execution process, review & monitoring mechanism, and, reporting process to the
Management and the Board of Directors of the Company.
II. PHILOSOPHY &OBJECTIVES
Max Life has its vision to build the most admired life insurance company by
securing the financial future of our customers and the Companys mission bring
about strong social relevance, and aims to be committed to social causes and
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relevance for its inclusive growth and to contribute to society by supporting causes
on the health and well being platform.
IV. CSR IDENTIFIED SECTORS AND CSR ACTIVITIES
Max Life shall undertake Max Life CSR Activities in all or any of the CSR
Activities as per the Companies Act, however, it shall give primary importance to
the Max Life CSR
Identified Sectors, as follows.
4.1 Health & Hygiene
a. Supporting and facilitating surgery and high end treatment.
b. Preventive healthcare to underprivileged in identified geographies
c. Personal hygiene training in those villages which have been adopted by the
Company and in those locations where Health and Immunization camps are
organized by the Company
d. Environmental hygiene awareness in and around the areas of
operations of the Company
4.2 Education(exclusively for the select Village / Grams / any other
geographical clusters selected for development project)
a. Augment Primary and Secondary Education through remedial education support
b. Bridging Digital Divide
c. Financial Literacy to create awareness about financial planning
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4.3 Nutrition
a. Vitamin A(children 0-5 years) and other supplements for underprivileged women
and children
4.4 Livelihood
a. Vocational training and creating & supporting Self Help Groups for single
women led households in villages adopted by the Company. The vocations for
which training will be provided will be identified basis the inherent skill sets and
commercial opportunities for those vocations in and around the village
V. MODALITIES OF EXECUTION AND IMPLEMENTATION
SCHEDULES
5.1 Independent Implementing Agency: The Company shall work with Max India
Foundation or any other NGO, identified from time to time, as its independent
implementation partners for execution of the Max CSR Activities
5.2 NGO Support: Max India Foundation will execute projects with the help of
NGOs and employee engagement. Max India Foundation may seek the support of
NGOs who are working on ground on issues decided upon. Max India Foundation
will also provide training support to volunteers to carry out CSR activities.
5.3 Modality of Execution of Max CSR Activities: The Company shall execute and
undertake the Max Life CSR Activities as follows:
5.3.1. Healthcare which will cover pan-India immunization, surgeries and
treatments, health camps, medicinal support, health awareness, environmental
awareness, support for artificial limbs & polio calipers and other disability.
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Company may decide to work with from time to time, shall present and get
approval on a quarterly activity plan at the beginning of every quarter from
relevant authority at Max Life Insurance. The plan should be in line with
Max Life CSR Policy approved by the CSR Committee. This plan will form
the basis for progress report to CSR Committee.
6.2 Reporting to CSR Committee. Max India Foundation and other NGOs
the Company may decide to work with from time to time shall provide a
detailed progress report on the Key Performance Indicators to the CSR
Committee every Quarter, or, at such intervals and at such times as the
CSR Committee shall require Max India Foundation and other NGOs to do
so. The progress on CSR issues selected by the Company will be reported
in the Annual Report in the format prescribed by the CSR Rules.
6.3 Reporting to the Board. The CSR Committee, after approval, shall
submit its report giving status of the CSR Activities undertaken, CSR
Expenditure incurred and such other details as may be required by the
Board, in accordance with applicable laws.
6.4 Key Performance Indicators: Following shall be the key indicators for
assessment of each of the Max Life CSR Identified Sectors:
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LIC with about fifty percent of personal insurance market share in India has taken
up activates under Corporate Social Responsibility in the right earnest. The thrust
area CSR activities of Life Insurance Corporation (LIC) include operational
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Under infrastructure support LIC has gone in a fairly involved way for the
construction of building at Howrah for mentally and physically challenged
persons; constructed a library cum study centre and residential hostel for ladies at
Shri Ramakrishna Ashram. LIC has constructed class room cum activity centers at
Jorhat; hostel at Jalpaiguri; golden jubilee hall, school and college building at
Shimoga; Vocational center at Jodhpur; computer center at Bhopal; toilet and class
room blocks at Haldwani, Vellore district and similar activities extending help for
infrastructure support. LIC has provided school buses at Patna division and Raipur
divisions.
Under Medical and Health care, the LIC has provided Camera for diabetic
retinopathy; Tata Winger ambulance van equipped with hearing aids at Jorhat;
Ambulance with ECG machine at Bangalore and Belgaum; Construction of
obstetrics and Gynecology unit at Udapi for masses; provided sonography machine
for providing advanced healthcare for rural area at Nadiad; Mobile van for blood
collection purpose at Thane and Bhavnagar.
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Under Public Utility activities, the LIC has constructed homes for aged persons at
Bhagalpur; Observation centre for HIV infected children at Satara; Kitchen,
dinning room for destitute and mentally challenged women; Medical unite-home
for aged at Banglore.LIC has installed roof top solar photovoltaic system at
Ludhiana.
Life Insurance Corporation of Indias Berhampur division has decided to provide
monthly scholarship to 20 poor and meritorious students to pursue higher
education.
The amount of scholarship is Rs 1000 per month for undergraduate students and
the amount would be provided till the end of the course of the student. The
scholarship would be provided to the students as a part of Corporate Social
Responsibility (CSR) of the public sector unit, its senior Divisional Manager. Last
year, the division provided scholarship to nine under-graduate students. This year,
he said as many as 182 applications were received by the division and the process
was on to select 20 students.
CONCLUSION
CSR programmes integrate core business operations with efforts to reduce the
disadvantage faced by socially-excluded populations. The examples cited in the
case study demonstrate that commercial activities that incorporate sociallyexcluded populations as employees, suppliers, distributors, and customers can
contribute to capability and resource development for these populations. CSR
activities can have a significantly-positive effect on socially-excluded groups
both directly through health services and more generally by improving economic
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The private sector is often seen as a driver of exclusionary processes rather than a
partner in improving the health and welfare of socially-excluded populations.
However, private-sector initiatives and partnershipscollectively labeled
corporate social responsibility (CSR) initiativesmay be able to positively impact
social status, earning potential, and access to services and resources for sociallyexcluded populations. This project highlights the initiatives taken by the insurance
sector in India. The results show that there is (a) increase job-skills and
employment opportunities for women, disabled women, and rehabilitated drugusers and (b) provide healthcare services to female workers and their communities.
(c) increase in the literacy and cleanliness programs. Common success factors from
the project form the basis for recommendations to design and implement more
CSR initiatives targeting socially-excluded groups. The analysis found that CSR by
insurance companies has potential for positive and lasting impact on developing
countries, specifically on socially-excluded populations. However, there is a need
for additional monitoring and critical evaluation.
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This project has proved that the society stands to benefit from company social
responsibility and that the society is satisfied with the level of social responsibility
undertaken by insurance companies.
RECOMMENDATIONS
BIBLIOGRAPHY
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