Professional Documents
Culture Documents
Data For CSR 3
Data For CSR 3
INDEX
Sr.No Topic Page No
Chapter1 Corporate social responsibility 5-20
1.1 Introduction 5
1.2 CSR Policy As Per Companies Act 2013 8
1.3 Core Elements 9
1.4 Implementation Guidance 11
1.5 Issues And Challenges 12
1.6 Cost Benefit Analysis 15
1.7 Triple Bottom Line 16
1.8 Brand Differentiation 16
1.9 CSR In India 17
1.10 CSR Strategies Focusing On Protection Rather 19
Than Competitive Advantage
Chapter2 Corporate Social Responsibility In Amul 21-37
2.1 Introduction Of Amul 21
2.2 History 22
2.3 Corporate Social Responsibility Held By Amul 24
2.4 CSR Sensitive Organization Structure 24
2.5 CSR Sensitive Business Philosophy 26
2.6 CSR Oriented To Distributors & Retailers 26
2.7 Earnings Of GCMMF 28
2.8 CSR Oriented To Staff 29
2.9 Blood Donation 29
2.10 Amul Relief Trust 30
2.11 Tree Plantation 31
2.12 Tribhuvandas Foundation 33
2.13 Rural Sanitation 36
2.14 Swarnajayanti Gram Swarozgar Yojana 37
(SGSY)
Conclusion 39
Bibliography 40
The term "corporate social responsibility" became popular in the 1960s and has
remained a term used indiscriminately by many to cover legal and moral
responsibility more narrowly construed.
Proponents argue that corporations increase long term profits by operating with a
CSR perspective, while critics argue that CSR distracts from business' economic
role. A 2000 study compared existing econometric studies of the relationship
3
between social and financial performance, concluding that the contradictory results
of previous studies reporting positive, negative, and neutral financial impact, were
due to flawed empirical analysis and claimed when the study is properly specified,
CSR has a neutral impact on financial outcomes.
DEFINITIONS
4
CORE ELEMENTS
6
IMPLEMENTATION GUIDANCE
The CSR policy of the business entity should provide for an implementation
strategy which should include identification of projects/activities, setting
measurable physical targets with timeframe, organizational mechanism and
responsibilities, time schedules and monitoring. Companies may partner
with local authorities, business associations and civil society/non-
government organizations. They may influence the supply chain for CSR
initiative and motivate employees for voluntary effort for social
development. They may evolve a system of need assessment and impact
assessment while undertaking CSR activities in a particular area.
Independent evaluation may also be undertaken for selected
projects/activities from time to time.
Companies should allocate specific amount in their budgets for CSR
activities. This amount may be related to profits after tax, cost of planned
CSR activities or any other suitable parameter.
To share experiences and network with other organizations the company
should engage with well established and recognized programmes/platforms
which encourage responsible business practices and CSR activities. This
would help companies to improve on their CSR strategies and effectively
project the image of being socially responsible.
The companies should disseminate information on CSR policy, activities
and progress in a structured manner to all their stakeholders and the public at
large through their website, annual reports, and other communication media.
9
account ethical considerations when buying and selling stocks. (More on socially
responsible investment can be found in the 'Banking and investment' section of the
site.)
Competitive Labour Markets: Employees are increasingly looking beyond
paychecks and benefits, and seeking out employers whose philosophies
and operating practices match their own principles. In order to hire and
retain skilled employees, companies are being forced to improve working
conditions.
Supplier Relations: As stakeholders are becoming increasingly interested in
business affairs, many companies are taking steps to ensure that their partners conduct
themselves in a socially responsible manner. Some are introducing codes of conduct
for their suppliers, to ensure that other companies' policies or practices do not tarnish
their reputation. Dr Ratnam said the concept of CSR had different meanings
depending on the stakeholder and that depending on the specific situation of
the enterprises expectations can also vary. A CSR project can begin in response to a
crisis or adverse publicity that a company may suffer. The motive for launching CSR
can vary between philanthropy or notions of corporate citizenship. In India,
over time, the expectations of the public has grown enormously with demands
focusing on poverty alleviation, tackling unemployment, fighting inequality or forcing
companies to take affirmative action.
Lack of Community Participation in CSR Activities: There is a lack of
interest of the localcommunity in participating and contributing to CSR
activities of companies. This is largely attributableto the fact that there exists
little or no knowledge about CSR within the local communities as no seriousefforts
have been made to spread awareness about CSR and instil confidence in
the local communitiesabout such initiatives. The situation is further
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COST-BENEFIT ANALYSIS
RBV presumes that firms are bundles of heterogeneous resources and capabilities
that are imperfectly mobile across firms. This imperfect mobility can produce
competitive advantages for firms that acquire immobile resources. McWilliams
and Siegel (2001) examined CSR activities and attributes as a differentiation
strategy. They concluded that managers can determine the appropriate level of
investment in CSR by conducting cost benefit analysis in the same way that they
analyze other investments.
Reinhardt (1998) found that a firm engaging in a CSR-based strategy could only
sustain an abnormal return if it could prevent competitors from imitating its
strategy.
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"People, planet and profit", also known as the triple bottom line form one way to
evaluate CSR. "People" refers to fair labour practices, the community and region
where the business operates. "Planet" refers to sustainable environmental
practices. Profit is the economic value created by the organization after deducting
the cost of all inputs, including the cost of the capital (unlike accounting
definitions of profit).
This measure was claimed to help some companies be more conscious of their
social and moral responsibilities. However, critics claim that it is selective and
substitutes a company's perspective for that of the community. Another criticism is
about the absence of a standard auditing procedure.
BRAND DIFFERENTIATION
CSR can help build customer loyalty based on distinctive ethical values. Some
companies use their commitment to CSR as their primary positioning tool,
e.g., The Co-operative Group, The Body Shop and American Apparel.
CSR IN INDIA
CSR is not a new concept in India. Ever since their inception, corporates like the
Tata Group, the Aditya Birla 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 specialised 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.
the facilities that these corporations focus on. Many of the companies are helping
other peoples by providing them good standard of living.
CSR has gone through many phases in India. The ability to make a significant
difference in the society and improve the overall quality of life has clearly been
proven by the corporates. Not one but all corporates should try and bring about a
change in the current social situation in India in order to have an effective and
lasting solution to the social woes . Partnerships between companies, NGOs and
the government should be facilitated so that a combination of their skills such as
expertise, strategic thinking, manpower and money to initiate extensive social
change will put the socio-economic development of India on a fast track.
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extensive social change. Effective partnerships between corporate, NGOs and the government
will place India’s social development on a faster track.
An Article On Trust And Corporate Social Responsibility:
Lessons from India, authors mentioned Spirituality and Corporate Social Responsibility have
had a deep-rooted connection in India. A phenomenon that has preceded the coining of the term
‘CSR’, the link between the ‘karma’ as espoused by sacred Indian texts and initiatives
anchoring corporate as responsible citizens has been amply evident in India since the early
days.
This is widely divergent from the perspective of corporate social responsibility in
Western economies as reflected in the observation by Arthur Page, vice president of public
relations at AT&T for around 20 years and former advisor to the US President: “… all business
in a democratic country begins with public permission and exists by public approval ….”
Viewed from this perspective, public relations professionals are the custodians of trust for the
corporate world. While the global spotlight today focuses on debates on corporate trust, India
can proudly flaunt a head start in this arena. Yet, before we present India’s case, let’s
briefly scan some recent happenings, particularly in the US, that led to an erosion of
trust in Corporate Inc. worldwide.
Education is the most preferred area of CSR for Indian companies, with 85% of the companies
surveyed engaged in it, followed by health (67.5 per cent) and rural development and
livelihoods (57.5 %).
18
INTRODUCTION OF AMUL
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
The word AMUL is derived from the Sanskrit word Amulya, meaning rare,
valuable. The co-operative was initially referred to as Anand Milk Federation
Union Limited hence the name AMUL.
Amul spurred India's White Revolution, which made the country the world's
largest producer of milk and milk products. In the process Amul became the largest
food brand in India and has ventured into markets overseas.
HISTORY
Angered by the unfair trade practices, the farmers of Kaira approached Sardar
Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K.
Patel. He advised them to form a cooperative and supply milk directly to the
Bombay Milk Scheme instead of Polson (who did the same but gave them low
prices). He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of
the area went on a strike which led to the setting up of the cooperative to collect
and process milk. Milk collection was decentralized, as most producers were
marginal farmers who could deliver, at most, 1–2 litres of milk per day.
Cooperatives were formed for each village, too.
The cooperative was further developed and managed by Dr.Verghese Kurien with
H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk
(for the first time in the world) and a little later, with Kurien's help, making it on a
commercial scale, led to the first modern dairy of the cooperative at Anand, which
would compete against established players in the market. Kurien's brother-in-law
K.M. Philip sensitized Kurien to the needs of attending to the finer points of
marketing, including the creation and popularization of a brand. This led to the
20
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighbourhood in Gujarat. Within a short span, five unions in
other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set
up.To combine forces and expand the market while saving on advertising and
avoid competing against each other, the GCMMF, an apex marketing body of these
district cooperatives, was set up in 1973. The Kaira Union, which had the brand
name Amul with it since 1955, transferred it to GCMMF.
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.
Adding to the success, Dr. Madan Mohan Kashyap (faculty Agricultural and
Engineering Department, Punjab Agricultural University Ludhiana), Dr. Bondurant
(visiting faculty) and Dr Feryll (former student of Dr Verghese Kurien), visited the
Amul factory in Gujarat as a research team headed by Dr. Bheemsen. Shivdayal
Pathak (ex-director of the Sardar Patel Renewable Energy Research Institute) in
the 1960s. A milk pasteurization system at the Research Centre of Punjab
Agricultural University (PAU) Ludhiana was then formed under the guidance of
Kashyap.
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Corporate social responsibility (CSR) has been defined as the ―commitment of business to
contribute to sustainable economic development working with employees, their
families, the local community, and society at large to improve their quality of life,
in ways that are both good for business and good for development.
To meet with the CSR it is expected that a business in its entire procurement-
production-processing-marketing chain should focus on human development
involving the producer, the worker, the supplier, the consumer, the civil society,
and the environment. Indeed, a very tough task. Most businesses would certainly
flounder in not being able to achieve at least one or many of those expectations.
But AMUL has shown the way.
CSR-SENSITIVE ORGANISATIONAL STRUCTURE
AMUL is a three tier co-operative organisation. The first tier is the co-operative
society at the village, of which; milk producers are voluntary members, managing
the co-operative through a democratically elected 9-member managing committee,
and doing business by purchasing milk from members and selling it to the district
level co-operative. There are more than 11,000 co-operatives in villages of Gujarat.
The second tier is the district co-operative that processes milk into milk products,
markets locally and sells surplus to the state co-operative for national and
international marketing. There are 12 district co-operatives each being managed by
a 15-member board elected by the college comprising the nominated
representatives or chairmen of the village co-operatives. Third tier is the state level
co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF)
22
responsible for national and international marketing of milk and milk products
produced and sold to it. The GCMMF is managed by the boar democratically
elected by and from amongst the chairmen of the district co-operatives. The entire
three-tier structure with the GCMMF at its apex, is a unique institution because it
encompasses the entire chain from production of raw material to reaching the
consumer with the end product. Every function involves human intervention: 23.60
lakh primary milk producers; 35,000 rural workmen in more than 11,400 village
societies; 12,000 workers in 15 dairy plants; 750 marketing professionals; 10,500
salesmen in distribution network and 600,000 salesmen in retail network.
Accumulation of human capital is sine qua non for the development and growth of
any enterprise or economy. The GCMMF is sensitive towards CSR. It believes that
technology and capital are replicable inputs but not the human capital. Since men
are the basis for achieving the CSR, the GCMMF lays emphasis on their
development into competent, courteous, credible, reliable, responsive
communicators and performers.
23
EARNINGS OF GCMMF
Nurturing its primary members - the milk producers - is the first mission of the
GCMMF. Discharge of this responsibility is reflected in the manner in which the
GCMMF conducts its business and shares its earnings. The milk from the village
co-operatives is purchased at an interim price. So as to maximise the earnings of
the milk producers the GCMMF changes the product profile during the fiscal and
directs its sales and marketing activities towards those products that would bring in
maximum returns. True! Every business organisation follows the same principle.
But the GCMMF follows it with the central interest of the producers. During the
fiscal, as the GCMMF finds that from its earnings it is possible to pay more to the
producers for milk, the final price is declared higher than the interim price being
paid. Before the GCMMF closes its financial accounts the co-operatives are paid
‘price difference‘, the amount between the interim price and the final price. Thus profit of
the GCMMF is very low. The net profit (PADT) of the GCMMF during 2003-04
was Rs 7.31 crore against a turnover of Rs 2,947 crore, a meagre 0.25%. Further
out of the net profit of Rs 7.31 crore, Rs 4 crore was given as share dividend to the
co-operatives. To fulfill its corporate social responsibility towards its milk
producers and co-operatives the GCMMF works on razor thin profits and retention
of funds.
26
CSR-ORIENTED TO STAFF
The GCMMF hires and trains people to take advantage over its competitors. It has
developed in-house modules for training and competence building to improve and
upgrade of their knowledge; communication skills to understand the customer, be
responsive to customer requirements, and communicate clearly for trouble
shooting of problems. They are expected to be courteous, friendly, respectful, and
considerate to the customer. To improve the credibility and trustworthiness of the
managers it is important they perform consistently and accurately every time and at
all times. The structure of salary and perquisites is altogether different. The first
and foremost the staff must get satisfaction from the job they. They are recognised
for their contribution (Climate Survey) CSR-AMUL WAY.
BLOOD DONATION
Amul in association with the Indian red cross society aim to inspire, encourage and
initiate humanitarian services to minimize, alleviate and prevent human suffering
at all times to contribute for “humanity to peace”. Towards this objective Amul
initiated blood donation campaign since 1987. Blood donation camps are organized
regularly in rural areas through village dairy co-operative societies. Similarly
27
camps are organized in Amul dairy campus wherein employees and their family
members join in donating blood. In addition, Amul organizes donation of blood on
emergency. Amul has made a trend in donating blood to the society.
TREE PLANTATION
Green Gujarat Tree Plantation Campaign By Milk Producers Of Dairy Cooperatives
Amul Co-ops plant more than 311.98 lakhs trees.
Milk Producer members of Gujarat Dairy Cooperatives- better known as AMUL
have been celebrating the nation's Independence Day in a novel manner by
planting lakhs of saplings across Gujarat and have taken up an ambitious plan to
save the environment by planting trees, making India green and thereby reducing
the effects of global warming. The milk producers of Gujarat Dairy Cooperatives
are conducting mass tree plantation drive every year on Independence Day for last
five years. In last five years (2007 to 2011) the milk producers have planted around
311.98 lakhs trees). The most striking feature of these entire programmes was that
it has been initiated by milk producer members of the dairy cooperatives. The
unique fact about the programme was that the milk producer members took up the
oath to protect tree saplings till it survives and grows into tree. Over the years, due
to intensive agriculture and dairying various natural resources are getting
consumed at faster pace in Gujarat state of India. The state level apex body of
dairy farmers in Gujarat gave a serious thought in this direction and discovered a
novel idea for giving back to nature. The idea was "one member one tree"
29
plantation on our 60th Independence day - 15th August 2007.To put this idea in to
the practice a design team constituting of representatives of member unions were
formed. The team accepted the idea by heart and immediately decided to spread it
among farmer members of village dairy cooperative societies. Then the idea was
communicated to farmer members and they all welcomed it and enthusiastically
agreed to implement the idea. For smooth implementation of the idea, the design
team chalked out the road map for various activities. Execution teams were formed
at district union level to give final shape and put the plan in action. Village level
coordinators were identified and they were trained to streamline activity of tree
plantation. Various awareness materials were prepared. Through various
communication media farmer members were made aware of benefits of tree
plantation and tree plantation activity schedule.
The entire plantation activity was coordinated at all the three tiers of Anand pattern
at village, district and state level dairy cooperatives. On 15th August, 2007, after
the flag hoisting ceremony, each member took an oath to plant saplings and ensure
that they grew in to trees. Then individually they planted sapling on their own at
their identified locations like their farm, near their home, on Farm bunds, etc. They
have taken necessary care to ensure that this sapling survives and they also
reported regarding the survival to village level coordinator and district milk unions
after five months. In this way, 18.9 lakh trees were planted on 15th August 2007.
This was just the beginning. Henceforth, the Village Dairy Cooperative Societies
of Gujarat as a mark of respect for our nation decided to conduct such event on
every Independence Day and accepted 15th August (Independence Day) as a
"Green Revolution Day by Afforestation to Protect Mother Earth from Pollution,
Climate change and Global Warming".
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TRIBHUVANDAS FOUNDATION
The Foundation derives its uniqueness from the fact that it is a need-based
programme for villagers and is run by the villagers themselves. It fulfills the basic
health care needs of the villages. Apart from providing primary treatment for
various common ailments, the Foundation is also actively involved in promoting
preventive health practices. It is headquartered at Anand with sub-centers spread
31
over the district Anand and Kheda. The Foundation has a dedicated Team of
Medical Officers, Nurses, Administrative staff, Dais (Traditional Birth Attendants)
and Village Health Workers to provide the following services:
It also provides continuous training and retraining to Village Health Workers who
are chosen from villages with the help of the Dairy Co-operative Societies. This
enables the Village Health Workers to carry out health education and primary
health care from door-to-door, in groups and at the Dairy Co-operative Societies
Centres with confidence. The training focuses on primary health care, waterborne
disease, know your body, pregnancy and the delivery period, new born care and
care of the weak child, growth monitoring, breast feeding, common disease of
childhood, malaria, tuberculosis. Training is also imparted on other topics as the
need arises.
32
In association with Sankara Eye Hospital, the Foundation has helped in performing
2000 surgeries free of cost for the vision impaired patients. The efforts on to
organise camps for detection and improvement of vision of the rural people. The
Foundation has been identified by Government of Gujarat providing training inputs
to members of Village Health and Sanitation Committees of Village Panchayats of
all the villages of Umreth, Anklav and Anand talukas of Anand District and
Balasinor and Virpur talukas of Kheda District for a period of one year from 2009-
2010.
Amul Dairy has launched a novel scheme for total rural sanitation and set a target
for itself whereby not a single milk producer will attend to nature’s call in the
open. The Dairy with the support of District Rural Development Agency (DRDA)
will provide interest free loans to its milk producers in Anand and Kheda districts
to set up ‘pucca’ toilet blocks, which will not only help women milk producers
avoid embarrassment but will also ensure hygiene.
The mission is not just about bringing a cultural change by imbibing good habits
among milk producers but also targeted towards encouraging hygienic practices in
the milk supply chain.
Amul has prepared a model low-cost toilet block that costs Rs.11,500 per unit.
While DRDA will support this initiative through subsidy ranging between Rs.4500
and Rs.4600 for BPL/APL families, Amul will provide its members an interest free
34
loan worth Rs.4300 returnable in four years’ time. A member can pay up this loan
by getting Rs.100 per month deducted from his/her bill.
Amul has covered under this programme more than 8,755 beneficiaries to whom
milch animals were distributed in the District of Kheda and stood as guarantor for
the bank loans. These beneficiaries were then given membership of dairy co-
operatives in order to bring these poor households into mainstream economy by
transforming dairying into active income-generation enterprises. As part of this
programme 12,647 women and men were trained in dairy husbandry in addition to
construction of number of cattle sheds, development of green fodder plots,
distribution of chaff cutters and stainless steel cans.
To provide ground water availability, 56 bore wells were dug. More than 50
mobile Artificial Insemination units are pressed in operation for these farmers to
deliver services at the doorstep. A Mobile Diagnostic Laboratory has also been put
in operation to provide effective health services along with round the clock service
of veterinary doctors. This initiative has considerably helped in improving the
socio-economic conditions and quality of life of a large number of BPL families.
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CONCLUSION
BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Corporate_social_responsibility
https://www.google.co.in/search?q=csr+companies+act+2013
http://en.wikipedia.org/wiki/Amul
http://www.amuldairy.com/index.php/csr-initiatives
www.amuldairy.com