Professional Documents
Culture Documents
CSR Unit 1, 2
CSR Unit 1, 2
RESPONSIBILITY AND
SUSTAINABILITY
Prof Dr Indu Mazumdar
Indu.mazumdar@gmail.com
Module 1
Introduction to CSR- Meaning & Definition of CSR, History & evolution of CSR, Motives
of CSR, Benefits and Internal scope of CSR, Enterprise Social Responsibility, Concept
of sustainability & Stakeholder Management. CSR through triple bottom line and
Sustainable Business; environmental aspect of CSR; Chronological evolution of CSR
in India.
Module 2
Framework of Social Orientations- Management and Social Theories , Five types of
managers, organization classification. International framework for corporate social
Responsibility, Millennium Development goals, Sustainable development goals,
Relationship between CSR and MDGs. United Nations (UN) Global Compact 2011.
UN guiding principles on business and human rights. OECD CSR policy tool, ILO tri-
partite declaration of principles on multinational enterprises and social policy.
Module 3
CSR-Legislation In India & the world- Section 135 of Companies Act 2013.Scope for
CSR Activities under Schedule VII, Appointment of Independent Directors on the
Board. The Drivers of CSR in India, Changing expectations of social responsibility,
four faces of social responsibility, the regulatory environment in India Counter
trends. Performance in major business and programs.
Module 4
Identifying key stakeholders of CSR & their roles- Role of
Public Sector in Corporate, government programs that
encourage voluntary responsible action of corporations.
Role of Nonprofit &Local Self- Governance in implementing
CSR; Contemporary issues in CSR & MDGs. Global Compact
Self- Assessment Tool, National Voluntary Guidelines by
Govt. of India. Understanding roles and responsibilities of
corporate foundations
Module 5
Current trends and opportunities in CSR-CSR as a Strategic
Business tool for Sustainable development. Review of
successful corporate initiatives & challenges of CSR. Case
Studies of Major CSR Initiatives.
Meaning & Definition of CSR
• Corporate Social Responsibility is a
management concept whereby companies
integrate social and environmental concerns in
their business operations and interactions
with their stakeholders.
• Definition of By Mallen Baker. ”Corporate
social responsibility (CSR) is how companies
manage their business processes to produce
an overall positive impact on society.”
History & evolution of CSR in India
CSR IN ANCIENT INDIA
• The concept dates back to Mauryan history, where
philosophers like Kautilya emphasized on ethical practices and
principles while conducting business. CSR has been informally
practiced in ancient times in form of charity to the poor and
disadvantaged. Indian scriptures have at several places
mentioned the importance of sharing one’s earning with the
deprived section of society. We have a deep rooted culture of
sharing and caring.
• Religion also played a major role in promoting the concept of
CSR. Islam had a law called Zakaat, which rules that a portion
of one’s earning must be shared with the poor in form of
donations. Merchants belonging to Hindu religion gave alms,
got temples and night shelters made for the poorer class.
Hindus followed Dharmada where the manufacturer or seller
charged a specific amount from the purchaser, which was used
for charity. The amount was known as charity amount or
Dharmada. In the same fashion, Sikhs followed Daashaant.
• Here, we can understand that the history of CSR in India runs
parallel to the historical development of India. CSR has evolved
in phases like community engagement, socially responsible
production, and socially responsible employee relations
The Companies Act, April 2013
The Companies Act 2013 has formulated Section 135 and is landmark legislation that
makes Indian companies answerable to the government about their CSR expenditure.
India is the first country to make the incorporation of Corporate Social
Responsibility activities mandatory for qualifying companies. It is, for sure, a
remarkable step towards growth, overall development and humanity.
Be it a private sector company or a public sector company, Corporate Social
Responsibility CSR has to be adhered to by all listed companies. If a company falls in
either of the following criteria for compulsion, they need to form a CSR committee.
Companies:
That has a net worth of Rs. 500 crores or more, or
That have an annual turnover of Rs. 1000 crores or more, or
That generate a profit of Rs. 5 crores or more.
During any financial year, if any of the above financial strength criteria are met then the
rules of Section 135 apply. Prior to the compulsion of the Corporate Social
Responsibility clause, CSR activities in India were voluntary for the listed companies.
However, it was mandatory for them to disclose their CSR spending to their
shareholders. Under the Companies Act, the preference has to be given to local areas in
which the company operates.
Companies in India doing CSR activities in
India
ITC
ITC has been doing impactful CSR activities in India for years now. ITC has educated about 2,52,329
children through its 2,334 Supplementary Learning Centres. They have also supported empowered
about 15378 women members through 1183 self – help groups.
Tata Power
Tata Power has made it its topmost priority to empower women through its Self Help Groups in Kutch
Region of Gujarat. This initiative provides financial aid and loans for housing, purchasing cattle,
capital for business, education, marriage and medical purposes.
Infosys
Infosys is one of the early adopters of Corporate Social Responsibility. They have takes up projects like
the restoration of water bodies in Karnataka and metro station construction in partnership with
Bangalore Metro Rail Corporation Limited. Also, they are making a contribution in Sports through
their GoSports Foundation. Their CSR initiative also includes a relief fund for Tamil Nadu, Karnataka
and Kerala.
Reliance
Reliance has taken up the initiative of securing the life of villagers of Balangir district. They have a life
insurance programme for them. The “Education for All” initiative was launched to provide access to
quality education in India to everybody. They work to protect the right to education of
underprivileged children, girl-child and differently-abled. They also contribute to disaster relief
funds.
Tata steel
Tata Steel, for the last 100 years, has been committed to the social development and upliftment of Jharkhand. The
agenda of their CSR committee is to improve the quality of life of the communities it operates in. They also
launched a train called “Lifeline Express” in 1991, a running hospital, that serves the needy regions of India. They
have done numerous done AIDS awareness programmes.
Amul
Over the years, Amul has contributed to rural health and development through Tribhuvandas Foundation. They have
also established Swarnjayanti Gram Swarozgar Yojana, a holistic self-employment programme in Kheda district.
They also successfully run tree plantation drives, blood donation camps and rural sanitation programmes. They
also provide scholarships through their Amul Scholar schemes.
Cafe Coffee Day
The beloved coffee shop, Cafe Coffee Day, employs 50 speech and hearing impaired people at their various outlets as
staff. They do this as a part of their CSR activity as a move towards equal employment. They called them the ‘Silent
Brew-masters’. CCD also has tie-ups with NGO Enable India to empower differently-abled people. Their biggest
CSR initiative is the SVGH Vocational Training College in Chikmagalur, Karnataka.
P&G
“Shiksha – Padhega India, Badhega India” is a crucial part of Procter & Gamble’s CSR. THE Shiksha initiative has, till
date, helped about 280,000 underprivileged children to get access to their right to education. They have also built
& supported over 140 schools across India.
Wipro
Wipro makes its contribution to education and upliftment through Wipro Care. Not just education, Wipro addresses
disaster relief and rehabilitation and health and wellness programmes for the needy as well through Wipro Care.
They have also launched Wipro Eye that promotes ecological sustainability in its operations.
DLF
DLF is India’s largest real estate company. Initiated in the interest of educating children of construction workers,
Swapana Sarthak Informal School was established. They have also set up employable vocational training centres
under the banner of DLF LIFE. They’ve also set up DLF Inspire to improve the quality of life of underprivileged
children.
Enterprise Social Responsibility
• Enterprise Social Responsibility is a network
of consultants giving support to its industrial
customers, service providers or Public
Institutions in the context of their activities
regarding social responsibilities, particularly in
the fields of safety, health protection,
environment and quality.
Significance……
• Being a socially responsible company can bolster
a company's image and build its brand.
• Social responsibility empowers employees to
leverage the corporate resources at their disposal
to do good.
• Formal corporate social responsibility programs
can boost employee morale and lead to greater
productivity in the workforce.
Examples of Social Responsibility for
corporates
• Reducing carbon footprints.
• Improving labor policies.
• Participating in fair-trade.
• Charitable giving.
• Volunteering in the community.
• Corporate policies that benefit the environment.
• Socially and environmentally conscious
investments.
Some clear benefits of
corporate social responsibility are:
• Improved public image. ...
• Increased brand awareness and recognition. ...
• Cost savings. ...
• An advantage over competitors. ...
• Increased customer engagement. ...
• Greater employee engagement. ...
• More benefits for employees.
Concept of sustainability &
Stakeholder Management.
• Sustainability means meeting our own needs
without compromising the ability of future
generations to meet their own needs. In addition
to natural resources, we also need social and
economic resources.
• A sustainability-oriented company is one that
develops over time by taking into consideration
the economic, social and environmental
dimensions of its processes and performance.
Adopting this stakeholder view means rethinking
nature and purposes of firms and the managerial
tools adopted by companies themselves.
• Stakeholders are customers, shareholders,
employees and communities with a vested
interest in a company's strategies and
development plans. All of these individuals are
affected by a company's sustainability efforts,
and those efforts affect society as a whole and
the global environment.
Importance of stakeholder
management for sustainability
• A well-managed stakeholder engagement process
helps the project stakeholder to work together to
increase comfort and quality of life, while
decreasing negative environmental impacts and
increasing the economic sustainability of the
project
• Stakeholder engagement provides opportunities
to further align practices with societal needs and
expectations, helping to drive long-
term sustainability. Engaging stakeholders in the
dialogue to find out what social
and environmental issues matter most to them
will improve decision-making and accountability.
ACTIVITY
• YOU HAVE TO PREPARE A PROJECT FOR URBAN/
SEMI URBAN WOMEN LIVING IN BELOW POVERTY
LINE AREAS.
• WHAT WILL BE YOUR PROJECT, AND WHY THIS
PROJECT?
• WHO ARE THE STAKEHOLDERS OF YOUR PROJECT?
• HOW WILL YOU CONVINCE YOUR STAKEHOLDERS
TO JOIN YOUR POJECT?
• HOW WILL YOUR PROJECT SUPPORT
SUSTAINABILITY?
• HOW WILL IT BENEFIT THE SOICETY?
CSR THROUGH TRIPLE BOTTOM LINE
AND SUSTAINABLE BUSINESS
• Triple bottom line (TBL), in economics, believes
that companies should commit to focusing as
much on social and environmental concerns as
they do on profits. TBL theory posits that instead
of one bottom line, there should be three: profit,
people, and the planet.
• The theory behind the triple bottom line is that it
is in the interests of a business to act as a steward
of the environment, society and the economy.
... Corporate Social Responsibility (CSR) is used
to describe businesses' integration of social and
environmental issues into decisions, goals, and
operations
ENVIRONMENTAL ASPECT OF CSR
• The government of India initiated Corporate social
Responsibility for Environmental Protection (CREP) by
setting strict guidelines for 17 polluting industries.
• The new generation of entrepreneurs has recognized that
environmental stability is one of the essential prerequisites
for achieving long term growth and sustainability in the
market.
• For this purpose, the corporate should value the strategies
that ensure sustainability for their businesses.
• The major components of environmental CSR are
elimination of waste and emissions, maximizing energy
efficiency and productivity and minimizing practices that
may adversely affect utilization of natural resources by
coming generations
Scope of environmental initiatives for corporate
social responsibility includes the following:
• 1. Participative management
• 2. Network management
• 3. Mentor management
• 4. Pacesetting management
• 5. Authoritative management
Participative management
• A participative management style refers to actively
involving employees in the decision-making process. It’s all
about piecing together the different ideas, opinions, and
skill sets of each individual, and then prioritizing and
planning accordingly.
• By getting insights and input from the employees, the
employer can then narrow the team’s focus, and organize
and manage workloads from there. Not only does this
management style encourage creativity and innovation
from the employees, it can also help foster inclusivity in the
team.
• The benefits of participative management
The more people are involved in the decisions being made,
the more accountable and invested they will be in the
work!
When to use participative
management
• This participatory management style works well
when employees have a strong understanding of
business objectives, priorities and goals.
• For example, if organization is very client-
oriented ( software developing, BPO, KPO) and
employees are the ones in direct contact with
clients, they might know best what to prioritize.
• It’s a way of flipping the typical top-down
structure on its head — and can lead to big new
ideas and approaches, as well as long term
employee ambassadorship.
2. Network management
• A network management style emphasizes building connections
and lines of communication between teams and then trusting them
to work collaboratively with each other.
• This is a fairly hands-off management style, as the employees’ first
contact for resolving problems or getting initial approvals are each
other, not management.
• The role of network managers is maintaining the connections
between the employees so they can work effectively together.
• This could mean scheduling regular cross-team touchpoint meetings
or setting up the right Slack channels — the management might have
to test out a few things before you find what works best.
• The benefits of network management
Cohesion, communication, collaboration, and solid relationships. The
more people are connected, the better the workflow and the greater
the output for the customers.
3. Mentor management
• A mentor management style means shifting between a hands-on
and hands-off approach to management to develop the employees’
skills and lead them to be more autonomous.
• With this style, manager act as a coach and work one-on-one with
the employees to understand their strengths and weaknesses so
they can develop their expertise.
• By having regular touchpoints where managers set goals, create
development plans, and follow up on progress, they help the
employees become masters of their craft.
• Helping employees utilize their strengths every day impacts both
their sense of achievement, and the business’ bottom line.
The benefits of mentor management
• More than ever, modern workers expect this coaching management
style, not an old school boss. Employees are most engaged when
they are being mentored to hone in on their skills, not being told
what to do
4. Pacesetting management
• A pacesetting management style is hands-on and directive
about the pace of work that is set, but hands-off about how
the work will be completed.
• This style of management means implementing more
aggressive goals, strict deadlines and checkpoints for
projects, but leaving methods and execution up to
employees.
• It is not always the most popular management style, as it
can be more challenging and competitive, but there are
teams who thrive in these settings.
The benefits of pacesetting management:
• A dose of healthy competition to reach ambitious goals re-
ignites motivation and engagement in teams that have
become unstimulated in their day-to-day.
5. Authoritative management
• An authoritative management style is the old-school,
autocratic style of management, more aptly known as
micromanagement.
• It goes against the grain of servant leadership where
managers support a team from the bottom up, and instead
follows the traditional top-down management model.
• In this style, management dictate exactly what is done,
when, by who, and how, with no input from the employees.
• Authoritative management is not necessarily in line with a
people-first modern workforce, but under very specific
circumstances, it can be a necessary, temporary approach.
• The trick is using it for the right reasons at the right time.
Good managers remain clear in their intent behind choosing
this style, as it is often circumstantial.
The benefits of authoritative
management:
• Removes burden from a team and ensures a
lower margin for error in time of a business
crisis.
• 1. Mukesh Dhirubhai Ambani (born April 19,
1957) is an Indian billionaire business
magnate, and the chairman, managing
director and largest shareholder of Reliance
Industries Ltd.
• 2. Gautam Shantilal Adani (born June 24,
1962) is an Indian billionaire industrialist who
is the chairman and founder of the Adani
Group, an Ahmedabad-based multinational
conglomerate
• 3. Anand Gopal Mahindra (born May 1, 1955)
is an Indian billionaire businessman, and the
chairman of Mahindra Group, a Mumbai-
based business conglomerate.
• 4. Shaktikanta Das (born February 26, 1957) is
a retired 1980 batch Indian Administrative
Service officer. He is currently serving as the
25th Governor of the Reserve Bank of India.
• 5. Ratan Naval Tata (born December 28, 1937)
is an Indian industrialist, philanthropist, and a
former chairman of Tata Sons.
The principles are based on existing human rights obligations such as the
International Bill of Human Rights and the ILO's core labour standards. This
international framework set out requirements for policy makers and businesses,
establishing the first generally accepted reference framework for human rights
duties of states and the responsibilities of businesses in global supply and value
chains.
The United Nations Guiding Principles are based on three pillars:
•States' duty to protect human rights,
•Companies' responsibility to respect human rights and
•Access to remedy for victims of human rights violations.
Global Reporting Initiative
• First launched in 2000, GRI's sustainability reporting framework is
now the most widely used by multinational organizations,
governments, small and medium enterprises (SMEs), NGOs and
industry groups in more than 90 countries.
• Sustainability reporting is becoming more prevalent, driven by a
growing recognition that sustainability related issues can materially
affect a company’s performance; demands from various
stakeholder groups for increased levels of transparency and
disclosure; and the need for companies to appropriately respond to
issues of sustainable development.
• A sustainability report provides a balanced and reasonable
representation of the sustainability performance of the reporting
organization, including both positive and negative contributions.
Sustainability reports based on the GRI Reporting Framework
disclose outcomes and results that occurred within the reporting
period in the context of the organization’s commitments, strategy
and management approach.
ISO 26000 - Social responsibility
• ISO 26000 is defined as the
international standard
developed to help
organizations effectively
assess and address social
responsibilities that are
relevant and significant to
their mission and vision;
operations and processes;
customers, employees,
communities, and other
stakeholders; and
environmental impact.
Voluntary Principles
• Created in 2000, the Voluntary Principles is a multi-stakeholder initiative that
promotes the implementation of a set of principles that guide companies on
providing security for their operations while respecting human rights,
• The Voluntary Principles Initiative is composed of governments, key
international non-governmental organizations, and companies in the
industries of extracting, harvesting, developing natural resources, or energy.
Together, members strengthen their capacity to address complex security and
human rights issues in business operations around the world.
• Security concerns present particularly challenging issues that benefit from a
multi-stakeholder approach. Different stakeholders bring unique perspectives
and have access to different types of information. Governments possess
diplomatic information related to the security sector; companies have
firsthand knowledge regarding the challenges of working with security
providers on the ground, and NGOs have access to information regarding
impact on local communities. By working together, stakeholders are better
equipped to address concerns collectively.
• The multi-stakeholder aspect of the Voluntary Principles Initiative helps
promote the sharing of best practices and provides opportunities for
collective learning and problem-solving. These interactions between different
stakeholders build trust which, in turn, promotes both improved collaboration
to address root causes of existing security and human rights concerns, and
coordinated and timely responses to specific challenges that arise over time
MILLENNIUM DEVELOPMENT GOALS
• In July 2014, the UN General Assembly Open Working Group (OWG) proposed a
document containing 17 goals to be put forward for the General Assembly’s approval
in September 2015. This document set the ground for the new SDGs and the global
development agenda spanning from 2015-2030
Relationship between CSR and MDGs.
• MDGs have been replaced or followed up by
Sustainable Development Goals or SDGs since 2015.
SDGs entails 17 goals including poverty alleviation,
education, water and sanitation, good health and
well being and so on, to be achieved by 2030.
• The 17th goal is called “Partnerships for the Goals”,
meaning it calls for action through collaboration
between state, private and civil society actors, to
meet the SDGs.
• There is a clear convergence between SDGs and CSR
as both focus on eradicating key challenges to
sustainable development through community and
environment action.
• With the advent of mandatory CSR as a part of
Companies Act, 2013 Indian corporates have an
opportunity to leverage SDGs to meet their CSR
obligations, given the overlap between the two.
• In the process, collaborations can be fostered
between corporates, governments, grassroot
agencies and other CBOs to deliver these impacts at
scale or to align the impacts to national agendas such
as The Swachh Bharat Mission, Open Defecation Free
India or Har Ghar jal Yojana and more.
India’s performance with regards to
MDGs
• India has been moderately successful in
reducing poverty. The Poverty Headcount
Ratio which is estimated to reach 18.6
percent by 2015 (according to the
Government of India MDG Report 2009)
is likely to miss the target by about 3.5
percentage points.
However, eradicating hunger remains a key
challenge. The proportion of population that
has a dietary energy consumption of below
the permissible standards of 2,100-2,400 kcal
has risen from 64 percent in 1987-88 to 76
percent in 2004-05. Malnourishment is also
an indicator of food insecurity. It is estimated
that malnourishment could decline to 40
percent by 2015. This would still be below the
target of reducing malnourishment to 28.6
percent.
• India is on track to eliminating gender disparity
in primary and secondary education. However,
as the Government of India MDG Report 2009
notes, “participation of women in employment
and decision-making remains far less than that
of men, and the disparity is not likely to be
eliminated by 2015.” Achieving gender parity in
tertiary education also remains a challenge. In
addition, the labour market openness to women
in industry and services has only marginally
increased from 13-18 percent between 1990-91
and 2004-05.
• Although India’s Under Five Mortality (U5MR) declined
from 125 per 1,000 live births in 1990 to 74.6 per 1,000
live births in 2005-06, it is set to fall short of the
target of 42 per 1,000 live births by 2015. As of 2013,
the U5MR in India was 53 per 1,000 live births.
• From a Maternal Mortality Rate (MMR) of 437 per
100,000 live births in 1990-91, India was required to
reduce MMR to 109 per 100,000 live births by 2015. By
2013, it could manage to bring down the MMR to 190
per 1,00,000 live births. India is expected to fall short
of the 2015 target by 26 points.
• India has made significant strides in reducing the prevalence of HIV
and AIDS across different types of high risk categories. Malaria,
both in terms of prevalence and death has declined.
• Forest cover has increased to 24.02 percent and protected areas
cover to about 4.83 percent of the country’s total land area. India
is on-track in achieving the MDG target for sustainable access to
safe drinking water. However, the country is unlikely to achieve
the target of reducing the proportion of households having no
access to sanitation to 38 percent by 2015.
• India has emerged as one of the major development partners for
fostering techno-economic and intellectual assistance to various
developed and developing countries across the world.
United Nations (UN) Global Compact
2011.
• The United Nations Global Compact is an initiative that global
corporations can sign on to committing to responsible business
practices in the areas of human rights, labor, the environment, and
corruption.
• There are 10 principles that govern this pact .
• Companies that join the compact are expected to integrate these
principles into their corporate strategies, culture, and day-to-day
operations.
• Companies are also expected to advocate the principles publicly
and communicate with stakeholders on progress toward meeting
the principles.
• Any company that commits to upholding the principles may join the
compact, which is not legally binding and is purely voluntary.
THE UN GLOBAL COMPACT HAS 10 OPERATING PRINCIPLES
OUTLINING THESE VALUES.
Principle 1: Support and respect the protection of internationally proclaimed human
rights.
Principle 2: Ensure that business practices are not complicit in human rights abuses.
Principle 3: Uphold the freedom of association and the effective recognition of the
right to collective bargaining.
Principle 10: Fight corruption in all its forms including extortion and bribery.
MEMBER COMPANY RESPONSIBILITIES OF THE UN
GLOBAL COMPACT
environmentally responsible
focused on recognize the link between
ways with regard to climate
social sustainability, environmental issues, and
change, water and sanitation,
promoting public policies that social and development
energy, biodiversity, and food
support social sustainability, priorities.
and agriculture