Corparate social responsibility.

Corporate social responsibility (CSR)

Corporate social responsibility (CSR) is a broad business concept. It usually describes a
company's commitment to carry out their business in an ethical way.
This means managing their business processes while taking account of their social, economic and

environmental impact, and considering human rights.

PROVISIONS AND COMPANIES ACT 2013

As per the section of companies act 2013 it is defined as:

“Corporate Social Responsibility (CSR) implies a concept, whereby companies decide voluntarily to

contribute to a better society and a cleaner environment – a concept, whereby the companies

integrate social and other useful concerns in their business operations for the betterment of their

stakeholders and society in general in a voluntary way.”

The activities include:

projects or programs specified in Schedule VII to The Act. And

projects or programs which are undertaken by the board of directors of the company.

APLICABILITY

Any company having the network of more than 500 crore, turnover of 1000 crore or net profit of 5

crore is required to undertake some projects for coporate social responsibility.

ROLE OF BOARD OF DIRECTORS

the members of CSR comitee are required to create a policy for the company.

The board should ensure that the activities to be undertaken as mentioed in the policy.

The boaed of directors shall make sure that they take the net profits for the three years and

calculate it’s average and spend 2% of it.

In case the company has not completed the 3 financial year the incorporation, the average will be

calculated for the financial year since it”s incorporation.

Examples of corporate social responsibility
Corporate responsibility can cut across almost everything your business does. It can involve a

range of CSR activities, such as:

 environmental management, eg waste reduction and sustainability

 responsible sourcing, eg using only fair trade ingredients
 improvement of working standards and conditions
 contributing to educational and social programmes
 employee volunteering
 socially responsible investment
 development of employee and community relations

CSR and stakeholders

Your stakeholders are the individuals or groups that have an interest in your business and are

influenced by your actions. Different CSR strategies can help you make a positive impact on

different groups of stakeholders, including:

 Consumers - eg through fair and open business practices and good customer relations.
See how to manage your customer service.
 Suppliers - eg by choosing your suppliers carefully, looking at their labour, health, safety,
and environmental practices. See more on ethical trading.
 Communities - there are many ways to create positive change in the community, eg
through sponsoring local events, taking part in charity initiatives, volunteering, etc. See
corporate social responsibility: local community.
 Employees - responsible business practices will often aim to do more than simply comply
with the law. See staff motivation and performance.

Corporate social responsibility: environmental

impact

Corporate social responsibility (CSR) can refer to a wide range of actions that businesses may

take - from donating to charity to ethical trading. One primary focus of CSR is the environment.

What is environmental CSR?

Environmental CSR aims to reduce any damaging effects on the environment from your business

processes. Activities may focus on:

  energy use
 water use
 waste management
 recycling
 emissions
 eco-friendly office and business travel policies
Some of these are significant from both environmental and financial points of view.

Advantages of environmental CSR

Green CSR can reduce business risk, improve reputation and provide opportunities for cost

savings. Even the simplest energy efficiency measures can generate savings and make a

difference to your business. For example:

 switching off lights and equipment when not in use

 reducing the use of water
 reducing the amount of paper you waste
Caring about the environment can increase revenue too. Many customers prefer to buy from

responsible companies.

How to reduce your environmental impact

You can reduce your business' environmental impact in many ways. For example, you can:

 create products that can be recycled

 optimise your product life cycle
 source responsibly (eg using recycled materials and sustainable timber)
 reduce packaging
 buy locally to save fuel costs
 create an efficient (and fuel-efficient) distribution network
 work with environmentally conscious suppliers and distributors

What is the importance of CSR?

Let us look at the 6 important factors which highlight the importance of
Corporate Social Responsibility in India

1. Brand Value
A quick look at the top 10 brands in the world would suggest that responsibility
is at the core of their operations.A well-managed CSR program can help
increase brand equity, awareness and resonate with strong values.
Tata Group is India’s most valuable brand at $19.5 billion dollars.People
appreciate the company not only for its high-quality products but also for the
activities that they do for the greater good of the people. The company has
exceptional goodwill and the name exudes trust.
2. Increased Sales – Customer Matters

Companies that lead with a purpose are perceived positively by the customers.
According to a study,88% of the peoplesurveyed would buy products from a
responsible company. 85% of the people said that they would support the company in
their community.

Millennials and Generation Z connect with companies having a positive impact on the
communities. This engagement translates into greater sales in today’s highly
connected world. This further highlights the importance of Corporate Social
Responsibility projects.

3. Employee Retention and Engagement

There was a time when people looked at their jobs from the bread and butter
perspective alone. Today, employees look for a higher purpose other than their
monthly salary.Employees enjoy working for companies that have a positive public
image. CSR initiatives incorporate volunteering programs which foster values such as
empathy and loyalty. This leads to better team-work and camaraderie among
employees. It is a well-known fact that happy employees lead to low attrition.Godrej
Group CSR projects include a volunteering program that helps NGO’s to create
sustainable models. They are also known to run several programs that help protect
the environment. This has led to higher employee satisfaction and a positive image for
the company. No wonder it is one of the most sought after companies to work for in
India.

4. Cost Savings

In the past, operating sustainably came at a huge cost to the company. Cost savings as
one of the factors in the importance of CSR would be surprising a few years ago.
Responsible companies have found new technologies that have reduced the
operating costs. Cochin Airport in India is a very good example of sustainable
operations leading to cost savings. It is the first Airport in the world to operate completely on
solar power. It has become a pioneer and is inspiring other airports to go solar and
make this world a better place to live in.
5. Poverty Alleviation

India is home to almost 1.4 billion people and the top 1% of its population owns 73%
of the wealth. In spite of the plethora of welfare programs, the gap between the haves
and have-nots is one of the steepest in the world.

The corporate sector’s core competency is the execution of projects. They have the
talent and know-how to ensure maximum impact at minimum cost. CSR programs
bring out change at the grassroots level by harnessing this operational
efficiency.Mahindra and Mahindra’s Nanhi Kali is one of the pioneers when it comes
to CSR projects in India. The World Bank’s 2018 report states that limited educational
opportunities for girls and barriers to complete 12 years of education, cost countries
between $15 trillion and $30 trillion in lost lifetime productivity and earnings.Project
Nanhi Kali educates girls which not only empowers them but also helps their families
come out of poverty.

6. Risk Management

It is no longer a debate that social and environmental risk affect businesses in a big
way. In the long term, these factors affect the growth strategies and are completely
out of its control.

Mumbai incurred a loss of Rs 14,000 crore due to floods from 2005 to 2015 according
to a study conducted by the United States Trade and Development Agency (USTDA)
and leading accounting company KPMG. Environmental and Social factors damage the
infrastructure or lead to the loss of business hours due to absenteeism.

Depleting mangrove cover is one of the biggest reasons for flooding in Mumbai. Bajaj
Electricals’ CSR arm planted 10,000 mangroves by partnering with NGO, United Way
Mumbai (UWM) to create awareness on the importance of mangroves among the
youth.

Case study of Godrej

The strategy

We are committed to helping address critical social, environmental and economic needs of
marginalised and underprivileged sections of our communities. We do this by adopting a shared
value approach to help solve problems, while strengthening our competitive advantage.

Livelihood

Improving earning potential by building core domain skills, focusing on entrepreneurship and life
skills education, and providing post-training support

Salon-i
Training young people in beauty and hair care

Beautypreneurs
Developing beauty and wellness enterprises

Darling Hair and Beauty Skills Training

Addressing unemployment among underprivileged youth in Kenya and Nigeria through
hairdressing training

Public health

Partnering with the Indian government’s aim to make India malaria-free by 2030 by creating
awareness and driving behaviour change in high-risk rural areas

Project EMBED
Addressing the burden of malaria, dengue and chikungunya in three states by creating awareness,
driving behaviour change and providing technical support to the Government of India and state
governments
Waste management

Tackling inefficient solid waste management through partnerships with local municipalities, social
entrepreneurs and residents

Community waste management

Running community waste management projects using circular economy principles in collaboration
with local municipalities

Waste to fuel
Experimenting to convert plastic waste into fuel, and recycle forest and agri residue into briquettes
for use as biofuel

https://www.godrejcp.com/annual-report/2020-21/management-discussion-and-analysis/our-
strategic-pillars/pillar-07#Salon-i-and-Beautypreneur