MULUND COLLEGE OF COMMERCE

CSR AND CG PRATICE OF ICICI BANK

(A CASE STUDY ANALYSIS)

SUBJECT:ETHICS AND GOVERNANCE

PRESENTED BY,
LOHIT MUNDEWADI (187336)
YASH DESAI (187316)
CONTENTS
INTRODUCTION TO CSR AND CG
INTRODUCTION OF KOTAK MAHINDRA BANK
CSR CONTRIBUTION AND ACTIVITIES OF KOTAK MAHINDRA BANK
CG POLICIES OF KOTAK MAHINDRA BANK
CONCLUSION
 CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) is a type of business self-regulation norms, which are designed
and integrated with business model of the company.
CSR focuses on the ethical behavior of business.
It promotes transparency in conversation among the actors of the company: customers, suppliers,
shareholders, banks, insurers, also local residents, governments, communities, associations, etc.
CSR translates into ethical and transparent behavior which: Contributes to the sustainable
development, including health and welfare of the society.
Considers the expectations of stakeholders (individual or group with an interest in the judgments or
actions of an organization: suppliers, customers, shareholders, employees, communities, media, NGOs,
etc.).
Complies with the laws in force while being consistent with the international standards of behavior
(example: standards for the work of the International Labor Organization)
 BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY:
Improve Financial Performance: According to the studies of Harvard University, It is observed that
company growth rate is increased by 4 times and employee by 8 times when incorporating corporate
social responsibilities.
Improve Brand and Reputation: A social responsibility of the company plays a vital role in building
good brand and reputation. It is observed that public image of the business is improved and get
better when following its social responsibility.
Growth in Sales and Customer: A loyalty and responsibilities of the companies directly impact its
sales. For example: when customer purchase some product for first time and in case if he is not happy
due to any reason like defect, shape, color, etc. In that scenario, if company follows its responsibilities
to make customer happy with good return policies, it’s a win-win game for the business; in such cases
customer will return by experiencing company’s loyalty and hence sales will growth.
Attract and Retain Employees: Companies with strong CSR always find easier in retaining or
recruiting employees. It is easier to win the heart of employees particularly when a company is rated
on higher side for moral and social values.
ADVANTAGES OF CORPORATE SOCIAL RESPONSIBILITY:
Experience satisfaction from employee’s when working for organization which has strong
reputation in moral values.
Thousands of researches have proven that a customer attitude toward company is improved
with strong CSR.
CSR has proven that a company doesn’t have to spend money on expensive campaign’s and
advertisements. Instead company generate huge amount of free publicity and mouth
advertising.
CSR activities results are not for short term. CSR will help you to achieve long term goals of
an organization.
CSR helps you to give more success stories on business continuity plans.
It is also known as “Shaping Sustainable Society”.
ICICI BANK
ICICI Bank Limited (Industrial Credit and Investment Corporation of India) is an Indian multinational banking and financial
services company headquartered in Mumbai, Maharashtra with its registered office in Vadodara, Gujarat.
As of 2018, ICICI Bank is the second largest bank in India in terms of assets and market capitalization.
It offers a wide range of banking products and financial services for corporate and retail customers through a variety of
delivery channels and specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture
capital and asset management.
The bank currently has a network of 4867 branches and 14367 ATMs across India and has a presence in 17 countries
including India.
ICICI Bank is one of the Big Four banks of India.
The bank has subsidiaries in the United Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri
Lanka, Qatar, Oman, Dubai International Finance Centre, China and South Africa; and representative offices in United Arab
Emirates, Bangladesh, Malaysia and Indonesia.
The company's UK subsidiary has also established branches in Belgium and Germany.
 CSR POLICIES OF ICICI BANK
Corporate Social Responsibility (CSR) has been a long-standing commitment at ICICI
Bank.
The Bank’s contribution to social sector development includes several pioneering
interventions and is implemented through the involvement of stakeholders within the
Bank and through the broader community.
The Bank established the ICICI Foundation for Inclusive Growth (ICICI Foundation) in
2008 with a view to significantly expand the activities in the area of CSR.
Over the years, ICICI Foundation has developed projects in specific areas,
particularly in the area of skill development, and has built capabilities for direct
project implementation as opposed to extending financial support to other
organization.
 THE COMPOSITION OF THE CSR COMMITTEE
The Bank’s CSR Committee comprises two independent Directors and the Managing
Director & CEO of the Bank, and is chaired by an independent Director. The
composition of the Committee is set out below:
• Mr. Radhakrishnan Nair, Chairman (Chairman effective July 1, 2018)
• Mr. Dileep Choksi
• Ms. Chanda Kochhar.
• Mr. Anup Bagchi (inducted as a member effective July 1, 2018)
CSR CONTRIBUTION OF ICICI BANK
Average net profit of the company for last three financial years for FY2018 was `
8510 crore.
Prescribed CSR Expenditure (two per cent of the amount as in item 3 above) FY2018
is ` 1,702.0 crore.
Total amount to be spent for the financial year :` 1,703.8 crore.
CSR CONTRIBUTION
SOCIAL DEVELOPMENT (2017-18)
Project Description-company has contributed some amount of money for women
empowerment, promoting education, healthcare, awareness campaign, Swachh Bharat
Abhiyan and environment protection.
Implementing Partners-Direct Implementation
Project Budget: INR 2.32 Cr
Project Sector-Others
 PROJECT FOR INCLUSIVE GROWTH (2017-18)
Project Description
The ICICI Digital Villages Program takes a holistic approach to the development of rural India and
encompasses four components – skill development, establishing credit linkages, facilitating market
linkages and digitizing transactions.
This program was launched in fiscal 2017 and by the end of fiscal 2018, the Bank covered more than
600 villages across 21 states in India, as part of this initiative. One of the key goals of the Digital
Villages Program is to improve the income level of villagers by training them in locally relevant skills
and making them financially independent.
In fiscal 2018, we trained more than 87,000 individuals under this program , of whom 63% were
women. Over 75% of the trained individuals have been linked to the market for selling their products
and services.
Implementing Partner-ICICI Foundation
Project Budget: INR 56.00 Cr
Project Sector-Education, Employability and Livelihoods Enhancement
RURAL DEVELOPMENT INITIATIVE

Project Description-ICICI Foundation operates two RSETIs at Udaipur and Jodhpur as part of
a national program initiated by the Ministry of Rural Development to provide vocational
training and placement support to citizens from marginalized communities. In March 2018,
company inaugurated ICICI Green RSETI, Jodhpur, the first green RSETI in the country.
The RSETIs offers intensive full-time residential, industry relevant training and on-location
courses in various trades to participants like Lajwanti. During fiscal 2018, they trained over
15,000 youth at RSETIs. More than 60% of trainees were women.
Project Sector-Rural Development
Project Budget: INR 104.05 Cr
FINANCIAL LITERACY PROGRAM

Project Description
Financial literacy is the first step to achieve financial inclusion, creating the need to seek and
receive financial services and products. To increase awareness about organized banking and
insurance channels, ICICI Foundation provides a Financial Literacy Program. In 2012, ICICI Bank
formed a Financial Literacy and Credit Counselling center (FLCC) under ICICI Trusteeship Services
called Disha Trust. Its main objective is to increase awareness about financial products, educate
decision-making ability regarding financial products and to develop a sustainable financial system.
Implementing Partners-Disha Trust , ICICI Foundation
Project Sector-Education, Employability and Livelihoods Enhancement
Project Budget: INR 3.00 Cr
ARMED FORCES WELFARE

Project Description-The company has contributed some amount of money for benefits
of armed forces welfare.
Implementing Partners-Direct Implementation
Project Sector-Armed Forces Veteran Welfare
Project Budget: INR 5.00 Cr
WHAT IS CORPORATE GOVERNANCE?
Corporate Governance is a combination of two words.
Corporate + Governance. Corporate means any legal business entity that exists
independently by the person or people who have been granted the charter creating it, and is
vested with many of the rights given to the individual.
And Governance is a set of minimum framework or rules necessary to tackle problems.
Thus applying the concept, corporate governance is formal or informal rules that must be
followed by any legal business entity.
FEATURES OF CORPORATE GOVERNANCE
IMPORTANCE OF CORPORATE GOVERNANCE
CORPORATE GOVERNANCE OF ICICI BANK LTD.
The Corporate Governance framework at ICICI Bank lay emphasizes on adhering to
Good Corporate Governance norms.
And for its effective implementation Bank has an efficient Board which constitutes
Independent Directors, the separation of the Board’s supervisory role from the
management and the structure based on Board Committees, which are chaired by
independent Directors, to keep an eye on significant issues.
 1) Code of Commitment
ICICI Bank follows a voluntary Code, which sets minimum standards of banking practices
when they are dealing with individual customers.

2) Philosophy on Code of Corporate Governance

ICICI Bank’s Corporate Governance philosophy encapsulates regulatory, legal requirements and also
several voluntary practices which aim at a high level of business ethics for safeguarding the interest of all
related stakeholders. The Corporate Governance framework followed by the Bank also includes significant
portion of the recommendations given by the Corporate Governance Enactments and initiating regulatory
bodies.
 3) Code of Conduct and
Business Ethics
ICICI Group expects all its employees, officers and directors to act in
accordance with high professional and ethical standards.

4)Whistle Blower Policy

ICICI Bank has also introduced a Whistle Blower Policy. As per this policy,
employees of ICICI group are free to raise issues related to accounting
policies and procedures related to any area or item and report them back
to the Audit Committee through specific channels. This system has been
communicated to the employees through Bank’s intranet.
 5) Audit Committee
The Audit Committee provides direction to the audit function and monitors
the quality of internal and statutory audit.

6) Board of Directors
The Board functions either as a full Board or through various committees constituted to oversee specific
operational areas. The Board has constituted ten committees, namely, Audit Committee, Board
Governance, Remuneration & Nomination Committee, Corporate Social Responsibility Committee,
Credit Committee, Customer Service Committee, Fraud Monitoring Committee, Information Technology
Strategy Committee, Risk Committee, Share Transfer & Shareholders’/Investors’ Grievance Committee
and Committee of Executive Directors. These Board Committees other than the Committee of Executive
Directors currently consist of majority of independent Directors and most of the Committees are
chaired by independent Directors.
 7) Corporate Social Responsibility Committee

The Committee is empowered to review the corporate social responsibility initiatives undertaken by the ICICI
Group and the ICICI Foundation for Inclusive Growth, make recommendations to the Board with respect to the
corporate social responsibility initiatives, policies and practices of the ICICI Group and to review and
implement, if required, any other matter related to corporate social responsibility initiatives as recommended/
suggested by RBI or any other body.

8) Board Governance
The functions of the Committee include recommendation of appointments to the Board,
evaluation of the performance of the Managing Director & CEO and whole time Directors
on predetermined parameters, recommendation to the Board of the remuneration
(including performance bonus and perquisites) to whole time Directors, approval of the
policy for and quantum of bonus payable to the members of the staff, framing of
guidelines for the Employees Stock Option Scheme and recommendation of grant of ICICI
Bank stock options to the employees and whole time Directors of ICICI Bank and its
subsidiary companies.
CONCLUSION

ICICI Bank has adopted corporate governance with the adoption of code of conduct
for directors and senior management personnel and for prevention of insider trading,
policy on risk assessment and minimizing procedures. The ICICI Bank has also
adopted, integrity pact to enhance transparency in business, whistle blower policy,
conduct discipline and appeal rules for employees. This shows good sign of the bank.
ICICI Bank contributing more than 2% of its average profit in various sectors like
education , health , women empowerment and so on which helps in society as well as
overall development of the nation.