INTRODUCTION:

 Corporate Governance is concerned with holding the balance

between economic and social goals and between individual and
communal goals. The corporate governance framework is there
to encourage the efficient use of resources and equally to require
accountability for the stewardship of those resources. The aim is
to align as nearly as possible the interests of individuals,
corporations and society
 Corporate social responsibility is concerned with treating the
stakeholders of the firm ethically or in a socially responsible
manner. Stakeholders exist both within a firm and outside.
Consequently, behaving socially responsibly will increase the
human development of stakeholders both within and outside the
corporation.
 There is no universally accepted definition of the word “CSR”,
the meaning and definition of CSR depends upon on mainly two
factors; Firstly, context in which it is used and secondly,
stakeholder. The difficulties in defining precisely CSR are in part
reflective of the way in which this topic has developed and the
context of its use. For some, it has grown out of corporate
philanthropy with a clear emphasis on social improvements or
strategic investment keeping in view long term goals.

For others, CSR has a much broader definition and is closely

related to the sustainable development and environment
issues
 Relationship between Corporate
Governance and CSR
 CSR is gradually getting fused into companies’ Corporate Governance
practices.
 Both Corporate Governance and CSR focus on the ethical practices in the
business and the responsiveness of an organization to its stakeholders and the
environment in which it operates.
 Corporate Governance and CSR results into better image of an organization
and directly affects the performance of an organization.
 CSR is based on the concept of self governance which is related to external
legal and regulatory mechanism, whereas Corporate Governance is a widest
control mechanism within which a company takes it management decisions.
 Contradiction between CG & CSR
 CG is related to profit maximization and protection who have provided capital
to firm
 CSR apparently in contrast of profit maximization because it suggest a set of
actions beneficial for external stake holder and may not be good for share
holder
 Managers hired focused to maximize the value of firm, would behave
unethically by being socially responsible
 They may raise external stakeholder value at the expense of shareholders
wealth maximization
Top Ten companies in India’s CSR rankings
 Tata Consultancy Services
 ITC Ltd
 Infosys Technologies
 Larsen and Toubro
 Reliance Industries
 Oil and Natural Gas Corporation
 Indian Oil Corporation
 Bharti Airtel
 Steel Authority of India Ltd
 NMDC Ltd.
 Top Ten Companies‘ in CG in India

 Colgate-Palmolive (India) Ltd.  Hindustan Unilever Ltd.

 Crisil Ltd.
 Gateway Distriparks Ltd.
 Glenmark Pharmaceuticals Ltd.
 Graphite India Ltd.
 H C L Technologies Ltd.
 H D F C Bank Ltd.
 Infosys Technologies Ltd.
 Piramal Healthcare Ltd.
 Punjab Tractors Ltd.
 South Indian Bank Ltd.
 Tata Steel Ltd
 Hexaware Technologies Ltd.
 CONCLUSION
• The re lat i onship bet we en CG & CSR are be st i nt erpret ed
by a ba ndoni ng t he st andard vi ew of the firm as a
sharehol de r val ue m axim i zer and em br aci ng t he vie w of
a firm as a s ta ke hol de r m axim i zer.

• Soci a l and et hi ca l ly responsi ble fi rms are ofte n vi ewed

as t he m ost respe ct ed a nd profit abl e firm s.

• CG & CSR are a st rong com pli m ents t o eac h ot her.

• The posi t ive rel at i on bet wee n CG & CSR on one hand and
t he m arket val ue of t he firm on t he ot her ha nd sugges t
t hat ma rke t i s some how able t o det ect t he corporat i ons
whic h are be yond the tra di ti ona l bot t om l i ne and t owards
an exte nded bot t om l i ne .
 Environmental Safeguard and
Corporate Social Responsibility
ENVIRONMENTAL PROTECTION

Environmental protection is the practice of protecting the

natural environment by individuals, organizations and
governments.

Its objectives are to conserve natural resources and the

existing natural environment and, where possible, to
repair damage and reverse trends.
CORPORATE SOCIAL RESPONSIBILITY
 Corporate social responsibility is a concept whereby
companies integrate social and environmental concerns in their business
operations and in their interaction with the stakeholders on a voluntary
basis.

 CSR is the responsibility of corporations to contribute to a better society and

cleaner environment.

 India is the first country in the world to make corporate social responsibility
(CSR) mandatory, following an
amendment to The Company Act, 201 3 in April 2014.
Businesses can invest their profits in areas such as education, poverty,
gender equality, and hunger and environmental protection.
BENEFITS OF CSR
 ENVIRONMENTAL RESPONSIBILITIES OF CORPORATES

Use of genetic material & technology transfer.

Use and handling of genetically modified organisms.
Greenhouse gas emissions and global warming.
Soil & water contamination.
Treatment and reduction of waste water.
Eco-efficiency.
Recycling and reuse of materials
Protection of forest resources.
GREEN STRATEGIES FOR CSR
 Green Buildings: The LEED certification by the Green
building Council has caused the growth of green building movement
 Emphasis on green manufacturing in order to reduce the emissions of
green house gases and environmental
pollutions.
 Green products initiatives in order to reduce the toxic chemicals.
 Product stewardship encourages everyone in the value chain to contribute
to product sustainability from
producers to regulators to retailers to consumers thereby achieving zero
waste and sustainable production.
C SR toward energy efficiency, emission reduction and biodiversity
conversation
 Innovation in alternative transportation such as hybrid vehicles and electric vehicles
by companies like Toyota, Nissan, Honda and Tesla Motors in order to curb the
greenhouse gas
emissions and reduce the environmental hazards.

 Many companies like IBM, Staples and BP are using Renewable Energy Credits (RECs)
and Solar Energy in order to support the clean energy projects.

 Companies such as Adani, IKEA, The Body Shop are promoting

Biodiversity conservation, sustainable forestry initiative,
organic farming and fair trade in order to balance the need for both business growth,
sustaining and preserving the depleting natural resources
 CSR TOWARDS SUSTAINABLE WASTE
MANAGEMENT
Towards the goal of achieving a cleaner environment, usage
of sustainable packaging materials made of biodegradable
plastics instead of PVC plastics.

Reducing or making the productive use of waste in order to

achieve the ultimate goal of zero- waste by emphasizing on
recycling.
CSR trends in India

 FY 2 0 1 5-1 6 witnessed a 2 8 percent growth in CSR spending in comparison to the

previous year.
 Listed companies in India spent U S$ 1 .23 billion ( Rs 83.45 billion) in various
programs ranging from educational
programs, skill development, social welfare, healthcare, and environment
conservation.

Controversies
 Explosion at Union Carbide Ltd-Bhopal ,India in Dec ,1984 caused thousands of
deaths and rendered many people
disableddue to leakage of MIC gas.
 Corporate Social Responsibility: examples in
india
TATA GROUP
 The Tata Group in India carries out various CSR projects, most of which are
community improvement and poverty alleviation programs. Through self-help
groups, it is engaged in women
empowerment activities, income generation, rural community development, and
other social welfare programs.

Ultratech Cement
 Ultratech Cement, India’s biggest cement company is involved in social work across
4 0 7 villages in the country aiming to
create sustainability and self-reliance. The company has
organized medical camps, immunization programs,
sanitization programs, school enrollment, plantation drives, water conservation
programs, industrial training, and organic farming programs
CSR examples in India Contd…

Mahindra & Mahindra

 Indian automobile manufacturer Mahindra & Mahindra (M&M) runs programs such
as Nanhi Kali focusing on girl education, Mahindra Pride Schools for industrial
training, and Lifeline
Express for healthcare services in remote areas.

ITC Group
 ITC Group focusing on creating sustainable livelihood and
environment protection programs. Their e-Choupal program, which aims to
connect rural farmers through the internet for procuring agriculture products,
covers 40,000 villages and
over four million farmers. Its social and farm forestry program
assists farmers in converting wasteland to pulpwood plantations.
 Exemplary GLOBAL CSR initiatives
1. XEROX – Community Involvement Program - The XCIP is the company’s longest running
program of its kind and it takes a "glocal" approach to CSR. Xerox uses this initiative to fund
employees in their local communities to make a difference on projects of their choosing.
Since 2012, they have sponsored over 18,000 projects with more than 400,000 employee
participants!

2. Chipotle and Intermarché – The Inglorious Fruit and Vegetable - Take Chipotle’s and
Intermarché’s ingenious “The Inglorious Fruit and Vegetable” campaign, aimed at reducing
waste of less-than-perfect-looking food.
How? By selling the “inglorious” produce at a 30% discount, and heavily publicizing the
initiative. They even ran an ugly fruit and vegetable contest on their Instagram page.
1. TOMS Shoes – One for One Campaign - “[...] helps address need and advance health,
education and economic opportunity for children and their communities around the world.”
Since their launch, TOMS has given 60 million shoes to children. But Mycoskie hasn’t stopped
there. He continuously launches new initiatives to address other challenges faced by
communities around the world.

2. Juntos – Education Backpack and School Supplies for Every Pair of Shoes Sold
Juntos’ initiative is based on a similar principle as TOMS - for every pair of shoes sold, the
company donates a backpack filled with school supplies to a child in Ecuador.
Each backpack includes a year’s worth of school supplies - pencils, pens, rulers, and
notebooks.
3. Levi Strauss - Workers Well Being - The company takes a unique approach to addressing
their employees’ needs. Instead of forcing new initiatives on employees, Levi’s regularly
surveys their workers to discover what they need to become more engaged, healthy, and
productive.
And based on the feedback, they partner with various NGO’s and non-profit organizations to
implement programs that deliver on the workers’ needs.

4. Twitter – The Fledgling Initiative - The Fledgling Initiative embodies two things that are at
the core of Twitter’s mission: providing access to information and highlighting the power of
open communication to bring about positive change. This initiative is just one piece of that
approach.
Thank You all...!