Corporate Social Responsibility and

Scheduled Commercial Banks in India

Overview and analysis

 Introduction

 sarva loka hitam

 Business competiveness, goodwill and inclusive

growth

 Banks as corporate citizens and capacity building

initiatives
 The idea of Indian companies going beyond business
imperatives to do something for society has undergone
remarkable changes over the years

 Time was when companies merely dispensed cash by way of

charity to organizations or NGOs engaged in social work
 “community outreach” PROGRAMMES

 The concept of corporate social responsibility (CSR) thus

evolved — from philanthropy to a more elaborate concept

that encompassed the environment, employee relations,
corporate governance and engaging with the community
 An important aspect of CSR today is the encouragement given to
employees to get involved in tackling social issues. Mother Teresa
used to tell admirers eager to offer her money: “I don’t want your
money; I want your time.” She ended up getting both
 Effective CSR today is that which relates directly to the giver’s
core competencies and offers real value, not just philanthropy
 It is no longer considered good for business, but simply good
business

when you give back to the society you operate in, you become
truly embedded in that society, rather than being perceived as
seeking profits alone
Understanding CSR

 Overview

 Analyse the CSR initiatives

 Study the challenges and concerns of CSR

initiatives
 Overview of CSR

 In 1953, Howard Bowen ....

 Nobel laureate Milton Friedman’s ...

 CSR has emerged as an inescapable priority for

business leaders ....
 “The obligations of business to pursue those policies, to make
those decisions or to follow those lines of action which are
desirable in terms of the objectives and values of our society
(Bowen, 1953)”
 Nobel laureate Milton Friedman’s beliefs that "there is only one
responsibility of business, namely to use its resources and
engage in activities designed to increase its profits (Friedman,
1970)”
 CSR has emerged as an inescapable priority for
business leaders in every country, infact csr can be
much more than a cost,a constraint or a charitable
deed, it can be a source of opportunity, innovation
and competitive advantage (Porter)
 CSR implies a concept

 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 its stakeholders and society in general
in a voluntary way
 CEO of JP Morgan…
 Banking on social responsibility

 "The foundation of corporate responsibility is a deep

sense of accountability to our communities

 That accountability starts with building a business by

doing the right things. That includes treating customers
and employees with the respect they deserve, developing
and marketing safe and useful products, returning a fair
profit to shareholders, and attracting and retaining
talented people
 And if we do all of these things well we create jobs around
the world

 We also create business for vendors, business partners and

others, which collectively drive economic growth and create
opportunity. And we return fair profits to all of our investors,
which includes individuals and pension funds who count on
us for their retirement income," said Dimon
 Banks to integrate sustainability into their core business
operations
 Charity is not sustainability

 Inclusive growth is not possible without sustainability

 “SIDBI’s goal is to promote sustainability, both by practicing
responsible business behavior itself and requiring the same
from its MSME clients”
 CSR Initiatives by Indian Banks

 The Indian Banking industry is always concerned

with society, stakeholders and sustainable banking
business
 Relevance of CSR for Banking Sector

 Banks to act as responsible corporate citizens in the

society

 Banks must serve a social purpose otherwise, they will

become irrelevant and unsustainable

 The Reserve Bank of India issued a circular dated 20

December 2007
 The Reserve Bank of India (RBI), being the regulator of
banks and banking operations, issued a circular dated 20
December 2007 ..

 Considering the lack of adequate awareness about CSR

among the financial institutions, RBI issued the said
circular, inter alia, suggesting the following to banks and
financial institutions in regards CSR policy
 Frame a plan of action towards helping the cause of
sustainable development with the approval of their boards

 Banks/financial institutions should keep themselves abreast

of developments in CSR and modify their strategies/plans
in light of such developments

 Publish in a public domain their annual accounts and the

progress they have made with CSR policies
Multifarious Initiatives towards
CSR
 Banks and Three CSR areas

 Allahabad Bank Farmer's welfare, Vocational Training,

Finance to under-served areas and people

 Andhra Bank Vocational Training, Rural Development,

Community Welfare
 Bank of Baroda Rural development, Women's empowerment,
Vocational training
 Bank of India Credit Counselling, Vocational Training
 Bank of Maharashtra Rural Development, Livelihoods training,
Agriculture and farming
 Canara Bank Rural Development, Women's empowerment,
Education and employment
 Indian Bank Rural development, Poverty eradication,
Sports
 Punjab National Bank Community Welfare, Vocational
training, Poverty Eradication
 Syndicate Bank Rural Development, Education,
Community Welfare
 Union Bank Rural development, Community welfare,
Poverty eradication
CSR and Positive Outcomes to
Banking Industry
Analysis of initiatives by SCBs and
Development Banks (STUDENTS
INPUTS..)
 Public Sector Banks

 Private Sector Banks

 Foreign Banks
Case Study of YES BANK

 Csr initiatives
 Summary of the broad concerns
raised by the Senior Banking
Officials
Case study
AVs

 https://youtu.be/eUZtKMwfwlM

 https://youtu.be/Ha1gdmorggs

 https://youtu.be/DKIrFrCpQRM