CSR Group 3 Final

7/30/2019 CSR Group 3 Final

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Orientation of CSR as a System/Process

& Assessment Indicators

Presented by

Prabhdeep Singh Virdi (215

Ankit Mehta (217

Krutik Dedhia (218

Atharva Oswal (219

P. Balagopal (301

Harbir Singh Banga (302

Chirag Chauhan (303

Aditya Vikram Cheema (304Rishabh Chopda (305


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Table of Contents

Introduction to CSR

Drivers of CSR & Span of CSR

Evolution of CSR

Rise in CSR Industry

Theoretical Positions

Current Trends in CSR

Dow Jones Sustainability Index

FTSE4Good Share

Impact Indicators


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WHAT IS CSR?

Corporate Social Responsibility encompasses the

economic, legal, ethical and philanthropic

expectations placed on organizations by society at a

given point of time

Corporate Social Responsiveness refers to the

capacity of a corporation to respond to socialpressures


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SOME FACTS

While 94% of the companies believe that development ofCSR strategies can deliver real business benefits only 11%made any significant progress in implementing strategy inthe organization

CEOs are failing to recognize the benefits of implementingCSR strategies despite increasing pressures to do so

CSR programmes influence 70% of all customer purchasing

decisions


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EMERGING TRENDS

Drivers are philanthropy, image building, employee moraleand ethics(in that order)

CSR an extension of philanthropy

Four models co-exist in India- the ethical model, the statistmodel, the liberal model and the stakeholder model

CSR has now moved on from being a philanthropy to asystem/process.


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Present Drivers of CSR

Stakeholder Management

Corporate Environment Management

Consumer Pressure Risk Management & Sustainability

Business Ethics

Attracting Employees Personal Values


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Drivers of CSR in Developing Nations

Source: http://www.waynevisser.com/article_waynevisser_csr_drivers.pdf
http://www.waynevisser.com/article_waynevisser_csr_drivers.pdfhttp://www.waynevisser.com/article_waynevisser_csr_drivers.pdf


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The Broad Span of CSR

At one end corporate policies required for

Good management practice within and outsidethe organizations

At the other hand

Charitable activities

ethical investments

Environmental protection

Former do not need any CSR defense

Latter can be critical for a company


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Rise of CSR Industry


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Rise of CSR Industry

Major contribution by consultancy giants like PWCand KPMG.

Developed the concept of sustainability in the year

1992.

Sustainability-The goal of CSR is to embraceresponsibility for the company's actions and

encourage a positive impact through its activities onthe environment, consumers, employees,communities, stakeholders and all other members ofthe public sphere and thus a sustainable business.


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CSR EUROPE 1996

Founded in 1996

CSR Europe has been acting as a driver for corporate socialresponsibility among the European business community.

The network brings together 64 major corporate members andreaches out across the continent through 18 national partnerorganizations with a total membership of more than 1500companies.

Econsense - forum for sustainable development is an initiative ofleading German companies and that share a common vision onthe concept of sustainability and its integration into their businessstrategies.


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CSR Europe Contd.

The forum is designed to offer a platform for

stakeholder dialogue.

It addresses a wide range of companies and

business networks, politicians as well as

NGOs, the scientific community and the

general public.


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Evolution of voluntary codes

Social Accounting-a concept describing thecommunication of social and environmental effects ofa company's economic actions to particular interestgroups within society and to society at large, is thus

an important element of CSR.

Social Auditing-The social audit is a businessstatement published every year to present a set of

information about the social projects, benefits andactions addressed to employees, investors, marketanalysts, shareholders and the community at large.


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Dow Jones Sustainability Index (DJSI)

Tracks Performance of Companies that lead the field interms of Corporate Sustainability

Sustainable Asset Management (SAM) Indexes GmbHpublishes and markets the indexes.

The DJSI family consists of a set of geographically focusedindexes.

Companies Generating Revenue from alcohol, tobacco,gambling, armaments & firearms, & adult entertainmentare excluded from the index.


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Indices in the Family

Dow Jones Sustainability World Indexes

Dow Jones Sustainability World Enlarged

Indexes

Dow Jones Sustainability Europe Indexes

Dow Jones Sustainability North America

Indexes

Dow Jones Sustainability Asia Pacific Indexes

Dow Jones Sustainability Korea Indexes


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Corporate Sustainability Concept Business approach to create long-term shareholder value

by embracing opportunities and managing risks derivingfrom economic, environmental and social developments.

Leaders harness the market's potential for sustainabilityproducts and services while at the same time successfully

reducing and avoiding sustainability costs and risks.

As a result, investors are increasingly diversifying theirportfolios by investing in companies that set industry-widebest practices with regard to sustainability.


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Corporate Sustainability Assessment


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Assessment Criteria

General

Standard management practices and performance

measures applicable to all industries,

Corporate governance, human capital

development, risk and crisis management, talent

retention and labour practices.

Forty percent of the assessment.


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Assessment Criteria

Industry Specific

Challenges and trends affecting specific industries

Reflect the economic, environmental and social

forces driving the sustainability performance of a

particular industry

Sixty percent of the assessment


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Dimension Criteria Sub Criteria

Economic

Corporate Governance Board structure

Non-Executive Chairman/Lead Director

Responsibilities and Committees

Corporate Governance PolicyAudit Conflict of Interest

Diversity: Gender

Board Effectiveness

Entrenchment provisions

Senior Management Remuneration

Risk & Crisis

Management

Risk Governance

Risk Optimization & Risk Map

Risk Review & Risk Strategy

MSA: Risk & Crisis Management

Codes of Conduct,

Compliance, Corruptionand Bribery

Codes of Conduct: Focus

Codes of Conduct: Systems/ProceduresCorruption and Bribery: Scope of Policy

Codes of Conduct: Report on Breaches

Codes of Conduct/Anti-Corruption &

Bribery: business relationships

MSA: Codes of Conduct/Compliance/

Corruption & Bribery


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Economic

(contd.)

Industry Specific Criteria Brand Management, Customer

Relationship Management, Innovation

Management, Gas Portfolio, Grid Parity,

etc.

MSA: Selected Industry Specific Criteria

Environment

Environmental Reporting Assurance

Coverage

Environmental Reporting; Qualitative Data

Environmental Reporting; QuantitativeData

Industry Specific Criteria Environmental Management Systems,

Climate Strategy, Biodiversity, Product

Stewardship, Eco-efficiency, etc.

MSA: Selected Industry Specific Criteria

Social Human Capital

Development

Human resource skill mapping and

developing process

Human Capital performance indicators

Personal and organizational learning and

development


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Social (Contd.)

Talent Attraction &

Retention

Coverage of employees through predefined

performance appraisal process

Percentage of performance related

compensation for each employee category

Balance of variable compensation based

on corporate and individual performance

Corporate Indicators for performance related

compensation

Type of individual performance appraisal

Communication of individual performance

to upper management

Payout type of total performance-related

compensation

Trend of employee satisfaction

MSA Talent Attraction & RetentionLabor Practice Indicators Grievance Resolution

Labor KPIs

MSA: Labor Practice Indicators


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Social (Contd.)

Corporate Citizenship

and

Philanthropy

Group Wide Strategy financial focus

Input

Measuring benefits

Type of Philanthropic activities

Social Reporting* AssuranceCoverage

Social Reporting; Qualitative Data

Social Reporting; Quantitative Data

Industry Specific Social Integration, Occupational Health &

Safety, Healthy Living, Bioethics, Standard

for Suppliers, etc.

MSA: selected Industry Specific Criteria


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Sources Of Information

Company Questionnaire

Most Important Source of Information & used to

decide Score

Filled by CEOs and Head of Investor Relations


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Company Documents

Sustainability reports

Environmental reports

Health and safety reports

Social reports

Annual financial reports


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Media and stakeholder Analysis (MSA)

Allows SAM to identify and assess issues that maypresent financial, reputational and compliance risks to

the assessed companies.

makes use of media coverage, stakeholdercommentaries and other publicly accessible sources.

This information is currently provided byenvironmental and social dynamic data supplierReprisk.


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Contact with Companies

SAM analysts personally contact individualcompanies

to clarify any open points that may arise from theanalysis of the MSA, the questionnaire andcompany documents.

Contact via telephone, company visits or meetings

with the company This allows SAM to respond in due course to

exceptional events.