What is Corporate Social Responsibility 1

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CSR IS FAST BECOMING ABENCHMARK FOR THEIMAGE & HENCEINDIRECTLY PROFITABLE

SUBMITTED TO:-SUBMITTED BY:-

ASEEM RASTOGISAROSH ABDULLAH

APOORV KAPOOR

BBA- VI SEM

CSR IS FAST BECOMING ABENCHMARK FOR THEIMAGE & HENCEINDIRECTLY PROFITABLE

SUBMITTED TO:-SUBMITTED BY:-

ASEEM RASTOGISAROSH ABDULLAH

APOORV KAPOOR

BBA- VI SEM

200

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INSTITUTE OF MANAGEMENTSCIENCES

LUCKNOW UNIVERSITY4/12/2009


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What is corporate social responsibility?

Corporate Social Responsibility (CSR), also known as corporate responsibility,corporate citizenship, responsible business and corporate social performance is aform ofcorporateself-regulation integrated into a business model. Ideally, CSRpolicy would function as a built-in, self-regulating mechanism whereby businesswould monitor and ensure their adherence to law, ethical standards, andinternational norms. Business would embrace responsibility for the impact of theiractivities on the environment, consumers, employees, communities, stakeholdersand all other members of the public sphere. Furthermore, business wouldproactively promote the public interest by encouraging community growth anddevelopment, and voluntarily eliminating practices that harm the public sphere,regardless of legality. Essentially, CSR is the deliberate inclusion ofpublic interestinto corporate decision-making, and the honoring of a triple bottom line: People,Planet, Profit.

Development

Business ethics is one of the forms ofapplied ethics that examines ethical principlesand moral or ethical problems that can arise in a business environment.

In the increasingly conscience-focused marketplaces of the 21st century, thedemand for more ethical business processes and actions (known as ethicism) isincreasing. Simultaneously, pressure is applied on industry to improve businessethics through new public initiatives and laws (e.g. higher UK road tax for higher-emission vehicles).

Business ethics can be both a normative and a descriptive discipline. As a corporatepractice and a career specialization, the field is primarily normative. In academia,descriptive approaches are also taken. The range and quantity of business ethicalissues reflects the degree to which business is perceived to be at odds with non-economic social values. Historically, interest in business ethics accelerateddramatically during the 1980s and 1990s, both within major corporations and withinacademia. For example, today most major corporate websites lay emphasis oncommitment to promoting non-economic social values under a variety of headings(e.g. ethics codes, social responsibility charters). In some cases, corporations have

re-branded their core values in the light of business ethical considerations (e.g. BP's"beyond petroleum" environmental tilt).

The term CSR came in to common use in the early 1970s although it was seldomabbreviated. The term stakeholder, meaning those impacted by an organization'sactivities, was used to describe corporate owners beyond shareholders as a result ofan influential book by R Freeman in 1984. [2]

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Whilst there is no recognized standard for CSR, public sector organizations (theUnited Nations for example) adhere to theTriple Bottom Line (TBL). It is widelyaccepted that CSR adheres to similar principals but with no formal act of legislation.

Approaches

Some commentators have identified a difference between the Continental Europeanand the Anglo-Saxon approaches to CSR.[3] And even within Europe the discussionabout CSR is very heterogeneous.[4]

An approach for CSR that is becoming more widely accepted is community-baseddevelopment projects, such as the Shell Foundation's involvement in the FlowerValley, South Africa. Here they have set up an Early Learning Centre to helpeducate the community's children, as well as develop new skills for the adults.Marks and Spencer is also active in this community through the building of a tradenetwork with the community - guaranteeing regular fair trade purchases. Oftenalternative approaches to this is the establishment of education facilities for adults,as well as HIV/AIDS education programmes. The majority of these CSR projects areestablished in Africa. A more common approach of CSR is through the giving of aidto local organizations and impoverished communities in developing countries. Someorganizationsdo not like this approach as it does not help build on the skills of thelocal people, whereas community-based development generally leads to moresustainable development.

Social accounting, auditing and reporting

Taking responsibility for its impact on society means in the first instance that acompany accounts for its actions. Social accounting, a concept describing thecommunication of social and environmental effects of a company's economicactions to particular interest groups within society and to society at large, is thus animportant element of CSR.

A number of reporting guidelines or standards have been developed to serve asframeworks for social accounting, auditing and reporting:

AccountAbility's AA1000 standard, based onJohn Elkington's triple bottomline (3BL) reporting

Accounting for Sustainability's Connected Reporting Framework. Global Reporting Initiative's Sustainability Reporting Guidelines GoodCorporation's Standard developed in association with the Institute of

Business Ethics Green Globe Certification / Standard Social Accountability International's SA8000 standard The ISO 14000 environmental management standard

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The United Nations Global Compact promotes companies reporting in theformat of a Communication on Progress (COP). A COP report describes thecompany's implementation of the Compact's ten universal principles.

The United NationsIntergovernmental Working Group of Experts onInternational Standards of Accounting and Reporting (ISAR) providesvoluntary technical guidance on eco-efficiency indicators,corporate

responsibility reporting and corporate governance disclosure. Verite's Monitoring Guidelines

The FTSE Group publishes the FTSE4Good Index, an evaluation of CSR performanceof companies.

In some nations legal requirements for social accounting, auditing and reportingexist (e.g. in the French bilan social), though agreement on meaningfulmeasurements of social and environmental performance is difficult. Manycompanies now produce externally audited annual reports that cover SustainableDevelopment and CSR issues ("Triple Bottom Line Reports"), but the reports varywidely in format, style, and evaluationmethodology (even within the sameindustry). Critics dismiss these reports as lip service, citing examples such asEnron's yearly "Corporate Responsibility Annual Report" and tobacco corporations'social reports.

Potential business benefits

The scale and nature of the benefits of CSR for an organization can vary dependingon the nature of the enterprise, and are difficult to quantify, though there is a largebody of literature exhorting business to adopt measures beyond financial ones (e.g.,Deming's Fourteen Points, balanced scorecards). Orlitzky, Schmidt, and Rynes]

found a correlation between social/environmental performance and financialperformance. However, businesses may not be looking at short-run financial returnswhen developing their CSR strategy.

The definition of CSR used within an organization can vary from the strict"stakeholder impacts" definition used by many CSR advocates and will often includecharitable efforts and volunteering. CSR may be based within the human resources,business development or public relations departments of an organisation, or may begiven a separate unit reporting to the CEO or in some cases directly to the board.Some companies may implement CSR-type values without a clearly defined team orprogramme.

The business case for CSR within a company will likely rest on one or more of thesearguments:

Human resources

A CSR programme can be an aid to recruitment and retention, particularly withinthe competitive graduate student market. Potential recruits often ask about a firm'sCSR policy during an interview, and having a comprehensive policy can give an

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advantage. CSR can also help to improve the perception of a company among itsstaff, particularly when staff can become involved through payroll giving,fundraising activities or community volunteering.

Risk management

Managing risk is a central part of many corporate strategies. Reputations that takedecades to build up can be ruined in hours through incidents such as corruptionscandals or environmental accidents. These events can also draw unwantedattention from regulators, courts, governments and media. Building a genuineculture of 'doing the right thing' within a corporation can offset these risks.

Brand differentiation

In crowded marketplaces, companies strive for a unique selling proposition that canseparate them from the competition in the minds of consumers. CSR can play a rolein building customer loyalty based on distinctive ethical values. Several majorbrands, such asThe Co-operative Group,The Body Shop and American Apparel arebuilt on ethical values. Business service organizations can benefit too from buildinga reputation for integrity and best practice.

License to operate

Corporations are keen to avoid interference in their business through taxation orregulations. By taking substantive voluntary steps, they can persuade governmentsand the wider public that they are taking issues such as health and safety, diversityor the environment seriously, and so avoid intervention. This also applies to firmsseeking to justify eye-catching profits and high levels of boardroom pay. Thoseoperating away from their home country can make sure they stay welcome by beinggood corporate citizens with respect to labour standards and impacts on theenvironment

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corporate strategy. Companies have CSR teams that devise specific policies,strategies and goals for their CSR programs and set aside budgets to support them.

These programs, in many cases, are based on a clearly defined social philosophy orare closely aligned with the companies business expertise. Employees become thebackbone of these initiatives and volunteer their time and contribute their skills, to

implement them. CSR Programs could range from overall development of acommunity to supporting specific causes like education, environment, healthcareetc.

For example, organizations like Bharath Petroleum Corporation Limited, MarutiSuzuki India Limited, and Hindustan Unilever Limited, adopt villages where theyfocus on holistic development. They provide better medical and sanitation facilities,build schools and houses, and help the villagers become self-reliant by teachingthem vocational and business skills.

On the other hand GlaxoSmithKline Pharmaceuticals CSR programs primarily focus

on health and healthy living. They work in tribal villages where they provide medicalcheck-up and treatment, health camps and health awareness programs. They alsoprovide money, medicines and equipment to non-profit organizations that worktowards improving health and education in under-served communities.

Many CSR initiatives are executed by corporates in partnership with Non-governmental organizations (NGOs) who are well versed in working with the localcommunities and are experts in tackling specific social problems.

For example, SAP India in partnership with Hope Foundation, an NGO that works forthe betterment of the poor and the needy throughout India, has been working onshort and long-term rebuilding initiatives for the tsunami victims. Together, they

also started TheSAP Labs Center of HOPE in Bangalore, a home for streetchildren, where they provide food, clothing, shelter, medical care and education.CSR has come a long way in India. From responsive activities to sustainableinitiatives, corporates have clearly exhibited their ability to make a significantdifference in the society and improve the overall quality of life. In the current socialsituation in India, it is difficult for one single entity to bring about change, as thescale is enormous. Corporates have the expertise, strategic thinking, manpower andmoney to facilitate extensive social change. Effective partnerships betweencorporates, NGOs and the government will place Indias social development on afaster track.

CSR

initiatives

of Genpact

Caring@Genpact is our global Corporate Social Responsibility (CSR)

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initiative, and is embedded in our corporate culture and integrated with core

business objectives to deliver social and environmental returns. It involves us

as individuals as well as our company wide effortsa cross functional

stakeholder involvement to institutionalize CSR.

Towards this goal, we have a number of global platforms and programs

designed to make giving a way of life at Genpact and empower us to help

build stronger communities where we live and work:

A) Employee Engagement

B) Business Basics

C) Social Investments

A) Employee Engagement: Mobilizing corporate citizenship and unleashing

the potential of our employees.

1) Genpact Payroll Giving Program for Employee

Donations: Flexible and transparent platforms that

enable employees to donate a small partof theirsalary to credible local charities with convenience

and confidence. While these programs are

completely voluntary, and employees have the

option to change or discontinue their monthly contribution, today, about

5000 employees across India, Mexico and Romania are cumulatively

donating close to USD $250,000 a year!

2) Genpact Volunteers: Genpact has an active

volunteer base at each site committed to delivering

local community impact in a more hands-on way.

Over 80 Global Community Champions have been

nominated across 35 sites to catalyze this change

and design effective community outreach programs

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supporting a wide range of causes and NGOs.

We encourage skill-based volunteering (programs that 'Teach a man to fish'

versus simply Giving a man a fish') and strive for long-term partnershipsthat deliver measurable and sustainable community impact.

In an effort to digitize and streamline this initiative,

we have partnered with Angelpoints, a global

leader in on-demand Corporate Social

Responsibility Management (CSRM), to deploy an

enterprise-wide, web-based, volunteer manage

-ment solution .This is an online networking systemfor community engagement and a volunteer management workflow tool that

connects employees across the world with local volunteer opportunities in

their communities.

B) Business Basics: Embedding the social and environmental code of conduct

into our core operations and functions.

1) Inclusive Employment: By philosophy,

Genpact is an equal opportunity, affirmative

employer. We base our employment

decisions on merit, experience and potential

without regard to race, color, national origin,

sex, marital status, age, religion, disability or

sexual orientation.

We have initiated efforts to proactively source, hire, mainstream and

integrate people with disabilities: Targeted hiring drives, front-line

sensitization training, job mapping to scope opportunities, facilities access

audits, and participation in job fairs for differently-abled talent.

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Approximately 40% of global headcount and 35% of Indian headcount

constitute women. Globally, our employees speak 30+ languages and

represent 50+ nationalities. In India, our diverse workforce represents nearly

all states/regions.

2) Going Green: Initiatives to "Green" our supply chain and facilities

Ongoing campaigns to recycle, reduce waste and conserve energy.

Investment in latest technologies to improve our power efficiency and

minimize environmental releases - year on year reduction in power

consumption in each of our sites.

Platinum rated Green Buildings for all our newly constructed owned sites

Our commitment towards achieving environmental excellence at par with

world class standards has been recently acknowledged through the

achievement of ISO-14001 certification by BSI for all our India sites.

Process to donate old computers and IT equipment

eWaste elimination practices

3) Awareness Building in Future Leaders: Community Service is

recommended in our BUILD leadership development programs, and

volunteer events are held during leadership trainings.

Criticisms and concerns

The practice of CSR is subject to much debate and criticism. Proponents argue thatthere is a strong business case for CSR, in that corporations benefit in multiple waysby operating with a perspective broader and longer than their own immediate,short-term profits. Critics argue that CSR distracts from the fundamental economicrole of businesses; others argue that it is nothing more than superficial window-

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dressing; others argue that it is an attempt to pre-empt the role of governments asa watchdog over powerful multinational corporations.Critics of CSR as well asproponents debate a number of concerns related to it. These include CSR'srelationship to the fundamental purpose and nature of business and questionablemotives for engaging in CSR, including concerns about insincerity and hypocrisy.

CSR and the nature of business

Corporations exist to provide products and/or services that produce profits for theirshareholders. Milton Friedman and others take this a step further, arguing that acorporation's purpose is to maximize returns to its shareholders, and that since (intheir view), only people can have social responsibilities, corporations are onlyresponsible to their shareholders and not to society as a whole. Although theyaccept that corporations should obey the laws of the countries within which theywork, they assert that corporations have no other obligation to society. Somepeople perceive CSR as incongruent with the very nature and purpose of business,and indeed a hindrance to free trade. Those who assert that CSR is incongruent withcapitalism and are in favor ofneoliberalism argue that improvements in health,longevity and/or infant mortality have been created by economic growth attributedto free enterprise.

Critics of this argument perceive neoliberalism as opposed to the well-being ofsociety and a hindrance to human freedom. They claim that the type of capitalismpracticed in many developing countries is a form of economic and culturalimperialism, noting that these countries usually have fewer labor protections, andthus their citizens are at a higher risk of exploitation by multinational corporations.

A wide variety of individuals and organizations operate in between these poles. Forexample, the REALeadership Alliance asserts that the business of leadership (be it

corporate or otherwise) is to change the world for the better. Many religious andcultural traditions hold that the economy exists to serve human beings, so alleconomic entities have an obligation to society (e.g., cf. Economic Justice for All).Moreover, as discussed above, many CSR proponents point out that CSR cansignificantly improve long-term corporate profitability because it reduces risks andinefficiencies while offering a host of potential benefits such as enhanced brandreputation and employee engagement.

CSR and questionable motives

Some critics believe that CSR programs are undertaken by companies such asBritish American Tobacco (BAT), the petroleum giant BP (well-known for its high-

profile advertising campaigns on environmental aspects of its operations), andMcDonald's (see below) to distract the public from ethical questions posed by theircore operations. They argue that some corporations start CSR programs for thecommercial benefit they enjoy through raising their reputation with the public orwith government. They suggest that corporations which exist solely to maximizeprofits are unable to advance the interests of society as a whole.

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Another concern is when companies claim to promote CSR and be committed toSustainable Development whilst simultaneously engaging in harmful businesspractices. For example, since the 1970s, the McDonald's Corporation's associationwith Ronald McDonald House has been viewed as CSR and relationship marketing.More recently, as CSR has become mainstream, the company has beefed up its CSRprograms related to its labor, environmental and other practices All the same, in

McDonald's Restaurants v Morris & Steel, Lord Justices Pill, May and Keane ruledthat it was fair comment to say that McDonald's employees worldwide 'do badly interms of pay and conditions' and true that 'if one eats enough McDonald's food,one's diet may well become high in fat etc., with the very real risk of heart disease.'

Shell has a much-publicised CSR policy and was a pioneer in triple bottom linereporting, but this did not prevent the 2004 scandal concerning its misreporting ofoil reserves, which seriously damaged its reputation and led to charges ofhypocrisy. Since then, the Shell Foundation has become involved in many projectsacross the world, including a partnership with Marks and Spencer (UK) in threeflower and fruit growing communities across Africa.

Critics concerned with corporate hypocrisy and insincerity generally suggest thatbetter governmental and international regulation and enforcement, rather thanvoluntary measures, are necessary to ensure that companies behave in a sociallyresponsible manner.

Drivers

Corporations may be influenced to adopt CSR practices by severaldrivers:-

Ethical consumerism

The rise in popularity ofethical consumerism over the last two decades can belinked to the rise of CSR. As global population increases, so does the pressure onlimited natural resources required to meet rising consumer demand.Industrialization in many developing countries is booming as a result of technologyand globalization. Consumers are becoming more aware of the environmental andsocial implications of their day-to-day consumer decisions and are beginning tomake purchasing decisions related to their environmental and ethical concerns.However, this practice is far from consistent or universal.

Globalization and market forces

As corporations pursue growth through globalization, they have encountered newchallenges that impose limits to their growth and potential profits. Governmentregulations, tariffs, environmental restrictions and varying standards of whatconstitutes labour exploitation are problems that can cost organizations millions ofdollars. Some view ethical issues as simply a costly hindrance. Some companies useCSR methodologies as a strategic tactic to gain public support for their presence inglobal markets, helping them sustain a competitive advantage by using their social

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contributions to provide a subconscious level of advertising.Global competitionplaces particular pressure on multinational corporations to examine not only theirown labour practices, but those of their entire supply chain, from a CSR perspective.

Social awareness and education

The role among corporate stakeholders to work collectively to pressure corporationsis changing. Shareholders and investors themselves, through socially responsibleinvesting are exerting pressure on corporations to behave responsibly. Non-governmental organizations are also taking an increasing role, leveraging the powerof the media and the Internet to increase their scrutiny and collective activismaround corporate behavior. Through education and dialogue, the development ofcommunity in holding businesses responsible for their actions is growing.

Ethics training

The rise of ethics training inside corporations, some of it required by government

regulation, is another driver credited with changing the behaviour and culture ofcorporations. The aim of such training is to help employees make ethical decisionswhen the answers are unclear. Tullberg believes that humans are built with thecapacity to cheat and manipulate, a view taken from , hence the need for learningnormative values and rules in human behaviour. The most direct benefit is reducingthe likelihood of "dirty hands", fines and damaged reputations for breaching laws ormoral norms. Organizations also see secondary benefit in increasing employeeloyalty and pride in the organization. Caterpillar and Best Buy are examples oforganizations that have taken such steps.

Increasingly, companies are becoming interested in processes that can add visibilityto their CSR policies and activities. One method that is gaining increasing popularity

is the use of well-grounded training programs, where CSR is a major issue, andbusiness simulations can play a part in this.

Laws and regulation

Another driver of CSR is the role of independent mediators, particularly thegovernment, in ensuring that corporations are prevented from harming the broadersocial good, including people and the environment. CSR critics such as Robert Reichargue that governments should set the agenda for social responsibility by the wayof laws and regulation that will allow a business to conduct themselves responsibly.

The issues surrounding government regulation pose several problems. Regulation in

itself is unable to cover every aspect in detail of a corporation's operations. Thisleads to burdensome legal processes bogged down in interpretations of the law anddebatable grey areas. General Electric is an example of a corporation that has failedto clean up the Hudson River after contaminating it with organic pollutants. Thecompany continues to argue via the legal process on assignment of liability, whilethe cleanup remains stagnant. The second issue is the financial burden thatregulation can place on a nation's economy. This view shared by Bulkeley, who citesthe Australian federal government's actions to avoid compliance with the Kyoto

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Protocol in 1997, on the concerns of economic loss and national interest. TheAustralian government took the position that signing the Kyoto Pact would havecaused more significant economic losses for Australia than for any other OECDnation.Critics of CSR also point out that organisations pay taxes to government toensure that society and the environment are not adversely affected by businessactivities.

Crises and their consequences

Often it takes a crisis to precipitate attention to CSR. One of the most active standsagainst environmental management is the CERES Principles that resulted after theExxon Valdez incident in Alaska in 1989. Other examples include the lead poisoningpaint used by toy giant Mattel, which required a recall of millions of toys globallyand caused the company to initiate new risk management and quality controlprocesses. In another example, Magellan Metals in the West Australian town ofEsperance was responsible for lead contamination killing thousands of birds in thearea. The company had to cease business immediately and work with independentregulatory bodies to execute a cleanup.

Stakeholder priorities

Increasingly, corporations are motivated to become more socially responsiblebecause their most important stakeholders expect them to understand and addressthe social and community issues that are relevant to them. Understanding whatcauses are important to employees is usually the first priority because of the manyinterrelated business benefits that can be derived from increased employeeengagement (i.e. more loyalty, improved recruitment, increased retention, higherproductivity, an so on). Key external stakeholders include customers, consumers,investors (particularly institutional investors, regulators, academics, and the media).

Corporate Social Responsibility (CSR) agenda of a corporation is reflective of its

social conscience and commitments to the community and society at large within

which it operates. It is no more viewed as a liability on corporate resources. More

and more Companies have increasingly realized that it is an investment with

multiple benefits for the corporate sector. Various empirical research findings

clearly pointing to a strong positive correlation between CSR and corporate

profitability have further provided the impetus.

Smile Foundation - wherever it has reached in its journey in the recent years, it is

because of the support from socially responsible corporate and institutions who

have believed in our social commitment and have come forward to join hands !

Smile Foundation has received support and encouragement from around 70 odd

corporate and institutions under various welfare initiatives across federal India.

Tata Steel, world's sixth largest steel maker on Wednesday said it has bagged the

'Golden Peacock' award for 2009 for its corporate social responsibility initiatives.

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"The notion of social stewardship is integral to the company's business endeavours

in the areas where it operates.

CSR is an integral components of Tata Steel's business strategy," the steel maker

said in a statement.

The Golden Peacock Awards Jury, under the co-chairmanship of former Prime

Minister of Sweden Ola Ullsten and former chief justice of India P N Bhagwati,

conferred the award to Tata Steel at the 4th Global Conference on Social

Responsibility in Vilamoura, Portugal, it said.

The award was collected by Corus International Portugal Country Manager Claudia

Esteves on behalf of Tata Steel, it added.

However, Corporate Institutions in India, though more sensitive towards CSR as

compared to elsewhere, with all the resources at their command, remain

constrained in terms of their reach; both geographically and demographically. Their

efforts appear insignificant in light of the size of our country and diverse, multipleproblems therein.

Smile Foundation is a National Level Development Organisation, registered as an

Indian Charitable Trust, initiated by a group of young professionals from corporate

and business sectors. The Foundation supports children centric welfare initiatives of

NGOs across 21 States of India. The Foundation, itself a living example of Corporate

Social Responsibility (CSR), very genuinely believes in and passionately advocates

for a more proactive and vital role of corporate organisations in the developmental

plane for greater mutual benefits.

Following the model of Social Venture Philanthropy, SMILE seeks out socialentrepreneurs with innovative ideas, vision and passion, running genuine grassroots

initiatives and making significant contributions with low cost. In the process SMILE

happens to be the first ever grant maker in over 75% of organisations it supports

across the country.

Smile Foundation earnestly believes that (Corporate Social Responsibilities) CSR

agenda stands to gain immensely through fostering and strengthening corporate-

civil society partnerships in development missions. The Foundation, therefore,

actively seeks to network and forge partnerships with like minded corporate

organisations and premier institutions in India as well as across the world.

Smile Foundations commitment to CSR has been duly recognized by a host of

organisations like Caterpillar, Barclays, Microsoft, UPS Inc., Xansa, Associated

Chambers of Commerce and Industry of India (ASSOCHAM), Confederation of Indian

Industry (CII), CVENT, Sandwood Infratech, to name a few.

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Besides working for promoting and strengthening CSR in the country, the

Foundation also provides Social Exposure, Awareness and Orientation Programmes

for Management students the future corporate Leaders.

Smile Foundation very genuinely believes in a more proactive corporate sector and

passionately advocates for promoting and strengthening CSR agenda. Also a vibrantcorporate-civil society partnership is what the Foundation strives for in view of

NGOs going (working in) outreach with commitments and community support

Tata Steel, world's sixth largest steel maker on Wednesday said it has bagged the

'Golden Peacock' award for 2009 for its corporate social responsibility initiatives.

"The notion of social stewardship is integral to the company's business endeavours

in the areas where it operates.

CSR is an integral components of Tata Steel's business strategy," the steel maker

said in a statement.

The Golden Peacock Awards Jury, under the co-chairmanship of former Prime

Minister of Sweden Ola Ullsten and former chief justice of India P N Bhagwati,

conferred the award to Tata Steel at the 4th Global Conference on Social

Responsibility in Vilamoura, Portugal, it said.

The award was collected by Corus International Portugal Country Manager Claudia

Esteves on behalf of Tata Steel, it added.

The World Business Council for Sustainable Development states Corporate

Social Responsibility is the continuing commitment by business to behave ethically

and contribute to economic development while improving the quality of life of theworkforce and their families as well as of the local community and society at

large .

The corporate world today should realize that Corporate Social Responsibility, CSR,

is not an option any more, it is a compulsion. It is much more than giving press

releases that it has installed 5 water pumps in a village or donated 500 text books

to illiterate children. It is about sustenance and growth. CSR should be taken

beyond the realm of charity and just philanthropy. Corporations often spend money

on community projects, extend scholarships and establish foundations thereby

create goodwill and enhance the reputation of the business and strengthen its

brand.

Many business houses see CSR as an opportunity to boost the brand image of their

companies. Partnership with NGOs is mainly used to build the image of the

company; money is spent more and more on promotional activities which are well

publicised. The companys commitment starts and ends at that.

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There are some who think that generation of maximum profits for the stakeholders

within the ambit of rules and regulations of the government is the concept of CSR

activities. They think that spending corporate resources for the benefit of social

causes rather than maximizing shareholder value is foolish and to be avoided.

In India we are beset with problems owing to stark poverty, despite all thehullaballoo about the economic liberalization. Can corporate world be oblivious to

this pathetic fact? Most of the MNCs or domestic companies, for that matter, are

adopting CSR activities aping their counterparts in the developed world. However, in

developed countries, the system works with good governance and reasonable level

of public participation. In India, experiencing good governance is still non-existent.

Despite all the hype about the largest democracy in the world, only a minuscule of

the political class take part in solving social problems, and that too almost always

with ulterior selfish motives. That is the reason, why the corporate worlds need

broader and holistic approach in adopting and standardising CSR activities.

Investing in highly controversial SEZs for the sake of Indias development doesnot seem to be ideal CSR while ignoring the needs of the poor whose lands have

been taken over. Paying compensation in lieu of their land does not absolve them of

responsibility. It would be rather that the land donors be taken as shareholders and

made partners like the investors and share their prosperity. Such strategy in the

CSR of these companies could readily win over the poor.

When we still have a dismal educational system and when millions in India still

remain illiterate, companies sing their own praise that they have contributed to

start some schools or gave money for scholarships or donated books for the

students. This is not involvement; this is just donation for some programmes that

are eternally in need of resources. A comprehensive CSR should strive to adopt theprinciple of teaching how to fish rather than just giving out fish to temporary satiate

the hunger.

We should remember that CSR is not a subsidiary responsibility of a corporate body,

but a complementary responsibility that aims to add value to its operations.

Here are some salient CSR initiatives taken by few companies:-

#Focus on employee welfare in 16 hours away from work at Tata Steel & Orchid.

#Focus on reduction of infant mortality rate, education, micro-finance andleveraging technology by ICICI Bank & Tata Steel.

#Focus on employee and family health & welfare at BILT.

#Conduct of Environmental Impact Assessment and Public Consultation for its

pipeline projects in the planning phase demonstrates GSPLs commitment to

integrate environment & safety concerns from the outset.

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#Supplementing government initiatives in education, rural infrastructure, health

(mobile health clinic) and empowerment at Tata steel & Orchid.

#Adoption of villages to make them fully self reliant and replication of such model

villages across India Aditya Birla Group companies.

The late Aditya Birla caused a paradigm shift in CSR when he had stated We should

help people in a way that they are able to stand on their own feet and earn money

continuously. In this way their livelihood is never at stake. He further echoed that

famous saying.If you give a hungry man fish one day, he will eat it and the next day

he will be starving again. Instead, if you teach him to fish, he will never go hungry

during his lifetime.

Its heartening to note that quite a few companies have accepted this universal

ethos as far as formulating their CSR activities. One such group companies have

been Satyam; the latest corporate scam, notwithstanding.

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Documents

What is Corporate Social Responsibility 1