AN INSIGHT INTO CORPORATE CITIZENSHIP OF MANUFACTURING CONCERNS

Swathi S. UpadhyaPoornaprajna Institute of Management, Udupiswathisupadhya@gmail.com

Research Design• Primary Source : Collected through visiting companies• Secondary Source: Collected through articles and researches

Objectives• To understand the concept of CSR and Environmental

Sustainability • To review the literature regarding the CSR & ES• To understand the CSR initiatives in Manufacturing Sector• To glance over the two Manufacturing Concerns’ CSR initiatives

INTRODUCTION

• In olden days management – survival through profit, nowadays – through managing financial and non-financial results

• Social Responsibility – Business does over and above statutory requirements

• Corporate Sustainability – Development that meets the needs of the present without compromising the ability of future generations to meet their own needs

Literature Review

• The first Study in India – “Corporate Social Reporting in India” – 33 index- “Environmental control measures” (Singh and Ahuja,1983)

• A comparative study – Indian executives agreed – business has responsibility not only to stakeholders but also to environment (Khan and Atkinson)

• “BSR/Globe Scan State of Sustainable Business Poll, 2009 – climate change and human rights were the most significant priorities for Business Sustainability efforts

CSR and ES at Manufacturing Concern

• Reviewing studies-found that limited study in this sector focusing CSR & ES

• Stakeholder concept - important in CSR • Indian manufacturing companies – pressure by stakeholder to

concentrate to CSR• Manufacturing concern – using natural properties• Should concentrate – saving and sustaining environment and its

precious resources.

KIOCL

• Vision: Be a responsible Corporate Citizen deeply committed to Socio –Economic Development of the society.

• Mission: Actively contribute to the Socio – Economic development of the Communities. In doing so build a better sustainable way of life for the weaker section of the society.

(CSR policy of KIOCL)

Focus Areas• Poor population• Education enhancement-special education & employment enhancing

vocation skills• Gender equality – women empowerment• Ensuring environmental sustainability, ecology balance• Protection of national heritage, art and culture • Measures for the benefit of armed forces• Training to promote rural sports, nationally recognized sports, Paralympic

sports and Olympic sports • Rural Development Problems

• Contribution to PM’s National Relief Fund, any other fund by central Govt. welfare of SC, ST other backward classes, minorities, women

• CSR Expenditure – minimum 2% of the average net profits during the three immediately preceding financial years

• Well versed waste disposal method

MTL

• MTL CSR policy – responsibility as a corporate citizen- guidelines & mechanism-social useful programs-sustainable development

• CSR VISION: In alignment with the vision of the company, MTL through its CSR

initiatives, strives to create value in the society and in the society and in the community in which it operates, through its services, conduct & initiatives, so as to promote sustained growth for the society and community ( CSR Policy of MTL)

CSR Activities• Contributions to technology incubators located within academic institutions –

approved by Central Govt. • Slum Area development• Setting up homes and hostels for women & orphans, old age homes, day care

centres, facilities for senior citizen• Ecological balance• Concentrated on facilities to Poor community• Measures for the benefit of war widows and their dependents• Promotion of rural sports• Contribution to National Fund set up by Central Govt. of India• Focusing on protection of culture, art, setting up public libraries• Promotion and development of traditional arts and handicrafts

• Preference of the CSR initiatives of MTL is given to local areas and areas around MTL for spending the amount set a side for CSR activities.

• CSR Expenditure: Minimum 2% of the average net profits of MTL made during the three immediately preceding financial years

Findings of the research

• The companies have knowledge of environmental sustainability • Companies have proper committee for systematic

implementation of CSR initiatives • The company also have clean and clear waste disposal

methodology • The two companies which are analysed give importance to

environment primarily giving importance to the local community

Conclusion

• “It takes 20 years to build a reputation and only 5 minutes ruin it” ( Warren Buffet)

• CSR is the pole star for modern corporations in order to maintain the integrity of moral fabrics both inside and outside the corporation while conducting socially responsible business