Report on
Corporate Social Responsibility
Submitted to: Dr. Manoj Joshi MBA 4th Sem.
Meaning of Corporate Social Responsibility Responsibility “Corporate social responsibility as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force ,their families and the local community and society at large.” “CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government" gov ernment" "Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public pu blic expectations that society has of business? "A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis". Corporate Social Responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance,[1] is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function a s a built-in, self-regulating mechanism whereby business would monitor and ensure their adherence to law, ethical standards, and international norms. Business would embrace responsibility for the impact of their activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, business would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: People, Planet, Profit.
Carroll’s Four Part Definition Understanding the Four Components Resp Respon onsi sibi bili lity ty Soci Societ etal al Examples Expectation Economic
Requ Requir ired ed
Be prof profit itab able le.. Maxi Maximi mize ze sale sales, s, minimize costs, etc.
Legal
Requ Requiired red
Obey Obey laws aws and and regul egulat atiions. ons.
Ethical
Expe Expect cted ed
Do what what is righ right, t, fair fair and and just just..
Discretionary (Philanthropic)
Desired/ Expected
Be a good corporate citizen.
CSR in Equation Form Is the Sum of: • • • •
Economic Responsibilities (Make a profit) Legal Responsibilities (Obey the law) Ethical Responsibilities (Be ethical) Philanthropic Responsibilities (Good corporate citizen)
Economic Responsibilities Responsibilities “Economic Responsibilities refers to the fundamental responsibility of business to produce goods and services that society wants, and which it sells at a profit.” As a listed company Outokumpu is committed to making a profit for the benefit of its shareholders. The company delivers on this commitment by developing and maintaining competitive and profitable operations based on ethical business practices.
Legal Responsibilities Responsibilities “Legal Responsibilities refers to obligation of business to fulfill it’s economic mission within the confines of the law.”
Ethical Responsibilities Responsibilities This refers to the ethical responsibilities of companies that go beyond legal compliance.
Philanthropic Responsibilities Responsibilities This refers to voluntary responsibilities such as philanthropy, which a company can assume even if there are no clear cut societal expectations.
Business Responsibilities Responsibilities in the 21st Century •
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•
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Demonstrate a commitment to society’s values and contribute to society’s social, environmental, and economic goals through action. Insulate society from the negative impacts of company operations, products and services. Share benefits of company activities with key stakeholders as well as with shareholders. Demonstrate that the company can make more money by doing the right thing.
Objectives
To study the reasons why companies engage engag e themselves in social issues. To find out whether the companies which are more socially responsible are able to create positive brand image in the minds of consumers. To find out which companies can be considered more socially responsible in the Indian context. To have an overview about which countries are more socially responsible than others in the global perspective.
Motives
Improve long-term corporate profitability Distract the public from ethical questions posed by their core operations Commercial benefit by raising their reputation with the public or with government To be committed to Sustainable Development w hilst simultaneously engaging in harmful business practices
CSR initiatives of Some Indian Companies Name Of the company Aditya Birla Group
Godrej Industries
Indian Oil Corporation
HLL
CSR Principle Help build model villages that can stand on their own feet. Belief in green environment leads to enhancement of productivity and quality To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. Social welfare initiatives both through charity and social investment
CSR Rati Rating ng
Init Initia iati tive vess
3/5
Healthcare, education, rural development
3/5
Environment and agriculture, infrastructure
2/5 3/5 3/5
Community development programmes, medical services, education, art and culture, social objective schemes Child welfare, Aids awareness, Women Upliftment, rural development, disaster
relief activities, environment
ICICI bank
Infosys
Procter & Gamble
Reliance Industries
To build the capacities of the Poorest of the poor to participate in the large economy
3/5
Support the unprivileged in Society and enrich their lives
4/5
Commitment to 2/5 sustainable development as "ensuring a better quality of life for everyone, now and for generations to come.” Principle of symbiotic 2/5 relationship with the local communities, recognizing that business ultimately has a purpose - to serve Human needs
Tata Steel
Sharing Wealth to diminished disparities
4/5
Wipro
To contribute in the areas of education, community and social development
3/5
Poor health and nutrition, child education, micro financial services, Healthcare, social rehabilitation and rural upliftment, learning and education, art and culture Child education, women education, health and environment
Scholarship schemes, healthcare initiaves, cancer and AIDS prevention, health, safety, environment, social responsibility and community development, rural development, women and youth empowerment, skill upgradation Education, Tribal welfare, healthcare, Health and AIDS awareness, environment Learning enhancement, infrastructure facilities, disaster relief activities
History of Tata Motors
Started in 1945 in Mumbai, India. Original production was on locomotives. 1954 First car rolled off of the assembly line. Tata’s are a family The family founded: Ironworks Steelworks cotton mills hydroelectric-power plants Are of their endeavors have been b een proved to be crucial to India's industrial development. of Indian industrialists and philanthropists. Tata Motors is India’s owns the largest independent company in India. Mercedes and Tata teamed up to create a truck line. First major business deal with another firm. Together both companies started their commercial vehicle operations in 1960. in 1986 the company created and sold the first LCV LCV = light commercial vehicle Was the Tata 407
Tata Motors decided to pursue joint ventures. Cummins Engine Co., Inc., was the first company to jointly venture with Tata in 1993. Manufactured a diesel engine that had high horsepower and emitted less harmful chemicals.
Bega Began n crea creati ting ng new new line liness in the the late late 1990’ 1990’ss and and earl earl•• Compressed natural gas buses y 2000’s 1109 vehicle, used for commercial purposes. Ex-series Newly designed LCV called the 207 DI
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Tata Group •
100 companies throughout 7 business b usiness sectors Engineering, materials, energy, chemicals, services, consumer products, information systems and communications Tata AutoComp Systems - Automotive Tata Steel - Materials Tata Power - Energy Rallis India - Chemicals Tata Realty and Infrastructure - Service Tata Tea - Consumer Products Tata Technologies - Information Systems and Communications •
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Corporate Social Responsibility of TATA •
“A Company that cares about the future” Committed to corporate social responsibility Signed the United Nations Global Compact Plays role in community development Environmentally-friendly products and technology Two main concerns: Reduction of pollution Restoration of ecological balance Implemented soil and water conservation programs Cleaner Engines Advanced emission-testing labs Developing alternate fuel engines Sewage treatment facilities Encourages tree planting • •
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Community Development: The Company's Community Service Division works through various societies to improve the conditions of neighbouring villages - encouraging economic independence through self-initiated cottage industries and contributing to community and social forestry, road construction, rural health, education, water supply and family planning. Tata Motors has been making numerous well-planned efforts in the area of rural development, with specific focus on the following:
Health & Sanitation: Mobile health service staff provide preventive and curative health services under the "Health For All" programme. They train village health workers in conducting the same. Safe drinking water facilities are provided to ensure health of the villagers.
Employment Generation : Tata Motors encourages self-sufficiency with the aim to improving the co nfidence, morale and lives of its
employees and their dependents. The Company has worked on some novel ideas around its townships. Employees' relatives at Pune have been encouraged to form various industrial co-operatives engaged in activities such as re-cycling of scrap wood into crates and furniture, welding, steel scrap baling, battery cable assembly etc. The Tata Motors Grihini Social Welfare Society caters to employees' women dependents'. The women folk make a variety of products, ranging from pickles and uniforms to electrical cable harnesses etc.
Community Centers: These centres are situated in various parts pa rts of Jamshedpur, Pune and some of their neighbouring towns. The centres regularly organise various p rogrammes & neighbouring populations are encouraged to participate in these activities.
Photo: Mr. Deepak M Deshpande, AGM, Corporate HR inaugurating the bus donated to ADHAR, an Association of Parents of Mentally Differently Abled Children
“There is a strong business sense in investing in CSR, in so far as corporations benefit in multiple ways by operating with a p erspective broader than their own immediate business results. These benefits can range from brand differentiation, boost to recruitment and retention, risk management and licence to operate to more individual goals of personal satisfaction. Tata Motors’ CSR is carried on by CSR teams at all the manufacturing units. A structured process has facilitated co-ordination among team members, continuous experience sharing across locations, monitoring and evaluation of all CSR programmes and periodic reporting, giving CSR activities at Tata Motors a Company wide synergy. CSR through the lens of the CSR Team Leaders at these locations is presented in this section.”
Silver Linings
“Since 2006, your institution has adopted our Diwad village and since then considerable con siderable progress has been made in the village. Some of the projects that have been completed include: 1. Tree plantation on the land owned by the village (2000 trees have been planted since the tree plantation drive began in 2006) 2. Construction of a 2kms road on the mountainous terrain 3. Distribution of toys and games to Angandwadi (2 pre-primary schools) 4. Seeting up of computer laboratory and repair work in the secondary school 5. Infrastructural development of primary school 6. Distribution of teaching aid to secondary school 7. Support for providing clean drinking water in the village 8. Ensuring hygiene and sanitation through construction of 200 individual toilets, covering all families 9. Donation of Excavator machine for the development work of the village We hope your institution would continue to support the village through the coming years.” Signed, Sarpanch, Gram Panchayat, Diwad village, Pune P.S. the above is a loose translation of the original letter
(“I am a daughter-in-law in Murlipur village. My household was running smoothly before a tragic incident ruined that. My husband, husband , who was a school teacher, lost his eyesight. Since he became unemployed, we were facing great difficulty in running the family and raising our children. It was at this juncture that I was informed by Samaj Vikas Kendra that needy women from the village were being given a chance for employment. I applied and got selected for the training. All this wasn’t so easy for me as even wearing salwar suit
and getting out of the house was opposed. But I managed to persuade them. Today I stand on my own feet, my children go to school and for all this I am grateful to Samaj Vikas Kendra”) She gives a part of the credit to Samaj Vikas Kendra, a Tata Motors supported society in Lucknow, which had taken the initiative to support eight underprivileged families from the villages in the project area by providing six months training for sub-assembly work.
Adherence to Internationa Internationall Standards Global Reporting Initiative
It is widely accepted that organisations have the ability to exert positive change on the state of the world’s economy and environmental and social conditions. Global Reporting Initiative (GRI) is a sustainability reporting framework, which urges corporations to voluntarily report on their economic, environmental and social performance in a given year. Reporting on sustainability performance is an important way for organizations to manage their impact on sustainable development. Tata Motors put its GRI Report 2006-07 in the public domain - for the first time - and the report is available on the website as well. Report was short listed from amongst 800 reports for final selection for the GRI Reader’s Choice Awards.
Conclusion:
Corporations must communicate their CSR initiatives to promote a positive image about the company in people’s mind.
With increasing and widespread commitment of corporate resources to CSR, attention is now shifting to the strategic formulation, implementation, and measurement of the market returns to CSR initiatives.
Emphasize the need for better measurement models of CSR that capture and estimate clearly the effects of a company’s CSR actions on its stakeholders as well as the nations in which they are operating
“It is important for corporations to take stakeholder CSR priorities seriously, bearing in mind the triple bottom-line of ‘People, Planet & Profit’. This will not only help in the overall betterment of the country, but will also help corporations gain valuable mind space in the stakeholder community”.
Bibliography:
http://economictimes.indiatimes.com https://www.kbc.com/ http://www.wacker.com http://knol.google.com/k/osman-masahudu-gunu/the-impact-ofgovernment-regulations-on/1kietb77pgwru/18# http://www.tatamotors.com http://www.tatamotors.com
