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Corporate Social Responsibility in India

Posted on July 10, 2012 by India Briefing


India may become the worlds first country to make corporate social responsibility
mandatory
Jul. 10 Paths have been cleared for reintroduction of the Companies Bill, 2011, in
the monsoon session. If the bill is passed after endorsing all the propositions made
by the Parliamentary Standing Committee on Finance, corporate social
responsibility (CSR) would become mandatory for the first time in the world in
any country.
The statement advocates that those companies with net worth above Rs. 500 crore,
or an annual turnover of over Rs. 1,000 crore, shall earmark 2 percent of average
net profits of three years towards CSR. In the draft Companies Bill, 2009, the CSR
clause was voluntary, though it was mandatory for companies to disclose their CSR
spending to shareholders. It also suggested that company boards should have at
least one female member.
Examples of Corporate Social Responsibility in India
Tata Group
Tata Group in India has a range of CSR projects, most of which are community
improvement programs. For example, it is a leading provider of maternal and child
health services, family planning, and has provided 98 percent immunization in
Jamshedpur. The company also endorses sports as a way of life. It has established a
football academy, archery academy, and promotes sports among employees. It
offers healthcare services all over the country with programs like rural health
development.
Tata Group also has an organized relief program in case of natural disasters,
including long-term treatment and rebuilding efforts. It did laudable work during
the Gujarat earthquakes and Orissa floods. It also supports education, with over
500 schools, and also is a benefactor of the arts and culture. It has done abundant
work in improving the environment and local populations around its industries.
Aptech
Aptech a leading education player with a global presence that has played a broad
and continued role in encouraging and nurturing education throughout the country
since its inception. As a global player with complete solutions-providing
capabilities, Aptech has a long history of participating in community activities. It
has, in association with leading NGOs, provided computers at schools, education
to the deprived, and training and awareness-camps.
Infosys
Infosys is aggressively involved in a variety of community growth programs. In

1996, the company created the Infosys Foundation as a not-for-profit trust to which
it contributes up to 1 percent of profits after tax every year. Moreover, the
Education and Research Department at Infosys also works with employee
volunteers on community development projects.
The management team at Infosys continues to set examples in the area of corporate
citizenship and has involved itself vigorously in key national bodies. They have
taken initiatives to work in the areas of research and education, community service,
rural outreach programs, employment, healthcare for the poor, education, arts and
culture, and welfare activities undertaken by the Infosys Foundation.
Mahindra & Mahindra
At Mahindra & Mahindra, The K. C. Mahindra Education Trust was established in
1953 with the purpose of promoting education. Its vision is to renovate the lives of
people in India through education and financial assistance across age groups and
across income strata. The K. C. Mahindra Education Trust undertakes a number of
education plans, which make a difference to the lives of worthy students. The Trust
has provided more than Rs. 7.5 crore in the form of grants, scholarships and loans.
It promotes education mostly by the way of scholarships. The Nanhi Kali
(children) project has over 3,300 children under it and the company aims to
increase the number to 10,000 in the next two years by reaching out to the
underprivileged children, especially in rural areas.
Methodology of Corporate Social Responsibility
CSR is the procedure of assessing an organizations impact on society and
evaluating their responsibilities. It begins with an assessment of the following
aspects of each business:

Customers

Suppliers

Environment

Communities

Employees
Triumphant CSR plans take organizations ahead of compliance with legislation and
lead them to respect moral values and respect people, communities and the natural
environment. Corporate social responsibility is sustainable involving activities
that an organization can uphold without negatively affecting the business goals
CSR is not only about ecological accountability or having a recycling policy. It is
about considering the whole representation of the company, from internal
processes to your clients, taking in every step that a business takes during day-today operations. Rising economies such as India have also observed a number of
companies enthusiastically engaged in CSR activities.

Organizations in India have been quite sensible in taking up CSR initiatives and
integrating them in their business processes. It has become progressively projected
in the Indian corporate setting because organizations have recognized that besides
growing their businesses, it is also important to shape responsible and supportable
relationships with the community at large. Companies now have specific
departments and teams that develop specific policies, strategies and goals for their
CSR programs and set separate budgets to support them. Most of the time, these
programs are based on well-defined social beliefs or are carefully aligned with the
companies business domain.
Corporate Social Responsibility The French Way
France was the first nation to make public company reporting compulsory. The
rules require public companies to comprise information on a series of topics in
their yearly report, such as:

Status of employees

Mobility of staff

Work hours

Social relations

Health and safety

Training

Health policy

Profits distribution

Outsourcing
They must also illustrate their manners when it comes to communities who are
concerned by their activities in the countries where they have offices. They must
explain the ways in which their sub-contractors respect International Labor
Organization agreements. They must also report on ecological issues such as the
measure of progress in terms of energy effectiveness and dipping environmental
impacts; conditions on use of land, air and water; and documentation obtained in
the area of environmental safety.
Alstom
At Alstom, people, sustainability, and the environment are positioned at the heart
of corporate strategy. Alstom offers rail transport, power generation and
transmission solutions that defend the environment while ensuring financial
expansion and social progress, providing a major contribution to global sustainable
development. Alstom expects to further its cooperation with the local communities
and people in the countries they are operating in.
Indo-French Chambers of Commerce and Industry Event
The Indo-French Chambers of Commerce and Industry (IFCCI) Mumbai is

organizing an event on CSR on July 14, 2012 at Sofitel in Mumbai. The event
emphasizes the best practices in CSR and will be attended by the president of
IFCCI, the Honorable French Consul of Mumbai, and many corporate leaders.
Presently in India, it is hard for one sole entity to bring about change, as the gauge
is vast. Organizations have the know-how, strategic thinking, manpower, and
financial strength to enable widespread social transformation. Operative
partnerships between corporations, NGOs and the government will place Indias
social development on a developing mode.
A concern for social and environmental development should be made a part of
every corporate entity through its inclusion in the annual agenda backed by strong
and genuine programs. Its up to the lobbying groups and governmental agencies to
convince the corporate power houses to come forward and take up the challenge by
making them aware of the associated advantages that these companies stand to
gain from effective CSR campaigns.
Dezan Shira & Associates is a specialist foreign direct investment practice,
providing corporate establishment, business advisory, tax advisory and
compliance, accounting, payroll, due diligence and financial review services to
multinationals investing in emerging Asia. Since its establishment in 1992, the firm
has grown into one of Asias most versatile full-service consultancies with
operational offices across China, Hong Kong, India, Singapore and Vietnam as
well as liaison offices in Italy and the United States.
For further details or to contact the firm, please email india@dezshira.com,
visit www.dezshira.com, or download the company brochure.
You can stay up to date with the latest business and investment trends across India
by subscribing to The India Advantage, our complimentary update service
featuring news, commentary, guides, and multimedia resources.
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9 Responses

Col ( Retd) Sriprakash Pany


August 20, 2012 at 7:39 pm
Very nicely brought out. I am looking for opportunities to serve Corporates in their
CSR

Naval
September 5, 2012 at 5:50 pm
Informative.

Naval
September 5, 2012 at 5:55 pm
CSR is now a very common term and most of the corporate houses are trying to
give something to help less privileged human beings in India and abroad.
Organizations in India have been quite sensible in taking up CSR initiatives and
integrating them in their business processes. It has become progressively projected
in the Indian corporate setting because organizations have recognized that besides
growing their businesses, it is also important to shape responsible and supportable
relationships with the community at large. Companies now have specific
departments and teams that develop specific policies, strategies and goals for their
CSR programs and set separate budgets to support them. Most of the time, these
programs are based on well-defined social beliefs or are carefully aligned with the
companies business domain.
They must also illustrate their manners when it comes to communities who are
concerned by their activities in the countries where they have offices. They must
explain the ways in which their sub-contractors respect International Labor
Organization agreements. They must also report on ecological issues such as the
measure of progress in terms of energy effectiveness and dipping environmental
impacts; conditions on use of land, air and water; and documentation obtained in
the area of environmental safety.
Thank you.

Priyanka Bansal
September 21, 2012 at 3:39 pm
Absolutely wrong start. Denmark is already the first country to make CSR
reporting mandatory.

Gopalakrishnan.C
September 27, 2012 at 2:20 pm

This is Gopalakrishnan from Tamilnadu,


I have 2.5 years experience in CR Department on Fengtay Group at cheyyar.
I am looking for opportunities to serve Corporates in their CSR.
Is there any opportunity please reply to me. krishmba_cg@yahoomail.co.in
Regards, Gopalakrishnan.

K.Loganathan
October 12, 2012 at 4:09 pm
Association for Sustainable Community Development (ASSCOD) is a registered
NGO working for women empowerment in Kancheepuram and Thiruvannamalai
Districts of Tamilnadu. Our NGO is interested to partner with Corporates to
implement CSR activities.

SHIVAKANT SINGH
January 23, 2013 at 4:57 pm
Very nicely brought out. I am looking for opportunities to serve Corporates in their
CSR

SHIVAKANT SINGH
January 23, 2013 at 5:02 pm
The basic objective of CSR in these days is to maximize the companys overall
impact on the society and stakeholders. CSR policies, practices and programs are
being comprehensively integrated by an increasing number of companies
throughout their business operations and processes. A growing number of
corporates feel that CSR is not just another form of indirect expense but is
important for protecting the goodwill and reputation, defending attacks and
increasing business competitiveness
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