MEANING OF CSR 

Corpora
Corporate
te social
social responsi
responsibili
bility
ty,, often
often abbrevia
abbreviated
ted "CSR,"
"CSR," is a corporation's
corporation's   initiatives to
asses
assesss and take
take respo
responsi
nsibil
bility
ity for
for the
the compan
company'y'ss effe
effect
ctss on envir
environm
onment
entalal and social
social
wellbeing. The term generally applies to efforts that go beyond what may be reqired by
reglators or environmental protection grops.
grops.

CSR may also be referred to as "corporate citi!enship" and can involve incrring short
term costs
costs that
 that do not provide an immediate financial benefit to the company, bt instead
 promote positive social
soc ial and environmental change.
ch ange.

Corpo
Corporat
ratee Soci
Social
al Respo
Responsi
nsibil
bility
ity is the
the conti
contini
ning
ng commi
commitm
tment
ent by bsin
bsiness
ess to behav
behavee
ethically and contribte to economic development while improving the qality of life of the
workforce and their families as well as of the local commnity and society at large.

Corpor
Corporateate social
social respo
responsi
nsibil ity #CSR , also called corporat
bility corporatee conscien ce, corporate
conscience
citizenship or responsible
responsible business$ is a form of corporate
of corporate selfreglation integrated
selfreglation integrated into
a bsiness model
model.. CSR policy fnctions as a selfreglatory mechanism whereby a bsiness
monitors and ensres its active compliance with the spirit of the law, ethical standards and
national or international norms
norms.. %ith some models, a firm's implementation of CSR goes
 beyond compliance and engages in "actions that appear to frther some social good, beyond
the interests of the firm and that which is reqired by law."
law." The aim is to increase longterm
 profits throgh positive pblic relations, high ethical standards to redce bsiness and legal
risk, and shareholder trst by taking responsibility for corporate actions. CSR strategies
encorage the company to make a positive impact on the environment
and stakeholders
stakeholders inclding
 inclding consmers, employees, investors, commnities, and others.

&roponents arge that corporations increase longterm profits by operating with a CSR 
 perspective, while critics arge that CSR distracts from bsinesses' economic role.  ()))
stdy compared e*isting econometric
econometric stdies
 stdies of the relationship
relationship between social and financial
financial
 performance, conclding that the
th e contradictory
con tradictory reslts of previos
p revios stdies reporting positive,
negative, and netral financial impact, were de to flawed empirical analysis and
analysis and claimed
when the stdy is properly specified, CSR has a netral impact on financial otcomes.

1
 Types of Corporate Social Responsibility

CSR can encompass a wide variety of tactics, from giving non profit organi!ations a
organi!ations a portion
of a company's
company's proceeds, to giving away a prodct or service to a worthy recipient
recipient for every
sale made. +ere are a few of the broad categories of social responsibility that bsinesses are
 practicing

Economic The first responsibility of the company towards society refers to rnning the
 bsiness as an economically
economicall y healthy nit. -t incldes
in cldes aspects
aspec ts sch as retrn on investment
investmen t for 
shareholders, fair employee salaries, and qality prodcts spplied to cstomers at fair prices
all reqired by the society.

e!al /emands that companies act in accordance with e*isting legislation and reglatory
reqirements. The legal framework conseqentially fosters society's ethical view and all
companies attempting to be socially responsible are therefore reqired by society to follow
the law.

Ethical -t refer
referss to corpor
corporat
ation
ion's
's respo
responsi
nsibil
bilit
ities
ies whic
whichh are
are not cover
covered
ed by legal
legal or 
economical
economical reqirements, bt instead
instead by what cold be considered as right or fair in the eyes
of society. Society therefore e*pects corporations to act ethically towards their stakeholders.

En"ironment# 0ne primary

primary focs
focs of corporat
corporatee social
social responsi
responsibil
bility
ity is the environm
environment.
ent.
1sinesses, both large and small, have a large carbon footprint. ny steps they can take to
redce those footprints are considered both good for the company and society as a whole.

$hilanthropy# 1sinesses also practice social responsibility by donating to national and local
charities. %hether it involves giving money or time, bsinesses have a lot of resorces that
can benefit charities and local commnity programs. This involves corporation's
corporation's willingness
to enhance the qality of living for their stakeholders #i.e. employees, local commnity, and
society at large$ throgh charitable donations and organi!ational spport. These corporate

2
decisions are entirely volntary, of less importance than the former three, and #with regards to
social responsibility$ only seen as desired by society.

E%amples of corporate social responsibility

%hile many companies now practice some form of social responsibility, some are making it a
core of their operations. 1en and 2erry's, for instance, ses only fair trade ingredients and has
developed a dairy farm sstainability program in its home state of 3ermont. Starbcks has
created its C..4.5.
C..4.5. &ractices gidelines, which are designed to ensre the company sorces
sst
sstai
aina
nabl
blyy grow
grownn and
and proc
proces
esse
sed
d coff
coffee
ee by eval
evala
ati
ting
ng the
the econ
econom
omic
ic,, soci
social
al and
and
environmental aspects of coffee prodction. Tom's Shoes, another notable e*ample of a
company with CSR at its core, donates one pair of shoes to a child in need for every pair a
cstomer prchases.

6ndertaking socially responsible initiatives is trly a winwin sitation. 7ot only will yor 
company appeal to socially conscios consmers and employees, bt yo'll also make a real
difference in the world. 8eep in mind that in CSR, transparency and honesty abot what
yo're doing are paramont to earning the pblic's trst.

"-f decisions 9abot social responsibility: are made behind closed doors, people will wonder 
if there are strings attached, and if the donations are really going where they say," Cooney
said. "5ngage yor employees 9and consmers: in giving back. ;et them feel like they have a
voice."

3
 &ISTOR' OF S(I

State (an) of In*ia is an -ndian mltinational, &blic Sector banking and financial

services company. -t is a governmentowned corporation with its headqarters in <mbai,
<aharashtra and also its corporate office in <mbai, <aharashtra. s of /ecember ()=>, it
had assets of 6S?>@@ billion and =A,))) branches, inclding =B) foreign offices, making it
the largest banking and financial services company in -ndia by assets.

State 1ank of -ndia is one of the Big Four banks of -ndia, along with 1ank of 1aroda, &nab
 7ational 1ank  and -C-C- 1ank .

The bank traces its ancestry to 1ritish -ndia, throgh the -mperial 1ank of -ndia, to the
fonding, in =@)D, of the 1ank of Calctta, making it the oldest commercial bank in
the -ndian Sbcontinent. 1ank of <adras merged into the other two "presidency banks" in
1ritish -ndia, 1ank of Calctta and 1ank of 1ombay, to form the -mperial 1ank of -ndia,
which in trn became the State 1ank of -ndia. Eovernment of -ndia owned the -mperial 1ank 
of -ndia in =BFF, with Reserve 1ank of -ndia #-ndia's Central 1ank$ taking a D)G stake, and
renamed it the State 1ank of -ndia. -n ())@, the government took over the stake held by the
Reserve 1ank of -ndia.

State 1ank of -ndia is a regional banking behemoth and has ()G market share in deposits and
loans among -ndian commercial banks.

The roots of the State 1ank of -ndia lie in the first decade of the =Bth centry, when the 1ank 
of Calctta, later renamed the 1ank of 1engal, was established on ( 2ne =@)D. The 1ank of 
1engal was one of three &residency banks, the other two being the1ank of 
1ombay #incorporated on =F pril =@H)$ and the 1ank of <adras #incorporated on = 2ly

4
=@H>$. ll three &residency banks were incorporated as oint stock companies and were the
reslt of royal charters. These three banks received the e*clsive right to isse paper crrency
till =@D= when, with the &aper Crrency ct, the right was taken over by the Eovernment of 
-ndia. The &residency banks amalgamated on (A 2anary =B(=, and the reorganised banking
entity took as its name -mperial 1ank of -ndia. The -mperial 1ank of -ndia remained a oint
stock company bt withot Eovernment participation.

&rsant to the provisions of the State 1ank of -ndia ct of =BFF, the Reserve 1ank of -ndia,
which is -ndia's central bank , acqired a controlling interest in the -mperial 1ank of -ndia. 0n
= 2ly =BFF, the imperial 1ank of -ndia became the State 1ank of -ndia. -n ())@, the
Eovernment of -ndia acqired the Reserve 1ank of -ndia's stake in S1- so as to remove any
conflict of interest becase the R1- is the contry's banking reglatory athority.

 S1- has acqired local banks in resces. The first was the 1ank of 1ihar #est. =B==$, which
S1- acqired in =BDB, together with its (@ branches. The ne*t year S1- acqired 7ational
1ank of ;ahore #est. =BH($, which had (H branches. 4ive years later, in =BAF, S1- acqired
8rishnaram 1aldeo 1ank, which had been established in =B=D in Ewalior State, nder the
 patronage of <aharaa <adho Rao Scindia. The bank had been the Dukan Pichadi, a small
moneylender, owned by the <aharaa. The new bank's first manager was 2all 7. 1roacha, a
&arsi. -n =B@F, S1- acqired the 1ank of Cochin in 8erala, which had =() branches. S1- was
the acqirer as its affiliate, the State 1ank of Travancore, already had an e*tensive network in
8erala.

There has been a proposal to merge all the associate banks into S1- to create a "mega bank"
and streamline the grop's operations.

The first step towards nification occrred on => gst ())@ when State 1ank of 
Sarashtra merged with S1-, redcing the nmber of associate state banks from seven to si*.
Then on =B 2ne ())B the S1- board approved the absorption of State 1ank of -ndore. S1-
holds B@.>G in State 1ank of -ndore. #-ndividals who held the shares prior to its takeover by
the government hold the balance of =.A G.$

The acqisition of State 1ank of -ndore added HA) branches to S1-'s e*isting network of 
 branches. lso, following the acqisition, S1-'s total assets will inch very close to the ₹ =)
trillion marks #=) billion long scales$. The total assets of S1- and the State 1ank of 
-ndore stood at ₹B,B@=,=B) million as of <arch ())B. The process of merging of State 1ank 
of -ndore was completed by pril ()=), and the S1- -ndore branches started fnctioning as
S1- branches on (D gst ()=).

0n 0ctober A, ()=>, rndhati 1hattacharya became the first woman to be appointed

Chairperson of the bank.

Associate ban)s
S1- now has five associate banks, down from the eight that it originally acqired in =BFB. ll
se the State 1ank of -ndia logo, which is a ble circle, and all se the "State 1ank of" name,
followed by the regional headqarters' name

5
• State 1ank of 1ikaner I 2aipr 

• State 1ank of +yderabad

• State 1ank of <ysore

• State 1ank of &atiala

• State 1ank of Travancore

The State 1ank of -ndia and all its associate banks are identified by the same
 ble keyhole logo. The State 1ank of -ndia word mark sally has one standard typeface, bt
also tilises other typefaces.

Non+ban)in! subsi*iaries
part from its five associate banks, S1- also has the following nonbanking sbsidiaries

• S1- Capital <arkets ;td

• S1- 4nds <anagement &vt ;td

• S1- 4actors I Commercial Services &vt ;td

• S1- Cards I &ayments Services &vt. ;td. #S1-C&S;$

• S1- /4+- ;td

• S1- ;ife -nsrance Company ;imited

• S1- Eeneral -nsrance

-n <arch ())=, S1- #with AHG of the total capital$, oined with 17& &aribas #with (DG of
the remaining capital$, to form a oint ventre life insrance company named S1- ;ife
-nsrance company ;td. -n ())H, S1- /4+- #/iscont and 4inance +ose of -ndia$ was
fonded with its headqarters in <mbai.

Other S(I Ser"ice $oints

s of >= <arch ()=H S1- has H>,F=F T<s  .S1- grop #inclding associate banks$ has
F>,))) pls T<s presently. S1- has become the first bank to install an T< at /rass in the
2amm I 8ashmir 8argil region. This was the 1ank's (A,)>(nd T< on (A 2ly ()=(.

o!o an* Slo!an

• The logo of the State 1ank of -ndia is a ble circle with a small ct in the bottom that
depicts perfection and the small man the common man  being the center of the bank's

6
 • &rogressively encorage and spport its members of vale chain to adopt its
environmental policyLmanagement systems.

5conomic Responsibility

• &rovide complete factal information on prodcts I services to protect the interest of 
cstomers.
• ccord preference to proectsLprodcts which accre more environmentalLsocial
 benefits.
• 5nsre cstomer privacy.
• 5nsre compliance with applicable standardsLgidelines while advertising and make
efforts to improve the financial literacy of the stakeholders.

-<&;5<57TT-07

The 1siness Responsibility &olicy is circlated across all /epartments L 1siness Erops L
3erticals of the 1ank. 4rther, it is commnicated to all employees throgh indction
 programs, orientation sessions and internal portals.

15
The designated 7odal 0fficer #1R officer$ heads the 1R fnction of the 1ank. +e L She
reports directly to the <anaging /irector I Erop 5*ective #71$, and is responsible for 
implementation of the policy, identification of varios initiatives and ensring their effective
implementation by the 1R 4nction staff. The 1R 0fficer, who wold head the 1R 4nction
is responsible for implementing the 1R initiatives, provide clarifications on the policy,
)giding the staff in implementation, review the reslts, adit, impact assessment etc.

S1- has a robst grievance handling procedre for employees to address and resolve
complaints. ny policy violation by an employee is broght to the notice of the 1R officer.
ll steps wold be taken for free and fair treatment of the complaints.

<07-T0R-7E 7/ R53-5%

The 1R 4nction is responsible for overall 1R policy compliance. The head of each 1ank 
nit #1ranch L /epartment L 1siness Erop L 3ertical$ is responsible for compliance of the
1R &olicy. +e L She wold pdate the 1R 0fficer abot the policy implementation, initiatives
taken, discriminatory complaints received, cases of incidents of violation of freedom of 
association and collective bargaining etc. The 1R 0fficer wold pdate the Top <anagement.

16
The 1R &olicy will be pdated from time to time by the 1R 0fficer i.e. Eeneral <anager 
#Corporate Commnication I Change$, in the light of amendments to laws, rles and
reglations, as applicable, and an annal review report shall be sbmitted to the 1oard.

State 1ank of -ndia 1siness Responsibility Eovernance Strctre

1oard of /irectors

CSR Committee #Chairman, </ I C40, </ I E5 #71$ -ndependent /irector$

</ I E5 #71$

E< #CCIC$

1R 4nction

C0R&0RT5 S0C-; R5S&07S-1-;-TJ &0;-CJ C07C5&T

The concept of Corporate Social Responsibility #CSR$ was introdced in the State 1ank of 
-ndia as early as =BA>, nder the name -nnovative 1anking, covering both banking as well as
nonbanking activities. The initial emphasis was on assisting grops belonging to the weaker 
and downtrodden sections of society by providing avenes for improvement of their 
economic condition. 7onbanking activities involved participation in commnity activities
which contribted to the commnal good, e.g. blood donation camps, health camps,
 participation in local festivals, adlt literacy, tree planting etc. s the scope of activities
increased, the 1ank classified these activities as Commnity Service 1anking. Commnity
Service 1anking is now one of the activities throgh which the 1ank plays the role of a
responsible and responsive corporate citi!en and discharges its corporate social responsibility
to the commnity.

C0R&0RT5 &+-;0S0&+J

• The 1ank is a corporate citi!en, with resorces at its command and benefits which it
derives from operating in society in general. -t therefore owes a solemn dty to the
less fortnate and nderprivileged members of the same society.
• Staff members are encoraged to make their contribtion by nderstanding the
aspirations of the pblic arond them and by endeavoring to evolve measres to
remove indisptable social and developmental lacnae. This will lead to their self
development and improvement of the 1ankQs image besides development of the
Commnity.

6nder commnity service banking, varios welfare and social activities are ndertaken by the
1ank both in 1anking and 7on1anking areas to raise the qality of life of the downtrodden
and nderprivileged sections of society.

17
 investments for a company." -n addition to indirect contribtions to society throgh main
 bsiness activities, the S1- Erop is also taking the initiative to engage in direct social
contribtion activities.

  ())(L=

The Softban) Finance boar* of *irectors establishe* a basic policy.

5ach grop company that earns over >)) million yen in profits after ta* dedctions
donates =G of its profit to the Children's Social %elfare Corporation.

  ())HLA

Charitable acti"ities too) hol*.

fter receiving the spport of nine special government ordinancedesignated cities
and >B prefectres, S1- donated =DA.= million yen #=A> facilities$ to children's homes
and infant homes that are nder local government risdiction.

  ())HL=(

S(I establishe* the S(I Chil* -elfare imite* iability Interme*iate

Corporation.
-n addition to donations from each S1- company, S1- became the first enterprise in
2apan to make se of stock options and secrities as donations from spporters.

  ())FL=

S(I Chil* -elfare imite* iability Interme*iate Corporation became fully

acti"e.
S1- representatives visit local governments and child welfare facilities across 2apan to
learn abot child welfare facilities.
S1- representatives visit local athorities across 2apan and participate in pblic
hearings.

())FL>

S(I Chil* -elfare imite* iability Interme*iate Corporation starte* to recei"e

*onations from supporters.
4onders of newly listed companies began to donate treasry stock.
6nlisted companies began to donate stock option rights.

())FL=)

The S(I Chil*ren/s &ope Foun*ation 0as establishe*.

httpLLwww.sbigrop.co.pL!aidanL
The S1- Erop invites spporters from a wide crosssection of society to participate
in the 4ondation. The 4ondation was established to help children become self
reliant adlts and to contribte to child welfare throgh activities to enhance child
welfare awareness in 2apanese indstry.

28
S1- creates fondation for grop CSR activities

<6<1- The nation's largest lender State 1ank of -ndia#S1-$ has created a separate
company, S1- 4ondation, to carry ot its massive CSR initiatives and hopes to get it
"rnning" from 2ly.

"%e have been spending over = per cent of or profit on CSR even before the new law on
corporate social responsibility #CSR$, mandating every company to spend ( per cent of its
 profit on sch activities, came into effect. This is despite the fact that we are not legally
 bond to do so as we are not governed by the Companies ct.

"So, to streamline or CSR activities and better target or efforts, we've decided to create a
new company called S1- 4ondation. %e hope to get the fondation rnning from 2ly =,"
general manager incharge of CSR and change management at S1-, 3inod &ande told &T-.

-ncidentally, 2ly = is the fondation day of the bank, which was started as 1ank of Calctta
in 2ne =@)D.

+e said in fiscal (=)H, the bank had spent Rs ==F crore on CSR, on a profit of Rs =),@B=
crore, which was Rs D crore more than its = per cent profit.

&ande said the S1- 4ondation has already been registered nder Section @ of the Companies
ct, ()=>, which applies to nonprofit companies or organisations and will be headqartered
in <mbai.

The fondation has already taken an office in the ((storey ir -ndia Tower in the city, where
the bank has taken for floors.

%hen asked abot management strctre of the fondation, he said the bank 
chairperson rndhati 1hattacharya will be the chairman of the fondation and will have a
flltime managing director and chief e*ective.

That apart, S1- has eight foreign banking sbsidiaries  State 1ank of -ndia California, S1-
Canada, S1- <aritis, 7epal S1- 1ank, State 1ank of -ndia 1otswana, 1ank S1- -ndonesia,
1ank of 1htan, and Commercial -ndo 1ank.

The bank also has seven nonbanking sbsidiaries  S1- Capital <arkets, S1- 4nds
<anagement, S1- Elobal 4actors, S1- Cards I &ayments Services, S1- /4+-, S1- Eeneral
-nsrance Company, S1- &ension 4nds  and three oint ventres  S1- ;ife
-nsrance Company, S1- Eeneral -nsrance Company and S1-SE Elobal Secrities, says
the State 1ank's website.

The State 1ank and its five associate banks are registered nder a separate ct of &arliament,
the S1- ct.

29
 &ande said once the fondation is registered and starts working, S1- and its five associates
 banks as well its arms will carry ot their CSR work via the fondation.

&ande said he e*pects that the total otgo from the grop will be more than Rs ()) crore this
fiscal.

5*cept the associate banks, all of these sbsidiaries will have to spend ( per cent of their 
 profits on CSR as they are governed by the Companies ct, he said, adding that the bank has
already received approval from the Reserve 1ank for setting p the company.

STT5 178 04 -7/-'s CSR -7-T-T-35S

&ratip Chadhri, Chairman, State 1ank of -ndia, nder State 1ankQs Corporate Social
Responsibility ctivity #CSR$, donated a School 1s to Ramakrishna <ath Saradha

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3idyalaya, <adrai. The school is rn by Ramakrishna <ath, <adrai. The school was
started in the year ())), and having classes from 8E to Fth standard with D(A inmates.
&ratip Chadhri, Chairman also donated an mblance van to Sacred +eart +ospital,
Tticorin.

The hospital provides high qality health care to the needy and downtrodden in Tticorin, in a
 befitting fnction arranged today at State 1ank of -ndia, Monal 0ffice, <adrai in the
 presence of .8rishna 8mar, <anaging /irector I Erop 5*ective #71$, Corporate
Centre, <mbai,3arsha &randare Chief Eeneral <anager , Shri S.8rithivasan, Shri Saniv
Chadha, Eeneral <anagers, ;ocal +ead 0ffice Chennai and Shri Sndar Raan /epty
Eeneral <anager, <adrai.

S1- has a comprehensive CSR policy approved by the 1oard and the focs areas are
Spporting 5dcation, 5ntreprener development I +ealth care, ssistance to &oor and
nder privileged, 5nvironmental protection, Clean energy, and help in 7ational calamities.

4or the financial year ()=(=>, S1- earmarked Rs.==A.)A crore i.e. =G of S1-Qs previos year 
 profit for CSR activity. /ring the crrent financial year, the 1ank has e*tended financial
assistance for >)) mblance 3ans to needy and service organisations, H(,))) water prifiers
and =, H),))) ceiling fans to more than fifty thosand schools to provide clean water and
condcive climate to school children. 6nder health care activities S1- has e*tended
assistance to a tne of Rs. =H crores for spport to hospitals in the form of <edical
eqipments and others.

S1- is always in forefront to help states affected by natral calamities. /ring the crrent
fiscal S1- has lent its helping hand to the States of ssam, Sikkim, 6ttarkhand, <aharashtra
etc. with donation to Chief <inisterQs Relief fnd to respective States to provide sccor to
the people affected by flood to a tne of Rs.B.)) crore.

The 1ank has constitted S1-Qs ChildrenQs %elfare scheme as a trst in =B@>.The corps of 
the fnd is made p of contribtion by staff members with eqal contribtion by the 1ank.
The 1ank e*tends grants from this fnd to instittions engaged in the welfare of nder 
 privileged L downtrodden children like orphans, destitte, challenged and deprived etc.

CSR is not an isolated practice or initiative for STT5 178 04 -7/- bt rns throgh its
entire bsiness paradigm.

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 C07C;6S-07
The perspective of Corporate Social Responsibility by initiating social and commnity
initiatives is to benefit the society and nation at large which soght to be achieved throgh the
 participation of its employees. Thogh these five banking sectors have taken effect in the era
of CSR bt it is not satisfactory. -n order to attain the social obectives there is a need to
frame a CSR policy in every bank and prioriti!ation of activities for social spending and
allocation of separate fnds shold be given for this specific prpose. The banks also created
ma*imm vale from its activities and developed strategies to effectively commnicate
 progress with varios stakeholders and provide information on the isses that concern them.
To have an impact of spending and tili!ation of allocated bdget by CSR there shold be a
system of periodical monitoring and reporting to the 1oard of /irectors. <ost banks se CSR 
as a marketing tool to spread the word abot their bsiness, Eenerally speaking, most banks
seem either naware or don't monitor their CSR. Special training needs to be given to
 bsiness managers in working with social isses and &articipation of small and medim
 bsiness shold be encoraged... The concept of CSR has failed to some e*tent to take deep
root in -ndia becase of lack of coordination between the banks, government, and non
government organi!ational efforts. The 4inancial -nstittions shold reali!e that rnning an
efficient and profitable bsiness organi!ation means ensring that the srronding
commnities and environment grew and prospered along with the instittions. -n a ntshell, it
can be said that the state of mind of the -ndian entrepreners towards CSR is changing de to
togh competition in an international level. Conclsively, there are three sggestive measres
which are advisable for a better CSR in these banks. 4irst is to enhance and accelerate
government's involvement in CSR activities, Second can be noted as development of a broad
sector of the conslting in the era of CSR, and lastly media shold increase its interest and
 play a vital role in the era of CSR 

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 1-1;-0ER&+J

-ebsites

httpLLwww.sbigrop.co.p

httpsLLwww.sbi.co.in

httpLLarticles.economictimes.indiatimes.com

httpLLwww.indiainfoline.com

httpLLiosrornals.org

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