CSR IN BUSINESS

By
Vishal Gaonkar
PGDM E-Biz
Background of CSR in the
globe and US economy
Key Issues in CSR
Labour rights:
child labour
forced labour
right to organise
safety and health



Environmental conditions
water & air emissions
climate change

Human rights
cooperation with paramilitary forces
complicity in extra-judicial killings











Poverty Alleviation
job creation
public revenues
skills and technology

Key drivers of CSR
Around the world
NGO Activism
Responsible investment
Litigation
Gov & IGO initiatives
Developing Countries
Foreign customers
Domestic consumers
FDI
Government & IGO
United Nations Initiatives
UN Global Compact
UN Principles for Responsible Investment
UNEP Equator Principles
ILO Tripartite Declaration of Principles
concerning Multinational Enterprises and
Social Policy (MNE Declaration)
UNHCHR Business and Human Rights
UNODC Anti-corruption
UNCTAD Corporate Responsibility
Reporting, World Investment Report

CSR Management:
Supply chain specific
Starbucks, USA
Entered into partnership with Conservation International in 1998.

The aim was to promote the adoption of agricultural practices that are
socially, environmentally and economically sustainable.

Coffee and Farmer Equity Practices (C.A.F.E. Practices) offer incentives
to suppliers who demonstrate independently verified performance of
environmental and social criteria.

C.A.F.E. Practices has become a model for addressing environmental
and social concerns through a company's supply chain.

EVOLUTION OF CSR IN
INDIA
Evolution of CSR
Philanthropy for ones community
Based on religious beliefs
19
th
century
Advent of social responsibility beyond ones own community
Driven by nationalism and adapting western cultural norms
Early 20
th

century
JRD Tata laid foundation for CSR in India with mass initiatives
Primarily based on an assumption of the obligation of business
to society
After 1950s
2000-2013
Modern CSR comes to the fore through major Indian
Corporations taking it up with a more formalized approach
Major changes made through the Companies Act 2013
Reporting Initiatives
Most companies mention CSR in their Annual
Reports

Few Companies opt for a separate corporation

Most information is made public
KPMG Research on CSR in India
Sample size 24 companies

25% follow GRI guidelines

21% were signatories of UN Global Compact

57 % partnered with government departments

67% partnered with NGOs

(Source: CSR: towards a sustainable future by KPMG
and ASSOCHAM)
BEST PRACTICES IN
CSR BY INDIA INC.
Dr Reddys Foundation
"Everyone has a purpose in life and a unique talent to
give to others. And when we blend this unique talent with
service to others, we experience the ecstasy and
exultation of own spirit, which is the ultimate goal of all
goals."
- Dr. Anji Reddy
LABs Livelihood Advance- ment
Business School

While employment avenues are increasing rapidly in India,
people with compatible skill-sets are hard to find
DRF(Dr. Reddys Foundation attempts to bridge the divide
between those who have access to opportunities and those
who are increasingly being marginalized.
LABS addresses the needs of youth (18-35 years) who are
constrained by
Low income levels
Inadequate skills
Irregular employment,
Absence of opportunities for training and development
Family indebtedness and
Little bargaining power at the economic or social level.

Results of LABS Initiative
So far 2,12,048 people have been trained
They are Self employed or Placed in jobs
They are no less than any business school graduates in
their own right
This is a good example of CSR and inclusive growth
Naandi Foundation(Britannia)
Promoted by industry leaders

Distributes biscuits for nutrition supplement for school
children through Naandi Mid day meal scheme

Mid-day meal scheme more than 1 lac meal cooked in
one place and distributed to schools- Hyderabad


CSR AND THE
COMPANIES ACT 2013
Application and Constitution of Committee
(Sec 135 of the Companies Act 2013)
Every company
- net worth of Rs 500 crore or more, or
- turnover of Rs 1000 crore or more ,or
- net profit of Rs 5 crore or more during any financial year
shall constitute a Corporate Social Responsibility Committee of
the Board.
The committee would comprise of three or more directors, out
of which at least one director shall be an independent director .
The Board of every company referred to above shall after
taking into account the recommendations made by CSR
Committee.


Organizational Governance
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Core Subjects
Implementing SR
7.2
Defining scope
7.5
Implementing in daily practise
7.7
Evaluating performance

7.8
Enhancing credibility

7.4
Integrating into organization
ISO 26000 Roadmap one of the focal points of
CSR Reforms
7.3 Working With Stakeholders
7.3 Communicating
Principles of SR
1. Ethical behaviour 2. Respect for rule of law
3. Respect for international norms of behaviour
4. Respect for and considering of stakeholder interests
5. Accountability 6. Transparency
7. Precautionary approach 8. Respect for human rights
Some Figures about India


By 2020 Indias GDP is likely to quadruple from the current $ 1.1
Trillion to about $ 4.5 trillion
Per capita income from Rs 50,000 to Rs 1,50,000
The number of households with income of more than Rs 16 lacs will
be over 18 million, while number of middle class holders (1.5 to 16
lacs) would grow by 50% to 180 million
Number of deprived householders below 1.5 lacs is likely to be
reduced by 25% to 180
Indian consumption is likely to increase 3.7 times to about 113 trillion
with discretionary expenditure likely to increase significantly.

Is it justified
Looking at the figures it is justified

As this investment is going to create more markets as the
development of these underprivileged masses will add to
the growing consumer base of firms in India

Emphasis though should be on results and thats where
CSR reporting comes to the fore