INSTITUTE FOR INTERNATIONAL MANAGEMENT & TECHNOLOGY

Which set of companies would you work for /with and why? 19/07/11
Union Carbide Company (Bhopal) Satyam Enron Microsoft Infosys Tata ITC HUL Maruti Suzuki

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INSTITUTE FOR INTERNATIONAL MANAGEMENT & TECHNOLOGY 19/07/11

Corporate Social Responsibility

Dr.Kakoli Sen

INSTITUTE FOR INTERNATIONAL MANAGEMENT & TECHNOLOGY

Session Objectives:

1. Understand the nature and purpose of Corporate Social Responsibility (CSR), how did it start, why do companies do it 2. Understand what is CSR & what is not 3. Familiarize with the CSR initiatives in India and how they practice CSR 4. Understand how to develop a culture of CSR in organizations

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CSR

CSR is about how companies manage the business processes to produce an overall positive impact on society A commitment to improve community well being through discretionary business practices and contributions of corporate resource

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Council for Sustainable Development:

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large

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Perceived Stakeholders

Customers Government Stockholders Employees Society

3-6

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& Methodology

There are 3 levels of CSR : Level 1 : Compliance Level 2 : Philanthropy/Green wash Level 3 : - Innovations - Key business strategy - Leapfrog
Based on : John Elkington & Stuart Hart, et al.

INSTITUTE FOR INTERNATIONAL MANAGEMENT & TECHNOLOGY

CSR Level 1: Key Question : The least industry can do Polluter pays principle

INSTITUTE FOR INTERNATIONAL MANAGEMENT & TECHNOLOGY

CSR Level 2 Key Questions : Is industry voluntarily giving back something to the society? Are these actions inspired by a sense of guilt to the society, earning good name in market, philanthropy, etc.?

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CSR Level 3 Key Questions: Is it part of core business strategy? Is it adopted by the board?

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CSR initiatives in India

Tata Group Tata Motors Low Cost Transportation Dr.Reddys labs unmet medical needs of the poor in India & world HUL Project Shakti to create a sales force in the poorest regions of India Godrej Group schools, clinics, living facilities etc. Infosys, WIPRO, Intel K-12 education initiatives, youth education, teacher training, ITC mission : sunehra kal education, job support

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Bharat Petroleum, Maruti Suzuki, HUL village adoption for self reliance Glaxo SmithKline Beecham focus on health and healthy living in village, health camps, Jubilant Organosys Ltd. (pharma co.) TB eradication programme with UP Govt NGO Partnerships SAP India with Hope Foundation, Pantaloons Goonj, IBM Employee day

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CSR guidelines

National Voluntary Guidelines on Socio-Economic and Environmental development Responsibilities of Business brought out by the Ministry of Corporate Affairs Triple bottom line- people, planet & profit PSEs - Issued by Dept. of Public Enterprises, Ministry of Heavy Industries and Public Enterprises Must match with long term business plans Must reach the smallest unit ie. Village, Panchayat, Block etc. CPSEs to have a specific annual CSR budget (non lapseable)
3-5% of Net profit (less than 100 crores) 2-3% (100-500 crores) 0.5-2% ( more than 500 crores)