csr in business

8/11/2019 Csr in Business

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CSR IN BUSINESSByVishal Gaonkar

PGDM E-Biz


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Background of CSR in the

globe and US economy


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Key Issues in CSR

Labour rights:

child labour

forced labour

right to organise

safety and health

Environmental conditions

water & air emissions

climate change

Human rightscooperation with paramilitary forcescomplicity in extra-judicial killings

Poverty Alleviationjob creationpublic revenuesskills and technology


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Key drivers of CSR

Around the world

NGO Activism

Responsible investment

Litigation

Gov & IGO initiatives

Developing Countries

Foreign customers

Domestic consumers

FDI

Government & IGO


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United Nations Initiatives

UN Global Compact UN Principles for Responsible Investment

UNEP Equator Principles

ILO Tripartite Declaration of Principles

concerning Multinational Enterprises andSocial Policy (MNE Declaration)

UNHCHR Business and Human Rights

UNODC Anti-corruption

UNCTAD Corporate ResponsibilityReporting, World Investment Report
http://www.ilo.org/public/english/employment/multi/tripartite/declaration.htmhttp://www.unepfi.org/http://www.unpri.org/


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CSR Management:

Supply chain specific


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Starbucks, USA

Entered into partnership with Conservation International in 1998.

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

Coffee and Farmer Equity Practices (C.A.F.E. Practices) offer incentivesto suppliers who demonstrate independently verified performance of

environmental and social criteria.

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


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EVOLUTION OF CSR IN

INDIA


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Evolution of CSR

Philanthropy for ones community Based on religious beliefs19thcentury

Advent of social responsibility beyond ones own community

Driven by nationalism and adapting western cultural norms

Early 20th

century JRD Tata laid foundation for CSR in India with mass initiatives Primarily based on an assumption of the obligation of business

to societyAfter 1950s

2000-2013 Modern CSR comes to the fore through major IndianCorporations taking it up with a more formalized approach Major changes made through the Companies Act 2013


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Reporting Initiatives

Most companies mention CSR in their AnnualReports

Few Companies opt for a separate corporation

Most information is made public


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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 KPMGand ASSOCHAM)


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BEST PRACTICES IN

CSR BY INDIA INC.


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Dr Reddys Foundation

"Everyone has a purpose in life and a unique talent togive to others. And when we blend this unique talent withservice to others, we experience the ecstasy andexultation of own spirit, which is the ultimate goal of all

goals."- Dr. Anji Reddy


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LABsLivelihood Advance- mentBusiness 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 dividebetween those who have access to opportunities and thosewho are increasingly being marginalized.

LABS addresses the needs of youth (18-35 years) who areconstrained 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.


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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


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Naandi Foundation(Britannia)

Promoted by industry leaders

Distributes biscuits for nutrition supplement for school

children through Naandi Mid day meal scheme

Mid-day meal schememore than 1 lac meal cooked inone place and distributed to schools- Hyderabad


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CSR AND THE

COMPANIES ACT 2013


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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 ofthe Board.

The committee would comprise of three or more directors, outof which at least one director shall be an independent director .

The Board of every company referred to above shall aftertaking into account the recommendations made by CSRCommittee.


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OrganizationalGovernance

HumanRights

LabourPra

ctises

Environm

ent

Fairoperating

practises

Consumerissues

Community&

society

developm

ent

Core Subjects Implementing SR

7.2Defining scope

7.5Implementing in daily practise

7.7Evaluating performance

7.8Enhancing credibility

7.4Integrating into organization

ISO 26 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 law3. 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


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Some Figures about India

By 2020 Indias GDP is likely to quadruple from the current $ 1.1Trillion 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 16lacs) would grow by 50% to 180 million

Number of deprived householdersbelow 1.5 lacs is likely to bereduced by 25% to 180

Indian consumption is likely to increase 3.7 times to about 113 trillion

with discretionary expenditure likely to increase significantly.


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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 tothe growing consumer base of firms in India

Emphasis though should be on results and thats where

CSR reporting comes to the fore

csr in business

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