Executive summary and recommendations: CSR in India – perspectives for business May 2007 1 May 2007Prepared for: Collage Article 13 56-58 Community Centre East of Kailash New Delhi - 110 065 INDIA Phone: +91 26436810 / +91 98 1007 1292 Email:
[email protected] Prepared by: Article 13 Group 71a The Grove London W5 5LL UNITED KINGDOM Phone: +44 20 8840 4450 Email:
[email protected] Registered in the United Kingdom No. 03624247 Registered Office: 52 High Street, Pinner, Middlesex, HA5 5PW Introduction If the purpose of a company is to deliver profit to shareholders what role does Corporate Social Responsibility (CSR) play? Why has the topic risen up corporate agendas over the last 15 years? Why now? What does the term actually mean? CollageArticle 13 – a new joint venture consultancy considered these issues as part of this launch piece of research particularly focussing on India. There is little consensus on the definition of CSR. A useful pointer is provided by the UK Department for Trade and Industry who define CSR as a company’s response to the issues on the sustainable development agenda. Sustainable development can be further defined as comprising the social, environmental and economic agendas (sometimes called the triple bottom line). The reason for sustainable development has been classically stated in the Brundtland Report as “meeting the needs of the present without compromising the choices available for the needs of the future”. But why should this matter to business? What are the business drivers to take on the agenda? The World Business Council for Sustainable Development (WBCSD) defines CSR as "The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large”. Is this rhetoric or practice-based reality? In KPMG's International Survey of Corporate (Social) Responsibility Reporting 2005, which surveyed more than 1,600 companies worldwide and documented the top ten motivators driving corporations to engage in CSR for competitive reasons, the following emerged: • Economic considerations • Ethical considerations • Innovation and learning • Employee motivation • Risk management or risk reduction • Access to capital or increased shareholder value • Reputation or brand • Market position or share • Strengthened supplier relationships • Cost savings The report concluded that by creatively responding to these market forces, and others generated by the CSR movement, organisations can reap considerable benefits. Collage Article13 used this finding as the start of a practice-based line of enquiry into what is actually going on in one of the countries included in the survey, namely India. The questions we asked were: what is actually going on in CSR (Being reported) in leading companies; and what are the benefits of this CSR activity to the business and do those benefits match up with what is being looked for by potential employees (graduate and post graduate students). We assess the implications of the findings of this study and the recommendations arising for the future. ©Collage Article13 2 Methodology There were three phases of the research: • Desk- and web-based research • Questionnaires with students (structured quantitative research) • Interviews with leading HR professionals in India (insight interviews) 1. Desk and web based research: • An initial search was conducted within the public domain to review the CSR reported practice of large Indian corporations, which are acknowledged to be at the forefront of the engine of economic growth in India. This was established through selecting leading growth sectors and reviewing the leading company in each sector. • To augment this, a detailed search was conducted in business journals, market research sites, business newspapers, and publications to study their CSR activities, CSR strategy and identify metrics used by them (if any). • This was followed by comparing these leading companies across sectors with the selected benchmark of the Tata group of companies (Indian leadership company) and with BP (in the International arena). The companies reviewed were: • Benchmarks: Tata and BP • Information Technology: Wipro, Infosys, • Two-wheelers: Hero Honda, Bajaj • FMCG: Dabur, Godrej • Rural Marketing: Hindustan Unilever, ITC • Telecom: Airtel, BSNL • Real Estate: DLF • Oil and Gas: ONGC, IOC 2. Questionnaires with students: • A structured questionnaire was prepared and distributed to four leading graduate and post graduate institutions in India. • The data from completed questionnaires was entered into a spreadsheet for analysis as to what leading potential employees were looking for from companies in their job and career selection and if CSR would influence their choice. 3. Insight interviews with HR practitioners from companies: • A select number (three) of interviews were carried out to gain insight into the HR (or employers) perspectives on what leading employees (current and future) were looking for from companies and how CSR influenced this. The complete research results including a breakdown of the student responses is available in Appendix 1 and 2 of this document. ©Collage Article13 3 Employees The desk and web research highlighted some explicit commitments to employees. Their view of the challenge in future for CSR is: • “CSR is picking up now as an area where companies are showing interest.” • “Organisations are getting competitive in whatever they do. it would be difficult to make it popular amongst corporates. • Massive poverty alongside increasing and booming wealth. Unless more visibility is given to these programmes. it is a cosmetic tool to ward off regulatory scrutiny. This was not. environment and health areas but there are within those programmes four emerging themes as to how the companies reviewed are responding with CSR to the issues in India.” • “Social Consciousness is not priority for most corporates. education. In such a scenario. companies are being closely monitored under provisions like corporate governance and RTI Act which bind organisations towards ethics and transparency. This could be an issue particularly with skilled employees and ensuring the knowledge and skills are retained in the companies. The student research shows CSR is a job critical issue for students. They are judging on more than community initiatives as environment goes up their agenda.Commentary and recommendations The perspective of the HR professionals provides insight to the implications of this research and the status of CSR in corporate India. future looks healthy and people in general can expect to derive benefits out of it. ©Collage Article13 4 . if the small players are doing it…there is not enough publicity. This echoes the combination of factors which has driven a step change in the development of CSR in other countries in the world. They are: 1. it is limited to the big players. will vouch that it has stood them in good stead. To most organisations. This demonstrates signs of another driver towards CSR. Moreover. However.” It is the last quote above which perhaps sheds light on the next driver towards CSR for Indian companies and the link with regulation and scrutiny. but raises the issue that it could be dismissed in the quest for economic growth. • How to balance the needs and wants of a growing economy with the scale of the issues above? The review of the findings (which follows on page 7) shows programmes in the community. What are the CSR issues in and for India? From the review of companies reporting. and • A move away from a traditional agricultural based economy. it is apparent that the following are issues that they are aware of: • A huge and growing population. however. Organisations which believe in it however. The HR insight shows CSR can yield employee brand. • Mass urbanisation. with the spectre of HIV/AIDS alongside diseases of the world’s neediest people. employee motivation and corporate distinctiveness as well as governance. evidenced in all the companies reviewed. Stakeholder perspective – is it missing Although stakeholders are mentioned in some reports there does not seem to be a strategic approach to involving the stakeholders. What is not clear is how much the stakeholders in these programmes are involved in the decision making as to what their issues are and how they might be best addressed. understanding the impacts on them. 4. There is some work enabling women to develop their own programmes and have access to micro finance. At best this could yield governance and reputation and early risk identification at a minimum this could improve the effectiveness of the varied initiatives and potentially corporate reputation. This seems to be a legacy of the philanthropic approach. This is reflected generally in the lack of explicit links between employees and the community commitments. business objectives to the corporate impacts and therefore the stakeholders and integrating their views and issues into corporate planning. Overall there appears to be a potential lack of a strategic approach to these programmes. With the growth in the economy of India the companies operating within it will come under increasing scrutiny by the rest of the world. • • • Economic considerations – the main driver of business in India. not evidenced in CSR responses Ethical considerations – the main driver of CSR in business in India Innovation and learning – focused towards community as opposed to CSR enabling innovation and new product and service development within an organisation Employee motivation – in one case. linking mission. Linking back to the KPMG checklist of drivers (and opportunities for companies using CSR). This could mean companies missing emerging signs of risks and losing out on valuable insights to business strategy (and as shown in other global companies the ‘granting of a licence to operate and grow’).2. Work in education and in rural programmes tends to predominate. Perhaps this is an area for a quick win? 3. It can be deduced that the other areas/drivers are either not being considered by the companies and as such present emerging risk and missed opportunity. where it has been gained. Environment – a tipping point The environment is considered ‘covered’ through the certification to ISO14001. What that term community means in practice differs from very local to the company initiatives to wider commitments to the masses. Is this an opportunity that is being missed by other companies? The lack of a reported strategic approach to the environment perhaps demonstrates a serious risk for companies as other countries face up to the challenge of natural resource shortages and the effects of climate change. vision. the findings of this research suggest CSR in India is focused on the ethical considerations area supported by brand considerations (philanthropy). Where it is well covered there is some mention of cost savings. Community The desk and web research clearly illustrated the focus towards ‘community’. but the student perspective shows this is a missed opportunity Risk management or risk reduction – CSR provides early warnings and acts as a tool in identifying risk – this is a missed opportunity • • ©Collage Article13 5 . develop a strategic approach to CSR based on understanding of the impacts and the tipping points in resource shortage or price rises Recognition that the environment is a tipping point and natural resources such as water and fertile land are potential business threatening issues Realisation that the world is watching India and China and brand reputation and image can be made or destroyed in a single action Understand that CSR presents an opportunity to demonstrate corporate values. voluntary divide • ©Collage Article13 6 . and employee brand as well as deliver governance. across sectors. Shell. Monsanto Reputation or brand – this appears to be an important issue for Indian companies but it is not clear if they have realised how CSR programmes and strategies can help build their values and value as a brand Market position or share – a longer term missed opportunity Strengthened supplier relationships – missed opportunity especially up the supply chain to American and European markets and customer demands Cost savings – Missed opportunity to build business efficiency and effectiveness Recommendations The findings and analysis suggest key recommendations: • • • • • Review approach of the company against the KPMG survey of global responses From that. distinctiveness. This could propel companies into the coveted ‘world class’ status The opportunity for partnership in sectors. across the corporate.g.• • • • • Access to capital or increased shareholder value – lack of CSR strategies and programmes have reduced shareholder value at times of societal shifts in expectations e. Mithapur. Babrala and Mathigiri – around industrial facilities. grievance cells. The need to address employee issues: The Tata Group has more than 245. Tata were the pioneers in employee benefits that were later mandated through legislation in India and elsewhere in the world. • It recognises that diversity to reflect socially disadvantages sections of the society in the workplace has a positive impact on business. leave with pay. Tata has created cities and towns – Jamshedpur. welfare departments. which is unparalleled in the country. bonus and gratuity were introduced by the group before any legal rules were framed on them. medium or low based on their focus as reflected by the financials and organizational resources devoted to CSR causes.The findings in summary Corporate reporting – desk and web based review In summary the review highlighted the following: Community ITC HLL Airtel BSNL Infosys Wipro IOC ONGC Godrej Dabur Bajaj Hero Honda DLF Tata BP The companies have been ranked high. training institutes. accident compensation. along with the number and size of initiatives. to share its knowledge and expertise. Tata Steel maintains Jamshedpur's public utilities such as the local municipality and takes care of road maintenance. The eight-hour working day. maternity benefits. Tata Steel has floated Jusco as a separate entity. Considering the good standard of the maintenance facilities. provident fund. free medical aid. water and electricity supply.000 employees. Environment Education Health High Med Low Specifically reviewing how the other companies have picked up on these issues the following highlights emerge: 1. healthcare and sanitation. streetlights. Bajaj Auto provides interesting and explicit commitments to employees through its company’s policies: • The Company believes that equal opportunity in employment for all sections of the society is a component of its growth and competitiveness. ©Collage Article13 7 . is the only service provider offering rural telephony as part of its social responsibility. BSNL is the only telecommunication service provider offering rural telephony as part of its social responsibility. BSNL with support from government plans to provide broadband to all gram panchayats. For HLL. measuring and enhancing the community work that group enterprises undertake. It plans to have a partnership program with educational institution/s to support and aid students from socially disadvantaged sections of the society. in which Bharti Foundation has supported Akshaya Para in providing meals to 43. BSNL plans to provide broadband to 20. The Company makes all efforts for upgrading the skills and continual training of all its employees to enhance their capabilities and competitive skills. watershed development. and the Mid-day Meal Programme. training. the Foundation has plans to start a large number of primary schools in rural areas across the country. This was aimed at directing. approximately 9% of the company’s resources for community involvement come in the form of employee time. secondary and higher secondary schools and public health care centres by end of 2007. Its selection of business partners is not based on any considerations other than normal business parameters. However.000 villages that are already connected through optical fibre. Infosys implemented health clubs and health programmes. the Company will select a business partner belonging to a socially disadvantaged section of society. such as health week. The need to be responsible for the community (local or disadvantaged): Tata Chemicals set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social objectives for the communities in and around Mithapur and Babrala. Bharti Airtel founded the Bharti Foundation in 2000. in collaboration with the United Nations Development Program (India). created the Tata Index for Sustainable Human Development. several initiatives were started such as the Bharti Computer Centers. since it is of utmost importance for achievement of the country's social and economic goals. rural energy. It will also provide teachers’ training facilities. ©Collage Article13 8 . where its facilities are located. It also implemented safety programs to improve awareness about precautions and measures to improve road and personal safety. the Bharti Library Programme.000 children in five states. Their time is ranged from their involvement in Ashadaan to the disaster affected Yashodadham village near Bhuj.000 children per day in 292 government schools. 2. BSNL is offering special tarifs for rural subscribers by providing lower rental and higher free calls as compared to urban area subscribers. relief work and infrastructure. the company is committed to provide quality Telecom Services at affordable price to the citizens of the remotest part of India. women’s programmes. TCCI. which have provided computer learning to more than 130. At Infosys employees are encouraged to report workplace hazards and incidents to the concerned officials and contribute to implementing solutions.” Through the foundation. HLL management trainees spend approximately four weeks on Project Shakti in rural areas with NGOs or Self Help Groups. aimed to encourage reading habits of children. animal husbandry. Some of the initiatives of TCSRD are: agricultural development.• • • • The Company is not biased against employing people from disadvantaged sections of the society. For the coming years. if the applicant possesses competitive skills and job credentials. According to Bharat Sanchar Nigam Limited (BSNL). nutrition programmes and ergonomics training. No discrimination of any type is shown in this process. Bharat Sanchar Nigam Limited does not have any direct subsidy schemes/ programmes for public. with the vision: “To help underprivileged children and young people of our country realise their potential. education. In case of equal business offers. BSNL. which include general OPDs.800. literacy. Through this. HLL launched Project Shakti in 2001 to create income-generating capabilities for underprivileged rural women by providing a small-scale enterprise opportunity. To fight AIDS. Parmeshwar Godrej. Y. the company addresses the most deprived and weaker sections of the society including women. ©Collage Article13 9 . The trust initiates sustainable. employment. (Quote from Chairperson Brijmohan Lall Munjal) Godrej funds the NAZ foundation which has evolved and implemented a holistic approach to fight HIV. launched a three-year Heroes Project which seeks to develop coordinated campaigns to address the spread of HIV/AIDS and reduce stigma and discrimination by educating the public. In 2004. integrating various aspects such as health. education. and empowerment. The project has been extended to 15 states covering 80. S. vocational training.Bajaj Auto’s philanthropic activities among the rural poor are carried out by a Trust. Burman. and to improve rural living standards through health and hygiene awareness.Deveshwar. These projects have a positive impact on the quality of rural living standards Hero Honda are committed to community as "We must do something for the community from whose land we generate our wealth”. The Company sees no conflict between the twin goals of shareholder value enhancement and societal value creation. The company has launched ‘i-Shakti’ kiosks – an IT-based rural information service developed to provide information and services to meet rural needs in agriculture. eye screening and eye operation camps. children. habitat and language. Mr. especially women. The total strength of Shakti Entrepreneurs has reached over 30. Established in 1987 by Ramkrishna Bajaj in memory of his mother. family welfare. In 1993. health awareness through meetings. Dabur has a vision of being a company dedicated to the health and well being of every household. and hygiene. integrated development through long term projects in rural health. and the unemployed.5 million farmers by enabling them to access customised crop-specific information in their native village. Through its poverty alleviation schemes. focusing on prevention as well as treatment.C. "What is that life worth which cannot bring comfort to others”. To improve business skills of the rural population. watershed development and women’s empowerment. illiterates. The groups focus is on rural development. Vernacular websites relating to each agricultural crop that the company deals in provide ready and real time information to even marginal farmers on the prevailing Indian and international prices and price trends for their crop. expert knowledge on best farming practices. Dabur India Ltd established Sustainable Development Society (SUNDESH). extensive training programmes are held. education and adult literacy. antenatal checkup. who said. "Envisioning a larger societal purpose ('a commitment beyond the market') has always been a hallmark of ITC. K. Jankidevi Bajaj. Healthcare: The company organises camps. hygiene and sanitation. the Trust provides micro-credit and income generation opportunities for the poor. health. Godrej & Boyce has opened a clinic at its Godrej Memorial Hospital in Mumbai. vaccination for children aged 0-5 years. this Trust acts as a catalyst to development at the grass root level in 32 villages around its plants in Pune and Aurangabad. improving agricultural and livestock yield. a registered voluntary organisation. ITC's e-Choupal empowers 3. drawing inspiration from its founder Dr. the Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). wife of Chairman Adi Godrej.000 villages. and micro level weather forecast. The challenge lies in fashioning a corporate strategy that enables realisation of these goals in a mutually reinforcing and synergistic manner". Quoting ITC Chairman. ” Its major thrust for CSR is education. 83. The Green Rating conducted by the Centre for Science & Environment. Two. Its main objective was to fulfill the social responsibility of the company by supporting and encouraging the underprivileged sections of society. healthcare and education for their children. Godrej has been a key player in aiding education.Women Empowerment: ITC aims at micro-credit and skills training to generate alternate employment opportunities for women to facilitate better nutrition.000 sites are using a green-shelter system that provides cooling for four hours in the Base Transceiver Station. A different approach to the environment is demonstrated by Corporate Social Responsibility in Godrej which “covers many aspects and areas. you must. was awarded ISO 14001 certification in 1997 Hero Honda is certified for its Environmental Management Systems according to ISO 14001. The emerging recognition of the role of the environment and the potential as a tipping point: Tata Steel has laid great emphasis. the philanthropic arm of Infosys Technologies Ltd. donation of aid equipment to the physically challenged in rural areas of Karnataka. relief work conducted after natural disasters. For Airtel. in order to develop critical.” according to the company. Wipro is a socioeconomic citizen. and construction of orphanages in rural areas. A question from the research team is around the use of ISO14001 systems to help take these initiatives further? Bajaj Auto’s has an Environmental management system. over the years. Infosys Foundation. Its Chairman Azim Premji has launched his own Foundation – Azim Premij Foundation – with a focus on universalisation of education. creative and caring citizens. This system saves cost and reduces pollution. The company generates roughly 700 kg of various wastes (excluding fly ash) in the process of producing one tonne of crude steel. The company ©Collage Article13 10 .16% is utilised either through recycling and reuse in the company's own processes or is sold as raw material to other industries. if you can do good. 1999: Environment Management System of Dharuhera Plant was certified with ISO-14001 by DNV Holland and in 2000: Environment Management System of Gurgaon Plant was certified with ISO-14001 by DNV Holland. 3. on creating a green environment in and around its plants and on utilising the waste generated in the process of manufacturing steel. New Delhi. The rest is sent for land filling. Of this. 5. for all automobile companies in India. The Foundation has been working on initiatives such as: training destitute woman in tailoring and donation of sewing machines and material to them to improve their livelihood.1 for its environmental performance. Wipro Applying Thought in Schools: This initiative is aimed to rekindle the spirit of curiosity in children. came into existence on 4 December 1996. The project ranges from training programmes for teaches and principals to concerted efforts for transforming entire schools. ranked Hero Honda as No. DLF’s major CSR focus is on the welfare of masses but does not report much on how and where. It started in 2001 and it has reached over 4. the greenery and mangroves are just one of them. environment and the health verticals besides looking after its own employees. Wipro believes in two fundaments that have guided its engagement: “One. which is an integral part of the overall management system at Bajaj Auto’s Aurangabad plant. counselling centers to rehabilitate marginalised devadasis in North Karnataka.500 teaches and principals from 241 schools in 4 states. strongly believes that the green environment enhances productivity and quality which has been appreciated by all employees and visitors. Mughal Sheraton. Government of Rajasthan and the ITC Rural Development Trust. which was aimed at facilitating the development of corporate greenhouse gas inventories and subsequent investments in greenhouse gas mitigation projects.a. The Sohrabji Godrej Green Business Centre launched the Green Business Initiative in December 2005. All ITC Units and the four hotel properties owned by ITC (Maurya Sheraton. ITC focuses on the use of renewable energy such as biomass and solar energy. pollution control programme. in which all refineries are provided with facilities to control pollution from different sources. the single largest mangrove belt in Mumbai. ©Collage Article13 11 . Dabur works towards developing sustainable cultivated source for herbal ingredients. The company is also involved in reforestation in the Himalayan range. Seven refineries and the IndianOilResearch & Development Centre at Faridabad have achieved the ISO 14001:1996 accreditation for Environment Management System. have signed a memorandum of understanding (MoU) for the project in Kalyanpura village. IndianOil’s Mathura Refinery has been certified for "Occupational Health and Safety Management System (OHSMS)" by DNV – the first refinery worldwide to receive this certification and Mathura Refinery was the first Refinery in Asia. over 250 km from the state capital. to be certified ISO-14001 for its efficient Environmental Management System. and the third in the world in the Petroleum Sector. Environmental initiatives include: development of cleaner fuels such as diesel with low sulphur content and biodegradable lube formulations. In 1998-99. use of carbon neutral fuels and large scale tree plantations through social and farm forestry have resulted in sequestering 85. and ecological parks. Its efforts in the field of energy conservation. which would help in reducing the strain on natural habitat of these herbs. Indian Oil Corporation has been an active founder-member of the United Nations Global Compact (UNGC).500 crore p. Jaipur. A number of units have installed solar thermal systems mainly for use in canteens and kitchens. It claims it endeavours to be a carbon positive corporation. labour and civil society to support universal environmental and social principles. which are scientifically designed green belts that have been developed at Gujarat Panipat refineries. This award has been presented to Indian Oil for installation of Flue Gas scrubbing (BELCO) system to treat flue gas from RFCC unit of Barauni Refinery to remove particulate matter and sulphur di-oxide. an international initiative that brings companies together with UN agencies. The Soonabai Pirojsha Godrej Foundation has been maintaining the western bank of the Thane Creek. to serve as a pollution sink and to enhance the aesthetic look of the refinery area. the Salaya-Mathura Pipeline and the Koyali-Ahmedabad Pipeline became the first oil pipelines in the world to be accredited with ISO-14001 for Environment Management System. Indian Oil has included CSR in its vision and mission statement and has built its corporate strategies around it. Indian Oil won the TERI Corporate Environmental Award 2002-03 in category III (companies with an annual turnover exceeding Rs. The company has a mission of “Enriching quality of life everyday everywhere”. and engages in community projects in water adjacent to manufacturing sites.6% of the Carbon Dioxide (CO2) emitted by its operations.). The company has a management system conforming to ISO 14001. The Watershed Project. Chola Sheraton and Grand Maratha Sheraton) have obtained ISO 14001 certification for their Environment Management Systems. HLL is also committed to extending its efforts on water management to the larger community. ITC's watershed development seeks to achieve two critical objectives: water conservation and soil enrichment. and communities. in which Infosys Environmental Management System (EMS) is subject to third party surveillance audits. it was found to conform to the EMS Standard ISO 14001:2004. HLL's CSR philosophy is embedded in its commitment to all stakeholders. “Corporate Social Responsibility is a way of life at Bharti. It also aspires to abiding commitment to safety. the environment. including consumers and employees. Its mission recognises stakeholders: “Airtel is strongly committed to being a responsible corporate citizen.ONGC has all its operational facilities certified for Quality. OHSAS 18001.” (Sunil Bharti Mittal – Chairman and Managing Director. Its approach to CSR is summarised as “an approach to business that exemplifies transparency and ethical behaviour. quoted from the 2005-06 annual report) Hero Honda Motors takes considerable pride in its stakeholder relationships. In its vision/mission and the philosophy regarding CSR it claims that the company feels responsible not only for wealth creation but also for social and environmental good. Employees maintain a dialogue with key groups. ISRS and ISO 14001. In 2005. particularly in the area of stakeholders which is not necessarily explicit in the other reviews. ONGC is playing an important role in strengthening India's corporate world with a tuned sense of moral responsibility towards the community of people where it operates and the country at large. ©Collage Article13 12 . social and environmental value”. and the society the company operates in. 4. Providing a platform to leverage the potential of the citizens of tomorrow and concern for the environment are our top priorities. along with the environment. Occupational Health& Safety and Environment Management (QHSE) based on ISO 9001. into the national economic mainstream. Ashok Kumar Balyan. ESIA (Environmental and Social Impact Assessments) studies are carried out to help BP and its stakeholders understand the potential impact of a proposed project on environment or society. such as national NGOs.” Airtel has been looking after the needs and interest of its stakeholders. Infosys programmes on environment are being evaluated through the Ozone initiative. especially ones developed at the grassroots. respect for stakeholder groups and a commitment to add economic. He is actively leading the continuous change journey of ONGC called ‘Corporate Rejuvenation Campaign’. health and environment to enrich quality of community life and to imbibe high standards of business ethics and organisational values. 2003 and is currently responsible for formulation and implementation of policies in tune with the strategies of ONGC. Dr. consumers. including employees.and socially-backward region in Dharuhera. joined the Board of ONGC as Director (Human Resources) on August 23. Airtel: According to the company. in different ways and make recommendations for the company on the social and environmental impacts. The company engages itself in dialogue with a wide variety of groups to create strong and lasting relationships with them. The company believes it has managed to bring an economically. Haryana. The stakeholder perspective – is it missing? BP provides an interesting global counterpoint. ) 50 45 Number of mentions 40 35 30 25 20 15 10 5 0 rte l h In fo sy s IT C LF re j ja j sa ls on da le ve r ab u BS N ut c ch U ni te 60 An G od D H er o Question 8: What are the top of m ind issues that corporate India needs to take care of? Community Upliftment Human Rights Children/Women Health and Education Health Related (cancer. HIV) Environment Education 0 10 20 30 40 50 70 Top of mind issues H Company in d ©Collage Article13 us ta n H Num ber of responses U ni W ip Ba Ai D H ro L r 13 .Students’ perspectives Q7: In your view which is the most "responsible" company/companies in India? (Figures based on numbers of mentions rather than ranking figures. In my opinion. Candidates. Why should companies take notice? The results from what students are looking for from prospective employees provide the answer: Q5: Would a high CSR involvem ent of the com pany influence your decision to join the com pany? Not applicable/no answ er 5% No 40% Yes 55% Q1: What are the parameters on which you would choose a company for employment? Company's location and benefits they provide Parameters for choosing company Company's products or services Company's support of the community and environment Company's values Image of company (Brand name in t he market) Job Description Learning and Development opport unities Profitability Salary 0 10 20 30 40 50 60 70 Num ber of responses HR Insight If students are claiming the views shown above.The students’ responses demonstrate their view of what is required. before joining make a holistic assessment of the company that they are likely to join. is this experience reflected in the HR practitioner’s experience? “It does to an extent. Organisations of late are laying focus on CSR having realised the importance of giving back to the society in some form or the other. it may be irrespective of levels. what they have accrued from them. This also throws some light on the ethics which the organisation practices and hence it also in a way contributes to their brand building strategy.” ©Collage Article13 14 . it would be difficult to make it popular amongst corporates.” “Social Consciousness is not priority for most corporates. Infosys and Wipro. it is limited to the big players. In such a scenario. The best examples of course are companies like the TATA Group. This is an increasing issue for Their view of the challenge in future for CSR provides perspective: • “CSR is picking up now as an area where companies are showing interest.” • • ©Collage Article13 15 .” Interestingly “It reflects on good corporate governance”. future looks healthy and people in general can expect to derive benefits out of it. it is a cosmetic tool to ward off regulatory scrutiny. if the small players are doing it…there is not enough publicity. will vouch that it has stood them in good stead. companies are being closely monitored under provisions like corporate governance and RTI Act which bind organisations towards ethics and transparency.And does the approach to CSR deliver other benefits? “Companies which believe in it. However. Unless more visibility is given to these programmes. companies post Enron and WorldCom. To most organisations. view it as an integral component of their business model. Moreover. Organisations which believe in it however.” “Organisations are getting competitive in whatever they do. 10 April 2007.Appendix 1: CSR Practices in India The full research document on which the summary and recommendations were based. Table of Contents Executive Summary Reason of choosing Tata and BP as benchmarks Methodology and Analyst Commentary Methodology Analyst Commentary Appendix Case Studies Details of the Survey 17 21 29 29 29 30 30 68 ©Collage Article13 16 . the company will have to look at not just what it should do with its profits.Executive Summary What is CSR? There is no unanimity on the definition of what constitutes Corporate Social Responsibility (CSR). Most definitions describe CSR as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (CEC: Green Paper for Promoting a European Framework for Corporate Social Responsibility). This implies looking at impacts on all its stakeholders. released in 2004. ©Collage Article13 17 . implies that CSR has to be seen as an essential part of business — not something divorced from business. Companies like Tata group and ITC are at the forefront of adopting the triple bottom-line approach in India. the top 10 benefits of engaging in Corporate Social Responsibility are: • Increased profit • Access to capital • Reduced operating costs/increased operational efficiency • Enhanced brand image and reputation • Increased sales and customer loyalty • Increased productivity and quality • Increased ability to attract and retain employees • Potentially. An increasing number of companies are viewing CSR as a comprehensive set of policies. defending attacks and building a competitive edge. but how it made its profits in the first place. Under this concept. a UK based CSR consultancy.” According to a global study by CSR network. their specific approaches and strategies are mainly based and driven by the ethical beliefs of the founding fathers. reduced regulatory oversight • Reducing risk. the company is judged on the basis of its triple bottom-line: its returns to shareholders. CSR could be a remedy for protection against sudden corporate downfall. and increased risk management • ‘Keeping up’ with competitors and where the market is Measurability and emerging metrics – Triple Bottom Line (TBL) An increasing number of companies are adopting a new way of operationaling the intangible concepts of ‘corporate social responsibility’ and ‘sustainability’. communities and the environment. environmental and social performance information. the socio-economic environment. Birla or the Godrej family. processes that are supported and rewarded by the top management. For business conglomerates like Tata. If integrated in the overall business strategy. However. The basic objective of CSR these days is to maximize the company’s overall impact on the society and stakeholders. In this concept. CSR and Indian Experience The CSR framework of companies in India has evolved over a period of time. of late. The World Business Council for Sustainable Development defines CSR as “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large. Triple Bottom Line or TBL focuses on data collection. which is gaining ground. analysis and decision making using economic. the companies have been influenced by several factors including business areas in which the companies operate. This view. practices and programs that are integrated throughout the business operations. and the emerging opportunities. A growing number of corporates feel that CSR is not just another cost to the bottom line but is critical for protecting the reputation. the role of the industry associations must be recognized as significant. ISO 9001. ISRS and ISO 14001 compliant. ©Collage Article13 18 . Most of the companies that we surveyed were Quality. While the CII has various committees for social development activities and have even developed a voluntary social code for its members. chambers like FICCI. government. there is very slow progress seen. A 2002-study by an NGO ‘Partners in Change’ showed that corporate involvement in development tends to be ad hoc and CEO-driven. HLL also uses a metrics called "Priority Action Radar" whereby it ranks its initiatives on different parameters such as consumers. • While a few companies and business groups have taken a lead in promoting CSR in India. • Companies that work with communities do not necessarily distinguish between the privileged and the under privileged among them. • The overall approach still seems to be driven by philanthropy rather than integrating it with business as evident in the west. Without having a clearly demarcated budget and exclusive personnel support for CSR activities. rural welfare and environment are the most common CSR initiatives taken by companies. suppliers. communities. we tried to seek the vision that drives the CSR initiatives of the companies and how they channelise their organizational resources to carry out the same. Occupational Health & Safety and Environment Management based on SA 8000. OHSAS 18001. Education. partners. In the case studies. employees. leadership. most companies function on a rather adhoc basis.Although there is a growing realization among corporates about the necessity of CSR. Most companies do not have very clearly defined CSR guidelines. and employment. The most common award that was awarded to companies for their CSR initiatives were the Golden Peacock Award awarded by the Institute of Directors and TERI-CSR Special Award for initiatives in sustainable development. PHDCCI and the Bharat Chamber of Commerce have set up foundations for this purpose. • Only 11% of the companies had a written policy though more than 85% of the companies agreed that they have a responsibility towards society. investors. Most companies are not addressing more than two shareholders (customers and employees) with majority of them only addressing the concerns of customers. Only ITC and HLL have programs aimed towards their business partners e. Companies in the service space e. The above diagram has the category wise number of CSR initiatives on the Y axis and the number of stakeholders (customers.e. automotive and oil & gas space. is the summation of number of activities undertaken and stakeholders addressed by the companies (studied in this report) representing the sector. employees and business partners) taken care of by the initiatives on the X axis. telecom and IT lay greater importance on employee motivation and retention. we have included only DLF in our analysis. due to paucity of information regarding other players in this sector. don’t have any programs aimed at their employees. e-choupal and Project Shakti respectively. followed closely by FMCG. automotive or telecom.g. The real estate sector has the minimum number of initiatives. of Stakesholders Addressed Oil & Gas Real Estate Automotive IT FMCG Rural Note: The IT and telecom sectors have equal number of initiatives and are addressing same number of stakeholders. of CSR Initiatives Telecom No. ©Collage Article13 19 .g. On the other hand.g.Evaluation of Categories on the 3 stakeholders and their CSR initiatives Category Evaluation No. with the exception of Godrej. For the real estate sector. companies in the old economy space. • • • Companies in rural marketing space have undertaken most CSR initiatives. with special focus on community and health and education initiatives. they have relatively fewer initiatives in health compared to the global benchmark BP. followed by education. education and environment space. BSNL and DLF have the least number of CSR initiatives. the 4 key themes for Indian CSR programs are related to Community. Also. ITC lays great stress on community and environmental initiatives. Indian companies seem to be spending most of their time and effort on community initiatives followed by education and environment.Evaluation of CSR Themes of companies: As per the case studies. Companies in the automobile and oil & gas space have undertaken very few initiatives in addressing the environmental concerns. Community ITC HLL Airtel BSNL Infosys Wipro IOC ONGC Godrej Dabur Bajaj Hero Honda DLF Tata BP The companies have been ranked high. but is low on the initiatives taken in education and health. ITC is the only company in India which works on CSR programs related to climate change. DLF is involved in the field of education but BSNL doesn’t have presence in any other category. medium or low based on their focus as reflected by the financials and organizational resources devoted to CSR causes. with both focusing on community initiatives. environment and Health. which has initiatives in all four themes. ©Collage Article13 20 . Godrej focuses on environment and health initiatives. along with the number and size of initiatives. Environment Education Health High Med Low • • • • • While Tatas have a high focus and level of involvement in community development. Health sector has the least number of initiatives with four companies having no involvement in that category. the other companies that score high on CSR initiatives in India are ITC and Godrej. while it has low involvement in community development and education. After Tatas. Predominantly guided by environmental and social concerns. It has adopted social responsibility as one of its integral values and has made concerted efforts to link it with its overall strategy for achieving business excellence. Despite adverse economic conditions e. BP’s CSR initiatives have evolved over time – from taking on social responsibility for entire local communities in Iran to investing millions of dollars in renewable energy. Institutionalizing the Concept The Tata group has integrated its CSR initiatives through its trusts and group companies. "No success or achievement in material terms is worthwhile unless it serves the needs or interests of the country and its people.g.Triple Bottom Line (TBL). The group companies have shown the way by establishing a Tata Council for Community Initiatives to provide benchmarks for the enterprises of the group. do not buy from or sell to companies that do not measure up to its social responsibility standards. BP believes in being pro-active to minimize the environmental impact of their quest for oil and gas. the efforts of the group in recent years have been directed towards synchronization of the TBL. in the late 1990s. BP’s endeavors have always been more than mere philanthropy.' All the group companies are signatories to this code under which they have to actively assist in improving the quality of life in the communities in which they operate.indianngos. 1. Since inception. from Rs 670 million in 1997-98 to Rs 1. A survey conducted by the website www. the group has aimed at harmonizing environmental factors by reducing the negative impact of its commercial activities and initiating drives. the financial commitment of the group towards social activities kept on increasing. To institutionalize the concept. Financial Outlay The group has played an active role in nation building and socio-economic development since the early 1900s. it has drawn up the CSR charter that has been inserted into the group's 'Code of Conduct. the group has encouraged its employees to share their skills with others and work with community-based organizations.com revealed that Tatas spent Rs. After decades of corporate philanthropy. Setting Benchmarks The group has been actively involved in facilitating the development of this concept in India by setting standards and benchmarks." The group’s strong resolve regarding CSR shows as some of its companies such as Tata Steel. ©Collage Article13 21 .Reason for choosing Tata and BP as benchmarks Tata Group The Tata group is known for aggressively pursuing several CSR initiatives in India. the Tata group has placed equal importance on maximizing financial returns as on fulfilling its social and environmental responsibilities . In order to build social capital in the community. Through this. translated into vision into action. which encourage environment-friendly practices.5 billion on community development and social services during the fiscal 2001-02 – the highest by any corporate house in India. The Tata Group case study shows how it is integrating CSR with its business processes in the organization's journey towards business excellence. BP As one of the leading energy providers in the world. Recognition The dedicated CSR efforts by various Tata group companies have been globally recognized. which help to quantify their efforts. The different group companies have received several awards for their fulfillment of social responsibility.36 billion in 1999-2000. The group has always laid great importance on CSR and is evident from its mission as stated by JRD Tata. Since 2002. Safety and Environmental (HSE) management systems and processes in place to ensure that there are no accidents. the budget for education investment has doubled and BP continues to invest around 50% of its annual commitment on education.5 million with nearly $50 million spent on education. BP has framed its code of conduct to protect and promote the human rights of its employees. A new organizational structure has been designed by the company to deliver better safety performance. entrepreneurship and educational facilities.Initiatives BP gives prime importance to the safety of its employees and contractors along with the integrity and security of the plants and equipment. In 2004. Financial Outlay In 2005. BP made a commitment to spend around $500 million towards community investment in each five-year cycle. BP has put Health. no harm to people and no damage to the environment. BP takes active measures to develop community relations. BP community investment touched $95. It supports the Universal Declaration of Human Rights (UDHR) and follows the UDHR’s statement that “every organ of society” shall strive to promote respect for the rights and freedom outlined. ©Collage Article13 22 . Tata group’s work has been lauded over the years and has received numerous awards including the ‘Award for Corporate Social Responsibility in Public Health – 2007 by USIBC’. spread across education.’ The Tata Council for Community Initiatives in collaboration with the United Nations Development Program.Benchmarking: In order to compare the CSR performance of the companies with the leaders (Tatas and BP) in CSR. sports. measuring and enhancing the community work that group enterprises undertake. Tata Group contributes to environmental initiatives by the direct involvement of Tata companies to preserve the environment and formation of Tata Trusts. which support non-governmental organizations.25 cr (05-06) 3 cr (02) IOC ONGC 2 5 1 2 1 1 2 1 6 9 FMCG 25. Company TATA's BP Number of Initiatives Community Environment Education 8 8 3 1 3 2 Health 1 3 Stakeholders it addresses through CSR Customers Employees Business Partners 14 12 Rural Marketing 1 1 Outlay (in Rs) 380 cr (05-06) $2914 mn (2005) 1 ITC HLL 4 4 4 1 1 2 1 6 8 Telecom 3 46. It is a set of guidelines for Tata companies looking to fulfill their social responsibilities.91 crore (03-04) NA Airtel BSNL 3 3 1 1 2 6 2 IT 1 1 200 cr (2006-08) NA Infosys Wipro 3 1 1 1 1 2 1 5 3 Oil & Gas 1 1 13. ‘Civil Society Award 2006 by UNAIDS. rural development. health. parameters such as the number of initiatives. spectrum of stakeholders addressed and the financial outlay on CSR was studied. It has created towns and cities around industrial facilities for employee benefits. British Petroleum The firm’s CSR theme is centered on environment and society with its activities focused on responsible operations. 380 crore. ‘Golden Peacock Global Award for Corporate Social Responsibility (Asia)– 2007’. environment. climate change and development with systems and processes put in place to ©Collage Article13 23 .87 cr (03-04) 108 cr (06-07) (0. created the Tata Index for Sustainable Human Development aimed at directing. arts and employee relations. Community initiatives include formation of: • educational institutions • sports facilities • art and culture centers Tata’s other initiatives encompass setting up of rural development societies and organizations like Rallilove ACTS and Voltas for Women.75% of Net Profit) Godrej Dabur 1 2 5 1 1 2 3 1 9 6 Automobiles 1 70 cr (every year) NA Bajaj Hero Honda 2 3 1 1 1 3 2 2 6 9 Real Estate 10 cr (every year) NA DLF 4 1 5 NA Tata Group Tata Group investment on CSR in 2005-06 was estimated to be Rs. Airtel With primary CSR focus on education and environment. Samaj Seva Kendra to undertake social activities in the semi-urban areas and Kamalnayan Bajaj Hospital in Aurangabad. BSNL implements welfare programs and awards such as Bharat Sanchar Sarathy and Sanchar Seva Padak. empowerment and environment issues. Hero Honda was ranked No. It has set up establishments like Godrej Technical Institute at Bordi. BSNL. environment and health donations and it spends more than Rs 70 crore annually. The company has won several awards including India’s Most Customer Responsive Telecom Company Award and the Golden Peacock Award for Corporate Social Responsibility. Bajaj Bajaj’s CSR policy focuses on women empowerment. Airtel launched the CII-Bharti Woman Exemplar Award in 2005 to promote women’s empowerment at the grassroots. by independent auditors. library. Dabur established the Sustainable Development ©Collage Article13 24 . It received the ‘Golden Peacock National Award 2005’ for its contribution to the field of CSR. rural hospitals. Environmental Educators' Initiative and centers for primary. The Awareness program for Godrej and Boyce. animal husbandry. Hero Honda Hero Honda’s CSR focus is in the fields of education. to help underprivileged children. Vikroli. Climate Action Champion Award. sports complex and vocational training centres. Bharti Airtel founded the Bharti Foundation to provide facilities like computer education. adult and cross-cultural education. the single largest mangrove belt in Mumbai. Godrej and Boyce Manufacturing Company Limited looks after all the CSR. Godrej supports the Foundation for Medical Research. drinking water schemes.g. Mumbai for the cure of leprosy and funds the NAZ foundation which works for HIV. Mumbai was given the ISO 14001 certification. Bharat Sanchar Nigam Limited BSNL focuses its CSR activities primarily in the field of employee’s welfare activities. BSNL is the only service provider offering rural telephony as part of its social responsibility. It also offers its employees corporate group Life Insurance Policy. rural healthcare. Godrej Godrej’s major CSR initiatives include education. 1 in the automobile industry by TNS Corporate Social Responsibility Award. secondary and higher secondary schools and public health care centers by the end of 2007. The Environmental management system at Bajaj Auto’s Aurangabad plant. vocational training. The company has an ISO 9000 certified Telecom Training Institute. The Soonabai Pirojsha Godrej Foundation has been maintaining the western bank of the Thane Creek. Catalyst Award for Advancing Women in the Workplace. with government support. sanitation and education. mid-day meals etc. Chairman and MD. Pirojsha Godrej Research Laboratory. was awarded ISO 14001 certification in 1997. income generation. Hero Honda has set up an Integrated Rural Development Centre on the outskirts of Delhi. BP contributes to enterprise development. assistance during natural calamities and offering rural broadband plans. Bajaj was awarded the Meritorious Performance in Industrial Safety Award. and the Centre for Excellence at Pirojshanagar under its education initiatives. education and community relations by initiatives like ‘Black Economic Empowerment’ (BEE) strategy.ensure that there are no accidents or damage to the environment. Bharti Airtel has committed Rs 200 crore to support CSR initiatives over the 2006-08 period. Energy Company of the Year and “Gold Award” winner in the Renewable Energy category. adult literacy and social support to girls of backward classes. education. The company set up the Jankidevi Bajaj Gram Vikas Sanstha (JBGVS) to provide employment opportunities at grass-root level. Dabur Dabur’s CSR policy is focused on healthcare. In 2006. BP has won several awards for its endeavors in the fields of energy and employee benefits e. agricultural extension. watershed development. consequently for three years (1998-2001) by the National Safety Council. in connecting India’s remote areas and adhering to best labor practices. All major sites of BP achieved ISO 140001 international standard on environmental management. health programs. plans to provide broadband to all gram panchayats. skill development and income generation training. Jamshed Godrej. The company’s other initiatives include construction of educational institutes. a voluntary organization. ONGC decided to allocate 0. In 2003-04. and the inaugural 'World Business Award'. Under its project PURA. health and family welfare. organized an exhibition to create awareness among the residents and highlight various measures that need to be undertaken to ensure utmost safety. OHSAS 18001. and empowerment. education. IOC invested Rs. ONGC has all its operational facilities certified for Quality. award for ‘CSR in Emerging Economies 2005’. ONGC was awarded the Golden Jubilee Award for Corporate Social Responsibility in merging Economies in 2006. Exemplary Safety Performance from National Safety Council and the Government of Tamil Nadu for Tatapuram and am Tindiindivanam factories in 2005 and 2003 TERI-CSR Special Award for initiatives in sustainable development.‘Applying thought in schools’ is aimed at wholesome development of school children. and rural development. An Institute of Petroleum Safety. employment. education centers for the handicapped. The company organized fire safety drill and women self defense programs for welfare of the masses. Gurgaon. 46. the Forum of Women in Public Sector (WIPS) conferred the Best Enterprise Award on IndianOil for the Corporation's pioneering efforts towards Women development and related issues. instituted by the UNDP. women empowerment. wasteland management and livestock development. It is working with the Bill and Melinda Gates Foundation to spread awareness about HIV/AIDS. HIV-positive. 25. It has set up the IndianOil Foundation to preserve and promote national heritage. it undertakes initiatives for system for management of schools. The company along with DLF City residents. literacy. ©Collage Article13 25 . Indian Oil Corporation Most of the Indian Oil Corporation’s CSR initiatives focus on provision of drinking water and sanitation. rehabilitation of special or underprivileged children. The company’s philanthropic donations include donation of Rs 80 million for tsunami-hit areas in 2005 and Rs 10 million for Mumbai flood relief in 2005. DLF DLF’s CSR policy focuses on welfare of masses. healthcare and entrepreneurship in the community and supports water management and disaster relief in the country. Approximately 9% of the company’s resources for community involvement come in the form of employee time. watershed project and energy conservation. and empowerment of women and other marginalised groups in rural and backward areas. Health and Environment management (IPSHEM) was set up in 1989. health and hygiene programs in villages and women empowerment programs. Wipro Wipro’s CSR focus is on education and it invested Rs. IndianOil’s Mathura Refinery won the 2006 National Energy Conservation Award. ISRS and ISO 14001. In February 2007. From 2003.91 crore was spent on its CSR initiatives. an estimated Rs. Wipro’s initiative. Occupational Health& Safety and Environment Management (QHSE) based on ISO 9001. 3 crore on education programs in 2002. HLL HLL CSR initiatives primarily encompass areas like health and hygiene.75% of its net profits towards Social and Economic Development programs. Dabur was among the ‘Top 10 Great Places To Work’ in 2004. HLL launched project Shakti in 2001 to encourage rural entrepreneurship and set up ‘i-shakti’ kiosks to provide information and services to meet rural needs. education. Oil and Natural Gas Corporation Limited ONGC promotes education. integrating various aspects such as health. Other initiatives include inception of rural education programs. care for the destitute. agriculture. But the group’s focus is on rural development initiatives which include echaupal – aiming to provide agriculture-related information through IT. Its environment initiatives focus on renewable energy. primary education. HLL has won awards including Bombay Chamber of Commerce and Industry Civic Award for Community Development 2005. ITC ITC is involved in CSR initiatives like environmental performance.87 crore in CSR in 2003-04. vocational training centers and regional industrial units. women empowerment. The company has received several awards such as the Golden Peacock Award for 'Corporate Social Responsibility (Asia)' in 2007. ITC provides infrastructure facilities to select government schools under its "Project Classmate”. healthcare units.Society (SUNDESH). libraries for rural schools and donation of aid equipment to the physically challenged. vocational training centers for women. social rehabilitation and rural upliftment. Rs 13.25 crore was spent on construction of specialty hospitals and donation of ambulances. In 2003.‘Wipro Cares’ is another endeavor aimed to rehabilitate calamity-affected people and provide education to underprivileged children. Wipro’s Chairman Azim Premji has launched his own Foundation – Azim Premij Foundation – with a focus on universalization of education. Infosys was declared the 'Best Company to Work for In India 2005' by the BT-Mercer-TNS survey and was awarded the Economic Times Corporate Citizenship Award in 2001. Infosys The key areas of Infosys Foundation’s CSR drive are healthcare. art and culture. Other initiatives include construction of orphanages. ©Collage Article13 26 . learning and education. Wipro received a certificate of honor from the BusinessWorld FICCI-SEDF Corporate Social Responsibility Award for its contributions in the field of CSR. equipment and medicines. Infosys also has programs for paper/water conservation and waste management. In 2006. with almost 65% of the respondents choosing it. would be important criteria for selecting the company. On the other hand.4% 16. the primary reason for companies to indulging in CSR activities is because it is going to result in a better corporate reputation. Parameters for Choosing Companies 61. ability to Attract and Retain Emp Reduced Regulatory Oversight Aiming to be a World Player According to 64% students.9% 60.3% 21.9% 41. The other important factor considered by most of the students was the company’s image in the market. Accountability Inc.4% 12.2% 8.5% Learning Values Salary Job Location Description and benefits Image CSR Company's Profitability Products or Services Salary appeared to the most important criteria’s for choosing the future employer.9% 64. more than 68% of the respondents felt such a company would be more humane to its employees.Talent Acquisition and CSR Survey among students A survey was conducted to seek the opinion of students on CSR to analyze if CSR could be a differentiating factor for any student to apply to a company or accept a job opportunity. Benefits of Doing CSR for a Company 63. It was followed by the learning and development opportunities that the company. Surprisingly only about 26% of the respondents felt that company’s support of the community and environment causes.8% 12.2% Satisfying growing Investor Pres. increased ability to attract and retain talent and increased sales and customer loyalty were the other reasons for companies to engage in CSR.7% 26. Students also felt that increasing accountability.2% 37. 40% of the students also felt that companies invest in CSR activities because of the larger good of the society. sales and Cust.2% 19.6% 13.6% 25. ©Collage Article13 27 Improved Fin Performance Reduced Op Costs Doing Good Corporate Reputation .8% 20. just ahead of the Job Description. Loyalty Inc.9% 39.6% 11.8% 57. Asked whether they would prefer joining a high-ranked CSR company.1% 30. Satisfying Stakeholders Management of Risk Inc.4% 8. the overriding motive for companies to invest in CSR is to satisfy their stakeholders. Infosys and Wipro also figured high in the responsibility ranking.7% 56.7%) and environment (56. According to them.3% 11.7% 16. Top Issues for India Inc. all agreed that with CSR was going to play a more important role over time.7% 25.5% 40. education (57. Survey among HR Consultants Although there was no clear consensus among the HR consultants as to whether CSR acted as a attraction policy for employees. ITC’s e-choupal and HLL’s Project Shakti programs had the highest top of the mind recollection.1% Airtel Wipro Infosys Hero Honda Bajaj Dabur Godrej HLL ITC Tata's BSNL ITC and HLL are perceived to be the most responsible companies among the group. with a sizeable percentage of respondents being able to recall the name of the program.2% 10. ©Collage Article13 28 . to Consider 67.7%).5% 11.2% 4.0% 24.2% 32. Though Godrej.0% 57.3% 8. there is very low awareness among the students about their activities.Responsible Companies in India 49.8% Education Environment Health Community Majority of the students feel that Indian companies should invest in community (67%).3% 6. Hero Honda and Airtel have several CSR initiatives. the Tata Group is considered to be the champion of CSR programs and its strategic execution. ONGC and IOC are considered the key players which have an organized CSR program and strategy. Hence. DLF. only one company was analyzed as no other company had any sizeable initiatives. Bajaj • FMCG: Dabur. its various processes. and publications to study their CSR activities. • The information presented in this report is based on our search and may not be exhaustive. The companies analyzed across various domains are: • Tata and BP • Information Technology: Wipro. • This was followed by comparing these leading companies across sectors with the benchmark of the Tata group of companies and with BP (in the International arena). • We made case studies to detail their CSR activities and initiatives and benchmarked them against the leaders in CSR the Tata’s (within India) and BP internationally. BP is known to champion various CSR causes. business newspapers. • A detailed search was conducted in business journals. and proprietary databases like Nexis. • The financials outlay. Godrej • Rural Marketing: Hindustan Unilever. Wipro. Bajaj Dabur. the organizational support the programs receive along with the award and metrices. financial outlay for CSR programs. Hero Honda. comparison of companies on the basis of financial outlay has not been done. HLL. CSR strategy and identify metrics used by them (if any). Infosys. Internationally. • In the real estate sector. Airtel. • The documentation of CSR programs of various companies was very sketchy. ITC • Telecom: Airtel. Analyst Commentary: • The information for the case studies has been collated from the company websites. the annual reports. IOC Key Players and the CSR Champion • In the Indian context. BSNL • Real Estate: DLF • Oil and Gas: ONGC. • Two-wheelers: Hero Honda.Methodology and Analyst Commentary Methodology: • The objective of the study was to find out the CSR practices followed by big players of the Indian industry. regarding CSR initiatives of various companies were not available. Infosys. market research sites. Factiva and HighBeam. organizational support and metrics & evaluations. the strategy. • An initial search was conducted within the public domain to obtain information about the CSR best practices through case studies of large corporations. Godrej. Key CSR Themes in India • Community upliftment • Education • Environment • Health CSR Measurement Metrics/Benchmarks The key responsibilities or dimensions of CSR are towards the three primary stakeholders: • Customers • Employees • Business partners ©Collage Article13 29 . • The case study tries to capture the vision of company regarding CSR. • Other Indian companies such as ITC. The Tata Group has been recognized by its endeavor to institutionalize CSR in its 96 companies and integrate CSR with its business processes. rural development. is a leader in the CSR scene. Vision/Mission and the Philosophy Regarding CSR: Purpose “Our purpose is to improve the quality of life of the communities we serve. a model for measuring the social work that the group enterprises undertake. The main companies in the group. There are several projects. • Define a corporate environment policy and communicate it to all employees • Set up environmental management systems and programs at the organizational level and annually budget for environmental improvement. the Tata Group is a benchmark for Indian companies. Process CSR Strategy: Community Initiatives Each Tata company has its own priorities in social development. health. in different areas such as education. • Train its workforce on environmental issues and assign management representatives and facilitators to the task of monitoring environmental systems • Regularly scrutinize resource consumption and the quality of air. such as education. it has developed tools such as the Tata Index for Sustainable Human Development. such as Tata Steel. ©Collage Article13 30 . income generation. With investments as high as Rs 380 crore.” Values The five Tata values are: • Integrity • Understanding • Excellence • Unity • Responsibility Commitment Tata’s Commitment: • Community initiatives • Environment • Employee relations • Corporate governance Major CSR Themes: Tata Group’s CSR investments include all major themes. arts and others. sports. With a strong commitment from its top management. environment. one of India's oldest. Environment The group's contribution falls into two categories: • Efforts of Tata companies to preserve and enrich the environment • Philanthropic endeavor of the Tata Trusts. have in-house organizations dedicated to Community Initiatives. women-children welfare.Appendix to Research: Case Studies Tata Group Principles CSR Overview: Tata Group. Tata Tea and Tata Chemicals. water and land. health. arts and employee relations. The Tata approach to environmental management operates makes it mandatory for Group companies to: • Have a vision and mission statement that explicitly states its policy on environmental management. These two categories accommodate and nurture a variety of initiatives in a range that extends from watershed programs and land regeneration to forestry projects and protection of endangered species. rural development. to which the Group brings a unique set of capabilities. We do this through leadership in sectors of national economic significance. sports. which support non-governmental organizations. largest and most respected business conglomerates. the Tatas had the vision of preserving the country's performing arts. Tata funds five Indian ‘Temples of Knowledge’: • The Indian Institute of Science • The Tata Institute of Fundamental Research • The Tata Institute of Social Sciences • The Tata Memorial Centre • The JRD Tata Ecotechnology Centre Sports The Tata Group has been supporting sports by creating academies in different disciplines and by backing talented sportspeople. It first sponsored prizes and scholarships for art in 1943. welfare departments. set up in Jamshedpur in 1987. The Jamshedpur School of Arts has groomed local talent. Bombay. headed by Bachendri Pal. established in Jamshedpur in 1996. Tata Chemicals Society for Rural Development Tata Chemicals set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social objectives for the communities in and around Mithapur and Babrala. The Tribal Culture Centre (TCC). The eight-hour working day. Besides promoting contemporary Indian art. Set quantitative objectives and targets for continuous improvement (preferably beyond legal compliance) Review environmental performance at different levels in the management hierarchy Establish a convention for conducting impact-assessment surveys and periodic audits Publish annual environmental performance in annual reports Encourage applications and attainment of eco-labels and accreditations such as ISO 14000/01 to be followed by lifecycle assessments and eco-labeling for product stewardship throughout the supply Employee relations The Tata Group has more than 245. traditionally handed down through the gurukul system. accident compensation. Tatas were the pioneers in employee benefits that were later mandated through legislation in India and elsewhere in the world. selects boys (14 years and below) and trains them for a four-year period in world-class facilities. Indian folk and classical dance forms. maternity benefits. has produced a long list of archers who have won national and international honors. the first Indian woman to climb Mount Everest.• • • • • This is chain. river rafting and parasailing on its alternate sports agenda. where its facilities are located. The company's 'Art In Industry' series has since then featured renounced Indian and international artists. grievance cells. received a fillip when J J Bhabha. • The Tata Adventure Foundation.000 employees. CSR Programs: Community initiatives “Temples of Knowledge” Under the Group’s program to develop centers of learning and research. training institutes. music and theatre. leave with pay. provident fund. Some of the initiatives of TCSRD are: Agricultural development Education Women's programs Animal husbandry Rural energy Training Watershed development Relief work ©Collage Article13 31 . Some initiatives of the Group are: • The Tata Football Academy. Arts Tata’s initiative towards Arts is best reflected by Tata Steel. at the annual exhibition at the JJ School of Art. taking care of all their needs. • The Tata Archery Academy. has rock climbing. tribal and rural crafts. is a showcase for the artistic talents of the tribal communities of Jharkhand. a Tata stalwart along with others established the pushed and persevered for long years to establish the National Centre for the Performing Arts (NCPA) in 1966. founded by Tata Steel in 1990 at a cost of Rs 35 lakh. knowledge and intellectual capital. bonus and gratuity were introduced by the group before any legal rules were framed on them. free medical aid. The Tata Group has also supported the cause of folk. and offers career and vocational guidance. Through ACTS. helps the needy with assistance in health and education. Maharashtra Tree plantations in and around its factories and at RRC. the largest red-light area in Mumbai. Of this. VOW has supported a number of deserving organizations. The company generates roughly 700 kg of various wastes (excluding fly ash) in the process of producing one ton of crude steel. Providing audio-visual equipment to assist the mentally challenged at the Dilkush School at Juhu in suburban Mumbai. TSRDS covered 32 villages around Jamshedpur in its first year of operation. Establishing fully-equipped speech and physiotherapy units at SPJ Sadhana School for the handicapped. in the 800 acres complex. Rallilove ACTS Rallilove ACTS (Assisting Communities Through Service). health and hygiene. through sustainable community development programs. six of them in Tata Steel's operational areas. 83. and covers 600 villages in the states of Jharkhand and Orissa.000 trees including 78 exotic species and 110 indigenous species. Today the Society has seven units. Mumbai Educational support for 285 underprivileged students in Lote. Tata’s “Mini Jungle” Tata Motors created a “mini-jungle” in the surroundings areas of the Telco complex in Pune. The organization. Environment Waste Management Tata Steel has laid great emphasis. Employee Relations Learning The Tata Group’s programs include Tata Management Training Centre (TMTC). whose membership is restricted to female employees of Voltas and the wives of male employees. Recently. Its contributions include: Setting up a ward for female leprosy patients at the Vimala Dermatological Centre in Mumbai. on creating a green environment in and around its plants and on utilizing the waste generated in the process of manufacturing steel. Mumbai. seeks to improve the quality of life of the poor. Rallis has been involved in the following community development initiatives: Contribution to the Akanksha Foundation. which provides training to high performers within the Group and the Tata Administrative Service (TAS). Setting up a medical care unit at Asha Sadan. the Tata Steel Rural Development Society (TSRDS) is involved in social development programs aimed at helping the rural communities living around Tata Steel's units. TSRDS is most actively involved in the spheres of livelihood generation. Sophia College.Infrastructure Tata Steel Rural Development Society Established in 1979. TSRDS has expanded its agenda and identified the advancement of education.16% is utilized either through recycling and reuse in the company's own processes or is sold as raw material to other industries. over the years. Bangalore Dental and eye check-up camps at various factories Health awareness programs for Adivasis and other communities in Turbhe. The rest is sent for safe land filling. and people empowerment. especially women and children. and the company is confident that its 'war on waste' will have far-reaching effects. Voltas for Women Voltas for Women (VOW) was founded in 1965 and registered in 1975. which recruits fresh graduates and ©Collage Article13 32 . Mumbai Girl Child Project of Rallis Committed Community Development Trust (CCDT). Maharashtra Rallis CCDT Ankur Girl Child Project aims to create opportunities for a healthy and safe environment for girls living on the streets near Kamapthipura. sports and self-reliance as tools to ensure a better quality of life for the people it works with. a home for destitute women and children run by the Maharashtra State Council of Women. A number of companies today look to Tata Steel for guidelines on efficient waste management. an organization set up by Rallis. The last previous biodiversity survey recorded the existence of more than 150. It coordinates the varied and widespread community development activities of Tata companies. The organization is headed by Kishor Chaukar. a member of the Tata Group Corporate Centre. and 43 chief executive officers of Tata companies are its other members. is the Vice President – Group. environmental management. Mithapur. Babrala and Mathigiri – around industrial facilities. healthcare and sanitation.06 (Rs crore) 212 141 27 380 Tata Group investment on CSR in 2005-06 corresponded to 4% of Profit After Tax (PAT). Organizational Support: Tata Council for Community Initiatives The Tata Council for Community Initiatives (TCCI) is a centrally administered agency that helps Tata companies through specific processes. water and electricity supply. which is unparalleled in the country. streetlights. The Tata Group has also created high-value leadership development programs in partnership with some of the best universities in the world. Outcomes ©Collage Article13 33 . TCCI's charter embraces social development. Nadkarni.postgraduates from leading business schools to put them on the business leadership path. Considering the good standard of the maintenance facilities. Personnel Support: Anant G. to share its knowledge and expertise. Financial Outlay: Projects Social Welfare Environmental Others Total 2005 . Tata townships Tata has created cities and towns – Jamshedpur. The Group encourages cross-functional exposure and cross-company mobility as an aspect of leadership development. Tata Steel has floated Jusco as a separate entity. Tata Steel maintains Jamshedpur's public utilities such as the local municipality and takes care of road maintenance. Corporate Social Responsibility. biodiversity restoration and employee volunteering. Awards: Some of the Awards won by Tata companies: • In March 2007, Tata Steel was conferred the Award for Corporate Social Responsibility in Public Health by the US–India Business Council (USIBC), Population Services International (PSI) and the Center for Strategic and International Studies (CSIS). Tata Steel was selected for its contribution in the fight against HIV/AIDS. • In February 2007, Tata Consultancy Services won the Golden Peacock Global Award for Corporate Social Responsibility (Asia) – 2007 in the 'Large Business' category. • In February 2007, Tata Motors was conferred with the Golden Peacock Global Award for Corporate Social Responsibility by the Institute of Directors. This award was based on assessment of the company’s integration of CSR concerns with corporate functioning, responsiveness to the needs of different stakeholders, and development of innovative partnership models to fulfill social responsibilities • The Tata Group was awarded the Civil Society Award 2006 by UNAIDS for its role in fighting HIV in India. Several Tata Group companies provide support for HIV prevention, treatment and care services across the country. • The governor of Tamil Nadu, Surjit Singh Barnala, presented The Mother Teresa Award for Corporate Citizen 2005 to Tata Steel. • Tata Steel was adjudged one of the top energy-efficient units in India and was awarded a shield and a certificate for being the 'Excellent Energy Efficient Unit - 2003' by the CII-Sohrabji Godrej Green Business Centre, Hyderabad. • Software and service consultancy firm Tata Consultancy Services received the ‘2003 Asian Corporate Social Responsibility Award’ for support and improvement in education category. The company had designed a computer-based functional literacy model, a multimedia-based teaching method, and has set up an adult literacy program to help the government eradicate illiteracy. • Tata Steel received the GBC HIV/AIDS award — 2003 for its commendable awareness work on HIV/AIDS in the community. • Tata Engineering has bagged the Corporate Social Responsibility Award for 2001-2002 instituted by the Tata Energy Research Institute (TERI). Tata Engineering won the award for creating health and rural upliftment opportunities in and around its Pune plant and for its leprosy project in Jamshedpur. • In April 2001, Tata Engineering’s Pune plant won the Dr. R. J. Rathi Award 2001 for Environmental Pollution Control in Industries in Maharashtra. Metrics and its Evaluation: • Environmental Management, Occupational Health and Safety Assessment System Most of Tata’s companies have been awarded the ISO 14001 for their Environmental Management System and OHSAS 18001 for Occupational Health and Safety Assessment System. • Tata Index for Sustainable Human Development TCCI, in collaboration with the United Nations Development Program (India), created the Tata Index for Sustainable Human Development. This was aimed at directing, measuring and enhancing the community work that group enterprises undertake. TCCI is also involved in assisting Tata companies address the sustainability subject through the Global Reporting Initiative, a United Nations initiative that has guidelines for companies on social responsibility. The Tata Index for Sustainable Human Development is a set of guidelines for Tata companies looking to fulfill their social responsibilities. It has been built around the Tata Business Excellence Model (TBEM), an open-ended framework that drives business excellence in Tata companies. Scoring scale The Index prescribes an 'assurance' process to ensure that the community development projects are measured and reviewed so that they perform in a manner that matches the objectives behind them. This assurance links processes to outcomes and divides the entire corporate social responsibility function into three levels: systems, people and programs. This is the distribution of points across the Tata Index for Corporate Social Responsibility, with a balance between process (P) and outcome (O). The connection between process and outcome is vital. Process refers to how the requirements of a particular parameter are addressed. The factors used to evaluate this include use of appropriateness of methods, their effectiveness, and whether they can be repeated. Another aspect of the process equation is deployment. Outcome signifies the specific results of the process (the cause-and-effect methodology). It ©Collage Article13 34 is measured through criteria such as current performance, which is relative to valid benchmarks, and the extent of improvement. The three levels have 17 sub-levels, with 46 parameters under them. The systems level-gauges factors affecting the management of the corporate social responsibility challenge: leadership commitment, structure and deployment, strategy, review, etc. This level offers 275 of a total of 1,000 points. The people level measures parameters such as selection of personnel, training and volunteering. It adds up to 175 points. The program level, the most important of the three, as reflected in a total score of 550 points, deals with the impact on the ground. The factors range from social concerns and scope for self-reliance and sustenance to knowledge transfer and good governance. Assurance levels Level I – Systems level Level II – People level Level III – Programs level Total Points Total Score 275 175 550 1000 Break-up (process + outcome) 150 + 125 100 + 75 300 + 250 550 + 450 ©Collage Article13 35 British Petroleum Principles CSR Overview: As a responsible business, the company strongly believes in taking steps to improve the controllable things such as climate change and in influencing and contributing towards social and economical development. Vision/Mission and the Philosophy Regarding CSR: The group aims to carry on its business in an environmentally responsible manner, and develop cleaner energy and renewable energy sources. Commitment to responsibly treat the planet’s resources and to develop sources of lower-carbon energy is an integral part of its philosophy of doing business. Its group values include people, health and safety and environment. Major CSR Themes: Environment and society is the company’s CSR theme, which overrides its activities - Responsible operations, BP and climate change, BP and development. Process CSR Programs: Responsible Operations: Risk Management: The BP management framework contains devices and risk management tools that support delivery and decisionmaking such as environmental impact assessment. The company expects its employees to comply with group standards as they would with external laws or regulations. Dialogue and engagement: The company engages itself in dialogue with a wide variety of groups to create strong and lasting relationships with them. Employees maintain a dialogue with key groups, such as national NGOs, in different ways and make recommendations for the company on the social and environmental impacts. Health, safety and security: It gives prime importance to the safety of its employees and contractors along with the integrity and security of the plants and equipment. Several measures taken by the company to ensure a safe and healthy working environment are: • Safety systems and structures: A new organizational structure has been designed to deliver better safety performance. The team has chalked out plans for measures in three areas: plant, people and processes. Plant – BP has been carrying out a program of major accident risk assessments (MAR) for their main plants and equipment. A prioritized investment plan will be developed to address the recommendations of the MAR assessments and provide a framework that is designed to mitigate risk continuously. People – BP aims to improve the safety and operational culture, setting new standards for expected behaviors in the workplace and putting in place measures to ensure people have clear accountabilities and are fully competent to do their job. This program of work is being integrated within their overall operating management system. Processes – The Company has designed a new Operating Management System to provide a more rigorous approach to compliance and risk management, including a new formal audit process. It aims to implement the new OMS and audit process fully by 2010. BP is introducing a control of work standard to be fully implemented by the end of 2009. The first part of the standard on driving safety was introduced for employees in 2004 and is hoped to be fully implemented, covering contractors as well as employees, by the end of 2007. A marine operations standard is also being developed. • Product safety: BP assesses its products to identify any health, safety or environmental hazards. It employs highly qualified, health, safety and environmental specialists to provide its business units and customers with expert advice on the products. • Driving safety: As a concern for road safety, BP’s driving safety standard has set out 10 clear rules which are designed to encourage safer driving, safer journeys, and the use of safer vehicles. • Integrity Management: BP took a new action in 2005 to improve operational integrity and safety behaviors within its sites. It has developed a new Integrity Management (IM) group standard which brings together and improves all of its relevant existing processes. The IM standard is to be fully implemented by end of 2008. ©Collage Article13 36 a high risk area. assisting in relief efforts and care for evacuees. Community Relations: BP has developed relations with local communities in over 100 countries through partnerships with local organizations. The document 'Getting HSE Right’ provides a clear framework for achievement of consistent HSE performance at a local level. the International Federation of Red Cross and Red Crescent Societies and the President’s Relief Fund in the aftermath of the earthquake in northern Pakistan. no harm to people and no damage to the environment. The Company’s recently-funded projects include: • South East Asia Tsunami: BP committed a total of £5. mosquito control and bite prevention and early access to diagnosis and treatment. monitors the situation and establishes contingency plans if the risks associated with avian flu are to escalate. Its purpose is to ensure that all employees of the company are informed of the effects on their health. HIV/AIDS prevention at the workplace – The Company has developed global operating guidelines on HIV/AIDS. Managing stress – The Company is developing a multi-faceted approach to reduce the negative impact of stress. HSE management systems: BP has put Health. which are available on BP's internal website. The Company provides community funding as humanitarian aid and funding for disaster relief in various locations around the world. BP also donates towards relief efforts when disasters occur.• • • Occupational Health: In 2005. particularly for the Angola business unit. local government. Of this. primarily on work-related issues. • Earthquake in Northern Pakistan: BP contributed $1. and community based organizations. led by a group executive officer.5 million to relief efforts following the devastation caused by Hurricanes Katrina and Rita in the US. Security and Environment Review is a process developed to ensure that HSSE issues are addressed at every stage of the project lifecycle. The following processes also cover environmental. • Hurricanes Katrina and Rita: The Company committed $9. from planning through to delivery. lives and business from the HIV/AIDS pandemic. ESIA studies: Environmental and Social Impact Assessments studies are carried out to help BP and its stakeholders understand the potential impact of a proposed project on environment or society. the company also sets up Community Advisory Panels (CAPs) which engages with local communities to understand their needs and issues. bringing its health function into closer alignment with its businesses. Safety and Environmental (HSE) management systems and processes in place to ensure that there are no accidents. Public Health: BP works with local communities to promote health awareness and health programs in places where the local environment or social conditions may expose its employees to health risks. ©Collage Article13 37 . HIV/AIDS in local communities – In partnerships with NGOs. Travel health risks – BP is developing new web-based information and health assessment tools to support employees’ pre-travel preparation. $3 million was distributed as immediate aid and was split among the International Red Cross. as well as health and safety aspects of performance: PHSSER process: Project Health. BP was restructured. a major cause of global warming. the BP Alternative Energy was launched with plans to invest $8 billion over the next ten years to produce electricity from low carbon sources. Sometimes. BP and development: Humanitarian aid: Apart from planned community investment. around the globe. This includes awareness-generating activities. Oxfam and UNICEF.2 million to UNICEF. government and NGOs. Malaria and other infectious diseases – BP has developed a malaria management plan. Safety. Of this. Company’s public health programs are: Avian Flu – A team. BP and climate change: BP Alternative Energy: In 2005. Its primary effort is to prevent ill health and promote health improvements by identifying and minimizing both workplace and personal health risks. This keeps people informed and involves them in discussions about BP’s current activities and future plans. BP works for care and prevention of local communities from HIV/AIDS. $5 million was given to the American Red Cross and other charities throughout the Gulf Coast area. which allows them to understand better the impact of compliance programs at all levels. Measures in this direction are: HealthMap – This proprietary health risk assessment tool is used by BP to improve the way of identifying and managing workplace risks. Global Health and Hygiene System – BP uses this system to manage aggregate and individual health information. This will help reduce forecast greenhouse gas (GHG) emissions.3 million in response to the South East Asia tsunami. Colombia and Vietnam.5 million in grants and training for teachers to enhance energy education. BP Projects Academy. supporting education institutions in Papua. Trinidad & Tobago. ‘Black Economic Empowerment’ (BEE) strategy to promote business opportunities among the people of African origin. BP launched a micro-finance program in Angola and supported programs in Azerbaijan. primarily to fund research and stipends for students and academics. a centre for excellence that offers graduates and engineering professionals from the UAE. BP made a 10-year. Supporting the Abu Dhabi Petroleum Institute – BP. US. It provides funding for education projects that are relevant to the needs of different communities. • Promoting diversified economies: BP is promoting economic diversification by supporting local enterprises in several countries. Programs at China’s Tsinghua University to explore clean energy options and the implications of urbanization on transport Tangguh project. Education: Education has been a priority for BP. going local in Trinidad & Tobago.75 million program designed to raise the levels of attainment among various communities. BP employees work with local schools to lead class discussions on energy and environmental topics. $8 million project at Imperial College. • Supporting regional development (Micro-finance programs): During 2005. run with the Massachusetts Institute of Technology. to provide education and training to emerging leaders in the field of conservation and ©Collage Article13 38 . to research the use of energy in cities. $10 million investment – BP will invest up to $10 million in Russia over the next four years. Georgia. Indonesia since 2002. BP supports an annual series of conferences focusing on the Chinese and Russian economies. US. These provide modest loans to individuals. US to produce the Emmy winning Los Niños En Su Casa (A place of our own). Georgia. an educational television series for pre-school children. groups and micro-enterprises to expand business activities. The school will promote excellence in postgraduate economic study and research across the region. BP launched the Los Angeles Multicultural Educational Collaborative. Adult education – BP Trinidad & Tobago has established an education and community centre to serve the community of Mayaro. Texas. $16-million commitment to the BP Energy and Environmental Program. also providing job opportunities for local distributors in countries such as South Africa. Schools Link Program – Under this program. The key activities of the Company include: • Encouraging local suppliers: supporting local enterprise in Azerbaijan. BP launched this signature program in California. London. • Education and development Pre-school and basic education – In 2005. Inclusion in the education system – In 2005.Enterprise Development: This is one of the key social priorities of BP as it enables them to directly influence the livelihood of many people. It is also investigating ways of marketing products for low-income customers. along with Shell. Total and the Japan Development Company. the chance to develop their skills. Following are the significant initiatives taken by BP in 2005: $2 million towards the establishment of the Caucasus School of Economics in Tbilisi. helping managers attain world-class project management skills. which was expanded to Houston. University education – BP continues an extensive program of university support throughout the world. Financed faculty positions in Alaskan native languages and educational technology faculty at the University of Alaska. supports the Abu Dhabi Petroleum Institute. a four year $3. to achieve its objective of embedding environmental education in China's national school curriculum. The centre also houses a BP-backed program to support local businesses. This comprises: • Energy and environmental education Environmental Educators' Initiative (EEI) – BP launched this initiative in China in partnership with the Chinese Ministry of Education and WWF. In June 2005. A program runs to promote corporate responsibility and transparent environmental reporting in Russia at Mendeleev Russian State University. In partnership with the New Economic School in Moscow. all across the UK. The program provided $2. BP worked with the Public Broadcasting network KCET in California. Cyzsty Biznes (clean business) program – BP Poland has helped fund this program to help small and medium businesses understand how energy efficiency can provide them with environmental and economic benefits. ‘A+ for Energy’ program – In 2005. • Right to development – In line with the UN Declaration on the Right to Development. it was given to BP for demonstrating exemplary leadership in addressing climate change. as quickly as possible. ©Collage Article13 39 . • BP spent $2914 million towards environmental expenses in 2005. The plan includes guidelines for notification. and interact with public security forces. In 2004. BP is running a program for the upliftment of people below poverty line through easy access to energy. social inclusion and ethical debate. is for strategic business initiatives that result in the recruitment. External scrutiny promotes learning and provides assurance. for education and interactive multimedia publishing. it took initiatives to address the threat of HIV/AIDS. have commissioned monitoring of their compliance with the Voluntary Principles on Security and Human Rights by the corporate social responsibility practice of the law firm Foley Hoag. and reporting and examples of such situations. based on ILO convention C138. Human Rights: BP supports the Universal Declaration of Human Rights (UDHR) and follows the UDHR’s statement that “every organ of society” shall strive to promote respect for the rights and freedom outlined. • Climate Action Champion Award in 2006: Instituted by the California Climate Action Registry. and advancement of women in the workplace. development. sustainable development. then for an investigation if the incident appears to be genuine and of high severity. Environmental Expenses Category Operating expenditure Capital expenditure Clean-ups New provisions for environmental $ Million 494 789 43 565 remediation New provisions for decommissioning 1023 Outcomes Awards: The BP Group has won awards such as: • Catalyst Award for Advancing Women in the Workplace in 2006: The award. NGOs and international aid agencies. BP made a commitment to spend around $500 million towards community investment in each five-year cycle. • Clarion Awards for 2006 in the Education Category: This award recognizes best practice in communicating the importance of CSR. So it helps reduce and ultimately eliminate all forms of forced. and South Caucasus Pipeline Co. instituted by Catalyst. • Child labour – BP recognizes that some areas of its business may face the problem of exploitation of children. the credibility of the case. BP won two bronze International Visual Communications Association (IVCA) Clarion awards for its resource.5 million and the company invested nearly $50 million on education. Living With Traffic.development. which states that no BP business shall use forced or child labor. rejecting unlawful and unfair discrimination. BP’s education investment doubled since 2002 and the company continues to invest around 50% of its annual commitment on education. the private sector. compulsory and child labour by framing its ethical conduct policy. Throughout 2005. working in good faith with trade unions and other representative bodies. accountability. BP has framed its code of conduct to protect and promote the human rights of its employees by creating a work environment of mutual trust. engage private security providers. • Conflict and security – BP safeguard human rights in its security arrangements by applying the Voluntary Principles on Security & Human Rights (VPs). BP community investment touched $95. Financial Outlay: • In 2005. BP has implemented Azerbaijan Onshore Operations Performance Unit’s Human Rights Response Plan which outlines a process for internal due diligence to establish. It helps improve access to energy through partnerships with host governments. Baku Tiblisi Ceyhan Co. malaria and other diseases to its employees and to the communities in which BP operates. • The right to health – BP believes in promoting and upholding the right to health. and not engaging in bribery or corruption in any form. The VPs include guidelines which BP uses to undertake risk assessments. in 2005. which provides the basis for the development of local/site/facility HSSE management systems. Metrics and its Evaluation: BP evaluation on Environment. set direction for HSSE activities. forecast and allocate resources. BP developed a HSSE management system framework. and energy production and consumption distributed more efficiently and ethically. It helps line managers focus on critical HSSE needs. • To help achieve its Health Safety Security Environment (HSSE) goals. environmental degradation curtailed. energy technology advanced. World’s No. Health and Safety initiatives: • All major sites of BP achieved ISO 140001 international standard on environmental management. safety and environmental risk management including personal security and product stewardship. and consistently deliver improved HSSE performance. Malaysia's Human Resource Development Board Award 2004: This award is given in the manufacturing sector for small/medium sized company category to BPPA. process safety and distribution. at the end of 2004. BP PETRONAS Acetyls (BPPA) won the platinum award for community awareness. energy systems developed. precious energy resources utilized. The ranking was based on reduction of greenhouse gases. Two awards at the Prestigious Prince Michael International Road Safety Awards in December 2005. Frank Lees Medal in 2003: The award is instituted by Safety and Loss Prevention Subject Group. ©Collage Article13 40 . by independent auditors. Responsible Care Awards in 2004: Instituted by Chemical Industries Council of Malaysia’s (CICM). 2 "Top Green Companies" in 2005: The award is instituted by BusinessWeek. trading risks mitigated. emergency response. Institution of Chemical Engineers (IChemE) for the most meritorious publication on the topic of safety and loss prevention in an IChemE publication.• • • • • • "Energy Company of the Year" and “Gold Award” winner in the Renewable Energy category in 2005 Energy Business Awards: These awards are given for excellence in the way energy business is conducted. getting HSSE right (gHSSEr). It encompasses the complete spectrum of health. Bharti Airtel’s major CSR themes are Education and Environment.” Through the foundation. which have provided computer learning to more than 130. However.” Sunil Bharti Mittal – Chairman and Managing Director. including employees. It will also provide teacher’s training facilities. Major CSR Themes The company invests in several CSR initiatives. For the coming years.” Airtel has been looking after the needs and interest of its stakeholders. Health • HIV: Red Ribbon Caravan: The company supported the Rajasthan State AIDS Control Society in a campaign to create awareness about HIV/AIDS. contact five customers every month to obtain feedbacks. including senior managers. “Corporate Social Responsibility is a way of life at Bharti. health.Airtel (Telecom) Principles CSR Overview According to the company. • Donations: Airtel donated item such as woolens to Kalakar School. the foundation has plans to start a large number of primary schools in rural areas across the country. This is a joint initiative by the Bharti Foundation and the Confederation of Indian Industry (CII). consumers. aimed to encourage reading habits of children. Providing a platform to leverage the potential of the citizens of tomorrow and concern for the environment are our top priorities.000 children per day in 292 government schools. from consumer privacy policy to the promotion of entrepreneurship. along with the environment. Environment: • 5. Quoted from the 2005-06 annual report. and the Mid-day Meal Program. where employees. which retrains the sending of promotional messages and the Consumer Contact Program. This system saves cost and reduces pollution. which contribute to decrease environmental disturbance. in which Bharti Foundation has supported Akshaya Para in providing meals to 43. Process CSR Programs Community • Customer: Airtel has been implementing consumer-focused programs. Vision/Mission and the Philosophy regarding CSR “Airtel is strongly committed to being a responsible corporate citizen. the Bharti Library Program. several initiatives were started such as the Bharti Computer Centers.000 children in five states. micro-finance and enterprise. It seeks to recognize women who have excelled in the fields of primary education and literacy. A caravan of five vans traveled in 32 districts of Rajasthan. medicines. ©Collage Article13 41 . Financial Outlay Bharti Airtel has committed Rs 200 crore to support CSR initiatives over the 2006-08 period. and clothes to the Missionaries of Charity Home for Destitute. • Employees: It has launched the ‘Empower Program. Education: • Bharti Airtel founded the Bharti Foundation in 2000. stationery. with the vision: “To help underprivileged children and young people of our country realize their potential. Airtel also shares 25% of its mobile cell sites. and communities.000 sites are using a green-shelter system that provides cooling for four hours in the Base Transceiver Station. Internally. • Human Rights: Airtel launched the CII-Bharti Woman Exemplar Award in 2005 to promote women’s empowerment at the grassroots. and water bottles to Kashmir’s earthquake-affected area in October 2005. such as the Consumer Privacy Policy. the company has implemented a wastage reducing campaign to decrease paper consumption.’ an initiative to help employees and their families deal with stress. Centre for Corporate Governance (CFCG). and the World Council for Corporate Governance (WCFCG). Personnel Support Tina Uneken (Corporate Director – Alliances & CSR) Uneken has 28 years of work experience during. Outcomes Awards Bharti Airtel has won awards such as: • India’s Most Customer Responsive Telecom Company Award in 2006 for the second consecutive year. customer service. this study identifies ‘Best Employers' based on employee opinion. UK. The award was instituted by Avaya Global Connect Ltd. and project implementation. the organization's employment and people practices. This award was instituted by the Centre for Social Responsibility supported by Institute of Directors (IOD). logistics. which she has held operational and management positions in sales. She also has extensive experience in the areas of M&A and alliance management. ©Collage Article13 42 . marketing. Sunil Bharti Mittal.Organizational Support CSR at Bharti Airtel is the responsibility of the Corporate Director Alliance & CSR. • The Golden Peacock Award for Corporate Social Responsibility for 2006 in the NGO category. and the perspective of its senior leadership. The corporate director is under the Chairman and Managing Director (CMD). • India's 'second best employer' in 2004: Conducted by Hewitt Associates globally. secondary and higher secondary schools and public healthcare centers by end of 2007. BSNL is the only telecommunication service provider offering rural telephony as part of its social responsibility. With government support to provide broadband to all gram panchayats. Kerala and the Andaman and Nicobar Islands . Bharat Sanchar Sarathy and Sanchar Seva Padak Awards to employees for their meritorious service in the field of telecommunications Corporate Group Life Insurance Policy: This is intended to cover nearly 350. including the rural areas and also encourage development of telecommunication facilities in remote. 2. BSNL is offering concessional tariff for rural subscribers by providing lower rental and higher free calls as compared to urban area subscribers.Bharat Sanchar Nigam Limited (Telecom) Principles CSR Overview: The Bharat Sanchar Nigam Limited (BSNL) is committed to provide quality telecom services at affordable price to the citizens of the remotest part of India. which provides cover against natural death. Vision/Mission and the Philosophy regarding CSR: BSNL aims to provide universal service to all uncovered areas.000 employees. since it is of utmost importance for achievement of the country's social and economic goals. according to the company. The company has implemented projects in three key areas: Employee’s Welfare Activities.207 lakhs to the Prime Minister’s Relief Fund.within a short time. a double accident benefit besides retirement benefits. BSNL plans to provide broadband to 20. is the only service provider offering rural telephony as part of its social responsibility. Process CSR Programs at BSNL: Community • Employee’s Welfare Activities: Commitment towards the principles of corporate social responsibilities is inbuilt within the corporate philosophy of BSNL. A wide range of welfare programs focus on the employees’ welfare and are continuously implemented by the Staff Welfare Board of the Company. in a time-bound manner. The policy includes life insurance component. the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players. BSNL. BSNL has been selected in the category of government sector out of 23 PSUs and government undertakings. the company helped restore the communication networks in the worst-hit areas of Tamil Nadu.000 villages that are already connected through optical fibre. BSNL and its employees contributed Rs. ©Collage Article13 43 . Assistance during natural calamities and Rural Broadband Plan. • Rural Broadband Plan: Bharat Sanchar Nigam Limited does not have any direct subsidy schemes / programmes for public. However. BSNL also restored telephone services in record time in the flood-hit areas of Gujarat and Maharashtra. • Assistance during natural calamities: Following the Tsunami in the Indian coastal areas. Major CSR Themes: To transform. Outcomes Awards: • Golden Peacock National Award 2005: BSNL has won the ‘Golden Peacock National Award 2005’ for its contribution to the field of CSR. hilly and tribal areas of the country. Availability of affordable and effective communications for the citizens is at the core of the CSR vision at BSNL. in connecting the remotest regions of India and adhering to best labor practices. hygiene and sanitation. Kamalnayan Bajaj Hospital • The company operates a multi-specialty hospital in Aurangabad. Bajaj Auto is committed to nation-building and contributing to the uplift and development of the weaker sections of society. watershed development. Jankidevi Bajaj. education. which strives to improve the quality of life of the rural poor by creating self-employment opportunities at the grass-root level. drinking water schemes. These projects have a positive impact on the quality of rural living standards. gram panchayat (village council). animal husbandry. SSK involves local institutions and municipal bodies. through the use of appropriate technologies. Established in 1987 by Ramkrishna Bajaj in memory of his mother. health programs. in decision making. • According to the company. agricultural extension. • High-quality secondary and tertiary healthcare and specialist facilities are provided under one roof. Jamnalal and Kamalnayan Bajaj. • Implementation strategy: To ensure the involvement of its rural constituents. western Maharashtra. the Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). sports and recreation. healthcare. Process CSR Strategy: Community. environmental sanitation. local Rotary Clubs and NGOs in its activities. This. sanitation and education. this Trust acts as a catalyst to development at the grass root level in 32 villages around its plants in Pune and Aurangabad. Samaj Seva Kendra • Set up by Bajaj Auto in 1975. The Trust also secures the participation of local elected bodies eg. veterinary services. women’s and youth bodies. co-operative societies. The Trust is stepping up its projects encompassing agricultural extension services. lift irrigation. watershed development and women’s empowerment. ©Collage Article13 44 . income generation. JBGVS relies on a participatory approach in implementing all its projects. integrated development through long term projects in rural health. in harmony with nature.Bajaj (Automotive) Principles CSR Overview Bajaj Auto’s philanthropic activities among the rural poor are carried out by a trust. Health & Education: CSR Programs and policies Jankidevi Bajaj Gram Vikas Sanstha (JBGVS) • Vision Statement: JBGVS is a non-political and secular organization. • SSK has helped empower wives of factory workers by providing them earning opportunities. the company believes is the legacy of its founders. • Focus: The trust initiates sustainable. Major CSR Themes The philanthropic activities implemented by the company are aimed at the integrated development of villages through women empowerment. Through its poverty alleviation schemes. Vision/Mission and the Philosophy Regarding CSR • The Company affirms that its competitiveness is interlinked with the well-being of all sections of the Indian society. Company’s Key Policies • The Company believes that equal opportunity in employment for all sections of the society is a component of its growth and competitiveness. health and education. education and adult literacy. the Samaj Seva Kendra (SSK) undertakes social activities in the semi-urban areas on the outskirts of Pune.development. Local industrial workers are provided opportunities for self. the Trust provides micro-credit and income generation opportunities for the poor. improving agricultural and livestock yield. 2006. He is accountable to the Chairman. This became effective from December 1. It plans to have a partnership program with educational institution/s to support and aid students from socially disadvantaged sections of the society. In case of equal business offers. Its selection of business partners is not based on any considerations other than normal business parameters. ©Collage Article13 45 . No discrimination of any type is shown in this process. • Award for “Achieving Longest Accident-free Period’ under Heavy Engineering Industries Group. Bajaj received this award for three consecutive years (1997-1999) from the National Safety Council. 100 million ($2. Vice President (HR). was awarded ISO 14001 certification in 1997. Outcomes Awards: • Bajaj was awarded the Meritorious Performance in Industrial Safety Award from 19982001.• • • • • It recognizes that diversity to reflect socially disadvantages sections of the society in the workplace has a positive impact on business. 700 crore ($153 million). which is an integral part of the overall management system at Bajaj Auto’s Aurangabad plant. to oversee and promote the Affirmative Action policies and programs. • The Company will make available its learning and experiences as a good corporate citizen in Affirmative Action to other companies desiring to incorporate such policies in their own business. The Company is not biased against employing people from disadvantaged sections of the society. • The Company has nominated K Srinivas. Metrics and Evaluation • The Environmental management system.15 million) every year on philanthropic activities through various trusts and foundations holding an asset of Rs. Organizational and Personnel Support • Bajaj Auto Limited adopted the Code of Conduct for Affirmative Action. the Company will select a business partner belonging to a socially disadvantaged section of society. if the applicant possesses competitive skills and job credentials. The Company makes all efforts for upgrading the skills and continual training of all its employees to enhance their capabilities and competitive skills. Financial Outlay: The Bajaj Group spends Rs. The award was given by the National Safety Council. most women are now self-employed. • Marriages of Underprivileged Girls: Marriages are organized from time to time. Renovating primary school buildings and providing hygienic water and toilet facilities. Free healthcare and medical camps are a regular feature in the Hero Group's community outreach program.and socially-backward region in Dharuhera. covering the nearby villages of Malpura. by the foundation. The project is now in the process of imparting adult literacy capsules to another 100 adults by getting village heads and other prominent villagers to motivate illiterate adults. especially ones developed at the grassroots. and healthy community.Hero Honda (Automotive) Principles CSR Overview Hero Honda Motors takes considerable pride in its stakeholder relationships. to produce products and services that meet the quality. The company has adopted various villages located within the vicinity of the Hero Honda factory at Dharuhera for integrated rural development. educated. vocational training. social support for girls from backward classes. ©Collage Article13 46 . performance. • Adult Literacy Mission: This scheme was launched on September 21. • At the same time maintain the highest standards of ethics and social responsibilities. trained at this center. rural health care. Vision/Mission and the Philosophy regarding CSR • Strive for synergy between technology. Education • Raman Munjal Vidya Mandir: It has grown into a modern Senior Secondary. and human resources. the foundation also regularly provides doorstep healthcare services to the local community. Constructing metalled roads and connecting the villages to the National Highway (NH-8). Health • Rural Health Care Raman Munjal Memorial Hospital: Multi-specialty hospital equipped with the latest diagnostic and surgical technology. Major CSR Themes • Education. Ensuring a proper drainage system at each of these villages to prevent water logging. It provides financial help and other support to families. • Vocational Training Centre: The company has helped women. particularly for girls from backward classes. The company believes it has managed to bring an economically. to start a production unit for stitching uniforms for Hero Honda employees. Process CSR Strategy: Stakeholder Ties at the Grassroots CSR Programs and policies • An Integrated Rural Development Centre was established on 40 acres of land along the DelhiJaipur Highway. Kapriwas. Haryana. 1999. Promoting non-conventional sources of energy by providing a 50% subsidy on biogas plants. adult literacy. which includes: Installing deep bore hand pumps to provide clean drinking water. and price aspirations of its customers. and education facilities for both adults and children –nurtures a vibrant. Community • Raman Munjal Sports Complex: This comprises basketball & volleyball courts and hockey & football grounds. clean water. CBSE-affiliated co-educational school with over 1200 students and 61 teachers. systems. which are used by the local villagers. and Sidhrawali. Thus. into the national economic mainstream. • The centre – with wide roads. • Besides establishing a modern hospital. New Delhi. paints. UK. as an intrinsic element of its corporate philosophy. • 1999: Environment Management System of Dharuhera Plant was certified with ISO-14001 by DNV Holland • 2000: Environment Management System of Gurgaon Plant was certified with ISO-14001 by DNV Holland • Satyam Auto Components Limited from Hero Group of Companies acquired ISO 9002 certification from British Standards Institute. • Institutionalize resource conservation. water. ranked Hero Honda as No. Organizational and Personnel Support • Hero Honda is strongly committed not only to environmental conservation programs. health and safety initiatives: • The company was certified for its Environmental Management Systems according to ISO 14001. • Comply with all applicable environmental legislation and also control its environmental discharges through the principles of ‘as low as reasonably achievable’ (alara)." Quote from Chairperson Brijmohan Lall Munjal. in the areas of oil. but also expresses the increasingly inseparable balance between the economic concerns and environmental and social issues faced by a business. the company commits itself to: • Integrate environmental attributes and cleaner production in all its business processes and practices with specific consideration to substitution of hazardous chemicals. • Continue product innovations to improve environmental compatibility.1 for its environmental performance. electrical energy. where viable and strengthen the greening of supply chain. and chemicals. • Enhance environmental awareness of its employees and dealers/vendors. 1 in automobile industry by TNS Corporate Social Responsibility Award • 2001: Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre for Science & Environment • 1995: National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award – Presented by President of India) Metrics and Evaluation Hero Honda’s evaluation on environment. while promoting their involvement to ensure sound environmental management. for all automobile companies in India.Company’s Environment Policy Hero Honda is committed to demonstrate excellence in its environmental performance on an ongoing basis. The Green Rating conducted by the Centre for Science & Environment. "We must do something for the community from whose land we generate our wealth. for its commitment to Total Quality ©Collage Article13 47 . in particular. To achieve this. Outcomes Awards • 2006: Ranked No. Environment • The Soonabai Pirojsha Godrej Foundation has been maintaining the western bank of the Thane Creek. the greenery and mangroves are just one of them. Western and Japanese. The company annually celebrates "Sarvajanik Holi" which helps to curb the wanton destruction of trees. So far. ©Collage Article13 48 . a division of WWF-India. Process CSR Programs: Community o Employees: Godrej provides pre-primary. • The company has also been associated with TRAFFIC-India (Trade Record Analysis of Flora and Fauna in Commerce). wildlife and the environment. It is an active participant of The Indian Heritage Society which aims at preserving the architecture of India. environment and the health verticals besides looking after its own employees. Godrej has been a key player in aiding education. which is responsible for monitoring and studying legal and illegal trade in wildlife and its derivatives. Godrej also launched the Green Governance Project in 2003 for biodiversity conservation. 5. However. which will comprise a management institute covering management systems of various types and cultures." which is actively associated with preservation of nature.469 children have passed out from Udayachal. The Sohrabji Godrej Green Business Centre launched the Green Business Initiative in December 2005. Education Godrej established the Pirojsha Godrej Foundation in 1972 which later set up the Godrej Technical Institute at Bordi and the Pirojsha Godrej Research Laboratory. • Its Godrej Ganga Ecology Panel generates public awareness among the people living on the banks of River Ganga to preserve heritage monuments and also help to control pollution. Godrej is also setting up “The Centre for Excellence” at Pirojshanagar. Godrej’s major CSR themes are Environment and Health-Donations. which was aimed at facilitating the development of corporate greenhouse gas inventories and subsequent investments in greenhouse gas mitigation projects. including ancient and modern Indian.” Major CSR Themes: Godrej has been investing in several CSR initiatives varying from education for the poor to HIV/AIDS campaigns. which looks after the natural environment of numerous areas in Mumbai and in other cities. Udayachal Schools having both primary and high school branches were set up by the founder Pirojsha Godrej in 1955 with the aim of helping poor students lead a rich life. Vision/Mission and the Philosophy Regarding CSR: The company strongly believes that the green environment enhances productivity and quality which has been appreciated by all employees and visitors.Godrej (FMCG) Principles CSR Overview: “Corporate Social Responsibility in Godrej covers many aspects and areas. • The company has some groups like the Envirotech Group – for pollution-reduction and related matters. • Godrej is a member of the exclusive "1001: A Nature Trust. primary and secondary schooling to its employee’s children. the Encon Group – for energy conservation and the Garden Department. The company has a mission of “Enriching quality of life everyday everywhere. the single largest mangrove belt in Mumbai.” according the company. Mumbai for the cure of leprosy. Godrej and Boyce Manufacturing Company Limited were earlier the head of Confederation of Indian Industry (CII). wife of Chairman Adi Godrej. Mumbai was given the ISO 14001 certification.Health o HIV: Godrej funds the NAZ foundation which has evolved and implemented a holistic approach to fight HIV. health. immunization. th • WWF 25 Anniversary Benefactor “White Pelican” Award was received by S P Godrej for the company’s contribution to conservation of nature and natural resources. focusing on prevention as well as treatment. In the financial year (2005-2006). he was given the Padmashri Award in 2003. Ltd received this award on November 10. Financial Outlay: The company gives 30% of its profit to charitable pursuits through the Pirojsha Godrej Foundation. examinations. o The Godrej Memorial Trust. launched a three-year Heroes Project which seeks to develop coordinated campaigns to address the spread of HIV/AIDS and reduce stigma and discrimination by educating the public. Chairman and MD. Parmeshwar Godrej. Mumbai. For his accomplishments. Personnel Support: Jamshed Godrej. To fight AIDS. a voluntary organization devoted to promote family planning as a basic human right. He looks after all the CSR projects relating to environment. Metrics and its Evaluation: • The Awareness program for Godrej and Boyce. 2005 for conservation and restoration of habitat. counseling and family welfare. In 2004. Vikroli. established in 1994 runs a clinic in New Delhi which provides facilities for operations. education etc for the Godrej group. Godrej & Boyce has opened a clinic at its Godrej Memorial Hospital. Outcomes Awards: Godrej has won awards such as: • The BHNS Green Governance Award 2005: Godrej & Boyce Mfg Co. ©Collage Article13 49 . Godrej is connected with the Family Planning Foundation. The company also funds the “Family Welfare Programme" under which the "Well Baby Clinic" had treated 1135 children by 2006. the company spent an estimated Rs 70 crore on CSR related projects. o Donations: Godrej supports the Foundation for Medical Research. education. remedial. K. • Remedial Education: Provides coaching classes for school-going children who are weak in studies and no body in the family assists them. and the unemployed. food preservation. employment. eight of them endangered. who are either dropouts or had not been to the school. Dabur India Ltd established Sustainable Development Society (SUNDESH). to plant trees with medicinal properties and increasingly encourages participation. drawing inspiration from its founder Dr. and environment issues. It has started the ‘Plants for Life’ project in the mountainous regions of the Himalayas. efficacious. which is useful in day-today life. children. a registered voluntary organization. people’s empowerment. named Protect Life And Nature Team (PLANT). They are finally inked with the formal school. which would help in reducing the strain on natural habitat of these herbs. Dabur works towards developing sustainable cultivated source for herbal ingredients. Burman. Fully computer-controlled and -monitored. illiterates. Measures. literacy. integrating various aspects such as health. • People’s Empowerment: Dabur. Of these environment issues is the major social concern for the company. S. Community: • Skill Development & Income Generation Training: To make people more self-sufficient. such as satellite nurseries and contract cultivation of medicinal herbs spread across mountain villages. Environment: Another major social concern for the company. Education: Dabur’s educational initiatives include providing for non-formal. who said. Under the project. • School Program: In 2001. • Adult Literacy: Illiterate women in the age group of 15 to 35 years get education. One of the company’s strategic intents is to protect the environment as a responsible citizen. skill development and income generation training. • Non-formal Education: Directed towards children in the age group of 6 to 14 years. and empowerment. through this initiative helps in the formation of micro-credit society/self-help groups. a high-tech greenhouse facility has been established for developing saplings of rare and endangered medicinal plants. It then links these groups with financial institutions that can fund their causes. Through this. and adult education. also help provide local cultivators the scientific knowledge for harvesting herbs and a steady source of income. Vision/Mission and the Philosophy regarding CSR Dabur has a vision of being a company dedicated to the health and well being of every household. ©Collage Article13 50 ." Major CSR Themes Healthcare. Process CSR Programs SUNDESH: In 1993. "What is that life worth which cannot bring comfort to others. through micro propagation. Dabur launched a program to increase awareness about plants in children by organizing awareness camps in various schools. and natural solutions. this greenhouse maintains the highly-critical environmental parameters required for their survival. It is also developing quality saplings of more than 20 herbs. the company imparts training in cutting and tailoring. The company is also involved in reforestation in the Himalayan range.Dabur (FMCG) Principles CSR Overview Dabur strongly believes in meeting the health and personal grooming needs of consumers by providing safe. It then organized a team of children. bee-keeping. and mushroom farming. the company addresses the most deprived and weaker sections of the society including women. Health • The company organizes camps. Manager – Corporate Communication of Dabur. antenatal checkup. where they are given simple solutions for everyday health and hygiene. health awareness through meetings. The trust is also motivated to follow mother and child health programs. ©Collage Article13 51 . which include general OPDs. Metrics and its Evaluation • As a reflection of its constant efforts at achieving superior quality standards. The trust organizes regular medical camps to provide medical services in areas that have no access to proper hospitals or medical centres. eye screening and eye operation camps. Outcomes Awards Dabur has won awards such as: • Dabur was among the ‘Top 10 Great Places To Work’ in 2004. in a survey conducted by Business World in collaboration with Great Places to Work Institute. oversees the rollouts of various community initiatives. including immunization and proper ante and post-natal care. vaccination for children aged 0-5 years. It also conducts regular health-awareness camps for the local communities. Dabur became the first company for ayurvedic products to get ISO 9002 certification. • Chunnilal Medical Trust: The Chunnilal Medical Trust has a dedicated team of doctors and specialists in social medicine. Personnel Support Abhinav Rahul. family welfare. Relating CR to Business Strategies Product Development Water conserving products Human Resource BLT placements.800. to impart special education and provide services to children suffering from various disabilities such as cerebral palsy. and rural development. and a free medical center in Bangalore. a vocational training centre. raise skill levels. It is also involved with The Spastics Society of Bangalore in providing education and support to children with brain damage. and an ongoing business purpose linked to them is given priority focus. and hygiene. The company has launched ‘i-Shakti’ kiosks – an IT-based rural information service developed to provide information and services to meet rural needs in agriculture. improving sustainability throughout the value chain. and the project was expected to achieve cash break-even by 2006. health. deafness. HIV-positive. including consumers and employees. and to improve rural living standards through health and hygiene awareness. The project has been extended to 15 states covering 80. HLL acknowledges that development and poverty reduction depend on economic prosperity. and is committed to minimizing the environmental impact. hiring and investing in local talent (merit-based through employment exchanges) Manufacturing Safety Health Environment manufacturing Sourcing Code of Business Practices (COBP) Compliance Sales Shakti. women empowerment. education. and the society the company operates in. vocational training. especially women. the environment. The total strength of Shakti Entrepreneurs has reached over 30. igniting growth volunteering. a home ©Collage Article13 52 . polio. cause marketing Investment Local enterprise development Profit apportionment Community involvement initiatives Major CSR Themes • Health & hygiene. mental retardation. To improve business skills of the rural population. extensive training programs are held.000 villages. blindness. HLL started a center for the handicapped in Assam called Ankur. Subsequently. The company depends on sustainable sources of raw materials. The society runs a school.HLL (Rural Marketing) Principles CSR Overview In Hindustan Lever Limited (HLL). • Sustainable initiatives have long-term benefits. care for the destitute.” Vision/Mission and the Philosophy regarding CSR HLL's CSR philosophy is embedded in its commitment to all stakeholders. and that international trade and investment create new employment. and other physical disabilities. education. • Special Education and Rehabilitation Center: In 1992. CSR is rooted in its Corporate Purpose . "to succeed we require the highest standards of corporate behavior towards our employees. Process CSR Programs Community • Rural Development: HLL launched Project Shakti in 2001 to create income-generating capabilities for underprivileged rural women by providing a small-scale enterprise opportunity. Shakti also contributes approximately Rs 100 crore to HLL’s topline. and increase economic activity. the company launched other centers in Coimbatore called Kappagam (1998) and Anbagam (2003). rehabilitation of special or underprivileged children. consumers and the societies and world in which we live.the belief that. HLL also bears the capital and upkeep expenses for Asha Daan. or for purchasing computers.00 CONSUMERS SUPPLIERS PARTNERS LEADERSHIP 0. HLL’s health and hygiene education initiative called Lifebuoy Swasthya Chetana. Environment: • Water Conservation and Harvesting: HLL is also committed to extending its efforts on water management to the larger community. which aims at using audio-visual aids. It specifically targets women from low-income groups in rural as well as urban India. challenged children. resources. Health: • Health & Hygiene Education: To educate people about basic hygienic habits. Disaster Relief: HLL has reconstructed a village in the Bhachau Taluka of Gujarat's Kachch district. fractions. The program has so far covered approximately 15000 villages in eight states.00 CUSTOMERS EMPLOYEES ENVIRONMENT GOVERNMENT INVESTORS ©Collage Article13 53 . It aims to achieve this through providing information. and engages in community projects in water adjacent to manufacturing sites.40 0. and geometry. These tools enable teachers to explain basic concepts in mathematics. Their time is ranged from their involvement in Ashadaan to the disaster affected Yashodadham village near Bhuj. such as video cassettes and CDs. such as operation on numbers. destitute people and HIV-positive patients. inputs. and support in the areas of education.80 0. organizing training workshops for teachers. thus enabling them to more effectively manage both classrooms and the school. HLL management trainees spend approximately four weeks on Project Shakti in rural areas with NGOs or Self Help Groups. which was completely wrecked by the devastating earthquake of January 2001. Women Empowerment: HLL's initiative – The Fair & Lovely Foundation aims at economic empowerment of women across India.• • started by Mother Teresa and the Missionaries of Charity in Mumbai for abandoned. is the single largest rural educational program ever undertaken in India. a library. Organizational Support Approximately 9% of the company’s resources for community involvement come in the form of employee time. algebra.60 0. PRIORITY ACTION RADAR Score for Priority Action Maximum COMMUNITIES 1.20 0. • Schools Contact Program – The program indirectly benefits children studying in 21 schools. career. and enterprise. or a laboratory. to primary school children in villages. It offers donations to build an auditorium. Education: • Rural Education Program – HLL is also developing a Rural Education Program. HLL’s center for rehabilitation. which was used to help people restore their homes and start to resume their livelihoods. Outcomes Awards: • • • • • 2005: Bombay Chamber of Commerce and Industry Civic Award for Community Development. totaling Rs 5. 2003: TERI-CSR Special Award from The Energy and Resources Institute (TERI) for initiatives in sustainable development. The company also provided Rs 10 million for Mumbai flood relief in 2005. 1999: Ankur. 2005: Tatapuram and am Tindiindivanam factories received awards for exemplary safety performance from National Safety Council and the Government of Tamil Nadu. HLL committed Rs 80 million for immediate relief of the tsunami-hit areas of Pondicherry. was vested with the prestigious Worldaware Business Award for Social Progress Metrics and Evaluation: • HLL proves its commitment to quality by mandating that all manufacturing facilities are certified to a quality system standard. and Kerala.Financial Outlay In 2005. 2001: Good Corporate Citizen Award by the Bombay Chamber of Commerce & Industry (BCCI). Project Shakti was headed by Sharat Dhall. The company also planned to spend Rs 30 million. Its employees donated a day's salary. Tamil Nadu.1 million. Personnel Support Paresh Chaudhary and R Ram handle its corporate communications department. inclusive of employees’ contribution. • The company has a management system conforming to ISO 14001 & OHSAS 18001. HLL’s Marketing Operations Manager. ©Collage Article13 54 . healthcare and education for their children. ITC assists small and landless farmers to cross-breed their low milk-yielding cattle with high-yielding breeds. but the groups’ focus is on rural development. ITC seeks to achieve two critical objectives: water ©Collage Article13 55 . women empowerment. agriculture. providing electricity connections and supplying fans and lights. as well as in their external relationships. The efficiency of water-use through such systems has been documented comprehensively with a view to sharing the information with farmers through the e-Choupal network. Process CSR Focus Community • e-Choupal: This empowers 3. primary education. Vision/Mission and the Philosophy regarding CSR: According to ITC Chairman. • Livestock Development Program: In collaboration with BAIF Development Research Foundation. a national NGO specializing in livestock development. bamboo and teak in Andhra Pradesh. over 250 km from Jaipur. Vernacular Web sites relating to each agricultural crop that the company deals in provides ready and real time information to even marginal farmers on the prevailing Indian and international prices and price trends for their crop. use of carbon neutral fuels and large scale tree plantations through social and farm forestry have resulted in sequestering 85. • Wasteland Development: Its social and farm forestry program have together greened nearly 41. expert knowledge on best farming practices.000 hectares with over 149 million saplings.283 hectares were brought under plantations of eucalyptus. The challenge lies in fashioning a corporate strategy that enables realization of these goals in a mutually reinforcing and synergistic manner. and micro level weather forecast. Several of its units have installed solar thermal systems in canteens and kitchens.ITC Limited (Rural Marketing) Principles CSR Overview: ITC believes that corporations like itself have a responsibility to set exemplary standards of ethical behavior. • Watershed Project: The government of Rajasthan and the ITC Rural Development Trust signed a memorandum of understanding for a watershed development project in Kalyanpura village. At the close of the planting season of 2005-06. Its efforts in the field of energy conservation. 2.” Its initiatives include improving school buildings.5 million farmers through access to customized crop-specific information in their native village. subabul. • Energy Conservation: ITC endeavors to be a carbon positive corporation. both internally within the organization. "Envisioning a larger societal purpose (a commitment beyond the market) has always been a hallmark of ITC." Major CSR Themes The company is involved in various initiatives like environmental performance. Environmental Performance • Renewable Energy: The company focuses on the use of renewable energy such as biomass and solar energy. habitat and language. constructing toilets. Y C Deveshwar. casuarina. • Integrated Agriculture Development: This intervention aims to improve farm productivity and hence incomes by promoting a package of efficient farm practices and technologies.6% of the CO2 emitted by its operations. the company claims. Education • Primary Education: ITC provides infrastructure facilities to select government schools under its "Project Classmate. The Company sees no conflict between the twin goals of shareholder value enhancement and societal value creation. • Women Empowerment: ITC aims at micro-credit and skills training to generate alternate employment opportunities for women to facilitate better nutrition. 45 12. in association with the World Council for Corporate Governance and Centre for Corporate Governance. CII & Hyderabad Metropolitan Water Supply & Sewerage Board Hyderabad Water Conservation Award –2005.89 46. The Award for ‘CSR in Emerging Economies 2005’. The MIS Asia Award for IT Excellence for e-Choupal – 2006. Green Rating by the Centre for Science & Environment. The Stockholm Challenge Award in the Economic Development category for e-Choupal in 2006. Community Investments Investment in Community Initiatives 50 40 Rs Crore 30 20 10 0 3. The Pacific Asia Travel Association Gold Award in the Corporate Environmental category for the WelcomEnviron initiatives in 2006.91 Outcomes Awards: Some prominent awards received by ITC are: • • The Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in 2007. India. Green Building Rating System). Leaf processing plants at Chirala and Anaparti are the first such units in the world to be 56 • • ©Collage Article13 .54 12. Chola Sheraton and Grand Maratha Sheraton) have obtained ISO 14001 certification for their Environment Management Systems. Green Building Council (Leadership in Energy and Environment Design. • • • • • • • • Metrics and Evaluation: Certifications of superior EHS performance ISO 14001: Environment Management System • All ITC Units and the four hotel properties owned by ITC (Maurya Sheraton.S. instituted jointly by the United Nations Development Programme (UNDP). New Delhi. LEED V2 Platinum Rating by The U. Kidderpore cigarette factory is the first cigarette factory in the world to get ISO 14001 certification. International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF). The inaugural 'World Business Award' in 2004. instituted by the Institute of Directors. Mughal Sheraton.3 1999-00 2000-01 2001-02 Year 2002-03 2003-04 11.conservation and soil enrichment through its watershed projects. The first Indian company and the second in the world to win the prestigious Development Gateway Award in 2006. o Several other units are in the process of being certified.• certified for ISO 14001. Leaf processing plants at Chirala and Anaparti already certified. OHSAS 18001: Occupational Health and Safety Management System • • Kidderpore Cigarette factory certified for OHSAS 18001 in 2003–04. Maurya Sheraton & Towers at Delhi is the first ISO 14001 certified hotel in India. ©Collage Article13 57 . SA 8000: Social Accountability System • Leaf processing plants at Chirala and Anaparti have received this certification. These activities are conducted with the active partnership of local communities. IOC runs child and maternity health centres. education. ©Collage Article13 58 . tube wells. Hampi. health & family welfare. IndianOil has included CSR in its Vision and Mission statement and has built its corporate strategies around it. Process CSR Programs: Community • The IndianOil Foundation: This is a non-profit trust set up to protect. Kanheri caves and Warangal Fort. an international initiative that brings companies together with UN agencies. The majority of these programmes focus on provision of drinking water & sanitation. to serve as a pollution sink and to enhance the aesthetic look of the refinery area. Medicine and Business Administration/Management disciplines are awarded scholarships. the IOF will adopt at least one heritage site in every state and union territory. and defence services. Major CSR Themes: IndianOil has been making contributions every year to national causes. • IndianOil Mission regarding CSR: “To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. transnational. employees.IndianOil Corporation (Oil & Gas) Principles CSR Overview: IndianOil Corporation has been an active founder-member of the United Nations Global Compact. social welfare and community development programmes throughout the country. labor and civil society to support universal environmental and social principles. Funded by IndianOil with an initial corpus of Rs. IndianOil has a statement of obligations towards customers and dealers. installation of hand pumps. IndianOil signed a Memorandum of Collaboration with the Bill and Melinda Gates Foundation to address the spread of HIV/AIDS in India. playing a national role in oil security& public distribution”. Among the monuments short listed by the foundation for adoption are Khajuraho. suppliers. Health • Providing Medical Care: To promote and improve health of communities neighbouring the operational areas. 25 crores and an annual recurring contribution of Rs. IOC has constructed ring wells. trained petrol station staff as 'Peer Educators' and offered space at petrol stations for setting up clinical services for truckers. Equipment and ambulances have been provided to hospitals and Indian Red Cross Society to upgrade their facilities. preserve and promote national heritage monuments in collaboration with Archaeological Survey of India and the National Culture Fund of the Government of India. integrated energy company. pollution control program. IndianOil has stocked and distributed condoms from its selected petrol stations. 10 crores. overhead tanks with water pipelines in some remote areas of the country. • HIV: In 2004. launched communication campaigns to create awareness. Konark. with national leadership and a strong environment conscience. • Providing Clean Drinking Water: Clean drinking water is a major requirement of a significant number of remote areas in India. and empowerment of women and other marginalised groups in rural and backward areas. Education • The IndianOil Scholarship Scheme: Each year. Environment • IndianOil Corporation environmental initiatives includes: development of cleaner fuels such as diesel with low sulphur content and biodegradable lube formulations. Vision/Mission and the Philosophy regarding CSR: • IndianOil Vision: “A major diversified. and ecological parks. 450 meritorious students from economically weaker sections of society pursuing 10+/ITI and professional courses in Engineering. which are scientifically designed green belts that have been developed at Gujarat Panipat refineries. in which all refineries are provided with facilities to control pollution from different sources.” • Apart from its Vision and Mission. community. 72 16. • IndianOil won the TERI Corporate Environmental Award 2002-03 in category III (companies with an annual turnover exceeding Rs.87 Year 1999-00 2000-01 2001-02 2002-03 2003-04 The budget allocation for a typical year towards IndianOil's social responsibility activities: Organizational Support: “Indian Oil is committed to continue rendering support to the Global Compact Programme of the United Nations and will endeavour to abide by all the ten principles of the programme.12 3. Metrics and its Evaluation: • Seven refineries and the IndianOilResearch & Development Centre at Faridabad have achieved the ISO ©Collage Article13 59 .46 16.79 40.95 25.01 13.Financial Outlay: IndianOil Corporation investment in CSR (Rs crore): Donations/ Contribution 23. Therefore. 500 crore). Personnel Support: V C Agrawal is an electrical engineer from Indian Institute of Technology. (These awards were instituted by the Ministry of Power in 1991 to promote energy conservation in all energy intensive industries). Roorkee.35 3.” V C Agrawal – Human Resource Director of IndianOil Corporation. He is the current HR Director of IndianOil and Managing Director of IBP. processes. • IndianOil’s Mathura Refinery won the National Energy Conservation Award for the year 2006. the Forum of Women in Public Sector (WIPS) conferred the Best Enterprise Award on IndianOil for the Corporation's pioneering efforts towards women development and related issues.96 3. This was presented to IndianOil for installation of Flue Gas scrubbing (BELCO) system to treat flue gas from RFCC unit of Barauni Refinery to remove particulate matter and sulphur di-oxide.44 36.05 10.60 13.15 Community Development 2. Outcomes Awards: • In February 2007.71 Total Rs crore 25. products services and people. the company continues to pledge support to the programme through its policies.49 9. some of which also are a part of our Vision and Mission Statements. the first refinery worldwide to receive this certification. and the third in the world in the Petroleum Sector. to be certified ISO-14001 for its efficient Environmental Management System. In 1998-99. Mathura Refinery is the first Refinery in Asia. ©Collage Article13 60 . the Salaya-Mathura Pipeline and the Koyali-Ahmedabad Pipeline became the first oil pipelines in the world to be accredited with ISO-14001 for Environment Management System.• • • 14001:1996 accreditation for Environment Management System. IndianOil’s Mathura Refinery has been certified for "Occupational Health and Safety Management System (OHSMS)" by DNV . Rs. banking system and regional industrial units. vocational training centers and also a market. golf. Maharashtra and Gujarat. 7. • Abiding commitment to safety. • Safety: The Institute of Petroleum Safety. tennis. Community • Disaster Relief Management: The company provides immediate relief to disaster victims. It has also secured land-fill sites.5 crore for Gujarat earthquake victims and Rs. It has extended PURA to Tripura. respect for stakeholder groups and a commitment to add economic. knowledge and economic. undertaken bio-remediation jobs. health and environment standards in the petroleum industry. • Water Management Projects: “Project Saraswati” was envisaged to provide a sustainable solution to ground water resource management in north west Rajasthan. Environment • Company’s Environment Policy: The company believes that its development activities should be planned on sound ecological principle and must incorporate appropriate environmental safeguards. Assam. ©Collage Article13 61 . ONGC employees also contributed one day’s salary in all such disaster cases. Vision/Mission and the Philosophy regarding CSR • Feel responsible not only for wealth creation but also for social and environmental good. It donated Rs. ONGC has evolved guidelines for socio-economic development programs in areas around its operations all over the country. • PURA – Providing Urban Amenities to Rural Areas This program has four focus areas – physical. The company spends around Rs 10 crore on sports promotion. Major CSR Themes Based on the guidelines of the corporate citizenship policy. Health and Environment management (IPSHEM) was set up in 1989 with an objective of improving safety. ONGC also takes pride in promoting Sarva Shiksha Abhiyan of Government of India along with computerbased training in schools. Outcomes Education • The company offers scholarships to SC/ST students pursuing higher studies. healthcare units. It is also associated with All India Football Federation to facilitate promotion of football in the country. Andhra Pradesh. Building up a system for management of schools.15 crore for Kargil war relief to the Prime Minister’s Relief Fund. electronic. football. according to the company. Process CSR Strategy An approach to business that exemplifies transparency and ethical behavior. health and environment to enrich quality of community life. Conscious about its responsibility to society. social and environmental value. healthcare and entrepreneurship in the community and support water management and disaster relief in the country. the company promotes education. chess. • Imbibe high standards of business ethics and organizational values. shooting and snooker. athletics. and carried out assessment studies for crop damage. It has contributed for the setting up a Science Centre in Agartala and a Center for Research in Pertroleum and Biotechnology at Assam. • ONGC launched a “Green Movement” to promote afforestation.Oil and Natural Gas Corporation Limited (Oil & Gas) Principles CSR Overview ONGC is playing an important role in strengthening India's corporate world with a tuned sense of moral responsibility towards the community of people where it operates and the country. Currently there are more than 150 sports persons on its roll and nearly 50 players are paid a stipend by ONGC. • Promotion of Sports and Culture The country promotes sports such as cricket. 8 crore towards cyclone relief in Nimpada. Nagaland. Metrics and Evaluation • ONGC has all its operational facilities certified for Quality. UK. Medical camps are organized serving more than 10. More than one lakh children have been immunized for polio through the active participation of the organization in setting up polio clinics. He is actively leading the continuous change journey of ONGC called “Corporate Rejuvenation Campaign. 2003 and is currently responsible for formulation and implementation of policies in tune with the strategies of ONGC. Chennai are deriving support from ONGC.Health • Healthcare and Family Welfare Various medical research centers in the country such as Sankara Nethralaya. Organizational and Personnel Support • Dr.’ • TERI Corporate Award for Corporate Social Responsibility in recognition of its corporate leadership for good corporate citizenship and sustainable initiatives.75% of net profits of the previous year towards Social and Economic Development programs every year.’ from the World Council for Corporate Governance. with 60% of its grants directed towards Corporate programs while the rest is aimed at programs in operations and work centers. ONGC gives grants to Latika Roy Memorial Foundation for running a school for the mentally challenged. ONGC decided to allocate 0. OHSAS 18001. Occupational Health& Safety and Environment Management (QHSE) based on ISO 9001. Ashok Kumar Balyan. ©Collage Article13 62 . Organization Chart Note: The CSR initiatives in the company will be headed by the person heading the corporate communication team. Outcomes Awards: 2006 • ‘Golden Jubilee Award for Corporate Social Responsibility in Emerging Economies – 2006.000 patients in the vicinity of operations areas annually and more than 300 patients obtain IOL implants done for free of cost. ISRS and ISO 14001. 2005 • ‘Golden Peacock Global Award for Excellence in Corporate Governance among State-owned Companies in Emerging Economies. The company has also set up a School of Maintenance Practice to promote safety in operations. joined the Board of ONGC as Director (Human Resources) on August 23.” Financial Outlay Since 2003. emotional. Major CSR Themes: DLF’s major CSR focus is on the welfare of masses.’ in Delhi and the NCR regions. 2005 at the DLF City Centre Mall.DLF (Real Estate) Principles CSR Overview DLF is committed to play a key role in performing its social obligations by adhering to the specified norms of legal. social. in association with Haryana Fire Services organized a ‘Fire Safety Drill’ on April 20. Vijay Vancheswar (Vice President. Education: The group has opened Summerfield School in Gurgaon. • Safety and Security Exhibition: The company along with DLF City residents. Gurgaon. Process CSR Programs Community: • Fire drill: The group. Personnel Support Dr. It was organized with the help of fire services department to create awareness among Gurgaon’s residents. 2006. • DLF & Electrolux: The companies partnered to organize a four-day self-defense program for women called ‘Electrolux Femme Force. with the objective of all-round development of pupils in terms of physical. • DLF sponsored two One-Day International cricket matches between India and Pakistan. and ethical practices. organized an exhibition to create awareness among the residents and highlight various measures that need to be undertaken to ensure utmost safety. and intellectual growth. Corporate Communication) and Shalini Wadhawa (Chief Corporate Communication Manager) overlook the company’s CSR initiatives. environmental. held on April 18 and 19. Vision/Mission and the Philosophy regarding CSR: The group is committed to contribute and associate with worthy and humanitarian causes that affect people. ©Collage Article13 63 . the proceeds of which were used to help people affected by the earthquake in the Jammu and Kashmir region. creative and caring citizens. Wipro has chosen Education as its CSR investment. The project ranges from training programs for teaches and principals to concerted efforts for transforming entire schools. for themselves and for the world. Wipro received a certificate of honor from the BusinessWorld FICCI-SEDF Corporate Social Responsibility Award for its contributions in the field of CSR. Wipro decided to invest in one big area that could create significant social impact. Organizational Support: Wipro has a strong organizational and personnel support. Wipro initiatives strive for education quality. WIPRO Outcomes Awards: • In 2003. Their management insights and experience add significance to our programs. employees and customers. Personnel Support: “Top management is indirectly involved in our programs. It started in 2001 and it has reached over 4. Mr. in order to develop critical. Wipro is a socio-economic citizen. Wipro business and initiatives are driven by the idea of creating value for all its stakeholders – shareholders. Education • Wipro Applying Thought in Schools: This initiative is aimed to rekindle the spirit of curiosity in children. Strict control and monitoring of usage and maintaining quality standards resulted in efficient power consumption. It has been developing employees’ competencies through programs that range from induction training to leadership development Environment • Energy conservation is a consistent focus area for Wipro both from a cost control and a social responsibility perspective. Wipro idea of corporation is that it is not a machine. community. but a social system of people coming together to make life better. Process CSR Programs: Community • Employees: Wipro has a strong program of People Development. ©Collage Article13 64 . Vision/Mission and the Philosophy Regarding CSR: Wipro believes in two fundaments that have guided its engagement: “One. such as roads.Wipro(IT) Principles CSR Overview: Wipro believes that value creation for shareholders is necessary. Two. Its Chairman Azim Premji has launched his own Foundation – Azim Premij Foundation – with a focus on universalization of education. Premji [Wipro Chairman] himself and a few top management people are actively involved in our social programs.” Vijay Gupta – Head Corporate Communication. It has been developing two initiatives: Wipro Applying Thought in Schools and Wipro Cares. • Wipro Cares: The two aims of this initiative are: to provide rehabilitation to the survivors of natural calamities and to enhance learning abilities of children from the under privileged sections of the society. but not the sole purpose of its existence. if you can do good. you must. Financial Outlay: Wipro invested Rs 3 crore in education programs in 2002.500 teaches and principals from 241 schools in 4 states. hospitals and institution.” Major CSR Theme: Instead of creating support. Metrics and its Evaluation: • To evaluate its CSR programs. ©Collage Article13 65 . the Corporate Executive Committee has quarterly review meetings on all issues related to social initiatives. painters. Tamil and Telugu in rural areas. counseling centers to rehabilitate marginalized devadasis in North Karnataka. Since 1996. Infosys Technologies develops programs in the area of environment. Vision/Mission and the Philosophy Regarding CSR: Infosys Foundation. when the Infosys Foundation was established. The Company also has programs for conservation of paper and water and waste management.Infosys (IT) Principles CSR Overview: Social responsibility is considered an important part of Infosys value system. Apart from the Foundation. Process CSR Programs at Infosys Foundation: Community • Social Rehabilitation and Rural Upliftment: The Foundation has been working on initiatives such as: training destitute woman in tailoring and donation of sewing machines and material to them to improve their livelihood. Social Rehabilitation & Rural Upliftment. CSR Programs at Infosys Technologies: Community • Employees – Health and safety: Employees are encouraged to report workplace hazards and incidents to the concerned officials and contribute to implementing solutions. ©Collage Article13 66 . donation of aid equipment to the physically challenged in rural areas of Karnataka. came into existence on December 4. Infosys has invested Rs 50 crore on CSR programs. medicines and high-tech equipment to hospitals and community. health and safety (EHS).. It also implemented safety programs to improve awareness about precautions and measures to improve road and personal safety. relief work conducted after natural disasters. such as the Infosys Super-specialty Hospital in Pune and donations of ambulances. Education • Programs include Library for Every Rural School Project. in which the Foundation has set up more than 10. donations for reconstruction of old schools. and construction of a science center at a rural school in the Kolar District of Karnataka. such as health week. poets and musicians in rural areas. distribution of scholarships to poor students across Karnataka. The programs include the revitalization of art of the weavers of Pochampalli village in Andhra Pradesh and of. such as the use of its own generation units. the philanthropic arm of Infosys Technologies Ltd. Infosys implemented health clubs and health programs. Its main objective was to fulfill the social responsibility of the company by supporting and encouraging the underprivileged sections of society. Healthcare • Infosys Foundation has been investing in healthcare initiatives that benefit both urban and rural poor.150 libraries in rural schools. These initiatives include the construction of hospitals. Major CSR Themes: Infosys Foundation has implemented projects in four key areas: Healthcare. and construction of orphanages in rural areas. Environment • Infosys has been adopting energy conservation and efficiency programs. distribution of computer educational books translated into Hindi. nutrition programs and ergonomics training. and Art & Culture. 1996. Learning & Education. • Art and culture: The Foundation works towards the preservation of the Indian cultural heritage and the promotion of artists in rural areas. She has a ME Electrical degree from the Indian Institute of Science.’ Metrics and its Evaluation: Infosys Technologies evaluation on Environment. Outcomes Awards: • Infosys Foundation was awarded the Economic Times Corporate Citizenship Award (2001). all over rural India. wife of Naryana Murthy. ©Collage Article13 67 . Infosys Technologies develops internal initiatives. In 2005. • Infosys has commenced the process for OHSAS 18000 – an international occupational health and safety management system specification – certification in 2006.53 3. Bangalore.25 Rs Crore 5. Ms Murthy has received several awards for her philanthropic activities. the chief mentor of Infosys is a trustee and chairperson of the Infosys Foundation.” • Infosys was quoted as the 'Best Company to Work for In India 2005' by the BT-Mercer-TNS survey published in ‘Business Today. it was found to conform to the EMS Standard ISO 14001:2004. in which Infosys Environmental Management System (EMS) is subject to third party surveillance audits. education and health. Health and Safety initiatives: • Infosys programs on environment are being evaluated through the Ozone initiative. Personnel Support: Sudha Murthy.Financial Outlay: Infosys Foundation grants in CSR : Infosys Foundation Grants 16 14 12 10 8 6 4 2 0 15 12 13.75 2002 2003 2004 2005 2006 Organizational Support: The CSR activities are implemented by the Infosys Foundation. She began her career as a Development Engineer with TELCO and later taught Computer Science to B. It received the award “for doing pioneering work in poverty alleviation.Sc and MCA students at a reputed college under Bangalore University. Stephen. University of Delhi Hindu College. Colleges Surveyed Faculty of Management Sciences. University of Delhi Ramjas College. University of Delhi Delhi School of Economics St. University of Delhi Sree Ram College of Commerce. University of Delhi Sri Venkateshwara College. University of Delhi Kirori Mal College. A total of 97 students were surveyed and their opinions were incorporated in the study.Appendix: Details of the Survey A survey was conducted among students and Human resource consultants to gather the perception of students and see if CSR plays an important role for an employee while s/he is choosing a company.N Number of Respondents 11 12 8 9 12 10 16 9 11 Company Gallup Eicher Consultancy Services ©Collage Article13 68 . University of Delhi Random Colleges Name of the consultant Shwetabh Jha Ajith S. Appendix 2: Summary of Student Questionnaire Results Q1: W hat are the parameters on w hich you w ould choose a company for employment? Co mp any's lo cat io n and benef it s t hey pro vid e Co mp any's p rod uct s or services Parameters for choosing company Co mp any's sup po rt of t he communit y and enviro nment Co mp any's values Imag e of company (B rand name in t he market ) Jo b Descrip t io n Learning and Develo pment op po rt unit ies Prof it abilit y Salary 0 10 20 30 40 50 60 70 Num be r of re s pons e s Question 2: How would you define CSR? Key themes emerging from definitions given: Improve company's image/ reputation Make shareholders happy Score political points Payback to society Demonstrating concern for society and its upliftment Not causing harm social harm when deciding on new ventures and projects Welfare of the community and environment Being sensitive to the environment around Playing its part in society as part of a long term vision Improve the conditions of the country the company is working in All round economic development Moral responsibility Ensuring sustainability of future profits Social responsibility to be fulfilled in exchange for social resources it uses Silver lining for companies having an inherent desire to do something to contribute to society Helping the less fortunate part of society Enhance their goodwill and increase their market share Responsibility to stakeholders Mutual relationship . well-off section of society Beyond legal obligation ©Collage Article13 69 . poverty elevation Using influence and resources to create awareness and participate in or initiate programmes for social and environmental welfare Gain feel good factor from people Take into consideration ill effects of their actions on society at large Not profit making . e. lifestyle.g. capable.society and company benefit Parameter for judging a company's performance and responsibilities Helps increase awareness of social and economic problems Employee facilities and benefits. breaks Improving education systems.'indulged in' to fulfil responsibilities which lie on the educated. HOW? Number of Comments mentions Customer retention 1 Increasing profits 1 Enhancing performance 1 Rural development 1 Don't know 1 NO .WHY? Number of mentions Comments ©Collage Article13 70 . and aiming to become a world player Q3: W hat do you think are the benefits (tangible and intangible) of doing CSR? A iming to become a w orld player Corporate reputation Doing good! Improved f inancial performance Increased ability to attract and retain employees Increased sales and customer loyalty Increasing accountability Management of risk Reduced operating costs Reduced regulatory oversight Satisfying grow ing investor pressure Satisf ying stakeholders 0 10 20 30 40 50 60 70 Benefits of doing CSR Num be r of re s pons e s Q4: Do you think that in the Indian conte xt CSR is a part of the bas ic bus ine s s fram e w ork of com panie s ? No answ er/not sure 3% Y es 29% No 68% COMMENTS: (content analysis) YES .Well-measured approach to obtain more profits Instilling motivation among youth towards their social responsibility Doing good. WHY? Number of mentions Comments Money matters Not inculcated in CSR ways ©Collage Article13 2 2 1 1 1 1 1 71 .cosmetic only Early stages of development Don't know 10 1 11 1 1 1 3 2 1 2 2 Q5: Would a high CSR involve m e nt of the com pany influe nce your de cis ion to join the com pany? Not applicable/no answ er 5% No 40% Y es 55% COMMENTS: (content analysis) YES . brand value. satisfaction Stronghold/future Catch attention Beneficial to society Essential NO .HOW? Number of Comments mentions Respect.Companies only look at profits Fad to attract foreign investment Not many companies involved yet Doesn't include all aspects of CSR Not legally binding Lack of CSR knowledge Not seen as important Size/type of companies in India For show . Too selfish CSR is cosmetic/for profits Decision depends on parameters in Q1 1 3 1 Q6: W ould you prefer to join a high ranked CSR involved company? Not applicable/neutral 6% No 27% Y es 67% COMMENTS: (content anlaysis) YES Number of mentions Comments Good reputation = good profits 2 Better satisfaction 4 Preference 2 Perception that good to society means good to employees/salaries Learn integration of corporate work with social responsibility Reflects on company values/culture Duty to help in holistic development of the economy Brings public support Accountable to social good of society (more than profits) NO Comments Not priority for me Number of mentions 1 3 1 3 1 1 3 ©Collage Article13 72 . Profile of work (job description and salary) more important Doesn't make a good company/no difference 2 2 Q7: In your view w hich is the most "responsible" company/companies in India? (Figures based on numbers of mentions rather than ranking figures.) 50 45 40 35 30 25 20 15 10 5 0 IT C l ja j LF re j ys rte sa ls on da ab u ut c er N ch ni te U Ba In fo s D BS od Ai le v An H W ip ro L h ni an us t U r D Number of mentions G H Company OTHER COMPANIES MENTIONED Number of Company Name mentions Tata 14 Procter and Gamble 1 Maeuiti 1 Reliance 1 Birlas 1 ©Collage Article13 H in d er o H 73 . water Birlas .taking up are around the company for maintenance Standard Chartered AIDS Awareness Programme TATA projects TERI TISS WIPRO 1 2 4 1 1 1 ©Collage Article13 74 .in Rajasthan Microsoft anti-AIDS programme Navneel .Que s tion 8: What are the top of m ind is s ue s that corporate India ne e ds to tak e care of? Community Uplif tment Top of mind issues Human Rights Children/Women Health and Education Health Related (cancer. HIV ) Environment Education 0 10 20 30 40 50 60 70 Num be r of re s pons e s Question 9: What are the top of mind CSR programmes that you can recall? Company/Programme Aashirwaad atta .educational institutions GE Elfin Number of mentions 1 1 1 HLL Shakti .primary education to rural kids under rural development Infosys .good to society by saving paper None .no examples given/Don't know Pepsi's water harvesting activity Project Shailesh 12 2 38 2 1 1 1 46 1 1 SI electronics .for education ITC e-chonpal Lifebuoy Swasthya Chetna Lupin .