Workshop London, UK

VPM’s London Academy of Education and Research Workshop London, UK Corporate Social Responsibility (CSR) Tuesday, 27th October, 2009 PRESENTATION by Dr. GURU VPM's London Academy of Education and Research

“No country other than India, and no religion other than Hinduism could have produced a Mahatma Gandhi.” - London Times VPM's London Academy of Education and Research

Corporate Social Responsibility (CSR) • Section – I : Introduction to CSR • Section – II : Global Conferences and Thinking • Section – III : Why CSR? • Section – IV : Spectrum of CSR Activities • Section – V : Issues and Responses • Section – VI : Other Global Responses • Section – VII : CSR - Ethics VPM's London Academy of Education and Research

Section - I Introduction to CSR VPM's London Academy of Education and Research

Mahatma Gandhi ‘there is enough for everybody to satisfy their need but not greed’ VPM's London Academy of Education and Research

Mahatma Gandhi ‘property must serve the cause of human happiness and should also uplift the person who manages it.’ There is a need to practice ‘Aparigraha’ (non-possession). VPM's London Academy of Education and Research

CSR Definition Broadly applicable to business sector, CSR is about meeting the growing social and environmental expectations for improving business performance and sustaining it. VPM's London Academy of Education and Research

Global sustainability has been defined as the ability to "meet the needs of the present without compromising the ability of future generations to meet their needs." VPM's London Academy of Education and Research

“CSR is about businesses and other organisations going beyond the legal obligations to manage the impact they have on the environment and society. In particular, this could include how organisations interact with their employees, suppliers, customers and the communities in which they operate, as well as the extent they attempt to protect the environment” The Institute of Directors, UK “CSR is the acknowledgement by companies that they should be accountable not only for their financial performance, but for the impact of their activities on society and/or the environment.” CBI, UK VPM's London Academy of Education and Research

CSR DEFINED European Commission (2006):- Policy communication on CSR • CSR is a concept whereby companies integrate social and environmental concerns in their business operations and their interaction with their stakeholders on a voluntary basis. • ‘Implementing the partnership for growth and jobs: Making Europe a pole of excellence on CSR’. VPM's London Academy of Education and Research

“the continuing commitment of business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” -The World Business Council for Sustainable Development (WBCSD)www.wbcsd.org VPM's London Academy of Education and Research

Early conception of CSR refers to- “the businessman’s decision and actions taken for reasons at least partially beyond the firm’s direct economic or technical interest.” VPM's London Academy of Education and Research

Broader view is that they are obliged to- “pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society”. VPM's London Academy of Education and Research

Wider dimension as follows - • By “social responsibility” we mean the intelligent and objective concern for the welfare of society that restrains individual and corporate behaviour from ultimately destructive activities, no matter how immediately profitable, and leads in the direction of positive contributions to human betterment, variously as the latter may be defined.Bhattacharya Jayanta, ‘Corporate Social Responsibility: Ethical and Strategic Choice’, pp 2-3 VPM's London Academy of Education and Research

Sustainable development "is a process of achieving human development... in an inclusive, connected, equitable, prudent and secure manner. A secular sustainable enterprises, therefore, is one that contributes to sustainable development by delivering simultaneously economic, social, and environment benefits - the so called triple bottom line." VPM's London Academy of Education and Research

Definition LATERAL VIEW Corporate Social Responsibility “fatuous drivel created by conmen for idiots” VPM's London Academy of Education and Research

What do we call it? • There are 350 names for CSR • Corporate Social Responsibility (CSR) • Corporate Responsibility • Corporate Citizenship • Responsible Business Practice • Sustainable Development • Corporate Citizenship • Corporate Sustainability /Organisational Sustainability /Institutional Sustainability • Business Excellence • Corporate Governance VPM's London Academy of Education and Research

How do we talk about it? “Achieving strategic control of Organisational Sustainability” “Leading the development of the University Ethos” “Leadership, choices and excellence not control” “The organisation must communicate the reasons (motivations) that are appropriate” “delivering relevant messages to different audiences ” VPM's London Academy of Education and Research

Corporate social responsibility; fraud management and control are two key issues facing World Inc. • CSR has to address not the superfluous and superficial issues to gain publicity and mere building of brand value or enhancing market capitalisation. VPM's London Academy of Education and Research

It shall be the endeavour of VPM’s group of institutions and VPM’s London Academy of Research and Education to spread this message across and make sure that a viable novel concept of CSR emerges to bring about a paradigm shift in the approach of corporates towards the responsibilities to mankind at large. VPM's London Academy of Education and Research

CSR has to go to the heart of the problems faced by the human race viz. • global warming • environmental and ecological devastation • abuse of child labour • sexual harassment • women empowerment • moral re-armament of society • elimination of various kinds of delinquencies in the World • human rights in the place of work and in society and efforts to provide basic amenities of • food • clothing and • shelter to every member of the human race across countries & continents. VPM's London Academy of Education and Research

CSR in practice • To treat employees fairly and equitably • To operate ethically and with integrity • To respect human rights • To sustain the environment for future generations • To be a caring neighbour in local communities • To have the appropriate structure and policies in place to interact responsibly with stakeholders • To monitor, evaluate and report the company's level of responsibility VPM's London Academy of Education and Research

The Rise of Corporate Philanthropy Increasing strategic impact 2009 – emerging market partnerships 2008 – skills-based giving 2006 – employee recruitment 2002 – leadership development 1998 – employee response & engagement 1950 – good community citizen VPM's London Academy of Education and Research

The Evolution and growth of CSR Philanthropy ---- religious practices benevolence of the wealthy 17th-18th century Corporate Philanthropy ---- - growth of Trust/Foundations 20th century ----- business strategy CR/CSR/SR ----- visibly felt contribution CSR/SA/GRI… 21st century VPM's London Academy of Education and Research

The Evolution and growth of CSR Philanthropy ---- religious practices benevolence of the wealthy 17th-18th century Corporate Philanthropy ---- - growth of Trust/Foundations  Bhopal tragedy in India • Shell bribing politicians in Nigeria Collapse of Enron, Worldtel Nike using child labour 20th century ----- business strategy CR/CSR/SR ----- visible felt contribution CSR/SA/GRI… 21st century VPM's London Academy of Education and Research

The root and growth of CSR Philanthropy ---- religious practices benevolence of the wealthy 17th-18th century Corporate Philanthropy ---- - growth of Trust/Foundations Rise of environmentalism Human rights Consumer rights etc 20th century ----- business strategy CR/CSR/SR ----- visible felt contribution CSR/SA/GRI… 21st century VPM's London Academy of Education and Research

“Every Company has a special continuing responsibility towards the people of the area in which it is located and in which its employees and their families live.” Shri J.R.D.Tata VPM's London Academy of Education and Research

Today’s scenario Resource management & pollution control prioritized Health & Safety of workers underlined Consumer interests addressed Reputation Trust Social needs of host communities served Partnership with environmental NGOs Commitments to international laws, protocols and guidelines made Profit VPM's London Academy of Education and Research

CSR vs Financial Crisis The ongoing financial crisis and its effects on the global economy have made it clear that the stability of our global market system depends on responsible behaviour, sustainable business models and proactive management of business impacts on society as well as regulatory frameworks. VPM's London Academy of Education and Research

 68 % business leaders in USA are using CSR to create new revenue streams ----- survey conducted by Environmental Leader (think tank) US. • 69 % private and public organizations worldwide opt for increases in their CSR budget to have positive impacts ---- IBM survey 2008 • Marks & Spencer to invest over US$ 300 million on green retailing VPM's London Academy of Education and Research

The business of business is business ---- Milton Friedman Business has no responsibilities other than to maximize profits for the shareholders VPM's London Academy of Education and Research

SECTION - II Global Conferences and Thinking VPM's London Academy of Education and Research

BOX 1 Universal Declaration of Human Rights (UDHR) 1948 • recognizes the universality of human rights. • provides a common standard of achievement for all people and all nationals. VPM's London Academy of Education and Research

BOX 2 Brundtland Report 1987 • UN Commission : • identifies ways and means to improve human welfare in the short term without disturbing the ecological balance in the medium and long-term. • increasing consultation and cooperation among member nations • special role of World Inc. in achieving human welfare without disturbing the nature. VPM's London Academy of Education and Research

BOX 3 United Nations Conference on Environment and Development -Rio Summit 1992 • Issues addressed : • systematic scrutiny of patterns of production • alternative sources of energy • growing scarcity of water and extreme air pollution • achievement • agreement on the climate change convention that in turn led to the Kyoto Protocol. VPM's London Academy of Education and Research

BOX 4 Vienna Declaration on Human Rights 1993 • All human rights are : • universal • individual • interdependent and • interrelated. VPM's London Academy of Education and Research

BOX 5 World Business Council for Sustainable Development (WBCSD) Report 1995 • Coalition of 200 multinational companies: • concerns over economic growth vis-à-vis ecological and social imbalances • commitment to ecologically sustainable economic growth and social progress • enterprise as a catalytic agent for motivating business towards sustainable development • a platform for identifying ways and means of attaining and maintaining ecologically sustainable, inclusive, competitive edge VPM's London Academy of Education and Research

To quote the WBCSD “It is the continuing commitment of the business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.” VPM's London Academy of Education and Research

BOX 6 8 Millennium Development Goals UN initiative for human welfare in the new century VPM's London Academy of Education and Research

Eight goals include : • eradicate extreme poverty and hunger • achieve universal primary education • promote gender equality and empower women • reduce child mortality • improve maternal health • combat HIV/AIDS, malaria and other diseases • ensure environmental sustainability • develop global partnership VPM's London Academy of Education and Research

Millennium Development ‘Goals' N.B:- • The deliberations of the millennium declarations were adopted in September, 2000. The purpose was “to create an environment – at the national and global levels alike – which is conducive to development and the elimination of poverty.” • More than 150 countries, nearly 200, have pledged the achievement of the Millennium Development Goals by 2015. VPM's London Academy of Education and Research

BOX 7 World Summit on Sustainable Development, Johannesburg 2002 • Addressed : • global issues of billions of people at the bottom of the pyramid around the world • critical role and responsibilities of enterprise in addressing some of the most daunting and intractable problems facing mankind. VPM's London Academy of Education and Research

Convergence of guidelines, standards & benchmarks Guidelines OECD UN Global Compact SRI Sarbanes Oxley GRI ISO standards VPM's London Academy of Education and Research

Section - III Why CSR? VPM's London Academy of Education and Research

WHY CSR? • Strong CSR/CR initiatives, strategies or commitments must be designed to deliver benefits or gain advantages in the following areas: • Improved Ecologically Sustainable Financial Performance • Reduced Operating Costs • Enhanced Brand Image / Corporate Reputation • Increased Sales and Customer Loyalty • Increased Productivity and Quality • Increased Ability to Attract and Retain Employees • Employees stay longer, reducing the costs and disruption of recruitment and retraining VPM's London Academy of Education and Research

WHY CSR? Contd… • Makes Business more competitive and reduces the risk of sudden damage to reputation (and sales). investors recognise this, and are more willing to finance • Reduced Regulatory Oversight • Access to Capital • Promote and Practise Social Good • Project Enterprise as Friend of Society • Minimise Government Intervention • Harmonious Relationship between Different stakeholders • Improved Opportunities For New Products/ Services • Help to manage risk VPM's London Academy of Education and Research

Church gives priests, nuns the `green` signal • Practices the church wants members to adopt: • Green cover on at least 40% of church properties • Avoiding use of plastic • Adopt rainwater harvesting • Use of CFL bulbs to reduce energy consumption energy This is a kind of commitment we are making to God to preserve his divine power in the environment. Source : Mumbai Mirror, 24 October, 2009, p6

The World Business Council for Sustainable Development : • Indicates enterprise has to “meet the needs of the present without compromising the ability of future generations to meet their own needs.” • Socially Responsible Investment (SRI), which maximizes ROI after adjusting for the adverse externalities and the concomitant costs, is the order of the day. VPM's London Academy of Education and Research

Natural resources are consumed by enterprise through its activities – • To make profit • Obligation to replace, • Otherwise, enterprise has to contribute to social good in one form or the other. VPM's London Academy of Education and Research

Section - IV Spectrum of CSR Activities VPM's London Academy of Education and Research

Workshop London, UK