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CSR in India. Birendra Raturi CBI Trainer Venue: 8-9 June 2011 FICCI New Delhi India. Program CSR training India. Social Responsibility .

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Csr in india

CSR in India

Birendra Raturi

CBI Trainer

Venue: 8-9 June 2011

FICCI New Delhi India

Program CSR training India


Social responsibility

Social Responsibility

Societies are not destroyed by the activities of rascals but by the inactivity of good people. What a paradox! If they can tolerate destruction by being inactive, how can they be good? The question is, are they discharging their social responsibility?

Centre for the Promotion of Imports from developing countries | June 2011


Great leaders said

Great Leaders said

“We do not claim to be more unselfish, more generous or more philanthropic than others, but we think we started on sound and straightforward business principles considering the interests of the shareholders, our own and health and welfare of our employees…the sure foundation of prosperity”. ---JamshedjiNusserwanji Tata

The price of greatness is responsibility. --Winston Churchill

For evil to flourish, good people have to do nothing and evil shall flourish. --Edmund Burke

and thus

Every individual and organization has social responsibility without which society starts dying

Centre for the Promotion of Imports from developing countries | June 2011


Csr in india background

CSR in India- Background

Today's buzzword, Corporate Social Responsibility or CSR has been part of the Tata Group ever since the days of Jamshetji Tata. Right From 1892

Workers' welfare requirements of the country

Granting scholarships for further studies abroad in 1892

Supporting Gandhiji's campaign for racial equality in South Africa

First science centre, hospital and atomic research centre

providing relief and rehabilitation to natural disaster affected places

Tata initiated various labour welfare laws, like the establishment of Welfare Department was introduced in 1917 and enforced by law in 1948 or Maternity Benefit was introduced in 1928 and enforced by law in 1946.

Centre for the Promotion of Imports from developing countries | June 2011


Csr progression in india

CSR progression in India

Evolved through the concept of ‘giving’ – an integral part ofIndian culture

  • Philanthropy

  • Religious donations

    Modern connotation

    Gandhian concept of Trusteeship

    Bombay Plan (1944-45) – First initiative by leading business houses (Tata, Bajaj, Birla group through FICCI)

    Individual initiatives by individual corporate

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The evolution of csr

The Evolution of CSR

to

Sustainable Business

integrated into business functions, goals, strategy

to

corporate community investment

strategic partnershipsinitiated by company

to

community affairs

strategic giving linked to business interests

(includes cause- related marketing)

to

philanthropy

passive donations to charities when requested

from

profit focus

a company exists only for short term share holder profit

Centre for the Promotion of Imports from developing countries | June 2011


What is csr macro level

Strategic alignment towards CSR, community involvement, stakeholder dialogue, multi-sector partnerships, social investment, institution building, CSR-oriented advocacy.

Social and environmental auditing and reporting, voluntary standards, codes of conduct, multi-sector partnerships, stakeholder dialogue, eco-efficiency measures.

Legislation, inspection, criminal and civil prosecution, foreign direct liability (for overseas subsidiaries), industry standards.

What is CSR (macro-level)

Centre for the Promotion of Imports from developing countries | June 2011


Csr in india drivers

CSR in India: Drivers

National and international laws

Globalization brought new players to Indian markets

Growing middle class

Entry of new money (payment systems) made previously inaccessible products accessible

Brands support by attracting advertising

Part of the population remains poor

Education is not for everyone a reality

Welfare GAP between urban and rural areas

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Csr internal v s external

CSR - INTERNAL v/s EXTERNAL

Internal (carried out within the organisation) viz.

  • Energy and water conservation

  • Employee welfare – training, healthcare

  • Affirmative action – employment of backward sections

  • Corporate governance

    External (within vicinity or for society at large), viz.

  • Community development

  • Capacity building

  • Environmental protection

  • Healthcare

  • Creating awareness - education, health, social issues

  • E-initiatives – Online Information, éducation, etc.

Centre for the Promotion of Imports from developing countries | June 2011


Developments in csr in india

Developments in CSR in India

From philanthropy to CSR to Inclusive business. Carroll’s CSR pyramid

Centre for the Promotion of Imports from developing countries | May 27, 2010


Csr initiatives in india

CSR Initiatives in India

  • Ministry of Corporate Affairs published the “Corporate Social Responsibility Voluntary guidelines 2009”

  • Guidelines on Corporate Social Responsibility for Central Public Sector Enterprises (March 2010)

  • National Foundation of Corporate Citizenship www.nfcgindia.orgGovernance (NFCG) in partnership with Confederation of Indian Industry (CII), Institute of Company Secretaries of India (ICSI) and Institute of Chartered Accountants of India (ICAI)

  • www.csrindia.info – a portal for information on CSR

Centre for the Promotion of Imports from developing countries | June 2011


Federal government policies and legislation

Federal government policies and legislation

Specific issue policies and legislation, e.g.:

  • Tax reduction in respect of donations to certain funds, charitable institutions, etc. (80D)http://www.incometaxindia.gov.in/acts/income%20tax%20act/80g.asp

    • Child Labour Law (1996)http://www.indianchild.com/child_labour_law_in_india.htm

    • Environmental Protection Act (1986) and many sub-regulationshttp://envfor.nic.in/legis/env/env1.htmlhttp://sjvn.nic.in/projects/environmental-regulations.pdf

    • Right to Information Act (2005)http://righttoinformation.gov.in/rti-act.pdf

Centre for the Promotion of Imports from developing countries | May 27, 2010


Csr initiatives

CSR initiatives

Confederation of Indian Industry (CII)

CII is a non-government, not-for-profit, industry led and industry managed organisation, playing a proactive role in India’s development process

National Committee on Corporate Social Responsibility & Community Development (constituted 2001)

CSR Activities

  • Social Development Agenda

  • Develops CSR guidelines

  • Promotes the sharing of CSR experiences and best practices

    www.cii.in

Centre for the Promotion of Imports from developing countries | June 2011


Csr initiatives1

CSR initiatives

Bombay Chamber of Commerce & Industry

Bombay Chamber of Commerce & Industry provides a platform for those members who are looking for suitable projects and activities to fulfill their responsibilities.

Provides information regarding a few projects run by NGOs which may be considered for support either individually or jointly with other members.

Handbook on CSR

www.bombaychamber.com

Centre for the Promotion of Imports from developing countries | June 2011


Csr initiatives2

CSR initiatives

Global Compact Network India

Formed in 2003, National Contact Point of Global Compact (GC)

GC: Guiding principles for businesses towards respecting values of Human Rights, Labour Rights, Environment Protection and Anti-corruption and working towards achievement of UN Millennium Development Goals.

http://globalcompactasiapacific.org/india/

www.globabcompact.org

Centre for the Promotion of Imports from developing countries | May 27, 2010


Csr initiatives3

CSR initiatives

Close cooperation with OECD (as a non-member country)

India is on the Governing Board of the OECD’s Development Centre and it also participates as an observer in some OECD Committees and various working groups.

The OECD Development Centre:Innovativesolutions to globalchallenges of development, povertyalleviation and inequality

India also supports the OECD regionally-focused activities in Asia, hosting regional forums and workshops on issues including investment, taxation, financial education, private pensions, and development.

www.oecd.org

Centre for the Promotion of Imports from developing countries | May 27, 2010


Key issues in export markets

Key issues in export markets

What are expectations of international buyers?

Strong supply chain responsibility (from raw material to final consumer)

Environmental responsibility (India’s biodiversity heritage)

Transparency (CSR reporting)

Safe and healthy working conditions

Human rights (child labour, forced labour, working hours)

Centre for the Promotion of Imports from developing countries | May 27, 2010


Why is csr important for smes in india

Why is CSR important for SMEs in India?

To Manage risks by integrating environmental and social performance with business strategy

To strengthen your license to operate in the local community due to a strong relationship with stakeholders and regulatory authorities

To access international markets

To improve access to funds and investors

To reduce costs:

  • savings of inputs,

  • increase in productivity

  • Improvement of supply chain and customer relations

Centre for the Promotion of Imports from developing countries | May 27, 2010


Why is csr important for smes in india1

Why is CSR important for SMEs in India?

To motivate your employees

To recruit high quality employees

To strengthen relations with other stakeholders in the supply chain

To ensure natural resources do not run out

To prevent pollution, health hazards

To create awareness (e.g. consumers)

To build a sustainable future (society and business)

Centre for the Promotion of Imports from developing countries | May 27, 2010


Current status and perceptions of csr in india

Current status and perceptions of CSR in India

Status

Economic reforms and rise have not yet lead to substantial changes in CSR approach

India adopted some aspects of global mainstream CSR, but mainly follows its own CSR agenda

Perceptions

CSR still has connotation of philanthropy

Strong feeling of ‘giving something back to society’

Centre for the Promotion of Imports from developing countries | May 27, 2010


Current status and perceptions of csr in india1

Current status and perceptions of CSR in India

More traditional sectors

Philanthropyembedded in India’s culture and enhances employee motivation

Focus onenvironmently-friendlyproducts, ratherthan focus on waste reduction, footprints, emissions

Training on the job: to overcomeIndia’spooreducation system and pooreducationallevels of the poor

‘New’ sectors (e.g. IT)

‘Going green’: focus onintegratedenvironmental management

More relaxed and open culture: first name identification, direct e-mails, performance drivenpackages

Centre for the Promotion of Imports from developing countries | May 27, 2010


Current status and perceptions of csr in india2

Current status and perceptions of CSR in India

50% of Indian companies consider CSR as part of sustainable business rather than philanthropy

An imbalance between internal and external CSR dimensions: the vast majority of Indian companies include external dimensions, only 20% include internal dimensions like working conditions and environmental practices

However, the vast majority of multinational companies consider CSR part of sustainable businessIncluding a better balance between internal and external CSR dimensions

Centre for the Promotion of Imports from developing countries | May 27, 2010


Current status and perceptions of csr in india3

Current status and perceptions of CSR in India

SMEs

SMEs lack structured approach and proper stakeholder dialogue to communicate their action and results on planned CR activities

Overall, SME’s tend to focus more on internal issues like labor issues, employee & family welfare, emissions reduction etc.

Fear of bureaucracy, time & cost are the main barriers to further engagement, but barriers tend to be built on perception rather than reality.

In present scenario there is a need for them to engage in whole umbrella of CR activities involving diverse stakeholder groups primarily Society, NGO’s, Government and Shareholders.

(source: Partners in Change)

Centre for the Promotion of Imports from developing countries | May 27, 2010


A survey among 82 indian companies on csr

A Survey among 82 Indian companies on CSR

Corporate initiatives with regard to CSR

Source entire research: http://timesfoundation.indiatimes.com/articlelist/articleshow/4592300.cms

Centre for the Promotion of Imports from developing countries | May 27, 2010


Challenges for csr initiatives in india

Challenges for CSR initiatives in India

Challenges from the research:

Lack of community participation in CSR activities

Need to build local capacities

Issues of transparency

Non-availability of well-organised non-governmental organisations

Visibility factor

Narrow perception towards CSR initiatives

Non-availability of clear CSR guidelines

Lack of consensus on implementing CSR issues

Centre for the Promotion of Imports from developing countries | May 27, 2010


Swot analysis csr in india

SWOT Analysis CSR in India

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Overview of samples in moradabad

Overview of Samples in Moradabad

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Moradabad cluster internal and external csr business case

Moradabad Cluster Internal and External CSR – Business Case

Centre for the Promotion of Imports from developing countries | June 2011


Moradabad cluster internal csr business case

Moradabad Cluster Internal CSR – Business Case

Centre for the Promotion of Imports from developing countries | June 2011


Moradabad cluster external csr business case

Moradabad Cluster External CSR – Business Case

Centre for the Promotion of Imports from developing countries | June 2011


Some indian companies

Some Indian Companies

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Csr in india

any

Centre for the Promotion of Imports from developing countries | June 2011


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