Corporate Social Responsibility

Flow• What is CSR?• Importance• Classification• CSR in India

Corporate Social Responsibility• What is Corporate social responsibility?

– Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare.

– An idea whereby companies integrate economical, social & environmental concern in their business operation.

• C+S+R– Corporate :-Organized Business– Social :-Dealing with people– Resp. :-Accountability between two

Dfinitions:- • “The Tata credo is that give back to the people what you have earned from them,

moreover for any business to sustain in the long run they have to look beyond business” Mr. Jamshetji Tata

• “Corporate social responsibility must not be defined by tax planning strategies alone. Rather it should be defined with in the framework of a corporate philosophy, which factors the need of the community and the region in which a corporate entitiy functions” Dr. MMS

Mere or bhi naam:-– Corporate Conscience– Corporate Citizenship– Social Performance– Sustainable Responsible Business

Legal Mandate

• 5 important elements under Sec-135 Schedule VII of companies act-– CSR Applicability– CSR committee– CSR Policy & Activity– CSR Expenditure– CSR Reporting

• Every companies with either of the following 3, during the financial year-– Net worth Rs. 500 cr or more– Turnover Rs. 1000 Cr or more– Net profit of Rs. 5 Cr or more

CSR PyramidPhilanthropic Res- Be a good

corporate citizen the contribute resource to the community

Ethical Res- Be ethical

Legal Res- Obey the rules

Economic Res- Be Profitable

Classification of CSR

ResponsibilityTowards itselfTowards shareholdersTowards consumers

CSR Stakeholders

• Government-• Legal, Information Disclosure & Environmental Protection

• Employees-• Safety, Health & Environmental

• Customers-• Quality Control & Customer satisfaction

• Shareholders-• Proactive communication & Information disclosure

• Suppliers-• Market information exchange

Importance of CSR• Responsibility recognized by the companies for acting the socially responsible manner.• Treat employee fairly and with respect & provide them respect• Respect human rights• Sustain the environment for next generation

Benefits of CSR

Benefits of CSR

Winning New Business

Enhanced relationship with stake holders

Happy workforce

Media Interest & reputation

Access to funding opportunities

Enhancing influence in the industries

Differentiating yourself from the competition

Saving Money on energy and operating cost

Increase the customer relation

CSR in India

• Education• Focus of nation building • Employment• Health care• Rural Development • Community Support• Socio-economic development• Research• Welfare Activities• Arts & Cultures

FMCG Brands-

• Dabur-• Sundesh:-providing education to children between 6-14 years

• P&G-• Shiksha:- helped more than 3.5 lacs underprivileged children access their right to education

• P&G-• Privartan:- The program has impacted over 2.5 Million girls across 1500 schools in india. Enable

them to adopt the right feminine hygiene practice to stay healthy and stay in school

Tata Group Comp

• Tata Steel- spends 5-7% of its profit after tax on several CSR activity– Social welfare organization– Healthcare projects– Economic Environment

• Tata Motors- – Pollution control– Restoring ecological balance

• Tata Tea:-– Tata Tea has been working hard since 1980 to fullfill the need of specially-abled people.

It has setup the Srishti welfare Centre in Munnar-Kerala.

Others:-

• Infosys-• Infosys promoted, in 1996, the Infosys foundation as a not for profit trust to which it contributes

up to 1% of the profit every year and spends on education, research and community development projects.

• ITC” e-choupal-• ITC is engaged in the elevating its partnership with the Indian farmer to the new paradigm by

leveraging information technology through its trial blazing “e-choupal” initiative. It is significantly widening its farmer partnerships embrace a host of value adding activities. Helping poor tribes to make their wasteland productive, investing in their rain water harvesting, empowring women, providing infrastructure support to make school for village children

Others:-

• L&T-• L&T promotes construction vocational training in India by establishing a Construction Skills

Training Institute at Manapakkam Chennai and many others part and provides free of cost basic training in framework, carpentry, plumbing etc…..

Thank you