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Corporate Social Responsibility

The Human Resources Case

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What it CSR and how it has evolved

Why does CSR make sense for HR

CSR at Lafarge - The status today

CSR Going Forward : Opportunities in HR

Agenda

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Business Involvement With Communities

Merchant Charity

All merchant communities had traditions of giving

Types of works supported Dharamshalas, pathsahalas,

tree plantations, wells, tanks, marriages etc.

Corporate Philanthrophy : Golden Age 1857 - 1947

Industrialisation and amassing of

wealth

Govt. encouragement

Establishment of foundations.

Dynastic traditions in

philanthropy- Tatas, Birlas,

Mafatlals, Sriram etc.

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CSR

Why it Makes Business Sense

"Corporate social responsibility is a hard-edged

business decision. Not because it is a nice thingto do or because people are forcing us to do it...

because it is good for our business" - NiallFitzerald, Former CEO, Unilever

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What CSR Isnt

It isnt CHARITY

- Immediate distress relief to persons or communities

It isnt PHILANTHROPY

- Donations / EndowmentsIt isnt PROFIT SHARING

- Giving back to society

It isnt a COST OF DOING BUSINESS

It isnt a TOOL of building community relationships

It isnt a GENEROSITY in a good financial year

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What CSR Is :

Sustainable Business Principles

Is built into the business operations - a way of doing

business and not an add on activity

Its totally aligned to the strategic objectives of the

company

Has a long-term road map not an ad-hoc activity

Social Investment which creates tangible andmeasurable long-term shareholder value

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We Need CSR Because

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CSR at Lafarge

The Status Today

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CSR At Lafarge

2006-2008

EMPLOYABILITY HEALTH EDUCATION

MISCRURAL

INFRASTRUCTURE

Mason Training : 118

youths trained across three

locations

Drivers Training: 101

trained

Stitching classes: 209 girls

attended

OtherTrainings : 130 trained.

59500 patients

treated 13 villages

covered

17 specialized healthcamps reach out to

5638 patients

Computer Education

4922 students

covered through

computer literacy

programs.

Construction of school buildings

Construction of classrooms

School boundary walls

Construction of Community Halls

Hand Pumps

Construction of village

roads/playgrounds/ pond deepening

Drinking water supply throughtankers in summers

Plantation

Toilets for BPL Families

Community Toilets

Cremation Sheds/Sports

Events/Donations For Cultural

Events, Fairs & Festivals

An Omnibus Approach

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CSR : The Human Resources Perspective

Where do we differentiate from others

How do we differentiate from others

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Who Are Our Stakeholders

LIPL

?

VPs

Managers

Factory Contract

60

2000

2000

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Adopt Gender Budgeting as CSR Measure

Dr Girija Vyas

Male population should also be sensitised on

women issues for spreading gender equality

[New Delhi, 05 March 2009] Corporate housesshould adopt gender budgeting as a CSR

measure. Gender Budgeting provides a

mechanism wherein 30-40% of corporate or

ministerial budget is spent towards gendersensitization

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HR Becomes a Key Player in CSR

HR already plays an important role through

recruitment and learning, says Jim Maurer, apartner with Grant Thornton LLP in Chicago. And

that is only going to increase.

The new generation of recruits wants to be part

of a company that is socially responsible, and they

want the opportunity to take part in socially

responsible initiatives, he says. They expect

companies to be socially responsible and they

want to know what the company is doing in that

area.

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Corporate Responsibility Can Be Profitable

In June 2007, BusinessWeek National CSR Survey

The survey of 159 U.S. companies & 500 executives

75% + believe that corporate responsibility

initiatives can enhance profitability,

77 % expect corporate responsibility to have a

major impact on business strategies over the next

several years.

Moreover, 64 percent of these executives felt that HR

should take a leading role with social initiatives.

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19% of surveyed companies report having a single

person in charge of all their CSR programs.

68% say they expect environmental responsibilityreporting to be mandatory within the next five years

70% foresee increased government regulation forenvironmental responsibility in five years or less

62 percent believe that pressure to pursue CSR

programs will come chiefly from consumers (45percent) and investors (21 percent).

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64% believe that the HR department should takethe lead on social programs,

while 5% say operations should be in charge ofenvironmental initiatives

57% feel that finance should be responsible for

economic responsibility programs

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The 3 greatest benefits of enacting corporateresponsibility programs, executives said, were :

Improve public opinion.

Improve customer relations.

Help attract/retain talent.

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Customer-Driven CSR at Sun Microsystems

Marcy Scott Lynn, CSR program manager with SunMicrosystems in Santa Clara, Calif., notes that thecompanys customers have been demanding greaterCSR from Sun and their other vendors. Ourcustomers demand a higher level of accountabilitywith regard to social responsibility, she says.

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2020

Sun Microsystems

The company publishes its monthly energy useand related carbon dioxide emissions for its majorfacilities and communicates the energy requirementsof its various products.

The company electronically also publishes anAnnual CSR Report

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64%

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Some CSR Examples

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Project Shakti

To create income-generating capabilities for rural women

Providing a range of mass-market products to the SHGs,

which are relevant to rural customers

HUL provides on-the-job training in ensuring the stabilization

of the womens fledgling businesses.

Armed with micro-credit, women from SHGs become direct-

to-home distributors in rural markets

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E-Choupal Empowering Indian Farmers

e-Choupal No Next 5 Years

States Covered 10 15

Villages Covered 40000 100000

No. of e-Choupals 6500 20000

Farmers Empowered 4mill 10 million

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CSR programs aligned to corporate strategy are

not reckless, are not illogical and are not tree-

hugging. They minimize risk, maximizeopportunity and the world will reap the rewards.

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"Corporate social responsibility is a hard-edgedbusiness decision. Not because it is a nice thing

to do or because people are forcing us to do it...

because it is good for our business" - Niall

Fitzerald, Former CEO, Unilever

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End of Document

csr & hr

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