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Relationship Building in the context of Corporate Social Responsibility Iytha Mallikarjuna www.believeindia.org.in National Convention on CSR, Rambhau Mhalgi Prabodhini, Mumbai, 16 th Feb 2014

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There is a difference between a good company and a great company. A good company offers excellent products and services. A great company also offers excellent products and services but also strives to make the world a better place. William Clay Ford

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Corporate Social Responsibility

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CSR is a commitment to improve community well-being through discretionary business practices and contribution of corporate resources. Being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing more into human capital, the environment and the relations with stakeholders. 4 Corporate Social Responsibility

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Sustainability and Corporate Social Responsibility Being Sustainable & Socially Responsible means striking a balance, by adopting business strategies and activities that meet the needs of the enterprise and its stakeholders at present, while protecting, sustaining and enhancing human livelihood and the natural resources that will be needed in the future. Environmental and Social initiatives should aim towards Sustainability from the philanthropic concept of Corporate Social Responsibility 5

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Sustainability and Corporate Social Responsibility 6 Sustainability To meet the demand of the present generation without compromising the need of the future generation. -World Business Council on Sustainable Development Sustainability To meet the demand of the present generation without compromising the need of the future generation. -World Business Council on Sustainable Development Corporate Social responsibility It is about how companies manage the business resources to produce an overall positive impact on the society. Its the commitment by Business to behave ethically and contribute to the 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 -World Business Council on Sustainable Development Corporate Social responsibility It is about how companies manage the business resources to produce an overall positive impact on the society. Its the commitment by Business to behave ethically and contribute to the 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 -World Business Council on Sustainable Development

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Companies Act 7 Applicability Applicable for companies having a net worth of Rs. 500 Crores or Turn-over of Rs. 1,000 Crores. or net profit of Rs. 5 Crores. The Mandate is spending of at least 2% of the average net profit of the last 3 years, in CSR activities Requirements Constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, of which, at least one director shall be an independent director. Formulate and recommend to the Board, a Corporate Social Responsibility Policy Adopt, address and implement CSR activities across the defined activities in the Bill (Scheduled VII) Report Performance and Impact in the Directors Report (the same is also required as per SEBIs mandate) for all CSR activities taken by the companies The Impact Assessment Report would now be viewed by various stakeholders, across the Globe - it is therefore imperative that relevant key stakeholders be taken into confidence What needs to be done Carry out Perception/Satisfaction Index of impacted stakeholders to assess the degree As a Responsible Corporate Citizen across Environmental and Community Initiatives which can facilitate the company to get a wider visibility Assess Social/Economic Returns on Sustainable Investment to assess the degree of Impact on Livelihood and Sustainability of the Project Assess the attribution of multiple group Companies for investments made through a common platform

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8 SCHEDULE VII (See sections 135) (i) eradicating extreme hunger and poverty (ii) promotion of education (iii) promoting gender equality and empowering women (iv) reducing child mortlity and improving maternal health (v) combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases (vi) ensuring environmental sustainability (vii) employment enhancing vocational skills (viii) social business projects (ix) contribution to the Prime Minister's National Relief Fund (x) such other matters as may be prescribed Activities Eligible under CSR

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Idea of Relation Building VOLUNTEERS

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Volunteer for a Better India

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Idea of Relation Building FAIR TRADE

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Fair Trade is an alternative approach to conventional trade and is based on a partnership between producers and consumers. Fair Trade offers producers a better deal and improved terms of trade. This allows them the opportunity to improve their lives and plan for their future. Fair Trade offers consumers a powerful way to reduce poverty through their every day shopping. 12 What is Fair Trade?

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Fair Trade is a trading partnership based on dialogue, transparency and respect that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to and securing the rights of the marginalized producers and workers. It is a Global Movement led by all Fair Trade Organization across the globe 13 What is Fair Trade?

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Idea of Relation Building SOCIAL ENTERPRISES

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THEY ARE USING BUSINESS TO SOLVE A SOCIAL PROBLEM 15

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Social Enterprises Social enterprise harnesses the power of the marketplace to solve critical social or environmental problems Proliferation of social enterprises is a primary means of creating a more just and sustainable world 16

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Thank You