CORPORATE CORPORATE SOCIAL SOCIAL

RESPONSIBILITYRESPONSIBILITY

GROUP MEMBERSGROUP MEMBERS MR. ASHAY RAULMR. ASHAY RAUL

MISS. EVA SAXENAMISS. EVA SAXENA

MR. NILESH KADAMMR. NILESH KADAM

MISS. SWATI SAHANEMISS. SWATI SAHANE

MR.VIVEK SHARMAMR.VIVEK SHARMA

CORPORATE SOCIAL RESPONSIBILITYCORPORATE SOCIAL RESPONSIBILITY

““Corporate Social Responsibility is the continuing Corporate Social Responsibility is the continuing commitment by business to behave ethically and commitment by business to behave ethically and contribute to economic development while improving contribute to economic development while improving the quality of life of the workforce and their families the quality of life of the workforce and their families as well as of the local community and society at as well as of the local community and society at large”. large”. - -World Business Council for World Business Council for

sustained Developmentsustained Development

IMPLICATIONS OF CSRIMPLICATIONS OF CSR

Organizations consider the interests of society Organizations consider the interests of society by taking responsibility for the impact of their by taking responsibility for the impact of their activities on- activities on-

Customers, Customers, Suppliers, Suppliers, Employees, Employees, Shareholders, Shareholders, Communities,Communities, Stakeholders, Stakeholders, As well as the environment. As well as the environment.

CSR is about how companies manage the CSR is about how companies manage the business processes to produce an overall business processes to produce an overall positive impact on societypositive impact on society..

CSR AT ADITYA BIRLA GROUPCSR AT ADITYA BIRLA GROUP

"To actively contribute to the social and economic "To actively contribute to the social and economic development of the communities in which we operate and development of the communities in which we operate and building a better, sustainable way of life for the weaker building a better, sustainable way of life for the weaker sections of society to raise the country's human sections of society to raise the country's human development index."development index."

CSR atCSR at

Protecting our environment.Protecting our environment. Selling nutritious products and advocating healthy lifestyles.Selling nutritious products and advocating healthy lifestyles. Acting with integrity and adhering to the highest ethical Acting with integrity and adhering to the highest ethical

standards.standards. Promoting diversity in our work force and partnering with Promoting diversity in our work force and partnering with

diverse suppliers.diverse suppliers. Ensuring a safe, healthy workplace.Ensuring a safe, healthy workplace.

DEVELOPMENTDEVELOPMENT Business ethics is one of forms of the art of applied Business ethics is one of forms of the art of applied

ethics that examines ethical principles and moral or ethics that examines ethical principles and moral or ethical problems that can arise in a business ethical problems that can arise in a business environment.environment.

In the increasingly conscience-focused marketplaces In the increasingly conscience-focused marketplaces of the 21st century, the demand for more ethical of the 21st century, the demand for more ethical business processes and actions (known as ethicism) is business processes and actions (known as ethicism) is increasing. increasing.

Simultaneously, pressure is applied on industry to Simultaneously, pressure is applied on industry to improve business ethics through new public improve business ethics through new public initiatives and laws. initiatives and laws.

DRIVERSDRIVERS

Ethical ConsumerismEthical Consumerism :: Consumers are becoming more aware of the Consumers are becoming more aware of the

environmental and social implications of their day-to-environmental and social implications of their day-to-day consumer decisions and are beginning to make day consumer decisions and are beginning to make purchasing decisions related to their environmental purchasing decisions related to their environmental and ethical concerns. and ethical concerns.

DRIVERSDRIVERS

Globalization and Market Forces Globalization and Market Forces :: Companies use CSR methodologies to gain public Companies use CSR methodologies to gain public

support for their presence in global markets, helping support for their presence in global markets, helping them in competitive advantage and advertising . them in competitive advantage and advertising . Global competition places particular pressure on Global competition places particular pressure on multinational corporations to examine not only their multinational corporations to examine not only their own labour practices, but those of their entire supply own labour practices, but those of their entire supply chain, from a CSR perspective .chain, from a CSR perspective .

DRIVERSDRIVERS Social Awareness And EducationSocial Awareness And Education ::

Shareholders and investors themselves, Shareholders and investors themselves, through socially responsible investing are through socially responsible investing are exerting pressure on corporations to behave exerting pressure on corporations to behave responsibly. Through education and dialogue, responsibly. Through education and dialogue, the development of community in holding the development of community in holding businesses responsible for their actions is businesses responsible for their actions is growing .growing .

DRIVERSDRIVERS

Ethics TrainingEthics Training ::

The aim of such training is to help The aim of such training is to help employees make ethical decisions when the employees make ethical decisions when the answers are unclear. It can add visibility to answers are unclear. It can add visibility to their CSR policies and activities by well-their CSR policies and activities by well-grounded training programs . grounded training programs .

DRIVERSDRIVERS

Laws And RegulationLaws And Regulation ::

Another driver of CSR is the role of independent Another driver of CSR is the role of independent mediators, particularly the government, in ensuring mediators, particularly the government, in ensuring that corporations are prevented from harming the that corporations are prevented from harming the broader social good, including people and the broader social good, including people and the environment. Governments should set the agenda for environment. Governments should set the agenda for social responsibility by the way of laws and social responsibility by the way of laws and regulation that will allow a business to conduct regulation that will allow a business to conduct themselves responsibly.themselves responsibly.

DRIVERSDRIVERS

Crises And Their ConsequencesCrises And Their Consequences ::

Often it takes a crisis to precipitate attention to CSR. Often it takes a crisis to precipitate attention to CSR. It is One of the most active stands against It is One of the most active stands against environmental management. environmental management.

ExamplesExamples MattelMattel Magellan MetalsMagellan Metals

SOCIAL ACCOUNTING, SOCIAL ACCOUNTING, AUDITING AND REPORTING AUDITING AND REPORTING

Social accounting is the process of Social accounting is the process of communicating the social and environmental communicating the social and environmental effects of organization’s economic actions to effects of organization’s economic actions to particular interest groups within society and to particular interest groups within society and to society at large. society at large.

It challenges conventional accounting, in It challenges conventional accounting, in particular financial accounting, for giving a particular financial accounting, for giving a narrow image of the interaction between narrow image of the interaction between society and organizations. society and organizations.

GUIDELINESGUIDELINES

Account Ability's AA1000Account Ability's AA1000 Good Corporation's StandardGood Corporation's Standard ISO 14000 environmental management ISO 14000 environmental management

standard standard United Nations Global CompactUnited Nations Global Compact United Nations Intergovernmental Working United Nations Intergovernmental Working

Group of Experts on International Standards of Group of Experts on International Standards of Accounting and Reporting (ISAR)Accounting and Reporting (ISAR)

FTSE4GOOD INDEXFTSE4GOOD INDEX

The FTSE4Good Index Series has been The FTSE4Good Index Series has been designed to measure the performance of designed to measure the performance of companies that meet globally recognized companies that meet globally recognized corporate responsibility standards, and to corporate responsibility standards, and to facilitate investment in those companies.facilitate investment in those companies.

Transparent management and criteria Transparent management and criteria alongside the FTSE brand make FTSE4Good alongside the FTSE brand make FTSE4Good the index of choice for the creation of the index of choice for the creation of Responsible Investment products. Responsible Investment products.

Cont…Cont…

FTSE4Good can be used in four main ways- FTSE4Good can be used in four main ways-

Investment Investment

ResearchResearch

ReferenceReference

BenchmarkingBenchmarking

CSR AND THE NATURE OF CSR AND THE NATURE OF BUSINESSBUSINESS

Corporations exist to provide products and/or Corporations exist to provide products and/or services that produce profits for their shareholders.services that produce profits for their shareholders.

Milton Friedman and others take this a step further, Milton Friedman and others take this a step further, arguing that a corporation's purpose is to maximize arguing that a corporation's purpose is to maximize returns to its shareholders, and that since only returns to its shareholders, and that since only people can have social responsibilities, corporations people can have social responsibilities, corporations are only responsible to their shareholders and not to are only responsible to their shareholders and not to society as a whole.society as a whole.

Cont…Cont… Eg. - The REAL leadership Alliance asserts that Eg. - The REAL leadership Alliance asserts that

the business of leadership (be it corporate or the business of leadership (be it corporate or otherwise) is to change the world for the better. otherwise) is to change the world for the better. Many religious and cultural traditions hold that the Many religious and cultural traditions hold that the economy exists to serve human beings, so all economy exists to serve human beings, so all economic entities have an obligation to society economic entities have an obligation to society (e.g., cf. Economic Justice for All). (e.g., cf. Economic Justice for All).

Many CSR proponents point out that CSR can Many CSR proponents point out that CSR can significantly improve long-term corporate significantly improve long-term corporate profitability because it reduces risks and profitability because it reduces risks and inefficiencies while offering a host of potential inefficiencies while offering a host of potential benefits such as enhanced brand reputation and benefits such as enhanced brand reputation and employee engagementemployee engagement

CSR AND QUESTIONABLE CSR AND QUESTIONABLE MOTIVESMOTIVES

Some critics believe that CSR programs are Some critics believe that CSR programs are undertaken by companies such as British undertaken by companies such as British American Tobacco (BAT), the petroleum giant American Tobacco (BAT), the petroleum giant BP and McDonald's to distract the public from BP and McDonald's to distract the public from ethical questions posed by their core ethical questions posed by their core operations.operations.

Another concern is when companies claim to Another concern is when companies claim to promote CSR and be committed to Sustainable promote CSR and be committed to Sustainable Development whilst simultaneously engaging Development whilst simultaneously engaging in harmful business practices. in harmful business practices.

Cont…Cont…

For example, since the 1970s, the McDonald's For example, since the 1970s, the McDonald's Corporation's association with Ronald Corporation's association with Ronald McDonald House has been viewed as CSR and McDonald House has been viewed as CSR and relationship marketing.relationship marketing.

INDIAN OIL CORPORATION

LTD.

INTRODUCTIONINTRODUCTION It is currently It is currently India's largest company by sales India's largest company by sales

with a turnover of US $59.22 billion, and profit with a turnover of US $59.22 billion, and profit of US $ 1.67 billion for fiscal year 2007.of US $ 1.67 billion for fiscal year 2007.

It is the highest ranked Indian company in the It is the highest ranked Indian company in the prestigiousprestigious Fortune ‘Global 500’ listing, having Fortune ‘Global 500’ listing, having moved up 19 places to 116th in 2008.moved up 19 places to 116th in 2008.

It is It is 18th largest petroleum company in the world18th largest petroleum company in the world

COMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT PROGRAMMESPROGRAMMES

They concentrate on clean drinking water in remote areas They concentrate on clean drinking water in remote areas of India. of India.

They run child and maternity health centers They run child and maternity health centers in the in the neighbourhood of there areas of operation to promote neighbourhood of there areas of operation to promote and improve the health of communities .and improve the health of communities .

Providing physical assets like equipment and ambulances Providing physical assets like equipment and ambulances to hospitals and medical research centres for benefit of to hospitals and medical research centres for benefit of community.community.

Cont…Cont…• For instance, they had donated Rs. 50 lakh in 2003 for For instance, they had donated Rs. 50 lakh in 2003 for

setting up a Refractive Surgery Centre at Sankara setting up a Refractive Surgery Centre at Sankara Nethralaya, a eye hospital & research centre at Nethralaya, a eye hospital & research centre at Chennai.Chennai.

• In the area of education, they contribute in In the area of education, they contribute in constructing school buildings and libraries, and constructing school buildings and libraries, and provision of furniture, books, uniforms, lab provision of furniture, books, uniforms, lab equipment, etc.equipment, etc.

• They provide scholarship to poor and needy students They provide scholarship to poor and needy students

Cont…Cont…

They also offers sports scholarships for They also offers sports scholarships for upcoming junior players.upcoming junior players.

They provide employment to national and They provide employment to national and international level sportspersons.international level sportspersons.

SHARING PROFITSSHARING PROFITS• They set aside a fixed amount of its profit for smiles They set aside a fixed amount of its profit for smiles

in millions of lives across the country through a in millions of lives across the country through a community development funds.community development funds. One-fourth of the One-fourth of the community development funds are spent on the community development funds are spent on the welfare of Scheduled Caste and Scheduled Tribe welfare of Scheduled Caste and Scheduled Tribe beneficiaries.beneficiaries.

• IndianOil has always been in the forefront in times of IndianOil has always been in the forefront in times of national emergencies.national emergencies.

• They have also unveiled kisan seva kendras as small-They have also unveiled kisan seva kendras as small-format retail outlets to reach quality products and format retail outlets to reach quality products and services to people in the rural areas.services to people in the rural areas.

Cont…Cont…

Indian Oil has also set up the Indian Oil Indian Oil has also set up the Indian Oil Foundation (IOF) as a non-profit trust to protect, Foundation (IOF) as a non-profit trust to protect, preserve and promote national heritage preserve and promote national heritage monuments.monuments.

As part of its environment-protection initiatives, As part of its environment-protection initiatives, Indian Oil has invested close to Rs. 7,000 crore at Indian Oil has invested close to Rs. 7,000 crore at its refineries for production of green fuels its refineries for production of green fuels meeting global standards.meeting global standards.

MEETING SOCIAL MEETING SOCIAL OBLIGATIONSOBLIGATIONS

Categories % reserved

Scheduled Caste/Scheduled Tribes 25

Defence Personnel 8

Freedom Fighters 2

Outstanding Sports Persons 2

Paramilitary/Police/Government Personnel

8

Physically Handicapped 5

Open Category 50

Percentage of dealerships/LPG distributorships reserved under various social objectives categories:

PROMOTING ART & CULTUREPROMOTING ART & CULTURE

IndianOil organises the prestigiousIndianOil organises the prestigious Akhil Akhil Bharatiya Kavi Sammelan Bharatiya Kavi Sammelan every year.every year.

Indian Oil Art Exhibition at the Marketing HO in Indian Oil Art Exhibition at the Marketing HO in Mumbai. Mainly to encourage budding talent.Mumbai. Mainly to encourage budding talent.

Cont…Cont… IndianOil hosts musical concerts under the banner IndianOil hosts musical concerts under the banner

of of Indian Oil Sangeet SabhaIndian Oil Sangeet Sabha from time to time from time to time round the year in metros and other citiesround the year in metros and other cities

Indian Oil is part of the movement to preserve and Indian Oil is part of the movement to preserve and enrich the cultural mosaic of our everyday lives.enrich the cultural mosaic of our everyday lives.

TATA INTERNATIONALTATA INTERNATIONAL

Tata International is a member of the Tata Group Tata International is a member of the Tata Group which is established in 1962.which is established in 1962.

It's business lines include leather, engineering and It's business lines include leather, engineering and pharmaceutical products.pharmaceutical products.

Tata International has evolved from an export Tata International has evolved from an export house into an international business company with house into an international business company with a global turnover of US$ 850 million a global turnover of US$ 850 million

CORPORATE CITIZENSHIP CORPORATE CITIZENSHIP

• Community development and social Community development and social responsibilities are incorporated into the responsibilities are incorporated into the company's Articles of Association.company's Articles of Association.

• Tata Code of Conduct document that every Tata Code of Conduct document that every Tata International employee signs. Tata International employee signs.

• Tata International is a signatory to the UN Tata International is a signatory to the UN Global Compact.Global Compact.

DEVELOPMENT ACTIVITIESDEVELOPMENT ACTIVITIES• Co-operatives to generate leather industry-related Co-operatives to generate leather industry-related

employment for women at Indore and Mhow. employment for women at Indore and Mhow. • Maintenance of a public children's park in Dewas Maintenance of a public children's park in Dewas

town. town. • Public library in Dewas supervised by workers as Public library in Dewas supervised by workers as

a volunteer activity. a volunteer activity. • Marketing consultancy and computer classes for Marketing consultancy and computer classes for

NGOs as a volunteer activity. NGOs as a volunteer activity. • Tata Public School in Dewas. Tata Public School in Dewas.

Cont…Cont…• Provides training to women in the manufacture of Provides training to women in the manufacture of

leather articles at a Vocational Training Centre, the leather articles at a Vocational Training Centre, the Leather & Jute Training Centre at Indore, in Leather & Jute Training Centre at Indore, in collaboration with the Madhya Pradesh Handicraft collaboration with the Madhya Pradesh Handicraft Development Board (Hasta Shilp Vikas Nigam). Development Board (Hasta Shilp Vikas Nigam).

• Donation of finished leather to a leprosy hospital Donation of finished leather to a leprosy hospital every year for making shoes for patients. every year for making shoes for patients.

• Member of the Tata Council for Community Member of the Tata Council for Community Initiatives and participates in regional programmes. Initiatives and participates in regional programmes.

ENVIRONMENT PROTECTION

200 000 trees planted at Dewas.

Reverse Osmosis plant for liquid

waste

Biomethanation pilot plant R&D Projects

Sophisticated effluent treatment plant at the

leather factory

ENERGY CONSERVATION

ONE OF INDIA'S LARGEST SOLAR THERMAL WATER HEATING SYSTEMS

AT THE LEATHER FACTORY.

FINANCIAL ASSISTANCE

EDUCATIONENVIRONMENTAL CONSCIOUSNESS

HEALTHCARE

MEDICAL RESEARCH

SOCIAL WELFARE

TATA INTERNATIONAL