INTRODUCTION
Corporate social responsibility is the continuing commitment by business to achieve commercial success in ways that honor ethical values, address legal issues and contribute to economic development while improving the quality of the workforce and their families as well as the local community and society at large. Indeed, the idea of social responsibility is not new to this age; rather it has been around as long as businesses have existed. Sometimes it comes in the shape of caring owners who provided housing, paid the workers who are off due to sickness or otherwise in form of attempts made to provide ease and comfort to the employees lot. lthough many such voluntary social measures have become legal requirements, a number of business leaders have gone further ahead by utili!ing their wealth to improve the living conditions of many people in the society. Simultaneously, a shift is already occurring from traditional philanthropy to wholesome community development among the more progressive of the companies. "inancial System is the most important institutional and functional vehicle for economic transformation of any country. #anking sector is reckoned as a hub and barometer of the financial system. s a pillar of the economy, this sector plays a predominant role in the economic development of the country. $hus the banking sector has been playing a significant role as growth facilitator. In recent years corporate social responsibility has become an important issue at global level. $he concept of corporate social responsibility recogni!es as commitment of an organi!ation to operate in a socially responsible manner. It takes into consideration the social and environmental implications of corporate financial decisions. It is also associated with corporate governance and ethical business procedure. Experts have defined CSR as ‘A concept whereby a copany ind!"#es in contin!o!s$ responsib"e activities that point to its #ood intentions as a corporate citi%en&
renowned social responsibility analyst in the %&, 'alin #aker states that CS( is about how companies manage the business processes to produce an overall positive effect on society )$he *orld business counsel for sustainable development+ notes that CS( is the continuing commitment by business to behave ethically and contribute to 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.
Definitions
ct means the Companies ct, -/0 Corporate Social (esponsibility 1CS(2 means and includes but is not limited to a2 3ro4ects or programmes relating to activities specified in Schedule 5II to the ct or b2 3ro4ects or programs relating to activities undertaken by the board of directors of a Company in pursuance of recommendations of the CS( Committee of the #oard as per declared CS( policy of the company sub4ect to the condition that such policy will cover sub4ects enumerated in Schedule 5II of the ct.
CS( Committee means the Corporate Social (esponsibility Committee of the #oard referred to in section /06 of the ct. CS( 3olicy relates to the CS( outlook of the Company and the activities to be undertaken by the company as specified in Schedule 5II to the ct and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of a company. 7et profit means the net profit of a company as per its financial statement prepared in accordance with the applicable provisions of the ct, but shall not include the following, namely89 a2 any profit arising from any overseas branch or branches of the com pany, whether operated as a separate company or otherwise; and b2 any dividend received from other companies in India, which are covered under and complying with the provisions of section /06 of the ct8
3rovided that net profit in respect of a financial year for which the relevant financial statements were prepared in accordance with the provisions of the Companies ct, /:6, 1/ of /:62 shall not be required to be re9calculated in accordance with the provisions of the ct.
NEED 'OR CSR
CS( is a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. It is represented by the contributions undertaken by companies to society through its business activities and its social investment. CS( has been making an increasingly prominent impact in the Indian social system by supplementing development pro4ects. #ut it is not a novel concept in India as its historical roots goes till the 5edic age. $oday Insurance Sector growing larger and powerful than before. 5arious 7on9government organi!ations put pressure on them to act responsibly towards their stakeholde rs. $hus pressure has given rise to the concept named Corporate Social (esponsibility. CS( defined as
xactly what responsibility companies have towards society has been discussed for some decades now. fundamental model which could be argued to reflect the outcome of this discussion is Carroll s 1/::/2 four9part model in figure ? /. ‟
CS( is now an integral part of functioning of an organisation. $he performance of an organisation should be 4udged beyond the financial parameters. $he authorities need not only focus on the financial performance but to examine into the CS( performance of the organisation.
Econoic responsibi"ities8 $he first responsibility of the company towards society refers to running the business as an economically healthy unit. It includes aspects such as return on investment for shareholders, fair employee salaries, and quality products supplied to customers at fair prices; all required by the society. 1Crane @'atten, -A2
(e#a" responsibi"ities8 Bemands that companies act in accordance with existing legislation and regulatory requirements. $he legal framework consequentially fosters society+s ethical view and all companies attempting to be socially responsible are therefore required by society to follow the law. 1Crane @'atten, -A2
Ethica" responsibi"ities8 It refers to corporation+s responsibilities which are not covered by legal or economical requirements, but instead by what could be considered as right or fair in the eyes of society. Society therefore expects corporations to act ethically towards their stakeholders. 1Crane @ 'atten, -A2
)hi"anthropic responsibi"ities8 $his involves corporations willingness to enhance the quality of living for their stakeholders 1i.e. employees, local community, and society at large2 through charitable donations and organi!ational support. $hese corporate decisions are entirely voluntary, of less importance than the former three, and 1with regards to social responsibility2 only seen as desired by society. 1Crane @ 'atten, -A2.
CSR Nors in India $he government on $hursday, -D
th
"eb -/A notified the much9awaited provisions mandating
companies to plough back at least - per cent of their net profit on upliftment of the society. $he ministry of corporate affairs 1'C2 has notified Section /06 and Schedule 5II of the Companies ct, -/0, which relate to corporate social responsibility 1CS(2 that will be effective from pril /, as part of the new Companies ct. $he norms will apply to companies with at least (s 6crore net profit or (s /,crore turnover or (s 6crore net worth. $hese companies will have to spend - per cent of their three9year average annual net profit on CS( activities in each financial year, starting from "E/6. <$he rules have been finalised after extensive consultations with all stakeholders and provide for the manner in which CS( committee shall formula te and monitor the CS( policy, manner of undertaking CS( activities, role of the board of directors therein and format of disclosure of such activities in the board+s report,= said an official statement by Sachin 3ilot, minister of corporate affairs. ccording to the norms, the CS( activities will have to be within India, but will apply to foreign companies registered in the country. $he ministry, which has also listed out permissible activities, said companies will need to take approval from their board for CS( activities in accordance with its CS( policy and the decision of its CS( committee. *hile activities such as donating funds to political parties or spends to benefit own employees and their families will not be counted as a company+s CS(, the government said that activities such as promoting preventive health care and sanitation, setting up homes and hostels for women and orphans and livelihood enhancement pro4ects would qualify. $o decide if a company is eligible for mandatory CS( spending, its profit from overseas branches and dividend received from other companies in India will be excluded from the net profit criteria. company can also carry out CS( works through a registered trust or society or a separate company, but they can only spend up to 6 per cent of total CS( expenditure on manpower in a single financial year. $his would be applicable for own personnel as well as those of their implementing agencies. $he ministry had, late last year, issued draft rules for CS( activities by India Inc and had sought public comments. *elcoming the final norms, experts said that companies will now have to gear up to implement their CS( programmes under the final rules that will be effective in 4ust a month.
CSR )o"icy re*!ireents asper the Copanies Act$ and notified R!"es
It may be noted that the term
a2 < list of CS( pro4ects or programs which a company plans to undertake falli ng within the purview of Schedule 5II of the ct, specifying modalities of execution of such pro4ects and programs and implementation schedules for the same; and
b2 'onitoring process for such programs provided that the CS( activities shall not include the activities undertaken in pursuance of normal course of business of the company. $he surplus arising out of CS( pro4ects or programs or activities shall not for a part of the business profits of a company.=
+a,or Areas for CSR "ollowing are the ma4or areas the banks need to focus on for acting as socially responsible89
CSR AND )RO-ECT 'INANCE./Gow to balance the risk and interest of the various
participating parties including protecting the interest of those who are directly or indirectly affected9 specifically the local community that reside within or close to the area impacted by the pro4ect. $his means that before funding a particular pro4ect they should analy!e the pro4ect to assess the social and environmental harm that can be caused by its activities. $hey should also verify the credit worthiness of the borrower so that the stake holders are protected.
CO++UNIT0 IN1O(+ENT./ $his includes sponsorship of young entrepreneurs,
giving academic scholarships, taking part in re9cycling and waste management, health support programs, financial support for art and culture, supporting 7Hs engaged in drug9prevention measures for the youth etc.
A2ARENESS AND TRANS)ARENC0./ Bedicating sections of annual reports to
CS( matters, publishing sustainability reports on CS( and web9based information
EN1IORN+ENT./ #y limiting the consumption of energy and paper, ensuring good
waste management and encouraging the clients to adopt low9carbon emission practices
CSR/Core Thr!st Areas
$he insurance sector brings a number of positive contributions to society8 by its very existence, the insurance mechanism is beneficial in many respects, and most companies are concerned with risk reduction and prevention. 'oreover, insurance companies increasingly tend to be concerned with responsibility issues. In this, they follow the example of a number of multinationals worldwide, which have now become familiar with the notions of sustainable development, corporate social responsibility, or triple bottom line. ver the past few years, a group of pioneering insurance companies such as JIC, S%7 Jife Insurance, #a4a4 Jife Insurance, 'K Jife Insurance, >KIB>, H", llian!, viva, K, the Co9operative Insurance Society, "riends 3rovident, I7H Hroup, the Insurance ustralia Hroup, Jloyds $S#, 3rudential, the (oyal #ank of Scotland Hroup, Storebrand and Swiss (e, has developed new policies in order to address mounting challenges in important areas. $hey have undertaken community involvement programs; they strive to integrate the environmental concern, both internally and externally; and they also show a growing interest for socially responsible investment. #esides, the insurance industry generates indirect positive effects on the functioning of the economic system8 firstly, because it tackles the factors of insecurity which would otherwise lead agents to adopt a more cautious behavior; secondly, because it reduces the number of legal actions that would otherwise take place; and thirdly, because it alleviates the need for regulation in a vast number of areas.
Gowever, on closer inspection, it appears that the image of the insurance industry in the public opinion is not so good. In reality, it appears to be blurred, if not squarely bad. number of reasons account for this negative perception8 the opacity of the insurance business with its misrepresentation and mis9selling practices, the dissatisfaction about the insurance agentsL reward system, the problems associated with the respect of customersL privacy, and the dilemmas related to the consequences of outsourcing decisions, count among the ma4or determinants of the bad image conveyed by the industry. 'oreover, its reputation has been further tarnished by corporate scandals such as the recent IH affair, where the C> had institutionali!ed wrongdoings in his company for decades.
Advanta#es of CSR It is becoming increasingly important for companies to be good corporate citi!ens. Society has started to demand it. Consumers believe that increasing the transparency of business practices, and demonstrating positive social and environmental impacts are the two most effective actions companies can take to improve public trust in the private sector, according to the quitable Jife scandal in Hreat #ritain caused thousands of policyholders who invested in annuities to lose billions. nd in ustralia, there was the collapse of GIG Insurance, a failure caused by underpricing, reserve problems, false reports, reckless management, incompetence, fraud and greed. #y the end of Mune -0, the government9funded GIG Claims Support Scheme had paid out close to %N-A6 million in claims.
Cases like these have left the impression that unethical behavior is characteristic of the industry. %nfavorable media coverage has shaken stakeholder confidence and raised suspicion. $he insurance industry+s reputation suffered a setback from the global financial crisis. lthough most insurers were relatively unscathed compared to the banking sector, some leading insurers, such as IH, "ortis 1a #elgian insurance group2 and rgenta 1a Jloyd+s of Jondon syndicat e2, were let down by their non9insurance operations. Bespite the performance of the industry on the whole, trust in insurers deteriorated. $he increased occurrence of natural disasters has also presented a social challenge for insurers. ustralia is highly exposed to natural disasters, and following the Oueensland floods in -/ and -//, public leaders asked insurers to extend their compassion to victims. #ut with numerous insurers not offering flood coverage, many policyholders were forced to turn to the government for assistance when their policies did not respond. Buring a crisis, an insurer needs to demonstrate that it is more than 4ust a profit9generating, abstract entity. It is important for insurers to emphasi!e the vital role they play in economic and societal development. CS( measures implemented in good timesPand in badPwill improve the industry+s reputation and reinforce stakeholder relationships. $hese two outcomes, in turn, can increase loyalty, sales and resilience. Steps to chieving Corporate Social (esponsibility *hen formulating CS( best practices, insurers should consider customers, employees, shareholders, intermediaries, suppliers, regulators and the broader community. $he interests of these stakeholders are vast, and insurers should focus on those that are affected by, or align with, their business operations. $here are many potential benefits. Insurers can earn a superior reputation in the market. $hey can increase engagement and loyalty among staff while reducing turnover rates. CS( can also increase long9term sustainability and profitability by shaping the market+s competitive environment and the community as a whole. %ltimately, it will result in insurers becoming more attractive to investors, who are increasingly concerned about CS( and corporate governance.
34 )ayin# 1a"id C"ais Efficient"y
3aying valid claims efficiently sounds simple, but it involves more than the obvious. Gaving the right technology is essential, as is staff training. Insurers also need to price risks accurately and fairly. If risks are continually underpriced, an insurer will go out of business, which will have wide9ranging effects on all stakeholders 1as demonstrated by the GIG collapse2. n the other hand, if risks are overpriced, customers may not be able to afford adequate coveragePand may choose not to insure at all. If most businesses and individuals choose to bear the risk of a loss that they cannot afford to cover, this will have real implications for the economy, as well as individuals+ health and safety. It would also place an unbearable burden on the government to serve as a safety net. $o pay valid claims efficiently, insurers must also keep down costs. 3remiums are calculated by account for both the particular risks and operating costs required to provide the policy. It is therefore important to minimi!e overhead, infrastructure and claims9processing costs so that insurers can offer affordable insurance. $here is, however, a fine line between insurers being adequately resourced and providing appropriately priced insurance and insurers being under resourced, leading to cheaper insurancePbut poor service, long delays and higher claims costs. 54 Ris6 +inii%ation7(oss Contro"
'oney can never entirely repair damage. $herefore, calculating the probability of loss and its likely costs is not, by itself, good practice. Insurers are in the business of risk analysis. $hey are the ones best positioned to minimi!e risksPboth internally in their operations and externally for their clients and other stakeholders. Internal risk minimi!ation could be as simple as implementing proper policies and procedures, such as occupational health and safety guidelines. >xternal risk minimi!ation may be more difficult to employ. Insurers should, however, attempt to do so in any circumstances over which they have some control. ppropriate strategic CS( measures used to reduce risk externally will depend on the type of products offered by an insurer. In general, insurers should train underwriters to look more closely at clients+ internal decision9making processes, risk management procedures and ethics.
%nderwriting for large, risky pro4ects or companies should entail in9depth research on the likely sources of risk as well as more extensive screening and monitoring. "urther, insurers should be proactive in stipulating limits or requirements around insurance for pro4ects that may impact human rights. ne example is insurance policies for pipeline pro4ects in countries where the exploitation of natural resources has fueled corruption, social unrest, conflict and abuses. >xternal risk minimi!ation should reduce claims costs and frequency for clients, and insureds will thus be incentivi!ed to reduce the likelihood and severity of loss in order to lower their premiums. Insurers should, and often do, consider offering discounted premiums to insureds that take preventative measures. "or example, discounts are offered to households that install security systems, young drivers who take safety courses and life insureds who do not smoke. 84 C"iate Chan#e (eadership
"or insurers, a big part of risk minimi!ation involves the environment, as insurers have an inherent interest in ensuring their clients are equipped to deal with natural disasters and the effects of climate change. $he %nited 7ations >nvironmental 3rogram "inance Initiative is a collaborative effort of more than - companies in the financial services sector to uropean company, became the first insurer to
innovative social and commercial pro4ects to offset carbon emissions. "or example, the company is supporting a *orld "ood rgani!ation pro4ect in sub9Saharan frica to slow deforestation that replaces open fires with energy9efficient stoves. Some insurers are also helping customers reduce their energy consumption. "or example if customers+ homes are DQ damaged by a weather9related event, Suncorp and HI offer them up to %N-,6 to pay for rainwater storage or solar power. $hey also have a policy of providing replacement household products that have a minimum three9star energy9efficiency rating. 94 Strate#ic )hi"anthropy
Strategic philanthropy involves partnering with charities or organi!ations in the community for a mutually beneficial purpose. $his type of corporate giving can not only impact the community but also other stakeholders in the business. "or instance, O#> has set up a foundation that aims to drive employee engagement. $hrough the program, employees are able to apply for local grants for charities that they personally support. >mployees can also get involved in the community through paid volunteer leave, and the foundation has promised to match employees+ charitable contributions and fundraising efforts. nother form of philanthropy relevant for insurers is disaster relief. "ollowing the recent Oueensland floods, for example, Suncorp donated %N/, to the Oueensland premier+s
'ission ustralia initiated such a program to deter young people from South 3acific Island backgrounds from committing criminal behavior in Sydney+s southwest, an area known for its high number of insurance claims relating to theft. Independent analysis demonstrated that the program reduced crime rates amongst participants, and 6Q of participants had not reoffended in the /- months following completion of the program. IH has done something similar. $he company focused its strategic philanthropy on a partnership with St. Mohn mbulance to help stakeholders improve their safety and reduce in4uries. :4 Reco#nition for ;!an Ri#hts
Studies show that few companies have taken steps to implement human rights policies. Such mechanisms are often overlooked by companies that either do not see their importancePbecause they consider the protections afforded in the countries in which they operate to be sufficientPor specifically want to take advantage of the lack of protections provided by these countries. Companies that show enthusiasm for observing voluntary human rights codes of conduct usually operate in a business with the potential to considerably impact human rights; the ma4ority of their work may be done in developing countries, for example. $hese companies also tend to have high9profile brand names that they wish to protect, and for that reason they can be more easily pressured into action by civil society. $he insurance industry doesn+t meet this classification, but human rights are still an important consideration because insurance permeates many facets of everyday life. It is particularly relevant for corporations operating globally or those that may be considering outsourcing 1or moving2 services to countries with lesser human rights protections. 'any organi!ations have created initiatives to encourage companies to respect human rights and hold corporations liable for violations. ne of the most notable is the <%.7. Huiding 3rinciples on #usiness and Guman (ights,= developed by Garvard professor Mohn (uggie and endorsed by the %nited 7ations in Mune -//.
$hese principles provide a useful reference for insurers. (uggie explains that ngaging in voluntary measures that afford some protection from human rights abuses now will help to diminish the demand for increased regulation in this area in the future. <4 Socia""y Responsib"e Investent
Socially responsible investment describes the process of including non9financial criteria P environmental, social and governance considerationsPin decision making. Institutional investors, such as insurers, are in a powerful position in that they are able to encourage positive change in investment strategies. $raditionally, institutional investors have affected the market by investigating how investment firm boards manage risk, analy!ing reporting methods and occasionally recommending corporate governance changes. *ith issues such as global warming, child labor and other human rights violations becoming more prominent in investors+ minds, however, innovative companies understand that corporations that knowingly ignore social and environmental influences do so at their own risk. $hey may face complaints, litigation, tarnished reputationsPor see their opportunity to operate in important markets diminished.
positive correlation between social, environmental and ethical issues, and long9term shareholder value is a prerequisite for socially responsible investment to thrive. Studies have shown that it does not compromise financial gains. Indeed, some studies show a positive relationship between CS( and financial performance. Institutional investors, including some insurers, are recogni!ing that non9financial factors are appropriate considerations when it comes to investing. $here are three main strategies that socially responsible investors can use. $he first, called screening, involves selecting investment options based on social or environmental criteria. It makes sense for insurers to screen out companies that, by the very nature of their operations, increase the likelihood and costs of claims, such as tobacco companies. $he second strategy, shareholder activism, as its name suggests, involves communication with the investment company through shareholder resolutions, for example. If measures of communication are unsuccessful, then investors can always make their position clear by ceasing to invest in that company. $he third strategy, community investing, is self9explanatory. "or example, viva has insured A6, underpri vileged people in India who would otherwise not be able to take part in productive activities. bviously, financial returns for this type of investing are likely to be relatively low; however, taking part in community investing may create new opportunities for an insurer while also improving its standing as a socially responsible corporation.
CSR )O(ICIES AND ACTI1ITIES7INITIATI1ES =0 INSURANCE SECTOR ;D'C (ife Ins!rance GB"C Jife has always believed that establishing a strong and ethical foundation is an essential prerequisite for long9term sustainable growth. Integrity and people care are two of our key fundamental values which we follow. "or us, Corporate (esponsibility comes first. O!r Approach
GB"C Jife has always believed that establishing a strong and ethical foundation is an essential prerequisite for long9term sustainable growth. GB"C Jife focuses on maintaining the quality of business and creation of long9term value for policy holders and stakeholders. *e also believe that business must go hand in hand with a sense of responsibility towards the society. GB"C Jife+s business philosophy highlights the theme of self9respect and independence. Swabhimaan, GB"C Jife+s Corporate Social (esponsibility 1CS(2 initiative9 aims to play a positive role by contributing towards easing distress and aiding in advancement of society while engaging with stakeholders thereby becoming a socially responsible corporate citi!en. GB"C Jife is committed to being a socially responsible corporate and its CS( framework is governed by a formal policy. Corporate Socia" Responsibi"ity )o"icy
GB"C Jife CS( framework
chievements *inner of )#est 'arketing Campaign+ award s for India Hiving Challenge -/0*inner of )Innovative "undraising Campaign+ award s for India Hiving Challenge -/0(unner up in )#etter than last year pri!es+ for the India Hiving Challenge -/0*on the -nd )#est 'arketing Campaign+ awards during the India Hiving Challenge -/-*on the -nd )#est 'arketing Campaign+ and -nd )'ost Innovative "undraising Campaign+ awards during the India Hiving Challenge -//GB"C Jife was awarded the )Euva Gero ward+ in Muly -// for contribution towards the educational support of lesser privileged children*on the )'ost innovative fundraising campaign+ award during the )India Hiving Challenge -/+GB"C Jife was awarded with )Euva %nstoppable Corporate Icon ward+ from Br. 3M &alam in Sept+-/
Initiatives Reb!i"din# Uttara6hand. A '"ood Response
In Mune -/0, devastating floods struck %ttarakhand. s a responsible corporate GB"C Jife decided to support rehabilitation of people affected in %ttarakhand floods SOS chi"dren&s vi""a#e pro,ect
GB"C life believes that education plays a significant role in an individual+s life. It helps children living on the margins of the society to break away from the cycle of poverty to a secure future.
Teach for India
GB"C Jife believes in every child+s right to quality education and believes that one of the long term solutions to eradicate the )>ducation inequality+ is by creating )Change Jeaders+. )ayro"" >ivin#
GB"C Jife encourages its employees to contribute a small part of their salary to establish their own charity account through the 3ayroll Hiving programme.
Tree p"antation
>nvironmental sustainability is emerging as an essential ingredient to doing business responsibly and successfully. 'inancia" (iteracy pro,ect
GB"C life believes in empowering marginali!ed population by building their capabilities. ne of the key capabilities is the ability to use knowledge and skills to manage financial resources effectively for long term financial well9being.
Swabhiaan Careers
GB"C Jife reali!es that coping with the loss of a loved one is a painful experience. *hile the disbursement of a death claim may help family members. A6shaya )atra
GB"C life believes that education plays a significant role in a person+s life. It helps marginali!ed population of society in breaking away from the shackles of poverty.
E?IDE (I'E INSURANCE
Say No to )"astics
>xide Jife Insurance is in the business of helping its customers manage their financial futures. Jike protection of life insurance is important to build a foundation for our familyLs financial future, it is important for us as individuals to protect the environment that will lead to a safer and better tomorrow. Say 7o to 3lastics is a very unique initiative from >xide Jife Insurance that educates the citi!ens of India on the negative effects of usage of plastics and encourages them to switch to environment friendly materials. %nder this program, our teams have engaged with more than /, households. ur teams go door to door and during every interaction they handover &ora Cloth bags and make people take a pledge towards this noble cause. $his program was recently recogni!ed by (ural 'arketing ssociation India through a Hold ward in the Boor $o Boor 'arketing 1Social2 Category. >xide Jife Insurance thanks all those have already said no to plastics.
S=I (ife Ins!rance / India S#I Jife undertakes its CS( initiatives with an ob4ective to bring about effective change as a (esponsible Corporate Citi!en. $hrough various CS( initiatives, Company intends to ameliorate the conditions of the people from the underprivileged sections of the society by facilitating them with education, adequate health care services and contributing towards making their lives better. 34 'aci"itate ed!cation for !nderprivi"e#ed chi"dren thro!#h the fo""owin# initiatives.
RContributed towards the academic support of /,- underprivileged girls in 'umbai and : girls in ndhra 3radesh in partnership with 7anhi &ali. In addition to primary education, the support includes cademic Support 1Cost of $utors, $raining2 and 'aterial Support 1%niform, Stationery and 7otebooks2. Nanhi @a"i, is a pro4ect 4ointly managed by &C 'ahindra >ducation $rust and 7aandi
"oundation was incepted in /::.
Rrgani!ed 3ro4ect %nnati along with Smile "oundation and supported the educational needs of -6 young girls.
Si"e 'o!ndation is an Indian development agency registered as an Indian Charitable $rust in
--, working for the holistic development of children, youths and women 1in the areas of education, health, girl child, empowerment and livelihood2.
RContributed towards supporting the educational requirement of the children like note books, stationary items from druta "oundation. Adr!ta 'o!ndation rehabilitates orphaned or deserted children in disha. It aims at becoming the centre of excellence in providing food, clothing, education and holistic growth to destitute
children.
RContributed towards procuring school bags, water bottles, notebooks, pencils, erasers, crayon boxes and white board for classroom teaching /-6 children in %$SG, Huwhati.
3
UTSA; 1%niversal $eam for Social ction @ Gelp2 is a Child 3rotection Centre,
accommodating /-6 students from the slum area under the >ducation 3rogramme.
RS#I Jife Chandigarh office identified an orphanage for girls 9 <%nique Gomes for Hirls=, Malandhar. $he office distributed a set of uniform, bags and shoes to A6 girls.
%nique Gome is run by a trust named after #hai Hhanayya Mi, a disciple of Huru Hobind Singh RS#I Jife distributed books at Maibai Choudhary School, 7ew Colony, Sadar 7agpur.
54 S!pport towards Underprivi"e#ed Citi%ens.
RS#I Jife &olkata donated /6 *heel Chairs, /6 Ceiling "ans, 6 3lastic Chairs, and 'edicines for one month, 6&gs Gorlicks, "ruits, #iscuits, etc to 3rem Baan a home for destitute run by 'issionaries of Charity. )re Daan is a home for destitute run by 'issionaries of Charity, &olkata with a mission of
serving underprivileged destitute brought from different part of the city. 3eople with psychological problems are treated and helped to return to normal life.
84 Towards Environenta" Re"ated Ca!se
RS#I Jife in association with Hrow$rees.com plants a tree on the occasion of every employee+s birthday. $he trees are planted at various reforestation areas like &anha 7ational 3ark at 'adhya
3radesh, periphery of Satkosia Horge *ildlife Sanctuary, ngul, rissa etc and are maintained at a high survival rate. In "E -/09/A, D,F0 trees were planted. Hrow$rees.com focuses on tree plantation as it creates low9skill 4obs and trees provide benefit to current and future generations, have a direct impact on carbon reduction, restoring forests, improving wildlife habitats, and upgrading water catchment areas, offer flowers, fruit fodder and fuel for local communities and all living creatures.
TRI)(E =OTTO+ (INE AND CSR
$he triple bottom line refers to a how a corporation deals with and reports on its impact and behaviour in respect to people, planet and profit. It reflects to a corporation+s greater transparency and accountability in its public reporting, communication and disclosure in regard to how the corporate entity performs in environmental, social and economic dimensions *hile there is no single universally accepted definition of $#J reporting, in a sentence it can be defined as corporate communication with stakeholders that describes the company+s approach to
managing economic, environmental and social dimensions of its activities. It is also known as )corporate social responsibility+, though some prefer to use the word )sustainability+ as more
encompassing, as they argue that responsibility emphasises the benefits to social groups outside the business, whereas sustainability gives equal importance to the benefits en4oyed by the corporation itself. Sustainable in this definition also refers to development that must not reduce options open to future generations
Gowever, responsibility and sustainability are both used to refer to a company+s obligations to society at large. $he phrase LLcorporate social responsibilityLL 1CS(2 is used to describe why, when, and how businesses manage their social, environmental, and economic aims and performance. It is an expression of the belief that it is not enough for a company simply to profit its owners. (ather, CS( holds that a company also must ensure that it does little or no harm to, and preferably helps, its workers, the environment, and the communities in which it operates.
s such, CS( is a balancing act between the interests of a companyLs various LLstakeholdersLL including shareowners, executives, employees, communities, and customers. It also is referred to as LLgood corporate citi!enshipLL, LLcompassionate capitalismLL, and LLbusiness ethicsLL. CS( has evolved in diverse ways for different companies, industries, and societies. In the %nited States, Jatin merica and Southeast sia, for example, much CS( involves donations to social and artistic causes and other such acts of corporate philanthropy. In >urope, where charity is regarded as a peripheral aspect of corporate operations, debate about CS( has focused on the environmental and social impact of companiesL business functions.
$he concept of the $riple bottom line was proposed by Mohn >lkington, who suggests that businesses need to measure their success not only by the traditional bottom line of financial performance @ profit, but also by their impact on the broader economy, the environment and on the society in which they operate.In conducting their businesses, companies use not only financial resources 1investment dollars, sales revenues2, but also environmental resources 1water, energy, raw materials2 and social resources 1employee+s time and talents, infrastructure provided by govt agencies2. Gis argument was that a sustainable business out to be able to measure,
document ad report a positive return on investment across all three bottom lines, as well as showing the benefits that stakeholders receive along the same three dimensions.
#asically, triple bottom line 1$#J2 reporting is meant to capture, describe and measure the impact of the organisation+s activities on the world. $he triple bottom line exists as a kind of balanced scorecard that captures in numbers and words the degree to which any company is or is not creating value for its shareholders and society
Econoic profitB
Sales,
profits
return
on
Environenta" p"anetB
Socia" peop"eB
irOuality
Jabour3ractices
*aterquality
CommunityImpacts
investment $axes paid
'onetary"lows
>nergyusage
Guman(ights
MobsCreated
*aste3roduced
3roduct(esponsibility
=ENE'ITS O' TRI)(E =OTTO+ (INE Enhanceent of rep!tation and brand./
>ffective communication with stakeholders on one or more of $#J dimensions can play an important role in managing stakeholder perceptions and so protect and enhance corporate reputation 1look what happened to wheat board shares2.
Sec!rin# a socia" "icence to operate./
$his is kind of like reputation, an informal community and stakeholder support for the organi!ation+s operations ? communities are likely to be more supportive of companies that communicate openly @ honestly about their performance in relation to environ, social @ economic factors.
Attraction and retention of hi#h ca"ibre ep"oyees./
$he publication of $#J information can play a role in positioning an employer as an employer of choice, which can enhance employee loyalty , reduce turnover attract knowledgegold collar workers.
Red!ced ris6 profi"e./
*hen $#J reporting takes place a company shows its commitment to minimising risk ? in times of increasing litigation, where due diligence can be established and a company establishes risks, they can be better managed. In turn, this improves stakeholder relations and makes it easier to attract investment capital and therefore positively affect the share price. Identification of potentia" cost savin#s./
$#J reporting involves the collection, collation and analysis of data on resource and material usage and the assessment of various processes. $his can actually help a company to better identify opportunities for cost savings through more efficient use of resources and materials
Increased scope for innovation./
In the process of reporting on all aspects of $#J, a company may actually create new innovations. >.g.89 trying to use less water, invent a grey water recycler.
Creation of a so!nd basis for sta6eho"der dia"o#!e./
3ublication of $#J reporting creates a platform for engaging in dialogue with stakeholders. %nderstanding stakeholder requirements and aligning them with business performance is fundamental to business success.
'UTURE SCENARIO O' CSR *e in India need to take hard look at ourselves. Compared to other countries our track record in development is fair from satisfactory. man may have a mobile phone, but does not have access to clean drinking water , a toilet, healthcare or basic infrastructure like electricity or roads. $he poorest of the poor in the world live here even while malls are springing up everywhere. $he population stratification is the steepest in the world. In a country of more than /.-b people, we have a shortage of doctors, teachers, nurses, policem an, soldiers in fact of all skilled workmen . $he harsh reality of a high rate of malnutrition and infant mortality cannot be brushed under the carpet or simply wished away. bove all, the complete breakdown of the conomic growth must be a nation, not in exclusion of the people. $he imbalances may not be obvious to some because of a large middle lass population that lives in urban areas and is hopefully getting
$here is a need for corporates to take on institutional responsibility and ownership in executing CS( in the line of their business. It is simply a matter of looking and reaching outwards, out of the circle the routine profit making cycle. $his effort of reaching outwards inevitably widens ones reach and reaps gains for the company while bringing about positive changes in the environment. Such positive change from different directions merges into direct
sense of collective responsibility
ccountability
n ability to see the larger picture; the larger good which will bring additional value to the company.
sense of nationalism; pride in the nation and its achievements. $he ability to think as an Indian.
Hood Corporate Hovernance and >thical practices which are also a part of Corporate (esponsibility. $hese must filter to the individual level.
>xecution needs commitment, authenticating of partners and monitoring processes. >mployees engagement is important. Involvement and support from the top management is vital for the success of CS( pro4ects. >mployees reali!e the importance of CS( initiatives to the company when support from top management is visible. I have seen that those employees who engage in CS( initiatives get involved and feel empowered by their personal ability to make a difference. $hey feel proud to belong to an organi!ation that does good work for the needy. $hey are motivated and from a more committed work force. Areas of wor6 co!"d be.
/. Gealthcare -. >ducation 0. Skills training A. #uilding infrastructure 6. >nvironmental issues
Conc"!sion. 7o doubt CS( is not the only solution. It is but a small cog in the engine of development; however it is critical part. *ithout the corporates taking on the mantle of social responsibility and aiding and pressuri!ing the government to do it bit, this engine could come to a grinding halt. $he time to act is 7*.
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