csr

CSR IN ENVIRONMENTAL RISK MITIGATION AND RURAL DEVELOPMENT: 

CSR IN ENVIRONMENTAL RISK MITIGATION AND RURAL DEVELOPMENT Shruti Agrawal

Corporate Social Responsibility: 

Corporate Social Responsibility

CSR: 

CSR Corporate social responsibility An obligation, beyond that required by the law and economics, for a firm to pursue long term goals that are good for society . 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 that of the local community and society at large. About how a company manages its business process to produce an overall positive impact on society.

Main Concepts of CSR: 

Main Concepts of CSR CSR ( Carrol , 1979) Firms have responsibilities to societies including economic, legal, ethical and discretionary (or philanthropic). - See also DeGeorge (1999) on the “Myth of the Amoral Firm” Social Contract (Donaldson, 1982; Donaldson and Dunfee, 1999) – There is a tacit social contract between the firm and society; the contract bestows certain rights in exchange for certain responsibilities. Stakeholder Theory (Freeman, 1984) – A stakeholder is “any group or individual who can affect or is affected by the achievement of an organisation’s purpose.” Argues that it is in the company’s strategic interest to respect the interests of all its stakeholders.

Carroll’s CSR Pyramid: 

Carroll’s CSR Pyramid

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Two views of corporate social responsibility The shareholder view The only social responsibility of business is to create shareholder wealth. Corporate management cannot decide what is in the social interest. The costs of social responsibility which do not increase the value of stock, will be passed on to consumers. The multiple stakeholders view All customers and employees are treated with dignity. Relationships with suppliers must be based on mutual trust. Belief in fair economic competition. Business can contribute to social reform and honor human rights.

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Foundation principles of C orporate S ocial R esponsibility

Key Issues in CSR: 

Key Issues in CSR Labour rights : child labour forced labour right to organise safety and health Environmental conditions water & air emissions climate change Human rights cooperation with paramilitary forces complicity in extra-judicial killings Poverty Alleviation job creation public revenues skills and technology

CSR: In a Developed Country : 

CSR: In a Developed Country Governance, Business ethics, Human rights and Environment

CSR: In a Developing Country ( India ): 

CSR: In a Developing Country ( India ) Focus on nation building Socio-economic development Rural development Employment Education Health care Community support

CSR Reporting: 

CSR Reporting What is CSR/Non-financial/Sustainability reporting? The practice of measuring, disclosing and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development (Ernst & Young, 2009) Sustainability reporting is highly dynamic and highly competitive area of business thinking and action Its not mandatory in India but few companies are publishing the reports based on GRI guidelines.

Objectives/Advantages of CSR Reporting: 

Objectives/Advantages of CSR Reporting Sustainability reporting enables transparency in the business in communicating the non-financial aspects to outside world and stakeholders including investors, regulators and customers for greater transparency. It can improve a business’ general reputation and make it more known. It provides an opportunity to add special values to the business product. It can meet specific customer demands. Many private consumers also consider it important that the products have been manufactured under responsible conditions. It contribute to long term building of legitimacy in the business Management and staff focus more when problems, actions and results are made easier for the surrounding world to understand vis a report.

Possible trends in future CSR reporting: 

Possible trends in future CSR reporting Standardisation : An accelerating shift towards common formats for non-financial reporting Consolidation : An energetic shake-out of the concepts, content and language of non-financial reporting. Regulation : The emergence of government mandated non-financial reporting. Integration : Growing attempts to merge, or blend of non-financial reporting with financial reporting.

CSR Reporting Standards : 

CSR Reporting Standards Global Reporting Initiative As there is no standard for CSR reporting, several models were developed. However, over a period of time Global Reporting Initiative (GRI) guidelines have emerged as the single, generally accepted, global framework for sustainability reporting. GRI-G3, the latest version, provides guidelines and indicators to support sustainability performance disclosure. It is relevant to all organizations regardless of size, sector or location and can be voluntarily, flexibly and incrementally adopted.

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Principles of Non-financial Reporting (Non-Financial Reporting, 2009) Transparency: Transparency is central to any type of reporting and disclosure. It seeks to ensure that stakeholders are given a clear picture of the organization on everything which is material Materiality : An issue is considered “material” if it will influence the decisions, actions and performance of an organization or its stakeholders. GRI-G3 defines materiality as “the topics or indicators reflecting an organization’s economic, environmental and social impacts that would influence the assessments and decisions of stakeholders.” Responsiveness : It is defined in AA1000APS as “how an organization demonstrates its response and accountability to its stakeholders.” A responsive organization addresses its material issues and responds to its stakeholders in a comprehensive and balanced manner. Stakeholder Inclusiveness : Similar to responsiveness, the GRI-G3 states that “the reporting organization should identify its stakeholders and explain in its report how it has responded to their reasonable expectations and interests.” Completeness : According to GRI-G3, “completeness is the coverage of the material topics, the GRI-G3 indicators and the definition of the report boundary which sufficiently reflects economic, environmental and social impacts, enabling stakeholder assessment.” Sustainability context : GRI-G3 requires that the non-financial report presents the organization’s wider context of sustainability. Performance should be discussed within this, as well as the organization’s business strategy. The relationship between sustainability and organizational strategy should be clear, as should the context within which performance is reported.

Performance Indicators: 

Performance Indicators Reporting on Trends Use of Protocols Presentation of Data Data aggregation Metrics

Economic Indicators : 

Economic Indicators Economic Performance EC1: Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Core EC2: Financial implications and other risks and opportunities for the organization’s activities due to climate change. Core EC3: Significant financial assistance received from government. Market Presence EC4: Range of ratios of standard entry level wage by gender compared to local minimum wage EC5: Policy, practices, and proportion of spending on locally-based suppliers EC6: Procedures for local hiring and proportion of senior management hired from the local community. Indirect Economic Impacts EC7: Development and impact of infrastructure investments and services provided primarily for public benefit through commercial engagement. EC8: Understanding and describing significant indirect economic impacts, including the extent of impacts.

Environmental Performance: 

Environmental Performance Concerns an organization’s impacts on living and non-living natural systems, including ecosystems, land, air, and water. Indicators cover performance related to inputs (e.g., material, energy, water) and outputs (e.g., emissions, effluents, waste). In addition, they cover performance related to biodiversity, environmental compliance, and other relevant information. Various Environmental Aspects are Materials, energy, biodiversity, emissions, effluents and waste, products and services, compliance.

Laws and Policies:: 

Laws and Policies: The idea of being a socially responsible company means doing more than comply with the law when investing in human resources and the environment. - The two poles of the existing approaches are self-regulation and legal regulation (Chahoud 2005). Between those two extremes, the multistakeholder initiatives stand for the alternative approach of co-regulation. - The self-regulation approach - The legal regulation approach - Multistakeholder initiatives

Laws and Policies: Contd.: 

Laws and Policies: Contd. Internal CSR External CSR Beneficiaries: workers, shareholders and investors Beneficiaries: communities, civil society groups, other companies or institutions Internal CSR External CSR Sustainable Development of CSR Policy

Triple Bottom Line:: 

Triple Bottom Line: 3 Ps – People, Planet, Profit People Planet Profit Labour rights CBD Financial profit, asset creation Right to work GMOs Business ethics, corruption, bribery Right to life Air emissions Outsourcing Development rights Treatment of waste water Stock Exchange behaviour Right to privacy Impact on Ozone layer Economic regulation Right to hold opinions and freedom of expression Water consumption and leakage State contracts and state subsidies Right to peaceful assembly ‘Eco efficiency’ Redistribution

Within and Outside law:: 

Within and Outside law: The law, and especially its “harder”, i.e. repressive and contentious, manifestations, can crop up in any situation. The proliferation of legal disputes and the growing power of judges in many countries and continents cannot but bring about unexpected legal developments in corporate societal responsibility.

ISO 26000:2010: 

ISO 26000:2010 It is intended for use by organizations of all types, in both public and private sectors, in developed and developing countries. It will assist them in their efforts to operate in the socially responsible manner that society increasingly demands. ISO 26000 contains guidance, not requirements, and therefore will not be for use as a certification standard like ISO 9001:2000 and ISO 14001:2004.

Importance and features:: 

Importance and features: ISO 26000 will distil a globally relevant understanding of what social responsibility is and what organizations need to do to operate in a socially responsible way. Features: - assist organizations in contributing to sustainable development - societal, environmental, legal, cultural, political and organizational diversity, economic conditions - not a management system standard. - can be used as part of public policy activities - not intended to prevent the development of national standards that are more specific, more demanding, or of a different type.

Impact of CSR in India : 

Impact of CSR in India CSR as a discipline lacks well-elaborated methodologies that capture its impact. Fundamental distinction Methodologies designed to assess procedural compliance (e.g. with codes of conduct) Methodologies designed to assess the impact of such codes and their observance on poverty reduction, working conditions and environmental pollution. Only studies of the latter type assess the intended and unintended impacts of the various codes. Hence we need to go beyond accepting the postulated effects of CSR at face value Instead carry out much more research on the actual impacts of codes of conduct and self-monitoring

Rural and Environmental Implication of CSR: 

Rural and Environmental Implication of CSR We need to keep a number of cross-cutting issues in mind 1)How significant are CSR initiatives in India? If we use the standard management-orientated discourse on CSR as a benchmark Reach of CSR initiatives in India may be quite limited In a survey carried out in India in 2003 Found that not even 20 per cent of the large corporations surveyed had a formal policy on CSR The majority were philanthropic in nature, involving tiny sums of money

Rural and Environmental Implication of CSR (Contd..): 

Rural and Environmental Implication of CSR (Contd..) 2) There is a gap between how companies understand the boundaries of their responsibility & How these boundaries are perceived by their own employees and the wider public a survey of perceptions of CSR in India found that executives put emphasis on providing low prices, treating employees and applicants fairly >60% of the general public felt that companies should also be held responsible for bridging the gap between rich and poor & reducing social problems.

Rural and Environmental Implication of CSR (Contd..): 

Rural and Environmental Implication of CSR (Contd..) 3) We will also need to consider how broader structural and contextual factors affect what CSR instruments can or cannot achieve in India CSR debate has tended to ignore some of the more important developmental issues related to corporate power and policy influence & the negative effects of labor flexibilisation and economic liberalization For eg . In the case of India, jobs and employment potential are lost when foreign direct investment results in large, automated plants being installed and MNCs outcompeting local Indian SMEs

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Initiated the campaign towards a social cause in association with WWF-India to help save our tigers. Intends to draw attention towards dwindling numbers of tigers across the planet and bring forward the seriousness of losing tigers from our planet . Collaborated with WWF- India both for their invaluable knowledge about our tigers, as well as to support their on-ground initiatives for tiger conservation in India.

Contd…: 

Contd … Cricket Player and Aircel’s brand Ambassador Mahendra Singh Dhoni , footballer Bhaichung Bhutia and south Indian actor Surya are part of this campaign . TV and print advertising. Launched a website www.saveourtigers.com which is instrumental in propagating and disseminating information about saving tiger. It urges people to be informed and create buzz across all forums like blogging, writing on facebook , twitter and writing letters to the editors of newspapers . created a platform where people can donate money to NGOs working relentlessly for the cause.

Education for the Underprivileged: 

Education for the Underprivileged Education for the Underprivileged is an essential mandate of Aircel’s corporate social responsibility. Partnered with Concern India Foundation to facilitate education in Gali schools in Bhawana . The model of Gali schools provides for an overall development of children in academics and extra-curricular activities. It also inculcates social, moral and ethical codes of conduct in them apart from acquiring basic skills.

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Contd … Project Udaan is Aircel’s yet another program to introduce a positive change in the lives of street children, helpless women and lonely senior citizens. The Mobile toy library is Aircel’s third educational initiative to reinstate its social responsibility. It proposes to support 75,000 students in 3 years and about 100 students per day by way of exposure to innovative educational games and toys. set up a Computer Aided learning (CAL) center in the Puri district of Orissa. This is in partnership with the International Funding Agency, PLAN International.

ONGCpura: 

ONGCpura PURA, providing urban ameneties in rural areas. ONGC to provide gas based power from isolated and idle gas wells to initiate PURA. ONGCpura in each state where ONGC produces gas and oil and has availability of isolated gas. Tripura Assam Andhra Pradesh TamilNadu Gujrat Project Partners: ONGC, NABARD, TERI

Project Saraswati: 

Project Saraswati Project Saraswati launched in the year 2005 Aims to locate fresh water unexploited deep ground water resource. Saraswati -I, near Jaisalmer Town was drilled upto 500 m. Water reservoir located. To bring water to people living in drought prone area.

Healthcare: 

Healthcare ‘ Aakha ’ the boat of hope: mobile medical ship for tribals living in Majuli Island, Assam. Support to Bhartiya Kusht Nivarak Sangh in Tribal district of Bastar . Regular medical camps at remote villages in project areas.

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Life Care Society: Reach Poorest of Poor To provide weekly medical camps to the needy in the interiors of Dehradun . The Society does not get any financial aid, help from the Central Government and State Government and is fully dependent upon donations from friends, relatives and well wishers. It is here that it has been making a difference by treating patients and giving them medical treatment free of cost . Cachar Cancer Hospital & Research Centre . ONGC has been working in North East for last many years. As per the ONGC CCP, health care is an important issue where ONGC as a responsible corporate citizen has contributed to the Corporate Society. Supporting an NGO by providing financial assistance to Cachar Cancer Hospital Society, Silchar for procurement and installation of CT Scan Machine would have been an ideal way to give back to the Society . Anugraha Drishtidaan Dedicated to the mission of the restoring eye sight for the poor and the marginalized, Anugraha Drishtidaan has been offering its services regularly for the last many years.

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Sahara-A helping hand to the destitutes Background Shraddha Rehabilitation Foundation, is an NGO dealing with the problem of the mentally ill Road side destitutes . Shraddha is a humane experiment, perhaps the only one of its kind in India, providing treatment, custodial care and rehabilitation to a neglected group of mentally-ill roadside destitute and reuniting them with their lost families. It is a combination approach that marries medication, innovative psychosocial intervention and occupational engagement. ONGC’s Support ONGC has supported this project by providing 100 beds to the mentally ill road-side destitutes so as to provide some comfort to these destitutes along with a Diesel Generator for use during power cuts. Beneficiaries At present there are about 60-65 destitutes in the rehabilitation centre, it is understood that in the city of Mumbai there are around 500 such road-side destitutes aimlessly roaming in the metropolis of Mumbai. Such a project can help the society and the nation at large.

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ONGC’s fight against Child Mortality: ALISA WASHER Background The Thalassemia Society of India, Kolkata, approached ONGC with a Project for providing an equipment called .Alisa Washer., which is used for carrying out various pathological tests which are crucial for treatment of thalassemia patients. The Thalassemia Society of India is one of the few reputed institutes in the field of treatment of a disease like thalassemia in this part of the country and is in operation since 1884. This NGO is providing dual benefits to the society. One for prevention of the disease through rigorous awareness campaign and allied things and the other is actual treatment and cure of the disease. In about a century of its existence, the NGO has done commendable job and large number of Thalassemia patients particularly from poor and disadvantaged group of the society, immensely benefited.

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Recommendations Government regulations should make CSR mandatory. Ex: In UK every listed company is required to disclose ethical, social and environmental risk in their annual report The term of successful for a company has to be re understood. The companies must operationalize its resources towards, education healthcare and equal opportunity (for productive workforce),safe products and better working conditions (lower acciddents ), efficient utilization of natural and artificial resources(more production), and good governence (to protect customer and company). So a to be successful a company mist contribute towards improving the standard of living of the whole society. Identifying the point of intersection: Inside out linkage and outside in linkage.

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No business can solve all of society’s problems or bear the cost of doing so . Hence the following steps are suggested: 1) Select issues that interest with business (meaningful benefit for society, also valuable to the business) 2) Sort social issues into three categories for each BU and primary location 3) Rank in terms of potential impact The more closely tied a social issue is to the company’s business, the greater the opportunity to leverage the firm’s resources and capabilities, and benefit society Case Toyota - hybrid car Urbi construction - flexible mortgage to disadvantage buyers Credit Agricole - finance package for energy- saving home improvement and for audits to certify farms as organic

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Conclusion Corporate can do for society and community is contribute to a prosperous economy • Effort to find shared value in operating practices and in the social dimensions of competition context not only foster economic but to change the way companies and society think about each other • NGOs, Governments and companies must stop thinking “Corporate Social Responsibility” but start thinking “Corporate Social Integration” Corporation are not responsible for all the world’s problems. Nor do they have the resources to solve them all Creating shared value will lead to self- sustaining solutions that do not depend on private or government subsidies Well-run business applies its vast resources, expertise, and management talent to problems that it understands, has a stake, it can have a greater impact on social good than other

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Thank You