Global Compact Year book- 2012-13

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Global Compact Year book- 2012-13

  1. 1. YEARBOOK2012-13 Global Compact Network India YEARBOOK2012-13 Knowledge Sharing And Networking 1
  2. 2. About Global Compact Network India Global Compact Network, India was formed in November 2003 and was registered as a non-profit society to function as the Indian local network of the UN Global Compact programme. It is the first local network in the world to be established with full legal recognition. Global Compact Network India (GCNI) is a country-level, platform for businesses, civil organisations, public sector and aids in aligning stakeholders’ practices towards the Ten Universally Accepted Principles of UNGC in the areas of Human Rights, Labour, Environment and Anti – Corruption. At present, the India network ranks among the top 3, out of the 101 local networks in the world, and has emerged as the largest corporate citizenship and social responsibility organisation in the country with a pan Indian membership of 162 organisations, who have strengthened their commitment to the UN’s Global Compact Principles by becoming proud signatories of the local network, GCNI. Visit: www.globalcompact.in
  3. 3. YEARBOOK2012-13 Knowledge Sharing And Networking 3
  4. 4. YEARBOOK2012-13 Global Compact Network India President’s Message Dear Members, Colleagues and Patrons, I, as the President of the Global Compact Network India, am pleased to announce the publication of the GCN’s YEARBOOK 2012-2013. The Yearbook 2012-2013 provides a brief peek into the various discussions and learnings that evolved from the engagements undertaken by GCNI with its members and others through its Monthly Knowledge Sharing and Networking Meetings. Global Compact Network India has steadily moved towards creating a high degree of zeal and enthusiasm among the Indian Business houses and other organisations to address issues of concerns and deliberate together for innovative action plan on areas that require immediate and consistent action. Having transformed itself into a platform for sharing, networking and learning, GCNI has brought together diverse stakeholders and members in India to reflect on issues of local and global concerns. The dialogues, seminars and various engagement platforms offered by GCNI has brought together various stakeholders on discussion tables and offered them an opportunity to interact and network on critical issues. One such platform initiated by GCNI is the Monthly Knowledge Sharing and Networking Meeting, organised by Global Compact Network India and hosted voluntarily by the member companies and organisations. These monthly meetings have been a consistent event in the event calendar of GCNI and has provided the opportunity to the members to interact with others and demonstrate various initiatives taken up by them in implementing the Ten Universal Principles and Sustainability. The year 2012-2013 has been a year where the GCNI along with its member companies and patrons discussed pertinent issues and led debates and dialogues on some of the most contemporary issues, at these monthly meetings. This year, we have pushed hard to engage the various stakeholders; companies, academic institutions and civil society organisations, through these monthly meetings to discuss sustainability and sustainable practices. The outcomes of the Rio+20 Conference guided many discussion agendas to apprise the members and others of the Global Sustainability agenda and the thinking that is taking place around the world. The deliberations during the monthly meetings covering a range of issues provided significant insights into sustainability practices and initiatives of organisations, implemented both within 4 its internal working and external engagements. The thought provoking presentations by member and non-member companies have initiated constructive debates aimed at evolving solutions and plans for way forward. This year the monthly meetings brought together major think tanks, academic institutions, corporate and business houses and civil society, who presented and showcased their initiatives aimed at addressing the issue around the Ten UNGC principles. It showcased how our members have embedded sustainability into the heart of their business. The convictions of the companies and organisations were demonstrated through the innovative practices undertaken to promote and sustain activities that encourage sustainability in thinking and action. We believe that these organisations and companies, who have developed sustainable growth practices and implement these will not only be able to avail positive advantages for themselves but also have a positive impact on people and the planet. Through these meetings we have witnessed growing energies and enthusiasm to forge collaborations, partnerships and alliances to promote and encourage innovative programmes and activities. I am sure the outcomes of these meetings have served a good purpose of putting the post 2015 development agenda firmly on the priority lists of the various stakeholders and has been instrumental in directing the efforts towards aligning the organisational activities of various organisations, companies and business houses with sustainability. I gratefully acknowledge the support and appreciate the cooperation extended by the member companies and organisations for volunteering to host these Monthly Knowledge Sharing and Networking Meetings and investing their resources and time in bringing together the members, patrons, well wishers of the Global Compact. I also take this opportunity in wishing our members, partners, well-wishers and collaborators a Happy New Year and look forward to a more meaningful engagement in the new year. Sudhir Vasudeva President, Global Compact Network India & CMD, ONGC
  5. 5. YEARBOOK2012-13 Global Compact Network India Overview Monthly Knowledge Sharing & Networking Meeting Global Compact Network India in one of its kind initiative organises the Monthly Knowledge Sharing and Networking Meeting each month to bring together various members and stakeholders on a platform and encourages mutual sharing and learning opportunities. The programme offers an occasion to the member organisations and others, to present before a larger community of stakeholders various programmes and projects that are being organised by them. Global Compact Network in recognising that organisations have knowledge, which constitutes a valuable intangible asset for creating and sustaining competitive advantages organises meetings to create access to information and encourage free flow of ideas. Centred on various themes of Sustainability, CSR and Social Development process, the meetings are much sought events of the GCNI and is attended by experts, government officials, business heads, academicians, non-profit organisations and individuals from across the sectors in India. While involving people in understanding the issues of critical concern, these meetings also provide the attendees with the space to demonstrate the work and initiatives taken up by their organisations in furthering the agenda of Sustainability and CSR. Covering wide range of relevant issues to businesses, academic institute and civil society, these monthly meetings contribute to learning by way of information and knowledge exchange. These monthly meetings enable linking of sectors, professions, learning and so on, and contribute to greater coordination, coherence and innovation. A catalyst for establishing and fostering partnerships, these meetings enable networking opportunities to the organisations. Some of the important objectives of these Monthly Knowledge Sharing and Monthly Meeting are: • Promoting and showcasing the initiatives taken up by organisations in adopting the Ten Universal Principles of the Global Compact • • • • • • Providing networking opportunity to organisations, thereby facilitating connections between organisations for a mutually beneficial relationships Fostering innovations by encouraging sharing of best practices Encouraging partnerships and networking among organisations for shared learning and resource sharing Supporting and promoting efficiency and effectiveness in development cooperation Capacity building through sharing of expertise and experience Enabling organisations to develop shared approach towards solutions of developmental issues In the last one year, Global Compact Network has organised over 20 monthly meetings in Delhi, Hyderabad and Mumbai to facilitate the exchange of expertise and experience. Organised on monthly basis these meetings are hosted by member companies and organisations who volunteer to bring together the members and others and discuss on issues of concerns. Initiating discussion on issues relevant to the Ten Universal Principles of the Global Compact and the emerging ideas on sustainability, the meetings in the last one year enabled sharing of best practices and deliberations on issues that require greater attention and focus. Some of topics that were taken up for discussion include Achieving Business Objectives in Harmony with People and Planet; Ethics, Transparency and Accountability: Creating a Road Map to a Sustainable Future; Changing Business Practices for Sustainable Development – Contribution by Business Schools; Business models on Corporate Social Responsibility; Child Rights and Business; Responsible Supply Chain, etc. The various themes included presentations by the Global Compact Network India member companies on their initiatives to deals with the topic of concern. 5
  6. 6. YEARBOOK2012-13 Global Compact Network India The presentations were followed by deliberations by the participants to arrive at solutions and make value additions to the existing ideas promoted by the companies. An important event of the Global Compact Network India, the monthly meetings see steady participation of members and patrons, who look forward to this mutual sharing and learning session, making it one of the most sought after event of the Global Compact Network India. The yearbook 2012-2013 is a unique opportunity to take stock of the deliberation and presentations that took place during these meetings. The compilation is an outcome of the discussions and reflections of the participants and industry leaders present during the 6 session. In compiling the yearbook we followed three principle strategies. First, we collated the presentations made by the companies in showcasing their activities and projects, during these meetings. These meetings were organised around themes and included thematic presentations by the companies and were followed by discussions and debates. Second, we collated the ideas and important thoughts generated at these meetings to compile thematic chapters for this book. And third, we conducted desk based research on these themes to supplement the deliberations and presentations made by the participants. Business Leaders in India are committed to address issues of local and global concern and this yearbook is an assemblage of the efforts of the Indian companies in carving out new and innovative pathways to development.
  7. 7. YEARBOOK2012-13 Global Compact Network India Snapshot S. No. Theme Hosts Presentations by Date 1 Achieving Business Objectives in Harmony with People and Planet GAIL, New Delhi GAIL and Tata Teleservices 28th February 2012 2 Together, We Empower Rural India IRRAD, Gurgaon IRAAD and DLF Foundation 31st January 3 Ethics, Transparency and Accountability: Creating a Road Map to Sustainable Future CII, New Delhi CII and Collective Action Project, GCNI 26th December 2012 4 Changing Business Practices for Sustainable Development – Contribution by Business Schools All India Management Association, New Delhi All India Management Association and AICTE 30th November 2012 5 Sustainable Development through Innovative Business Practices NTPC, New Delhi NTPC and Lead India 31st October 2012 6 Affirmative Action of India Inc. through Corporate Social Responsibility NACDOR, New Delhi NACDOR, TCS, Safe Water Network and Prof. Inderdeep Chatrath 28th September 2012 7 CSR/Development Initiatives of PIC and UL Quality Assurance Partners in Change, New Delhi Partners in Change and UL Quality Assurance Pvt. Ltd. 31st August 2012 8 Sustainable Development and Rio +20 Summit JSL – Jindal Stainless Limited, New Delhi Jindal Stainless Limited and cKinetics 27th July 2012 9 Abhoy Mission of EPIL and CAIRN’s CSR Initiative EPIL, New Delhi EPIL and CAIRN 29th June 2012 10 CSR Initiatives of ArcelorMittal and TARA (Development Alternatives) ArcelorMittal, New Delhi ArcelorMittal and TARA (Development Alternatives) 25th May 2012 11 Dealing with CSR issues in MSMEs: A Cluster Based Approach Foundation of MSME Cluster, New Delhi Foundation of MSME Cluster and Collective Action Project, GCNI 27th April 2012 12 Recent International Legislation to Address Corporate Corruption - Issues and Challenges Tata Consultancy Services Ltd., Mumbai Tata Consultancy Services Ltd. and Collective Action Project, GCNI 1st December 2011 7
  8. 8. YEARBOOK2012-13 Global Compact Network India S. No. Theme Hosts Presentations by Date 13 UNGC Principles 7, 8, 9 Hindustan Construction Company Ltd., Mumbai Hindustan Construction Company Ltd. 20th February 2012 14 Corporate Social Responsibility and Sustainable Community Initiatives JSW Foundation, Mumbai JSW Foundation 10th April 2012 15 Developing a Responsible Supply Chain Mahindra and Mahindra Ltd., Mumbai Mahindra and Mahindra Ltd. and BPCL 30th May 2012 16 Encourage the Development and Diffusion of Environmentally Friendly Technologies Bharat Petroleum Corporation Ltd., Mumbai Bharat Petroleum Corporation Ltd. 27th June 2012 17 Learnings from Sustainability Initiatives Tata Power Ltd., Mumbai Tata Power Ltd., Tata Consultancy Services Ltd. and Tata Chemicals 21st August 2012 18 Fairness in Trade International Resources for Fairer Trade, Mumbai International Resources for Fairer Trade and Shop for Change 22nd October 2012 19 Developing Leaders of Consequence Institute of Intellectual Property Studies (IIPS), SVKM’s NMIMS University, Mumbai Institute of Intellectual Property Studies (IIPS), SVKM’s NMIMS University, Dr. Hedgewar Hospital and Watershed Management, Shirpur 14th December 2012 20 Innovative Practices of Training for Skill Improvement NMDC, Hyderabad Geological Survey of India, Ministry of Mines, Government of India 20th February 2013 21 Innovative Practices of NMDC Resulting in Successful Land Acquisition for the Steel Plant NMDC, Hyderabad NMDC 4th July 2012 8
  9. 9. Monthly Knowledge Sharing and Networking Meetings
  10. 10. YEARBOOK2012-13 10 Global Compact Network India
  11. 11. YEARBOOK2012-13 Global Compact Network India 11
  12. 12. YEARBOOK2012-13 Global Compact Network India Achieving Business Objectives in Harmony with People and Planet Changing societal expectations are placing new challenges before business leaders, and are shifting the nature of relationships between business and society. In the recent times, there is an increasing realisation to achieve business objectives in tandem with social and environmental responsibilities of the organisation. In the past, profits and loss accounts were seen as the only concerns of business. This scenario has however witnessed a change in the recent times, with debates on the responsibility of businesses towards the environment and the people that they impact. The goal therefore of businesses is to create strategies that preserve the long-term viability of People, Plant and Profit, the proverbial triple bottom line. The ensuing debate therefore is shifting the focus from just financial gains to a more holistic concept of the ‘Triple Bottom Line (TBL)’. The TBL framework incorporates three dimensions of performance: social, environmental and financial. This differs from traditional models of operations that were followed by the companies as it also includes ecological or environmental and social measures that are being taken by 12 the company to achieve the goals of sustainability. The TBL dimensions are also commonly called the three Ps: people, planet and profits. This frame had led to the introduction of the corporate philosophy to achieve profits in accord with people and nature. This has led to the promotion of corporate activities that deliver high quality services and products to the clients and customers while contributing towards a fruitful development process and global sustainable environment. In following this agenda, business firms are placing emphasis on sustainability, which focusses on economic, social and environmental performance of the company simultaneously. A growing majority of organisations are embracing triple bottom line reporting to demonstrate the harmony between profit, people and planet, in achieving business and corporate goals. Socially responsible corporate strategies impact communities not only today, but also leave lasting impressions for generations to come. Two main reasons why businesses are adopting sustainable business practice are 1) belief among the business communities that it is a responsible and ethical thing to do and 2) it provides for a perceived business advantage in the long run. The rapidly growing group of consumers is also looking at buying sustainable solutions, which is now encouraging the businesses to adopt sustainability in its business operations. Business, demonstrating a high degree of amicability with the society and environment at large in its operations is gaining respect and trust of clients and customers world wide. It is now well known that sustainability and following sustainable practices can increase revenue, reduce energy expenses, reduce waste expenses, reduce materials and water expenses, increase employee productivity, reduce hiring and attrition expenses, and reduce strategic and operational risks. This promotes the companies to look both internally and externally to understand their environmental and social impacts. This approach of the companies is not only leading to value addition within the company by the creation of a ‘green’ strategy aimed towards the natural environment, but also is promoting considerations regarding every dimension of how a business operates in the social, cultural, and economic environment.
  13. 13. YEARBOOK2012-13 Initiatives & Impacts Global Compact Network India Stakeholder Engagement Community • Engage with communities adjacent to facilities, interaction with village heads, local self-government etc. • CSR programmes in thrust areas • Create awareness on pipeline security, disaster & emergency preparedness Customers • Customer Satisfaction Index • Customer Suggestion Scheme • Presentation on SD aspects at customer meet • Responsible Product Pricing Suppliers • Business review meetings • Bill watch systems • Development of local suppliers • Engagement with suppliers Shareholder & Investors • Interaction on business issues on AGMs, investor meetings etc. • Share financial performance, future business plans Employees • Online employee feedback • Training workshops for employees on various SD aspects: ~ 25% covered • Training to newly joined/ promoted executives • Specialised training by CII-ITC • SD Quiz during Hindi Pakhwada Government • MoU with Ministries • Discussion on various aspects of business • Compliance with PNGRB guidelines, etc. SD Policy …commitment to economic, environmental and social concerns into the core of business process to create value beyond business.… aim to continue growing in a sustainable manner to benefit the communities, environment and stakeholders… Environment • Optimising use of natural resource – recycle, reuse • Eco-friendly technology • Energy efficiency • Water conservation • Waste management • Biodiversity conservation • GHG emissions mitigation • National commitments • Preference to eco-friendly products & services Economic • High quality products/ services • Practices for customer satisfaction • Energy security • Cleaner sourcesrenewables • Fair, transparent & ethical business relationships Social • Concerns of Communities • Generating awareness amongst stakeholder • Encourage employees – promote SD initiatives • Acquiring & nurturing talent • Minimising Health & Safety impacts of products & services Committed to allocate adequate resources… integrating sustainable development in overall business strategy… report on sustainability performance Sustainability Initiatives Water Management • Project Jaldhara: Complete Watershed Management at Vijaipur • Capacity Enhancement of Water Harvesting Reservoir at Gandhar • Zero Rain Water Discharge at Samakhiali • Rainwater Harvesting at RT- Loni and RTMadanpur (JLPL-NCR) • Behti Dhara: Piped Canal Project at Vijaipur • Water Footprinting Exercise at Pata Biodiversity Conservation • Project Dharohar: Conservation of Native Plant Species at GPU, Usar External Charters/Mandates • United Nations Global Compact • First Training Organised in India by UNESCAP & GCN on UNGC & COP Energy Management • Burner Management System (BMS): Retrofitting Natural Gas Fired Forced Draft Burner at GPU, Vaghodia Reducing NOx & Better Fuel Efficiency. (Actual overall efficiency 26% increase). First SD Project completed. • Energy Audit: In-house inter unit committee comprising of certified energy auditors/ manager of GAIL • Procurement of star rated electrical equipment • Investment in renewables 13
  14. 14. YEARBOOK2012-13 Global Compact Network India Together We Empower Rural India India is the second most populous country in the world, with more than half of its population continuing to reside in the rural areas. In this age of globalisation, where the Indian metropolitan cities are growing fast to meet the status of world class cities, majority of the country’s inhabitants live in the rural areas. The Census of India in 2011, projected a clear segregation of population residing the urban and rural areas. The data projected the rural–urban distribution to be as 68.84% and 31.16% respectively. The 66th round of National Sample Survey conducted in 2009-2010 projects that this huge mass lives on an average per capita daily expenditure of about Rs. 35 in rural, as against Rs. 66 in urban India. Faced with poverty, disease, lack of prospects for growth and prosperity, and lack of awareness the people in the Indian rural quarters find themselves disempowered. 14 Empowerment in this context would include: • • • • • • Building capacity of village level institutions that provides access to public goods and services Developing and building infrastructure that promotes overall well-being Raising awareness among villagers of their rights and entitlement, thus building an active citizenry Increasing the demand for accountable and transparent village governance Increasing avenues for livelihood generation and income augmentation Developing a batch of trained youths in the villages with adequate skills and training to explore jobs markets and opportunities Such initiatives require partnerships and collaborations that need to be forged among the Corporates, Civil Society Organisations, Community and Government. These partnerships look beyond the traditional corporate philanthropy or cheque-book philanthropy rather evolves a process whereby relationships are developed that involves joint planning, implementation and evaluation. The linkages intend at developing a naturally beneficial relationship for all the stakeholders and involve: • • • • Knowledge, asset and methodology sharing Devising customised and contextually relevant solutions Devising solutions that are replicable and sustainable Developing ownership among community and other stakeholders
  15. 15. YEARBOOK2012-13 Global Compact Network India Initiatives & Impacts Water Issue: Availability, Quality, Access and Awareness Impact: Addressed water issues of 2,50,000 people Agriculture Issue: Poor soil health, Unrewarding agriculture Impact: Reached 30,000 farmers Rural Research Issue: Assesses the impact of development programmes and disseminates knowledge Impact: Documented the impact of IRRAD’s interventions • Disseminated knowledge via publications and conferences Sanitation Issue: Unhygienic condition Impact: Reduced Disease Incidence Rate by 45% Village Governance (Demand-side) Issue: Lack of Awareness Impact: Governance wave reached 1,50,000 people Village Governance (Supply-side) Issue: Poor Public Service Delivery Impact: Helped 2,50,000 people receive better public services Skill Development 250 Training Centers to be established for training 1 million youth in the fields of IT, Retail, Marketing, Customer relations, Hospitality, Electronics and Construction with an outlay of Rs 200 crores Nurturing Talent The scope extends from 6 Std poor school children to graduation in professional courses & Business Management Schools for the Underprivileged & Rural Section Support a total of 63 Schools by opening new or augmenting the existing schools for slum dwellers, construction workers and rural sections of society Village Cluster Development Aim is to develop cluster of Villages by providing integrated healthcare, sanitation, education, skill training and infrastructure development. Food Banking Initiative In collaboration with International Food Banking Initiative launched first Food Bank in the country. Free nutritious packaged food is being distributed to the poor and needy. 15
  16. 16. YEARBOOK2012-13 Global Compact Network India Transparency and Accountability: Creating a Road Map to a Sustainable Future In the backdrop of rising concerns related to environment, the demand for sustainable future is gaining currency rapidly. Multiple forces are in place to achieve sustainable future. Among these forces, governments, citizens, corporate sector, voluntary sector, and civil society are at the top of the ladder. However, efforts from these sectors are not enough. For a sustainable future a bigger picture has to be taken in account. The Rio+ 20 conference in 2012 highlighted that to achieve sustainable development goals there is a need for institutions at all levels to be effective, transparent, accountable and democratic, making transparency and accountability as the most important pillars for a sustainable future. Transparency and accountability at all levels of government and private sector become essential for a sustainable future. Transparency and accountability have emerged over the past decade as key ways to address both developmental failures and democratic deficits. In the development and 16 aid context, the argument is that through greater accountability, the leaky pipes of corruption and inefficiency will be repaired, aid and public spending will be channeled more effectively and development initiatives will produce greater and more visible results. Transparency and accountability in the administration of companies is synonymous to success. Secrecy fosters disbelief of consumers, stakeholders, shareholders, and citizens at large. However, transparency eliminates the wall of secrecy built against the common people by those holding power. Companies can reinforce accountability by making sustainability information and results widely available to the public. Such initiatives are identified as sustainability reporting. In the corporate sector, the concept of corporate sustainability reporting must be encouraged at all levels to cultivate greater transparency and accountability. Integrating sustainability information into the reporting cycle of companies will bring on one hand, transparency and accountability, and on the other hand, a step towards achieving sustainable development goals. The corporate sector should also develop models for best practice and facilitate action for the integration of sustainability reporting, taking into account experiences from already existing frameworks and paying particular attention to the needs of developing countries, including for capacity building. Sustainability reporting, is a mechanism for organisations to become more sustainable and contribute to a sustainable global economy. Good corporate reporting, is hence, based on the principles of accountability and transparency. analysis for all its products, it can reveal its overall impact much better than any Corporate Responsibility report. Taking further steps on sustainable reporting, transparency is greatest when focussed at product level. Companies must also extend its reporting and include the impacts of products throughout their life cycle. Through this companies can demonstrate transparency and accountability across the value chain. If a company produces environmental product declarations (EPDs) based on life cycle Consequently, through the methods of reporting and making company’s operations more transparent the level of accountability and transparency could be scaled up which will not only build consumer’s trust but also will help nations in achieving sustainable development goals. Thus, corporate transparency is a key in prosperous and sustainable future. Now consumers and investors are increasingly aligned in their desire for more sustainable corporate and organisational behaviour. Most importantly, they also demand an ‘explanation for how that behaviour is being put into practice along with its financial impact. That alignment will have far reaching impacts – ranging from the brand, to the reputation, to the bottom line’. Now companies cannot escape from the fact that they will be held answerable for their products and operations.
  17. 17. YEARBOOK2012-13 Global Compact Network India Initiatives Towards Greater Transparency and Accountability Ethics, Transparency and Accountability are core values for organisations to practice Good Corporate Governance and Sustainable Development. International Standards and Guidelines Expectation of organisations is to instill such practices that cover activities beyond their boundaries and go into their entire value chain. Indian Standards and Guidelines • • • • • • United Nations Global Compact GRI Guidelines (G3, G3.1, G4) IFC Sustainability Framework SEBI Clause 55 on Corporate Governance National Voluntary Guidelines on Responsible Business DPE Guidelines Value Chain Suppliers/Vendors, Raw Material Providers Organisation Customers Consumers Some Solutions • Introduction of new technology which could serve as a tool in countering corruption such as Unique Identification (UID) cards • The importance of Private Member Bill • Separate judicial system for white collar frauds for speedy prosecutions • Need for oversight done by SEBI • Comprehensive education for people on guidelines • Collective action for concerted action against corruption in India, setting the right tone at the top level and tuning individual orientation • Committed bureaucracy • Bringing down corruption especially in the engineering sector • Need for social audit • Effective grievance mechanism • Need for fast track justice system • The stock exchanges can be instrumental in implementation of various anti-corruption policies • Involving the small scale enterprises • Every country should tailor made the anticorruption policies as per its maturity level 17
  18. 18. YEARBOOK2012-13 Global Compact Network India Changing Business Practices for Sustainable Development – Contribution by Business Schools Sustainable development and the role of corporate leaders in propelling this idea are assuming great significance as we move towards the end of the Millennium Development Goals. The high level panel of the UN Secretary General is working towards developing a set of goals and targets that are attuned to sustainability and sustainable practices. For the achievement of these goals and targets, stress is being laid on greater partnerships between government, civil society organisation and corporate leaders and business houses. In this context the contributions by educational institutions in the global discourse on sustainable development is identified as an effective means to raise awareness and facilitate business education for sustainable development. In a world where corporate houses hold great power and business leaders are important drivers of development policies, their role in sustainable development cannot be negated. The scope of their decisions has social and environmental impacts, and therefore puts them at the forefront for the realisation of sustainable development and calls for their responsibility. Educational institutes form the training ground for future business and corporate leaders, 18 therefore their role against this background assume significance. The World Summit on Sustainable Development in Johannesburg, 2002 also concluded that education is essential for Sustainable Development. It stressed that academic institutions have an important role to play in shaping the thinking of individuals and bridging the gaps in understanding between various academic, governmental, and nongovernmental entities by providing a vehicle to encapsulate and disseminate knowledge, skills, and lessons learned. Corporate Social Responsibility and sustainability, while has been a part of the business world has not been able to embed itself into the mainstream education curriculum that develops and shape the minds of future business leaders. As institutions of higher education are involved in the development of current and future managers, it is important that these academic bodies take up the responsibility to develop the capacities of its students attuned with changing business environment. Within this context, PRME calls for business schools and universities worldwide to gradually adapt their curricula, research, teaching methodologies and institutional strategies to the new business challenges and opportunities. It is a United Nationssupported initiative whose mission is to inspire and champion responsible management education, research and thought leadership globally. The initiative embodies a voluntary set of principles. It is, however, important to note, that implementing the principles of PRME, the institutions can start with implementing those principles, which are more relevant to the organisations specific value-creating strategies and capacities and do not need to have programmes or initiatives that relate to every principle. • We will develop the capabilities of students to be future generators of sustainable value for business and society at large and to work for an inclusive and sustainable global economy. • We will incorporate into our academic activities and curricula the values of global social responsibility as portrayed in international initiatives such as the United Nations Global Compact. • We will create educational frameworks, materials, processes and environments that enable effective learning experiences for responsible leadership. • We will engage in conceptual and empirical research that advances our understanding about the role, dynamics, and impact of corporations in the creation of sustainable social, environmental and economic value. • We will interact with managers of business corporations to extend our knowledge of their challenges in meeting social and environmental responsibilities and to explore jointly effective approaches to meeting these challenges. • We will facilitate and support dialogue and debate among educators, students, business, government, consumers, media, civil society organisations and other interested groups and stakeholders on critical issues related to global social responsibility and sustainability. These principles are an effort to ensure that issues of sustainability and corporate social responsibility are taken up as topics for instructions in academic institutions. It serves as a means to recognise an organisation’s efforts to incorporate sustainability and corporate responsibility issues in teaching, research and internal systems, thereby ensuring that innovative thinking is encouraged to implement the agenda on Corporate Social Responsibility and Sustainability.
  19. 19. YEARBOOK2012-13 Global Compact Network India Contribution of Business Schools • The Managerial Values through management education need to be inculcated for achieving the transformation of management education for a sustainable tomorrow. • The Values such as equity, accessibility, availability, affordability, quality, protection of the ecosystem, the conservation and restoration of resources and development of human and intellectual capital are eternal for the sustainability of society in future • ‘Sustainability in fact should be essence of Management Education.’ • Sustainability, broadly defined, applies to many disciplines, including economic development, environmental and natural resources management, food production, energy, and socio-cultural dimensions and lifestyles engaged in a trans-disciplinary mode. Application in Management Education • • • • • • • Design and development of curricula to moving forward with strategies viz; vision building and advocacy, Consultation and ownership, Partnership and networks, Capacity building and training, Research and innovation, Use of information and communication technologies, Monitoring and evaluation to implement the overall goal of sustainable development. Response of B-Schools in India • Introduction of Environment Management, CSR and Business Ethics in curriculum of Management Programmes • Social and Rural inclusiveness Projects • Research and Training initiatives Response of B-Schools AIMA: Contribution • EFMD’s Globally Responsible Leadership Initiative, which is “to promote understanding of what constitutes globally responsible leadership and to develop its practice” (EFMD, 2005, pg. 4). • With its 2004 publication of ‘Ethics Education in Business Schools’, AACSB International began to focus on elevating achievement in business ethics education, which is broadly defined to include business and society, ethical leadership and decision-making, and governance. As an apex body of Management in the country, AIMA is also creating awareness about responsible management education. Some focussed initiatives are as: • The Aspen Institute Business and Society Program has, through a variety of projects, identified and promoted the valiant efforts of business schools to prepare graduates in the social and environmental dimensions. • Established in 2002, the European Academy of Business in Society (EABIS) is a unique alliance of companies, business schools, and academic institutions that, with the support of the European Commission, is committed to integrating business-in-society issues into the heart of business theory and practice in Europe. • • • • Sustainability Summit Organised 6th National Research Conference on the theme ‘Transforming Management Education for Sustainable Tomorrow’ in collaboration with AICTE Publication of research articles in edited book Contribution of background research paper on the theme ‘Accreditation of Management Education for Sustainable Development’ in WOSA 2012 by NBA 19
  20. 20. YEARBOOK2012-13 Global Compact Network India Sustainable Business through Innovative Business Practices Sustainable business, or green business, is defined as an enterprise that has minimal negative impact on the global or local environment, community, society, or economy and that strives to meet the demands and need of the triple bottom line. Sustainable businesses are regarded as those businesses, which have progressive environmental and human rights policies and, which work towards ensuring that these are not compromised in carrying out internal and external engagements by the company. In general, business is described as green if it matches the following four criteria: 1. It incorporates principles of sustainability into each of its business decisions. 2. It supplies environment friendly products or services that replace demand for non-green products and/or services. 3. It is greener than traditional competition. 4. It has made an enduring commitment to environmental principles in its business operations1. A sustainable business is any organisation that participates in environment friendly or green activities to ensure that all processes, products, and manufacturing activities adequately address current environmental concerns while maintaining a profit. In other words, it is a business that “meets the needs of the present world without compromising the ability of the future generations to meet their own needs2.” It is the process through which organisations and businesses work towards assessing how to design products that will take advantage of the current environmental situation and how the products will perform with renewable resources. Innovation assumes greater relevance in the context of sustainability. Innovation leads to value creation and differentiate products and services, adding to the market advantage and increasing prospects in the competitive environment for the company. Innovations that are aimed at sustenance can provide an incremental advantage to a company, in the competitive landscape. Research shows that organisational and technological innovations aimed at sustainability yield returns to the company, environment and people. Becoming environmentfriendly lowers costs because companies end up reducing the inputs they use and increasing the efficiency by which the inputs are used. In addition, the process generates additional revenues from better products or enables companies to create new businesses. In fact, because those are the goals of corporate innovation, we find that smart companies now treat sustainability as ‘innovation’s new frontier’. Alignment of business with sustainability confers advantage to the business and it is important that these advantages are understood, thus paving the way for the adoption of sustainable business practices. These advantages could be realised through adoption of innovations which while developing new products shape how resources like energy, carbon, water and materials are used. It focusses on reducing waste and efficient and judicious use of key resources. Innovations that are inclined towards sustainability goes beyond designing green products and packaging rather it entails improving business operations and processes to become more efficient, with an aim to reduce costs and waste. In conclusion, innovative business practices work towards providing advantages that enhances the brand value and image of the company and also contributes towards, environmental and social responsibilities of the business. Cooney, S. (2009) ‘Build A Green Small Business. Profitable ways to become an ecopreneur.’ United Nations General Assembly (1987) Report of the World Commission on Environment and Development: Our Common Future. Transmitted to the General Assembly as an Annex to document A/42/427 - Development and International Co-operation: Environment. Retrieved on: 2009-02-15. 1 2 20
  21. 21. YEARBOOK2012-13 Global Compact Network India Commitment to GC Principles Human Rights: Principle 1-2 E-VOICE (Employees Voluntary Organisation for Initiatives in Community Empowerment) with numerous programmes on education, livelihood, health, advocacy, etc. Quality Circle Information and Communication Technology (ICT) centers for providing IT education to physically & visually challenged students. Benefited more than 2000 students so far. Disability Rehabilitation Centers (DRCs) have provided services and aids & appliances to more than 23900 cases till now. Directly Observed Treatment cum Designated Microscopy Centre – registered more than 15100 patients and provided treatment to more than 2400 patients so far. Labour Standard: Principle 3-6 • Adopted international standards like SA-8000 and OHSAS-18001 • Accreditation for SA 8000 • Participative Forums - To evolve a sense of involvement & effective participation towards improved efficiency • Gender Equality – policy for grant of paternity leave, Ladies’ clubs/Mahila Mandals Education Health Vocational Training Women Empowerment Infrastructure Development Infrastructure Development Environment: Principle 7-9 • Emission Control & Environment Measurement Systems Automation • All stations accredited for ISO 14001 by reputed certifying agencies • Environmental Studies • More than 19 million trees till date in and around its projects as a measure to take massive afforestation • Ash Utilisation • Center for Power Efficiency and Environmental Protection (CenPEEP) • Water Conservation Anti-Corruption: Principle 10 • Vigilance Department consisting of four units, namely Corporate Vigilance Cell, Departmental Proceeding Cell (DPC), MIS Cell, Technical Cell (TC) is headed by Chief Vigilance Officer, a nominee of the Central Vigilance Commission • Preventive Vigilance Workshops • Vigilance Awareness Week • Fraud Prevention Policy formulated and implemented since 2006 • Signed MoU with Transparency International India in Dec’2008 Infrastructure Development Water 21
  22. 22. YEARBOOK2012-13 Global Compact Network India Developing a Responsible Supply Chain A supply chain is a system of organisations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer. In the recent times, there is an increasing realisation that business needs to be as sustainable as the supply chain. As awareness of corporate social responsibility grows, businesses have come to realise that their supply chain and its management can say a lot about the kind of company they are and the values they hold. Corporates world over are now turning towards ensuring that issues like environment, human rights, corruption and labour standards are addressed not only within the corporation but also outside in its supply chain. ‘Supply Chain Sustainability’, in this context, is defined as management of the environmental, social, governance and economic impacts throughout the life cycle of the asset. It aims to create, protect and grow long term value for all stakeholders involved in bringing the product or service to market and enhance the product responsibility from the conventional ‘design to delivery’ to the emerging ‘Cradle to Grave’ approach. Integrating sustainability into supply chain ensures that companies achieve better brand image and financial benefits in the market. Supply chain of an organisation has a far greater impact on the environment than any other part of its operations. While most corporates work towards delivering and producing sustainable products, it is also necessary that focus be placed on issues like procurement of raw material, distribution, transportation etc., which is provided for by the supply chain. 22 Building a sustainable and responsible supply chain involves realisation that today’s business actions will impact tomorrow’s environment. It involves instituting sustainability within a corporation by educating the organisation on sustainability and by educating the employees about the benefits of sustainability and what it can do for a company and environment. It also involves developing goals that are specific, measurable, attainable, relevant, and timely and that they are focussed on sustainability. Developing a socially responsible supply chain involves increasing engagement with the suppliers and ensuring that those involved in the supply chain understand the value of green and sustainable business. Partnership and collaborations with suppliers, in this context, is important for improvement in the supply chain and for meeting the rising customer expectations regarding the compliance to responsible supply chain practices. Working directly with the suppliers in the supply chain enables companies maintain and uphold social and environmental standards throughout their procurement process. It supports the suppliers to improve their CSR performance, while enabling corporate and business houses to increase their own efficiency. By integrating CSR standards in the procurement procedures, companies can maintain good reputation and make difference for the communities in which their suppliers are active. The key to becoming sustainable is to develop a culture of sustainability within the organisation, educating the employees, auditing supply chain processes, developing goals and objectives, implementing projects to meet goals, measure your company’s progress towards sustainability and benchmark other sustainability initiatives. It is also important that in doing so a supportive rather than a punitive approach is adopted to implement sustainable practices within the supply chain.
  23. 23. YEARBOOK2012-13 Global Compact Network India Initiatives & Impacts Assisting suppliers to deal with Hazardous Waste – Good Practice I Ground Work Detailed questionnaire was distributed among suppliers to understand: • Current processes • Environmental challenges • Awareness about the hazards of irresponsible waste disposal etc. Prioritisation Suppliers were categorised as 1. Having hazardous waste with – no EMS/OSHAS – with EMS & OSHAS 2. No hazardous waste with – no EMS/OSHAS – with EMS/OSHAS • Suppliers under 1 were prioritised for the programme Awareness About: • Environment • EHS • Responsible Business Practices • Green Supply Chain etc… Specific guidance document created Sharing of GSM policies Lessons learned • Initial awareness helps buy-in • A supportive and not punitive approach works • Need to be sensitive to financial and non-financial constraints • A marked improvement in supplier relationship Impact • Tier–I suppliers are getting themselves EMS/OSHAS certified • New environment friendly concepts are getting adopted • Voluntary adoption of re-usable packaging material. • Some rural suppliers achieved 100% legal compliance for the first time • Some suppliers have joined hands with us in our tree plantation drive • Some big tier–I suppliers are now open to undertake similar initiatives with their supply chains Upgrading Supplier competencies – Good Practice II • The Mahindra Yellow Belt (MYB) QC was introduced to solve chronic quality problems • Process followed: ‘Awareness and capacity building for enabling suppliers to build a Sustainable enterprise’ • 3 Business Partners showed keen interest in implementing this methodology in their respective organisation • 15 Participants participated for the MYB – Business Partners Training Program – followed by an objective test, and thereafter apply the learning in a Project Problem selected by them and approved by Mahindra & Mahindra Need for SCO- BPC recognised the need for a significant transformation SCO • Conflict of objectives • Corporate v/s SBUs • Challenges of ‘Deregulated’ Regime • Reap potential benefits from performance improvements Six Core Supply Chain Processes • Demand Management for product placement • Consensus Planning • 3 Months Rolling • Periodic Review Crude Purchases • Term/Spot/New Refinery Processing • Crude Processing • Production Plan • Review Product Acquisition • OMC Exchanges • Direct Purchases • Imports Product Distribution • Optimal Plan • Review Inventory Management • Norms Setting • Regular Review 23
  24. 24. YEARBOOK2012-13 Global Compact Network India Rio +20 Conference The Rio+20 Conference on ‘Sustainable Development’ in Rio de Janeiro, Brazil in June 2012 was the biggest UN conference ever that brought together heads of states, civil society organisations and business leaders on a common platform to deliberate on issues of sustainability and sustainable practices. It was a major step forward in achieving a sustainable future – ‘the future we want’. The Rio+20 Conference, also known as Conference on Sustainable Development (UNCSD), also known as Rio 2012 or Earth Summit 2012 was the third international conference on sustainable development, aimed at reconciling the economic, social and environmental goals of the global community. Hosted by Brazil in the city of Rio de Janeiro from 13th to 22nd June 2012, the Rio+20 Conference was the 20-year follow-up event to the 1992 Earth Summit/United Nations Conference on Environment and Development(UNCED) held in the same city, and marked the 10th anniversary of the 2002 World Summit on Sustainable Development (WSSD) in Johannesburg. The ten day megasummit, which culminated in a three-day high-level UN conference, was organised by the United Nations Department of Economic and Social Affairs and included participation from 192 UN member states — including 57 Heads of State and 31 Heads of Government, private sector companies, NGOs and other groups. The Conference aimed at securing renewed political commitment for sustainable development, assessing the progress to date and the remaining gaps and opportunities in the implementation of the outcomes of the major summits on sustainable development, and addressing new and emerging challenges. Some Voices “Energy is a 100% problem! Not a 20-30% problem”– Microsoft 24 “Ewaste is the biggest emerging challenge”– GEF, World Bank, UNIDO “Earlier value of nature was set at zero. With 9 billion people by 2050, need to optimise the resource management of the planet”, UNEP Chief
  25. 25. YEARBOOK2012-13 Global Compact Network India The Conference focussed on two major themes: • • A green economy in the context of sustainable development and poverty eradication; and The institutional framework for sustainable development. The discussions at the Conference centered around had two main themes: 1. How to build a green economy to achieve sustainable development and lift people out of poverty, including support for developing countries that will allow them to find a green path for development. 2. How to improve international coordination for sustainable development by building an institutional framework. Billed as the biggest UN event ever organised, the 10 day mega-conference was intended to be a high-level international gathering organised to re-direct and renew global political commitment to the three dimensions of sustainable development: Economic Growth, Social Improvement, Environmental Protection; focussing on reducing poverty while promoting job growth, clean energy and more fair, sustainable uses of resources; the goals first established at Earth Summit in 1992. Working towards securing affirmations for the political commitments made in the past Earth Summits, the Conference aimed at developing consensus and building endorsement for a UN ‘green economy roadmap,’ with environmental goals, targets and deadlines. The primary result of the conference was the non-binding document, ‘The Future We Want,’ a 49 page working paper. The document largely reaffirms previous action plans like Agenda 21. As a part of the outcome document, the member States agreed that sustainable development goals (SDGs) must respect all the Rio Principles, be consistent with international law, build upon commitments already made, contribute to the full implementation of the outcomes of all major summits in the economic, social and environmental fields, address and incorporate in a balanced way all three dimensions of sustainable development and their interlinkages and include active involvement of all relevant stakeholders, as appropriate, in the process. How it was structured Diplomatic engagement for negotiations Major Groups discussions Events June, 13-15 Diplomats finish their negotiations June, 16-19 Sustainable Development Dialogues on 10 themes, the summaries of which to be presented to heads of government and state June, 20-22 Heads of Government and state meet and sign up a new agreement June, 15-18 Rio+20 Corporate Sustainability Forum: Innovation & Collaboration for the Future We Want by UNGC June, 18 Business Action For Sustainable Development June, 18-20 Major Group discussions June, 8-22 Civil Society Corporate Sustainability Forum Themes • • • • • • Energy & Climate Water & Ecosystems Agriculture & Food Social Development Urbanisation & Cities Economics & Finance of Sustainable Development Rio+20: Bone of Contentions Green economy – a new concept Equity principles – CBDR Rio+20 Outcome Document It has 53 pages with 283 paragraphs, grouped into six main sections: • Our common vision • Renewing political commitments • Green economy in the context of sustainable development and poverty eradication • Institutional framework for sustainable development • Framework for action and follow-up (26 thematic areas) • Means of Implementation Some Voices “Not enough green electron. Need for governance to balance loads and make green electrons used at night” – Microsoft v “Sustainability not Sustainable without board level engagement. CEO can’t be champion alone” – Calvert 25
  26. 26. YEARBOOK2012-13 Global Compact Network India A Cluster Approach Dealing with CSR Issues in MSMEs Micro, Small & Medium Enterprises (MSMEs) in India represent those manufacturing and service ventures where the Investment in Plant & Machinery and Investment in Equipment does not exceed Rs. 10 crores. These MSMEs represent the model of socio-economic policies of Government, which emphasise on greater job creation, diffusion of economic power for discouraging monopolistic practices of production and marketing by large enterprises; and in all prospects contributing to the growth of economy with less investment and low import-intensive operations. MSMEs also play a significant role in the nation’s development through high contribution to Domestic Production, Significant Export Earnings, Low Investment Requirements, Operational Flexibility, Location Wise Mobility, Low Intensive Imports, Capacities to Develop Appropriate Indigenous Technology, Import Substitution, Contribution towards Defense Production, Technology – Oriented Industries, Competitiveness in Domestic and Export Markets thereby generating new 3 entrepreneurs by providing knowledge and training. They contribute significantly to value addition, employment generation, exports and overall growth and development of the country. In India, MSMEs play an important role in the overall industrial development and progress of the country’s economy. Data on performance of the MSME sector demonstrate a consistently high growth rate. This agile and dynamic sector has shown innovativeness and adaptability to the changing economic situations and has survived the economic downturn and recession. These enterprises, while generating opportunities in the economy, also face challenges that obstruct their growth. They face hindrances that obstructs them from achieving economies of scale, lack of negotiating power, difficulty in achieving specialisation and have limited access to credit. The CLUSTER approach is based on the argument that rather than size it is the relative isolation of these enterprises that hinders growth of these organisations. Cluster development approach focusses on reducing this relative isolation faced by MSMEs by strengthening the linkages among the MSMEs, large enterprises, support institutions located within a geographical belt to initiate coordination of action and pool resources for achieving common development goal. An MSME cluster is a sectoral and geographical concentration of micro, small and medium enterprises producing a similar range of goods or services and facing similar threats and opportunities. This cluster approach is also instrumental in facilitating efforts towards meeting the social responsibilities of the MSMEs. The MSMEs while adding to the economic growth and also financial wealth of a country also has a significant bearing on the societal and environmental issues. Some of the social issues that plague the sector are child labour, poor working conditions, health and safety measures, low wages and unorganised/ contractual labour. These enterprises also contribute significantly to problems of air pollution, solid waste disposal, consumption of fossil fuel and water pollution. This leads to increasing demands from the MSMEs to meet their responsibilities. This engagement and response to meet the social and environmental demands investments with regard to time and finances and is a difficult task for single MSME to take up given the size of their operations. Within this context the cluster approach offers the MSMEs an opportunity to meet these responsibilities by pooling in expertise and resources for a common cause. The cluster approach to CSR is based on the approach that CSR strategies and goals are developed together by a Cluster of organisations rather than by an enterprise. ‘In other words, the traditional approach to CSR at the local level among SMEs proposes the promotion of sustainability management within the productive system, while ‘cluster’ approach promotes CSR of the productive system’3. Such approach would enable the enterprises to maintain competitive positions in the market and enable ensuring regulatory compliance with regard to adopting CSR practices. This promotes the engagement of the enterprise owners and the workers, thereby ensuring shared responsibility by the people at the top management and those placed at the bottom of the organisational hierarchy in these organisations. Massimo Battaglia, Lara Bianchi, Marco Frey and Fabio Iraldo; 17 March (2010). ‘An Innovative Model to Promote CSR among SMEs Operating in Industrial Clusters: Evidence from an EU Project’. Retrieved on: 23rd December, 2013 26
  27. 27. YEARBOOK2012-13 Global Compact Network India Cluster Development Approach POLICY ENVIRONMENT Commercial Service Providers (Designer, Testing Laboratory, Transporter, Import Agents, Fabricator Financier) Production System Backward linkages Firm Forward Linkages Firm Firm Raw Material Suppliers Firm Firm Labour/ Contractors Machinery Suppliers Fabricators Firm Selling Agents Firm Firm Direct Consumers (Public & Private) Support and Service Institution, Industry Associations, Skill Development Agencies SOCIAL ENVIRONMENT A multiplicity of internal relationships co-exist in a cluster Some interventions by foundation Cluster Sub Sector Significant driver Typology of action Actions Scale Samalkha, Faridabad, Kaithal Foundry Development Agency Internal Conditions Energy efficiency, Health, Working Conditions Approx-40 lacs (50:50) Jallandhar Sports Goods Market Internal and External both Education, Self Help Groups, Health Approx-5 00 Lacs (60:40) Rourkela Light Engineering Regulatory Pressure External Health Approx-40 lacs (100:0) Trichi Light Engineering Market Internal Health, Working Conditions 20 Lacs (50:50) 27
  28. 28. YEARBOOK2012-13 Global Compact Network India Corporate Social Responsibility Globally, almost a decade ago, advancement in multiple directions of development changed the paradigm of corporate social responsibility. In the year 2000, United Nations came up with the Millennium Development Goals (MDGs) and pressed developing nations to implement them strongly. Simultaneously, in the same year United Nations Global Compact (UNGC) was established to strengthen the process of Corporate Social Responsibility (CSR). Former development brought NGOs, civil society, governments, and other international development organisations together to join hands to work for the development of society and latter brought the corporate sector to divert a small amount of their profit to the social sector. The term CSR is often understood wrongly by many companies. Companies often believe that CSR is essentially a government responsibility. This is principally known as old school of thought. The old school of thought promulgate that business and social development are two different facets moving in the opposite directions. Companies tend to believe that business and social development is the 28 government’s responsibility. Thus, companies should focus only on business expansion and profit and let government and development institutes take care of social development. However, a closer understanding of CSR reveals that business and social development are in fact complementary to each other. No business can thrive in a society which is unstable and not prospering. It is now strongly believed that what is good for society will always be good for business. This may not be true otherwise. There are glaring examples of many companies, which have infused trust in the society through their generous social development work. As a result, the products of such companies are generally favoured by society without hesitation. Studies have revealed that products good for society, environment, and health are always preferred by consumers even if they are slightly more expensive. The new opinion on CSR stresses that it is the continuing commitment of businesses 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. flourish only in a stable environment. The realisation should come from within. There should be attempts to infuse the concept of CSR in the culture and operations of companies to make them more responsible towards the weakest sections of the society. This is in fact the biggest challenge. The resistance against CSR will come from the companies which do not understand CSR properly. The companies, while earning, do not realise that they cannot go on earning profits without giving back to society (that the company would not survive if they follow only profit motive). They have to understand that business can Over the last few years, an increasing number of companies worldwide have started promoting their business CSR strategies because the customers, the public and the investors expect them to act as sustainable and responsible economic actors. CSR is good for financial sustainability, and provides good business proposition. CSR unlocks the business potential of a company. Once companies understand that CSR helps them to earn more profit companies, society and nation will all florish together.
  29. 29. YEARBOOK2012-13 Global Compact Network India Thematic Areas & Impacts Education and Skill Development Human Rights Labour Integrated Health Care • Linking vulnerable children to formal schools • Support to formal education • Education of differently abled • Corporate and GoI partnership model for skill training • Innovative programmes like theatre in education, science playground • Developing appropriate infrastructure to provide skilled teachers, books and learning aids • Human Rights Policy and a guidance manual put in place, 100% employees trained on the policy • Human Rights Impact Assessment • Community Engagement • External Stakeholder Engagement • Special Tribal Development Initiative for Indigenous People • Risk Identification and Sensitisation of Suppliers • Feedback and Grievance Redressal Mechanism for Community Stakeholders • Human Resources Manual • Freedom of association and collective bargaining arrangements • No forced/compulsory labour • No Child Labour • Non-discrimination • Feedback and Grievance Redressal Mechanism for all Employees • Inspection of Contractors • Collaborate with Govt. of Jharkhand to promote abolition of child labour • Linking vulnerable children to formal schools • Mobiles and Specialist Camps • Drug Rehabilitation • Malaria and TB/Respiratory Disease Intervention • HIV and AIDs Awareness • Save the Girl Child • Access to Health Care – CHC/Other Government Institutions/Dental Care etc., Health Schemes and Plans • Encouraging Health Seeking Behaviour Environment Anti-corruption Community Development Infrastructure Development Deploying Environmentally friendly technology Mandatory training for all employees on anti-corruption; 100% employees covered. Transparency through sustainability reporting Safe Drinking Water and Sanitation Rural Electrification and Biogas Developing roads, housing and toilets, water tanks, community hall, schools and water harvesting structures, upgradation of hospitals Women Empowerment Skills Development and Entrepreneurship 29
  30. 30. YEARBOOK2012-13 Global Compact Network India Encourage the Development and Diffusion of Environment Friendly Technologies Environment friendly technology is a rapidly growing field that focusses on new scientific and technical methods that benefit the earth and protect the environment. Also called Green technologies, these technologies involve invention, improvement and scientific development that have a positive impact on the ecosystem. While having a global ecological impact, it improves the manner in which people perform daily tasks thereby making individual contributions towards a better ecosystem. Dissemination and diffusion of such technologies assume great significance in the context of our fragile environment, as these technologies being environment friendly are sustainable, produce as little waste and pollution as possible, and utilise the recycled and reuse of materials whenever possible. The use of these technologies allows improvement in economic performance while minimising harm to the environment, increase efficiency in the use of material and energy sources, develop and improve products and processes that are cleaner and leads to activities that increase awareness about the need for environmental protection and promotion of sustainable development by the general public. 30 Fairness in Trade Fair trade is an organised social movement that aims to help producers in developing countries to make better trading conditions and promote sustainability. Fair trade, by facilitating trading partnerships based on equity and transparency, seeks to transform trading structures and practices in favour of the poor and disadvantaged. It aims to contribute to the sustainable development of marginalised producers, workers and their communities. Through demonstration of alternatives to conventional trade fair trade empowers citizens to campaign for an international trade system based on justice and fairness. Fair trade involves embedding such practices in business, which promotes, encourages, and monitors social and ethical aspects of business. Some tools that could be used to ensure this is by the implementation of codes of conduct at the workplace in the entire supply chain. These include Social Compliance Monitoring, Social Compliance Training and Capacity Building of Workforce and Management Entity, Continuous Improvement Monitoring, Supply Chain Partnership Projects and Research. While it is important that ideas of fair trade are embedded into organisation and its functioning, it is also important to build a cadre of informed customers who understand the significance and consequences of fair trade. Use of promotional campaigns, online marketing and media coverage could enable the building of a network of informed consumers who understand fair trade and this help grow the market for Fair Trade certified goods. The strategies could include an in-depth media advocacy programme, events for industry and consumers, programmes on campuses, social networking sites aimed at young shoppers, celebrity endorsements and strategic alliances with NGOs to spread the word across the country.
  31. 31. YEARBOOK2012-13 Global Compact Network India Affirmative Action of India Inc through Corporate Social Responsibility India is a land of contradictions. Modern and traditional systems and structure co-exist with each other, which often is not in harmony. This unique social predicament poses challenge to the inclusive growth process in India and impacts the overall competitiveness of the Indian economy and limits the prospects of growth. This distinctive feature of contradictions within the India society is witnessed in the paradoxical nature of development and progress in India. While GDP is rising and making India one of the top competing nations in the world, with regard to economic development, a bulk of its population remains below the poverty line. While we see industries growing ten folds and creating new job opportunities for thousands of Indians, many still are facing poverty and unemployment. While the Indian government through its welfare programme is trying to reach out to thousands, many still find themselves un-reached by it. A bulk of the Indian population is becoming poorer and is starving, inspite of the development policies framed by the Indian government. In this scenario, the marginalised group with least access to opportunities and incentives offered by the state find themselves in an even more disadvantaged spot. In this context affirmative action assumes great importance in providing and facilitating development and progression of this marginalised section. Affirmative action is used to signify positive discrimination in favour of the groups that stand at the end of the receiving line. This discrimination does not imply taking away opportunities from others rather creating new opportunities for those who have been deprived. The reservation system, in India is an example of a policy framework designed to increase the opportunities for enhanced social and educational status of the underprivileged communities and, thus, enable them take their rightful place in the mainstream Indian society. The programme designed under this system is targeted to bring these groups into the mainstream and also to compensate them for centuries of discrimination and exclusion practiced on them. Despite such policies much ground still needs to be covered to bring these sections into the mainstream. Attempts, therefore, are being made to develop an alternate programme of affirmative action that looks beyond reservations and politics of reservations. Affirmative action in this context implies efforts to mainstream and integrate marginalised communities into mainstream economic activities through concerted efforts made by the government and the companies. It implies creation of opportunities that these sections have been traditionally deprived of through policies that are based on the premise of positive discrimination. It calls for channels to be provided to enable greater economic participation, through capacity building and talent upscaling. Indian industries in this scenario, assume greater role to facilitate inclusion through their policies on employment and transparency. The CII, Confederation of Indian Industry, one of the important industry associations in India, has devised a code of conduct to be followed by the companies, with regard to affirmative action. The Code relates to non-discrimination, assistance and transparency with respect to employees/ applicants/ vendors from the marginalised communities and works on the policy of voluntary commitment. FICCI, the Federation Indian Chambers of Commerce and Industry, devised a multi-layered affirmative action agenda to trigger a process of genuine socioeconomic development amongst the disadvantaged sections of the society. Even with such pro-active agendas and plans being devised by some of the most important industry associations a lot remains to be desired. 31
  32. 32. YEARBOOK2012-13 Global Compact Network India Acknowledgements We would like to extend our heartfelt appreciation to our host companies for volunteering to hold monthly meetings in Delhi, Mumbai and Hyderabad International Resources for Fairer Trade 32
  33. 33. YEARBOOK2012-13 Global Compact Network India We would like to thank our speakers for their insightful presentations and thoughts. Mr. Santanu Roy, GAIL (India) Limited Ms. Jyoti Sethi, Tata Teleservices Limited Lt. General Rajendra Singh, DLF Foundation Ms. Pooja Murada, IRRAD Ms. Bhawna Luthra, LEAD India Mr. Shikhar Jain, CII Prof. Rihan Khan Suri, Jamia Milia Islamia Prof. Raj Agrawal, AIMA Mr. D.K. Patankar, NTPC Limited Mr. Ashok Bharti, NACDOR Dr. Joy Deshmukh, Tata Consultancy Services Prof. Inderdeep Chatrath, Duke University, USA Ms. Laura Donovan, Partners in Change Ms. Dona John, UL Quality Assurance Pvt. Limited Brig. Rajiv Williams, Jindal Stainless Limited Mr. Khurram Naayaab, CAIRN India Mr. Sudhir Kumar Sinha, ArcelorMittal Mr. A.K. Sakalkar, BPCL Ms. Beroz Gazdar, Mahindra and Mahindra Ms. Aparna Khandelwal, cKinetics Mr. Suresh Rao, Tata Power Mr. S. Chandran, TCS Dr. Manoj Chaturvedi, HCC Mr. Paresh Tewary, JSW Foundation Mr. Mukund Gorakshkar, JSW Foundation Mr. Aniruddha Agnihotri, TCS Ms. Sunanda Jain, TARA (Development Alternatives) Mr. U.S. Pandey, BPCL Mr. D.K. Gokak, BPCL Mr. Madhu KM, BPCL Mr. Prashant Kokil, BPCL Mr. Y.K. Saxena, Tata Power Mrs. Gaynor Pais, International Resources for Fairer Trade Mrs. Arindama Banerjee, Wankhede International Resources for Fairer Trade Mr. Seth Petchers, Shop for Change Dr. Sujata Mukherjee, NMIMS Dr. Meena Galliara, Director, Centre for Sustainability Management and Social Entrepreneurship, NMIMS Dr. Anant Pandhare, Dr. Hedgewar Hospital Mr. Khanapurkar, Watershed Management, Shirpur Mr. R. Shankar, Dr Reddys Lab Mr. P. Shyam, NMDC Mr. Chandan Dutta, NMDC Dr. S.Vadivel, GSI Mr. Rajan Kumar, NMDC Mr. Vijay Kiran Ravala, GCNI (CAP) Ms. Jot Prakash Kaur, GCNI (CAP) We would like to acknowledge the leaders and experts for their continued support and co-operation Dr. S.P.S. Bakshi, Chairman-cum-Managing Director, Engineering Projects (India) Limited Mr. N.K. Nanda, Director (Technical), NMDC Dr. S.S. Mantha, Chairman, AICTE Mr. Kurt Soderlund, CEO, Safe Water Network Ms. Jane E. Schukoske, CEO, IRRAD Mr. N.K. Sharma, Executive Director, R&R/Safety/CSR, NTPC Mr. Mukesh Gulati, Executive Director, Foundation of MSME Cluster Ms. Rekha Sethi, Director General, AIMA Ms. Seema Arora, Executive Director, CII Dr. Debashis Sanyal, Dean, School of Business Management - NMIMS 33
  34. 34. Notes
  35. 35. Report Lead: Pooran Chandra Pandey Author: Jhumki Dutta Supporting Author: Yashsvi Chandra Publication Support: Deep Chandra Papnoi Designed and Produced by: roots@rootsadvertising.com Copyright © 2013 The Global Compact Network India Office Scope Complex, Core 5, 6th Floor (ONGC Office), 7 Institutional Area Lodhi Road, New Delhi Email: gcnindia@gmail.com
  36. 36. YEARBOOK2012-13 Global Compact Network India Global Compact Network India Office Scope Complex, Core 5 6th Floor (ONGC Office) 7 Institutional Area Lodhi Road, New Delhi Email: gcnindia@gmail.com www.globalcompact.in Disclaimer: This publication is intended strictly for learning purposes. The inclusion of company names and/or examples does not constitute an endorsement of the individual companies by the Global Compact Network India Office. The material in this publication may be quoted and used provided there is proper attribution. 36

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