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Corporate Social Responsibility.pdf
1. #01 | Apr’13 | 50
COVERING THE CORPORATE SOCIAL RESPONSIBILITY NEWS, VIEWS AND MORE
CSR
CSR TIMES | #01 | APRIL 2013
2. contents
CSR : The Need
of the Hour
Sunil Shastri
The Pleasure of
Giving Something
Back to Society
Deepak Behl
Where There is a
Will, There is a Way
Kiran Bedi
A Good Business
Sense or a Duty?
Joginder Singh
The Buzzword &
Beyond
Siddharth Das Gupta
05
11
22
CSR TIMES - a First Step Foundation Initiative
“Sarva Loka Hitam”
Prema Cariappa’s Speech on CSR
An Article by Dr Kapoor
CSR - a boon for social upliftment in India
CSR Practices in Bharat Petroleum
CSR Initiatives by BHEL
CSR being carried out at IOCL
BEST PRACTICES IN CSR
CSR Policy of TATA Group
36
31
COVER STORY
CSR - A tool to enhance
brand value
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CSR TIMES | #01 | APRIL 2013
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Happy reading!
Sunil Shastri
editor’s
viewpoint
Editor in Chief
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#01
Apr’13
50
COVERING THE CORPORATE SOCIAL RESPONSIBILITY NEWS, VIEWS AND MORE
CSR TIMES | #01 | APRIL 2013
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CSR:
The Need of the Hour
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SPECIAL FEATURE
CSR TIMES | #01 | APRIL 2013
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SPECIAL FEATURE
CSR TIMES | #01 | APRIL 2013
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SPECIAL FEATURE
CSR TIMES | #01 | APRIL 2013
8. CSR TIMES | #01 | APRIL 2013
TATA Group
The Front-Runners in CSR Practices
No success or achievement in material
terms is worthwhile unless it serves the
needs or interests of the country and its
people.
“We do not claim to be more unselfish,
more generous and more philanthropic
than other people. But we think we started
on sound and straightforward business
principles, considering the interests of the
shareholder, our own, and the health and
welfare of the employees, the sure
foundationofourprosperity.””
o d ay ' s b u zz wo rd ,
C o r p o r a t e S o c i a l
TResponsibility or CSR
has been part of the Tata Group
ever since the days of Jamshetji
Tata. Even while he was busy
setting up textile ventures, he
always thought of his workers'
welfare and requirements of
thecountry.
From granting scholarships for
further studies abroad in 1892
to supporting Gandhiji's
campaign for racial equality in
South Africa to giving the
countryitsfirstsciencecentre,
hospital and atomic research
centre to providing relief and
rehabilitation to natural
disaster affected places - they
havedoneitall.
Under Tata, the group went
through major organisational
phases — rationalisation,
globalisation, and now
innovation, as it attempts to
reach a reported $500 billion
revenue by 2020-21, roughly the
sizeofwhatWalmartistoday.
Approximately two third of the
equityof theparentfirm,Tata
Sons Ltd., is held by
philanthropic trusts endowed
by Sir Dorabji Tata and Sir
Ratan Tata, sons of Jamsetji
Tata, the founder of today's
Tata empire in the 1860s.
Through these trusts, Tata
Sons Ltd. utilizes on average
between 8 and 14 percent of its
net profit every year for various
socialcauses.
Even when economic condi-
tions were adverse, as in the
late 1990s, the financial
commitment of the group
towardssocialactivitieskept
9. CSR TIMES | #01 | APRIL 2013
TATA GROUP
o d ay ' s b u zz wo rd ,
C o r p o r a t e S o c i a l
TResponsibility or CSR
has been part of the Tata Group
ever since the days of Jamshetji
Tata. Even while he was busy
setting up textile ventures, he
always thought of his workers'
welfare and requirements of
thecountry.
From granting scholarships for
further studies abroad in 1892
to supporting Gandhiji's
campaign for racial equality in
South Africa to giving the
country its first science centre,
hospital and atomic research
centre to providing relief and
rehabilitation to natural
disaster affected places - they
havedoneitall.
Under Tata, the group went
through major organisational
phases — rationalisation,
globalisation, and now
innovation, as it attempts to
reach a reported $500 billion
revenue by 2020-21, roughly the
sizeofwhatWalmartistoday.
Approximately two third of the
equity of the parent firm, Tata
Sons Ltd., is held by
philanthropic trusts endowed
by Sir Dorabji Tata and Sir
Ratan Tata, sons of Jamsetji
Tata, the founder of today's
Tata empire in the 1860s.
Through thesetrusts, Tata Sons
Ltd. utilizes on average
between 8 and 14 percent of its
net profit every year for various
socialcauses.
Even when economic condi-
tions were adverse, as in the late
1 9 9 0 s , t h e f i n a n c i a l
commitment of the group
towards social activities kept on
increasing, from Rs 670 million
in 1997-98 to Rs 1.36 billion in
1999-2000. In the fiscal year
2004 Tata Steel alone spent Rs
45croreonsocialservices.
Tata is accredited to initiate
various labor welfare laws. For
example- the establishment of
Welfare Department was
introduced in 1917 and enforced
by law in 1948; Maternity
Benefit was introduced in 1928
and enforced by law in 1946. A
pioneerinseveralareas, theTata
group has got the credit of
pioneering India's steel
industry, civil aviation and
starting the country's first
power plant. It had the world's
largest integrated teaoperation.
It is world's sixth largest
manufacturer of watches
(Titan).
Tata Corporate
Sustainability Policy
The corporate policy of the
group encompasses the
sustainable development of all
the stakeholders. The major
points included in thecorporate
policyarefollowing :
Ÿ Demonstrate responsibility
and sensitivity to biodiversi-
tyandtheenvironment.
Ÿ Comply with rules and
regulations relating to
environment
Ÿ Constantly upgrade
technology and apply
state-of-the-art processes
and practices with
institutional arrangements
that will combat larger
issues like climate change
andglobalwarming
Ÿ Create sustainable liveli-
hoodsand build community
through social program
pertaining to health,
education,empowermentof
w o m e n a n d y o u t h ,
employeevolunteering.
Ÿ Find ways to enhance
economic human, social
and natural capital for
bringing and maintaining a
balance among business,
societyandenvironment.
Dedications to the
Nation at a Glance
Tata Health Infrastructure
Ÿ Tata main hospital at
Jamshedpur
Ÿ ICU inJodaand Balangpur
Ÿ CHCinBariand Kuhika
Ÿ Hospitals in Gobarghati,
Sukinda, Joda, Belpahar,
Belipadaand Bamnipal
Ÿ Lifeline Express - the
hospitalonwheels
Ÿ Mobilehealthclinics
Ÿ Centre for hearing impaired
children
Tata Educational
Infrastructure
Ÿ Instituteof mathematics
Sukindacollege
Ÿ Joda college centenary
10. CSR TIMES | #01 | APRIL 2013
BEST PRACTICES
Learningcentreat XIMB
Ÿ J NTataTechnical Education
centre.
Ÿ School of hope: Shishu
Niketan
Tata Sports Infrastructure
Ÿ TataAthletics Academy
Ÿ TataArcheryAcademy
Ÿ TataFootballAcademy
Ÿ Tata Steel Adventure
Foundation
Ÿ Sports Feeder Centres
Ÿ Stadium atKeonjhar
CSR Activities of
Tata Cos. & Societies
TataSteel
Tata Steel has adopted the
Corporate Citizenship Index,
TataBusinessExcellenceModel
and the Tata Index for
Sustainable Development. Tata
Steel spends 5-7 percent of its
profit after tax on several CSR
initiatives,viz.,
(a) Self-HelpGroups(SHG's)
Over 500 self-help groups are
currently operating under
various poverty alleviation
programs; out of which over
200 are engaged in activities
of income generation
thorough micro enterprises.
Wo m e n e m p o w e r m e n t
programs through Self-Help
Groups have been extended to
700villages.
(b) Supports Social Welfare
Organizations
Tata Steel supports various
social welfare organizations.
Theyinclude;
Ÿ Tata Steel Rural Develop-
mentSociety
Ÿ Tribal Cultural Society
Ÿ Tata Steel Foundation for
FamilyInitiatives
Ÿ National Association for the
Blind
Ÿ Shishu Niketan School of
Hope
Ÿ Centre for Hearing Impaired
Children
Ÿ Indian Red Cross Society,
EastSinghbhum
(c)HealthcareProjects
In its 100th year, the Tata Steel
Centenary Project has just been
announced. The healthcare
projects of Tata Steel include
facilitation of child education,
immunization and childcare,
plantation activities, creation of
awareness of AIDS and other
healthcareprojects.
(d)EconomicEmpowerment
A program aiming at economic
empowerment through
improvised agriculture has
been taken up in three
backward tribal blocks in
Jharkhand, Orissa and
Chhattisgarh. An expenditure
of Rs 100 crore has been
estimated for the purpose and
this program is expected to
benefit 40,000 tribal living in
over 400 villages in these three
States.
(e)Assistancetogovernment
Tata Steel has hosted 12 Lifeline
Expresses in association with
the Ministry of Railways,
Impact India Foundation and
the Government of Jharkhand.
It has served over 50,000
people. Five thousand people
have got surgical facilities and
over 1,000 people received aids
11. CSR TIMES | #01 | APRIL 2013
and appliances. Over 7,00,000
rural and another 7,00,000
urban population have been
benefited by the CSR activities
of TataSteel.
The National Horticulture
Mission program that has
b e e n t a ke n u p i n
collaboration with the
Government of Jharkhand has
benef ited more than a
thousand households. In
collaborationwiththeMinistry
of Non Conventional Energy
and the Confederation of
Indian Industry, focusis laidon
renewable energy aiming at
enhancingrural livelihood.
TataMotors:
(a) PollutionControl
Tata Motors is the first Indian
Company to introduce vehicles
with Euro norms. Tata Motors'
joint venture with Cummins
EngineCompany, USA, in 1992,
was a major effort to introduce
emission control technology in
India. To make environment
friendly engines it has taken
the help of world-renowned
engineconsultantslikeRicardo
and AVL. It has manufactured
CNG version of buses and also
launched a CNG version of its
passenger car, the Indica. Over
the years, Tata Motors has also
made investments in the
establishment of an advanced
emission-testing laboratory.
(b) RestoringEcologicalBalance
Tata Motors has planted
80,000 trees in the works and
the township and more than
2.4 million trees have been
planted in Jamshedpur region.
Over half a million trees have
been planted in the Poona
region. The company has
directed all its suppliers to
package their products in
alternate material instead of
wood. In Pune, the treated
water is conserved in lakes
attracting various species of
birdsfromaroundtheworld.
(c)EmploymentGeneration
Relatives the employees at
Punehave been encouraged to
make various industrial co-
o p e r a t i v e s e n g a g e d i n
productive activities like re-
cycling of scrap wood into
furniture, welding, steel scrap
baling, battery cable assembly
etc. The Tata Motors Grihini
Social Welfare Society assists
e m p l o y e e s ' w o m e n
dependents; theymakeavariety
of products, ranging from
pickles to electrical cable
harnesses etc; thereby making
themfinanciallysecure.
(d)EconomicCapital
In Lucknow, two Societies –
Samaj Vikas Kendra & Jan
Parivar Kalyan Santhan have
b e e n f o r m e d f o r r u ra l
development & for providing
healthcare to the rural areas.
These societies have made great
effortsforhealth,educationand
women empowerment in rural
areas.
(e)HumanCapital
Tata motors has introduced
many scholarship programs for
the higher education of the
c h i l d r e n . T h r o u g h a
s c h o l a r s h i p p r o g r a m
Vidyadhanam, the company
supports 211 students. Outof th
ese students 132 students are
from the marginalized sections
of the society. These students
get books, copies and other
study materials. They also
undergo different kinds of
workshops, creative & outdoor
sessions and residential camps
aswell.
The company has entered into
Public-Private Partnership
(PPP) for upgrading 10
Industrial Technical Institutes
(ITI)acrossthecountry.
(f)NaturalCapital
On the World Environment
Day, Tata Motors has launched
a tree plantation drive across
India and countries in the
SAARC region, Middle East
Russia and Africa. As many as
25,000 trees were planted on
the day. Apart from this more
than 100,000 saplings were
planted throughout the
monsoon.
TataChemicalsLtd(TCL)
Tata Chemicals is making an
effort for sustainability.
Sustainability for the group
m e a n s h o n e s t y a n d
t r a n s p a r e n c y t o w a r d s
stakeholders, environmental
protection , generating
economic value, promoting
human rights and creating
social capital. Tata Chemicals
supports the UN Global
TATA GROUP
12. CSR TIMES | #01 | APRIL 2013
BEST PRACTICES
Compact and is committed to
reporting its sustainability
performance in accordance
with GRI (Global Reporting
Initiatives) guidelines. Its main
operations for environment
protection include optimal
use of resource, finding
and/or generating alternative
sources of fuel and raw
materials, and maximizing
reuseandrecycling.
All in all they have the policyof
“avoid, reduce and reuse”.
The company runs a rural
development program at
Okhamandaland Babrala.
Tata Chemicals Limited was
one of the first organizations to
hold an Impact camp, which
washeldatMithapurintheyear
1982, providing eye care to
hundreds of patients at the
Mithapur Hospital. Tata
Chemicals Limited was also the
firstorganizationtorunworld's
first hospital on wheels - the
Life Line Express, through
Jamnagar district for the first
time between November 21,
2004and December21, 2004. 16
TataTea
TataTea has beenworking hard
since the 1980s to fulfill the
needs of specially-abled
people. It has set up the Srishti
Welfare Centre at Munnar,
Kerala; its various programs
provide education, training
and rehabilitation of children
and young adults with special
needs.
Tata Tea's welfare officers help
identify and encourage relatives
or children of employees who
are handicapped to join the
Welfare Centre for special
education and rehabilitation
Srishti hasfourprojects:
1)TheDARE
It provides the students with
training in basic academics,
self-help skills and skills like
gardening, cooking, weaving
etc. Children are taught to paint
and some of the paintings are
printed and sold as greeting
cards. The sales proceeds of
which are used back into the
units.
2)TheDAREstrawberry
It preserves unit trains
youngsters to make natural
strawberry preserve. The
trainees are paid for the work;
they receive social cover, free
medicalaidandotherbenefits.
3)Athulya
Ithastwounits-
(i) A vocational training center
that imparts training in
stationery-making;and
(ii) A handmade paper-making
unit which trains physically
challenged persons in the art of
makingrecycledpaper
4)Aranya
This project was started to
nurture the lives of the disabled
and also to revive theancientart
of natural dye. Individuals are
given training invarious natural
dyeing techniques including
blockprinting,tieanddye, batik
work, etc. Their products are
sold inandoutsidethecountry
Tata Tea's Jaago Re! Campaign
exemplifies the Social-Cause
Marketing Initiatives.
Conclusion
For bringing back and
maintaining the general
balance in the economic and
social arena it is evident to
think deeply and act wisely
about CSR. As far as the Tata
group is concerned , it has gone
a long way in fulfilling its duty
and responsibility towards the
society and the nation. It has
reached the masses to elevate
their lives, to nurture their
dreamsandtohonetheirskills.
14. CSR TIMES | #01 | APRIL 2013
heconceptof Corporate Social Responsibility is not new to
us in India, the charity and support to the society has been
Tan integral part of ancient Indian traditions where we
offeredevenfoodtocowsand birdsbeforetakingthefirstpie. This
amazing concept of giving something back to the society has now
become an integral part of Corporate World and embracing the
concept of responsibility, the CSR has become the part and parcel
of EmployeeRelationsactivities.
To understand the concept of 'taking' the pleasure and happiness
by'giving'somethingback,letusunderstandtheconcept–
Incomparisontowhat…
Have you noticed that we generally complain about a lot of things
on daily basis. We have got issues about our salaries, benefits,
perks, cars and mobiles and what not? Why for most of us the
salariesareless,carsaresmall, housesarenotfullyair-conditioned
and mobiles are not the classy BlackBerries? Let us put ayardstick
against each one of these and start asking ourselves – “In
comparisontoWhat”?
We havegot houses big orsmall but therearesomewhodon'teven
have a hutment. We have got two wheelers to ride or cars to drive
and some are not even able to walk without help. We get salaries
every month because we are employed, whereas some are pushed
in crime because there is no job. Some people are ailing with
diseaseswithnocureandsomearespending theremainingdaysof
theirlifeinoldagehomes.
The Pleasure of
Giving Something Back to Society
DeepakBehl
15. CSR TIMES | #01 | APRIL 2013
We are morally answerable to
them as they are also the part
and parcelof oursocietyandwe
should helpthemoutaccepting
oursocialresponsibility. Letme
share a very interesting story
here...
What you have to do is to note
all the bold words in the story
and then we will do an exercise
after you have finished reading
thestory.
One day two very old friends
Ramand Shyammetaftermany
years and felt very good. They
met after about 20 years and
now both of them were around
40 years old. They shared with
each other everything about
theirfamily, jobandchallenges.
Ram said that he was very
happy and successful
because he was healthy and
working with a bank as a
m a n a g e r a n d t a k e s a
handsomesalaryof Rs.50,000
every month. He spends time
with hishappyfamilyof three,
his wife and 12 year young
daughter, studying in 6th class.
They all go for outings,
swimming, etc in his Maruti
800 and was very happy to lead
ahappyfamilylife.
Shyam said that he was not
very happy and not that
successful in his career in
comparison to his teammates
as he is justavicepresident in
an MNC and only makes about
TheStoryofTwoFriends
Rs.2,00,000 a month. Has a
Skoda but is always very busy
and have got no time for
family, his son is probably in
5th or 6th class and is suffering
with many modern diseases like
hyper tension, blood pressure
and heartproblem.
Bothof themwereconfused and
surprised. Ram thought, How
lucky Shyam was. He is very
successful as he is a VP only at
40, owns a big car, makes very
good money, what else does he
need inhislife.
Shyamthought, HowluckyRam
was. He lives a healthy life,
spends quality time with his
family and enjoys life, has got
everything in his life that is
requiredtobehappy.
Nowasmallexerciseforyou:
1. Note down all the Bold words
in the above story, read what
Ram thought about Shyam and
what Shyam thought about
Ram. Analyse who is right and
why?
2. Ram said he is successful in
life, isheright?
3. Shyam said he is not that
successfulinlife, isheright?
4. Whatwillyouadvise Ramand
Shyamtoremainhappyinlife.
5. Success is what – money,
health, family life, happiness or
achievements?
If given an option what would
you like to become - Ram or
Shyam.
WhatistheaimofyourLife?
Think for a while before
answering...
I am sure it is not very easy for
many people to answer this
question as they have never
ever thought of any such aim of
their Life, for them life is life
and they need to live it
somehow, they work very hard
to live this life, sacrifice a lot,
study a lot, work a lot and want
to gain a lot. What they want to
gain is most of the time quite
materialistic (like house, car,
jewellery etc.). What they want
to achieve is to lead a
comfortable life, and to make it
comfortable they do a lot of
uncomfortable activities. They
want to make a lot of money so
thattheycan buybig happiness
in life like plush houses, big
cars, roam around the world
andcaneatbestof thefoods.
Someof themworkveryhard to
earn all these and they
inculcate a habit of tension.
Theykeeponworking hardand
feel tense for years and it
becomes a habit, rather a very
strong habit. Even if they
achieve what they aspire, they
do not stop working and
worrying hard as they have
acquired a habit in past many
years.Rat race is rat race, even if
you win, you will remain a rat
only
They need to pay heavy
opportunity cost for their
standard of living. Sometimes
ARTICLE
16. CSR TIMES | #01 | APRIL 2013
it can be even their health,
family life and relationships or
friends.Theydonotthinkif itis
worthwhile to make the money
at the cost of the family or
health.
A very strange fact of life about
mankind is : They spend first
half of their life in making
money losing their health, and
spend second half of their life
in spending that money in
regaining losthealth.
What if you lose your health
andfamilylifeand leadyourlife
in pain, is that you worked very
hard for? Did you make a lot of
money so that you can give it to
the posh hospitals or you
wantedtogiveallthehappiness
of life to your kids. I have heard
many people saying that they
are doing all this for their
children, so that they can live
theirlifecomfortably.
A re you sure your children will
be thankful toyou for making a
lot of money for them even if
you were not there on their
birthdays, sports days or
parents teachers meetings
because you were so busy in
making money,gainingsuccess
and proving others thatyou are
smarterthanthem.
I know some questions of
priority of job or family are
difficult to answer and some
will argue that if they do not
work they will not be able to
support their families - that is
perfectly OK if you think
ARTICLE
otherwise.
Companies have started
supporting a noble cause of
Corporate Social Responsibility
by enabling and encouraging
them to do many activities like
supporting Orphanages or old
age home,visiting blind schools
and destitute homes regularly,
supporting hospitals doing
charity for poor patients,
guiding and coaching poor and
underprivileged students in
continuingtheireducation.
The employees are encouraged
to do the charity on companies
behalf and are supported by HR
departments. Most of the
e m p l o y e e s e n g a g e d i n
Corporate Social Responsi-
bilities work have shown that
happiness and satisfaction in
achieving the inner peace is
something which cannot be
a s s o c i a t e d w i t h t h e i r
designations and salaries, the
indirect support to the
corporate has come in the form
of reduced turnover ratio and
obviously the reduction in
recruitment cost, happier and
motivate employees, good
general moral and a sense of
respect with positive branding
for their company supporting
thepoisedsocialcause.
You can also try to 'gain' some
real happiness and inner peace
by 'offering' your helping hand
for Corporate Social Responsi-
bility and let me assure you, you
will gain more than you offer for
sure.
[The Author is working
as Director HR with The
Grand New Delhi and is
a s s o c i a t e d w i t h
Students' Bright Future
Organisation (an NGO
working supporting
u n d e r p r i v i l e g e d
children in continuing
their studies), he is the
a u t h o r o f a w a r d
winning self help book –
Winning is Everything
(Best Business Book of
the Year Award winner)
and was also honoured
with Rajiv Gandhi
National Unity Award
for Corporate Social
Responsibility.]
17. CSR TIMES | #01 | APRIL 2013
BEST PRACTICES
ritish Petroleum, a.k.a., BP is one of the world's leading oil companies on the basis of market
capitalisation and proven reserves. Its main businesses are Exploration and Production,
BRefining and Marketing, and Chemicals. Exploration and Production's activities include oil
and natural gas exploration and field development and production, together with pipeline
transportation, natural gas processing and gas and power marketing. The activities of Refining and
Marketing include oil supply and trading as well as refining and marketing. Chemicals activities
include petrochemicals manufacturing and marketing. In addition, the Company has a solarenergy
businesswhichisoneof theworld'slargestmanufacturersof photovoltaicmodulesandsystems.
British Petroleum
“To do no Damage to the Environment”
18. CSR TIMES | #01 | APRIL 2013
Headquartered in London,
United Kingdom, BP is the
third-largest energy company
and fourth-largest company in
the world measured by 2011
revenuesand isoneof thesixoil
and gas "super majors". It is
vertically integrated and
operates in all areas of the oil
and gas industry, including
exploration and production,
refining, distribution and
marketing, petrochemicals,
power generation and trading.
It also has renewable energy
activities in bio fuels and wind
power. BP has a primary listing
on the London Stock Exchange
and isaconstituentof theFTSE
100Index.
BP's origins date back to the
founding of the Anglo-Persian
Oil Company in 1909,
established as a subsidiary of
Burmah Oil Company to
exploit oil discoveries in Iran.
In 1935, it became the Anglo-
Iranian Oil Company and in
1954 BritishPetroleum. In1959,
thecompanyexpanded beyond
the Middle East to Alaska and
in 1965 it was the first company
to strike oil in the North Sea.
British Petroleum acquired
majority control of Standard
Oil of Ohio in 1978. Formerly
majority state-owned, the
British government privatized
the company in stages between
1979 and 1987. British
PetroleummergedwithAmoco
in 1998 and acquired ARCO
and Burmah Castrol in 2000.
BP operations are organized
into three main "business
US$7 billion into oil and gas
explorationinthecountry.
CSR Of BP
As one of the largest energy
companies in the world, BP
finds itself at the heart of the
climate change debate. It has
often come under the spotlight
foritsenvironmentalandsocial
p e r f o r m a n c e f r o m
campaigningorganisations.
Perhaps in response to this
growing pressure on energy
companies to be transparent
and responsible in their
environmental practices, BP
has formulated an ambitious
vision: “To do no damage to the
environment” – a challenge
that stimulates BP “to find
innovative ways to manage our
environmental impact at local,
regional and global levels.” BP's
s e g m e n t s " : U p s t r e a m ,
D o w n s t r e a m , a n d B P
AlternativeEnergy.
BP in India
With its rapidly-growing
population, rising demand for
energy and potential for large
hydrocarbon reserves, India
offers a remarkableopportunity
for the oil and gas business.
With an investment of over US$
8 billion and employing over
8500 people in the oil, gas,
lubricants and petrochemicals
businesses, BP today has the
largest international energy
company presence in India. In
India, BPownsa30%shareof oil
and gas assets operated by
Reliance Industries, including
exploration and production
rights in more than 20 offshore
oil and gas blocks, representing
an investment of more than
BRITISH PETROLEUM
Salesandotheroperatingrevenues $375,517 million
No. of Employees 83,400
Proved Reserves 17,748 million barrels
of oil equivalent
Retail Sites 21,800
Upstream and midstream Active in 30 countries
Refineries (wholly or partly
owned)
16
Refining throughput 2,352 thousand
barrels per day
20. CSR TIMES | #01 | APRIL 2013
approach is multi-pronged,
addressing climate change
through a combination of
energy efficiency, (flaring
reductions and lower carbon
products), biodiversity, water
usage,wasteandairemissions.
What is BP's impact on climate
change? BP's measures its
impactinfollowingways:
Ÿ Greenhouse gas emissions
fromitsownoperations
Ÿ Emissions through the use
of itsproducts.
Ÿ BP has engaged in activities
to try and measure the
climate change impact of
theuseof itsproducts
·
Alongside this, the company is
also trying to gain measures of
the difference that cleaner
productscould make
Thepotential impactof cleaner
products has led the company
to develop products such as BP
Ultimate, a fuel that claims to
improve efficiency and reduce
pollution (e.g. 14.5% reduction
incarbonmonoxideemissions)
The replacing of oil with gas,
has also been a priority as gas
createslessGHGthanoil
Renewables
BP believes that gas will be the
transitional fuel for several
decades;yetacriticalactivityfor
the business, leading the
gradual transformation to a
position 'beyond petroleum', is
driven by its challenge “to build
a material and profitable
renewables business” based on
solarandwind.
The company emphasises the
potentialof solarpowertoreach
the “as much as one third of the
world's population” which is
currently without access to
electricity. It also advocates the
role of partnership in delivery,
working with global funding
agencies, NGOs and private
sector organisations as well as
managing the training of local
people to install and maintain
thesolarproducts.
The challenge has been to make
renewables a sustainable and
p r o f i t a b l e b u s i n e s s
proposition.
Currently, the returns from
renewablesdonotcomecloseto
oilandgas.
However BP has been working
todevelopsustainablebusiness
propositions in the area of
renewables.
This has resulted in the
beginnings of a solar and wind
programme, still in their
infancy but beginning to have
animpact.
BP's solar programme focuses
on the manufacture and
marketing of photovoltaic
cells. BP operates in markets
where there is government
support available, such as
Germany, UKand California.
Socio-economic
contribution
BP has far-reaching impacts on
local societies and economies
and aims to build enduring
relationships with the
communities in which they
operates. Working in the
energy industry raises some
significant social issues and BP
is committed to addressing the
challenges.
BP's direct socio-economic
contributionincludesrevenues
brought in by their activities.
BRITISH PETROLEUM
21. CSR TIMES | #01 | APRIL 2013
Such investments benefit BP
and its shareholders as well as
the communities and countries
where they operate – by
creating and sustaining direct
employment, for example and
bybuildingcapacityinthelocal
supplier base, which creates
employment opportunities
indirectly.
What are the issues?
There are very few aspects of
how a company behaves as a
corporate citizen that do not
apply to a company of the size
and nature of BP. The most
significant of these are the
sheer environmental impact -
not simply of the extraction of
oil and the energy use of BP's
own operation, but more
significantly of the impact on
climatechangeof theactualuse
of all the oil by BP's customers.
The state of current scientific
evidence raises serious
question marksoverwhetheror
not human society can actually
afford to burn all the
hydrocarbons whose existence
we have already identified -
never mind potential future
discoveries. Twenty years ago,
peopleworried thatonedaythe
oil would run out. Now, it is the
casethatthereal issue has been
identifiedasoneofemissions.
A company with such extensive
operations in developing
countries also needs to
carefully manage its approach
to human rights, and ethical
business practices. BP will have
significant impact on local
communities - both as a huge
employer and through the
nature of its on-the-ground
operations. It should expect to
seriously seek to reduce
negative impacts here, and to
invest seriously in those
communities.
BP as a global player, is
immensely powerful. It has no
democratic legitimacy, but
often is betterabletolead onthe
social development of the
p l a n e t t h a n n a t i o n a l
governments. This is a dilemma
itneedstohandlecarefully.
What do the critics say?
BP's move towards positioning
itself as a sustainable energy
co m p a ny h a s b e e n t h e
proverbial red rag to a bull for
some. They point out that BP's
claim to be a global leader in
producing the cleanest burning
fossil fuel (natural gas) is an
incremental improvement over
oil at best, and a distraction
from getting away from fossil
fuels at worst. BP, they claim,
hasco-opted thelanguageof the
environmentalists without the
realcommitmenttodeliver.
What does BP say?
BP states that it recognises the
significant environmental and
social challenges faced by the
world in the 21st century. It
believes it can, and should, play
a part in addressing and
resolving many of the issues
associated with sustainable
development. It also accepts
that while the company can be
part of the solution, it cannot
and should not be the whole
solution.
Governments, companies and
civil society must fins effective
waysofworkingtogether.
Alongside the standard
financial figures, BP reports its
own greenhouse gas and other
emissions, oil spillages,
employeesatisfaction,dayslost
through injury at work, and
community investment across
theworld.
BP's policy statement commits
the company to ambitious and
w i d e - ra n g i n g b u s i n e s s
principles. The company's
reporting seeks to illustrate
how the company is meeting
these commitments in a
manner that supports the
profitabilityof thebusiness.
BEST PRACTICES
22. CSR TIMES | #01 | APRIL 2013
Where There’s a Will
There’s a Way
ARTICLE
Kiran Bedi
There isasaying – wherethere is
a will there is a way. When
such sayings are put into
practice, in any appropriate
form, they becomeexamples for
others to emulate. I will share
with you one such story which
provesthis.
Few years ago, fourteen serving
officersof Delhi Police,of whom
I was one, came together and
registered a non-governmental
organisation called Navjyoti. It
was set up to eliminate crime
through the methods of
prevention, correction,
treatment, rehabilitation and
social development. When it
wasregistered, itwasthefirstof
its kind set up by police officers
in the country, perhaps even in
the world. The traditional role
of police officers is usually
crime detection, arrest,
interrogation, prosecution,
surveillance and intelligence
collection. Police performance
is judged more by the number
of arrests and detection of
crimes and not by the level of
prevention. No standard
evaluating tools have been
evolved in policing in our
country to test this. It is
certainly a lacuna in the police
system, which hopefully one
day, will be rectified by
visionary and committed
individuals occupying the right
places in the police set-ups.
However, Navjyotiwasbornout
of a commitment to treat the
root and branches of crime,
and not just its deformed
outcome. In order to do so, we,
the police officers involved in
Navjyoti, identified one major
23. CSR TIMES | #01 | APRIL 2013
ARTICLE
crime-breedingpocketof Delhi
and initiated educational
programmes there. It was a
small beginning but with such
great potential that it
continued to generate its own
momentum.
Today, in that huge slum of
Yamuna Pushta, with a
population of over 1,50,000,
opposite the Red Fort of Delhi,
more than 7,000 children are
participating in Navjyoti's
p r i m a r y a n d r e m e d i a l
educationprogrammes.
But in order to get so many
children into this school, we
had to haveat leastthe mothers
being willing to let their
children attend. In these
poorest of families, each child
means an income of about Rs.
50 a day, i.e. Rs. 1,500 in one
month. This is earned by
begging, garbage picking,
plastic selling, child labour
diving into the Yamuna river to
retrieve the coins thrown in as
offerings, theft, pilferage, drug
selling, etc. Therefore, having a
large family does not matter to
these families – in fact, it is
deemed profitable. The girl
children additionally look after
theirsiblings.
To educate such children as a
part of preventive and welfare
policing, Navjyoti opened Gali
Schools, which provide
education to children with the
cooperation of their mothers,
fathers or guardians. And it is
this success story I want to
sharenow.
The Navjyoti Women's
Development Project brought
in aconceptof 'self-help-group'.
This involved motivating small
groups of women numbering 15
to 20, to contribute Rs. 2 to 5 per
day towards collective savings.
The money thus saved over the
month becomes their in-house
bank to be available for loans in
case of need, from time to time.
The women choose their own
group leader. The leader and
members are trained by the
Navjyoti facilitators to keep
records in a simple way that is
easily understood by them.
They hold periodic meetings,
motivate other women and
encourage them in self-help in
the form of a collective trade or
individualentrepreneurship.
I happened to attend their first
such assembly held at Gandhi
Darshan, by all the self-help
groups. There were, in all, over
700 women present. Starting
from nothing just eight months
ago, therewere now thirty-three
self-help groups. Collectively,
they had saved overRs. 1,50,000.
They had already opened
nineteen bank accounts.
Around twenty-onewomen had
received loans for various
r e a s o n s s u c h a s s e l f -
employment, education of their
children, family health matters,
marriagesof theirdaughtersetc.
They had puton displaysomeof
theproductsthattheyhad made
themselves and marketed. They
were now a confident group of
women with a sense of security
andself-confidence.
I asked them how things had
been before? They said that
there used to be loan sharks
roaming around the basti,
offering loans. For every Rs.
1,000 that was borrowed, the
lender would retain Rs. 50.
Thereafter, the borrower had to
return Rs. 25 per day for the
next 50 days. In other words,
pay back Rs. 1250 for borrowing
Rs. 1,000 (suffering in other
words, a loss of Rs. 300). The
intereston the loanvaried from
25 to 30%. Alongside, the
lenderwould keepwithhimthe
borrower's jhuggi papers,
identity card or ration card as
security. The person taking the
loan had to request for his
ration card to be given to him
for a day to buy his rations. In
t h e e ve n t o f d e l ay i n
repayment, the lender would
take a crowd of people to
threaten/harass/abuse/batter
the borrower. At times, police
help was also taken by the
lenderstorecovertheirloans.
Police performance is judged
more by the number of arrests
anddetectionof crimesand not
by the level of prevention. No
standard evaluating tools have
been evolved in policing in our
countrytotestthis.
And now, what is the situation,
I asked? They said that now
they only pay one rupee as
service charge for the loan
taken, which is also a part of
theirownsaving.
The same women of these
jhuggies, who had been
dependent on others, are now
marching forward towards
forming theirowncooperatives
oneday.
24. CSR TIMES | #01 | APRIL 2013
BEST PRACTICES
harat Heavy Electricals Limited, popular as, BHEL is the
largest engineering and manufacturing enterprise in India
Bin the energy-related/infrastructure sector, today. BHEL
was established more than 40 years ago, ushering in the
indigenous Heavy Electrical Equipment industry in India - a
dream that has been more than realized with a well-recognized
trackrecordof performance.
Social welfare and community development is at the core of
BHEL's CSR philosophy and continues to be a top priority for the
Company. It revolvesaround the Company'sdeeply-held belief in
the principle of symbiotic relationship with the local
communities, recognizing that business ultimately has a
purpose- toservehuman needs. Closeandcontinuous interaction
with the people and communities in and around the
manufacturing divisions has been the key focus while striving to
bring around qualitative changes and supporting the
underprivileged. Fostering the tradition of repaying the society at
large by actively participating in the welfare of local communities
through numerous Corporate Social Responsibility initiatives,
undertakes socioeconomic and community development
programmes. It has developed a CSR Scheme and its Mission
Statement on CSR is "Be a Committed Corporate Citizen, alive
towards its Corporate Social Responsibility". As an integral partof
the society, is moving forward by achieving the objectives of its
social responsibility. In the year gone by, the Company supported
innumerable social initiatives across the country by undertaking
projects in diversified areas like Health, Environment
Enrichment, Hygiene, Education, Community Development,
Self- Empowerment etc., supporting projects of Afforestation,
WaterConservation, providing PotableWateraccessories, besides
conducting Health Camps around the Units/Project sites for
Diagnosticand Medicinedistributionforcommonailments.
CSRinitiatives
ParticipationintheUN'sGlobalCompactProgramme:
As the world's largest global corporate citizenship initiative, the
Global Compact Program is the first and the foremost concern
which is exhibiting and building the social legitimacy of business
“Be a Committed Corp
and markets. BHEL has
continued to play a prominent
part in the United Nation's
Global Compact Programme
on CSR by promoting the core
values on human rights, labour
standards, environment and
anti-corruption and intends to
advance these principles
forming part of its strategy &
25. CSR TIMES | #01 | APRIL 2013
porate Citizen”
BHEL’s message of CSR
culture within its sphere of influence. The company demonstrated its commitment through regular
poolingofcommunicationof progress(COP)ontheUNGC
website. Periodically submits annual Communication of Progress on the relevant principleof global
compactinrespectof Environmentalissues.
Health,Safety& Environment
It has continued with its commitment towards conservation of the environment. The Company
successfully completed various Environment Improvement Projects (EIPs) during the year 2012.
These projects helped in enriching theenvironment, conservation of precious natural resources like
energy, water, fuel oil, coolantand mitigating theenvironmental pollution. Major ElPs cumulatively
26. CSR TIMES | #01 | APRIL 2013
completed in and around
units/
regions and sites, include: (i)
Rain Water Harvesting Plants;
(ii) Tree Plantations; and (iii)
d e ve l o p m e n t o f G re e n
Coverage.
Other key EIP initiatives
undertaken were in theareasof
Water Conservation Projects,
Energ y Saving Systems
utilizingefficienttechnologies,
Installation/ Improvement in
fumes extraction system,
Installation of Paint Booth,
Noise Level Reduction System,
Chemical Storage & Handling
S y s t e m , R e s o u r c e
Conservation (Lubricant/
m e t a l / C o o l a n t ) , a n d
U t i l i z a t i o n o f N o n -
Conventional Energy Sources.
Besides the above activities,
BHEL conducted Training and
awareness Programmes on
Environment, Health & Safety
and Skill Development
programmes for employees
including contractors' workers
etc.
Environment Management /
DevelopmentPolicy:
Its an environment friendly
company in all its activities,
products & services, besides
providing safe and healthy
working environment to all its
stakeholders and has made
UNGC programme as part of
the Company's strategy,
culture and day-to-day
operations. The company has
formulated its Sustainable
Development Policy as an
integral part of the Company's
strategy. A Budget of Rs 50
Lakhs plus 0.1% of Profit After
Tax (PAT) for the previous year
exceeding r 100 Crore is
earmarked for Sustainable
Development projects and
activities. For the year 2011-12,
an amount of Rs 6.41 crore is
provided towards sustainability
developmentexpenditure.
Health
Adopting a multi-disciplinary
approach towards CSR in which
health and medical care,
hygiene, sanitation, provision
of pure drinking water and
education take the top most
priority, BHEL initiated
projects titled 'Vision to all' in
(i) Guntur district of Andhra
Pradesh to carry out cataract
operations for five hundred
patients; and (ii) another
unique project, for carrying out
300 orbit surgeries for
eyepatients from Andhra
P r a d e s h , O r i s s a a n d
Chattisgarh commenced at
Sankar foundation Eye Hospital
inVishakhapatnam(AP).
EmployementGeneration
Projects related to self
employmentgenerationarealso
taken up every year where
women and youth are given
training in certain trades to
become self employable and in
someplacescertainequipments
havealsobeendistributed.
An home for the elderly has
beensetupatBhopal.
Self-empowerment:
Ta k i n g t h e f o c u s o n
Community development
beyond the basic needs of
h e a l t h a n d e d u c a t i o n ,
organizes various programmes
for talent upgradation of social
and economically backward
s t u d e n t s f o r t h e i r
empowermentinordertomake
them self-reliant. It supported
one such programme for
Apparel training of students
belonging to below poverty-
line families in Chhindwara
d i s t r i c t , M a h a r a s h t r a .
Organized a Cutting and
tailoring training programme
through NGOs for ladies in
Jhansi to provide livelihood
o p p o r t u n i t i e s a n d
empowermentofwomen.
Education:
The Company is promoting
v a r i o u s S c h o l a r s h i p
Programmes for students to
enable them pursue higher
education. Under these
p ro g ra m m e s, f i n a n c i a l
assistance is provided to wards
of widows in adopted schools
a n d v i l l a ge s by u n i t s.
Supporting need based
Construction of hostels,
classrooms, toilets etc. in
educational institutes.
DisasterManagement:
BHEL has compassionately
responded to the beck and call
of thevictimsdevastated bythe
earthquake in Sikkim by
initiating efforts for the
re f u r b i s h m e n t o f f o u r
government schools which
w e r e d a m a g e d b y t h e
BHEL
28. CSR TIMES | #01 | APRIL 2013
earthquake.
CSR Policies
( H e a l t h , S a f e t y a n d
E n v i r o n m e n t )
BHEL shares the growing
concern on issues related to
E n v i r o n m e n t a n d
Occupational Health & Safety
(OHS), and is committed to
protecting Environment in and
around its own establishment,
and to providing safe and
healthy environment to all its
employees. For fulfilling these
obligations, a Health, Safety &
Environmental Policy has been
formulated and implemented
throughmanagementsystems.
HumanRights
Principle 1) : Business should
support and respect the
protection of internationally
proclaimedhumanrights.
BHEL policies have been
meticulously drafted &
f o l l owe d , ke e p i n g t h e
principles of human rights, the
Constitution of India, labour
lawsetc.,inmind.
.
Principle2) : Makesuretheyare
not complicit in human rights
abuses
LabourStandards
Principle 3): Businesses should
uphold the freedom of
association and the effective
recognition of right to
collectivebargaining.
The Government of India has
enacted various labour laws to
adequately protect the interest
of the working class. These laws
are strictly adhered to in BHEL.
All Heads of BHEL units are
required to submit a report
aboutcompliancewithdifferent
laws. This is done to ensure that
the interests of the workers are
protected.
Apart from this, BHEL has
various bi-partite fora for
w o r k e r s , w h e r e t h e
issues/problems concerning
the workers are discussed and
settled.
Principle 4): The elimination of
all forms of forced and
compulsorylabour.
The company does not employ
forcedandcompulsorylabour.
C h i l d l a b o u r
Principle 5) :The effective
abolition of child labour
As per BHEL's Recruitment
Policy, the minimum age for the
employment is 18 years. No
person below this age can be
employed in BHEL, thereby
ensuring thatchild labouris not
employed in BHEL. In fact,
BHEL is "Zero Tolerance"
company regarding employing
ofchildlabour
Principle 6): Eliminate
discrimination in respect of
employment and occupation
Uniform set of rules are
mentioned in the 'The
Personnel Policy' of BHEL, that
apply equally to all employees,
irrespective of factors such as
sex, caste, religion, race etc. All
recruitments are conducted in
transparent manner, giving
equal opportunity toall citizens
o f I n d i a w i t h o u t a n y
discriminationwhatsoever
ANTI-CORRUPTION
Principle 10 : Business should
work against all forms of
c o r r u p t i o n , i n c l u d i n g
extortionand bribery.
-With a view to contain
corruption Government of
India has enacted "Right to
Information Act" giving right
to all citizens of India to seek
information besides other
rights of inspection etc. BHEL
has taken lead role in
implementing all provisions of
theactinletterandspirit.
- I n o rd e r to p re ve n t
co r r u p t i o n , a h o s t o f
'transparency measures' have
beeninitiatedcompanywide.
BEST PRACTICES
29. CSR TIMES | #01 | APRIL 2013
orporate Social Responsibility (CSR), Corporate Responsibility
(CR) or Sustainable Business are commonly heard, but rarely
understood, phrases. So what do they all mean? The Buzzwords
Cand beyond…
CSR is the process of assessing an organisation's impact on society and
evaluating their responsibilities. CSR begins with an assessment of a
businessand their:
Ÿ Customers
Ÿ Suppliers
Ÿ Environment
Ÿ Communities
Ÿ Employees
WhatdoesaCSRPolicyInclude?
Many organisations have a CSR Policy, which defines areas of concern and initiatives to improve
CSR : The Buzzword
...and Beyond
relations with the people and
environments affected by
business operations. CSR
policies often dictate a system
for monitoring responsible
performance.
Complianceandmore:
Successful CSR initiatives take
o r g a n i s a t i o n s b e y o n d
compliance with legislation
and leads them to honour
ethical values and respect
people, communities and the
natural environment. CSR is
sustainable - involving
a c t i v i t i e s t h a t y o u r
organisation can maintain
without adversely affecting
yourbusinessgoals.
Being Green and environment
friendly:
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Siddharth Das Gupta
30. CSR TIMES | #01 | APRIL 2013
CSR is about more than
environmental responsibility
or having a recycling policy.
CSR is about considering the
whole picture, from your
internal processes to your
clients,taking ineverystepthat
yourbusinesstakesduringday-
to-dayoperations.
CSRis...
A long-term approach to
business that addresses the
needs of communities, people
and their employers. CSR
provides frameworks for
successful enterprise that is
h a r m o n i o u s w i t h i t s
surroundings. CSR is an
opportunity to generate
honest, authentic good-news
stories that a business and its
communitycanbeproudof.
CSR must be sustainable -
remaining a fundamental part
of any business regardless of
changingfortunes.
The Benefits of Corporate
SocialResponsibility
In a very recent survey --“88%
of consumers said they were
more likely to buy from a
company that supports and
engages inactivities to improve
society. ”
Consumers increasingly don't
accept unethical business
practices or organisations who
actirresponsibly.
Organisations are now very
much accountable for their
actionslikeneverbefore.
Benefits of CSR in building
business.
CSR should not be viewed as a
drain on resources, because
carefully implemented CSR
p o l i c i e s c a n h e l p a n y
organisationto:
Ÿ Winnewbusiness
Ÿ Increasecustomerretention
Ÿ Develop and enhance
r e l a t i o n s h i p s w i t h
customers, suppliers and
networks
Ÿ Attract, retain and maintain
a happy workforce and be an
Employerof Choice
Ÿ Save money on energy and
operating costs and manage
risk
Ÿ Differentiate yourself from
yourcompetitors
Ÿ Generate innovation and
learning and enhance your
influence
Ÿ Improve your business
reputationandstanding
Ÿ Provide access to investment
andfundingopportunities
Ÿ .Generate positive publicity
and mediaopportunitiesdue
to media interest in ethical
businessactivities
What is sustainable
business?
Sustainable Business is another
way of referring to, and talking
about, Corporate Social
Responsibility (CSR). But
whether you call it Ethical
Business, Corporate Social
Responsibility or Sustainable
Business, you're talking about
thesamething.
All of these terms refer to
systems and strategies for
businesses to operate in a
responsible manner that
b e n e f i t s t h e i r p e o p l e ,
c o m m u n i t i e s a n d
environment.
Thedifference?
Different countries, industries
and government departments
approach ethical business
drives from slightly different
angles. So let's look at the
subtle differences between
Ethical Business, Corporate
Social Responsibility and
SustainableBusiness.
Corporate Social
Responsibility
CSR is the process of assessing
an organisation's impact on
society and evaluating their
responsibilities.
EthicalBusiness
Whenbusinessesfocusontheir
code of ethics or a code of
conduct they may label their
approach 'Ethical Business'.
Ethical Businesses often
emphasises:
Ÿ The source of products and
services
Ÿ Businessconduct
Ÿ Q u a l i t y a n d s e r v i ce
standards
Consumer-led organisations
oftenadoptan Ethical Business
plan in order to demonstrate
and reassurecustomersof their
ethical credentials. But it is
equally important that those
businesses also assess and
report on all areas of their
business activity, including
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31. CSR TIMES | #01 | APRIL 2013
s o c i a l , e c o n o m i c a n d
environmentalimpacts.
SustainableBusiness
S u s t a i n a b l e B u s i n e s s
essentially means being able to
continue, or operating in a way
that is conducive to ongoing
trading. Sustainable Business
is an important concept
because it recognises the
importance of businesses
continuing, particularly in
respect of providing jobs and
customforsuppliers.
Recently, Sustainable Business
hasexpandedtobecomeamore
holistic view of business
activity - reporting on impacts
to people, the planet and profit.
People, planet, profit is also
known as the Triple Bottom
Line.
The Small Business Need for
CSR
Accounting for the Triple
Bottom Line is known as full
cost accounting - something
thatmanylargecorporationsare
committing to. When larger
corporations examine their
social responsibility, they assess
theirsupplychain, becausetobe
truly accountable they need to
understand the impacts that
their suppliers have on their
people, environment and
communities.
Therefore it is increasingly
important for small to
medium-sized businesses to
demonstrate a commitment to
Corporate Social Responsibi-
lity and Sustainable Business,
particularly when trying to
securecontracts.
A p r o p e r p l a n n e d
implementation of these will
surely help any organisation to
have a solid sustainable base in
thebusinessworld.
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