National & International Trends in CSR


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a look at the different national & international trends seen in the field of Corporate Social Responsibility (CSR)

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  • CPCB – central pollution control board
  • as a safeguard against frauds like Enron.It accomplishes quality and transparency in public companiesSafeguarding children against unfair exploitation.Children losing their job and be impoverished. Need to design CSR strategy carefully
  • Challenge need to be attended GSAnalyses issues of corruption & poverty wich create a gap betwn privileged and under privileged sections od society Encouragement of Holistic Growth, more than just making profits for shareholders
  • National & International Trends in CSR

    1. 1. Jash Desai# 306 Harsh Gupta# 308 Kushal Karamchandani# 309 Chittesh Khilnani# 310 Nachiket Kulkarni# 311 Ashwin Mehta# 313 Pratik Mehta# 314 Ishan Parekh# 315 Ankit Shah# 317
    2. 2.  The Government understands that ―CSR is at heart a process of managing the cost and benefits of business activity to both -  Internal stakeholders (employees, shareholders investors)  External stakeholders (public governance , community members)
    3. 3.  Government of India conducted a limited review and the main focus of the review was –  CSR policy  System of planning for CSR activities  System for fixation of targets for CSR activities.  Budget allocation and its utilization for CSR activities.  Monitoring mechanism for implementation for CSR activities.
    4. 4.  The government has created a framework for delivering CSR activities to fill the time – gap between the growth and distribution.  The government has developed the Voluntary Guidelines for CSR for India as well as for multi- and trans-national and it can benefits for their overseas production.
    5. 5. • Kendriya Vidyalaya schoolsEducation • Seeds, fertilizer, farm equipments, warehousing, cold chains, food processing and organic foods. Agriculture & Food industry • Send various documents/notices through electronic mode. • Audio visual electronic communication i.e video conference Go Green • NICNET (1987)National Satellite-based Computer Network • Offered free hardware and software to the State Governments. E- Governance
    6. 6. The CSR policy should normally cover the following core elements: 1) Care for all stakeholders. 2) Ethical functioning. 3) Respect for workers rights and welfare. 4) Respect for environment.
    7. 7. 5) Activities for social and inclusive development. 6 ) Respect for human rights.
    8. 8. 1) Identification of projects, setting measurable physical targets with timeframes, time schedule and monitoring. 2) allocate specific budgets for CSR activities 3) To share experiences and network with other organizations. 4) Disseminate information on CSR policy and activities.
    9. 9. Govt Initiatives in drawing the rules and regulations for CSR activities in Industrial Sector
    10. 10.  Govt. of India has drawn more than 24 Acts and Rules since the disastrous event of Bhopal Gas Tragedy in 1984.  These Acts are important as part of government initiative in order to protect the environment from devastating events  The Govt. of India has also formed bodies or organizations which keeps a check on the environmental pollution
    11. 11.  Drawn Immediately after the Bhopal Gas Tragedy, 1984  The gases escaped from the unit caused death of thousands of people  Apart from death of people, certain lethal diseases also got genetically transmitted in the families living nearby.  This enforced the government to draw environment protection Acts and Rules so that these incidents don‘t repeat again.
    12. 12.  It mandates certain policies for every industry to follow in order to protect the environment surrounding it  Main agenda under this Act was ◦ To co-ordinate the activities of the various regulatory agencies already in existence ◦ To appoint environment officers to check environmental pollution ◦ To improve the quality of life by protection of environment ◦ To protect the forest and wildlife in the country
    13. 13.  Standards for emission or discharge of environmental pollutants were drawn under this Act  In order to protect environment from the hazardous impact, government initiated organizations are formed to enforce the environmental reforms.
    14. 14.  Basically drawn for industrial projects  It mandates waste disposal policies and necessary standards for keeping a check on environmental pollution  It mainly focused on providing legislations on ◦ Forest and wildlife protection ◦ Water protection laws ◦ Air protection laws ◦ General environmental laws
    15. 15.  The products which fulfill the quality requirement of a product standard are provided with a ―ECOMARK‖  The objectives of the scheme was ◦ To provide an incentive for manufacturers and importers to reduce adverse environmental impact of their products ◦ To reward genuine initiatives from the companies to reduce the adverse environmental impacts ◦ To encourage citizens to purchase products which are eco-friendly ◦ To improve the quality of environment and to encourage optimum usage & management of resources
    16. 16.  A steering committee ◦ Determines the product categories for coverage under the scheme ◦ Formulate strategies for promotion, implementation, future development, and improvements in the working of the scheme  A technical committee (set up by CPCB) ◦ Identifies the product to be selected and individual criteria of process to be implied  Bureau of Indian Standards ◦ To assess and certify the products ◦ Drawing of contracts with the manufacturers allowing the use of label on payment of a fee
    17. 17.  Inviting objections from the public within sixty days from the date of publication of the said notification, against the intention of the Central Government to impose restrictions and prohibitions on the expansion and modernization of any activity or new projects being undertaken in any part of India unless environmental clearance has been accorded by the Central Government or the State Government in accordance with the procedure specified in that notification  Ex- Navi Mumbai Airport project was halted due to EIA report
    18. 18.  These rules apply to following hazardous conditions ◦ Waste being disposed in water bodies or land ◦ Wastes arising out of the operation from the ships ◦ Radio-active wastes as covered under the provisions
    19. 19.  Under this CSR Act, government of India prohibited the usage and handling of Azo dyes  These dyes are mainly used in textile industry for providing colors to the fabric  This dyes is carcinogenic in nature  Azo dye is also having a slow disintegration rate and excess use can cause soil infertility
    20. 20.  These rules apply to all persons who generate, collect, receive, store, transport, treat, dispose, or handle bio medical waste in any form.  It shall be the duty of every occupier of an institution generating bio-medical waste which includes a hospital, nursing home, clinic, dispensary, veterinary institution, animal house, pathological laboratory, blood bank by whatever name called to take all steps to ensure that such waste is handled without any adverse effect to human health and the environment.
    21. 21. Tata Council of Community Initiatives.
    22. 22. Developing the CSR framework
    23. 23.  TCCI – Tata council of community initiatives  Created in 1996  CII (Confederation of Indian Industry) had approached Mr. J.R.D Tata and Mr. R.N Tata for the same  Context was to see how Indian business world respond to its responsibilities.  Tata's first decided to look into their own group of companies first and design a framework for them.  The significance of can be seen from the involvement of the 2 senior directors incharge of the project
    24. 24.  Its not just setting up foundation or trust to pursue philanthropic activities but to embed TCCI into business.  The theoretical concept of CSR needs to be integrated into day to day activity.  TCCI also helps in exploring strategies that can lead to community development The methodology adopted was not of forceful pushing down of norms but building a consensus among the companies and creating a passion for inclusive growth.
    25. 25.  It was never about finding solutions to the ills but about creating sensitivity about them and sharing ideas and expertise to find the most feasible solution.  Over 28088 registered volunteers.  Some of the key changes brought are :-
    26. 26.  Setting goals and indicators of human development thus bridging gap between everyday activity and overall growth.  Improve quality of life for all  All the efforts and stories are documented for future reference and learning .
    27. 27.  TCCI put together key perspectives and common threads and brought out guidelines.  Companies enlisted their core competencies to find imaginative and creative ways to meet society needs.  Example –  TCS led an initiative of adult literacy programme. TCCI took this at group level to take it across 9 states benefiting 1,11,265 people.  MBBS course of Maharashtra government has included a course on learning disability for helping children with learning disability.
    28. 28.  TCCI encouraged all major companies to uniformly adopt environmental management system such as ISO 14000 series, the global reporting initiatives, and SA 8000.  It had an impact on over 85% of companies and 90% of employees.
    29. 29.  This reinforces the belief that CSR is about building livelihoods.  TCCI helped to reorient programmes to encourage the creation of microenterprises, self employment, and to promote social entrepreneurship.  They did not help in providing eye operations, etc but they helped in forming SHG, increase income levels, provided skills, etc.
    30. 30.  Early forms of CSR were financial grants for various causes  These were to indicate the virtues of the company.  Few instances eg. BITS Pilani, the approach was philantrophical.
    31. 31.  Philanthropy ------> Stakeholder  Programs in alignment with their vision and mission statement. Main reasons for shifting were :  Confinement of investment.  Negligible Community participation  Low levels of accountability and transparency issues in implementation phase
    32. 32.  CSR Lite  CSR compliant  CSR strategic  CSR Integrated  Deep CSR
    33. 33.  Charity Trucks
    34. 34.  Companies aligning advertisement campaigns with CSR programs  CSR to be initiated by employees of all levels.  CSR will be looked upon as a tool for competitive advantage.
    35. 35.  AOL Time Werner - $98.7 Bn  Enron - $11 Bn to shareholders, overestimated profits by $500 Mn  Deutsche Telekom - $28 Bn
    36. 36.  One of the 1st to debate question of corporate governance.  The largest companies opted for dual strategic leadership pattern.  Cadbury code of 1992 was 1st code of governance. 1. The CEO and Chairman of companies should be separated. 2. Boards should have at least three non-executive directors, two of whom should have no financial or personal ties to executives. 3. Each board should have an audit committee composed of non-executive directors.
    37. 37.  Institutional investors controlled about 80 % of UK equity market as of 31/12/2003  Revised Statements of Principles set by Institutional Shareholders Committee (ISC) in 2002 & 2005
    38. 38.  Association of British Insurers (ABI) issued its Disclosure guidelines on Socially Responsible investment.  These update and replace the Socially Responsible Investment (SRI) guidelines, launched by the ABI in 2001, which call on Boards of companies to confirm that they have assessed and are managing environmental, social and governance risks.  The changes to the guidelines highlight aspects of responsibility reporting on which shareholders place particular value.  They also take into account new EU and UK legislation, including the Business Review.
    39. 39.  Encourages oil, gas, & mining companies to increase transparency over payments by companies to governments for extracting valuable resources.  Countries rich in natural resources such as oil, gas, and mining have tended to under-perform economically.  Higher incidence of conflict, & poor governance.
    40. 40.  It is hoped that by encouraging greater transparency in countries rich in these resources, some of the potential negative impacts can be mitigated.  Benefits for implementing countries include an improved investment climate by providing a clear signal to investors and international financial institutions that the government is committed to greater transparency.  EITI also assists in strengthening accountability and good governance, as well as promoting greater economic and political stability.  This, in turn, can contribute to the prevention of conflict based around the oil, mining and gas sectors.
    41. 41.  Companies earlier used to be skeptical about CSR.  Today there is a conscious effort to consider CSR in mainstream activities.  Certain companies however practice CSR as a PR activity whilst having no real contribution.  20 of the largest fund managers for UK pension industry & top 7 in the Charity sector are members of the UK Social Investment Forum.  Such Coalitions in UK have resulted in emphasizing of many social issues such as climate change, HIV/AIDS, supply chain labor conditions.
    42. 42.  Government must intervene the marketplace more.  Constant updates on CSR initiatives from all partners.  Inclusion of business ethics in curriculum of business schools & universities.
    43. 43.  5,000 ‗red and yellow vans‘ on the road everyday.  The company acknowledged that its current business model, based on fossil fuels, is far from sustainable.
    44. 44.  The first phase of the company‘s approach to carbon management has been developed in partnership with the Carbon Trust.  evidence base was used within a facilitated workshop presentation to the Express UK Sustainability Board to identify and prioritize work streams going forward.  DHL Express UK‘s carbon impacts fall predominantly into two areas: energy from buildings and the fleet/transport network.  A comprehensive carbon management plan was then developed for the UK across each of the areas of impact and a detailed calculation of the company‘s carbon footprint undertaken 1. Premises: 28,463 CO2 tonnes; 2. Road transport: 104,883 CO2 tonnes; 3. Total emissions: 133,346 CO2 tonnes.
    45. 45.  This approach also recognized the importance of gaining employee ownership in implementing any carbon management programmes.  Previous attempts at similar initiatives had been restricted by either budgeting or resources and also by not necessarily taking a holistic approach to the issue within and across the business.  Project plans per work stream were produced by the teams who will be implementing them and these were presented by those teams at the Sustainability Board where they were signed off.  Across the Fleet/Transport work streams, the company sees the opportunity for innovation, especially in alternative fuels and technology.
    46. 46.  This program is seen as part of the company‘s corporate code and core values. It also is seen as working across sustainable development themes, i.e. linking environmental, social and community – accepting where the company is in the community and what steps it takes to address the impacts it understands its business creates.  Suzanne Worrall, DHL Express UK‘s Corporate Responsibility Manager explained, ―Through efficiency measures and robust, innovative management, cutting carbon can translate into cutting costs and real business benefits. If we can get this right it will fundamentally affect the business model and how we undertake our business and serve our customers‖
    47. 47.  Emphasis on stakeholder theory  Sustainability  Corporate citizenship  Ethical and responsible leadership  Corporate governance  Acts
    48. 48. Widened focus Technological innovation Human rights Equality distribution of benefits Sustainable environment
    49. 49. American Business aspects Laws and regulations Encouraged volunteerism Communities resources
    50. 50.  Closer understanding on managing ethical risks  Compliance to government laws and adherence to corporate governance  Ethics training receiving much attention at business leadership level
    51. 51.  Integrity in all activities and conduct of the leader  Companies promoting ethical business practices  Consumers identifying with these companies  Companies publicizing general strategy of CSR practices
    52. 52.  Business contributing to Society: Carnegie (the steel tycoon)
    53. 53. Need Promotion of Social Responsibility among business organizations started because of the business scams centering around accounting frauds like • Enron • World Com • Tyco • Bhopal Gas Tragedy and many more
    54. 54.  Sarbanes-Oxley Act passed in 2002  Financial reporting, independent audits, accounting services  Child Labour Deterrence Act
    55. 55.  Gap in sharing of Best practices among industries and regions.  Challenge of Global Sustainability.  Urgent need to promote through leadership.  Business organizations cannot avoid issues related to morality and good governance.
    56. 56. According to the Economist, ―The simple solution is that the business should concentrate on the sweet spot where initiatives are good for both profits and welfare.‖
    57. 57.  ―At Microsoft, we have a passion for technology. One of the best ways we can serve our communities is by working with our partners in the public and private sectors to find ways technology can help solve some of today‘s most pressing societal challenges. The possibilities are really exciting and our ambitions are big.‖  — Jean-Philippe Courtois, President, Microsoft International