Corporate social responsibility (CSR) aligns business goals with social values to benefit both society and companies. While some see CSR as charity, it is most effective when social impact is creatively integrated into business strategies. Done right, CSR can boost profits by attracting customers, retaining employees, cutting costs, and increasing revenues, all while generating positive social change. For CSR to be successful, companies must develop workable strategies, implement them effectively over the long term, measure results, and manage public perception of their efforts.

1. CSR* is not charity! * C orporate S ocial R esponsibility Pradeep N Tonpe 20 November 2010

6. How do Organizations view CSR? Type CSR? Comment Effectiveness Charity Organization commit to ‘donate’ a fraction of their profits to charitable causes -Simple but not sustainable: What if the profits decrease -Very difficult for executives to ‘justify’ and show Value Low Outsourced Contribution to an NGO/ organization that minimizes negative impact of business operations -Simple but not sustainable: What if the profits decrease - But can help organization ‘loosely’ justify CSR investment by tying Business Goals to Social Impact Medium Business Goal Creatively align business Goals for positive societal impact -Most effective and sustainable -Executives can justify investment with ROI! High

7. How do Organizations view CSR? Type CSR? Comment Effectiveness Charity Organization commit to ‘donate’ a fraction of their profits to charitable causes -Simple but not sustainable: What if the profits decrease -Very difficult for executives to ‘justify’ and show Value Low Outsourced Contribution to an NGO/ organization that minimizes negative impact of business operations -Simple but not sustainable: What if the profits decrease - But can help organization ‘loosely’ justify CSR investment by tying Business Goals to Social Impact Medium Business Goal Creatively align business Goals for positive societal impact -Most effective and sustainable -Executives can justify investment with ROI! High Is this really possible?

8. Aren’t Business Goals and Social Responsibility always in conflict?!

9. Societal Impact Business Impact Income Generation: The farmers with un-utilized/ degraded land grow pulpwood and the company gives a buy back guarantee & an assured minimum price. 1000 + of poorest farmers (having low credibility with banks) benefited Raw material base around the mills: Logistical efficiencies + assured supply … Minimize Environmental Damage -Uses its by-products to power its operations -Regains heat from effluents to warm process water and thereby further reduces carbon emissions In 2005 and 2006, the company saved US$4.4 million through a 2 percent reduction in fuel consumption Minimize Environmental Damage INR 1.1 B per annum savings in Energy Cost Income-generating capabilities for underprivileged rural women -Increase rural family incomes : put more money in their hands to purchase products that HLL makes -Access to unexplored rural areas

10. Making CSR work Negative influences stronger than positive Driven Top down, from CEO No CSR initiative is better than a poorly managed or prematurely closed initiative Engage Employees Keep a long term perspective Manage Media Place Customer first Cost Saving Ask tough questions Higher Margins Workable CSR Strategy Effective Implementation Measure Results Manage Perception

11. Workable CSR Strategy Effective Implementation Driven Top down, from CEO Engage Employees Place Customer first Ask tough questions Workable CSR Strategy Measure Results Manage Perception Sponsorship is key. CSR IS an investment with ROI- if you cannot justify, revisit the strategy Employees can innovate to align business objectives to social goals. Great way to motivate and retain employees! Cliché d as it sounds, if the customers expectations are not met by the products and services arising from socially responsible initiatives, it is not sustainable - How would the organization re-align CSR investment during tough times? - Is the impact on the balance sheet clear and explicit? Keep a long term perspective Like anything strategic, be in it for the long haul. Do not expect immediate returns

12. Effective Implementation Start Small & simple Workable CSR Strategy Effective Implementation Measure Results Manage Perception Avoid premature closure Implement like any other Business Initiative Set Goals, timelines, assign resources, manage risks Communicate Internal- Employees, Sponsors External- Customers, Public A prematurely closed CSR can cause considerable damage Celebrate Quick hits (energy, paper..) and gradually move to alignment of social and business goals

16. Indian Perspective It took Britain half the resources of the planet to achieve (their) prosperity. How many planets will a country like India require? M.K. Gandhi Demand for food, water, housing, education, health care Current population > 1.1 billion. Overtake China by 2026, as most populous: 1.5 billion Can we work together to build a literate, healthy, capable society with enough jobs ? Income Disparity – social unrest

18. Thank you!