CSR-An Overview: Relevance of CSR Today
CSR-An Overview: Relevance of CSR Today
CSR-An Overview: Relevance of CSR Today
The ideas of CSR can be discerned from the three words contained within its title phrase: Corporate' ,'Social' and 'Responsibility. Therefore in a broader senses CSR covers the responsibilities corporations have towards society within which they are based and operate, not denying the fact that the purview of CSR goes much beyond this. Over the past decades a growing number of companies have recognized the business benefits of CSR policies and practices. Companies have also been encouraged to adopt and/or expand CSR efforts as a result of pressures from Customers, suppliers, Employees, Communities, investors, activist, organization, and other stakeholders. Relevance of CSR today CSR as a strategy is becoming increasingly important for businesses today because of these identifiable trends.
1. Changing Social Expectations Consumers and society in general expect more from the companies whose products they buy. This sense has increased in the light of recent corporate scandals, which reduced public trust of corporations, and reduced public confidence in the ability of regulatory bodies and organizations to control corporate excess.
2. Increasing Affluence This is true within developed nations, but also in comparison to developing nations society in need of work and inward investment is less likely to enforce strict regulations and penalize organizations that might take their business and money elsewhere.
Benefits of CSR
1. Improved Financial Performance An recent study has found that Stake holder balanced companies showed four times the growth rate and eight times employment growth ,when compared to companies that focused only on shareholders and profit maximization.
2. Enhanced Brand Image and Reputation A company considered socially responsible can benefit both by its enhanced Reputation with the Public as well its reputation within the business.
3. Increased sales and customer loyalty. A number of studies have suggested a large and growing market for the products and services of companies to be socially responsible.
4. Increased ability to attract and retain employees. Companies perceived to have strong CSr commitments often found it easier to recruit employees particularly in tight labour markets. Retention levels are higher too.
5. Reduced Regulatory oversight Companies that demonstrate that they are engaging in practices that satisfy and go beyond regulatory compliance requirements are given less scrutiny and more free reign by both National and Local Government Entities.
6. Easier access to Capital It is clear that companies addressing ethical, social and environmental responsibilities have rapidly growing access to capital that might not otherwise have been available.
CSR in India
Corporate Social Responsibility is on the rise all over the world and in India also. Civil Societies, consumers and other actors have increased pressure on companies to adhere to social and environmental standards and this pressure has impact on the business in India.
Corporate Social Responsibility Policy The Company shall continue to have among its objectives the promotion and growth of the national economy through increased productivity, effective utilization of material and manpower resources and continued application of modern scientific and managerial techniques, in keeping with the national aspiration; and the Company shall continue to be mindful of its social and moral responsibilities to consumers, employees, shareholders, society and the local community.
Community & Rural Welfare ACC community development activities revolve around the under-privileged community that lives in the immediate vicinity of our cement plants and is thus more dependent on us. The range of our activities begins with extending educational and medical facilities and goes on to cover vocational guidance and supporting employment-oriented and income-generation projects like agriculture, animal husbandry, cottage industries by developing local skills, using local raw materials and helping create marketing outlets.
At all our cement factories we share our amenities and facilities with members of the local community. This includes sharing education and medical facilities, sports and recreation. Wherever possible we share access to Bore Wells, drinking water and the usage of colony roads.
Education Education is imparted not only to children of ACC employees but also more importantly to children from rural areas who do not have access to any medium of information or education. ACC schools maintain high standards and are open to other children of the vicinity. Often these schools are the most preferred centers of learning in the district and adjoining areas. Wherever possible, ACC provides funds and infrastructure to help set up local schools, colleges and centers for learning and education.
Healthcare ACC takes pride in providing various forms of medical assistance to the families of our employees and also to all those living in surrounding villages. Each factory has a medical center with full-fledged doctors and the latest of basic equipment. Mobile medical services are provided in the vicinity and regular medical camps are held to eradicate diseases, offers medical help, treatment and preventive care.
ACC has come out to provide support to the State and National health initiatives such as the eradication of malaria, dengue fever and the dreaded HIV.
IndianOil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 271,074cr and profit of Rs. 10,221cr for the year 2009-10. IndianOil is the highest ranked Indian company in the latest Fortune 'Global 500' listings, ranked at the 125th position. IndianOil's vision is driven by a group of dynamic leaders who have made it a name to reckon with. IndianOil has figured among the best employers in the Indian workplace as per the tenth annual edition of the 'Best Companies to Work For' survey unveiled by the Business Today magazine in its latest edition. IndianOil controls 10 of India's 20 refineries. Corporate Social Responsibility At IndianOil, corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. The Corporation's objectives in this key performance area are enshrined in its Mission statement: "To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience." As a constructive partner in the communities in which it operates, IndianOil has been taking concrete action to realize its social responsibility objectives, thereby building value for its shareholders and customers. The Corporation respects human rights, values its employees, and invests in innovative technologies and solutions for sustainable energy flow and economic growth. In the past five decades, IndianOil has supported innumerable social and community initiatives in India, touching the lives of millions of people positively by supporting environmental and health-care projects and social, cultural and educational programmes.
IndianOil Academic and Sports Scholarships IndianOil awards 2600 Scholarships for meritorious students all over India, under the IndianOil Scholarships Scheme for each academic year. As part of IndianOil's social responsibility programme, the scheme provides for attractive scholarships to bright students selected on 'merit-cum-means' basis. For each academic year, 2600 scholarships covering the first year students of 10+ / ITI, Engineering, MBBS and MBA, have been formally announced through newspaper advertisements inviting applications under the IndianOil Scholarships Scheme. As part of the scheme, special encouragement is being given to girl students, physically challenged students, and students from J & K as well as the Northeast States. IndianOil Sports also awards scholarships to promising young players with a view to encourage talent and create a pool of sportspersons from whom to select sport appointees to the Corporation.
Green Initiatives Low Sulphur (0.5%) Diesel was introduced in metros from April 1996. Extra-low Sulphur (0.25%) Diesel was introduced in the eco-sensitive Taj Trapezium area from September 1996, in Delhi from October 1997, and across the country from 1st January 2000. Diesel with 0.05% sulphur content was introduced in the metros in 2001. Unleaded Motor Sprit (petrol or Gasoline) was made available all over the country since February 1, 2000. Green fuels (petrol and diesel) conforming to Euro-III emission norms have already been introduced in 13 cities/states; the rest of the country is getting BS-II fuels. The Centre has been certified under ISO-14000:1996 for environment management systems. All IndianOil refineries fully comply with the prescribed environmental standards and incorporate state-of-the-art effluent treatment technologies. Sustained efforts are being made to further improve the standards by introducing new state-of-the-art technologies further improve the existing standards and facilities.
CSR Budget Allocation (approx Rs.10 crores) National Calamities : 35% Donations : 5% Community Development: 30% Indian Oil Scholarships: 20% Other activities: 10%
Chevrolet
CSR Initiatives Children's Traffic Education Park The Traffic Education Park in Sayajibaug, Vadodara was recently revamped and reopened to the public with a helping hand from Chevrolet. The park was jointly inaugurated by the Baroda Municipal Commissioner, Mr. Ashwini Kumar, the City Mayor, Dr. Jyotiben Pandya, the Chairperson of Vadodara Marathon, Ms. Tejal Amin, Baroda Police Commissioner, Mr. Satish Sharma, Mr. Lowell Paddock President and Managing Director, General Motors India and other distinguished guests. GM India along with Vadodara Marathon came together to restore the park to its original splendor. Musical Concert Disha, the women council at GM India headquarter, Gurgaon organized a musical concert for 'Sankalp Welfare Society', a Gurgaon based NGO, to mark 15 years of its inception. Mr. Lowell Paddock, President & Managing Director, General Motors India was the honorary Chief Guest at the occasion. The musical concert was aimed at raising funds for sponsoring education of underprivileged children.
Walking for a Cause On World Environment Day (5th June 2011), GM India's team of 110 volunteers joined the Go Green team at the Tech Centre in association with the Corporate Social Responsibility (CSR) Panel of Confederation of Indian Industries (CII). GM had the highest number of walkers. Drawing Competition To spread awareness about environment, GM India organized a drawing competition for school children of various age groups from the nearby village Halol. Renovation and repair of homes destroyed by natural disasters GM India provided relief to victims of natural disasters, supported educational/technical institutions like Industrial Training Institutes (ITIs) and Hospitals, helped renovate and repair homes of those impacted by floods and earthquakes. Toy donation drive for a local NGO and basic donation drives towards flood relief and rehabilitation work in Karnataka.
Community Health Care RIL has developed Community Medical Centres near most of its manufacturing divisions to provide comprehensive health services covering preventive, promotive and curative health care services to the community from neighbouring villages. The manufacturing divisions conduct regular health checkups for children in schools of their respective neighbouring regions. Doctors advise children and their parents on various health care issues and personal hygiene. Medical camps were organized by all sites benefitting patients from nearby villages and tribal areas. All patients are given medicines free of cost. As required, all sites have provided ambulance support to roadside accident victims to shift them to hospitals / nursing homes. Patalganga site has conducted a series of health awareness programs in local schools and nearby small scale industries. Drishti A unique joint initiative of RIL and National Association of Blind, Project Drishti has undertaken over 9,000 free corneal graft surgeries for the visually challenged Indians from the underprivileged segment of the society. It is the largest corneal grafting surgery project enabled by a single corporate entity in India.
The Primary Health Centre (PHC) at Dahej, Bharuch district, adopted by RIL under the National Rural Health Mission Programme caters to the community health needs of 23 surrounding villages. In 2004, RIL established the PHC at Gadimoga. The PHC has six member medical staff with all the amenities such as two-bed nursing room. Medicines are offered free of cost. Further, RIL runs two sub-centres of the PHC at Bhairavapalem and Laxmipathipuram. RIL is also constructing a new 30-bed PHC and the existing PHC will be shifted to the new building. Dhirubhai Ambani Hospital at Lodhivali, Maharashtra continues to play a significant role in improving the quality of life in surrounding communities. It extends prompt and specialized services to the Mumbai-Pune highway accident victims. Trauma patients are provided free lifesaving treatment. Besides taking care of hospitalization requirements, the hospital provides poor patients and senior citizens subsidized treatment - both in the outpatient and in-patient departments. ART clinic, a public-privatepartnership initiative between RIL, CII and NACO, offers free of cost treatment to HIV/AIDs patients. In association with the Lions Club, the hospital conducts cataract surgery camps annually.
Safety initiatives for community Road Safety System is most cost effective and easy to use tool for improving public safety and thus offering a lifeline to humanity. Hazira Manufacturing Division has institutionalised road safety training and has reached out to over 158,000 tanker / truck drivers who visit the plant for pick-up and dropping feedstock / finished goods. The training focuses on safe operation of fleet vehicles by eliminating unsafe driver and driving behaviors and reinforcing aspects of save lives, reduce injuries, prevent crashes, control driver performance, minimize risk and liability. A centre dedicated for training truck drivers for transportation of hazardous goods has been established for round-the-clock training. No driver is allowed inside complex without training. Environment initiatives for the community A zero garbage campaign has been launched in Reliance Townships to propagate the concept of solid waste (dry and wet waste) management. This is a part of cleanliness drive for a disease-free environment at employees' township, the surrounding villages of Hazira Manufacturing Division and also Surat city in Gujarat. To reduce plastic litter, as part of its commitment towards responsible care and product stewardship intervention, Hazira Manufacturing Division in partnership with an NGO is working for social and economical security of woman rag-pickers. Under the programme, direct sale of waste PET bottles to processing units is facilitated, thus eliminating channel of waste merchants and promoting, woman rag pickers' group. This program is being extended to over 350 slums of Surat and also various other RIL locations in Gujarat and other states. Livelihood Support Programmes RIL has always been at the forefront in implementing initiatives especially for the welfare of rural women and youth of surrounding villages through various self-help groups (SHG). Continuing with the services and keeping up the tradition, Hazira, Vadodra, Nagothane, Gadimoga and many other manufacturing divisions offer training programmes through various SHGs help the rural women and youth to be "self sustaining" and generating income for themselves and supporting their families. It is a matter of great pride that many of the beneficiaries of these training programmes are earning a decent amount of livelihood and are financially supporting their families. For the womenfolk, courses are offered for dress making and designing, beauty culture and health care, hospital attendant (Helpers for Hospital and Nursing Homes); while for the youth of the surrounding communities, courses such as plumbing and hand pump repairing training, computer hardware repair, motor vehicle driving, mobile repairing and doormat making etc. Further, training in horticulture cultivation and fruit saplings are also given to the farmers of the adjoining villages.
Improving quality of agricultural produce RIL conducted several programmes and participated in farming related exhibitions to propagate advanced technologies in the production, handling, storage and distribution of agricultural products. Use of Leno bags made out of polypropylene (PP) was extensively promoted amongst farmers. Leno bags are immensely beneficial to farmers as it reduces handling losses in fruits and vegetable products.
RIL demonstrated use of advanced farming techniques by use of plastic in enhancing producitivity, reducing losses and increase in earnings and distributed promotional materials. Filling, storing and transportation trials were conducted with PP leno bags to help remove apprehensions of users in adopting advanced packaging solutions.
Supporting Indian Culture During the traditional Navratri garba festival, gifts to girls were distributed individually by RIL. Several institutions organizing Navratri festival at Jamnagar, Chorwad, Ahmedabad, Gandhinagar, Mumbai, etc. were given financial assistance. RIL sponsored a state level navratri festival under the banner of Gujarat Industries Navratri Festival Society. Unlike other commercial Navratri venues, the entry here is free for all; modern and classical garba competitions as well as traditional street-garbas are performed and the whole venue is developed for nine days in such a way that one gets a total feel of Gujarat's culture, cuisines and crafts at one place. Financial assistance and support was given to festivals such as Durga puja, Utkal dival, Shivratri, 150 years of Swami Vivekanand, Sardar Patel's birth anniversary, and other cultural/voluntary organisations in FY 2010-11.
Promoting Sports and Sportsmen RIL continues to promote and support sports and sportsmen. The Company extended support to Reliance InterCricket Tournament, G1 Cricket Tournament, affiliated MPCA's All India Cricket Tournament, Central Board of Cricket, etc. Financial support was given to International Tournament for upcoming chess-players; Gujarat State Chess Association for conducting under-09 chess tournament; as well as to one upcoming chess-player. Support was also given to Gujarat State Football Association and Jamnagar District Football Association for players' coaching fees, uniform and their daily allowances as well as to the publication of a special handbook on the Football World Cup. Third Gujarat Major Ranking Badminton Tournament at Ahmedabad, Hockey League Night Tournament at Rajkot, Tennis Tournament of Government Employees at Ahmedabad, Table Tennis Championship Tournament at Vadodara, Kabaddi Tournament of Maharashtra Krida Mandal, Shuttle Tournament at Kochi and Sports Carnival at Bhopal were some of the major sports-events that were supported during the year. Mumbai Indians (MI), the Mumbai-based IPL franchise owned by IndiaWin Sports Pvt. Ltd, a subsidiary company of Reliance Industries Limited is led by Sachin Tendulkar. MI registered the most number of wins in Season III of the Indian Premier League, and reached the finals. MI has been the most followed team in the IPL and enjoys a huge global fan base.