CG and CSR at Godrej

Corporate Governance and CSR at Godrej 2010
AND
AT
Bhavan’s College Page 1

A Project Report
On
CORPORATE GOVERNANCE AND CSR AT GODREJ
BY
VRINDA MENON – 31
ROHIT MOHITE – 32
SEENA SAJE – 33
ARUNDATHI NAIR – 34
SAMIKSHA NARSINGH – 35
DEEP NEVGI – 36
Submitted to Prof. Sameer Virani
Faculty of Business Ethics and CSR
In partial fulfillment for the award of the degree

Of
BACHELOR OF MANAGEMENT STUDIES – SEM 5

GROUP - 6
BHAVAN’S COLLGE, ANDHERI
MUMBAI
2010-2011

CERTIFICATE
This is to certify that the students of TYBMS-A section of Bhavan’s college, Andheri have
successfully completed the project titled “CORPORATE GOVERNANCE AND CSR AT
GODREJ” for the subject “BUSINESS ETHICS AND CSR” in the academic year 20010-
2011.
PROF.SAMEER VIRANI
(Faculty)

DECLARATION
We hereby declare that the following documented Project titled “CORPORATE
GOVERNANCE AND CSR AT GODREJ” for the subject “BUSINESS ETHICS AND
CSR” in the academic year 20010-2011 is an authentic work done by us. It is true and
original to the best of our knowledge.
The Study was undertaken as a part of the course curriculum of BMS, 5th semester of
TYBMS-A section of Bhavan’s College, Andheri by the below mentioned students.
VRINDA MENON – 31
ROHIT MOHITE – 32
SEENA SAJE – 33
ARUNDATHI NAIR – 34
SAMIKSHA NARSINGH – 35
DEEP NEVGI – 36

ACKNOWLEDGEMENT
This project bears the imprint of many people and without their support it would not have
existed. This project has been made possible through the direct and indirect co-operation of
various persons, who have inspired us at every step of our work.
First of all we would like to express our gratitude towards PROF. SAMEER VIRANI,
“BUSINESS ETHICS AND CSR” faculty who always facilitates us in gaining practical
knowledge and also for giving us an opportunity to do this project.
We express our sincere indebtness and profound sense of gratitude to our parents whose
support in all manners had made us capable to complete this project.
Last but not the least, we would like to forward our gratitude to our friends & other faculty
members who always endured us and stood by us and without whom we could not have
envisaged the completion of our project.

TABLE OF CONTENTS
NO. CHAPTER PAGE

NO.
1 WHAT IS CORPORATE GOVERNANCE? 7
2 WHAT IS CORPORATE SOCIAL RESPONSIBILITY 8
3 ABOUT THE GODREJ GROUP 9
4 HIGHLIGHTS FROM THE STATEMENTS MADE BY 10 to 13

CHAIRMAN ON CORPORATE GOVERNANCE
5 ABOUT GODREJ CONSUMER PRODUCTS LTD. 14 to 16
6 CODE OF CONDUCT 17
7 CORPORATE GOVERNANCEAT GCPL 18 to 20
8 CSR AT GODREJ 21 to 28
9 CONCLUSION 29
10 BIBLIOGRAPHY 30

WHAT IS CORPORATE GOVERNANCE?

“Citizens never support a weak company and birds do not build nests on a tree that does
not bear fruits.”
"Corporate governance is maximizing the shareholder value in a corporation while

ensuring fairness to all stakeholders, customers, employees, investors, vendors, the
government and the society-at-large. Corporate governance is about transparency and
raising the trust and confidence of stakeholders in the way the company is run. It is about
owners and the managers operating as the trustees on behalf of every shareholder - large
or small."
- Shri N.R. Narayana Murthy, Chief Mentor, Infosys Limited.
Good corporate governance practices are essential for sustainable business that aims at
generating long term value to all its shareholders and other stakeholders. A transparent,
ethical and responsible corporate governance framework essentially emanates from the
intrinsic will and passion for good governance ingrained in the business entity.
The global financial crisis during the recent past, along with some of the large format
corporate failures and frauds have convincingly revealed that while the corporate governance
super structure in India is fairly durable, there are certain weaknesses that may have their
roots in the ethos of individual business entities.
Good corporate governance is essential for the integrity of corporations, financial institutions
and markets. It ensures the health of our economies and their stability. India’s corporate
sector is diverse in nature. On one hand it consists of multinational corporations, whereas on
the other hand a large number of small and medium enterprises drive its growth and provide
dynamism to the sector. This interesting mosaic of Corporate India has contributed
immensely to the growth of India’s economy.

WHAT IS CORPORATE SOCIAL

RESPONSIBITY?
According to Wikipedia, Corporate Social Responsibility (CSR) is a concept whereby

organizations consider the interests of society by taking responsibility for the impact of
their activities on customers, suppliers, employees, shareholders, communities and the
environment in all aspects of their operations. This obligation is seen to extend beyond the
statutory obligation to comply with legislation and sees organizations voluntarily taking
further steps to improve the quality of life for employees and their families as well as for
the local community and society at large.”
Corporate Social Responsibility (CSR) is the voluntary role and contribution of the business
community towards a better social and environmental development, apart from their
investment to organizational development.
Usually CSR concentrates on the activities that typically address the aspects of a firm's
behaviour (including its policies and practices) with respect to such key elements as; health
and safety, environmental protection, human rights, human resource management practices,
corporate governance, community development, consumer protection, labour protection,
supplier relations, business ethics, and stakeholder rights.
CSR is being implemented in the Indian organizations in one or more of the following ways
such as reactive strategy, an image building exercise, for improving operational efficiency,
and a source of competitive advantage, etc to ensure business development.
It all starts with a vision, an understanding and a willingness to change, to do better not just
for one’s own self, but for the employees and the future of humankind. A systematic
approach which involves open-ended research, detailed planning and careful implementation

of the plan can lead to the successful accomplishment of organizational goals in the CSR
sector.
THE GODREJ GROUP
Mission – “Enriching Quality of Life Everyday Everywhere”
Vision – “Godrej in every home and work place”
Established in 1897, the Godrej group has grown in India from the days of the charkha to
nights at the call centers. The founder, Ardeshir Godrej, lawyer-turned-locksmith, was a
persistent inventor and a strong visionary who could see the spark in the future. His
inventions, manufactured by his brother Pirojsha Godrej, were the foundation of today’s
Godrej empire.
With 7 major companies with interests in real estate, FMCG, industrial engineering,
appliances, furniture, security and agri care – to name a few – the turnover crosses 2.6 billion

dollars. 20% of the business is done overseas. The company’s presence in more than 60
countries ensures that the customers are at home with Godrej no matter where they go.
HIGHLIGHTS FROM THE CHAIRMAN’S

STATEMENT ON CORPORATE GOVERNANCE
Mr. Adi Godrej

“We have always believed strongly in ethics. In the medium to long-run, doing the right thing
yields strong dividends. Shortcuts and unethical behaviour may sometimes bring about short-
term results, but not long-term successes.”
"Our strong emphasis on corporate governance has helped us get high ratings on both
corporate governance and shareholder value creation," Godrej adds, citing ratings given by
the Investment Information and Credit Rating Agency of India. "I also feel that the markets
have recognized and rewarded our pioneering corporate governance initiatives."
“In my view good Corporate Governance should promote the long-term good of the
Company. It is well understood that neglecting or bypassing the interests of stakeholders like
shareholders, employees, vendors, customers, consumers, the Government, or the society at
large is likely to adversely affect the long term interests of the company.

Corporate governance principles need to be simple to be easily and widely understood. In

the ideal scenario, every employee – from the Chairman to the shop-floor worker – becomes
a custodian of the Company’s interests.”
HIGHLIGHTS FROM THE CHAIRMAN’S

STATEMENT ON CORPORATE GOVERNANCE
“Good governance means high levels of accountability and responsiveness. The need of the
hour is not more rules, laws, and bye-laws but effective enforcement. Our Government and
market regulators need to enforce the existing legislations rather than create more
legislation. Legislation alone is no panacea – and – un-enforced legislation is worse than no
legislation!
Corporate Governance together with Open Competition and Independent Regulators are the
three pillars of a modern, successful, free enterprise system.
The benefits of having top-notch corporate governance are plenty:
1) Good governance provides a competitive advantage in the global marketplace.
2) Well governed companies raise capital widely, easily and cheaply.
3) Good governance leads to improved employee morale and higher productivity.
4) Well governed companies last longer.
Every business must therefore strive to create an environment where it can successfully
balance the often difficult trade-offs of generating returns for the contributors of capital in a
highly competitive market and satisfying the needs of customers, providing meaningful
employment opportunities and making a contribution to its community. This is especially
relevant in a developing country like India, where there are few established institutions to
bring about social welfare.

While figuring out the right balance between the various constituents may vary by business
and is a matter of judgement, it is now becoming more and more apparent that unless a
company is able to create a workable relationship among its various stakeholders, it may
endanger its ability to generate profit on a sustainable basis.”

How does Godrej ensure good governance and

CSR?
“I’ll take the example of Godrej Consumer Products, which is our highest market cap listed
company — we hold about 70 per cent of the shares. When we first set up the board, we
invited independent directors who had professional reputation, not industrialist friends. I
think industrial friends are not able to devote enough time to the company. Secondly, all our
board meetings last at least half a day — no perfunctory meetings. Every year, the January
board meeting is a two day offsite affair, which devotes a lot of time on strategy.
An executive board of 10 young managers who look at issues such as strategy, corporate
governance and human resource development will report their findings once a quarter to the
regular company board. This is one of the many initiatives to improve corporate governance
in India today; at least in the Godrej Group.
Training and incentivizing managers to review any situation through the economic, legal and
ethical lenses and make decisions that appropriately balance the various trade-offs.
There is no strategy more important for company secretaries than improving the corporate
governance in companies that they work for.
In our Group we divide our Corporate Social Responsibilities into two parts. Twenty five
percent of our family owned private holding company which also happens to be a major
manufacturing company, Godrej and Boyce is owned by the Pirojsha Godrej Foundation
which in turn receives substantial regular dividends which support our family’s considerable
philanthropic activities without impinging on the minority shareholders in our listed
companies.
In addition, all our companies have CSR programs directly connected with their businesses
such as adopting neighbouring villages, promoting malaria eradication programs in our

household insecticides company, and encouraging our employees to donate their managerial
capabilities and time for socially beneficial activities.
Mr. Godrej emphasized that corporate governance is not just another management or social
fad, but is the ultimate management tool. "Good corporate governance is a very rewarding
journey for those who choose the right path," he said.
 The year began in recovery from the global economic crisis and turned into a good
year for Godrej Industries.
 During the economic downturn, Godrej industries focused on various initiatives to
improve operational efficiencies and de-risk their portfolio.
 The diversified business model is unique with interests in the form of operating
businesses, subsidiaries, joint ventures and investments. This variety allows
shareholders to partake growth in the entire range of businesses, including oleo-
chemicals, agriculture, real estate, consumer products, and foods.
 Godrej have always laid strong emphasis on green and environmentally friendly
business practices, which in turn have lead to strong advantages and dividends.
 Godrej have maintained its position as market leaders in the Indian oleo-chemicals
and surfactants space.
 Godrej’s chemical business had healthy profit margins this year due to consistently
strong demand and normalized raw material prices.
 Results from the agri and palm oil business have been especially encouraging
 There has been considerable growth in the consumer and healthcare business due to
high consumer demand for the products across the country.
 The Godrej brand reaches over 470 million consumers daily.
 Godrej’s property development business was successfully listed on the stock
exchanges this year and they have projects under construction in several cities across
India.
 During the downturn, Godrej reinforced its commitment to innovation, adding
technology while improving efficiency to processes that uphold high quality standards
while sustaining product affordability.
 Their management practices and code of conduct have ensured good governance
across businesses.

Godrej Consumer Products Ltd.

GCPL COMPANY DETAILS
Godrej Consumer Products Limited (GCPL) Company Profile
Corporate headquarters Mumbai, India

Local office address Godrej & Boyce Mfg. Company Ltd., Pirojshanagar, Eastern
Express Highway, Vikhroli, Mumbai - 400079
Number of employees 950
Revenue Rs. 6573.2 million (146 mn USD)
Manufacturing sub-segment Consumer Packaged Goods
Main business groupings The business groups are based on Product Lines
Key manufacturing locations/facilities Malanpur (M.P.), Guwahati (Assam), Silvassa (U.T.) and Baddi
(H.P.)
Products Toiletries, Hair Care, Household Care, Fabric Care & Body Care
URL www.godrejcp.com
Godrej Consumer Products Limited, together with its subsidiaries, operates in fast
moving consumer goods market in India and internationally. The company manufactures and
markets toilet soaps, hair colors, liquid detergents, and other toiletries, such as shaving
creams, talcum powders, and deodorant sprays.
It also offers sanitary napkins and baby diapers. In addition, Godrej Consumer
Products Limited sells hair braids, human extensions, hair pieces, wigs, and wefted pieces, as
well as hair accessories, such as styling gels, hair sprays, and oil free shampoo. The company
offers its toilet soaps primarily under Cinthol, FairGlow, and Godrej No.1. brand names.
It provides hair color products under Godrej Renew, Godrej Kesh Kala Oil, Godrej
Permanent Liquid Hair Dye, Godrej ColourSoft Hair Colour, Godrej Nupur Mehendi, Godrej
Kali Mehendi, and Anoop brand names in India, as well as under ‘INECTO’ and ‘SOFLENE’
brands internationally; fabric care liquid detergent products under Ezee Bright and Soft brand
names; baby diapers under the brand ‘Snuggy’, Libero, and Up&Go; and feminine hygiene
products under Libresse, Nana, Bodyform, and Nuvenia brand names.

BOARD OF DIRECTORS AT GODREJ CONSUMER

PRODUCTS LTD.
NAME TITLE
Adi B. Godrej Managing Director and Executive Chairman
A. Mahendran Managing Director and Non Executive Director
Nadir Godrej Non Executive & Non Independent Director and Chairman of
Shareholders Committee
Bala Balachandran Ph.D. Non Executive & Independent Director, Chairman of

Compensation Committee, Member of Audit Committee,
Member of Nomination Committee and Member of Human
Resources Committee
Bharat N. Doshi Non Executive & Independent Director, Chairman of Audit

Committee, Member of Human Resources Committee, Member
of Compensation Committee and Member of Nomination
Committee
Rama Bijapurkar Non Executive & Independent Director, Chairman of Nomination

Committee, Chairman of Human Resources Committee and
Member of Compensation Committee
Jamshyd N. Godrej Non Executive & Non Independent Director and Member of
Shareholders Committee
Aman Mehta Non-Executive Independent Director, Member of Audit

Committee, Member of Nomination Committee, Member of
Compensation Committee and Member of Human Resources
Committee
Omkar Goswami Ph.D. Independent Director, Member of Audit Committee, Member of

Nomination Committee, Member of Compensation Committee
and Member of Human Resources Committee
D. Shiva Kumar B.E (IIT) Non Executive Director

IIM Kolkata

Godrej Consumer Products gets A1+ rating for its

NCDs programme from ICRA
 Credit rating agency ICRA has assigned A1+ rating to the proposed Rs
200 crore non-convertible debentures (NCDs) programme of Godrej
Consumer Products (GCPL).
 Reaffirmation of Rating Corporate Governance.
ICRA has reaffirmed the CGR2+ (pronounced as CGR 2 plus) rating to Corporate
Governance Practices of the Company. This is on a rating scale of CGR1 to CGR6
where CGR1 denotes the highest rating. The + sign indicates a relatively higher
standing within the category indicated by the rating.
The CGR2+ rating implies that in ICRA's current opinion, the rated Company has
adopted and follows such practices, conventions and codes as would provide its
financial stakeholders a high level of assurance on the quality of corporate
governance.
 Reaffirmation of Rating for Stakeholder value and Governance Practices
ICRA has reaffirmed the SVG1 (pronounced as SVG1) rating for Stakeholders Value
Creation and Governance practices of the Company. This is on a rating scale of SVG1
to SVG6 where SVG1 denotes the highest rating.
The SVG1 rating implies that in ICRA's current opinion, the rated Company belongs
to the Highest Category on the composite parameters of stakeholder value creation
and management as also corporate governance practices.

Code of Conduct for the BOD & Senior

Management
Applicability of the Code of Conduct
This Code of Conduct (Code) applies to Directors of Godrej Consumer Products Ltd.
(GCPL). It also applies to the senior management of the company i.e. one level below the
executive directors, and all functional heads.
The Board of Directors and Senior Management of Godrej Consumer Products Ltd. (GCPL)
should:
 Demonstrate the highest standards of integrity, business ethics, and corporate

governance.
 Perform their roles with competence, diligence, in good faith and in the best
interests of the Company.
 Provide expertise and experience in their areas of specialization and share learning’s
at Board meetings with the best interests of the Company and its stakeholders in
mind.
 They should point the company's management in the 'right' direction based on their
experience and judgment.
 Give careful and independent consideration to the affairs of the company and all
documents placed before them to satisfy themselves with the soundness of key
decisions taken by the Management. They should call for additional information,
where necessary, for making such judgments.
 Not engage in any business, relationship or activity which detrimentally conflicts with
the interest of the Company / Godrej Group or bring discredit to it. Any situation that
creates a conflict of interest between personal interests and the Company and its
stakeholders' interests must be avoided at all costs.
 Follow all the guidelines put forth in the Insider Trading Code of Conduct.

 Not disclose any confidential/privileged information of the Company and should

direct any media queries or approaches to the appropriate spokesperson within the
Company.
CORPORATE GOVERNANCE AT GODREJ

CONSUMER PRODUCT LTD
 The company has been an early and enthusiastic adopter of governance reforms,
including independent directors.
 6 of the eight members of its board of directors are independent of the

management.
 All four of its audit committee members are independent.
 Both are better ratios of independent to "executive" members than required under the
new Clause 49.
 Other requirements, including the creation of a risk-management regime and

certification of financial controls by top officers, are being put in place by a
consultant.
 Board memberships at Godrej are not given out as sinecures for industrialist friends of
the CEO, bankers and retired generals. Board meetings at Godrej last for at least half
a day and the company also organizes a two-day strategic meeting once a year.
 "Independent directors are supposed to provide tremendous value to the company's

performance. Godrej compensate them well and expect them to spend quality time
with the company.
 Godrej points out that most Indian public companies are working diligently toward
implementing the revised Clause 49 by January 1. They are being helped by the

Confederation of Indian Industry, a corporate association whose governance council

is headed by Godrej.
 Corporate Governance at Godrej is principle - based and not rule - based.
BEST PRACTICES AT GODREJ
 Reverse mentoring of seniors by youngsters.
 360 degree appraisal of all including the chairman.
 Chairman's tea to brainstorm with young managers: a weekly discussion with 10-12
managers on every and any subject.
 Celebrations for achievements to make success self-feeding.
 To evolve out-of-the-box thinking, various group businesses have formed two eight-
member teams called the red team and the blue team, made up of young employees.
Their mandate is to make recommendations for future growth prospects and
strategies.
 Another initiative is the young executive's board (YEB). It has eleven youngsters on
board. They behave like any senior board, and give suggestions on strategy, human
resource policies, corporate governance and so on.
 Meanwhile a team of five business heads has been instituted, which has to come up
with a group wide strategic plan this year. It is this team's recommendations-which
businesses to exit, which new ones to enter, and growth horizons-that will decide
what the Godrej group will be in five years.

 To ensure that all these initiatives evolve into more than just colourful exercises,
Godrej has linked its variable remuneration to economic value added (EVA) and
employees receive pay that's linked to their contribution to the business' EVA in the
last year.
HR PRACTICES AT GODREJ
“WE see our employees, and not our brands, as our greatest assets,” says Adi Godrej,
Chairman of the Rs 7,500 crore Godrej Group. It’s a healthy give and- take relationship, and
it is more pronounced in a slow market like this. Says Sumit Mitra, Executive Vice-President
(HR), Godrej Consumer, the Rs 1,200 crore group flagship: “The company’s philosophy is do
more for people, but also demand more from them.”
The company has always followed a policy to weed out non-performers. Now, it has made its
rewards structure sharper than ever before. Says Godrej: “We have a strong performance-
linked bonus system and have even extended employee stock options across all levels of
management.”
The group believes in empowering its employees and taking initiatives for their development.
So, Godrej Consumer offers multi-skilled training to its employees so that they can play
multiple roles, instead of hiring afresh and adding to costs.
More recently, it launched a consumer immersion programme. Employees, across functions,

are encouraged to interact with consumers on Godrej products and pass on feedback to the
product development team. One outcome of such engagement is greater emphasis on
fragrance and packaging. Says Mitra: “The rough consumer interaction, they realised that,
besides core values, fragrances and packaging play a key role in buying decisions.”
In May 2008, the group unveiled a new brand identity that promised “brighter living”. It
wasn’t just a cosmetic change, says Mitra. “We took every employee through the attributes of

brighter living at a mindset level, and told them that we meant it.” The Godrej brass gives
two numbers to make their point. Attrition, says Mitra, is just 1%. Adds Godrej: “In 2008,
only 20 stocks gained, and Godrej Consumer was one of them.”

CORPORATE SOCIAL RESPONSIBILITY AT

GODREJ
25% of the shares of the Godrej Group’s holding company Godrej & Boyce are held in a
trust that invests back in the environment, healthcare and education. Which means business is
not just about revenues and profits but keeping our land green, our communities healthy and
our kids smart.
In 1920, founder Ardeshir Godrej gave a donation of Rs. 3 lakhs to the Tilak Swaraj Fund –
then considered a princely sum – for upliftment of the downtrodden. His gesture of
philanthropy grew into Godrej corporate policy. Giving back turned into our way of saying
thank you to the 400 million Indians who are Godrej loyalists.
AIDS Awareness
Employees are urged to take preventive care to combat AIDS through posters, hand outs,
street plays and talks.
Blood Donation
A blood donation camp is organized by Godrej every year on the death anniversaries of its
founders Naval Godrej and Burjorji Godrej. Godrejites support this noble cause in big
numbers and save precious lives of fellow humans. The number of people donating blood in
consecutive years has always shown an encouraging trend.
Leading hospitals, the Red Cross Society and Indian Medical Association extend their help in
conducting these camps.

Godrej Memorial Hospital
 35,000 patients and 3,128 surgeries.

 Quality healthcare services at an affordable cost in a rational and ethical manner.
 100 free cleft surgeries in association with the Smile Train Project.
 Free well-equipped cardiac ambulances to attend to medical emergencies in a 10 km
zone
Udayachal Schools: Providing Quality Care and Education

 Udayachal schools (pre-primary, primary and secondary), managed by Godrej, have
been providing quality care and education since 1955. Education in the schools
focuses on total personality development of the child, which is further enhanced and
strengthened through joyful learning. This takes into account the physical, socio-
emotional, aesthetic, spiritual as well as mental growth.

Pirojsha Godrej Foundation promotes a unique community development

Programme called Svayam.
 Rural development
 The search for suitable livelihood was driving the tribals of Jummapatti into city
limits. Parallely, to meet the increasing household needs of the resident villagers, the
depleting forest cover was also a cause of concern.
 Svayam focussed on providing a sustainable livelihood for locals through
entrepreneurial development balanced with a sense of environmental consciousness.
Pirojsha Godrej Scout & Guide Pavilion

 The Scout Hut, in existence since 1923 was restored by the Pirojsha Godrej
Foundation between 1983-85 and made available to organisations like WWF, Friends
of Trees and BNHS.
 In 1997, the area outside the hut was developed into the Godrej Centenary Garden – a
heaven for tired pedestrians.
 Godrej continues to maintain the hut and garden.
CII-Godrej Tsunami Rehabilitation Project

 Godrej & CII supported 150 families in the Tsunami stricken Pallayar (in
Nagapattinam district) and Azhikal (in Kanyakumari district) by providing fishing
equipment, boats, engines etc., funding a community health center and providing skill
based training to 200 residents. A sum of over Rs. 56 L was handed over to CII.
Crematorium for animals

 Shocked by the horrifying conditions of the dilapidated incinerator at Bombay
Veterinary College, where Naval Godrej’s pet labrador was cremated, he sponsored
the very first electric crematorium at the Bai Sakarbai Dinshaw Petit Hospital for
animals at Parel, the first non-polluting crematorium of its kind in Asia.

Family Planning
 Godrej has been connected with the Family Planning Foundation, which is a
voluntary organisation devoted to promote Family Planning as a basic human right, as
well as population Policies which can help bring about a balanced development of the
resources of the country-both human and material - as a means towards raising the
quality of life. ‘Pragati Kendra’ imparts not only information regarding Family
Planning but, through various social and cultural activities, provides for a better
quality of life for the inhabitants of the township.
Foundation for Medical Research

 Godrej supports the Foundation for Medical Research (FMR), Mumbai, particularly
for the cure of leprosy. This Foundation is intended to develop an alternative model
the immunological concept regarding leprosy cure. Through a rural health and
research project, Godrej has striven to develop an alternative model for rural health
care based on community participation, with the emphasis on preventive rather than
curative aspects.
Mangroves
 Soonabai Pirojsha Godrej Marine Ecology Centre (SPMEC) was formally inaugurated
under the leadership of the late ornithologist Dr. Salim Ali.This is the first privately
managed mangrove area in India to formally adopt ISO14001 standards for
Environment Management Systems.

The CII – Sohrabji Green Business Centre

 Was conceived by Godrej and CII in partnership with the Andhra Pradesh
Government.
 The Green building is a symbol of Environmental sustainability.
 Godrej takes lead to further the trend of such environment friendly buildings being
constructed across the nation.
 All the businesses have implemented Environment Management Systems and are
ISO14001 certified.
World Wide Fund (WWF) for animals

 WWF-India began as a modest, wild-life conservation organisation. Over the years,
the perspective has broadened to encompass conservation of habitats and ecosystems
and to lend support to the management of the country’s protected area network.
 Godrej’s commitment to global conservation is reflected in our continued association
with WWF.

Trees and Afforestation

The late Mr. S. P. Godrej had been the Vice-
President of the National Society of the Friends of
Trees and Mrs. Pheroza Godrej is its current
President. For the past many years a well-stocked
Tree Bank is maintained at Pirojshanagar and
saplings are generously distributed, free of cost to
voluntary organisations engaged in afforestation
work.
Godrej Environment Policy

We shall thrive to:
 Practice pollution prevention systems.
 Conserve key resources like water, fuel, energy and raw materials such as wood
derivatives, steel etc. by optimizing its use.
 Monitor and reduce the effect of fumes, dust and noise level in the ambient air.
 Maximize recycling and reuse the waste and scrap generated.
 Promote the usage of recyclable material.
 Dispose off inevitable waste in an environment friendly manner.
Apart from these, the Godrej group also supports Vatsalaya Trust, Alert India and Teach
for India group.

Smile Train
Godrej Memorial Hospital (GMH) along with a US based NGO ‘Smile Train’ conducts a
program, for helping these very children from poor families. The program consists of primary
consultation and screening followed by expert plastic surgery. Several of the patients are
offered follow up speech therapy and other support services. Children operated at a younger
age seem to derive optimum benefit. Over 300 surgeries have been successfully conducted at
GMH till date. GMH offers surgery and hospitalization to the patient and one attendant
completely free of cost. Deserving cases are also reimbursed travel costs by the hospital.
Table for Two

Godrej instituted the Indian chapter of ‘Table For Two’ initiative at the World Economic
Forum’s India Economic Summit in December 2008. This initiative is targeted at addressing
hunger and malnutrition in the developing world by combining the organization’s tradition
of serving society and involvement of individuals.
The initiative has been a great success within the first few months of its inception – with a
sizeable fund that is geared to feeding close to 780 school children and providing for
1,56,000 meals annually.

AWARDS
Godrej has won awards such as:
 The BHNS Green Governance Award 2005: Godrej & Boyce Mfg Co. Ltd received
this award on November 10, 2005 for conservation and restoration of habitat.
 WWF 25th Anniversary Benefactor “White Pelican” Award was received by S P
Godrej for the company’s contribution to conservation of nature and natural
resources.
Metrics and its Evaluation:
 The Awareness program for Godrej and Boyce, Vikroli, Mumbai was given the ISO
14001 certification.


CONCLUSION
The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion,
a workforce of approximately 18,000, and a strong diversified portfolio, Godrej has proven
its ability to deliver strong financial performance.
The philanthropic activities by the chairman Mr.ADI GODREJ and other family members
even before the word CSR was known has made the Godrej group one of the most trusted
business house in India. Today the group holds an example of ethical and most transparent
group of business who is concerned not only to maximize shareholders value but at the same
time invests responsibly in social and environmental welfare.
The Godrej Group is today one of the most accomplished and diversified business houses
in India. Godrej’s success has been driven by the company’s commitment to delivering
innovation and excellence. Through the consistent application of this commitment and a
century of ethical business conduct, Godrej has earned an unparalleled reputation for trust
and reliability.

BIBLIOGRAPHY
1. www.godrej.com
2. Business Ethics: An Indian Perspective - By A. C. Fernando
3. www.google.com
4. Corporate Governance: Principles, Policies and Practices
- By A. C. Fernando
5. Company website at Godrej - Vikroli

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Corporate Governance and CSR at Godrej 2010

Bhavan’s College Page 1

CORPORATE GOVERNANCE AND CSR AT GODREJ

Submitted to Prof. Sameer Virani

Faculty of Business Ethics and CSR

In partial fulfillment for the award of the degree

BACHELOR OF MANAGEMENT STUDIES – SEM 5

Bhavan’s College Page 2

successfully completed the project titled “CORPORATE GOVERNANCE AND CSR AT

Bhavan’s College Page 3

We hereby declare that the following documented Project titled “CORPORATE

original to the best of our knowledge.

TYBMS-A section of Bhavan’s College, Andheri by the below mentioned students.

Bhavan’s College Page 4

various persons, who have inspired us at every step of our work.

knowledge and also for giving us an opportunity to do this project.

support in all manners had made us capable to complete this project.

envisaged the completion of our project.

Bhavan’s College Page 5

NO. CHAPTER PAGE

2 WHAT IS CORPORATE SOCIAL RESPONSIBILITY 8

3 ABOUT THE GODREJ GROUP 9

4 HIGHLIGHTS FROM THE STATEMENTS MADE BY 10 to 13

7 CORPORATE GOVERNANCEAT GCPL 18 to 20

Bhavan’s College Page 6

WHAT IS CORPORATE GOVERNANCE?

"Corporate governance is maximizing the shareholder value in a corporation while

Bhavan’s College Page 7

WHAT IS CORPORATE SOCIAL

According to Wikipedia, Corporate Social Responsibility (CSR) is a concept whereby

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THE GODREJ GROUP

Mission – “Enriching Quality of Life Everyday Everywhere”

Vision – “Godrej in every home and work place”

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HIGHLIGHTS FROM THE CHAIRMAN’S

Mr. Adi Godrej

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Corporate governance principles need to be simple to be easily and widely understood. In

HIGHLIGHTS FROM THE CHAIRMAN’S

The benefits of having top-notch corporate governance are plenty:

1) Good governance provides a competitive advantage in the global marketplace.

2) Well governed companies raise capital widely, easily and cheaply.

3) Good governance leads to improved employee morale and higher productivity.

4) Well governed companies last longer.

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How does Godrej ensure good governance and

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Bhavan’s College Page 15

Godrej Consumer Products Ltd.

Godrej Consumer Products Limited (GCPL) Company Profile

Corporate headquarters Mumbai, India

Bhavan’s College Page 16

BOARD OF DIRECTORS AT GODREJ CONSUMER

Adi B. Godrej Managing Director and Executive Chairman

A. Mahendran Managing Director and Non Executive Director

Bala Balachandran Ph.D. Non Executive & Independent Director, Chairman of

Bharat N. Doshi Non Executive & Independent Director, Chairman of Audit