chapter 4 findings and analysisshodhganga.inflibnet.ac.in/bitstream/10603/21191/11/11_chapter...

Embedding CSR in Business in the Indian Context 29 Purnima Bhatnagar

CHAPTER 4 – FINDINGS AND ANALYSIS

4.1. SCHEMA

This chapter is devoted to analysis of data collected on CSR practices of 21 firms under

review. It is divided into four sections.

4.2 SECTION 1: CSR STRATEGY AND MODELS is devoted to CSR strategy - models

that exist in Indian Business. Content analysis has been used to identify common themes

related to the constructs in existence after reviewing the CSR philosophy.

4.2.1 SECTION I - PART I - CSR PHILOSOPHY OF FIRMS UNDER STUDY

4.2.2 SECTION I - PART II - DERIVED CSR STRATEGY

While Part 1 lists the CSR philosophy of firms, Part 2 explains the Analysis and Findings.

4.3 SECTION 2: CSR ORGANIZATION is aimed at understanding the Organization

structure of CSR Department in firms under study.

4.4 SECTION 3: EMPLOYEE VOLUNTEERING PROGRAMS

Section 3 is dedicated to understanding the practices and levers associated with an

Employee Volunteering Program.

4.5 SECTION 4: NATIONAL VOLUNTARY GUIDELINES - INTEGRATION WITH

BUSINESS

Section 4 intends to study the various principles for responsible business, as expounded in

the National Voluntary Guidelines, 2011 designed by the Ministry of Corporate Affairs.


4.2 SECTION 1: CSR STRATEGY AND MODELS

Four sectors of Indian business – Automotive, Oil, Gas and Energy Transmission, Banking

and Financial Services as well as Computer Software were evaluated for prevalence of CSR

Models.

4.2.1 SECTION I - PART I - CSR PHILOSOPHY OF FIRMS UNDER STUDY

Industry I - Automobile Sector

1. Maruti Suzuki

"While working to enhance stakeholder wealth, Maruti Suzuki will regularly engage with all

stakeholders to assess their needs and through its products, services, conduct and

management initiatives, promote their sustained growth and well being." Sustainability

philosophy: "Give, Get, Grow" - Maruti has focused on growing with its partners.

2. Tata Motors

True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to

Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and

is engaged in community and social initiatives on labour and environment standards in

compliance with the principles of the Global Compact. In accordance with this, it plays an

active role in community development, serving rural communities adjacent to its

manufacturing locations.

3. Mahindra and Mahindra

We see our role as a major corporation both in India and in the world as an incredible

opportunity to lead businesses towards sustainability. Sustainability encompasses not only

the conservation of our environment, but also a responsibility to every stakeholder—not only

our shareholders, employees, and customers, but also the communities we impact and the

suppliers we source from. By making every aspect of our business sustainable, from creating

fuel-efficient automobiles in green facilities to encouraging sustainable supply chain

management to reducing office footprints, we affirm our commitment to a better world.

Mahindra Group has a legacy of values, social consciousness and integrity. Mahindra's CSR

is committed to "Building possibilities" for socially and economically disadvantaged

communities to enable them to "Rise" above their limiting circumstances.

4. Hero Motocorp

Core values - Care, Innovation and Trust - to guide in all they do. Must do something for the

community from whose land we generate our wealth. Broader goal is serving humanity

through social initiatives. Express inseparable balance between Economic, Environmental

and social issues faced by business. Besides being focused on welfare of economically and


socially deprived sections of society, Hero Corp aims at developing techno - economically

viable and environment friendly projects, products and services, while at same time ensuring

highest standards of safety and environment protection in its operations.

5. Bajaj Auto

CSR is synonymous with conducting Business. There is a wide spectrum of community

development endeavours in the area of Health, Education, Women empowerment, etc.

Real credit is to those, "whom we have enabled on the path of 'sustainable and inclusive

growth' and well being."

Industry II – Banking and Financial Services

1. State Bank of India

The Bank is a corporate citizen with resources at its command, and benefits which it derives

from operating in society in general. It therefore owes a solemn duty to the less fortunate and

under – privileged members of the same society.

Staff members are encouraged to make their contribution by understanding the aspirations of

the people around them and by endeavoring to evolve measures to remove indisputable social

and developmental lacunae.

2. ICICI Bank

ICICI Foundation

To empower the poor to participate in and benefit from the Indian growth process through

integrated action in the fields of elementary education, sustainable livelihoods, primary health

and financial inclusion. This will be achieved through active collaboration with the

government and independent organizations

3. Axis Bank

Axis Bank Foundation strives to improve the standard of living of the underprivileged people

in India, by providing them Education, Healthcare and Livelihoods.

ABF believes that education is the key to break the relentless cycle of poverty and works with

NGOs for children, making efforts in the education space to reach out to as many people as

possible. It also aims to help create capabilities in terms of skills and employment

opportunities for disadvantaged / differently - abled people especially children.


4. Punjab National Bank

Views CSR as a commitment to operate in an economically, socially and environmentally

sustainable manner, while recognizing interests of stakeholders, including investors,

customers, employees, business partners, local communities, the environment and society at

large and contributes to quality of life of society.

CSR Strategy includes Sustainability, Corporate Volunteering, Social Investment, Health,

Collaboration and Green Initiatives.

According to the bank, CSR is not a destination, but a journey.

5. Canara Bank

CANARA BANK has been a pioneer in initiating and implementing multifaceted and

innovative programmes aimed at development of people from the lower strata of the society.

The Bank has been playing a pivotal role and trying to bring about a socio-economic

transformation in the society, particularly in rural areas.

6. HDFC Bank

At HDFC, 'Corporate Social Responsibility' has always been an evolving concept, akin to its

'learning by doing' philosophy. As part of its social objectives, HDFC has always endeavored

to contribute to economic development and social upliftment of the weaker sections of

society and has professionally nurtured each of its social initiative as an investment. HDFC

has undertaken development oriented work and supported several social initiatives in the

areas of education, child welfare, medical research, welfare for the elderly and the

handicapped among several others.

―Demand for greater responsibility from Business is the fundamental tenet of Sustainability.‖

A key aspect of sustainability is contribution to society through CSR projects.

Sustainability should form an integral part of business.

Industry III – Computer Software

1. Infosys

Infosys Foundation

To support the underprivileged sections of society.

CSR Philosophy

Our social contract inspires employees to contribute to community welfare, environment

sustainability and digital literacy


Sustainability

Sustainability is not optional but a business imperative. Infosys has always adhered to the

sustainable approach to business and has helped clients conduct their business in a

sustainable manner. We look at sustainable practices as an opportunity to apply our core

strengths for social good, and innovate to create winning solutions.

We are aware that growth is inextricably linked to the well-being of our ecosystem -

employees, business partners, local communities and the environment. Our sustainability

policy guides interactions with stakeholders and influences day-to-day actions.

2. Tata Consultancy Services Ltd.

The guiding principle of TCS‘ Corporate Social Responsibility programs is ―Impact through

Empowerment,‖ where empowerment is a process of strengthening the future today, so that

risks are minimized, value created and certainty is experienced. We strive to ensure that the

communities engaged through our CSR initiatives also experience certainty in their lives.

3. Tech Mahindra Ltd.

We aspire to see youth that is constructively employed, children who are purposefully

engaged and a society that provides equal opportunities to people with different abilities.

4. Oracle Financial Services Software Ltd.

Oracle's corporate citizenship initiatives are grounded in our technology leadership. We are

committed to using our resources to increase opportunity, protect the environment, advance

education, and enrich community life.

―Our endeavor is to support activities which do not have any religious or political affiliation.‖

Pg, 15, Annual Report 2011 – 12

5. K P I T Cummins Infosystems Ltd.

―KPIT Cummins‘ corporate social responsibility initiatives strive to ensure that we

contribute to the well-being of all our stakeholders. Our choice of the initiatives is

based on our areas of core strengths as this will result in maximum benefit for the

stakeholders by blending our passion with our competencies.‖ Cummins India

Sustainability report, 2012 – 13


Industry IV – Crude Oil and Gas, Electricity distribution and Refinery

1. Oil and Natural Gas Corporation Ltd.

CSR is rooted in sustainable and inclusive growth for all key stakeholders. ONGC has a

stakeholder centric approach and aims at creating value for all stakeholders, through adoption

of well designed and executed CSR projects in alignment with guidelines for CSR.

2. Bharat Petroleum Corporation Ltd.

Making a difference and adding value in people‘s lives.CSR Methodology includes

i. Building sustainable community where BPCL operates

ii. Health and safety of workforce and community

iii. Environment to minimize adverse impacts while taking steps to protect and enhance

natural environment

3. Oil India Ltd.

To promote awareness and practice of good corporate citizenship, by business becoming an

integral part of societal process, where people have access to resources to make informed

choices and decisions towards a more humane and compassionate society.

CSR strategy encompasses mobilizing core competencies and resource of business, public

organizations and government institutions, to facilitate their working in partnership on

projects that benefit society.

4. Indian Oil Corporation Ltd.

―Thrust on CSR for Inclusive growth‖, pg 40, IOC Corporate Sustainability Report, 2010

―Through its Memorandum of Understanding (MoU) with the Public Sector Undertakings,

the Government of India has been bringing enhanced focus to CSR activities and Sustainable

Development. This is a welcome step and the corporation has already incorporated targets

pertaining to these areas in its MoU with the Government. Thrust on these areas will go a

long way in establishing a long-term competitive edge to the corporation.‖ Page 13, IOC

Corporate Sustainability Report, 2010

5. Power Grid Corporation of India Ltd.

Power Grid Corporation as a responsible corporate citizen shall promote community

development with focus area on education, healthcare and infrastructure development and

support ecology and environment conservation and disaster relief in the country.


4.2.2 SECTION I - PART II - DERIVED CSR STRATEGY

4.2.2.1 Findings and Analysis– Aggregate Level

The Sustainable Development Model is followed by 48% of the organizations and Integrative

Social Contract model is found to exist in 43% of the cases.

4.2.2: Graph I: CSR Models in Practice across Four Sectors – Aggregate View

5%

19%

14%

43%

5%

10%

48%

0% 10% 20% 30% 40% 50%

Ethical

Risk Management

Strategic

Integrative Social Contract …

Integrative

Stakeholder Management

Sustainable Development

CSR Model - Overall (4 Sector view)

Percent

4.2.2.2 Findings and Analysis - Disaggregated Level:

i. 80% of the Firms in the Automotive sector follow a Sustainable Development model.

ii. 60% of the firms in the Oil, Gas and Energy Transmission sectors follow a

Stakeholder Management Model

iii. 60% of the firms in the Computer Software sector and 67% of firms in the Banking

sector follow the Integrative Social Contract model.

4.2.2: Graph II: CSR Models in Practice across Four Sectors – Disaggregated View

20%

40%

20%

20%

80%

20%

40%

20%

60%

17%67%

33%

20%

20%

60%

20%

0% 20% 40% 60% 80% 100%

Ethical

Risk Management

Strategic

Integrative Social Contract theory - CC

Integrative

Stakeholder Management


Sectoral View of CSR Models

ITES Banking Oil and Gas and Energy Transmission Automotive


4.2.2.3 Content Analysis of CSR Philosophy and Strategy

Automobile Sector:

The models underlined in Chapter 1 have been used to map the efforts of firms in

purview.

i. Out of the five firms analyzed, the theme of CSR as Sustainability was found to exist

in four organizations (80% of the cases). This is basis the usage of the concept of

―Sustainability‖ or emphasis on all three aspects of economic, social and

environmental impact.

ii. The concept of stakeholder management, Integrative model and risk management

model were found to co – exist with the sustainable development model in three

firms.

iii. Ethical and Risk management model was also found to co-exist in one

organization.

Table 4.2.2.3.1 Content Analysis Mapping in the Automotive Sector

S

No.

Company CSR Philosophy Themes (Key words underlined) Model

1 Maruti

Suzuki

Enhance stakeholder wealth

Engage with all stakeholders

Promote their sustained growth and well being

Stakeholder

Management , similar

to Greater common

good approach

Sustainable

Development

2 Tata Motors

Engaged in community and social initiatives on

labour and environment standards in

compliance with the principles of the Global

Compact

Serving rural communities adjacent to its

manufacturing locations.

Ethical model –

Universal rights

Risk Management

3 Mahindra and

Mahindra

Lead businesses towards sustainability

"Building possibilities"

Making every aspect of our business

sustainable

Sustainable

Development

Integrative model

4 Hero

Motocorp

Serving humanity through social initiatives

Balance between Economic, Environmental

and social issues faced by business

Highest standards of safety and environment

protection

Sustainable

Development

Risk management

5 Bajaj Auto CSR is synonymous with conducting Business

Enable on the path of 'sustainable and inclusive

Sustainable

Development


S

No.

Company CSR Philosophy Themes (Key words underlined) Model

growth' and well being."

Banking Sector:

i. Out of the six firms analyzed, CSR is found to prevail in the form of Integrative

Social Contract and Corporate Citizenship model in 67% of the cases. This is basis

the strong sense of responsibility which the firm is found to have towards society,

especially the development agenda.

ii. CSR as Sustainable development is found to exist in 33% of the banks evaluated.

iii. Strategic model of CSR was found to exist in one case, because of the explicit

mention of Financial inclusion as part of the philosophy. Here it is found to co-exist

with the Integrative Social Contract theory.

Table 4.2.2.3.2 Content Analysis Mapping in the Banking Sector

S

No.

Name of

Organization

CSR Philosophy Themes (Key words

underlined)

Model

1 State Bank of

India Corporate citizen Integrative social contract theory -

CC

2 ICICI Bank Empower the poor

Elementary education, sustainable

livelihoods, primary health and financial

inclusion

Active collaboration with the

government and independent

organizations

Strategic CSR

Integrative social contract theory

3 Axis Bank Improve the standard of living

Education is the key to break the

relentless cycle of poverty

Help create capabilities

Theme is a strong sense of responsibility

towards society

Integrative social contract theory -

CC

4 PNB Operate in an economically, socially and

environmentally sustainable manner


5 Canara Bank Development of people from the lower

strata of the society

Socio-economic transformation

Integrative social contract theory -

CC

6 HDFC Bank Economic development and social

upliftment



S

No.

Name of

Organization


underlined)

Model

Key aspect of sustainability is

contribution to society through CSR

projects

Sustainability should form an integral

part of business

Computer Software:

i. Three out of five firms analyzed follow an Integrative Social Contract and Corporate

Citizenship model (60%).

ii. One firm each was found to follow Strategic, Sustainable development and risk

management models.

Table 4.2.2.3.3 Content Analysis Mapping in the Computer Software Sector

S

No.

Name of

Organization


underlined)

Model

1 Infosys Social contract inspires employees to

contribute to Community welfare,

environment sustainability and digital

literacy

Sustainability is not optional but a

business imperative

Integrative Social Contract theory


2 Tata Consultancy

Services

Impact through Empowerment

Communities engaged through our CSR

initiatives also experience certainty in

their lives

Risk Management

3 Tech Mahindra Aspiration - Youth is constructively

employed, children are purposefully

engaged and society provides equal

opportunities to people with different

abilities

Overall sense of responsibility towards

society


4 Oracle Financial

Services Software

Ltd.

Corporate citizenship initiatives are

grounded in our technology leadership


– Corporate Citizenship

5 K P I T Cummins

Infosystems Ltd.

Contribute to the well-being of all our

stakeholders

Choice of the initiatives is based on our

areas of core strengths

Strategic CSR


Oil and Gas and Energy Transmission:

i. Three out of five firms analyzed follow a Sustainable Development model (60%) and

two follow an Integrative Social Contract and Corporate Citizenship model (40%).

ii. One firm each was found to follow Strategic, stakeholder management and risk

management models.

iii. It is found that Integrative social contract theory co-exists with Strategic CSR

iv. It is also found that Sustainable development model co-exists with Stakeholder

management and Risk management models in this sector.

v. In the case of Oil India Limited, there is a specific reference to aiding the creation of a

more just and humane society in the CSR Philosophy. While, this is near the Greater

Common Good approach, it is felt, that this aspect as not been covered by any of the

theories prevalent in the literature on CSR, and needs further investigation.

Table 4.2.2.3.4 Content Analysis Mapping in the Oil, Gas and Energy Transmission

Sector

S

No.

Name of

Organization


underlined)

Model

1 ONGC Sustainable and inclusive growth

Stakeholder centric approach

Sustainable Development Model

Stakeholder Management Model

2 Bharat Petroleum

Corporation Ltd. Sustainable community

Health and safety of workforce and

community

Environment to minimize adverse

impacts

Sustainable Development Model

Risk Management Model

3 Oil India Ltd. Corporate citizenship

More humane and compassionate

society

Mobilizing core competencies

Working in partnership



Strategic CSR

New motivation – Beyond Greater

Common Good

4 Indian Oil

Corporation Ltd.

Thrust on CSR for Inclusive growth Sustainable Development Model

5 Power Grid

Corporation of

India Ltd.

Responsible corporate citizen Integrative Social Contract theory



4.3 Section 2: CSR Organization

This section is devoted to broadly understanding CSR organization, CSR plans, knowledge

management aspects, evaluation processes, and employee volunteering nuances.

4.3.1 CSR Structure

1. Who is responsible for CSR in the organization?

It is found that out of 21 firms, 62% of the firms have a CSR Committee to oversee the

function, whilst 42% of the firms also have a Foundation or Trust.

4.3 Graph 1: Who is responsible for CSR in the organization?

14%

10%

14%

48%10%

62%

Q. Who is responsible for CSR in the organization?

Individual Director

Shared with HR

Separate department

Foundation / Trust

Central team/Council

Committee

Examples of Terms of reference of Committees where available are listed below:

Table 4.3.1 Terms of Reference of Corporate Social Responsibility Committees

S No. Firm Name Committee Responsible Terms of Reference

1 HDFC

Bank

CSR Committee 1. Formulate CSR strategy, Policy and Goals;

2. Monitor CSR Policy and performance;

3. Ensure legal and Regulatory compliance from

CSR Standpoint,

4. Ensure reporting and communication to

stakeholders on Bank's CSR.

2 Axis Bank Sustainable

Development and CSR

Committee

1. Monitor implementation of policy

2. Provide guidance for fulfillment of bank's social

responsibility.

3 ICICI Bank CSR Committee 1. Review of CSR Initiatives of ICICI Group and

ICICI Foundation for Inclusive Growth;

2. Make recommendations,

3. Review and implement any other matter, as

recommended by RBI and another body.

4 IOCL CSR and Sustainable

Development Committee

1. The committee recommends, monitors and

administers activities under CSR;

2. Sustainable Development Plan;

3. SD Policy;

4. Oversee implementation of performance.

5 BPCL Sustainable

Development Committee

1. Committee defines a clear sustainable agenda in

line with Board approval.

2. Direction - Increase awareness of management,

staff, employees, stakeholders, and peer group;


S No. Firm Name Committee Responsible Terms of Reference

3. Focus is on internal skill development and

competency building;

4. Benchmark Sustainable Development

performance against peer companies

It is observed that while in the Banking sector, the terms of reference include review and

monitoring responsibilities, this function is accorded to DPE in the Oil, Gas and Energy

sector.

2. Who is the CSR Function responsible to?

Out of 15 Firms for whom data was available,

Board - 87% (13 Firms)

CEO - 7% (1 Firm)

Chairman – 7% (1 Firm)

4.3 Graph 2: Who is the CSR Function responsible to in the firm?

87%

7%7%

Q. Who is the CSR Function Responsible to in the Firm?

Board

CEO

Chairman

3. How are CSR programmes decided/ initiated within the Firm?

Out of 10 firms, for which data is available, 40% of the firms have a mix of Board driven and

decentralized decision making regarding initiation of CSR Projects. For the remaining firms,

it is a combination of Individual Units, or employees with other entities

4.3 Graph 3: CSR Project Initiation Responsibility (Percentage Firms)

10%

40%

10% 10% 10% 10% 10%

0%

10%

20%

30%

40%

50%

Bo

ard

On

ly

Bo

ard

an

d I

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ivid

ual

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nit

s

Bo

ard

, In

div

idu

al

Un

its

and

Em

plo

yee

s

Ind

ivid

ual

Un

its

Alo

ne

Co

un

cil,

Emp

loye

es

and

Tru

st

CSR

Co

un

cil

Fou

nd

atio

n A

lon

e

CSR Project Initiation Responsibility (Percentage Firms)


Considerations which firms keep in mind whilst evaluating projects are as follows:

CSR Projects may be undertaken to enhance business interests (BPCL)

Undertaken in and around business and creating value for stakeholders (BPCL,

Infosys)

Part of nation building - undertaken for poorest of the poor, rural and tribal areas

(BPCL)

Large scale key projects in line with focus areas of the firm (ONGC, TCS)

Preference is given to those projects where state government/local administration or

Panchayat provides matching grant (Power Grid Corporation)

NGO partner should be involved in process of identifying projects upfront. (Power

Grid Corporation)

Disaster Relief (TCS)

Basis Community to interact with (TCS, ICICI Bank)

4. Who monitors performance of the CSR department?

It is observed that out of 15 firms for whom data is available, in 50% of the cases, the Board

is the monitoring authority for CSR performance, and Committee of the Boards have

responsibility to monitor in 43% of the cases. The CMD receives reports from the

implementing authority in the remaining one case (7%).

4.3.2 CSR Planning

1. Is there an annual plan for CSR in the firms under study?

Information is available for only 14 (67%) firms, all of which have an annual plan and

targets related to environmental and social initiatives.

2. Is there a scheme to encourage employee volunteering in the firm?

16 firms (76%) of the firms have disclosed the presence of employee volunteering

programs in the organizations.

A separate section is devoted to how employee volunteering programs are embedded in the

firms under study.

3. How is the CSR budget allocated to divisions and projects?

This data was available for only 9 firms. Information points to the fact that overall Profit after

tax (PAT) considerations guide allocations to CSR projects – 44% of firms. Importantly,

importance to individual business unit/division proposals with respect to budget allocations is

accorded in Sustainability reports in 2 firms.


4.3. 1 Graph I: How is CSR Budget allocated to Divisions?

44%

33%

22%

0%

20%

40%

60%

Percentage of overall PAT

Percentage of PAT and Program Basis

Individual BU Unit

Q. How is CSR Budget allocated to Divisions?

In the case of Oil, Gas and Energy Transmission sectors working under the overall

guidance of Department of Public undertakings, projects are decided at the beginning

of each year, and Memorandum of Understanding signed with the CPSEs.

A certain percentage of funds remain unallocated for national calamities e.g. 10% in

the case of Power Grid Corporation Ltd.

In the case of Private sector firms like Infosys, the Foundation receives proposals

from Institutions like NGOs, which are evaluated by a panel of experts. ―Projects are

prioritized by Impact Match Funding requirements, with availability of funds in the

corpus.‖

In the case of Banks like SBI, it has been disclosed that while overall 1% of net profit

was devoted to CSR, normal donations constituted 0.75% of profit and national

donations constituted 0.25% of profit.

It is found information is generally lacking in the public domain related to this area.

4. Guidelines related to NGO Partnership

7 firms have mentioned different nuances about partnering with NGOs. Some of the key

points preferred by Firms are:

They should be ―outstanding community based NGOs‖.

NGOs should ―share the goals and values of the firms‖.

NGOs should have ―demonstrated competence, dedication and integrity‖.

NGOs should be able to have ―detailed discussions regarding objectives, deliverables,

timelines, outcomes‖ related to a project under consideration.

NGOs should be able to submit ―reports and feedback analysis‖.

―Non religious and apolitical NGOs‖.

Should have an 80G certificate.


4.3.3 Knowledge Management and Awareness Creation about CSR Programs

1. How does the Firm enable employees to learn about CSR and Sustainability?

Various practices are adopted by Firms to enable employees to learn about CSR and

Sustainability. The most widely practiced are related to Engagement via participation in

volunteering programmes (67%), and embedding into company structure and policies

(52%) e.g. Code of Conduct and systems related to HSE, as well as training and workshops

(52%)

4.3.3 Graph I: How does the firm enable employees to learn about CSR and

Sustainability?

24%

10%

52%

14%

33%

52%

0%

76%

14%

0%10%20%30%40%50%60%70%80%

Code

of C

ondu

ct

Impa

ct M

easu

res

Com

pany

str

uctu

re

and

polic

ies

Purc

hasi

ng a

nd

supp

ly c

hain

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itia

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s

Com

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icat

ion

and

dial

ogue

Empl

oyee

trai

ning

an

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orks

hops

Com

pany

vis

its

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ng

prog

ram

mes

Imm

ersi

ve

expe

rien

ce a

t th

e ti

me

of r

ecru

itm

ent

Q. How does Firm enable employees to learn about CSR and Sustainability

Other practices described by firms include initiatives like:

Internal Skill Development (BPCL)

Competency building (BPCL)

New initiatives (BPCL)

Benchmarking (BPCL)

Sustainability performance (BPCL)

Sustainability workshops (BPCL)

E Learning module on Environmental Awareness (KPIT Cummins)

Celebration of Environmental days (Infosys)

Eco Group (Infosys)

Art (Infosys)

Collaborate with NGO Partners with respect to Street plays (Infosys, ICICI Bank)

Payroll giving (ICICI)

Fellowships for Teach India (ICICI)

4.3.4 CSR Systems and Evaluation

1. Does the company measure environmental and social impacts and externalities?


It is found that 52% of the firms measure environmental and social impacts of

operations and initiatives. No firm was found to have reported any externality related

to their programmes. Information was not available for the remaining 48% of firms.

2. Does the company’s risk management system include social, environmental and

ethical risk?

Only 4 firms (19%) have disclosed they incorporate social, environmental and ethical

risks in their Risk management system. 2 firms (9.5%) have disclosed they do not,

and information is not available for the remaining 15 firms (71%).

3. Is there a specific CSR balanced scorecard in place?

Only 2 firms (9.5%) have disclosed the presence of a scorecard, and one organization

has disclosed it is under development. There is no information available in the

remaining 19 firms.

4. Does the annual Op plan include CSR components?

10 firms (47.6%) have CSR components as part of their Operation Plans. No

information is available about the other firms.

5. How frequently do different facilities report on CSR issues?

The following practices are available for 7 firms.

Annually – 3

Quarterly - 2

Monthly – 1

Weekly – 1

The most holistic information was found for TCS where ―CSR initiatives are

tracked to determine outcomes achieved and benefits to society. The company has

an Internal tracking mechanism, monthly reporting process, follow up field visit,

telephonic and email communications. It has engaged highly trained employees to

drive and monitor CSR actions.‖

6. What aspects of projects are evaluated when assessing performance of projects?

Firms evaluate various aspects in different areas.

Utilization of funds vs. Sanctions

Outcomes

Impact factors and Benefits achieved

Publicity measures undertaken

7. No information is available in public domain regarding inclusion of CSR Goals

and achievements in the annual performance appraisal of employees, as well as

consequences thereof.


4.3.5 CSR Communication

1. What form does CSR Communication take in the firms under study?

Various forums like Annual Reports, Sustainability Reports, CSR Reports, Business

Responsibility Reports, Policies, Website and Online portal form the key forums for

communicating information related to Corporate Social Responsibility.


4.4 SECTION 3: EMPLOYEE VOLUNTEERING PROGRAMS

This section aims to provide examples of employee volunteering programmes in the context

of the sectors under study. The focus is on understanding strategy, structural designs,

evaluation of programs and Impact areas.

4.4 Graph I: Components of a Model of Employee Volunteering

4.4.1 Strategy

A key finding related to strategy is that Volunteer Programs in practice dovetail into overall

firm CSR Strategy and focus areas.

Moreover, they tend to be localized (Infosys), to facilitate easy engagement with causes of

interest in the vicinity of the place of work. This also leads to decentralized decision-making,

enabling employees to feel empowered. This helps increase employee satisfaction (Punjab

National Bank) and builds ―social capital‖ for the benefit of the firm.

Volunteering is also being influenced by globalization. For employees of Indian firms

located in other countries, ―giving back to society‖ philosophy may take the form of

participating in volunteering programs at their client‘s end.

The Infosys Samaritans Network – Group of Volunteers counseling on life challenges,

adds a third ―Looking Within‖ dimension to volunteering. Trained in ―barefoot counseling‖,

peer group of volunteers spend time listening to, empathizing with and supporting fellow

employees cope with life‘s challenges. They perform this activity over and above their jobs.


This activity is one of the first of its kind in India, and is running at seven campuses. It has

had positive outcomes for 638 employees.

Another interesting finding is that firms are innovating with degrees of volunteer

engagement and skills in their programs. A case in point is the three tier model at Tech

Mahindra. It broadly conforms to the model provided below:

―A base of large number of volunteer-driven events: Large number of volunteers

(requiring generic skill, small time-commitment, one-time volunteering also fits in).

A narrower next level of activities: Higher volunteer engagement (specific skill,

longer time duration, ongoing): Examples - Magnificent seven (M7) volunteers and

full time volunteering, Infosys Sabbatical Program – the first of its kind in India.

A top-level of advocacy for right causes at right places, using Tech Mahindra

strengths.‖

At the other end of the plane is BPCL, which aims to ―develop employee volunteering as part

of corporate culture by having a minimum of 10 % employees help out in the next five

years.‖ The strategy is to create core competent volunteers in thrust areas like energy

audits, environment awareness, pipeline security and disaster management. This will

enable ―a responsible business‖.

There are multiple models which relate to the going alone vs. collaborative mode. There are

Foundations and trusts which may intervene in the social space through their dedicated

charitable arms e.g. Bajaj with nearly 40 Trusts. Others find it meaningful to participate in

social interventions with other NGO partners e.g. ICICI Foundation, collaborating with

Pratham NGO in the education space in Rajasthan schools. New opportunities are also arising

with industry platforms providing opportunities to firms to collaborate on volunteer

programs, e.g. Nasscom Foundation, with their My Kartavya site allowing firms to view and

register for activities of mutual interest.

4.4.2 Structural Design

In terms of design, TCS Maitree model is exemplary.

Maitree (meaning ―friendship‖) is the worldwide structure and brand for the company‘s

volunteering. Within the company, Maitree has a series of clubs for Associates and their

families. ―Activities, managed by volunteers, are based on annual surveys of employee

interests. ―Offline volunteers‖ perform in support roles for ―on the field volunteers‖ who

deliver the programs.

The ―overall structure includes Global Head, Maitree which is supported by a Corporate

Maitree team that helps and guides the roll out of all the initiatives and activities in

coordination with Branch Leads, Maitree & supported by HR teams in branch offices who

report to the branch HR heads.


Maitree‘s success is directly related to its integration with the core business. It is seen as an

essential channel for human resource development and as a vehicle for engaging with

employees.‖

The key trend is that it is employee driven. Another good example is ―The Magnificent Seven

(M7) model, which is a team of seven or more volunteers, who take ownership of a project

under a program. The team identifies requirements and provides full-cycle leadership to the

identified project, and implements it with other volunteers and Foundation members. Tech

Mahindra has 15,000 registered volunteers and 500 Magnificent Seven-teams, crossing

8,50,000 volunteer hours.‖

4.4.3 Evaluation

No firm in the sectors under study identified the presence of an evaluation model for

employee volunteer efforts separately.

4.4.4 Impact

The focus areas of activity per review of sources, highlights the top three areas for

employee volunteering. These are Education, Healthcare and Environment, and are

corroborated with the findings of Principle 8 on Inclusive Growth, later on the dissertation.

4.4.Graph II: Focus Areas of Employee Volunteering Programmes

43%

57%

38%

19%14%

24%

10%

19%

0%

10%

20%

30%

40%

50%

60%

Hea

lthc

are

Edu

cati

on

En

viro

nm

en

t

Emp

ow

erm

ent

Wat

er

Pay

roll

Giv

ing

Blo

od

Do

nat

ion

Cam

ps

Sup

po

rt a

ctiv

itie

s o

f Tr

ust

s an

d

Fou

nd

atio

ns

Focus Areas of Employee Volunteering Programmes

Some examples of focused Impact are:

Volunteers are making an impact in the area of philanthropy by donating toys, notebooks,

school kits, blood donations, clothes etc. At Axis Bank, ―Axis Cares‖, the payroll giving

program has a donor base of more than 7,500 employees with a monthly collection of Rs.

14.63 Lacs.


Infosys employees are involved in a wide variety of activities, ―including the Akshaya Patra

Foundation‘s mid-day meal program, serving 1 million+ rural children in seven states.

1,49,993 employees are at the heart of the programme. Infosys advocates individual social

responsibility. People contribute individual time.‖

At Infosys, 2000 volunteers belonging to the Eco Group have a mandate to engage, enable

and embed a culture of environmental protection. They collaborate with United Nations

Climate Change Conference (COPI5), World Wide Fund for Nature, 350.org, Green Peace,

British Council, Rotary International and other organizations.

PNB employees organized a mini marathon along with local authorities in Lucknow to

create awareness about voting rights.

Talking Book Library Initiative: ABF volunteers record educational material (ICSE

syllabus) for visually challenged students.

TCS Volunteers clocked more than 90,828 hours globally in community service.

The list is endless and it is not possible to list all areas of involvement in this dissertation.


4.5 SECTION 4: NATIONAL VOLUNTARY GUIDELINES - INTEGRATION WITH

BUSINESS

4.5.1 Principle 1: Businesses should conduct and govern themselves with Ethics,

Transparency and Accountability

The aim of good corporate governance is to ensure commitment of the Board in managing the

company in a transparent manner for maximizing long term value of the company for its

shareholders and all other partners (OIL India Annual Report, 2011). Corporate governance is

about commitment to values, ethical business conduct and distinction between personal and

corporate funds. Decisions in the organization need to be based on a set of principles

influenced by values, context and organization culture. Transparency in decisions is a must.

In this context, the dissertation aims to understand practices related to ethics, transparent

functioning, deployment of rules like codes of conduct, and what aspects are covered, as well

as how decisions are made. It is further envisaged in the context of CSR and Sustainability

specifically, who is the governing authority. The BR, Annual and Sustainability reports have

been taken as the frame of reference.

1. Number of Firms submitting BR Reports

Out of 21 organizations for whom data has been collected, 71% (15 firms) have published a

Business Responsibility Report in the public domain (individually or as part of the Annual

Report), whereas 24% (5) have not published a BR report. No individual BR report has been

published by 1 organization in the automotive sector.

Within Sectors, Banking has accomplished 100% disclosure, whereas, Oil, Gas and Energy

transmission (4 firms) has the largest number of entities who did not publish a BR report.

4.5 Graph 1: Sectoral Breakdown (%) Published BR Report

80

100

80

20

0 50 100 150

Automotive

Banking

Computer Software

Oil, Gas and Power Transmission

Sectoral Breakdown (%) Published BR report

Sectoral Breakdown (%) Published BR report

2. Is the office of Chairman separate from that of MD and CEO?

In 61% of the firms for whom data has been collected, the Office of the Chairman is

separate from that of the Managing Director and/or Chief Executive Officer.


4.5 Graph I1: Sectoral Breakdown (%) Firms Exhibiting Separation of Chairman

from MD/CEO

100%

67%

80%

0%

0% 20% 40% 60% 80% 100% 120%

Automotive

Banking

Computer Software

Oil, Gas and Power Transmission

Sectoral Breakdown (%): Firms exhibiting separation of office of Chairman from

MD/CEO

3. Is the Chairman of the Board a Non Executive role?

Out of 18 firms for whom data was available, 9 firms have a Non – Executive Chairman.

In the Oil, Gas and Power Transmission sector, it is found that all five firms have an

Executive Chairman. All organizations, being Government companies, come under the

administrative control of the Ministry of Petroleum & Natural Gas (MoP&NG), and the

Directors are nominated by the Government of India, and need to induct the requisite number

of Independent Directors, as required under clause 49 of the Listing agreement as well as

Department of Public Enterprise guidelines on Corporate Governance. An exception to this

rule was disclosed by Indian Oil, (for the period since Jan 24th

, 2013) in its Business

Responsibility Report.

4. Prevalence of code of conduct?

All 21 firms have a code of conduct for Directors and Senior Management. Additionally,

some firms are playing a more responsible role by making the code applicable to all

employees, suppliers, business partners and subsidiaries.

i. 42% firms have made the code of conduct applicable to all employees.

ii. 29% firms have made the code applicable to their subsidiaries (Tata Motors,

Mahindra and Mahindra, TCS, Oracle, KPIT Cummins and Indian Oil)

iii. 19% have made their codes of conduct applicable to Business partners

iv. 14% firms have extended them to dealings with customers.

A good practice has been witnessed in the report by Indian Oil Corporation Ltd., whereby it

has been disclosed that the only exception to affirmation of the Code of conduct, has been

Shri Sudhir Bhalla, Director (HR), who is in serious medical condition since February 2012.

(Report on Corporate Governance)

5. Is there an Ethics code of conduct and specific committee overseeing Ethics in the

firms?

Whilst 38%, (8 firms) have an ethics code of conduct, 29% (6 firms) have additionally

constituted an Ethics Committee to oversee aspects related to ethics, bribery, corruption,

insider trading, principles related to execution of operation and procedures dealing with

conflict of interest.


6. Have there been charges of corruption filed against any firm since 2010?

i. ONGC is the only firm which has disclosed 5 charges of corruption being levied

against the firm.

ii. 3 firms have reported No cases of corruption being charged against them (Maruti,

Tata Motors and Bajaj Auto), whilst there is no information available for other

firms.

7. Have there been charges of anti – competitive behavior against any firm since 2011?

5 firms have reported that there have been no charges of anti – competitive behavior levied

against them in the most recent years. These are Maruti, Tata Motors, Mahindra and

Mahindra, Hero Motocorp and Bharat Petroleum Corporation of India Ltd.


4.5.2 Principle 2: Businesses should provide goods and services that are safe and

contribute to sustainability throughout their life cycle.

1. Material issues

Issues which are of importance to the stakeholders and to the firm which are of high

relevance to both are stated below:

It may be noted that this data was available for only 9 firms. The table below highlights that

Community stewardship and Environmental sustainability are the most important material

issues for this set of organizations.

Table 4.5.1 Snapshot – Materiality issues disclosed by firms in Automotive, Computer

Software, Oil, Gas and Energy Transmission sectors.

(No Disclosure in Banking Sector)

S N

o.

Issu

e

Ma

ruti

Su

zuk

i

Ta

ta M

oto

rs

Ma

hin

dra

&

Ma

hin

dra

Info

sys

TC

S

ON

GC

Ind

ian

Oil

Bh

ara

t

Pet

role

um

Po

wer

G

rid

Co

rpo

rati

on

of

Ind

ia

1 Scope 3 Emissions

2 Road Safety 3 Skill development 4 Customer Satisfaction

5 Product Safety 6 Grievance Redressal and IR

7 Employee wages and benefits 8 Development and Training

9 Corporate Governance 10 Compliance

11 Business growth and profitability 12 Local supplier development 13 Climate Change 14 Supply chain management and 15 Material Management

16 Occupational Health and Safety

17 Community Stewardship

18 Environment sustainability

19 Shareholder return 20 Employee satisfaction 21 Research and Development 22 Fair Business practices

23 Ethical behaviour 24 Bio - Diversity

25 Resource efficiency 26 Water

27 Effluents

28 Energy

29 Transparency


S N

o.

Issu

e

Ma

ruti

Su

zuk

i

Ta

ta M

oto

rs

Ma

hin

dra

&

Ma

hin

dra

Info

sys

TC

S

ON

GC

Ind

ian

Oil

Bh

ara

t

Pet

role

um

Po

wer

G

rid

Co

rpo

rati

on

of

Ind

ia

30 Hiring and retaining workforce

31 Unconventional hydro carbon

32 Magnetizing difficult and isolated

hydro carbon pools

35 Asset Security

36 Product pricing 37 Supply shocks - Raw material

availability

38 Supply shocks in the form of

Finished product availability at

storage & retail points

39 Human Rights

2. Innovative products and services of the Firms within the industry

All five firms in the Automotive sector reported information related to innovative

products.

Table 4.5.2: Automotive Industry – Innovative Products with Environmental and social

benefits

S

No.

Sector Firm Name Innovative Products

1 Automotive Maruti Suzuki 1. Launched 5 models with i - GPI CNG engine

technology. Developed new intelligent Gas Port Injection

technology for CNG bi - fuel vehicles.

2. LPG version - Wagon R

3. Electric Eeco car and hybrid SX4 showcased

4. Environment friendly refrigerant gas R134a in

products

5. First company in India to introduce CNG option in

conventional technology 6. LPG engine technology

7. CVT - New Transmission technology which can change

for infinite number of gear ratios

8. K Series engine technology

9. Zoned catalytic converter technology - leading to

reduction in emissions

10. Rolling resistance of tyres leading to decrease in

emissions

11. Light – weighting: In Alto, reduced weight of seat by

5 Kgs

12.. End of life vehicles - all vehicles except Omni, Gypsy

and Maruti 800 are ELV compliant

2 Automotive Tata Motors 1. Hybrid electric cars

2. Hybrid Bus

3. Fuel cell bus

4. Electric car


S

No.

Sector Firm Name Innovative Products

5. Electric small commercial vehicle

6. CNG version of buses, LCVs, LPG version of passenger

cars

7. Fuel efficiency in passenger cars and CNG variants

8. Reconditioned aggregates on exchange basis reduces

vehicle downtime

9. Small commercial vehicles and pickup range

promotes entrepreneurship

3 Automotive Mahindra and

Mahindra

Passenger vehicles:

1. Fuel efficient, engine start/stop technology

2. Micro/CNG variants of some models

3. End of life models for export

LCVs:

1. Low cost, energy efficient

2. Low cost tractors - low weight for small and

marginal farmers

4 Automotive Hero

MotoCorp

1. 1980s - Pioneered fuel efficient and environment

friendly 4 stroke motorcycles

2. First company to launch fuel injection technology in

Indian motorcycles (2006) 3. Green Technology - Introduced special acrylic cathodic

electro disposition (ACED) painting process for frame

body. The result is 99% paint transfer efficiency and

minimizes effluents 4. Green roof - energy saving

5 Automotive Bajaj Auto 1. Fuel Efficiency - Discover 100 model has yielded 90.3

Kms/litre (22% improvement in last 4 years)

2. Improved engine oil in 2010 - Bajaj DTSL - 10,000

for 4 stroke vehicles resulting in halving of engine oil

consumption 3. Power to weight ratio - High strength materials and

plastics used to optimize vehicle weight and strength

4. Vehicles are complaint with BSIII norms in India.

All six firms reported information related to this section and information was collated.

Table 4.5.3: Banking Industry – Innovative Products with Environmental and social

benefits S No. Sector Firm Name Innovative Products

1 Banking SBI 1. Green Channel Counter

2. Green Remit Card

2 Banking Canara 1. Financial Inclusion

2. Green Banking

3 Banking PNB Financial products which are useful for marginalized

people are:

1. Biometric Smart Cards: Enables ―illiterate‖

people to withdraw money from their Bank accounts

2. PNB Kalyani Cards: Used by women in rural

areas for their general needs.

3. PNB Krishak Sathi: Loan scheme to avoid

indebtedness

4. Internet banking: Paperless

The Bank does not deal with hazardous products

4 Banking HDFC 1. Project Appraisals: For projects above Rs. 10

crores for a period over 5 years, the ―Corporate

Credit Risk Policy details a Social and

Environmental Risk Management System


S No. Sector Firm Name Innovative Products

(SEMS) which assesses the social and

environmental risks and impacts of the projects, in

addition to their financial viability."

2. Retail side:

i. More Products are made available through

direct channels - ATMs

ii. Internet Banking and phone banking

iii. Campaigns to encourage customers to use

direct channels

3. Farmers: Encouraged to take up organic farming,

or take up more environment friendly practices.

4. Products which yield social Benefits:

i. Basic Savings Bank Deposit Account

(BSBDA) for rural areas

ii. Kisan Gold Card

iii. Grameen Loans

5 Banking ICICI 1. The Rural & Inclusive Banking Group focuses

on rural and below poverty line customers

2. The Technology Finance Group supports

research & development and sanctions assistance

to projects in the clean energy and renewable

energy sectors.

3. The ICICI Foundation for Inclusive Growth

focuses on the areas of elementary education,

sustainable livelihoods, primary healthcare and

financial inclusion.

6 Banking AXIS 1. Adopted an ―Environment & Social Safeguard

Policy” (ESSP), for carrying out environmental

and social due diligence, formulated in

compliance with the International Finance

Corporation (IFC) Performance Standards.

2. Social Commitments:

i. Electronic Benefit Transfer (EBT)

ii. Remittances

iii. Micro Loans and Insurance

3. Environment commitments:

i. Guardrails of social and Environmental

considerations for project appraisal and

finance. Disbursement to a project is

made only after ensuring it has MoEF

(Ministry of Environment and Forests)

approvals for the commencement of

work.

ii. The Bank has negotiated a Line of Credit

of USD 70 million from IFC to facilitate

the funding of projects in renewable

energy, clean technology and other

energy-efficiency projects.

The data on innovative products with social and environmental benefits is available for two

firms.

Table 4.5.4: Computer Software – Innovative Products with Environmental and social

benefits


1 Computer

Software

Infosys 1. Sustainability Business Solutions – separate BU

2. Sensor driven monitoring UPS batteries



2 Computer

Software TCS 1. ‗Global Network Delivery Model’ (GNDM™).

2. TCS is the first organization in the world to have

received the highest level 5 enterprise wide

‗Capability Maturity Model Integrated’

(CMMI) certification.

3. TCS has evolved an ‗Integrated Quality

Management System‘ (iQMS), which addresses

―quality assurance practices for all types of

projects. iQMS is an integrated approach for

implementing quality practices of world-class

quality models like ISO 9000, ISO20000, CMMI,

PCMM, Six Sigma, ISO 27001 and ISO 14001

aligned with the strategic objectives of the

Company.‖

4. Products:

i. APOnline, MP Online & MahaOnline,

ii. National Rural Employment Guarantee Act

(NREGA) Framework

iii. Power InSight

3 Computer

Software Tech

Mahindra

No Information

4 Computer

Software Oracle

Financial

Services

Software Ltd.

No Information

5 Computer

Software KPIT

Cummins

Infosystems

Ltd.

No Information

Only two firms have disclosed the innovative products and services with environmental

and social benefits for the next sector.

Table 4.5.5 Oil Gas and Energy Transmission Sectors – Innovative Products with

Environmental and social benefits


1 Oil, Gas,

Energy

Transmission

ONGC No Information 2 OIL India No Information 3 Indian Oil

Corporation

1. Technologies developed in-house include

INDMAX technology (for maximizing LPG

yield), Oilivorous –S bio-remediation technology

(extended to marine applications), Diesel Hydro

De-Sulphurisation (DHDS) catalyst, a special

catalyst for Bharat Stage-IV compliant Diesel,

IndVi catalyst for improved distillate yield and

FCC throughput, and adsorbent based deep de-

sulphurisation process for gasoline and diesel

streams.

2. Creating solar lanterns

3. First wind power unit (21 MW) is operating in

Kutch, Gujarat and since its commissioning in Jan

2009, it has generated Rs. 8.5 crore units equivalent

to a revenue of `Rs. 39.5 crore till 31.03.2011.

4. To straddle the complete bio-fuel value chain,

Indian Oil has formed a joint venture with the

Chhattisgarh Renewable Development Authority.



Indian Oil CREDA Biofuels Ltd. to carry out

farming, cultivating, manufacturing, production

and sale of biomass, bio-fuels and allied products

and services in Chhattisgarh.

4 Bharat

Petroleum

No Information

5 Power Grid

Corporation of

India Ltd.

1. The 1200kV UHVAC technology, the highest

voltage level in the world, is being developed by

Power Grid Corporation in collaboration with 35

Indian manufacturers. This is one of the unique

R&D projects in public-private partnership model.

2. Smart grid technology

3. One of the implementing agencies for the

prestigious National Knowledge Network (NKN)

project through which Government plans to

connect all knowledge centres across the Country

such as IITs, IISc, etc. on high speed connectivity.

3. Efforts of Industry to encourage sustainable sourcing and procurement

The following activities are undertaken to facilitate sustainable sourcing and procurement in

the industries:

Table 4.5.6: Sustainable Sourcing and Procurement practices – Sectoral View

S No. Practices

Au

tom

oti

ve

Oil

, G

as,

En

ergy

Tra

nsm

issi

on

Ban

kin

g

Com

pu

ter

Soft

ware

1 Policy to set up Environment Management system

at Supplier‘s end and Energy audits

2 Reduction of packaging material for component

supplies, Use of returnable and recyclable

packaging solutions

3 Localising vendors 4 Green purchase policy - Sustainability parameters in

vendor rating e.g. ISO 14001 compliance and

occupational safety, E Procurement

5 ISO/OHSAS certification 6 Dedicated suppliers park 7 Supply water and electricity from natural gas based

power plants to suppliers park

8 Waste elimination 9 Energy conservation 10 Pika - Pika (Fool proof ops) 11 EHS initiatives at Suppliers‘

12 Deliver material during night shift reducing traffic

congestion

13 Milk run system for 30 suppliers in Faridabad -

reduced Number of trips to Maruti by 30% and

improved Truck fill rate by 25%


S No. Practices

Au

tom

oti

ve

Oil

, G

as,

En

erg

y

Tra

nsm

issi

on

Ba

nk

ing

Co

mp

ute

r

So

ftw

are

14 Trucks with PUC certificates only are allowed

inside premises

15 HR and Quality systems - sourcing locally and

developing staff

It is found that Sustainable procurement and sourcing is most relevant for the Automotive

sector than others. A list of 15 best practices has been developed by analyzing the practices

prevalent in the four sectors.

4. Efforts of the Industry to encourage sustainable consumption

A review of the sectors highlights the following practices prevalent for sustainable

consumption in the sectors under study.

Table 4.5.7: Sustainable Consumption Practices – Sectoral View

S No. Practices

Au

tom

oti

ve

Oil

, G

as,

En

ergy

Tra

nsm

issi

on

Ban

kin

g

Com

pu

ter

Soft

ware

1 Monitoring emission and resource consumption e.g.

electricity and water

2 Captive power plant to generate clean energy with

natural gas and clean fuel

3 Virtual testing of products 4 Compliance with Guidelines. E.g. EU directive

2000/53/EC on End of Life Vehicles - this bans the

use of hazardous heavy metals like Lead, mercury,

Cadmium, Hexavalent chromium.

5 Aim to attain REACH (Registration Evaluation,

Authorization and Restriction of Chemicals)

6 Aims to provide lowest cost of ownership 7 Recon business - Eliminates use of fresh resources 8 Product Labeling

The research shows that except the Automotive sector, the firms in other areas have not

disclosed practices related to sustainable consumption of resources.

5. Efforts of the industry to encourage sustainable disposal of products and waste

This is a key area for industries worldwide, given that most industries focus on

production aspects, and very few procure end of life products back for recycling, reuse,

etc or safe disposal. The disclosed practices in this regards are presented below.


Table 4.5.8 Practices for Sustainable Disposal – Sectoral View

S No. Practices

Au

tom

oti

ve

Oil

, G

as,

En

erg

y

Tra

nsm

issi

on

Ba

nk

ing

Co

mp

ute

r

So

ftw

are

1 Wastes are categorized as Hazardous, Non

Hazardous and Wet/ Dry

2 E - Waste management, maintenance and disposal -

through authorized dealers

3 Hazardous waste is sold to authorized dealers (Paint

sludge, phosphate sludge, ETP sludge)

4 Glass waste and metal scrap is sold to recyclers and

reusers

5 Waste that cannot be reused/recycled is disposed

through vendors approved by Pollution Control

Board.

6 Restrict waste generation

7 Support SIAM for Product recycling in India

8 Portion of canteen waste is used in bio-gas. 9 Waste segregation at source

10 Waste water treatment at mobile Effluent Treatment

Plants, as well as reuse

11 Managing produced water by recycling - either

through treatment at ETPs, or used for water

injection into the reservoir for pressure

maintenance, or re-injected into sub surface water

wells

12 Production waste e.g. Drilling mud, and hazardous

waste - tank bottom and oily sludge. Bio -

remediation method is used for oil sludge

13 Spent catalysts generated at

refineries may be either recycled by the suppliers

themselves or disposed off to secured landfill sites

in accordance with the central and state regulations.

14 BPCL has also partnered with other oil and gas

majors in India and port authorities to setup a Tier I

Oil Spill Response facility at Mumbai harbor, since

18th February 2011, with the objective of

minimizing both ecological and economic damage.

Fourteen practices prevalent for disposal of wastes in industry have been documented. The

majority of these practices are relevant in the manufacturing scenario in the Automotive and

Oil and Gas sectors.

For the purpose of highlighting industry trends, the data for the above three parameters –

procurement, consumption and disposal have been studied at an industry level.

6. Certifications leveraged in Industry

This section helps identify practices related to certifications being sought by the

organizations under study.


Table 4.5.9 Footprint of Industry Certifications

S No. Sector Firm

Name

ISO

9001

ISO

14001

OHSAS

18001

SA

800

0

Others

1 Automotive Maruti

Suzuki ISO/IEC 27001; SX4 -

OBD II

2 Automotive TATA

Motors ISO 50001: 2011 (Sanand

Plant) - EMS

3 Automotive Mahindra

&

Mahindra

Reva - IGBC Ratings

(Platinum)

4 Automotive Hero

Motocorp

5 Automotive Bajaj Auto

6 Banking SBI

7 Banking Canara

8 Banking PNB ISO 27001

9 Banking HDFC

10 Banking ICICI

11 Banking AXIS ISO 27001

12 Computer

Software

Infosys ISO 27001

13 Computer

Software TCS ISO 9000, ISO20000, ,

ISO 27001

14 Computer

Software Tech

Mahindra ISO/IEC 20000-1:2005,

ISO/IEC27001:2005,

BS25999:2008.

15 Computer

Software Oracle ISO 27001

16 Computer

Software KPIT

Cummins

Infosystem

s

17 Oil, Gas, Energy ONGC

18 Oil, Gas, Energy OIL India

19 Oil, Gas, Energy IOCL

20 Oil, Gas, Energy BPCL

21 Oil, Gas, Energy Power Grid

The certifications stand for:

ISO 9001:2008 - Sets out the requirements of a quality management system

ISO 9000:2005 - Covers the basic concepts and language

ISO 14001: Sets the criteria for Environmental Management system

OHSAS 18001: International occupational health and safety management system

specification.

SA 8000: It is one of the world‘s first auditable social certification standards for decent

workplaces, across all industrial sectors. It is based on conventions of the ILO, UN

and national law, and spans industry and corporate codes to create a common

language to measure social compliance.


ISO 27001: International Standard for Information Security Management system.

ISO 20000: First International Standard for IT Systems management

BS25999: British Standard for Business Continuity Standards


4.5.3 Principle 3: Businesses should promote the well - being of all employees.

1. Status of Employee benefits prevalent in sectors under study

Apart from the Defined contribution schemes like Provident Fund and Superannuation benefits, as

well as Defined benefit schemes like Gratuity and Pension, and long term benefits like privilege

leave, there are other benefits which Indian Industry provides to employees. Whist the graph below

provides a visual snapshot of how many organizations have declared in their reports the benefits,

they provide to employees, the span of initiatives – both mandatory and voluntary is quite wide,

running into 33 variables. It is also witnessed, that none of the firms have reported disabled friendly

facilities as one of the benefits.

4.5 Graph II1: Reported Benefits for Permanent Employees

0% 10% 20% 30% 40% 50% 60% 70% 80%

GratuityMedical

Provident fundPension

Compensated absencesSuperannuation

Post retirement medical schemeMaternal Leave

ESOPsVariable incentives

Scholarships for childrenCanteen facilities

Paternal LeaveAccess to holiday homes

Retirement AllowanceCreche

Reduced InjuriesLeave Encashment

TransportationRecreation & Sports Facilities

Reduced ROI on advancesHigher interest on deposits

Work life balanceLeave fare concession

Maternity Leave for AdoptionPost Retirement Housing allowance

Part time and flexible timingSabbatical for Volunteer work

Sabbatical for higher educationGymnasium with Instructor

Assistance - Residence (House deposit, Finding)Disabled friendly facility

Employee Benefits Declared by Firms in Study (%)

Benefits for Women Employees:

Of special mention are specific benefits targeting women employees.

i. Policy against sexual harassment at work

ii. E- magazine for women employees

iii. Extended maternity leave


iv. Internal e-portal for women

v. Special workshops

vi. Awards to recognize achievements of women employees

vii. 24 hour helpline for employees in distress

viii. Diversity - Women's Inclusivity Programme.

Benefits for Contract workers:

Apart from these, for contract workers in Automotive and Oil sector, the firms have disclosed

benefits underlined below:

i. Safety equipment

ii. Health checks

iii. Free food in canteens

iv. Infosys has a ―bi - monthly process of governance and checks for labour laws like

Minimum wages Act, etc and grievance redressal through appropriate channels, and

medical and insurance policies for them.‖

v. ONGC provides medical coverage and educational assistance through the ONGC

Sahyog Trust; Group Insurance scheme; assistance for marriage of girl child, and

livelihood assistance.

2. Equality of Opportunity is assured by meritocratic systems for recruitment, placement,

promotion, transfer, compensation and training as well as involvement in communities and

governing bodies.

3. Only two organizations have mentioned that timely wages are paid to employees (TATA

Motors and Infosys)

4. Attrition rates disclosed by the organizations vary across sectors:

Automotive: Maruti: 6.1%; Mahindra and Mahindra: Farm Division (Males – 6%,

Females – 9%), Auto Division (Males – 4%, Females – 6%), Reva (Males – 15%,

Females – 3%); Hero MotoCorp: 5.1%

Computer Software: Tech Mahindra: 19%, KPIT Cummins: 18.6%

Oil, Gas and Energy Transmission: Bharat Petroleum – 1.22%

Information was not available for the other organizations.

5. Training and Development – Employee Learning and Development

Training Infrastructure: 76% of the firms disclosed presence of internal training function,

and 52% disclosed using external training facilities e.g. leveraging industry experts and

Academic Institutions for leadership trainings.


Practices: The following table highlights focus areas for trainings – both internal and

external

Table 4.5.10: Training Practices: Internal and External to the Organization

S No. Opportunities for Internal

Training and Development

Function

Opportunities for Training and

Development through organizations

external to the firm

Online resources

1 Employee Induction and Orientation Overseas technical scholarships Infosys: Harvard

Mentor Manager

2 Mentoring of new employees Overseas vocational training

association

Project Management

3 Buddy System Live projects at parent organization,

Japan

4 Behavioural, Functional and Safety

training

Higher education scheme

5 Leadership training initiatives Harvard Advanced Management

Program

6 Global Program for Management

Development,

Development Centres

7 Development Centres Capstone Business Simulation

8 360 Degree Transcendental Meditation

9 Emerging leaders program Leadership interactions: Leaders from

various domains like management,

academics, sports, aeronautics &

space and cinematography speak with

employees so as to receive insights

into their leadership perspective

10 Fireside Chats ICICI Bank Sales Academy in

partnership with the Institute of

Technology Management (ITM),

Raipur and Institute of Finance,

Banking and Insurance (IFBI).

11 Shadow Boards Infosys offers a Masters degree with

Coventry University, UK.

12 Early Leaders Program Infosys: Four Disciplines from

Franklin Covey Institute

13 Creating and increasing

effectiveness of the value chain

Tech Mahindra: Executive Post

Graduate Diploma in Telecom

Management in collaboration with

Symbiosis Institute of Telecom

Management (SITM).

14 Quality

15 Benchmarking

16 Process Training

17 Best practice sharing

18 Peer to peer learning

Organizations with In – House Training Institutes:

It has been found that the Oil, Gas and Energy transmission sectors have established their

own training institutes to provide training and development to their employees.


Table 4.5.11: Training Institutes set up by Firms in Oil, Gas and Energy Transmission

Sector

S No Firm Name Institute and Purpose

1. Oil India The Management Training and Development Centre and the Oil

Training Institute – Operational Requirements.

Advanced functional courses in Upstream Exploration and

Production technologies and practices, Computer science,

Basic/advanced management courses in General Management,

Finance, Materials Management, Industrial Relations, and

General Administration.

Statutory training on Mines Regulation, Safety, First-Aid,

Explosive Handling courses and Fire-fighting courses.

2 Indian Oil Indian Oil Institute of Petroleum Management (IIPM), IndianOil

Management Centre for Learning, Mumbai, Indian Oil

Management Academy, Haldia - World Class Training Institutes.

Exposure on work culture, organizational structure, corporate

vision and ethics.

3 Bharat Petroleum

Corporation of India Ltd. Bharat Petroleum Learning Centre (BPLC)

Training & Development

―Business Incubator to the organization‖

4 PowerGrid Corporation of

India Ltd.

POWERGRID Academy of Leadership (PAL) - Being set up.

MoUs have been signed with Foundation of Innovation and

Technology Transfer of IIT, Delhi (FITT, IIT Delhi) for

conducting certification programmes for operation &

maintenance of transmission system and telecom.

6. Status of employee grievance redressal mechanisms as a social responsibility.

61.9% of the firms have reported the presence of a grievance mechanism for employees,

while the remaining firms have not provided any information about the presence or lack of it.

E.g. Power Grid Corporation of India – Grievance redressal policy disclosed in the

Sustainability Report.

7. Status of right to freedom of association in the sectors under study.

There are 18 firms which have disclosed information regarding collective bargaining and

employee associations in various reports. No information was found for four firms out of 21

under study.

Table 4.5.12: Practices related to Collective Bargaining and Freedom of Association and

Percent of workmen covered – Organization level analysis.

S No. Sector Firm

Name

Practice – Collective

bargaining/Freedom of Association

Percent Workmen

covered

1 Automotive Maruti

Suzuki

Major policy changes are discussed

with Union reps and opinions

incorporated after examining

feasibility.

Minimum notice period is followed.

NA

2 Automotive TATA

Motors

Employee associations are

recognized by the Management at

90% of

operative cadre.


S No. Sector Firm

Name



Percent Workmen

covered

Jamshedpur, Pune, Lucknow, and

Pantnagar.

Mngt conducts long term wage

settlement with Unions.

46% of

Permanent

employees


&

Mahindra

Employees can choose Unions of

choice under IDA 1947

3 weeks notice is required for

operational changes.

Kandilvi Plant: 1 Union under 1

affiliation.

Over all M&M Group has recognized

12 Unions for collective bargaining.

56% of total

unionized

permanent

workforce

/Total

permanent

employees.

5 Automotive Bajaj Auto Information is not available on the

number of Unions available.

63.8% of

employees are

unionised.

Automotive Hero

MotoCorp

2 Unions recognized.

1. Hero MotoCorp Workers Union,

Gurgaon

2. Hero MotoCorp Workers Union,

Dharuhera

18.4%

31.3%

6 Banking SBI Two recognized employee associations –

1. All India State Bank of India Officer's

Federation,

2. State Bank of India Staff Federation.

Most staff and

officers are

members of

Federations

7 Banking Canara Two employee associations -

1. Officer Employees

2. Workmen Employees.

78.85% of

permanent

employees are

members of

Officer's

Association.

73.89% are

members of

Workmen

Union.

8 Banking PNB PNB has not recognized the following

two Unions

All India PNB Employee Federation.

All India PNB Officers Association

76% of PNB

employees

9 Banking HDFC One recognized - part of the erstwhile

Lord Krishna Bank Trust

0.73% of

employees

10 Banking ICICI Zero associations recognized, and

percent employees members of

associations is not tracked

11 Banking AXIS There are no employee unions

12 Computer

Software

Infosys ―De-minimus number of employees is

covered under collective bargaining.‖

Internationally - 7 countries where

employees are covered under

collective bargaining agreements.

13 Computer

Software TCS 0.06% of

employees

15 Computer

Software Oracle Not applicable

19 Oil, Gas,

Energy

IOCL There are 23 recognized unions in the

Corporation representing workmen.

Indian Oil Officers‘ Association


S No. Sector Firm

Name



Percent Workmen

covered

(IOOA) represents the executives.

20 Oil, Gas,

Energy

BPCL Most of non-

management

employees

8. Status of disclosure on prohibition of child labour, forced and involuntary labour.

Table 4.5.13: Disclosure on prohibition of child labour, forced and involuntary labour

S No. Parameter % Firms Disclosing Parameter

Prohibited

1 Child Labour 52% (11)

2 Forced Labour 43% (9)

3 Involuntary Labour 38% (8)


4.5.4 Principle 4: Businesses should respect the interests of, and be responsive towards

all stakeholders, especially those who are disadvantaged, vulnerable and marginalized.

The study has highlighted which stakeholders are relevant each Sector and the modes of

engagement by the firms with the stakeholders.

Table 4.5.14 Stakeholder Relevance and Engagement Matrix S No. Stakeholder Industry for which

relevant

Engagement Mode

1 Shareholders and

Investors

All Press Release, E Mail advisories

Investor Conferences

Meeting and conference calls

Annual General Meeting

Analyst and Investor calls

Investor relations cell

Investor Grievance mechanism

Reports – Quarterly, Annual, Sustainability

2 Customers All Relationship meetings and visits, Focus Group

discussions, Seminars and Workshops

Sponsored events

Surveys

Newsletters

Brochures

Gauge customer perception of brand

Complaints redressal forum

Collection of specific product feedback before launch

Sports events, e.g. Rallies

Inquiry center

Social media

Co - Creation - engagement platform to facilitate co-

creation of insights, solutions and ideas

Observation of Customer Days

3 Employees All Townhalls, Project and Operation reviews, Strategy

Forums

Associations and Forums

Focus Group discussions, One on one discussions,

Skip level meetings, Stay Interviews

Employee Satisfaction surveys, Inclusivity surveys

Q12 tool

Horizontal communication

Improvement Displays, Quality Circles

HR Policies, Interaction and Forums

Intranet, Newsletters, TV Channels

Assessment Centers, Digitized career hubs enabling

recording of aspirations

Training Programs

Employee recognition programs

Grievance mechanism

Sports and other tournaments, Family Meets

4 Community All Field Visits and Meetings

Need Assessment

Involvement in project planning

Seminars

Social Media

Community Portals

Business Correspondence model in Banking to reach


S No. Stakeholder Industry for which

relevant

Engagement Mode

out to the community

Grievance handling mechanism

Skills training

Factory Visits (Automotive)

Road Safety training (Automotive)

5 Associations Banking, Computer

Software

Membership in global associations

Lobbying

Conferences and working groups

Meetings

6 Government All RFI/RFP

Consultative sessions

MOU

Partner with Government on CSR projects to improve

livelihood

Advocacy of future regulations

Directors and Senior Management participate in

various committees

Membership in global associations

Release of Reports

7 Suppliers All Annual Supplier meet

Supplier's club to discuss critical issues with top

management

Quality Month

Value Analysis and Value engineering month

Review action in HR/IR issues

Green Procurement roadmaps

Supplier Clusters

Satisfaction surveys

Safety workshops

Key partner meets

8 Dealers Automotive, Oil Dealer meets

Dealer management systems

Dealer scorecards

Guidance on business and financial matters

Developing systems to help dealers continuously

enhance capabilities and train employees

Roadshows and Presentations

9 Media Computer Software,

OIL

Press Conferences

Release of Reports

10 Small and

Marginal Farmers,

Artisans, Tiny

Sector, Micro –

units, Under –

privileged,

Unbanked

Banking Agricultural Lectures

Literacy and health camps

Skills development


4.5.5 Principle 5: Businesses should respect and promote human rights.

Human rights have an important bearing on corporate social responsibility.

Out of 21 firms, the two firms, TATA Motors, and Infosys have demonstrated a strong

record on Human Rights through a distinct policy. Infosys is a signatory to the UN Global

Compact

Two other firms in the Oil and Gas sector, ONGC and Indian Oil Corporation of India

Ltd. have close linkages in being Founder Member of United Nations Global Compact in

India, and Global Compact Society (India), respectively.

SBI has announced a zero tolerance for human rights violations.

Table 4.5.15 Human Rights Initiatives of Firms under study

S No. Sector Firm

Name

Practice – Human Rights

1 Automotive Maruti

Suzuki

Employee training

Non discrimination

Freedom of association and collective bargaining

Prohibition of Child labour

Indigenous rights

2 Automotive TATA

Motors

Policy on Human Rights

TCOC - Principle of Human Rights is applicable to

suppliers, vendors, contractors and other business partners.


&

Mahindra

Business Responsibility policy covers Human Rights

5 Automotive Bajaj Auto Compliance with laws of land

Legal compliance report placed before board – quarterly

BAL pledged to fight HIV discrimination and stigma of

global business coalition on HIV and AIDS, Tuberculosis

and Malaria

6 Automotive Hero

MotoCorp

Code of Conduct which details relevant principles

concerning human rights

In the process of incorporating human rights issues within

the supply chain.

7 Banking SBI Zero tolerance for Human Rights violations

Prohibits Child, forced and involuntary labour

Independent complaint committees at local, regional and

corporate offices

Does not discriminate on basis of caste, creed, gender, or

religion

Healthy work - life balance for employees

Guidelines - Harassment of women employees

Transparency in complaints - Website

8 Banking Canara ―The Bank is aware of the human rights content of

the Constitution of India and respects the freedom of

associations and the right to collective bargaining‖.

No discrimination is made amongst employees basis

nationality, religion, gender, age, disabilities, social

and economic status

Prevention of Sexual harassment at workplace

Employee Grievance Policy

Right to Information Act

Engaging Contractors for various works.

9 Banking PNB Whilst there is no specific Human Rights policy, aspects

are covered under Human Resources


S No. Sector Firm

Name


10 Banking HDFC Code of conduct has a Policy on Human Rights which

conforms to the United Nations Universal Declaration of

Human Rights

HDFC Bank follows a non-discrimination policy with

regards to employment and has employees with varied

degrees of disabilities in certain functions of the bank.

11 Banking ICICI Incorporated in Code of Business Conduct and Ethics

The Code also emphasizes on prohibition of harassment and

intimidation and safety at the workplace.

12 Banking AXIS The Bank and its subsidiaries are expected to manage their

businesses with high ethical standards and respect for

human rights.

12 Computer

Software

Infosys Signatory to UN Global Compact and hence support the

Universal Declaration of Human Rights

Active member of India CEO Forum on Business and

Human Rights

Participated in 2 day workshop of UNHRC and UNGC on

implementing Human Rights framework at the workplace.

Human Rights declaration - a broad framework for treating

employees fairly.

MSA with all vendors requires them to follow Labour and

Human Rights laws of the countries in which they operate.

Anti - Sexual Harassment Initiative (ASHI)

PACT - Process Awareness for Contract workers to

sensitize them on internal processes for upholding Human

Rights, covering 6000 workers.

Infosys Gays, Lesbians and You (IGLU) set up in 2012.

13 Computer

Software TCS Embedded in the Tata Code of Conduct.

Due diligence before vendor empanelment includes

screening of performance on labour laws and Human rights.

14 Computer

Software Tech

Mahindra

No information available

15 Computer

Software Oracle Expressedly prohibits employing child labour.

Equal opportunity.

Prohibits any form of harassment.

16 Computer

Software

KP IT

Cummins

No information available

17 Oil, Gas,

Energy

ONGC Founder Member of United Nations Global Compact in

India

Recognize employee rights, and provide forums, support

groups and policies to address their concerns

ONGC signs an Integrity pact with its vendors, committing

to ethical practices in their operations

Fair wage Initiative - to ensure workers engaged with

contractors get more than minimum wages, along with

compliance to social security laws

Employee training includes Human Rights

Through CSR, it supports schooling of children, and hence

prevents child labour

18 Oil, Gas,

Energy

Oil India

Limited

No Information available

19 Oil, Gas,

Energy

IOCL Indian Oil is one of the founder members of the Global

Compact Society (India).

Prohibit any distinction in the enjoyment of human rights on

grounds such as race, colour, sex, language, religion,

political or other opinion, national or social origin, property,

birth or other status.


S No. Sector Firm

Name


Ensure that the entire supply chain, i.e. vendors, sub-

vendors, transporters, contractors, business associates,

dealers, distributors, etc. uphold human rights and no

discriminatory practice is followed in any form.

Gender Sensitivity training.

20 Oil, Gas,

Energy

BPCL No Information available

21 Oil, Gas,

Energy

Power Grid

Corporatio

n of India

Ltd.

Training on Human Rights issues to sensitize people

towards women, the differently-abled and the socially

weaker sections of the society are imparted to employees.

No information is available regarding the following operational points:

Whether Human Rights form a part of Risk Assessment exercise undertaken by the

organization?

How is the impact of Human rights issues on Operations assessed by the firm?

How are human rights issues managed by the organization?

Except for one organization, the remaining organizations have not disclosed how

Human rights of stakeholders are identified, which authority within the firm addresses

these issues and whether there have been any charges of Human rights infringement

against the firm.


4.5.6 Principle 6: Business should respect, protect, and make efforts to restore the

environment.

1. Sector focus on Environmental Practices – Evidence from Automotive, Oil, Gas

and Energy Transmission, Banking and Computer Software Industry.

4.5 Graph IV: Broad Environmental issues of concern to the sectors

0%

50%

100%

Add

ress

ing

glob

al w

arm

ing

Bio

dive

rsit

y co

nser

vati

on

Prev

enti

on o

f Po

lluti

on

Ren

ewab

le e

nerg

y us

ed

Dec

reas

e in

gen

erat

ion

of h

azar

dous

was

te Dis

posa

l of

was

te

Perc

enta

ge

Focus Area

Environment Focus Areas - Sector View

Automotive Banking Computer Software Oil, Gas and Energy Transmission

Note: For this study, Tech Mahindra has not been considered due to lack of information. Hence the population

for Computer Software stands reduced to 4 Firms for this section only.

Findings:

Among the six broad focus areas, two – Global Warming and Pollution prevention

stand out as being of concern to all the sectors under study.

Oil, Gas and Energy Transmission Sector: Bio – diversity conservation is the most

important environmental area (80% of the Firms)

Automotive Sector: renewable energy used is the most important among these areas

(100% of the cases).

Maruti Suzuki has underlined the most important environmental concerns as:

Green manufacturing, Green service workshop, Green supply chain, Green IT,

Material use and weight reduction, Energy and waste conservation.

The ideal of Green supply chain has been echoed by other firms also.


Banking Sector: Addressing global warming is of high importance amongst all other

issues.

Computer Software Industry: Addressing global warming is of higher relative

importance than other areas.

2. Detailed areas of Environmental Initiatives –

Table 4.5.16: Top 5 Environmental Initiatives by Sector

S No. Automotive Oil, Gas and Energy

Transmission

Banking Computer Software

1 Water Management

Projects (5/5)

Production Efficiencies

(4/5)

Energy Conservation

(5/6)

Energy Conservation

(3/5

2 Tree Plantation (4/5)

Renewable Energy

(4/5)

Paper Consumption

(3/6)

Production

Efficiencies (2/5)

3 Renewable Energy (4/5)

Reduction of carbon

emissions (4/5)

Green Channel

Banking – Paperless

Banking (3/6)

Awareness on

Environment (1/5)

4 Reduction of carbon

emissions (4/5)

Energy Conservation

(3/5)

Renewable Energy

(3/6)

Water Consumption

(1/5)

5 Sustainable Supply

Chain (3/5)

Water Consumption

(3/5)

Waste Disposal (3/6) Reduction of carbon

emissions (1/5)

6 Energy Conservation

(3/5)

Renewable energy

(1/5)

Note: Figures in parentheses shows number of firms having specific initiatives in this area/Total Number of

firms for whom data is available.

3. Some of the specifics of the initiatives are as follows:

Renewable Energy

Tata Motors: CDM Project registered with UNFCCC.

2,72,112 CERs issued for 20.58 MW Wind Energy project

Hero MotoCorp: Installation of solar power plant of 100 KW; 2. Electricity

consumption

SBI: Largest deployer of Solar ATMs in the world, saving more than 2000 tonnes of

CO2 pa. Installed wind mills of 15 MW energy in 3 states in India.

Canara Bank: Solar powered bio-metric ATMs being used for rural areas.

HDFC: Pilot of 20 solar ATMs in India in progress, with a pilot completed in Bihar.


Axis Bank: Solar-based UPS for ten ATMs under its Independent ATM Deployment

(IAD) model

Oil India Ltd: Established 13.6 MW of wind power project in Rajasthan

Energy Conservation

Mahindra and Mahindra:

o Patented new forging process which uses less energy

o Green data center and Enterprise Carbon and Energy Management Services

(ECEM)

o Energy conservation audits

Hero Motocorp: Avoiding idle running - power saving circuits

Infosys:

o Smart Building Energy Management Solutions

o Green Buildings

o Retrofits

o Energy efficient IT Infrastructure

o Desktop power management

Waste Management

Maruti Suzuki: its Manesar plant has achieved zero water discharge. It has also

reduced per car water usage.

HDFC: Tied up with vendors for waste recycling and disposal of IT waste in a

controlled manner.

Oil India Ltd: Municipal solid waste disposal and treatment plant has been set up for

the town of Duliajan town

ONGC: Hazardous waste disposal

ONGC:

Hazardous

waste being

disposed off

through Bio –

remediation

process


ONGC has also adopted cutting edge technology in the form of vapour recovery units,

engine upgrades, closed loop drilling fluid systems, and recycling, reuse of treated

produced water. This is promoted by Global Methane Initiative.

Reduction of Carbon Emissions

Automotive sectors: Developing fuel efficient vehicles

Maruti Suzuki: Most of vehicle transportation is through Rail network, rather than

roadways.

State Bank of India: Incentivize customers with concessionary rates of interest for

projects reducing GHG emissions by using more efficient technology.

HDFC Bank:

o As part of the Code of Conduct and Ethics Manual, employees are encouraged

to ―prevent any wasteful use of natural resources and to be committed to

improving the environment, particularly with regard to the emission of

greenhouse gases, and to offset the effect of climate change in all spheres of

activities.‖

o HDFC Bank is one of the 16 companies in India to make it to Carbon

Disclosure Leadership Index (CDLI) in 2012 with a score of 71. It has an

estimated footprint for FY 2012-13 of 299,150 MT CO2-e according to the

Business Responsibility Report.

ONGC: The firm has registered 6 CDM (Clean Development Mechanism) projects

and is further developing 6 more projects. These opportunities have arisen because of

climate change regulations, e.g. Kyoto Protocol in Non Annex 1 Countries.

OIL: OIL is currently mapping its carbon footprint for all operational areas.

Indian Oil:

o Five Clean Development Mechanism (CDM) projects of Refinery Units have

been registered at UNFCC, with cumulative CER of 59, 964, and seven

projects under CDM have also been taken up in Refinery Units

o Three major events have been made Carbon neutral - Management Meet,

Dealer's conference and Cricket tournament;

4. Other aspects which were evaluated and do not comprise Top 5 areas are as follows:

Production of eco – friendly fuels

Converting oil fuel vehicles to LPG/CNG variants

Disaster relief

Bio – diversity management like soil testing

Extending loans at concessionary rates for projects

Clean Development mechanism project

5. None of the organizations under study for whom data was available have reported any

show cause or legal notice from the Pollution Control Board.


4.5.7 Principle 7: Businesses, when engaged in influencing public and regulatory policy,

should do so in a responsible manner.

1. In this sphere, HDFC is the only firm which has affirmed that they do not participate in any

lobbying or policy advocacy.

2. No information could be found for Tech Mahindra, KPIT Cummins, Oil India and Power

Grid Corporation of India Ltd.

3. All the remaining organizations have disclosed the names of Industry Associations of

whom they are members.


4.5.8 Principle 8: Businesses should support inclusive growth and equitable

development.

1. Inclusive growth and equitable distribution – Conceptual note

The ‗inclusive growth‘ as a strategy of economic development received attention owing to a

rising concern that the benefits of economic growth have not been equitably shared. Growth

is inclusive when it creates economic opportunities along with ensuring equal access to

opportunities. Apart from addressing the issue of inequality, the inclusive growth may also

make the poverty reduction efforts more effective by explicitly creating productive economic

opportunities for the poor and vulnerable sections of the society. The inclusive growth by

encompassing the hitherto excluded population can bring in several other benefits as well to

the economy. The concept ―Inclusion‖ should be seen as a process of including the excluded

as agents whose participation is essential in the very design of the development process, and

not simply as welfare targets of development programmes (Planning Commission, 2007).

K. C. Chakrabarty, Deputy Governor of RBI in this speech clarifies the meaning of inclusive

growth.

According to K C Chakrabarty, Deputy Governor of the RBI, Inclusive growth as the literal

meaning of the two words refers to both the pace and the pattern of the economic growth. The

literature on the subject draws fine distinction between direct income redistribution or shared

growth and inclusive growth. The inclusive growth approach takes a longer term perspective

as the focus is on productive employment rather than on direct income redistribution, as a

means of increasing incomes for excluded groups. Inclusive growth is, therefore, supposed to

be inherently sustainable as distinct from income distribution schemes which can in the short

run reduce the disparities, between the poorest and the rest, which may have arisen on

account of policies intended to jumpstart growth. While income distribution schemes can

allow people, to benefit from economic growth in the short run, inclusive growth allows

people to ―contribute to and benefit from economic growth‖.

2. Mapping Social sector contributions via CSR and inclusive growth concept:

All initiatives reported under Sustainable products as leading to societal well – being need to

be stated here. On the other hand, donations of products and materials should not form a part

of inclusive growth. DPE Guidelines on CSR and Sustainability also reiterate this view.

―Mere contributions to philanthropic, charitable or other organizations would not be considered a

valid CSR activity. The only exception being contributions made for natural calamities / disasters

and for meeting the emergency needs of employees of sick and loss making CPSEs in distress,

not provided for under existing pay revision / wage settlement arrangements as explained in para

1.5.5.‖ Additionally, Rehabilitation efforts, Infrastructure development, Livelihood

provisioning, Empowerment, Creating value for society in the form of computer literacy and

education as well as improving health are potential CSR areas.

3. Reviews of focus areas for social contribution by various firms have helped create

visibility on the areas where firms in the four sectors under study are contributing.

The top three areas for firms across sectors to contribute in this arena are:

Education, Healthcare and Rural Development


4.5 Graph V: Social Contribution – Focus Areas and Percentage Firms

0% 40% 80% 120%

Education Healthcare

Rural developmentVillage development

Agricultural DevelopmentLivelihood

Women EmpowermentFinancial inclusion

Economic support to finance/ co-finance …Art, Culture and Sports

Inclusion of minorities at workplaceDonation of materials

Participation in government schemesNon - farm Skills training

Donation of used equipmentDrinking Water

Activities to raise awarenessEnabling Disabled

Donation of productsFarm skills training

Payroll givingAffirmative ActionWildlife Protection

Social Contribution - Focus Areas and Percentage Firms

4. Sector focus areas - Practices related to Social Contribution – Evidence from

Automotive, Oil, Gas and Energy Transmission, Banking and Computer Software

Industry.

Table 4.5.17: Top 5 Areas of social contribution


Transmission


1 Education (5/5)

Healthcare (5/5) Financial Inclusion

(6/6)

Education (5/5)

2 Women Empowerment

(3/5)

Arts, Culture,

Sports (5/5)

Rural Development

(5/6)

Healthcare (2/5)

3 Healthcare (3/5)

Education (4/5)

Healthcare (5/6) Village Development

(2/5)

4 Agricultural

Development (3/5)

Rural Development

(4/5)

Economic support to

finance /co-finance

projects (5/6)

Enabling Disabled

(1/5)

5 Rural Development

(3/5)

Inclusion of

Minorities at

Workplace (4/5)

Livelihood (4/6) Livelihood (1/5)



Transmission


6 Education (4/6) Women

Empowerment (1/5)

Note: Figures in parentheses shows number of firms having specific initiatives in this area/Total Number of

firms for whom data is available.

5. Specific actions under various heads.

Education

Within Education, it is observed that the 62% of the firms in the sectors under study are

involved in providing vocational training, and 38% of the firms have also disclosed enabling

trainees to be gainfully placed in employment. Further it is seen that 38% of the firms are

also involved in strengthening school infrastructure, as well as in providing merit

scholarships to deserving students.

4.5 Graph VI: CSR Focus Areas - Education

38%

33%

24%

10%

38%

24%

29%10%

10%5%10%

38%

29%

5%10%

5%5%

62%

CSR Focus Areas - Education

Merit scholarship schemes

Financial assistance to schools

Education Infrastructure

ITI Upgradation

Educational Infrastructure

Participation in mid day meal scheme

Innovative teaching methods and tools

Monetary Incentives to complete education

Incentives for Girl Children

Special Children

Educating SC/ST Students

Placement

Teacher Skills & Awards

Rewards and Recognition for Science

Assistance to students through donations

Sponsorship for Chairs in higher Education

Adult Literacy Programme

Vocational Training


Further it is seen that out of 13 firms who are engaged in providing Vocational Training,

54% deliver through NGOs, whilst 46% each, through either self/ company Foundation or

Trust, and through other Institutions.

4.5 Graph VII: Mode of Engagement for vocational education

46%

54%

46%

15%

Mode of engagement for vocational education

Vocational training through self or Company Foundation

Vocational training through NGOs

Vocational training through Other institutions

PPP Model for ITI Upgradation

Healthcare

52% of the firms are engaged in providing health facilities through mobility solutions like

mobile medical vans, Life line Express by Mahindra, and holding health camps. 52% firms

also participate in creating awareness on health related problems. Further 43% of the firms

are engaged in provision of health facilities through Hospitals – owned/managed by Trusts or

Foundations.

4.5 Graph VIII: CSR Focus Areas - Healthcare

52%

5%

10%

5%5%

19%

5%5%

52%

43%

19%

10%10%

10%10%

CSR Focus Areas - HealthcareAwareness Programs

Capacity Enhancement of medical staffTreatment of malnourished children

Survey of school children for Leprosy

Old Age home

Preventive health (Water, Toilets)

ICDS

Distribution of calcium supplements

Health Facility - Lifeline express, Mobile vans, CampsHealth Facility - Hospitals

Donation of medical Equipment

Financial Donations

Disabled support

Health Insurance to under -privileged


Rural Development

The salient activities undertaken in the sphere of rural development by Firms in all sectors are

related to provision of Health services, water (Water harvesting structures, laying down of

water pipelines, construction of tanks, provision of clean drinking water, etc.) and products

designed for the rural sector (Farm equipments and tractors in Automotive sector, to micro

– recurring deposits in the Banking sector).

4.5 Graph IX: CSR Focus Areas – Rural Development

5%5%5%

19%

29%

14%5%10%5%5%

5%10%

24%

10%

14%

5%10%

CSR - Rural Development Activities

Common LPG kitchens

Electrification

Grants - RGGLV Yojana

Water

Health

Products for Rural Sector

Distribution of food grains

Sanitation

Bio Gas Plants

Social Forestry

Waste land reclamation

Fellowships - Solving rural problems

Training for Self Employment

Linkage with Markets

Education

Mid day meal scheme

Employment

Village Development

CSR specific actions related to village development lie in the ambit of building infrastructure,

economic empowerment of rural community through self supporting schemes for women and

holistic village adoption to address development issues comprehensively.

4.5 Graph X: CSR Focus Areas – Village Adoption

19%

33%

10%5%

14%

24%

10%

CSR Focus Areas - Village Adoption

Adoption of villages

Building infrastructure

Physical transportation and power connectivity

Electronic connectivity – communication

through telecom, internet, IT

Knowledge through institutions and training institutions

Economic empowerment of rural community through self supporting scheme for women

Building roads, playgrounds and outreach programmes


Agricultural Development

The key CSR activities undertaken in the sphere of Agricultural development are

assistance in the form of technical guidance, and training through Agricultural

Universities, as well as provision of skills and assistance related to supplementary

activities like Bee keeping, dairy etc.

4.5 Graph XI: CSR Focus Areas – Agricultural Development

10%

14%

29%

5%5%5%5%5%

14%

5%

5%

5%

5%

10%5%

CSR - Agricultural Development

Training through Agricultural universitiesDistribution of seeds and fertilizersTechnical guidance

Distribution on saplings

Tree plantations

New Crops and Vegetables

Micro -irrigation

Productivity

Supplementary Activities

Mechanisation

Market Linkage

Awards

SHG for income generation

Animal Health Camps

Loans

Financial Inclusion

Initiatives in the area of Financial inclusion

Canara Bank: The Bank has run a campaign involving 1624 villages covering rural

activities e.g. increasing access to banking services through opening new branches,

increasing coverage under Business Facilitators, mobilizing no-frill accounts,

providing credit under KCCs, credit linking SHGs, providing micro-insurance,

Aadhar enrollment, forming farmers’ clubs, deploying Gramin Vikas Vahini for

enhancing financial literacy and credit counseling in the rural areas.

Punjab National Bank: The Government of India allocated 4588 districts to PNB

under the Swabhiman Project. PNB has used the Business correspondent model and

technology service providers. It has 2232 rural branches and more than 30,000


villages in scope. 90 Lac "Basic Savings Bank Deposit Accounts" were opened for

excluded people. Additionally, as per RBI Guidelines, PNB is the lead bank in 57

districts and has set up FLCCCs in each district. 100 Financial literacy centers

trained 2,64,371 individuals during FY-13.

6. Impact Assessment

6 Firms have disclosed that social impacts are assessed for initiatives run by them.


4.5.9 Principle 9: Businesses should engage with and provide value to their customers

and consumers in a responsible manner.

1. Declaration of customer complaints pending as at end of year: 12 firms have

declared the percentage of customer complaints pending at the end of the year.

2. Charges against the firm for unfair trade practices and irresponsible advertising

Three firms have disclosed the charges related to this area.

Mahindra and Mahindra: Two matters related to alleged unfair trade practices and one

related to alleged anti - competitive activity by Dealer.

Bajaj Auto: In last five years, there have been 6 instances of customer/viewer

complaints against TV commercials made by Bajaj Auto.

ICICI Bank: ―In the ordinary course of banking business, several customers and

borrowers have disputes with the Bank which could result in their filing a civil suit,

criminal complaint or a consumer complaint alleging deficiency of services. The Bank

always strives to have a cordial relationship with its customers / borrowers and

attempts to have an amicable settlement of the dispute but in some cases needs to

pursue legal resolution of the same‖. Source - BR Report

3. Surveys conducted for Customer Satisfaction

Automotive Sector: JD Power Survey (Passenger Vehicles); TNS Survey

(Commercial vehicles); MQRS Survey (Load Carriers)

Banking Sector: Varies from surveys conducted by the Banks at the branch

level, or outsourced to outside agencies like National Institute of Bank

Management and Management Development Institute, Gurgaon.

Computer Software: These range from half yearly internal self assessment at

an account level, to annual C- SAT surveys involving the client.

Oil, Gas and Energy Transmission Sector: All India ‗Customer Satisfaction

Survey‘ on an annual basis covering all major aspects of products and

services.

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