Corporate Social Responsibility at Arvind Limited

Understanding and Implementing Social Initiatives

Oakbrook Business School

19 September 2014

Structure of presentation

• About Arvind Limited

• Establishing Common Understanding of CSR

• CSR Act Facts

• Organisational Base for Arvind Ltd’s CSR

• Our Strategic Foundations

• Educational Initiatives - Some Facts.

• Educational Concerns and For Whom?

• Educational Strategy – Arvind’s Experience.

About Arvind Limited

• Flagship Company of the Lalbhai Group.

• India's $1-billion textile and apparel major.

• World’s Largest Denim Producer.

• Producer of superfine Shirting, Bottom weights, woven and Knitted fabric & Garmenting operations.

• Business Interest includes Textile and Garments, Retail, Brands, Technical Textiles, Infrastructure and Agri Business.

Our View of CSR

• Our view of ‘CSR’ is based on our conviction that corporations and society are interdependent. Social issues affect corporations and the corporations’ actions in turn affect the society.

• Social Responsibility thus gets integrated with the corporation’s total functioning—results in what Professor Porter calls ‘corporate social integration’.

• Translating ‘CSR’ into ‘corporate social integration’ would result in corporations treating ‘CSR’ as an integral part of its strategy and stop treating it as an act of philanthropy.

CSR – Companies Act Facts

• Companies Act Facts – the letter and the spirit • The CSR activities shall be undertaken, as per its CSR Policy, as

projects or programs or activities, as specified in Schedule VII of the Act, excluding activities undertaken in pursuance of its normal course of business.

• The CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities.

Arvind Ltd’s CSR - Arvind Foundation

Urban CSR Rural CSR

SHARDA Trust

Chandraprasad Desai

Memorial Foundation

(CDMF)

CKNL Trust

NLRDF

Part of Agri

Initiatives

Strategic Foundation of the Trust

• SHARDA stands for Strategic Help Alliance for Relief to Distressed Areas Trust

• Registered public charitable trust, established in 1995, in the organisational base of Arvind’s CSR programs

• Broad objective is to improve the quality of life of the urban poor in India

• Access to basic physical infrastructure

• Availability of affordable and quality Primary healthcare

• Secondary healthcare

• Quality primary, secondary and HSC education,

• This to lead to development of skills & capabilities for participation in economic activities

CSR Initiatives at Arvind are led through SHARDA Trust

Background of SHARDA Trust

Gyanda – Fountain of knowledge The Educational Initiative

Some Facts - Enrolment, Retention and Dropout

Class Enrolment in

Lacks Retention as compared to

class 1 Dropout as compared to

class 1

I 305

II 278 91% 9%

III 269 88% 12%

IV 257 84% 16%

V 242 79% 21%

VI 219 72% 28%

VII 205 67% 33%

VIII 195 64% 36%

IX 167 55% 45%

X 150 49% 51%

XI 101 33% 67%

XII 92 30% 70%

Total enrolment of youth 15% (2012 data)

Source Source: Statistics of School Education 2010-11. MHRD

Link: http://education.nic.in/stats/SES-School-2010-11-P.pdf

Should

the

Corporate

Sector be

concerned

about it?

Educational Concerns: who drops out?

STRATEGY

IMPLIES

CONCERN

• Completion of education for social groups more vulnerable to dropout

• Vocational Education

• Alarming need to retain and reduce wastage.

• Less number of employable youth

• 70% Dropout till class XII

• Only 15% enrolment in higher education

• Who drops out from the education system, Why?

Can children from Disadvantaged sections complete Education?

S.

No Indicators

Children with

reasonable socio-

economic background

Children with Lower

socio-economic

background

Physical Conditions

1House, Sanitation,

Electricity, Water

House Pucca with

Individual facilities

Kachcha with shared

facilities

2 Space per person 200 sq ft approx. 20 - 30 sq ft approx.

3 Food Reasonably nutritious Mostly unwholesome

Social Conditions

4 Community Educated Uneducated

5 Occupation Job/Business-Organised Unorganised

6 Income Mostly fixed Mostly variable

7 Exposure Reasonable or high Low or no exposure

8 Family situations Reasonably stable Unstable

9 Relatives Better placed Similar to them

10 Social celebrations Infrequent Frequent

Educational

11 Children’s school Mid to high end Mid to Low end

13Parents' Main

Concern Child’s education

Arranging for three

meals

12 Parents' Education Generally Graduates Low or no education

Many Psychological

Variable

V-VII VIII-X XI-XII Graduation I- IV

Vocational training

Vocational training

Higher education

support in placement

8 to 12 Years – Education to Employment Link

Addressing Concerns through Educational Spectrum

SHARDA Trust’s

Model

Innovative Teaching Learning

Method & Materials

Monitoring, Evaluation &

Tracking

Partnership with the local

Government

• Teaching Eng, Comp & Maths

• Teaching Approach based

on students’ strength

• Real life example, Practical

Knowledge • Subject’s Reinforcement

• Teaching By Trust’s Teachers

•Computers in teaching learning

• Teaching days, schedules, curriculum,

tests and evaluation criteria pre defined.

• Tracking Student’s attendance &

performance

• Follow up irregular & weak students

• Interaction with parents.

Supportive Infrastructure

• Upgrading School Infrastructure

• Establish Quality Computer Lab

• Projection facility LCD monitor

• Internet for Faculty & Students

• Ergonomic furniture

•Neat and clean Class rooms

• MoU with Municipal School Board

• MSB allows use of Infrastructure &

provides electricity free of cost

• Provides Teaching Hours

GYANDA - Unique Features

Partnership with local government, e.g. MoUs for use of infrastructure

Innovative teaching methods, e.g. Use

of computers, individual focus

Monitoring & tracking, e.g. attendance, schedules, and performance

Supporting Infrastructure, e.g.

use of projectors, computer labs, neat & clean class rooms

Our Model

2,085

1,122

408

2020P

2014 2008

5x growth

Students Enrolled

Increasing reach every year

Strong focus on ensuring linkage to higher education and employability

SHARDA Students - Class XII (2012-13)

SHARDA Students- Class XI (2012-13)

SHARDA Students- Class X (2012-13)

Arjun Rameshbhai Solanki, A SHARDA Student from Class XI Science stream (2012-13). He

wants to be an Engineer.

Dishita Jayeshbhai Parmar, A SHARDA Student from Class XI Commerce stream (2012-13).

She wants to be a lawyer.

Thank you

Skill Facts • 40% of the current workforce is illiterate and

another 40% is made up of school dropouts.

• Vocationally trained, diploma holders, graduates and above comprise a mere 10 per cent of the overall workforce,

• Those who have completed 12 years of schooling comprise another 10 per cent.

• M V Subbiah, Skill Development: A Bigger Role for the Private Sector Sept 2012

Our Experience • Employing 500 Girls for residential jobs in spinning.

• Large Numbers to be recruited in Garments in near future.

• Offer: Net Salary plus statutory (PF, Gratuity), plus stay, food, transport, opportunity for educational and skill enhancement.

• Think what employee would do after say five years?

• Employ, Upgrade Skills, Facilitate opportunity for future education enhancement & acquiring newer skill.

• Engagement exercises through planned personal and aspirational profile.

• Upgrading present level of education and learning newer skills along with working for making them future ready.

Our Experience • Mobilisation Strategy - Work with Government Departments –

Tribal Development Department, Forest Department, NGOs – Gramin Vikas Trust

• Requirements:

• List of selectable candidates needed before hand for test.

• Selection at Candidate’s door step with Appointment Letter released then and there,

• Parents must accompany candidates before joining.

• A reference needed to know who is coming? From where is she is coming?

• Present Status • 278 girls are staying at Dormitory

• 65 girls (Standard XII) are enrolled with Babasaheb Ambedkar

University for Graduation and professional courses. • Others are being enrolled for open school to clear standard X.

• Women security staff at stay.

• Stay and work place on CCTV network, continuous monitoring.

• Dedicated women Supervisor and Counsellor for a group of women employee.

Program

For Adolescents and Youth

Program in Language & Computer Application

• Short Term Programmes for Building Foundation

• PECA - Programme in “Practical English & Computer Applications”

• To prepare people to work in promising Industries like BPO, ITES,

Retail, Healthcare, Hospitality, Telecom, Banking, Finance etc.

• Programme Motto: Appropriate Knowledge, Relevant Skills, Right Attitude & Values for working in Industry.

• English and Computer - the foundation for entry in Industry. • Demanding - seeks Serious & Hard working participants. • Organises Placements for successful participants.

PECA And Other Programmes

Other

Programs

PECA

Focus Speaking Developing

Comprehension

Teaching Exercises Situational Not Situational, Broad

Topics.

Grammar No Yes, Important Part.

Focus on Reading Low High

Focus on Writing Low / No High

Field Visits No Yes

Project Work No Yes

Computer Skills No Yes

Presentations No Yes

Placement Assurance No Yes

Opportunities in Education for CSR

• Elementary & secondary education- supporting students/supplementary education, training teachers, creating infrastructure, creating teaching material, life skills education

• Vocational education- creating opportunities for skill development

• Higher education- financial support, Academic support, skill development

• Research & development- at all stages of education to enrich the process of education and make it effective, supporting exchange programmes

Planned increase in Number of Students Academ

ic

Session

V VI VII VIII IX X XI XII

First

year

Second

year

Third

year Total

2006-07

2007-08 122 158 128 408

2008-09 354 154 140 20 668

2009-10 420 287 224 35 19 985

2010-11 403 286 239 37 19 18 1002

2011-12 100 300 248 44 29 13 17 751

2012-13 118 338 276 108 41 29 13 17 940

2013-14 310 250 240 135 90 40 28 13 16 1122

2014-15 360 280 260 160 135 90 40 28 11 16 1380

2015-16 360 280 260 180 145 135 90 40 20 11 16 1537

2016-17 360 280 260 180 160 145 135 90 40 20 11 1681

2017-18 360 280 260 180 160 160 145 130 90 40 20 1825

2018-19 360 280 260 180 160 160 160 145 130 90 40 1965

2019-20 360 280 260 180 160 160 160 160 145 130 90 2085

Note: We believe that about 20% of the students would qualify in the state level tests like Engineering,

Medical and others for technical courses.