CSR INITIATIVES BY CORPORATES

Group Members:Sneha GambhirSonia TakkarSonakshi GogiaVivek shuklaYogesh SharmaUjjwal Jaitley

What is CSR??

Kenneth R. Andrews

• Intelligent & objective concern for the welfare of the society

• Restraining individual & corporate behavior from ultimately destructive activities

• That leads in the direction of positive contributions to human betterment.

CSR is about the organization's obligations to all stakeholders, not just shareholder.

Corporate Social Responsibility

• Assumption:“ What is good for the society must be good for the Business as well”• CSR is closely linked with

the principles of Sustainability

• Focus on Triple Bottomline:

People, Planet & Profit.

Carroll's Model of CSR

Is CSR same as Philanthropy??

• Philanthropy is a sub set of CSR also called “Business Giving” by Carroll.

• Warren Buffet-Individual Philanthropy

• Bill & Melinda Gates Foundation

• Infosys Foundation-Funded by Infosys Technologies

• Azim Premji Foundation-Funded by the Wipro Founder

• Karmayog, established in 2004, is a virtual enterprise that connects citizens, civil society

groups, corporates, academicians, media and the government through the internet.• Karmayog has undertaken a study and rating

of the 1000 largest Indian companies in 2008. The first one being conducted by them in 2007 for the largest 500 companies in India.

Sectors & Companies

Sectors Companies Karmayog CSR Rating

Conglomerate ITC 2/5

Pharmaceutical Aventis Ltd 1/5

Infrastructure & FMCG Tata Steel & Tata Tea 3/5

FMCG Colgate Palmolive India 2/5

Chemical Manufacturing Union Carbide 0/5

• ITC Limited is an Indian Conglomerate with a turnover of $4.75 billion.

• ITC was incorporated on August 24, 1910 under name of ‘Imperial Tobacco Company of India Limited at Radha Bazar Lane Kolkata.

• It was Renamed to “India Tobacco Company”. In 1974.

• IT’s one of India foremost private sector companies with a market approx US &14 billion.

ITC’s initiatives are aimed at(i) improving infrastructure in

Government schools, (ii) providing supplementary education

to support children with school learning and exam preparation

(iii) building community and parental involvement with school education so that more children go to school and finish school

• The empowerment of women has a catalytic effect in rural society,

• strengthening their voice in the community,

• forcing attention on human development issues of child rearing, education, health and gender parity.

ITC has helped to bring over 16,400 hectares of wasteland under social forestry benefiting 19,376 poor households in 480 villages.

CSR BY TATA

TATA TEA- JAGO RE

TATA STEEL- ROAD IN ODISA

TATA STEEL- DONATION OF TOURIST BOATS

JAGO RE CAMPAIGN

• TATA STEEL- ROAD IN ORISSA

• TATA STEEL- DONATION OF TOURIST BOATS

Some other activities like

• Blood donate camp• Eye checking camp• Tree plantations• Healthcare camp• Giving computer to the school• Money donation

CSR Initiatives by COLGATE PALMOLIVE INDIA

Karmayog CSR rating = 2/5

• National Oral Health Program School Dental Health Education Program. over 50 million school children, rural and urban

age 6-12 years. Program with the help audio-visual aids, posters,

charts and demonstration of right brushing techniques.

• Teachers Training Program Training -basics of oral health care -to school teachers part of the Colgate Bright Smiles, Bright Futures

Program. 1,75,000 teachers have been trained

• Reading is fundamental since five years, Colgate in partnership

with Pratham, has set up libraries for the underprivileged children in rural areas of Maharashtra, to inculcate the habit of reading

• Making a Difference Together Colgate in partnership with the NGO,

Navnirmiti, introduced ‘Universalizing Active Mathematics’, to make learning of Math easy. This programme is conducted at Municipal schools in and around Powai.

• Dominic Savio Summer Camp Summer Camp at the Dominic Savio since 1981. attended by students of the school as well as children from the

nearby hutments. Almost 400 children between 6-16 years of age benefit from the

creative workshops

• Smiling Moments

sponsoring the Inter-Mumbai Cricket Tournament for the physically challenged organized by Omkar Krida Mandal, an NGO.

Running For a Good Cause• Colgate’s participation in the Standard Chartered Mumbai

Marathon ,56 participants put on their running shoes to support People living with HIV/AIDS

• Sharing Joys Supporting the Madhu Mehta Foundation, NGO, in Mumbai that hosts a Diwali

Party for the less privileged children of the city of Mumbai,. Filmstars who grace the occasion add to the glitter of the evening.

• Caring Community at Baddi At the plant in Baddi, our employees volunteer their time and effort to support

community initiatives.

• Lending a Helping Hand Volunteers demonstrated their commitment to society by creating a safe and

protective environment for the children of the Government Primary and Secondary School in Jharmajari, HP.

• Building Environmental Awareness Every year, our employees at Baddi invite children from the local schools in

Jharmajari to celebrate the ‘Environment Day’. These children are educated to create and sustain healthy natural outdoor spaces.

• Encourages self-realization and offer rewards to acknowledge the creativity and individuality of employees.• Contributes to the creation of a pleasant environment by minimizing the environmental impact created during production.• Performs social contribution activities to fulfill social responsibilities.• Takes both the opinions of our stakeholders and social impact into consideration when establishing strategies and launching new enterprises.• Evaluates the success of CSR management principles and provide regular updates, both inland and overseas

LG’S CSR PRINCIPLES

LG’ S CSR FRAMEWORK

LG’S CSR MANAGEMENT

LG INITIATIVES TOWARDS CSR

•LG Electronics has hiked its budget for community development activities from Rs 2.5 crore to Rs 3 crore.•LGE has also launched a new initiative with New-Delhi based NGO Prayas, that works for the upliftment of under privileged children•LG will also be tying up with Help age India, an NGO that looks after the aged.•It has a tie-up with another NGO Jan Shikhan Sansthan for generating self-employment opportunities for unemployed in the form of tailoring, knitting etc.•LG’S community development initiatives include a focussed plan for providing health services to under privileged children, animal healthcare and enhancing professional skills of unemployed youth

UNION CARBIDE

THE COMPANY WHICH FAILED IN IT’S (CORPORATE SOCIAL

RESPONSIBILITY)

COMPANY IN BRIEF

• Union Carbide Corporation (Union Carbide) is one of the largest chemical and polymer companies in the united states

• Founded in 1917 and currently employing over 3800 employees• Union carbide entered India under the banner UCIL ( Union carbide India limited)• The UCIL factory was built in 1969 to produce the pesticide carbaryl (trademark

Sevin). A methyl isocyanate (MIC) production plant was added in 1979

Continued..• Union Carbide became infamous for the worst ever industrial disaster that took

place at its plant in Bhopal (India) in 1984• Company was found liable for the disaster but had denied responsibility for the

incident• After being sued by the Government of India, Union Carbide agreed to an out-of-

court settlement of US$470 million in 1989• Several issues over the incident are yet to be settled

******

Why company failed

The company failed in its corporate social responsibility because a gas leakage happened at company's plant , led thousands of death and still have a impact on

people of Bhopal.

Causes of leakage:– Storing MIC in large tanks– Poor maintenance after the plant ceased MIC production at the end of 1984– Failure of several safety systems (due to poor maintenance)– Safety systems being switched off to save money—including the MIC tank

refrigeration system which could have mitigated the disaster severity

– Plant location close to a densely populated area

Effect of leakage became a disaster

Thousands of people

died

Factory immediately shut down

Although it has been 25 years since the disaster, approximately 10-30 people continue to die every month in Bhopal from toxic exposure and another 150,000 people continue to suffer long term health consequences from the disaster

Impact on company

• Company’s name became a shame• Lost its market and goodwill • Had incurred a huge amount to settle the case ( $470 million )• Later it was taken over by MacLeod Russell (India) Limited of Calcutta, and UCIL

was renamed Eveready Industries India Limited (Eveready Industries).

BEING GOOD IS GOOD FOR BUSINESS.

• It improves the firm’s image.• It is necessary to in order to avoid excessive regulations.• It can increase employee motivation.• It helps to correct social problems caused by the business.• It aids the attraction and retention of staff.• It attracts green and ethical investment.• It attracts ethically conscious customers.• It can lead to a reduction in costs through re-cycling.• It differentiates the company from its competitor and can be a

source of competitive advantage.• It can lead to increased profitability in the long run. 

Everything has a downside

• Competing Claims• Competing Disadvantage• Fairness• Legitimacy• Burden on Consumers• Insiders bears the cost for being associated

with a company that is socially responsible.

THANK YOU FOR YOUR TIME!