1.

INTRODUCTION: CORPORATE SOCIAL RESPONSIBILTY

Corporate Social Responsibility (CSR) is generally understood to be the way a company balances the economic, environmental and social aspects of its operation, addressing the expectations of its stakeholders. A companys stakeholders are all those who are influenced by, or can influence, a companys decisions and actions. These can include (but are not limited to): employees, customers, suppliers, community organisation, subsidiaries and affiliates, joint venture partners, local neighborhood, investors, and shareholders (or a sole owner).

Corporate Social Responsibility (CSR) is becoming an increasingly significant category by which a companys reputation is evaluated. A variety of social and environmental iss ues across a broad spectrum of industries have recently been covered in the media-all of which directly affect a companys reputation and all of which can be considered part of the larger CSR equation. Whether CSR is considered merely the latest fad in business management or whether it is laying the foundation for a newly advanced way of doing business, a brief overview of recent business news and corporate communication positions itself in the market place.

In the new global economy, companies that are responsive to the demands of all of their stakeholders are arguably better positioned to achieve long-term financial success. It is no longer optional for a company to communicate its environmental and social impacts; such information is pertinent in an information-driven economy, and improved communication has become critical for sustainable business growth.

2. EXECUTIVE SUMMARY
CORPORATE SOCIAL RESPONSIBILITY (CSR) is a topic that has received too much attention in recent years and around which there has been too much debate, dispute and confusion. When social responsibility first burst into popularity in the late 1960s, it was a controversial subject but today, there are indications that social responsibility has become an obligation for any business, and that it is a permanent fixture on the corporate scene. Social Responsibility is an important function that affects organisational performance and corporate standing in the community.

Over the last 50 years of global corporate history, business philanthropy has matured into corporate social responsibility. In the new global economy, companies that are responsive to the demands of all of their stakeholders are arguably better positioned to achieve long-term financial success. It is no longer optional for a company to communicate its environmental and social impacts; such information is pertinent in an information-driven economy, and improved communication has become critical for sustainable business growth.

General understanding of CSR, at least in India, is only of philanthropy. However, on a larger canvas, philanthropy is only a small part of the total concept of CSR- not more than the tip of an ice-berg, as Indian industry externalizes, desperate to leave its footprints in International business, it is only a matter of time when these issues will start impacting rigorously on the Indian business.

Prime Minister, Dr. Manmohan Singh has rightly pointed out that there is quite understandably a difference in the approach of management philosophies and practice as developed in the United States, Europe and Japan. As we learn from West and East, we must try to evolve our own paradigm of management education based on our own social and global attributes.

3. INTRODUCTION TO THE PROJECT

Corporate Social Responsibility:

Objective: The main objective of this project is to understand the importance of business houses realizing that their role extends beyond just production of quality goods and services. In todays times of globalization it is important to give back to the society/community.

Scope: With rising awareness among public about the functioning of a business organization and their rights & duties towards society, every individual of corporate organization should be well aware of their responsibility to meet the demanding need of the globe in future. Therefore CSR has a wide scope today and also in the future.

Data Collection Method: Data collection was done through various sources like:

Primary Data From ACC Limited

Secondary data Internet Various books Annual reports

Limitations: Time consumed in establishing the contact with a company.

This forms the main constraints in preparation of a project and also limits my study .

4. WHY IS THERE SO MUCH TALK ABOUT CSR TODAY?

As both businesses as well as governments have existed on earth since ancient times, why are terms like CSR and sustainable development being talked of now only for the last decade? The answer lies in the growing sizes of businesses and the corresponding shrinking roles of governments. As the people are now more educated and informed than their predecessors, their expectations from corporate houses too have increased .

In India too, there is a growing number of companies in the private sector (whose revenue receipts are much more than Rs. 10,000 Crores, led by companies like Reliance Industries Ltd.). The level of these receipts is more than the annual receipts of many smaller states. These companies control a large part of earths resources, the price of which is paid in the form of sacrifices by different sections of society. On the other hand, governments are re-defining their roles and are limiting themselves to governance and facilitation.

In the new, envisaged scenario, the private sector would increase its role in the economy, while the government would take care of services such as basic education, public health and basic medical care. As success brings with it responsibility, the growing size and influence of the corporate houses has led to growing expectations as also to a growing need of regulations. The reason why CSR has assumed so much importance today is because corporate houses intervene in so many areas of social life, they must be responsible towards society and environment.

5. ARE FIRMS READY TO ASSUME THE RESPONSIBILITY OF

CSR?
CSR, at any rate, is thriving. It is now an industry in itself, with full time managers, web-sites, newsletters, professional associations and massive armies of consultants. The total annual report of almost every major company has several pages devoted to the companys social goals and good works undertaken by it. At the companys annual general meeting (AGM) the chairman does not forget to mention the social service activities undertaken by the company. Thus more and more firms are now attending to the corporate social responsibilities at a faster pace.

6. CAN CORPORATE HOUSES AVOID SOCIAL RESPONSIBILITY?

Traditionally, CSR is seen as a voluntary action that businesses can take over and above compliance with minimum legal requirements to address both their own competitive interests and the interests of wider society. However, increasing literacy levels, rise of the middle class and a general increase in awareness among citizens about social and environmental issues have forced businesses to adopt a broader view of their responsibilities that covers not only stockholders, but also many other constituents, including employees, suppliers, customers, the local community, government, non-government organisations, environmental groups and special interest groups.

7. STAKEHOLDERS OF A COMPANY
Stakeholders in business can be defined as those who either affect, or are affected by the activities of a business enterprise.

7.1 PRIMARY STAKEHOLDERS

SHAREHOLDERS (OWNERS) BANKERS, LANDERS AND INSURERS EMPLOYEES

PRIMARY
NATURAL ENVIRONMENT

STAKEHOLDERS

CUSTOMERS

FUTURE GENERATIONS

BUSINESS PARTNERS

COMMUNITIES

7.2 SECONDARY STAKEHOLDERS

LOCAL, STATE AND FEDERAL GOVERN-MENTS COMPETITORS

REGULATORY BODIES

SECONDARY STAKEHOLDERS
MEDIA CIVIC INSTITUTIONS AND GROUPS

TRADE AND INDUSTRY GROUPS SPECIAL INTEREST GROUPS

An organisations responsibilities are not limited towards its primary stakeholders. Secondary stakeholders also play an active role in trying to ensure that organisations accept and meet their responsibilities towards their primary stakeholder groups. Organisations are thus accountable to these secondary stakeholders.

8. DEVELOPMENTS OF CSR IN INDIA

1. FIRST PHASE: Merchant charity- Dates back to Vedic period Religious and social ethics Motivated by charity and philanthropy Predominantly determined industrialization.

by culture, religion, family tradition, and

Relief in times of crisis like famines or epidemics Dharamshalas Drinking water Donate money to schools or hospitals

2. SECOND PHASE: Trusteeship 1914-1960 Dominated by the countrys struggle for independence and influenced fundamentally by Gandhis theory of trusteeship Social responsibility was brought into communitys consciousness goes principally to business leaders like JRD Tata, Ramakrishna Bajaj, Arvind Mafatal and Kasturbhai Lalbhai. Vinoba Bhave on whom Gandhijis mantle had fallen wanted businessmen to interest themselves in humanitarian, educational and other beneficial social activities and consider business as a social mission while promoting the trusteeship of wealth theory of Gandhiji whereby owners and workers were co-trustees of business for society.

3. THIRD PHASE: CSR under the paradigm of the mixed economy - Declaration of social responsibility 1960-1980 Characterized by a shift from corporate self-regulation to strict legal and public regulation of business activities

Role of Jaiprakash Narayan Organized conferences on responsibility of business Setting up Fair Trade Practices Association by Tata, Bajaj and others

4. FOURTH PHASE : CSR at the interface between philanthropic and business approaches - Managerial Trusteeship 1980 & later Integrated CSR into a coherent and sustainable business strategy, partly adopting the multi-stakeholder approach.

Realization that continued profitability depended on involvement towards development of society Importance of ethical business practices and concern for the environment in which the business operates was also recognized

5. FIFTH PHASE- Post Liberation & Corporate citizen At present India has become an important economic and political actor in the process of globalization

Corporate citizenship Realization that if social development is neglected, business cannot prosper Government alone cannot handle all social issues

9. VARIOUS RESPONSIBILITIES OF BUSINESS WITH REGARDS TO CSR

1. Social reasonability (people)

Labour right slave, forced or compulsory labour, child labour, freedom of association, collective bargaining, on discrimination, rest, leisure and holidays, minimum wages, health and safety

Right to work, protection against unjustified termination, technical guidance and training Right to life Development rights, right to education, to help, to adequate food, clothing, housing, social security Right to hold opinions and freedom of expression, thought, religion Right to privacy

2. Environmental/ Ecological responsibility (planet) Air emissions and impact of global warming Impact of ozone layer Prohibition of use of certain materials and substances, safe hand link of dangerous substances Distance to residential neighborhoods for productions site Treatment and reduction of waste water Eco-efficiency, consumption of raw material and consumption of energy Animal welfare

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DEVELOPING A GREEN BUSINESS ECO-SYSTEM Protection of the biosphere Sustainable use of natural resources Reduction and disposal of wastes Wise use of energy Risk reduction Marketing safe products and resources Disclosure Assessment and annual audit

3. Economic responsibility (profit) Financial profit, economic growth and asset creation Business ethics, corruptions and bribery Economic regulation, tax incentives Donations

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10. BUSINESS BENEFITS OF CSR

CSR expenses can benefit corporate houses in many more ways other than by increasing visibility. The business benefits of CSR are:

Economic Considerations Ethical Considerations Innovation and learning Employee motivation Risk management or Risk reduction Access to capital or increased shareholder value Reputation or brand Improvement in market position (market share) Strengthened supplier relationship Cost saving Improved relationship with government authorities Other factors

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11. IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY

Many factors and influences, including the following, have led to increasing attention being devoted to CSR: Globalization -- with its attendant focus on cross-border trade, multinational enterprises and global supply chains -- is increasingly raising CSR concerns related to human resource management practices, environmental protection, and health and safety, among other things. Governments and intergovernmental bodies, such as the United Nations, the Organisation for Economic Co-operation and Development and the International Labour Organization have developed compacts, declarations, guidelines, principles and other instruments that outline social norms for acceptable conduct. Advances in communications technology, such as the Internet, cellular phones and personal digital assistants, are making it easier to track corporate activities and disseminate information about them. Non-governmental organizations now regularly draw attention through their websites to business practices they view as problematic. Consumers and investors are showing increasing interest in supporting responsible business practices and are demanding more information on how companies are addressing risks and opportunities related to social and environmental issues. Numerous serious and high-profile breaches of corporate ethics have contributed to elevated public mistrust of corporations and highlighted the need for improved corporate governance, transparency, accountability and ethical standards. Citizens in many countries are making it clear that corporations should meet standards of social and environmental care, no matter where they operate. There is increasing awareness of the limits of government legislative and regulatory initiatives to effectively capture all the issues that corporate social responsibility addresses.

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12. ADVANTAGES OF UNDERTAKING CSR

Business for Social Responsibility is a leading non-profit global organisation providing businesses with information, tools, training and advisory services related to integrating corporate social responsibility in their business operations and strategies. Their research and experience concludes that companies have experienced a range of bottom-line benefits which includes the following:-

1. INCREASED SALES AND MARKET SHARE

The Business for Social Responsibility and the Conference Board surveyed 25,000 citizens in 23 countries regarding corporate social responsibility. Highlights of findings included the following: Ninety percent of respondents want companies to focus on more than profitability. Sixty percent said they form an impression of a company based on perceptions of social responsibility. Forty percent said they either responded negatively to or said negative things about companies they perceive as not being socially responsible. Seventeen percent reported they had actually avoided the products of companies if they perceived them as not being socially responsible

It has been also found in various surveys that 75% of consumers have said that their purchasing decisions are influenced by a companys reputation with respect to the environment and 8 in 10 consumers have said that they would pay more for products that are environmentally friendly. Thus corporate social responsibility initiatives by a company will definitely increase its sales and hence its market share.

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2. STRENGTHENED BRAND POSITIONING

The latest trend is that consumers are going beyond the practical issues of functional product performance or rational product benefits and further than the emotional and psychological aspects of brand personality and image. Marketing initiatives containing a larger amount of social content have a more positive effect on brand judgments and feelings than initiatives that are similar in size and scope that contain less social content. For example, a program that would make a donation to an environmental organisation every time a purchase is made would be higher in social content than a program that gave a consumer a free toy every time a purchase is made.

3. ENHANCED CORPORATE IMAGE AND REPUTATION

With increase in competition and little differentiation in product features, creating and sustaining a brand image is a challenge. Spending on visible CSR activities is a cost effective means of achieving and sustaining a brand image. In the long run it is the perception of the community about a business house which ensures sustainability. The concept of CSR extends to the values and ethics on which a particular business is founded and run. Good brand image leads to customer loyalty, which cannot be established overnight. A strong reputation in the community can be a real asset in times of crisis. A positive corporate image may also influence policy makers as well.

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4. INCREASED ABILITY TO ATTRACT, MOTIVATE AND RETAIN EMPLOYEES A companys participation in social initiatives can have a positive impact on prospective and current employees, as well as citizens and executives. A natural soft corner is developed in the mind of employee towards employer. It imparts confidence to the employee that his employer will stand by his side in times of crisis. As human beings in general, are god fearing and want to remain associated with good people, employers with good CSR track records are better positioned to attract and retain employees.

5. DECREASED OPERATING COSTS

Several business firms have enjoyed the benefits of decreased operating costs and increased revenue from grants and incentives as a result of the implementation of corporate social initiatives. One such initiative easy to point to includes companies who adopt environmental initiatives to reduce waste, reuse materials, recycle and conserve water and electricity. An example is that of a project undertaken to separate wastes in TATA Steel cost the company Rs. 100 lakhs in the first year, as it invested in 400 bins but selling the wastes earned it Rs. 20 Crores.

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6. EFFECTIVE PROCESS MANAGEMENT

Improving business excellence often means improving process control. Waste can be seriously cut back saving significant amounts of money. By being keen on waste and externalities, companies can improve their environmentally friendly profile; add surplus value to their products and services and save production costs at the same time.

7. INCREASED CUSTOMER LOYALTY

Consumers not only want good and safe products, but would also like to know that what they buy was produced in a socially and environmentally friendly way, and are sometimes even willing to pay more for products that are produced in a socially and environmentally responsible manner. Loyalty is a combination of three crucial elements- product/service quality, price and intellectual/emotional bonding. The third element can be ensured through effective CSR of the company.

8. MORAL PERSUATION The top management of a company by its example (of being socially responsible) or through persuasion and encouragement may seek to stimulate managers and employees to pursue social actions. The assumption is that managers by this method will be willing and anxious to comply with the basic policies of top management.

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13. CHALLENGES WHILE UNDERTAKING CSR

Managers and social program planners are challenged at each of the fundamental decision points related to choosing a social issue, selecting an initiative to support this issue, developing and implementing program plans and evaluating outcomes.

1. CHOOSING A SOCIAL ISSUE

Challenges are perhaps the greatest in this very first step, as experience has shown that some social issues are a better fit than others and this first decision has the greatest impact on subsequent programs and outcomes. They will be faced with tough questions including these:

How does this support our business goals? How big of a social problem is this? Isnt the government or someone else handling this? What will our stockholders think of our involvement in this issue? Is this something our employees can get excited about? Will this cause backfire on us and create a scandal? Is this something our competitors are involved in already?

2. SELECTING AN INITIATIVE TO ADDRESS THE ISSUE To face this challenge the managers need to face the following tough questions: How can we do social programs without distracting us from our core business? How will this initiative give visibility to this company? Do these promotions really work? What if consumers find out that the amount of the sale that actually goes to the cause is minuscule? Have we calculated the productivity cost for giving our employees time off for volunteering during the social causes?

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3. DEVELOPING AND IMPLEMENTING PROGRAM PLANS

Key decisions at this point include whether to partner with others and, if so, with whom, determining key strategies, including communication and distribution channels, assigning roles and responsibilities, developing timetables and determining budget allocations and funding sources. The questions to be faced during this challenge are:

How can we do this when money is needed for increased performance? What do we say to stockholders who see this as money that belongs to them? Will having partners slow down the decision-making process, thus taking more of our staff time? Will we be doing enough good for the cause to justify the expense?

4. EVALUATION

Ongoing measurement of marketing activities and financial investments for corporations has a long record, with decades of experience in building innovative tracking systems and databases. However, the science of measuring return on investments in corporate social initiatives is very young, with little historic data and expertise. Marketing professional and academic experts in the field confirm this challenge. They agree that, since the benefits related to CSR are not directly measurable, and most firms do not disclose expenses related to such activities and hence it is difficult to directly assess the return on CSR investment.

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14. THE SIX MAJOR TYPES OF SOCIAL INITIATIVES

Most of the corporate social responsibility related activities fall under the following six major initiatives:-

1. CAUSE PROMOTIONS

A corporation provides funds, in-kind contributions, or other corporate resources to increase awareness and concern about a social cause or to support fundraising, participation or volunteer recruitment for a cause. The corporation may initiate and manage the promotion on its own; it may be a major partner in an effort (for e.g. A corporation sponsoring the Cancer Foundations fund raising marathon); or it may be one of several sponsors.

Typical Cause Promotions:

Building awareness and concern about a cause by presenting motivating statistics and facts, such as publicizing the number of children who go to sleep hungry in India each night; by sharing real stories of people in need of or who have been helped by the cause.

Persuading people to find out more about the cause by visiting a special web-site, etc. Persuading people to donate their time to help those in need and also to participate in events. Persuading people to donate non-monetary resources.

2. CAUSE-RELATED MARKETING

A corporation commits to making a contribution or donating a percentage of revenues to a specific cause based on product sales. Most commonly this offer is for an announced period of time, for a specific product and for a specified charity.

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In this scenario, a corporation is most often partnered with a non-profit organisation, creating a mutually beneficial relationship designed to increase sales of a particular product and to generate financial support for the charity. Many think of this as a win-win situation as it provides consumers an opportunity to contribute for free to their favourite charities as well.

3. CORPORATE SOCIAL MARKETING

A corporation supports the development and/or implementation of a behaviour change campaign intended to improve public health, safety, the environment or community well-being. The distinguishing feature is the behaviour change focus, which differentiates it from cause promotions that focus on supporting awareness, fundraising and volunteer recruitment for a cause. A corporation may develop and implement a behaviour change campaign on its own but more often it involves partners in non-profit organisations.

Typical Corporate Social Marketing campaigns:

Health issues including tobacco use prevention, second hand smoke, breast cancer, eating disorders, HIV Aids, etc. Injury prevention issues including traffic safety, suicide prevention and emergency preparedness. Environmental issues like water and electrical conservation, use of pesticides, air pollution, wildlife habitats and litter prevention. Community involvement issues such as volunteering, voting, animal rights, organ donation, crime prevention and blood donation.

4. CORPORATE PHILANTHROPY

A corporation makes a direct contribution to a charity or cause most often in the form of cash grants, (for e.g. educational cash grants), donations and/or in-kind services.

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This initiative is perhaps the most traditional of all corporate social initiatives and for many decades was approached in a responsive manner. More corporations are now experiencing pressures, both internally and externally to move to a more strategic approach, choosing a focus and tying philanthropic activities to the companys business goals and objectives.

Examples of typical corporate philanthropy are providing cash donations, offering grants, awarding scholarships, donating products, donating services, providing technical expertise, allowing the use of facilities and distribution channels, offering the use of equipment, etc.

5. COMMUNITY VOLUNTEERING

A corporation supports and encourages employees, retail partners and/or franchise members to volunteer their time to support local community organisations and causes. This activity maybe a stand-alone effort (i.e. employees of a high-tech company tutoring youth in middle schools on computer skills) or it maybe done in partnership with a non-profit organisation. Volunteer activities may be organised by the corporation or employees may choose their own activities and receive support from the company through such means as paid time off and volunteer database matching programs.

6. SOCIALLY RESPONSIBLE BUSINESS PRACTICES

A corporation adopts and conducts flexible business practices and investments that support social causes to improve community well-being and protect the environment. Initiatives may be conceived of and implemented by the organisation or they may be in partnerships with

others (for e.g. a company working with International Conservation to support farmers to minimize impact on their local environments).

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15. MYTHS ABOUT CSR

MYTH # 1: CSR IS A DUTY TRUTH: CSR is not a duty. It must come from within. It can never be mandated. It must emanate from empathy not sympathy. And thus it is different from charity and whats more, it can also be cleverly tied in with the needs of your company or brands. For example, the Taj Group of Hotels recently unveiled the Varanasi hand-woven saree that will now be worn by all their front-of-house staff: in one stroke keeping the craftsmanship of the Varanasi artisan alive and his livelihood going. It would thus prevent an art form from going extinct and at the same time add to the image of the Group. Nestle undertakes several milk farmer co-operative movements in Punjab and more recently, Amul has enabled the formation of a natural vanilla farmers movement and launched a Natural Vanilla Ice-cream: in all of the above examples, they did not have to but they wanted to make a difference. Thus, giving back to the community must be a call from within: not something that will guarantee you a photo-opportunity with the Prime Minister at the next Business Award ceremony!]

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MYTH # 2: CSR CREATES GOODWILL TRUTH: The very fact that corporates approach the giving back to society with a bargain mindset is self-defeating. More than goodwill, which is largely eternal, it is believed that giving back to society creates a culture of goodness and strong values within the organisation. It helps build pride within all the key stakeholders: be they employees or shareholders. In many ways, it builds and enhances respect. The problem is that companies in India have begun to use this whole area of giving back more as a public relations exercise rather than a belief they possess. Internationally, Shell has touted their environment initiatives but nowhere do they feature amongst the worlds most respected companies because advertising and sponsored talk shows on television is not enough to create that well-spring of respect.

MYTH # 3: CSR IS EXPENSIVE TRUTH: The fact that companies still seek tax exemptions for any good that they do, shows them for what most of them really are. You dont need to be monetarily incentivised to care for your fellow human-beings and in this area it is delightful to note that in some of the more venerable business houses, the leadership itself has remained determined in their commitments to humanity.

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16. BEST PRACTICES FOR IMPLEMENTING CSR

Choosing Social Issues to Support

1. Choosing only a few social issues to support. 2. Choose those that are of concern in the communities where the company does business. 3. Choose issues that have synergy with mission, values, products and services. 4. Choose issues that have potential to support business goals: marketing, supplier relations, increased productivity, and cost reductions. 5. Choose issues that are of concern to key constitute groups: employees, target markets, customers, investors and corporate leaders. 6. Choose issues that can be supported over a long term.

Selecting Initiatives to Support Social Issues

7. Select initiatives that best meet business objectives and goals. 8. Select initiatives that meet priority needs for the cause. 9. Select initiatives representing the most potential for strong community partners. 10. Select that initiative where the company has a history of experience. 11. Select initiatives that will control current abundant resources. 12. Select multiple initiatives for a single cause.

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Developing and Implementing Program Plans

13. Form internal, cross-functional teams to develop plans. 14. Include community partners in plan development. 15. Establish clear objectives and measurable goals (outcomes) for the company. 16. Ensure that the initiative gives visibility to the company. 17. Develop a communications plan. 18. Identify and plan for additional strategic elements. 19. Get senior management buy-in.

Evaluation

20. Determine purpose of evaluation. 21. Measure and report resource outputs. 22. Measure and report outcomes for the company, based on initiative objectives and goals. 23. Ensure that the initiative does enough good for the cause to justify the expenses. 24. Monitor status of social issues that initiatives are supporting. 25. Allocate adequate resources for measurement and reporting.

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17.TRENDS IN VIEWS OF CORPORATE SOCIAL RESPONSIBILITY

According to the MORI (A UK based Research Company) Survey conducted in 2003 the following inferences were made regarding corporate social responsibility. 1044 adults were interviewed during this survey.

Survey Question: Is it acceptable for companies to benefit from CSR contributions or should they benefit only those they are trying to help?

Companies social/community contributions should benefit only those they are trying to help 34% It is acceptable to derive some benefit from their social and community contributions 57%

No Opinion 9%

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THE PIC-IMRB SURVEY

Between May and October 2005, the social and rural research institutes, a specialist unit of IMRB, polled 536 companies across India on behalf of an NGO called Partners in Change. These companies with turnover upwards of Rs. 25 crores were randomly selected.

SURVEY QUESTION :1 WHY ENGAGE IN CSR?

70 60 50 40 30 20 10 0 Image Building Employee Morale Philanthropy Ethics

X Axis: Significant drivers of CSR Y Axis: % of companies

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SURVEY QUESTION: 2 WHO HAS A CSR POLICY?

40 35 30 25 20 15 10 5 0
Pharma. Engg. Services Health IT Infra Finance Food Textiles Others

X Axis: Documented CSR Policy across business areas Y Axis: % of companies in sector

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SURVEY QUESTION: 3 WHICH ARE THE MOST SIGNIFICANT ACTIVITIES UNDERTAKEN?

18 16 14 12 10 8

6
4 2 0 Health Blood-donation Education Opening Schools Relief camps

X Axis: Different Social Initiatives Taken Y Axis: % of companies

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SURVEY QUESTION: 4 WHAT ARE THE REASONS FOR NOT HAVING A CSR POLICY?

90 80 70 60 50 40 30 20 10

0
Fin. Reasons Small size Didn't Think of it Already doing Upper Mgt. No specific decides reason

X Axis: Reasons for not having a CSR policy Y Axis: % of companies

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18. CSR AWARDS IN INDIA

In India, most of the corporate houses still link social responsibility or sustainable development only with the community initiatives. Thus, CSR awards are a measure to promote and encourage companies to undertake corporate social responsibilities. Some of the popular awards are:-

Golden Peacock Environment Management Award Golden Peacock Award for Corporate Social Responsibility CII-ITC Sustainability Award TERI(The Energy and Resources Institute) Corporate Social Responsibility Award Asian CSR Awards

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19. ABOUT ACC LIMITED

ACC Limited (Formerly The Associated Cement Companies Limited) is the largest producer of cement in India, based in Mumbai. Its registered office is called Cement House. It is located on Maharishi Karve Road, Mumbai. The stock price of company contributes in calculating BSE Sensex. The management control of company was taken over by Swiss cement major Holcim in 2004. On 1st September, 2006 the name of The Associated Cement Companies Limited was changed to ACC Limited. The company is only cement company to get superbrand status in india.

CORPORATE SOCIAL RESPONSIBILITY. Corporate Social Responsibility is definedas the way a company balances its economic, social and environmental objectives while addressing stakeholder expectations and enhancing shareholder value. But ACC has undertaken social volunteering practices almost from its inception, long before the term corporate social responsibility was coined. The companys earliest initiatives in community development date back to the 1940's in a village on the outskirts of Mumbai while the first formal Village Welfare Scheme was launched in 1952. The community living around many of our factories comprises the weakest sections of rural and tribal India with no access to basic amenities.

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20.CORPORATE SOCIAL RESPONSIBILITY POLICY OF ACC LIMITED

The Company shall continue to have among its objectives the promotion and growth of the national economy through increased productivity, effective utilization of material and manpower resources and continued application of modern scientific and managerial techniques, in keeping with the national aspiration; and the Company shall continue to be mindful of its social and moral responsibilities to consumers, employees, shareholders, society and the local community. In pursuance of the above objective, ACC acknowledges the importance of the concept of inter-dependence of all sections of society. In particular, its focus revolves around the community residing in the immediate vicinity of its Cement Plants and Mines where it seeks to actively assist in improving the quality of life and making this community self-reliant. In line with its abiding concern for preservation of the ecological balance and safeguarding the health of the community, ACC has always actively demonstrated its firm resolve to protect the environment Mindful of its great tradition, ACC is deeply committed to enhancing its reputation and respect built over the years in industry and society for its professional style of management based on philosophy of the best in business ethics.

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21. CSR ACTIVITIES OF ACC LIMITED

THERE ARE VARIOUS CORPORATE SOCIAL RESPONSIBILITIES UNDERTAKEN BY ACC LIMITED. THEY ARE:-

1. Community & Rural Welfare:Our community development activities revolve around the under-privileged community that lives in the immediate vicinity of our cement plants and is thus more dependent on us. The range of our activities begins with extending educational and medical facilities and goes on to cover vocational guidance and supporting employment-oriented and income-generation projects like agriculture, animal husbandry, cottage industries by developing local skills, using local raw materials and helping create marketing outlets.

At all our cement factories we share our amenities and facilities with members of the local community. This includes sharing education and medical facilities, sports and recreation. Wherever possible we share access to Bore Wells, drinking water and the usage of colony roads.

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2. Education:Education is imparted not only to children of ACC employees but also more importantly to children from rural areas who do not have access to any medium of information or education. ACC schools maintain high standards and are open to other children of the vicinity. Often these schools are the most preferred centers of learning in the district and adjoining areas. Wherever possible, ACC provides funds and infrastructure to help set up local schools, colleges and centers for learning and education.

3. Healthcare ACC takes pride in providing various forms of medical assistance to the families of our employees and also to all those living in surrounding villages. Each factory has a medical center with full-fledged doctors and the latest of basic equipment. Mobile medical services are provided in the vicinity and regular medical camps are held to eradicate diseases, offer medical help, treatment and preventive care.

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ACC has come out to provide support to state and national health initiatives such as the eradication of malaria, dengue fever and the dreaded HIV. 4. HIV/AIDS - Workplace Policy ACC is desirous of playing a meaningful role in the nationwide effort to eradicate HIV/AIDS and has pledged to support the Confederation of Indian Industry in their initiative. ACC recognizes that a fundamental step in this respect involves a clear statement of the companys internal policy to deal with employees affected by HIV/AIDS. CII has framed a Code of Practice for Industry to guarantee and safeguard the rights of employees infected and affected by HIV/AIDS. We adopt this as ACCs internal workplace policy for HIV/AIDS. The policy states that:: 1. The company will provide a safe and healthy work environment for employees.

2. The company will educate its employees and the family on prevention, care and counseling of HIV/AIDS.

3. The company will educate its employees on safe blood donation and transfusion.

4. If an employee has been infected, information about the illness would be kept confidential by the company. Only the immediate superior would be kept advised to prevent any medical eventuality.

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5. A HIV positive employee will be allowed to continue to work in his or her job unless medical conditions interfere with the specific job he or she is doing. On account of health conditions the employee may be shifted to another comfortable position.

6. The employer should ensure that the coemployees cannot or should not shun their HIV positive peer or refuse to work alongside them. In fact, the company will assure his or her comfort level in the work place. 7. The company will, as a policy, not discriminate against any employee infected by HIV/AIDS with regard to promotions, training and any other privileges, applicable to all employees of the organisation.

8. While the company may ask a person who is being offered a job to undergo general medical tests before the issue of the appointment letter, the test will not cover HIV/AIDS, without an informed consent and pre test counseling of the candidate. |

9. The company will educate its employees and encourage them to participate in voluntary counseling and testing. However, HIV/AIDS tests will not be a part of any annual or regular health check ups, without the employees informed consent and pre test counseling.

10.The company will ensure that proper treatment is available to employees infected with HIV/AIDS. The company will assist the employee in meeting the cost of antiretroviral (ARV) drugs within the prescribed limits as fixed by the Company. The arrangements for treatment will be made at hospitals pre-identified by the company and payment will be made directly to the service provider. All other (non-ARV) HIV/AIDS related costs will be covered as per the companys prevailing scheme for Health and Medical treatment. It is hoped that this policy will help build positive and supportive attitudes towards those infected as well as promote health and safety amongst the employees.
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5. Disaster Relief ACC and its employees make timely contribution to help in any national disaster. This is done both at the corporate level, by local units and employees. Apart from the Kargil cause, collective contributions by way of cash, food and clothing has been sent to help victims of calamities such as the Latur earthquake, Himachal Pradesh floods, Orissa cyclone, Gujarat earthquake, Tsunami and floods in Maharashtra.

6. Conservation of heritage structures The services of ACCs Concrete experts have often been utilized in the restoration of several national heritage buildings across the country - such as sections of the Chhatrapati Shivaji Terminus (formerly Victoria Terminus) at Mumbai, the J N Petit and David Sassoon Libraries in Mumbai, churches in Goa, palaces and royal mansions in Mysore and Hyderabad and other old structures in the country.

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The historic Vijayraghavgarh fort in Madhya Pradesh was recently restored under ACCs patronage. This is not a core business of the company but an act of corporate volunteering by way of sharing knowledge and expertise.

7. Global Compact

ACC Limited is a signatory to the United Nations Global Compact. We are committed to the ten principles of the Compact which foster better corporate responsibility in the areas of human rights, labour, environment and anticorruption. Established in 1936, this company has from its very inception been conscious of its obligations to the community and has always kept in view its social responsibilities. ACCs Vision vividly declares the companys commitment to its corporate social responsibility and sustainable development issues making these an essential part of the business goals for the company. This communication on Progress provides an insight into our recent activities in support of the Global Compacts Objective and our efforts towards continuous improvement.

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22. MY LEARNINGS FROM THE STUDY

There is a need for public-private partnership with well-defined controls and processes for the best use of resources for social change.

Social responsibility should not be limited to large successful corporations; there should be greater participation from most small, medium, and large businesses.

Corporate social responsibility is a culture and unwritten contract with the community.

CSR is not a duty. It must come from within. It can never be mandated. It must emanate from empathy not sympathy.

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23. CONCLUSION
The concept of Corporate Social Responsibility is not new in India. Right from the preindependence times, the Gandhian model has been in practice. Many family owned businesses continue to engage in philanthropic activities. However with the passage of time and increased privatization and globalization, the stakeholder model is gaining more importance. Hence, corporate responsibility is becoming an integral part of the business strategy. A poll reveals a number of areas where further progress is needed for the business sector to keep pace with greater expectations for responsible, transparent and accountable corporate conduct from various stakeholders.

High expectations from companies are not yet matched by judgments about CSRs. More trust is placed in media and NGOs than the industry. Finding creative ways to work in collaboration with the NGOs would help to enhance the corporate image.

The emerging message to corporations seems quite clear. Take care of your customers; do not ignore your suppliers. Your employees are your most important partners in the wealth creation process: share your potential prosperity with your people. Meet your debt service obligations promptly and on schedule. All these are imperative in ensuring shareholder wealth maximization, which is indeed the primary goal of the corporation. Companies must focus on their prime responsibility to the shareholders, the owners of the company. But in order to sustain such achievements, working within and as part of society is all-important. Such are the challenges and opportunities for corporations in quest of world-class standards of excellence in the twenty first century.

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Despite speedy economic development, strong business fundamentals and the bullish trend in the stock market, the human development indicators, i.e., poverty, illiteracy and infant mortality in the country, continue to cut a sorry picture. It is the duty of those who claim all the credit for development to devise and design mechanisms such that the people do not feel cheated and happily come forward to offer sacrifices. This can happen only when businesses consider CSR expenses as among their main stream expenses.

Reports like The Indian Development Policy Review have shown that in India, even though agriculture contributes slightly more than 20% of the GDP, it supports two-thirds of our population. The gap between the rich and the poor has widened during the last 50 years thereby greatly endangering the countrys social, economic and political stability.

The government alone cannot take all the initiatives to alleviate the miseries of the people and to provide them with all the amenities. Therefore, the corporate sector must step in to assist the government till India becomes a truly welfare state.

Whether corporate social responsibility is a moral and ethical imperative or simply a new factor in doing business profitably, the emerging consensus is that is here to stay and needs to be managed carefully. This requires new knowledge, skills and values that allow managers to balance profitability to the stakeholder interests and social environmental realities. Certainly, we do not have enough people who understand CSR in its right perspective. We need to develop, through structured education programs and trainings, people, who can undertake CSR by specializing in its different streams.

With businesses taking the issue of CSR far more seriously than ever before, the demand for professionally trained people in the areas of environmental and social issues has shot up. The trend has caught on during the last 5-6 years with corporate houses setting up separate teams for CSR.

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The objectives of brand building and the desire to stand out in the crowd are at the core of CSR initiatives, which have received a further boost with the introduction of awards like the TERICSR that provide organisations with a credible platform to showcase their work and win awards for it.

India has a number of companies with long traditions of philanthropic and community programmes. As Indian companies go global, in many corporate houses ownership is becoming distinct from management. This coupled with other socio-economic, regulatory pressures has resulted in a shift from corporate philanthropy to corporate social investment (CSI). The term CSI is often used to describe a companys investment in a range of community a ctivities. It includes, but goes beyond, the concept of corporate philanthropy.

World Economic Forum and the Joint Research Centre of the European Commission assessed and ranked 133 countries on the basis of 16 indicators ranging from child mortality to carbon dioxide emission per GDP. India stands at the 118th place with 47.7 points followed by 13 African countries, Pakistan and Bangladesh. New Zealand tops the list with 88 points followed by Japan. Water and indoor air pollution were found to be the main cause for concern in the Indian context. Thus it is very unfortunate that India ranks low in environmental protection. The green movement has made consumers more conscious of what firms do to the environment. In developed countries more than half the consumers avoid products of companies that are not socially responsible.

Thus Corporate Social Responsibility is a very important aspect of business.

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24. BIBLIOGRAPHY REFERENCE BOOKS

INDIAN AUTHORS 1.CORPORATE SOCIAL RESPONSIBILITY: ETHICAL AND STRATEGIC
CHOICE BY JAYANTA BHATTACHARYA (2007 - FIRST EDITION)

2. CORPORATE SOCIAL RESPONSIBILITY IN INDIA BY SANJAY. K. AGARWAL (2008 FIRST EDITION)

FOREIGN AUTHORS
1. CORPORATE SOCIAL RESPONSIBILITY Doing the most good for your company and your cause By PHILIP KOTLER and NANCY LEE (2005 EDITION)

2. A GUIDE TO CORPORATE SOCIAL RESPONSIBILITY BY JAMES OURY (2007 FIRST EDITION)

3. THE BUSINESS ENVIRONMENT BY ADRIAN PALMER AND BOB HARTLEY (2006 EDITION PAGES 320 342)

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4. CORPORATE RESPONSIBILITY A Text Book On Business Ethics, Governance, Environment:Roles and Responsibilities. BY TOM CANNON (1994 FIRST EDITION)

WEBLIOGRAPHY: www.acclimited.com www.bsr.org (Business Social Responsibility) www.csrresults.com

www.google.co.in

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