CHAPTER I INTRODUCTION

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INTRODUCTION OF TOPIC
Corporate social responsibility (CSR) has variously been described as a motherhood issue (Ryan 2002, p 302) the hot business issue o! the nou"hties (#lyth 200$, p 30) and the tal% o! the to&n in corporate circles these days ('ees ( #onham 200)) *here seems to be an in!inite number o! de!initions o! CSR, ran"in" !rom the simplistic to the comple+, and a ran"e o! associated terms and ideas (some used interchan"eably), includin" corporate sustainability, corporate citi,enship, corporate social investment, the triple bottom line, socially responsible investment, business sustainability and corporate "overnance (-rime 'inister.s Community #usiness -artnership) /t has been su""ested that some0researchers0distort the de!inition o! corporate social responsibility or per!ormance so much that the concept becomes morally vacuous, conceptually meanin"less, and utterly unreco"ni,able(1rlit,%y 200$)2 or CSR may be re"arded as the panacea &hich &ill solve the "lobal poverty "ap, social e+clusion and environmental de"radation (3an 'arre&i4% 2003) Corporate Social Responsibility is the continuin" commitment by business to behave ethically and contribute to economic development &hile improvin" the 5uality o! li!e o! the &or%!orce and their !amilies as &ell as o! the local community and society at lar"e *he study aims to detail the various corporate social responsibilities underta%en by 6r Reddys lab !or the &el!are o! public *he concept o! social licence is an abstract one, the interpretation o! &hich varies *his is understandable in a corporate &orld "rapplin" &ith varyin" de"rees o! success &ith a ran"e o! concepts such as CSR, triple bottom line,

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and socially responsible investment 7o&ever, it is critical that corporations understand and embrace this relationship &ith the broader society in &hich they operate 8 popular e+planation o! the term CSR is the continuin" commitment by businesses to behave ethically and contribute to economic development, &hile improvin" the 5uality o! li!e o! the &or%!orce and their !amilies as &ell as o! the local community and society at lar"e 1ver the last years an increasin" number o! companies &orld&ide started promotin" their business throu"h Corporate Social Responsibility strate"ies because the customers, the public and the investors e+pect them to act sustainable as &ell as responsible /n some cases, CSR is a result o! a variety o! social, environmental and economic pressures &hile some other cases many lar"e corporations, it is primarily a strate"y to divert attention a&ay !rom the ne"ative social and environmental impacts o! their lives /t enables the company to levera"e its products, employee stren"th, net&or%s and pro!its and up to some e+tent to create a sustainable chan"e !or mar"inali,ed communities

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TITLE OF TOPIC
*he topic is titled as 9Corporate Social Responsibility: &ith speci!ic re!erence o! 6r Reddys ;aboratory

OBJECTIVE OF THE STUDY

*o underta%e a "eneral research on corporate social responsibility underta%en by 6r Reddys ;aboratory

*o study the contribution o! leadership and mana"ement practice in the area o! corporate social responsibility

*o !acilitate the ac5uisition and dissemination o! %no&led"e about practice in corporate social responsibility

SCOPE OF THE STUDY

'any o! the insi"hts and recommendations !rom this report may also be relevant !or local and national private sector en"a"ement2 ho&ever, the e+tent to &hich local and national private sector actors can contribute CSR is a topic that merits additional revie& 8 literature revie& has been complemented &hich provides insi"ht into the diversity o! CSR approaches and their implementation

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LIMITATION OF THE STUDY

*his study is based upon the literature present ( secondary data only, so the study in itsel! is con!ined up to a certain e+tent

6ue to paucity o! time and limits the CSR activities o! companies are described in short and there is a scope o! more detailed study

*he comparison is based on the 5ualitative in!ormation *here is not much in!ormation avai;aboratoryle on the CSR e+penditure o! company and its brea% up so the comparison is limited in its scope

*here &as no interaction &ith any pro!essional o! the companies studied so study lac%s practical approach

PERIOD OF STUDY
*he study &as conducted !or a duration o! ) months i e !rom <uly 2013 to 1ctober 2013

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CHAPTER II PROFILE OF Dr. REDDYs LABORATORY

31

INTRODUCTION - DRREDDY LABORATORIES

6r Reddys ;aboratories &as !ounded by 6r 8n4i Reddy, an entrepreneur=scientist, in 1>?) *he 6@8 o! the company is dra&n !rom its !ounder and his vision to establish /ndias !irst discovery led "lobal pharmaceutical company /n !act, it is this spirit o! entrepreneurship that has shaped the company to become &hat it is today 6r 8n4i Reddy, havin" moved out o! Standard 1r"anics ;imited, a company he had success!ully co=!ounded, started 6r Reddys ;aboratories &ith A )0,000 in cash and A120,000 in ban% loanB *oday, the company &ith revenues o! Rs 2, )2C crore (DS A$)E million), as o! !iscal year 200E, is /ndias second lar"est pharmaceutical company and the youn"est amon" its peer "roup *he company has several distinctions to its credit #ein" the !irst pharmaceutical company !rom 8sia -aci!ic (outside <apan) to be listed on the @e& For% Stoc% G+chan"e (on 8pril 11, 2001) is only one amon" them 8nd as al&ays, 6r Reddys chose to do it in the most di!!icult o! circumstances a"ainst &idespread s%epticism 6r Reddys came up trumps not only havin" its stoc% oversubscribed but also becomin" the best per!ormin" /-1 that year

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6r 8n4i Reddy is &ell %no&n !or his passion !or research and dru" discovery 6r Reddys started its dru" discovery pro"ramme in 1>>3 and &ithin three years it achieved its !irst brea%throu"h by out licensin" an anti=diabetes molecule to @ovo @ordis% in 'arch 1>>C Hith this very small but si"ni!icant step, the /ndian industry &ent throu"h a paradi"m shi!t in its ima"e !rom bein" %no&n as 4ust copycats to innovatorsB *hrou"h its success, 6r Reddys pioneered dru" discovery in /ndia *here are several such in!lection points in the companys evolution !rom a bul% dru" (8-/) manu!acturer into a vertically inte"rated "lobal pharmaceutical company today *oday, the company manu!actures and mar%ets 8-/ (#ul% 8ctives), Iinished 6osa"es and #iolo"ics in over 100 countries &orld&ide, in addition to havin" a very promisin" 6ru" 6iscovery -ipeline Hhen 6r Reddys started its !irst bi" move in 1>?E !rom manu!acturin" and mar%etin" bul% actives to the domestic (/ndian) mar%et to manu!acturin" and e+portin" di!!icult=to=manu!acture bul% actives such as 'ethyldopa to hi"hly re"ulated overseas mar%ets, it had to not only overcome re"ulatory and le"al hurdles but also battle deeply entrenched mind=set issues o! /ndian -harma bein" seen as producers o! .cheap. and there!ore lo& 5uality pharmaceuticals *oday, the /ndian pharma industry, in star% contrast, is %no&n "lobally !or its proven hi"h 5uality=lo& cost advanta"e in deliverin" sa!e and e!!ective pharmaceuticals *his transition, a tou"h and o!ten=perilous one, &as made possible than%s to the pioneerin" e!!orts o! companies such as 6r Reddys *oday, 6r Reddys continues its 4ourney ;evera"in" on its ;o& Cost, 7i"h /ntellect advanta"e Iorayin" into ne& mar%ets and ne& businesses *a%in" on ne& challen"es and "ro&in" stron"er and more capable Gach !ailure and each success rene&in" the sense o! purpose and helpin" the company evolve 31

Hith over >$0 scientists &or%in" across the "lobe, around the cloc%, the company continues its relentless march !or&ard to discover and deliver a brea%throu"h medicine to address an unmet medical need and ma%e a di!!erence to peoples lives &orld&ide 8nd &hen it does that, it &ould only be the be"innin" and yet it &ould be the most important step 8s ;ao *,u &rote a lon" time a"o, Gven a 1000 mile 4ourney starts &ith a sin"le step

OVERVIEW
6r Reddys be"an as an 8-/ manu!acturer in 1>?), producin" hi"h=5uality 8-/s to !irst the /ndian, and later, the international mar%ets /n 1>?C, &e started our !ormulations operations and, a!ter becomin" a !orce to rec%on &ith in the /ndian !ormulations mar%et, &ent international in 1>>1 *oday, our value proposition to our customers derives !rom an optimal operatin" system in &hich operations, product development and mar%etin" ( sales are !ully inte"rated 1perations and the supply chain are ali"ned to ensure hi"h availability, pull based replenishment o! products at the retail level and superior inventory turns to our customers *his advanta"e is combined &ith a hi"hly e!!ective prescription "eneration detailin" e!!ort 8 !ield !orce o! over 2C00 motivated and %no&led"eable representatives supported by an inte"rated net&or% o! bac%=end services and armed &ith handheld devices !or 5uic% in!ormation access add value to every customer call and interaction

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6r Reddys = /ndia today is more than a 200 million dollar venture &ith presence in almost all ma4or therapeutic areas 1ur !inished dosa"e business in /ndia started in 1>?E &ith launch o! @orilet (nor!lo+acin) 1ur mar%et penetration throu"h nearly 3000 sales !orce &ho connect to more than 3,00,000 doctors on a re"ular basis has yielded us reachin" all corners o! the country and providin" a!!ordable and innovative medicines in all ma4or therapeutic areas li%e "astro=intestinal, oncolo"y, pain mana"ement, cardiovascular, dermatolo"y, diabetes, etc Gi"ht o! our brands !eature in the top=300 brands in /ndia that include dru"s li%e Stamlo, Reditu+, 1me, and Jetorol 8lon"side the presence o! end=to=end pharmaceutical capabilities &ithin the or"ani,ation helps us cater customer and patient needs much more e!!ectively 'edicines li%e !or any other "eo"raphy, &e manu!acture at our DSI68 approved !inished dosa"e !acility &ith utmost importance on 5uality and e!!icacy o! the dru"s Recently &e have deepened our !ocus into the rural mar%ets in /ndia to ensure the e+pansion o! our reach /n this initiative &e have collaborated &ith our CSR &in", 6r Reddys Ioundation to help us reach the millions &ho are still a&ay !rom e!!ective treatment and availability o! the ri"ht medicines 8part !rom manu!acturin" and distribution o! medicines &e also provide patient care throu"h our various initiatives li%e Sparsh, ;i!e at your 6oorstep, etc (&here patients are "iven !ree treatment and medicines), and educate and create a&areness amon" healthcare pro!essionals throu"h 6RI7G to cater to the millions &ho are in need o! proper treatment across the country

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HISTORY

6r J 8n4i Reddy &as the Iounder=Chairman o! 6r Reddys ;aboratories ;imited head5uartered in 7yderabad, /ndia 7e &as born in *adepalli in Kuntur district o! 8ndhra -radesh 8!ter "raduatin" !rom #ombay Dniversity in # Sc (*ech) &ith speciali,ation in -harmaceutical Science and Iine Chemicals, 6r Reddy obtained his -h 6 in Chemical Gn"ineerin" !rom @ational Chemical ;aboratory, -une *hen came a stint at the state= o&ned /6-;, !ollo&in" &hich he became an entrepreneur and !ounded Dr. Reddys L !"r #"r$es in 1>?) Dnder 6r Reddys leadership the company has evolved into a pioneer in the /ndian -harmaceutical space

6r Reddys passion !or research had led Dr. Reddys L !"r #"r$es to ta%e up basic dru" discovery research in 1>>3, thereby becomin" the !irst pharmaceutical company in /ndia to do so 6r Reddys mission &as to provide innovative ne& medicines !or healthier lives, at a price the common man can a!!ord 6r Reddy &as also the !ounder o! 7yderabad based /nstitute o! ;i!e Sciences, a public=private partnership &ith the Kovernment o! 8ndhra -radesh !ocused on cuttin" ed"e research in ;i!e Sciences 8 humanitarian, 6r Reddys &or% in the !ield o! outcome based institutionali,ed philanthropy is le"endary 7is sustained e!!orts in this area have had a tremendous impact

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on improvin" the lives o! nearly $ million underprivile"ed people in /ndia, especially youth and children

Hith the intent to &or% closely &ith the /ndian Kovernment and !ul!ill his vision o! a poverty=!ree /ndia, 6r Reddy had set up @aandi Ioundation in 1>>? as a -ublic Charitable *rust 1peratin" in multiple states, this is one o! the bi""est social enterprises in /ndia and provides clean drin%in" &ater and mid=day meals to children and !armers Sa!e motherhood and ne&born care &ere very close to 6r Reddys heart, &hich is &hy he had !ounded @/CG Ioundation, dedicated to&ards improvin" maternal health and combatin" in!ant and child mortality

6r Reddy served as a 'ember o! the -rime 'inisters Council on *rade ( /ndustry, Kovernment o! /ndia 7e &as a Iello& o! the /ndian @ational 8cademy o! Gn"ineerin" and the Chairman o! 8ndhra -radesh /ndustrial 6evelopment Corporation (8-/6C) 7e &as also the -resident o! *he /ndian -harmaceutical 8lliance and had served as a #oard 'ember o! K8/@, S&it,erland (Klobal 8lliance !or /mproved @utrition and a #oard o! 6irector !or *# 8lliance, @e& For% (Klobal 8lliance !or *# 6ru" 6evelopment)

6r Reddy &as a recipient o! several national and international reco"nitions and ;i!etime 8chievement 8&ards /n 8pril 2011 the Kovernment o! /ndia honored him &ith -adma #hushan (the third hi"hest civilian a&ard in the country) !or his contribution to the /ndian -harmaceutical industry

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CHAPTER III MEANIN% AND IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY

31

CORPORATE SOCIAL RESPONSIBILITY

&C"r'"r #e S"($ ) Res'"*s$!$)$#y $s #+e ("*#$*,$*- ("..$#.e*# !y !,s$*ess #" !e+ /e e#+$( ))y *d ("*#r$!,#e #" e("*".$( de/e)"'.e*# 0+$)e $.'r"/$*- #+e 1, )$#y "2 )$2e "2 #+e 0"r32"r(e *d #+e$r 2 .$)$es s 0e)) s "2 #+e )"( ) ("..,*$#y *d s"($e#y # ) r-e& *he same report "ave some evidence o! the di!!erent perceptions o! &hat this should mean !rom a number o! di!!erent societies across the &orld 6e!initions as di!!erent as &CSR $s !",# ( ' ($#y !,$)d$*- 2"r s,s# $* !)e )$/e)$+""ds. I# res'e(#s (,)#,r ) d$22ere*(es *d 2$*ds #+e !,s$*ess "''"r#,*$#$es $* !,$)d$*- #+e s3$))s "2 e.')"yees4 #+e ("..,*$#y *d #+e -"/er*.e*#& !rom Khana, throu"h to &CSR $s !",# !,s$*ess -$/$*- ! (3 #" s"($e#y& !rom the -hillipines #usiness and society have been coeval since time immemorial and also have been inter= dependant *his relationship bet&een business and society is appreciated in Ri"veda also L 9Corporates should &or% li%e a honeybee, &hich ta%es the nectar o! a !lo&er &ithout the !lo&er bein" losin" its shape and !ra"rance and provides honey !or the &ellbein" o! the society : /t means that both have to &or% on a symbiosis manner !or each ones survival and success *he business history is replete &ith evidences to believe that business !lourishes only &here society thrives 1n the contrary, business dies &hen society condemns and re4ects it @o business can survive &ithout societal approval and sanction *he inter= dependant nature o! relationship bet&een the business and the society is best illustrated by the mana"ement "uru -eter 6ruc%er (1>$)) by the e+ample o! a ship and sea 7e states that the relationship bet&een business and society is 5)$3e #+e re) #$"*s+$' !e#0ee* s+$' *d

#+e se 0+$(+ e*-$rds $# *d ( rr$es $#4 0+$(+ #+re #e*s $# 0$#+ s#"r. *d s+$'0re(34 0+$(+ + s #" !e (r"ssed !,# 0+$(+ $s ye# )$e* *d d$s# *#.6 @o doubt, business has been

31

conducted primarily to earn pro!it and M or create &ealth 7o&ever, there are reasons and evidences to believe that the mindless obsession &ith pro!it ma+imi,ation at any cost carried to any e+treme has led to spurt in sordid activities in business causin" harm to both the business and society and ultimately leadin" business to !lounder and !i,,le out Gnrons -armalats, Dnion Carbide, and Horld com are to name a !e& representin" e+amples o! such business collapses #usiness history is also replete &ith e+amples that only the businesses that are conducted throu"h "ood or ri"ht practices en4oy societal sanction and survive and last !or lon" <ohnson ( <ohnson, 'aruti ;imited, Reliance /ndustries ;imited, and *ata /ron and Steel Company are such e+amples that indicate that bein" "ood in conductin" business activities proves "ood !or businesses also 7ence, there has been increasin" concern !or conductin" business in a "ood or ethical manner *hou"h there has been a spurt in research activities on business ethics or ethics in business, not much research has so !ar been conducted on &hat actually ma%es business ethics and ho& bein" ethical or "ood is "ood !or business also Corporate social responsibility (CSR, per!ormance, also called corporate responsible conscience, corporate businessM Responsible

citi,enship, social

or sustainable

#usiness) is a !orm o! corporate sel!=re"ulation inte"rated into a business model CSR policy !unctions as a built=in, sel!=re"ulatin" mechanism &hereby a business monitors and ensures its active compliance &ith the spirit o! the la&, ethical standards, and international norms /n some models, a !irm.s implementation o! CSR "oes beyond compliance and en"a"es in Nactions that appear to !urther some social "ood, beyond the interests o! the !irm and that &hich is re5uired by la& N CSR is a process &ith the aim to embrace responsibility !or the company.s actions and encoura"e a positive impact throu"h its activities on the environment, consumers, employees, communities, sta%eholders and all other members o! the public sphere &ho may also be considered as sta%eholders 31

*he term Ncorporate social responsibilityN came into common use in the late 1>E0s and early 1>C0s a!ter many multinational corporations !ormed the term sta%eholder, meanin" those on &hom an or"ani,ation.s activities have an impact /t &as used to describe corporate o&ners beyond shareholders as a result o! an in!luential boo% by R Gd&ard Ireeman, Strate"ic mana"ementL a sta%eholder approach in 1>?)

-roponents ar"ue that corporations ma%e more lon" term pro!its by operatin" &ith a perspective, &hile critics ar"ue that CSR distracts !rom the economic role o! businesses 'cHilliams and Sie"el.s article (2000) published in Strate"ic 'ana"ement <ournal, cited by over 1000 academics, compared e+istin" econometric studies o! the relationship bet&een social and !inancial per!ormance *hey concluded that the contradictory results o! previous studies reportin" positive, ne"ative, and neutral !inancial impact, &ere due to !la&ed empirical analysis 'cHilliams and Sie"el demonstrated that &hen the model is properly speci!ied2 that is, &hen you control !or investment in Research and 6evelopment, an important determinant o! !inancial per!ormance, CSR has a neutral impact on !inancial outcomes

/n his &idely=cited boo% entitled 'is"uided 3irtueL Ialse @otions o! Corporate Social Responsibility (2001) 6avid 7enderson ar"ued !orce!ully a"ainst the &ay in &hich CSR bro%e !rom traditional corporate value=settin" 7e 5uestioned the Nlo!tyN and sometimes Nunrealistic e+pectationsN in CSR

Some ar"ue that CSR is merely &indo&=dressin", or an attempt to pre=empt the role o! "overnments as a &atchdo" over po&er!ul multinational corporations 31

CSR is titled to aid an or"ani,ation.s mission as &ell as a "uide to &hat the company stands !or and &ill uphold to its consumers 6evelopment business ethics is one o! the !orms o! applied ethics that e+amines ethical principles and moral or ethical problems that can arise in a business environment /S1 2E000 is the reco"ni,ed international standard !or CSR -ublic sector or"ani,ations (the Dnited @ations !or e+ample) adhere to the triple bottom line (*#;) /t is &idely accepted that CSR adheres to similar principles but &ith no !ormal act o! le"islation *he D@ has developed the -rinciples !or Responsible /nvestment as "uidelines !or investin" entities

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CHAPTER IV MEANIN% AND IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY

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CORPORATE SOCIAL RESPONSIBILITY INITIATIVES OF Dr. REDDYs LABORATORY

Hhile .SustainabilityL *he *riple #ottom ;ine. as a term may have a contemporary rin" to it, the spirit underlyin" it has been relevant throu"h the a"es /n 1>?C, the Horld Commission on Gnvironment and 6evelopment (established by a resolution o! D@ Keneral 8ssembly) de!ined sustainability as "6evelopment &hich meets the needs o! the present &ithout compromisin" the ability o! !uture "enerations to meet their o&n needs" /t also populari,ed the use o! this term !or resources rene& ability, desired business plan and a pro"ressive &ay o! doin" thin"s 8t 6r Reddy.s, belie! is that any hi"h per!ormance sustainable or"ani,ation rests on the three pillars o! economic, social and environmental per!ormance *o be a truly sustainable or"ani,ation, in the broadest de!inition o! its terms, an or"ani,ation must per!orm &ell across all three dimensions 8s a company, they are !ully committed to the principles o! sustainability *hey see the s# 3e+")ders s s+ re+")ders, to &hom &e promise sustained economic per!ormance, #+e s"($e#y = to &hom &e promise to create positive impact throu"h our activities both business as &ell as voluntary = and !inally #+e e*/$r"*.e*#, &hich &e promise &ill be &ell protected and enriched !rom our various activities /n reco"nition o! the conviction that the prosperity o! communities is inte"ral to the success o! companies, Social /nitiatives is hi"her on the a"enda o! more companies no& than ever be!ore

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8t 6r Reddys, &e ta%e pride in the !act that our products and &hat they are intended to achieve represent the core o! Social /nitiatives O to help people lead healthier lives *he company achieves this ob4ective throu"h increased access and a!!ordability o! its "enerics, 8-/ and branded "enerics products and addressin" unmet and undeserved medical needs by innovation throu"h its Specialty and @CG businesses 8t 6r Reddys, Social /nitiatives represents an inte"ral component o! Corporate Social Responsibility *heir investments in the communities have e+tended beyond the adhoc disbursement o! charity to a planned pro"ram in capability buildin", helpin" e+tend the sporadic to the sustainable *he various or"ani,ations that &e support areL DR. REDDY FOUNDATION NAANDIFOUNDATION

DR. REDDYS FOUNDATION FOR HEALTH EDUCATION 7DRFHE8 CENTRE FOR SOCIAL INITIATIVE AND MANA%EMENT 7CSIM8

8t the company, Social /nitiatives does not 4ust cover the community, but also employees *his re=interpretation has happened !or an important reasonL society represents a mi+ o! employees and non=employees #y includin" employees in our de!inition o! Social /nitiatives, the company has demonstrated that no initiative can succeed unless i! the initiators o! the improvement do not !i"ure amon" the bene!iciaries themselves /t is this comprehensive address O employees to communities O that enhances the impact o! the companys social initiatives, stren"thenin" its case !or true sustainability

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DR. REDDY FOUNDATION

8t 6r Reddys &e believe that !or any development to be sustainable, people need to be empo&ered to support themselves in the !irst place *he company also believes that in every human bein" and or"ani,ation there is a latent need to "ive bac% to society /t is &ith this perspective that 6r Reddy.s Ioundation &as incepted by 6r J 8n4i Reddy, Chairman o! 6r Reddys ;aboratories, in 1>>E *he Ioundation acts as a social chan"e catalyst that !osters, develops and promotes initiatives at individual M "roup M or"ani,ation levels to promote sustainable human and social development #elievin" in the inherent motivation and capacity o! the human bein" !or pro"ress O "iven the appropriate and ade5uate environment = the Ioundation innovates and tries out novel concepts in pilot models that are continuously re!ined and scaled up to cover lar"er "roups o! deprived populations ;i!e Research 7ope = 6riven by this spirit, the company, led by the Chairman, 6r J 8n4i Reddy, called upon similar=minded corporates and created a ne& social plat!orm, a not=!or=pro!it development or"ani,ation that could sho&case not only to /ndia but the 31

international community as &ell, the depth o! corporate &ill in shoulderin" the responsibility o! !indin" solutions to lon"=pendin" social development problems o! the country 6r Reddys Ioundation (6RI) is a non=pro!it partner o! 6r Reddys ;aboratories and it.s interventions span t&o sectorsL

PL$/e)$+""ds9 *hrou"h a &ide array o! vocational trainin" pro"rams, 6RI addresses the issues o! employability, income "eneration and conse5uent improvement in 5uality o! li!e 8s o! no&, the pro"ram has touched :4 ;<4=== )$/e)$+""ds

P Ed,( #$"*9 6RI strives to provide various opportunities !or learnin" to those &ho have never been to school, or have dropped out o! it2 it also &or%s to improve the 5uality o! education in schools

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NAANDI FOUNDATION

@aandi Ioundation &as created throu"h this e!!ort /t is an autonomous, public trust that &or%s to"ether &ith "overnments, corporates and civil society to improve the lives o! the underprivile"ed

*o underline the company.s commitment in supportin" @aandi.s ob4ectives, 6r J 8n4i Reddy became one o! its principal !ounders, and too% on the responsibility o! its Chairmanship as &ell

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*he employees o! 6r Reddy.s too have been staunch supporters o! @aandi.s vision o! improvin" lives *he company has de!ined .corporate "ivin". by comin" !or&ard to donate unconditionally to @aandi.s social initiative pro"rams throu"h the -o&er o! 10Q

T+e P"0er "2 >=?

*he -o&er o! 10Q is a mechanism created by @aandi that allo&s everyone to do their bit !or the society, even i! it is donatin" Rs 10 every month to&ards a cause 8nd leadin" the &ay, they are proud to say, have been the company.s !actory &or%ers *hey "ive "enerously to the -o&er o! 10Q , &hich is channelised by @aandi into its education pro4ect, popularly %no&n as the .S,''"r# O,r S(+"")s. pro"ram, aimed at improvin" the 5uality o! education in over 2000 "overnment schools *o encoura"e this culture o! "ivin" sho&cased by its employees, 6r Reddy.s too ma%es a contribution to the -o&er o! 10Q that matches the contributions made by the employees

6r Reddy.s has become a model that is bein" emulated by more and more corporates, institutions, and individuals thereby enablin" @aandi to become the plat!orm that allo&s !or an inter!ace bet&een civil society and the underprivile"ed

Ior employees &ho &ant to do more, @aandi o!!ers several &indo&s o! opportunities to "ive bac% to the society *hese ran"e !rom adoptin" "overnment schools, and

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volunteerin" in them to improve 5uality education, to participatin" in tribal development pro4ects 6r Reddy.s ne& recruits inevitably "et their !irst taste o! rural /ndia, every year, throu"h an 1utbound Rural Sensitivity *rainin", that is or"anised by @aandi

8bility to "arner civil society support has propelled @aandi.s "ro&th and reach /t is the only @K1 in the country to run automated central M$dd y .e ) %itchens in urban centres = the ones at 7yderabad and 3isa%hapatnam presently cater to around 1200 "overnment schools So !ar the %itchens have supplied )$ million meals, &ithout any complaints, to the underprivile"ed that come to these schools *his tas% "ets bi""er as @aandi tar"ets to implement this model !or the children o! $ other cities in the country by 200$ 8mon" its other innovations, @aandi has enabled the revival o! dead irri"ation assets by convertin" the small !armer into a micro=entrepreneur and brin"in" &ater bac% to more than )0,000 drou"ht =hit !amilies #y creatin" sustainable and cost=e!!ective social entrepreneurship models @aandi is enablin" technolo"y trans!ers !rom *he ;a&rence #er%eley @ational ;aboratory, Cali!ornia , to brin" sa!e drin%in" &ater to /ndian villa"es 8nd in %eepin" &ith its vision, @aandi continues to create ne& development brea%throu"hs in the areas o! health, education and livelihood that are bein" replicated by "overnments across the country to impact millions o! men, &omen and children in the country

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DR. REDDYS FOUNDATION FOR HEALTH EDUCATION 7DRFHE8

6r Reddys instituted the Dr. Reddys F",*d #$"* 2"r He )#+ Ed,( #$"* 7DRFHE8 &ith a vision to be a "lobally admired provider o! healthcare education

6RI7G aims to create pro!essionals &ho &or% &ith the medical !raternity to o!!er an inte"rated, multi=disciplinary approach to "ood health

*he -ro"rams are aimed at buildin" necessary so!t s%ills &ith an ob4ective o! stren"thenin" the healthcare delivery system !or better patient care

6RI7G has a vision o! to become a "lobally admired provider o! innovative healthcare vistas by ma%in" a di!!erence to >==4=== $*d$/$d, )s in the healthcare value chain by 2012

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8t 6r Reddys, sustainability is a multi=dimensional aspiration, &hich has its roots in the very purpose o! e+istence = providin" a!!ordable medicines to people around the &orld and meetin" unmet medical needs throu"h innovation *he business, by its very nature, serves a social "ood, so &e have a !ar deeper reason than pro!its alone to drive our per!ormance

6r Reddys Ioundation !or 7ealth Gducation (6RI7G) &as instituted to stren"then the healthcare delivery system

6RI7G &or%s on 2 areas vi, ,

TRAININ% INITIATVES9 -ro"rams aimed to brin" about a trans!ormation in N-atient CareN throu"h healthcare related so!t s%ill and li!e s%ill trainin" !or all healthcare sta%eholders AWARENESS PRO%RAMS9 6isease a&areness !or corporate employees &ith an aim to preventin" li!estyle disorders

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CENTRE FOR SOCIAL INITIATIVE AND MANA%EMENT 7CSIM8

Centre !or Social /nitiative and 'ana"ement (CS/'), an /nitiative under the ae"is o! 'anava Seva 6harma Samvardhani ('S6S), is a re"istered -ublic Charitable *rust &ith 'r - @ 6evara4an as its !ounder and 'ana"in" *rustee *he 7yderabad Chapter o! CS/', started in 2002, is supported by 6r Reddy.s as CS/' !its 6r Reddy.s concept o! social sustainability throu"h enhancin" community value throu"h their pro"rammes Several social divides con!ront the /ndian society todayL their "ro&in" intensity and emer"in" ne&er ones ma%e the situation increasin"ly di!!icult

Social Hor% education in the country does not prepare students !or such a challen"e = there!ore, the need !or pro!essional and entrepreneurial talent

Compassionate individuals, &ho pitch in &ith noble intentions, have limitations in !indin" brea%throu"h solutions and thus add to the list o! non=per!ormin" and under= per!ormin" @K1s *he environment thus presents an opportunity !or individuals &ith initiative and &ho can thin% o! bold and creative solutions to ma%e a si"ni!icant di!!erence throu"h concrete actions *he challen"e is to discover and mould Social Gntrepreneurs, &ho can "enerate radical, path=brea%in" solutions to social divides, &ho can ta%e reasonable ris%s and persistently &or% to&ards creatin" a lastin" social impact Similarly, small and medium 31

tier non="overnmental or"ani,ations (@K1s), &ith compassionate individuals as leaders, also need or"ani,ational s%ills to rechar"e themselves, re!ocus priorities and become impact=driven *hey need a lon"=term approach to sustenance, creatively plan a revenue model and levera"e hidden resources includin" volunteer talent

Ce*#re 2"r S"($ ) I*$#$ #$/e *d M * -e.e*# 7CSIM8 is a learnin" center that

Gnrolls, discovers and shapes Social Gntrepreneurs Supports the process o! social entrepreneurship in small and medium @K1s -rovides a volunteer constituency to Social Gntrepreneurs and @K1s

8t CS/', the core activities are L S"($ ) E*#re're*e,rs+$' I*$#$ #$/e that is %no&led"e and involvement based and o!!ers learnin" in Social Gntrepreneurship *he pro"rams areL

1ne year -K diploma in Social /nitiative and 'ana"ement, Iour month part=time pro"ram in Social Gntrepreneurship 1utloo%, *rainin" !or volunteers &ho &ish to partner &ith Social Gntrepreneurs, Gntrepreneurship ;earnin" club as an interactive net&or%in" plat!orm, /ncubation service to desi"n and deploy impact based social chan"e initiatives /nternship pro"ram !or the socially conscious Customi,ed mana"ement s%ill development pro"rams !or @K1s

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