CORPORATE SOCIAL RESPONSIBILITY

Businesses today have realised that, in order to continue thriving, they have to adopt a more
holistic and inclusive business model which has a direct correlation with business performance.
This includes a system of triple bottom-line reporting - economic, social and environmental - and
a focus on transparency and accountability. Companies are now expected to discharge their
stakeholder responsibilities and societal obligations, along with their shareholder-wealth
maximisation goal.
Even much before the issue became a global concern, India was aware of corporate social
responsibility (CSR), due to the efforts of organisations such as the Tata Group.
Corporate companies like ITC have made farmer development a vital part of its business
strategy, and made major efforts to improve the livelihood standards of rural communities.
Unilever is using micro enterprises to strategically augment the penetration of consumer products
in rural markets. IT companies like TCS and Wipro have developed software to help teachers
and children in schools across India to further the cause of education. The adult literacy software
has been a significant factor in reducing illiteracy in remote communities. Banks and insurance
companies are targeting migrant labourers and street vendors to help them through micro-credits
and related schemes.
In June 2008, a survey was carried out by TNS India (a research organization) and the Times
Foundation with the aim of providing an understanding of the role of corporations in CSR. The
findings revealed that over 90 per cent of all major Indian organizations surveyed were involved
in CSR initiatives. In fact, the private sector was more involved in CSR activities than the public
and government sectors. The leading areas that corporations were involved in were livelihood
promotion, education, health, environment, and women's empowerment. Most of CSR ventures
were done as internal projects while a small proportion were as direct financial support to
voluntary organizations or communities.
In a survey carried out by the Asian Governance Association, which ranks the top 10 Asian
countries on corporate governance parameters, India has consistently ranked among the top three
along with Singapore and Hong Kong, for the last eight years.
In another study undertaken by automotive research company, TNS Automotive, India has been
ranked second in global corporate social responsibility. State-owned Bharat Petroleum and
Maruti Udyog were ranked as the best companies in India. Bharat Petroleum and Maruti Udyog
came on top with 134 points each, followed by Tata Motors (133) and Hero Honda (131). The
study was based on a public goodwill index and India received 119 points in the index against a
global average of 100. Thailand was at the top slot with 124 points.
The Indian corporate sector spent US$ 6.31 billion on social expenditure during 2007-08, up
from US$ 3.68 billion spent during the previous fiscal. The Steel Authority of India Ltd (SAIL),
the country's largest steel company, spent US$ 21.05 million on CSR last year; Tata Steel Ltd,
(which runs a 850-bed hospital and rural projects in 800 villages around Jamshedpur), spends
about US$ 31.58 million as part of its annual revenue expenditure.
Now there are plans to also introduce CSR in the small and medium enterprises (SME) sector to
increase its reach in remote areas.
CSR Initiatives and Green Measures
India Inc has joined hands to fine-tune all its activities falling under CSR. For this, it has set up a
global platform to showcase all the work done by Indian firms. Confederation of Indian Industry
(CII) and the TVS Group have collaborated to form the CII-TVS Centre of Excellence for
Responsive Corporate Citizenship. The outfit, based in Chennai, will provide consultancy
services and technical assistance on social development and CSR.
CII's 'Mission on Sustainable Growth' has set up a code which was formulated in 2006. It
provides consultancy services and technical assistance on social development and CSR. The
mission's aims are to promote the reduction of excessive consumption of natural resources and
emission of greenhouse gases. The code had started with 23 new signatories and the total number
of code signatories had gone up to 102, by September 2008.
Many large corporate houses are taking up projects along with the help of the government
which are 'green' to promote the cause of sustainable development.
Coca-Cola India has started with a corpus of US$ 10 million for its CSR activities in
2008. It has undertaken US$ 2530 million a year project on water conservation, and the
project "Elixir of life" to provide drinking water to nearly 30,000 school children. Coca-
Cola India won the 'Golden Peacock Global Award for Corporate Social Responsibility
2008' for these initiatives.
ArcelorMittal will spend about US$ 500 million as part of its CSR initiatives in
Jharkhand and Orissa.
BHEL has joined hands with a UN body 'Global Compact' (The United Nation's Global
Compact is a partnership between the UN, the business community, international labour
bodies and non-government organisations (NGOs) to partner with global corporate
houses for greater focus on corporate social responsibility.
Global Compact, in association with FICCI, is also organising the first ever national
convention on 'Excellence in Corporate Citizenship and Global Compact'.
Tata Motors and space agency ISRO are likely to launch the prototype of the world's
cleanest vehicle that will run on hydrogen and leave behind nothing more than a trail of
water vapour.
Bajaj Auto, Ashok Leyland, Tata Motors, Mahindra & Mahindra and Eicher Motors have
come together to develop hydrogen-blended compressed natural gas (HCNG)-run
vehicles to tackle the problem of rising pollution.
Pepsico India has signed the CII-Code for Ecologically Sustainable Business Growth
recently, and in so doing it has committed to decrease the consumption of natural
resources and promote ecologically sustainable growth in the group. Its water
conservation initiative has resulted in saving over 2.4 billion litres of water annually,
bringing down the consumption by 40 per cent since 2005. The effluent discharge has
also decreased by 60 per cent. Likewise, the company has brought down the generation of
sludge in effluent treatment plants (with over 25 per cent reduction in one year alone)
through the use of bio-enzymes. At the community level, the waste-to-wealth initiative
has developed zero solid waste centres that helps more than 2, 00,000 community
members all over the country.
Reliance Power (R-Power) is planning an investment of over US$ 12.63 billion for
renewable and alternative energy resources such as hydroelectric, wind, solar and fuel
cell-based power. The company is planning to generate about 5,000 MW from
hydroelectric energy and most of the projects would come up in water-abundant north-
eastern states.
The Indian paints industry too is making its products more environmentally friendly by
opting for water-based paints and making it carcinogen-free.
The heating, ventilation, air-conditioning and refrigeration (HVAC) industry is working
to get rid of its 'global warmer' stigma through greater use of gases with zero ozone
depletion potential (zero ODP).
Sustainable Technologies and Environmental Projects Ltd (STEPS) is planning to start a
project to change plastic, organic and electronic waste into petroleum without the usual
harmful residue.
Pharmaceuticals Company Jubilant Organosys Ltd runs an anti-tuberculosis programme
with the government of Uttar Pradesh.
Rural Development
Rural development is attracting major CSR initiatives from various corporates.
Airtel has tied up with Indian Farmers Fertiliser Cooperative Limited (IFFCO) to reach
farmers directly. Farmers will receive free voice messages twice daily on farming
techniques, weather forecasts, dairy farming, rural health initiatives, fertilizer availability,
loan information and market rates. Additionally, farmers can also call a dedicated
helpline, manned by experts from various fields, to get answers to their queries.
Reliance Communications has introduced low tariff initiative like the Grameen
Programme for rural subscribers.
SREI Sahaj e-Village Ltd will set up 25,000 IT kiosks to be known as common service
centres (CSC) across West Bengal, Bihar, Orissa, Assam, Uttar Pradesh and Tamil Nadu,
by 2010.
ITC's e-Chapual has been a great developmental initiative which has also added value to
its own agricultural products. It comprises improving the lives of farmers and villagers.
HDFC has started a 'village adoption' scheme to improve the investment climate in Indian
villages.
Mahindra Shubhlabh, the agricultural business arm of Mahindra & Mahindra, aims to use
especially cultured seeds to improve contract-farming productivity.
DCM Shriram provides information services through its chain of Krishi Vikas Kendras,
which have now evolved into Hariyali Kisan Bazaars.
Hindustan Petroleum has started community kitchen programmes in some Indian
villages.
ICICI Bank has launched an ambitious rural banking and agribusiness initiative.
The Byrraju Foundation's GramIT programme has generated a rural BPO model. It aims
to employ rural people in the ITES (IT-enabled services) industry, and to create profit for
the entrepreneurs or cooperatives running the BPOs.