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Summer Internship Report On

Corporate social responsibility


From

Belong in For the partial fulfillment of

Post Graduate Diploma in Management (PGDM)


From

APPROVED BY

AICTE, DELHI
2009-2011
PROJECT INCHARGE & GUIDED BY: SUBMITTED BY:

Prof.Monika Kumari

Jitendra Tamrakar PGDM-4


th

Trimester

CERTIFICATE BY INTERNAL GUIDE


This to certify that the report of the project submitted is the outcome of the project work entitled CSR Initiatives carried out by Jitendra Tamrakar bearing Unique ID No.:

0908032 carried by under my guidance and supervision for the award of Post Graduate Diploma in Management of Disha School of Management, AICTE approved, Ministry of HRD Government of India Raipur (C.G), India. To the best of the my knowledge the report i) ii) iii) Embodies the work of the candidate himself, Has duly been completed, Fulfils the requirement of the ordinance relating to the PGDM degree of the Institute and iv) Is up to the desired standard for the purpose of which is submitted.

_______________________ (Signature of the Guide) Name: Prof. Monika Kumari Designation: Department:
Disha Education Society, Satya Vihar , Raipur

The project work as mentioned above is hereby being recommended and forwarded for examination and evaluation.

SELF-CERTICATE This is to certify that we the following students of PGDM 3 rd trimester at Disha Education Society, Satya Vihar , Raipur . Affiliated to AICTE, Delhi name carried out the work of report title Corporate Social Responsibility. Own for the completion of BCA course. This is future to certify that this project work has been submitted anywhere else for the awarded of any examinations.

NAME: - Jitendra Tamrakar

Roll No.- 0908032

Belong in
Plant & Registered Office 428/2, Phase-I, Industrial Area, Siltara - 493111 Dist. Raipur, Chhattisgarh, India

DISSERTION APPORVAL CERTIFICATE


This is to certify that the project entitled

"Corporate Social Responsibility" "Post Graduation Diploma in

submitted in partial fulfillment of the degree of

Management" to AICTE, Delhi through Disha Education Society, Satya Vihar , Raipur
done by

Jitendra Tamrakar,

Roll No.0908032. is an authentic

work carried out by her at our organization guidance, from

,Siltara, Raipur

under my

09-04-2010

to

26-05-2010.

The matter embodied in this project work

has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the student

Signature of the Director

Name: - Jitendra Tamrakar Class: - PGDM 3rd Trimester

Date:-

College: - Disha Education Society, Satya Vihar , Raipur

ACKNOWLEDGEMENT ACKNOWLEDGEMENT
I feel very privileged to express our profound sense of our respect and gratitude to our project guide Monika Kumari faculty of Disha School of Management. All faculty incredible help and valuable suggestion efforts and constructive guidance made the project an interesting task, their optimistic attitude, guidance of appreciation was such as to give impetus to our thoughts and understanding making us believe that all that was of my own efforts for which for I well ever our remain indebted to them. I shall also like to thanks my Madam assigning and supporting us.

Prof. Monika Kumari

of our college

Finally I would like to thank my all teachers for their cooperation to complete this project.

Submitted By

JITENDRA TAMRAKAR

CERTIFICATE BY THE EXAMINERS

Corporate Social Responsibility


Submitted by

Jitendra Tamrakar

Roll No.0908032

Has been examined by the undersigned as a part of the examination for the award of Post Graduate Diploma in Management of Disha School of Management, AICTE approved, Ministry of HRD Government of India Raipur (C.G), India

________________ ________________ Name & Signature of Internal Examiner Date:

__________________ __________________ Name & Signature of External Examiner Date:

Forwarded by

Academic Head

Department of Management

PREFACE
This aim of project is to enhance CSR service in various organizations. We have developed a fairly reliable management solution to tackle the problems encountered organizations. This project is a humble attempt bring into light or to show easy it is move to towards

INDEX

Sr. Chapters No. 1. 2. Introduction Objectives a) Vision b) Bharti Televenture 3. 4. 5. Airtel Broadband Airtel Services Case study of black Barry Handset a)Product profile 6. 7. 8. 9. 10. Research methodology a)Graphical Representation Conclusion Recommendation Bibliography Questionnaire

Page No.

HISTORY OF COMPANY
Godavari Power & Ispat Ltd. (GPIL) a public Ltd. Co., formally Ispat Godawari Ltd (IGL), belonging to HIRA Group of Industries, Raipur, C.G. was incorporated in 1999 to set up and integrated steel plant with captive power generation under the guidance of visionary leadership of Shri B. L. Agrawal, Managing Director, a techno commercial person (Qualified Engineer) having proven wide commissioning & running or Cement Plant, Sponge Iron Plant etc., experience in backed by a of a

dedicated team of professionally qualified personnel under the stewardship listed co. with the nation stock exchange and Bombay Stock Exchange.

board of Directors having expertise in Engineering finance administration GPIL is

GPIL has come a long way since it started is operation in Raipur, Chhattisgarh as a sponge iron manufacturer in the year 2001. Over the last few years, the company has scaled up its capacity five fold and is today the third largest producer of coal based sponge iron in India and is one of the largest players in the mild steel wires segment. Not only has the company increased its scale during the aforesaid period, it has also moved up the value chain. The Company crossed Rs 1000 crore marks in turnover. 2007-08 has seen an all around growth in the performance of the company, backed by higher volumes of production and better price realizations. The company has achieved consolidated revenue of Rs. 936 crore during the year under review as compared to revenue of Rs. 551 crore during the previous year, a growth of 70% .The consolidated net profit after tax grew by 82% to Rs. 99 crore as against Rs. 54 crore during the previous year. Considering the fact that just two years ago, when we concluded our initial public offering our revenues were just 275 crore and net profit of Rs. 22 crore, the company has within a short span of time achieved significant growth in volume of business, revenue, profits and net worth and

achieved annual compounded growth of over 80% in terms of revenue and profitability last during two years. The growth drivers are still on with further plans to improve the operating margins by entering into backward integration through mining of iron ore and coal and venturing into value added manufacturing facilities by setting up iron palletisation plant-a process to convert iron ore fines into pellets which can be used as a raw material for making sponge iron as replacement of sized iron ore. GPIL has been granted mining lease for 2 iron ore mines at Ari Dongri and Boria Tibu in Chattisgarh. This would be on an area of 216 hectare & prospecting license for another iron ore mines with an area of 754 hectare in Chattisgarh. GPIL has also been granted mining rights in consortium for mining of coal in Chattisgarh and the coal mines are being developed through special purpose Joint venture Company which has also achieved significant progress towards getting various regulatory approvals and coal mining operations are expected to commence some time in FY 2011. To insulate against the hazards of price fluctuation due to Govt. fiscal policies, uncertainty of supplies ensuring energy securities and of all basic & primary inputs GPIL carried out backward integration by entering into mining of coal/Iron ore & generation of captive power and forward integration by acquiring wise drawing plants (RRL), promoting 10% subsidiary Co. for venturing into generating of merchant power, inverting in J. V. Companies for development of coalmines and setting up railway siding for captive use. Consistent with the vision, GPIL, continually endeavors in mastering the

techniques for improving the factors affecting there mission with environment, customers, benefits to society, public Image, philosophy & values, profitability & growth; pursuing innovation, Creativity, Diversity, environment excellence and change. We believe in blue ocean technology i.e., a sound strategy model to put technology to use in a commercial way inducting low cost process planning, preparing new technology road map benchmarking of process with worlds best to ensure desired outputs from the inputs.

Vision of the Company-To

become one of the most competitive

integrated steel plants with diversified products, specializing in particular to be reckoned with as a dominant leader in wire segment contributing substantially in meeting consumers needs, creating shareholders value and spearheading to be a leader in global wire segment market, pari pasu with powering Indias growth to serve community and the nation in the decades to come.

Mission of the Company- We

exist to create, make and market useful

products and services (Power) to satisfy the needs of our customer throughout the world. The means envisaged to achieve this are high technology and productivity, consistent with modern management practices, we believe in honesty and integrity apart from profitability which is a driving force for economic growth.

Business units1.SID-In
India the steel sector is growing at a robust rate with significant

increases in both production and consumption. Crude steel production grew at more than 10% annually from 34.71 million tones in 2002-03 to 50.82 million tones in 2006-07. This growth was driven by both capacity expansion and by capacity utilization. During 2006 India emerged as 5th largest crude steel producing country in the world as against 8th position three years back. India the worlds largest producer of direct reduced iron (DRI) or sponge iron is also expected to make lead in the near future. GPIL also has its coal-based sponge iron manufacturing facility. Backward integration has given GPIL the distinction of being one of the sponge iron manufacturer with its own captive raw material resources and power generation. This has enabled GPIL to monitor both price and quality of its products. At sponge iron plant at GPIL the iron ore and dolomite, in predetermined quantities, are taken to a common belt conveyor through weigh feeder to the pre-

heater forming an adjunct to the rotary kiln for sponge iron manufacture where coal acts as reluctant. The sized coal through a weight feeder is led directly to main rotary kiln and it is not pre-heated. The waste hot gases emanating from the sponge iron kilns contain substantial heat values and combustibles along with carbon particles, unused CO etc. It is possible to exploit gainfully such heat contained in fuel gases to preheat the charge before it moves to the kiln proper and subsequently utilize the hot gases to produce steam to generate power in a suitably designed Waste Heat Recovery System (WHRS).

2.Power Plant-An effort to achieve higher productivity and increased energy


efficiency, the company established its own power plant division. The division started Operations from September 2002 with a 35 tonnes waste heat recovery based Captive power plant (CPP). A year later it undertook expansion with a 70 tonnes coal based power plant utilizing coal fines and coal rejects from the sponge iron process as fuel. Again in the year Jan 2006 capacity was further enhanced with the help of 56 tonnes waste heat recovery boiler increasing the generation capacity to 30 mw. And finally generation capacity was further enhanced by 25 MW in Apr 2007 with the addition of two 51 tonnes boiler taking the total generation capacity to 53 mw. The electricity produced is used to partially meet the power requirement of GPIL plant itself and the surplus power is exported through Chattisgrah State Electricity board (CSEB) transmission and distribution (T&D) lines to meet the power requirement. The net result is a reduction in electricity demand from the Chattisgrah state grid which is a part of the Western regional grid and hence reducing GHG emission.

3.SMS-

Steel making is the process of selective oxidation of impurities present

in the charge material (Hot metal/Scrap/DRI) in the presence of suitable fluxes in the Steel Melting Shops (SMS). The immediate hot molten steel product from Steel Melting Shop (LD Converter/Electric Arc Furnace/Electric Induction Furnace/Energy Optimizing Furnace). It is further cast into Ingots/Semis. The by-product of SMS is SMS slag.

AT GPIL SMS capacity is 4,00,000 TPA and its primary product is billets. A major portion of GPILs steel billets production is sold to its subsidiaries & associate companies like R.R. ISPAT AND HIRA STEEL for conversion into wire rods. Steel billets after captively used are sold in the open market for sales.

4.Ferro alloys-

Ferro alloy division of Godawari Power & Ispat is one of the

leading manufacturers of Ferro alloys. We are producing around 13000 mt of Ferro alloys per annum and having a vision to achieve around 23000 mt. of production. This Ferro alloys is an essential component in the manufacturing of various grades of steels. We are having 9MVA electric submerged arc furnace, of production capacity 50 MT per day on full load operation. The entire raw material feeding system is atomized for every two hours. We are tapping the molten metal from furnace bath & it is a continuous process. The tapped molten metal is collected in sand beds & after sufficient cooling the metal is lifted & braked in different sizes like 10x100, 10x150 etc as per the customer requirement. (1)High Carbon Ferro Manganese Mn - 68-70% Fe Si CP22-24% 1.5% Max. 6.0-6.5% 0-35%Max 30-32%

MnO -

SiO2- 28-30%

(2)

Medium Carbon Ferro ManganeseMnFeSiCP68-70% 22-24% 2-2.5%Max. 4.5-5% Max 0-35%Max

5.WIRE DRAWING UNIT- GPIL makes mild steel wires or HB wires


through cold drawing process using steel wire rod, purchased from subsidiary company as a raw material. Wire Rod is firstly D-scaled with the help of Double plain descalert rid of mild scale. Then the cleaned wire rod is passed through the different number of dies & druman , average reduction and required size achieved and this wire is taken in bundle shape of appropriate casting.

GPIL along its subsidiary and associate companies is among the largest producers of mild steel wires in the country. Its annual capacity is 1.2 lac metric tonnes.

6.Oxygen Gas Division-Oxygen

generating systems units plants are

suitable for a large number of industrial applications. Oxygen is an important ingredient that is required in large volume in many applications. At GPIL Oxygen gas is captively used for the steel manufacturing process. This meets the entire oxygen requirement for GPIL for both iron and steel making. The surplus is than sold. The total capacity of this division at GPIL is 10, 80,000 cu.m. per annum.

Steel wires find application in the infrastructure sector, mainly in construction; railways, power transmission etc. Binding wire & Nails wire are used in construction industry & barbed wire in fencing.

Policy of the HIRA GROUP1 (c) (i) ENVIRONMENTAL POLICY GODAWARI POWER AND ISPAT LTD. a unit of Hira group of Industries is committed to conduct business with strong environmental conscience towards community, customer and employees by Conserving natural resources. Executing Clean Development Mechanism (CDM) project. Adopting and promoting industry best practices to improve our environmental performance. Continuous monitoring and protecting air, water & soil. Complying with all relevant legislation & regulation on Environmental protection. Promoting transformation of solid waste into more value added product.

Applying stringent control to reduce generation of Hazardous waste. Accelerating the forestation & water harvesting. To conduct environment awareness training program through experts.

1 (c) (ii) Occupational health & Safety Policy

GPIL is committed to ensure Occupational Health & safety of all the employees and all agencies entering its premises. The company has declared its Occupational Health & safety policy. All the divisional heads are responsible to implement the policy in their respective divisions. In order to coordinate all safety activities the management has established a full fledge department for this. Organizational health & safety department undertakes a number of educational and promotional activities to promote health & safety. The company has also considered the importance of workers participation in Organizational health & safety and has formulated a committee to help management for promoting it. Safety training programmes are being regularly conducted to make each & every employee aware of importance of Organizational Health & safety. As per the need specific programmes are conducted to build up competencies & skill of all categories of employee whose performance impact organizational health & safety. Monthly safety gate meeting is conducted to communicate and inform employees about OH & S activities. Regular health check up of all employees is being done by Medical officers & preventive and corrective actions are taken. Godawari Power & Ispat Ltd., a unit of HIRA Group of industries is committed to manage all its activities To ensure health, safety environment & compliance with all applicable OH & S legislation and with other requirements to which the organization subscribes. Arrange organizational setup to carry out the policy effectively. Make sincere efforts to identify Hazards Assess and control associated Risks to practicable level. Arrange involvement of workers (Including contractor, contract labor and other agencies entering the factory premises)

Consider

health

and

safety

performance

of

individuals

for

career

advancement. Periodical use of techniques and methods such on safety Audit etc. to enhance status on Health, safety and Environment. Integrate safety in all decisions including purchase of plant, Equipment, machinery and material as well as selection and placement of personnel. Arrange for information, education and training of employees at all levels. Ensure continual improvement in OH & S performance.

Round the year a number of safety promotional activities are carried out. Some of them are:1. Celebration of National Safety day. 2. Fire services day 3. World environment day. Safety Competition such as poster, slogan is organized and displayed at conspicuous locations in the plant. HR Policy

To meet challenging demands of the Global business environment & aspirations of the Company to grow within India & beyond, the focus of our HR Strategy is to develop business leaders for tomorrow.

Align our HR policies with our strategy of being a technology savvy, customer focused & cost competitive Company & foster a climate of creativity, innovation and enthusiasm. Our HR policies are to: Attract and retain the best talent; Embellish and enhance their capabilities through training ; Motivate them to contribute their best ;

Reward & Recognize to develop a high performing organisation; Provide opportunities for growth and development; Create, nourish and maintain an extremely open, congenial, and receptive work environment;

Provide leadership that is not only inspirational, but to create synergies which lead to a team output.

Role of HR is to: Shift from support group to strategic partner in business operations. Spend more time and effort understanding the business environment and the key strategic issues faced by the Company. Develop Global Managers for tomorrow to ensure the companys role as a global player. Build performance measures to ensure achievements of business objectives. Developing professional attitude, approach & develop required competencies. Inculcate a spirit of learning and enjoying challenges. Provide job contentment through empowerment, accountability and responsibility. Demonstrate fairness, equality of opportunity and respect to all.

Board of DirectorsThe Board of Directors has a combination of Executive and Non-Executive Directors. The Board comprises of five Whole-time Directors (the Managing Director and four Executive Directors) and six Non-executive Directors. Four of the Nonexecutive Directors are Independent Directors. Accordingly, the Composition of the Board is in conformity with the Listing Agreement. Except the Managing Director, all other Directors are liable to retire by rotation as per the provisions of the Companies Act, 1956. The names and categories of the Director on the Board and also the number of Directorships and Committee Memberships held by them during 2007-08 in other Companies are as under:

Mr.
Chairman Independent Director

G.B.

Desai

Shri G.B. Desai aged 81 years, has to his credit wide experience in the field of capital markets where he is dealing for over three decades. He is Ex President of Bombay Stock Exchange. He holds directorship of Axis Capital Markets India Limited and Tracom Stock Brokers Private Limited.

Mr.
Vice Chairman, Non Executive Director

O.P.

Agrawal

Shri O.P. Agrawal, son of late R.R. Agrawal, aged 56 years is a Commerce Graduate. He has vast Industrial Experience of Setting up of Ferro Alloys and Power Plants. He serves on the Boards of Hira Power & Steels Limited, Hira Global Limited, Hira Global Marketing Limited, Hira Global Alloys Limited & Hira Power and Alloys Limited.

Mr.
Managing Director

B.

L.

Agrawal

An Electronic Engineer, he is a first generation entrepreneur. While his family concentrated on its traditional trading business, it was his entrepreneurial spirit that laid the foundation of GPIL and the entry of the Agrawal family into the metals business.

Mr.
Executive Director Projects

Dinesh

Agrawal

Associated with GPIL for over 9 years, he is an Electrical Engineer and has been associated with the companys Ferro alloys and steel rolling units in the past. He is currently overseeing the setting up of the captive power plant.

Mr.
Executive Director - Operations

Siddharth

Agrawal

Mr. Siddarth Agrawal, son of Mr. B.L. Agrawal, is the Executive director of the Company and looking after the project implementation, procurement of raw material, Plant maintenance, Production activities and marketing of finished goods of the Company. He has hands-on experience in the Steel Industry with expertise in Sponge Iron, Steel Melting and Power generation. His rich experience has stood him at comparable level & put him to up scales on growth ladder.

Mr.
Director Finance

Dinesh

Gandhi

A Chartered Accountant and Company Secretary by qualification, he brings to the table his two decades of experience in the areas of accounts, finance, project planning and financing. A dynamic financial analyst, his competence strategically directs the company.

Shri
Director

Vinod

Pillai

Shri Vinod Pillai, 41, is a commerce graduate with high energy and enthusiasm. He serves on the Board of M/s Hira Cement Limited. He has been associated with Hira Group of Industries since 1989. He has rich experience in Sales, Administration, Liaisoning, Logistics, and has played a vital role in commissioning of new projects of Hira Group of Industries.

Mr.
Independent Director

Shashi

Kumar

Shri Shashi Kumar, aged 61 years, having about 38 years of rich experience in various fields, is a B.Sc. (Hons.) graduated in Mining Engineering form Indian School of Mines, Dhanbad and obtained his 2nd class Mine Managers Certificate of competency (in 1969) and 1st class Mine class Mine Managers Certificate of Competency (in 1970).

Since retirement from Coal India Limited Shri Shashi Kumar has been working as Advisor (Coal) to NTPC Ltd. IFFCO and Chhattisgarh Power Limited (a joint venture of IFFCO and the state of Chhattisgarh represented through CSEB).

Mr.
Independent Director

Biswajit

Choudhari

Shri Biswajit Choudhari, B.Tec ( Hons), FICWA, aged 65 years, has over 44 years of experience in Engineering, Banking, Finance and Management. Shri Biswajit Choudhari graduated as a Mechanical Engineer from IIT, Kharagpur in 1963 is also a Fellow Member of ICWAI and Indian institute of Banking and Finance.

He acted as Director and Member of various Boards and Councils .He is currently an independent director on the Board of Bihar Caustic & Chemicals Limited, Orind Exports Limited, and Bengal Sunny Rock Estate Housing Development Company Limited.

Mr.
Independent Director

B.

N.

Ojha

Shri B.N. Ojha aged 64 years, is Bachelor of Electrical Engineering from BIT Sindari. He served NTPC in various capacities till 2003. He is presently on the Board of various reputed companies like Nuclear Power Corporation, (Govt. of India Undertaking), Regional Electricity Boards, Northern Coal Fields Limited and Damodar Valley Corporation and he is holding Chairmanship in Bhilai Electric Supply Limited and NSPCL. Presently he is also a member of the Export Committee, Department of Atomic Energy, Govt. of India.

Mr.
Non Executive Director

N.

P.

Agrawal

Shri Narayan Prasad Agrawal, son of late R.R. Agrawal, aged 49 years is a Commerce Graduate. He is also having vast Industrial Experience of setting up of Ferro Alloys and Power Plants. He serves on the Boards of Hira Ferro Alloys Limited and Hira Power and Alloys Limited.

Achievement-

Godawari Power & Ispat Ltd. have been awarded Integrated Management System Certificate for the following standards:

CSR Policy of HIRA GROUPCSR is the acknowledgement by companies that they should be accountable not only for their financial performance, but for the impact of their activities on society and/or the environment. Discussions surrounding the concept are still at an evolutionary stage. However, the principles of CSR have long been part of business strategy CSR demands that businesses manage the economic, social and environmental impacts of their operations to maximize the benefits and minimize the downsides. Key CSR issues include governance, responsible sourcing, eco-efficiency, environmental management, stakeholder engagement, labor standards, employee and community relations, social equity and human rights. CSR is not only about fulfilling a duty to society; it can also bring competitive advantage. Through an effective CSR programme, GPIL will:

improve their access to capital enhance their brand image increase sales attract, retain, motivate and develop employees

sharpen decision-making improve risk management

Policy on CSR

INTRODUCTION OF CSR
A growing body of evidence asserts that corporations can do well by doing good. Well-known companies have already proven that they can differentiate their brands and reputations, as well as their products and services, if they take responsibility for the well-being of the societies and environments in which they operate. These companies are practicing Corporate Social Responsibility (CSR) in a manner that generates significant a return to their Businesses. CSR is a container concept which encompasses many different ecological, social and economic issues. In order to give a more specific interpretation to the concept of CSR a platform of Dutch NGOs has composed a so-called CSR Frame of Reference. Aim of this framework is to give companies a coherent overview of what NGOs define as CSR. The Frame of Reference is mainly based on international treaties, guidelines and instruments enjoying broad international support that are relevant for business, such as human rights, labour rights, environmental protection, consumer protection, socio-economic development, corruption and other aspects of CSR. It also includes some fundamental operational aspects of CSR like supply chain responsibility, stakeholder involvement, transparency and reporting and independent verification

Why has CSR become important?


In the flat world, with lengthy global supply chains, the balance of power between global companies and the individual communities in which they operate is tilting more and more in favor of the companies. As such these companies are going to command more power, not only to create value but also to transmit values, than any other institution on the planet.

Sustainable development: United Nations (UN) studies and many others have underlined the fact that humankind is using natural resources at a faster rate than they are being replaced. If this continues, future generations will not have the resources they need for their development. In this sense, much of current development is unsustainableit cant be continued for both practical and moral reasons. Related issues include the need for greater attention to poverty alleviation and respect for human rights. CSR is an entry point for understanding sustainable development issues and responding to them in a firms business strategy. Globalization: With its attendant focus on cross-border trade, multinational enterprises and global supply chainseconomic globalization is increasingly raising CSR concerns related to human resource management practices, environmental protection, and health and safety, among other things.

CSR can play a vital role in detecting how business impacts labor conditions, local communities and economies, and what steps can be taken to ensure business helps to maintain and build the public good. This can be especially important for export-oriented firms in emerging economies. Governance: Governments and intergovernmental bodies, such as the UN,the Organization for Economic Co-operation and Development (OECD) and the International Labor Organization (ILO) have developed various compacts, declarations, guidelines, principles and other instruments that outline norms for what they consider to be acceptable business conduct. CSR instruments often reflect internationally-agreed goals and laws regarding human rights, the environment and anti-corruption. Corporate sector impact: The sheer size and number of corporations, and their potential to impact political, social and environmental systems relative to governments and civil society, raise questions about influence and accountability. Even small and medium size enterprises (SMEs), which collectively represent the largest single employer, have a significant impact. Companies are global ambassadors of change and values. How they behave is becoming a matter of increasing interest and importance. Communications: Advances in communications technology, such as the Internet and mobile phones, are making it easier to track and discuss corporate activities. Internally, this can facilitate management, reporting and change. Externally, NGOs, the media and others can quickly assess and profile business practices they view as either problematic or exemplary. In the CSR context, modern communications technology offers opportunities to improve dialogue and partnerships. Finance: 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. A sound CSR approach can help build share value, lower the cost of capital, and ensure better responsiveness to markets. Ethics: A number of serious and high-profile breaches of corporate ethics resulting in damage to employees, shareholders, communities or the environmentas well as share pricehave contributed to elevated public mistrust of corporations. A CSR approach can help improve corporate governance, transparency, accountability and ethical standards

What should be important in CSR ?


1. he Environment and Climate Change
By far the greatest challenge facing business is going to relate to the environment. The emphasis in the future is centred around climate change and the need to develop climate change strategies and reduce carbon emissions. This means starting with carbonauditing and then putting in place strategies for reduction in climate change impacts, mitigation and adaptation. Water shortages and water contamination be high on the agenda. The new emphasis on the environment will also require companies to look hard at the sourcing of raw materials, waste management, the management of toxic substances, health impacts of environmental degradation and the management of biodiversity.

2. Labour Rights as Human Rights


Issues associated with the ubiquitous sweatshop will not go away. Indeed the issues associated with labour will be heightened. This will apply to a companys own employment practices as well as to workers along the supply chain. There is likely to be more of an emphasis on labour rights as human rights. This means the recognition that workers have fundamental human rights and must be treated with respect rather than mere factors of production.

3. Transparency and Accountability


An increased emphasis on transparency will see a move away from the glossy reports that only reveal the good things about a companys activities towards true accountability. Responsibility might be about doing the right thing but accountability means proving that you are being responsible and this will require a whole new approach to revealing the positive and negative aspects of doing business. Those companies that are unable to disclose an accurate account of their activities are going to lose trust and shareholder value.

4. The Institutionalization of CSR


We will see a growing institutionalization of CSR. We have already seen a number of governments in the region develop new laws, standards and guidelines that force or encourage businesses to take on CSR activities. But this is likely to be extended as other institutions such as stock exchanges and accountancy bodies begin to increase the CSR requirements of their members. The much awaited ISO26000 will be a further institutionalization of CSR if it comes to be seen as setting minimum standards for the activities of companies.

5. Stakeholder Engagement
There will be an increased emphasis on stakeholder engagement. Companies should build governance structures and decision-making processes with stakeholders in mind. This means finding out what stakeholders views are about issues and allowing that to influence decisions being made at the corporate level. It also means developing much more sophisticated modes of communication with a broad range of stakeholders and embedding that into the Governance of the organization.

6. The Battle For Talent

A battle for talent is going to be the big human resource issue over the next ten years. Recruiting and retaining the human resources best able to deliver quality work is already a problem and likely to become an even bigger one. This is going to be compounded by a new generation of young people who are less interested in a traditional career structure and much more interested in filling their lives with a range of stimulating experiences. This means they are more likely to move jobs and have multiple careers. Attracting the best talent is therefore going to require new ways of thinking about employment and much more flexible arrangements if staff are going to be effectively retained.

7. Community Investment
A move from philanthropy to effective community investment is also seen as an important development in the next decade. There will be fewer donations to local charities and initiatives and a much more strategic investment in the communities impacted by business. The shift to community investment is also going to mean much more sophisticated measurement of the returns on that investment. That means measuring both the benefits to the community and well as the benefits to the business itself.

8. Supply Chain and Product Safety


We will see a deepening of supply chain concerns with first tier audits of factories no longer being enough to satisfy stakeholders worried about sweatshop labour and product safety. This is going to mean new partnerships with suppliers based on trust rather than inspections and it almost inevitably means the rationalisation of supply chains where large companies with shared CSR values are likely to be preferred. But environmental issues are also going to become more important in supply chains. Concerns over product responsibility will also mean supply chain issues will move from concerns about how products are made to whether those products themselves are safe and healthy.

9. Social Enterprises
Social enterprises will become an important new organisational model. A merger of business and NGO models is going to create enterprises that are sustainable into the long run because they adapt to the market rather than constantly relying on donor money. This they are able to affectively deliver much needed social services in an effective and efficient way.

10. Poverty Alleviation


The private sectors role in poverty alleviation is crucial. Particularly in the AsiaPacific region we still see many people and communities that have not benefitted from the economic growth that has reduced poverty elsewhere. The very poor tend to have few resources, few skills and few opportunities to engage in economic activity and we need innovative measures from the private sector to try to reduce poverty including challenges associated with the growing wealth gap now emerging in some countries and potentially threatening social stability.

Data Collection Understanding the methodology utilised in this project requires familiarity with the meaning of corporate social responsibility as defined by both Oxfam Hong Kong and CSR Asia. Oxfam Hong Kong states that: CSR refers to the commitment demonstrated by a company to operate in an economically, socially and environmentally sustainable manner, upholding ethical business conduct. To demonstrate their commitment, companies actively manage the impacts of their activities while trying to balance the needs of diverse stakeholders. CSR Asias CSR model combines seven core areas: corporate governance, strategy, environment, workplace, supply chain, community investment and marketplace. Within these core areas, businesses should develop policies, objectives and procedures to pursue sustainability while ensuring the interests of different stakeholders. Specific criteria from all areas of CSR were considered when creating the questionnaire that was sent to companies. The survey questions were based on a combination of CSR Asias model on CSR and internationally recognised sustainability indexes and guidelines, namely the FTSE4 Good sustainability index and the Global Reporting Initiative guidelines. In May 2008, questionnaires (Appendix A) were sent out to all fortythree Hang Seng Index constituent companies. Sixteen responses were received a response rate of Thirtyseven percent. Questionnaires were sent to the Chairperson of the company and also to key contacts within the Communications and CSR/Sustainability departments. In cases where no contact could be found, they were sent to the Chairperson and the Investor Relations department. The questionnaires were accompanied by a cover letter stating the intent of the survey and the possibility of the findings being made public. Companies were given one month to respond. Companies that did not reply to initial requests for the survey were contacted on two to three additional occasions by both telephone and email. CSR Asia allotted extra time for completion of the questionnaire and continued to accept responses six weeks past the initial deadline. For those companies that ultimately did not respond, CSR Asia gathered information rom public documents on company websites (both English and Chinese), namely 2007 annual reports and in a few cases separate 2007 CSR reports and CSR sections of company websites. Scoring The scoring of the survey was based on both the companys basic answers (yes, no, dont know) and the amount and quality of evidence provided to support affirmative responses. Providing evidence of CSR policies and initiatives became crucial to attaining higher scores. A chart describing the scoring process was provided to every company in the instructions section of the survey. That chart outlining the scoring process is shown below-

Not every question has a possible high of three. Many had a maximum of two, and several had a maximum of one. The scoring of each question differed, depending on itsimportance. Highest marks for each question were given for an answer that provided thehighest quality of evidence and/or examples of practices. References to public website links counted as providing evidence, as long as the company eferenced the relevant information, which was confirmed by the researcher.A series of bonus points existed within the survey without the knowledge of the companies. Examples of these points included having a CSR committee that reports to the board of directors or including additional specifications for supplier conduct. These points were added to points from other questions to create the total score for the company. The inclusion of bonus points allowed those companies doing more on CSRthan generally expected to shine through. More specific analysis of bonus points and their impact is given in the main findings section of this report. In addition to evaluating CSR practices, the scoring system inadvertently became a measure of transparency. For those companies that did respond, evidence often included references to public informtion on company websites. Leading companies referenced these kinds of public sources frequently, displaying not only the breadth of their practices but also their commitment to CSR reporting. Many companies, however, were unable to include information beyond a general level. This allowed us to draw conclusions about the level of transparency among Hang Seng Index constituent companies.

CSR for the last decade has been very much based on the prevalent outsourcing model where concerns over sweatshop labour have dominated. Whilst still important there is clearly now a big new challenge that we have to engage with and that is the environment and, particularly, climate change. Labour rights are going to be increasing couched as human rights. Community investment will be expected to bring greater returns. Supply chain issues are going to become deeper and more concerned with product responsibility. There is going to be a battle for talent. Companies are going to be expected to help find solutions for remaining challenges in the region such as poverty alleviation. To deal with these new expectations of business we are going to see the need for capacity building at a number of different levels and better embedding CSR into the DNA of a business. This all has to be done in an open, transparent and accountable manner with a new emphasis on stakeholder inclusion. CSR Asias ongoing research into emerging CSR trends will help companies track emerging issues and plan CSR strategies accordingly. CSR Asia can also help companies engage with stakeholders, respond to their needs through effective .communications strategies and develop new and innovative