Corporate Sustainability at HSBC in India

Financial Inclusion l Environment l Voluntee ring

Acknowledgement
We would like to take this opportunity to thank Prof. Badrinath Iyengar for sharing his knowledge regarding Corporate Social Responsibility (C.S.R.) with us. It has been an enriching and fruitful experience for us while we were working on this project. We would also like to thank our H.O.D. Dr. Shalini Sinha for her timely inputs regarding how to go about working on and preparing the project. It was a great learning, as we got to know deeper insights about CSR and how it is beneficial for the company as well as the society. We would specially like to thank Mr. Akshay Gavai, Assistant Manager Environment at The Orchid, Mumbai who gave us valuable inputs about the C.S.R. initiatives at their organization. It was due to his guidance and support that we were able to gather a lot of information about how C.S.R. initiatives are actually implemented.

Preface
We have great satisfaction in introducing this Project report on the functioning of the C.S.R. initiatives at HSBC Bank, Mumbai. The Project, which has been conducted and completed within a record time of two months, is an excellent example of cooperative Endeavour among a number of individuals and an organization. It was ambitious to undertake such a thought-provoking and interesting project. The motivation, tenacity and commonality of purpose of our team, helped us to complete the project without any obstacles. This project has added special value to not only our professional life but also to our personal life. The report also offers specific recommendations in a number of areas both for HSBC Bank and to the Hospitality industry itself to strengthen their present activities and to formulate future strategies. This Project Report, we trust, would go a long way to strengthen the functioning of the existing CSR activities and work out action plans for improved future programmes of similar kind. It is hoped that the day is not very far when every Bank in the country will take up CSR initiatives like HSBC and help contribute in conserving the environment and make the society also aware as to how important it is to do so.

INDEX

Introduction to Corporate Social Responsibility

Corporate Social Responsibility (CSR) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large. The term CSR itself came in to common use in the early 1970s although it was seldom abbreviated. The term stakeholder meaning those impacted by an organization's activities was used to describe corporate owners beyond shareholders from around 1989. A CSR programme can be seen as an aid to recruitment and retention, particularly within the competitive graduate student market. Potential recruits often ask about a firm's CSR policy during an interview and having a comprehensive policy can give an advantage. CSR can also help to improve the perception of a company among its staff, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering. Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily normative. In academia descriptive approaches are also taken. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non-economic social values.

Historically, interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. It is apparent that in todays business practice, CSR is entwined in many multinational organizations strategic planning process. The reasons or drive behind social responsibility towards human and environmental responsibility is still questionable whether based on

genuine interest or have underlining ulterior motives. Corporations are fundamentally entities that are responsible for generating a product and or service to gain profits to satisfy shareholders. As Milton Friedman believes, there is no place for social responsibility as a business function. However a business still comprises people those posses both the humanistic and naturalistic view points. The humanistic view is that a deteriorating environment and planet is of no relevance in sustaining human life let alone a business. The naturalistic view is where we draw the line between exploiting our natural resources and destroying our fauna and flora for the sake of profiteering and sustainability. The need to create an ideal scenario that is pareto efficient may be the main reasons such mediators are there to adjudicate. Influence from the population, government and competitors are possible forces that can destabilize an organization should its motives or unethical processes become clear. Legal structures in place are created to ensure international borders are not left exposed to multimillion dollar organizations' self interest. Stringent laws and penalties are governed by legal bodies such as the

International Court of Justice that are capable of sanctioning non abiding organizations. Social responsibility of a business refers to what the business does, over and above the statutory requirement, for the benefit of the society. The term corporate citizenship is also commonly used to refer to the moral obligations of the business to the society. This implies that just as individuals, corporates are also integral part of the society and their behavior shall be guided by certain social norms. The operations of business enterprises affect a wide spectrum. The resources they make use of are limited to those of the proprietors and the impact of their operations is felt also by many a people who are in no way connected with the enterprise.

Corporate Sustainability at HSBC in India

Education Life and Livelihood Skills Financial Literacy Climate Change Ecosystem Conservation

Introduction and Overview

Practicing Corporate Social Responsibility (CSR) is no new phenomenon CSR has been a vital ingredient in HSBC in Indias 150 years of success.

at HSBC. A t HS BC, the t e r m sustainability means achieving sustained profits for our shareholders, developing longlasting customer relationships, valuing our highly committed employees and managing the social and environme n t a l impact of our business.

The world has witnessed rapid changes in the last few decades, and with this, new challenges and opportunities have emerged, thereby giving CSR a greater role to play, and justifiably so. Sustainable development is a major challenge facing the world today. People are living longer and world population is increasing, emerging markets are growing faster than mature markets and the climate is changing because of human activity. We can already see the impact of these global trends on people, businesses and the environment. This calls for a coordinated response from governments, regulators, business and society to manage these changes.

CORPORATESUSTAINABILITY:RESPONSIBILITY OPPORTUNITY? OR
As one of the worlds biggest banks we recognise that we have an important role to play in addressing global challenges and ensuring that we pursue progress today without putting future generations at risk. In keeping pace with these changes, HSBCs work in India in this space has also evolved, leading to a paradigm shift in our approach from a philanthropy-led to a sustainability-led one. Sustainability at HSBC is not only our responsibility or the right thing to do but also an opportunity to strengthen and grow our business. HSBC is committed to achieving sustained profits for our shareholders, developing long-lasting customer relationships, valuing our highly committed employees and managing the social and environmental impact of our business. Corporate Sustainability (CS) as we call it today is accepted unanimously across the Bank, not only our responsibility or as the right thing to do but also as an opportunity to strengthen and grow our business. It is indispensible for the companys long term success.

OUR APPROACH
In India, HSBCs CS practice rests on the pillars of financial inclusion and environment sustainabilit y, the ultimate goal being to achieve sustainability for business. We work closely with organisations in communities around us, with our businesses, employees, customers, suppliers and other stakeholders on a range of projects and programmes aimed at achieving financial inclusion of poor unbanked communities and conserving the environment. The four main facets of HSBCs approach are: Community Investment: We invest in a wide range of financial inclusion and environment initiatives aimed at education of underprivileged children, employment of disadvantaged youth, building capacities of rural women, addressing climate change, conserving the ecosystem and increasing awareness of the environment. Footprint Management/Direct Impact Reduction: HSBC is the first bank to go carbon neutral in 2005. We manage the direct environmental impacts of the business by working to reduce energy and water use, waste and carbon dioxide emissions. In India, a range of initiatives have been implemented to reduce consumption of energy and water and manage waste effectively at our offices. These include vermiculture initiatives to disintegrate waste, installation of sensor taps, waterless urinals, dual mode cisterns and water harvesting projects to conserve water and installing energy saving devises such as low energy light bulbs, intelligent controls, automatic power factor panels and air-conditioning controls.

Introduction and Overview

Sustainable Business Development: HSBCs responsible lending guidelines ensure that we do not invest in projects that harm the environment. We manage the indirect environmental impacts of business by implementing various sector policies laid down by the HSBC Group namely the forestry sector policy, energy sector policy, chemical sector policy, defense sector policy, fresh water policy and mining and metals policy. HSBC has adopted a number of international codes guiding the conduct of our business such as the UN's Principles of Responsible Investment and the UN Global Compact. The Equator Principles are applied to projects greater than USD 10 million to ensure that they are developed in a manner that reflects sound social and environmental management practices. People and Diversity: We provide training for employees to help them understand sustainability and encourage them to take action through their work. We promote equal opportunities for employees and positively discriminate on the basis of gende r, disability and economic disadvantage. Employee Volunteering: Employee volunteering is an integral part of HSBCs Corporate Sustainability strategy in India. While it gives employees an opportunity to engage with the community in and around them, volunteering also helps build stronger communities. Every year, HSBC employees around the world, including India, take part in a Global People Survey (GPS) which measures employee perception, attitude and engagement across several indicators. Corporate Sustainability has emerged as a key driver of employee engagement in India. Our colleagues have volunteered extensively with charities working in the area of financial inclusion and the environment (for example - mentoring children and youth, environment awareness programme, tree plantation drives, research work in forests on climate change, financial education projects with rural women, direct impact projects at their workplace like reduction of paper usage, disowning use of paper and plastic cups etc.). The bank recorded 42,100 volunteering hours in 2008. Employee volunteering is seen as a reward and a key benefit proposition for employees to enhance team work and hone leadership skills.

CORPORATE SUSTAINABILITYAT HSBC IN INDIA:

SUSTAINABILITY
FINANCIAL INCLUSION
Micro finance Priority Sector lending Affirmative Action Diversity

ENVIRONMENT SUSTAINABILITY

Education

Life Skills

Capacity Building

Climate Change

Ecosystem Conservation

Direct Impact Reduction

Employee Volunteering Business Engagement Communications and Reporting

Substainable Business Development & Risk Management

Financial Inclusion

Financial Inclusion

Financial inclusion at HSBC goes beyond just access to formal financial services. It encompasses the complete process of seeing communities through the upward journey from chronic poverty to economic independence. A sizeable proportion of Indias population continues to be chronically poor because they lack resources, capabilities and access to opportunities. For this population, (commonly referred to as Bottom-of-the-Pyramid (BOP) access to education, employment and entrepreneurship opportunities are indispensible to their advancement.

Therefore, HSBCs financial inclusion initiatives target the poor at three different life stages underprivileged children, unemployed youth and disadvantaged rural women (see diagram below). In this manne r, our initiatives facilitate access to education, employment and entrepreneurship opportunities that empower BOP communities to break out of poverty, participate in the economy and thereby create wealth and well-being for their families and communities.

OUR APPROACH
Underprivileged Children

Education

Disadvantaged Youth

ACCESS

Life and Livelihood Skills

FINANCIAL INCLUSION

PARTICIPATION IN ECONOMY

Rural Women

Capacity Building Microfinance

Diversity and Affirmative Action (Cross cutting themes)

Education

Education for underprivileged children

In India, HSBC promotes education that is holistic, ensuring not just basic literacy but a wider range of essential skills and capabilities that enable an individual to become economically independent and participate successfully in the econom y. Thus a diverse range of education initiatives are supported in India, ranging from projects sponsoring basic formal education, to computer and vocational education, rehabilitation of out-of-school street and drug using children, financial literacy, sports, library and language projects.

Our global education initiative, Future First, is a five-year programme of the HSBC Global Education Trust. Future First currently supports 204 education and life skills projects for street children, orphans and children in care in 45 countries where HSBC has a presence.

In India, HSBC has supported over 88,000 underprivileged children through education projects in 8 cities. These are:
Butterflies Future First has supported a Mobile
Education Resource Centre (MERC) equipped with computers, books and other educational resources for street and working children. This van travels to various locations in Delhi to impart attend school owing to various social and economic pressures. Location: Northern India, Delhi Focus Area: Life skills education, children 's development bank Beneficiaries: Street and working children Number of beneficiaries: 500 children

non-formal education, computer skills and financial literacy to thousands of children on the streets of Delhi who are unable to

Navjyoti Delhi Police Foundation is a 17

year old organisation formed und er the leadership of Dr Kiran Bedi, India 's first and highest ranking woman officer in the Indian Police Service. Future First supports 7 libraries in 2 resettlement

Location: Northern India, Delhi Focus Area: Non-formal Education Beneficiaries: Out-of-school children Number of beneficiaries: 4000

colonies of Delhi catering to children studying in non-formal education centres.

Education

Yusuf Meherally Centre Support is being

provided to begging and working children from the streets of Delhi who are being cared for in the centre 's hostel. In contrast to the daily violence and exploitation that thes e chi ldren are

Location: Northern India, Delhi Focus Area: Education and shelter Beneficiaries: Begging children Number of beneficiaries: 250

accustomed to on the street, the hostel offers a safe and caring environment with access to education, health care, recreation activities, nutritious meals and more.

SOS Children's Villages

organisation 's abandoned and mission orphaned is

of India The
to provide with a children

family, a home, education and a foundation for an independent life. Future First is supporting a family home in

Location: Northern and Western India, Anagpur, Faridabad, Latur and Bhuj Focus Area: Education and residential care Beneficiaries: Orphans and children at risk Number of beneficiaries: 4007

Faridabad and Family Strengthening Programmes in Anagpur (Haryana), Bhuj (Gujarat) and Latur (Maharashtra) for the benefit of children facing the risk of abandonment.

Support is an organisation working towards

rehabilitation and mainstreaming of drug using street children in Mumbai city. The organisation is being supported to run day-care centres near 2 major railway stations. These centres offer non-

Location: Western India, Mumbai Focus Area: Emergency assistance, nonformal education and rehabilitation Beneficiaries: Drug-using street children Number of beneficiaries: 1440

formal education to street children with the aim to motivate street children to opt for rehabilitation programme.

Doorstep
establish

School

is being

supported

to of

and run Early Childhood Education

Centres or 'Balwadis' in port communities

Mumbai. These centres have been playing a key role in preventing children from joining the ranks

Location: Western India, Mumbai Focus Area: Early Childhood Education Beneficiaries: Slum Children Number of beneficiaries: 250

of child labourers, preparing and encouraging them to be mainstreamed into formal school.

Salaam

Baalak Trust

Future

First

is

supporting a night shelter at Umerkhadi that acts as a safe haven for 30 homeless girls who face the risk of abuse on the streets. The girls receive education, health care, vocational training, and counseling and are finally rehabilitated once they turn 18 years old.

Location: Western India, Mumbai Focus Area: Education and residential care Beneficiaries: Homeless street girls Number of beneficiaries: 30

Education

Magic Bus uses sports as a medium to impart

life skills to street children and re-direct their energies and time into productive recreational activities. HSBC supports the organisation 's Sport for Development programm e that

Location: Western India, Mumbai Focus Area: Life skills training through sports Beneficiaries: Street children Number of beneficiaries: 120

enables children and youth to discover and develop with positive experiences through the medium of sport.

Children Toy Foundation (CTF)

Mumbai-based NGO that

is a

harness es the of children. Given

potential force of toys and games to mould the character and temperament the context of high drop-out rates among

Location: Western India, Vadodara Focus Area: Non-formal Education Beneficiaries: Children from poor families Number of beneficiaries: 3000

children from poor communities, Future First is supporting CTF to set up a 'Khelvigyan Center (Toy Library) with toys that engage children who otherwise have little access to healthy and educational forms of recreation.

Jeevodaya Society

is situated at Itarsi - a

significant railway junction in Madhya Pradesh. Future First is supporting Jeevodaya to acquire land to build a girls' shelte r. The construction of the shelter is expected to be completed in

Location: Western India, Itarsi Focus Area: Shelter Beneficiaries: Street girls Number of beneficiaries: 60

December 2008, thereby giving homeless street girls access to a safe and protected environment.

Shoshit Seva Sangh is being supported to

run a residential school that provides education and vocational training to children of the 'Mushar' (rat catcher) communit y. Mushars are considered the most 'untouchable' or 'Dalit

Location: Eastern India, Patna Focus Area: Education and residential care Beneficiaries: Mushar (former untouchable) children Number of beneficiaries: 200

(oppressed) and live in appalling conditions in the eastern State of Bihar. Support to a sufficient number of students of the Mushar community on a continuing basis will transform the quality of life of the community in due course.

Loreto Day School

Sealdah

is being

supported to run the 'Off to school programme' - a unique project that brings privileged and the less fortunate together in one classroom. It is a school in the day and a shelter for girls by night.

Location: Eastern India, Kolkata Focus Area: Education Beneficiaries: Street girls Number of beneficiaries: 240

It makes full use of the existing infrastructure and expertise already available at the school to provide access to quality education to homeless children in the city. At the same time it also provides education to impoverished children in the surrounding rural areas, thereby preventing them from running away from home to big cities.

Education

Partivartan
runs

Social
based

Welfare
education

Society
centres

community

serving about 2000 out-of-school slum children every year. The project supported by Future First aims to provide non-formal education

Location: Eastern India, Kolkata Focus Area: Education Beneficiaries: Street children Number of beneficiaries: 1000

tostreet children, mainstream these children into formal school and retain enrolled children in schools.

Sathi for street children Sathi, (Society for

Assisting Children in Difficult Situations) has been working for the past decade to reunite and reintegrate railway platforms with their fami l ies. HSBC is street children found on

Location: Southern India, Bangalore Focus Area: Life skills, de-addiction Beneficiaries: Drug-using street children Number of beneficiaries: 1000

supporting Sathi 's detoxification and de-addiction camps conducted for homeless children from railway platforms aimed at helping them give up their drug addictions and choose alternatives to the risky and uncertain life on the streets.

Parikrma Humanity Foundation, Bangalore - HSBC is supporting

the complete and holistic education of 8 children at Parikrma Humanity Foundation Development will creat e a their cycle of povert y. St Louis School for the Blind, Chennai - The Blind school was started way back in 1962 by the Monfort Brothers of St Gabriel and provides food and shelter to 132 students on its rolls. HSBC is supporting the vocational training, computer and life skills education of 130 visually impaired children of the school. Sesame Sesam e Workshop India (Multiple cities) Worksho p India is a nonp rofit for one level year. The Parikrma Model is a 360 degree (3DP) that gives children field, enabling the the poor tools that to break playing Programme

Location: Southern India, Bangalore Focus Area: Non-formal Education Beneficiaries: Slum and street children Number of beneficiaries: 8

Location: Southern India, Chennai Focus Area: Vocational training Beneficiaries: Visually impaired children Number of beneficiaries: 130

organisation spearheading Galli Galli Sim Sim, an early childhood educational initiative that harnesses provide the power of media to

Location: Multiple cities, India Focus Area: Early childhood education Beneficiaries: Slum and street children Number of beneficiaries: 35,000

access to engaging, high quality, educational experiences and impact childrens educational and developmental outcomes. HSBCs is supporting the development of education kits for slum children that will focus on cognitive skills, emotional and social development and physical health. Sesame Workshop will also build capacities of balwadi teachers on the use of the educational materials for maximum impact.

Education

Apnalaya, Mumbai - HSBCs support to Apnalaya is for the Education

Sponsorship children are able to complete elementary education. Programme for a year. The main aim of the sponsorship programme is to ensure that the poorest and most neglected

Location: Western India, Mumbai Focus Area: Education Beneficiaries: Slum children Number of beneficiaries: 430

Tara Mobile Crches, Pune - is an organisation working for the welfare of construction workers and their children. HSBC supported the organisation by donating a Computer Aided Learning Centre (CALC) a bus equipped with computers travels education to Mobile Crches to construction and learning centres resources. Pune The CALC imparting across

Location: Western India, Pune Focus Area: Education Beneficiaries: Children of construction workers Number of beneficiaries: Children across 16 Mobile Crche centres in Pune

workers children.

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Life and Livelihood Skills

Yuva Parivartan, Mumbai - HSBC supports programme to Yuva Parivartan are from extremely poor

the Kherwadi Social Welfare

Associations

'Yuva Parivartan' which trains youth in skills needed by the job market. Young people who come families residing in slums in Mumbai. Economic empowerment reaching out to a total of people . 1090 young not only improves their own confidence and well-being, but also has This initiative is

implications on overall well-being and social development of their communities.

Youth vocational training initiative, West Bengal - Spearheaded by the Microfinance team in India, HSBC, Bandhan (a leading microfinance institution in Eastern India), and Tally Solutions Private Limited (a business solutions software major) have partnered to empower unemployed youth of West Bengal through a skills-based learning programme. Under this partnership, Tally will provide skill-based learning to unemployed candidates, while HSBC and Bandhan will offer finance with affordable repayment options to candidates. have been identified and it is expected to be scaled up significantly following the success of the first phase. Confederation of Indian Industry (CII) Affirmative Action Scholarships: HSBC supports the Confederation of Indian Industry (CII) Affirmative Action Scholarships targeted at university students belonging to SC and ST communities in seven cities . A total of ten scholarships have been supported by the bank and they offer support to enable SC/ST students to complete their studies. In the first phase 100 borrowers

Youth from Yuva Parivartan at the Kherwadi Social Welfare Association interacting with the previous Lord Mayor of London Alderman David Lewis.

11

Capacity Building

HSBC supports three partnerships specifically to build capacities of rural women, which together cover two large Indian states of Maharashtra and Gujarat. By facilitating microfinance-oriented capacity building support to entrepreneurial activities in a cost effective way, these partnerships are helping thousands of rural women become sustained and successful entrepreneurs. The benefits accruing to society because of such economic and social stability will indeed be man y.

Water-based

livelihood model, Raigad, Maharashtra - This was one of HSBCs first rural

development initiatives in partnership with an organisation named Society to Heal, Aid, Rehabilitate and Educate (SHARE). The initiative began as a wate r-harvesting project in seven drought-prone villages in Raigad district where women were worst affected and had to walk long distances to collect water. After having achieved self-sufficiency in water in the villages, women had spare time for other income generating activities. With HSBC 's support, the project evolved into a micro-saving and entrepreneurship development programme. As a result, 5000 women and their families have now gained financial independence and broken out of povert y.

Manndeshi Udyogini Business School, rural Maharashtra - The school was initiated in 2006 in the remote district of Satara to train young girls who have dropped out of school and women with limited or no formal education, and to prepare them to be successful entrepreneurs. Women receive training in a range of skills in financial literacy, marketing, negotiation and confidence building. In the three years since its inception, this project has produced over 24,000 graduates, created over 14,000 successful women entrepreneurs and 6800 new businesses in the region.

The Rural Urban Development Institute (RUDI) Managers School, rural Gujarat This initiative covers 9 districts in the state of Gujarat and is supported by HSBC and run by SEWA Gram Mahila Haat a subsidiary of SEWA (Self Employed Women 's Association), India 's largest movement of over 600,000 self employed women in urban and rural Gujarat. The project was started with the objective of training women to start and run RUDI centres processing and marketing hubs of locally procured agricultural produce. RUDI women (known as RUDI bens) learn production techniques and are introduced to economic concepts such as supply-and-demand demonstrate prediction, marketing and cost-benefit analysis. Today, SEWA has been able to business model with centres recording high that the RUDI Managers School is a working sustainable

revenues at a low running cost. RUDI is established and well recognised locally for its quality, and this has successfully eliminated middlemen from the supply chain thereby bringing more returns to the women. An equally important outcome has been the better returns consumers. for farmers, and improved quality locally grown food grains for local

12

Microfinance

HSBC India has completed almost five years in the microfinance space, starting from small exposures with emerging Microfinance Institutions (MFIs) in the early years to considerable lending and sector building initiatives since 2008. Presently the Microfinance business at HSBC in India caters to almost 300,000 borrowers through 10 MFIs in 12 States across India, of which 95 percent areas. of the borrowers are women in rural

After building a lending portfolio under which we have disbursed more than USD 85M in the last 15 months and with a 100pct on-time repayment record, we have started building on our financial inclusion initiatives. We are now working on creating commercial opportunities in the space of technology-enabled banking for the financially excluded, linking rural markets with alternative energy solutions to support climate change and also support vocational education for the unemployed youth through MFIs. Further, with the objective of recognizing the contribution of different stakeholders in the microfinance secto r, HSBC alongwith Access Development Services, a sector supporting entity, instituted the Microfinance India Awards in 2009. HSBC ACCESS Microfinance India Awards The first HSBC ACCESS Microfinance India Awards were held on 26 October 2009 in New Delhi. The awards recognised the contribution of thought leaders, practitioners, policy makers, promoters, researchers in the area of microfinance and are the first of its kind for the secto r. The chief guest for the Awards ceremony was Dr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, Government of India. Naina Lal Kidwai, Group Chairman and Country Head, HSBC India, gave the welcome address and stressed on the need to appreciate the efforts of diverse stakeholders who have made a tremendous contribution to facilitate financial inclusion. Two awards have been instituted in the first year of its inception.

Priority Sector Lending (PSL)

In addition to meeting the Reserve Bank of Indias statutory targets for lending in the priority secto r, HSBC has widened its scope in this space by setting up a separate department within the bank called Prioritive Initiatives that aims to develop the rural and agribusiness strategy for the bank. Initiatives undertaken till date have included providing e-card solutions for unde rbanked women in Maharashtra and developing integrated agri-business supply-chain models in Punjab, Haryana, Himachal Pradesh and Uttar Pradesh.

Financial literacy for consumers

As part of HSBC's ongoing efforts towards financial education, a new section - Your Money Counts was launched on HSBCs website earlier this year (http://ww w.hsbc.co.in/1/2/you r-money-counts). The new section offers financial advice on matters like managing money, taxes, using credit, investing and financial planning. The section attempts to answer the frequently asked questions borrowing. of laypersons and is a ready reckoner for prudent saving and investing and responsible

13

Other Global Initiatives

Students in Free Enterprise (SIFE) is an international organisation active in more than

40 countries that mobilises university students around the world to make a difference in their communities SIFE students The teams demonstrate in the results of their projects at regional, national and international competitions. Several teams that participate while developing their skills to become socially responsible business leaders. and develop community outreach success. form teams on their university campuses

projects that equip others with the knowledge and skills to achieve greater economic

the SIFE competition from India apply for the HSBC Financial Literacy Grant, which gives them the opportunity to work with financial literacy projects in communities across the country. HSBC employees in India participate in judging events and mentoring college teams.

The HSBC Scholarships Programme aims to nurture leaders around the world and help build global knowledge live and work. The Oxford, London with the accompanying offers expectation that the lifelong careers higher of the in scholarship recipients will be marked by significant contributions to the community in which they programme students support to pursue education and Cambridge Universities. Over time, the HSBC Scholars will form an

influential international alumni network, bringing vision and commitment to improving the lives of citizens throughout the world.

Junior Achievement (JA) - In partnership with JA, HSBC has embarked on JA More than Money a three-yea r, global programme this programme, management students are to teach basic financial skills to school children. Through encouraged to use innovative thinking to learn money-

skills that support positive attitudes as they explore and enhance their career

aspirations. Students also develop a better understanding of the relationship between what they learn at school and their successful econom y. participation in the

14

Environment

15

Environment

Environment sustainability is at the heart of HSBC 's long term growth strateg y. It is our endeavour that sustainable business principles Climate Change permeate every level of our business and culture. We recognise that climate change will have a major impact on the way people live their lives, making it a central issue for our business, employees and Environment Direct Impact Reduction Sustainable Development and Risk Management customers. Our initiatives are targeted at tackling climate change at various levels, conserving the ecosystem, reducing our carbon footprint and that of our stakeholders, spreading awareness on the environment and influencing policy. As a financial services company we are also committed lending customers to minimising decisions, in reducing the environmental our impact and of our supporting customers potential Ecosystem Conservation

their carbon emissions and exploring carbonand alternate energy

friendly business opportunities in areas such as clean technology sources.

Naina Lal Kidwai awarded the prestigious Green Globe Award - Naina Lal Kidwai, Group General Manager and Country Head, HSBC India, has been awarded the prestigious Green Globe Award in the business enterprise category for her commitment to environment sustainabilit y. The award was given away at the Delhi Sustainable Business Development Summit on 5 February 2009.

16

Climate Change

Climate Change
We understand the impact of climate change on our business and on communities, and are committed to tackling this global challenge in collaboration with other like-minded individuals and organisations.

Earth Sciences Forum is the first ever public

private partnership between HSBC in India and the Ministry of Science and Technology and Ministry of Earth Sciences, Government of India to find solutions to climate change. Earth

The Earth Sciences Forum comprises of three distinct components: A Leadership Council Awareness Workshops for Industries Outreach and Communication on

Sciences Forum hopes to create an informed environment amongst various stakeholders communicating best practices in climate change adaptation and mitigation.

climate change in India and encourage working together to tackle climate change by sharing and

Climate Change on Wheels!

The Science Express: As part of the communication outreach component of the Earth Sciences Forum, HSBC sponsored a dedicated coach on Climate Change Cause, Effects and Mitigation on the Science Express. The Science Express, which was launched on 02 October 2009, is an innovative Science Exhibition mounted on a specially designed train, mysteries of the world, ground and is a fascinating expedition to the emerging issues of cutting-edge science and future oriented technologies. The coach will travel to over 56 locations, covering about 18,000 kms in the seven months of its journey. At each location, it will halt for 3-5 days, during which time students and the general public will visit the exhibition. breaking discoveries,

HSBC India Living Business Programme - In collaboration with The Energy and Resources Institute (TERI), HSBC works with Small areas:

and Medium Enterprises (SMEs) in two

Survey and awareness

workshops for SMEs to understand and help them plan

sustainable business practices

An annual award to recognise outstanding contributions made by SMEs in the community and environment and to share best practices.

HSBC Young Rangers - A partnership with Yuhina Ecomedia that promotes

awareness

and

education on climate change among school children. The first phase of the project was completed in 2007, as a result of which 90,000 children from 90 schools in Mumbai benefited. The second phase of the project was launched in Pune on 21st August 2008. A total of 75 schools in Pune and 100 schools in Mumbai covering some 175,000 children (including children from municipal schools) benefited from this phase.

17

Climate Change

HSBC Climate Scholarships This is an initiative in partnership with TERI for five years (starting 2009) that offers two scholarships per year to PhD students undertaking advanced research on climate change related topics adaptation and adaptation financing and low carbon growth.

The HSBC Climate Partnership is a groundbreaking US$100 million programme to reduce the impacts of climate change on people, forests, water and cities. In partnership with The Climate Group, Earthwatch Institute, Smithsonian Tropical Research Institute and Worldwide Fund for Nature (WWF), it aims to combat climate change by inspiring action by individuals, businesses and governments. follows: Initiatives undertaken by partners in India are as impacts of climate with local for HSBC

WWF has launched the Living Ganga Programme which is assessing change on the Ganges River in order to advocate and implement scientific field research government and industry to reduce/mitigate negative environmental impacts. Earthwatch Institute has been organising

strategies projects

employees (HSBC Climate Champions) to study impacts of climate change. The aim is to equip them with skills and knowledge to play an active role in their workplace and local environment. The Climate Group is engaged in obtaining new government and business memberships India, and in helping them to adopt policies for reducing greenhouse gas emissions. in

Earth Hour: HSBC employees across HSBC offices pan India joined hands to voice their commitment to combating climate change by participating in Earth Hour a WWF initiative encouraging people to switch off their lights for one hour at 8:30PM on Saturday 28 March 2009.

Promoting dialogue and awareness

Some events that have been supported in 2009 include: TERIDelhi Sustainable Development Summit 2009 A global forum that seeks to provide long term solutions to Sustainable Development Building A Low Carbon Economy A panel discussion in partnership with the Climate Group and British Council India on understanding the challenges and opportunities for the corporate world. Talking Tomorrow: To examine the role that business might play in addressing climate change, TERI-BCSD in association with HSBC India organised 'Talking Tomorrow' with Mr Stephen Green, Group Chairman of HSBC Holdings plc., followed by a panel discussion on "Business of Climate Change: The Journey Ahead" on 17 April 2009 at the India Habitat Centre in New Delhi. The panel discussion was presided over by Dr. R.K Pachauri.

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Ecosystem Conservation

Our initiatives are targeted towards protection of biodiversity (especially endangered species), afforestation and water conservation through watershed and rain water harvesting projects

Mangrove Wetland Centre is a unique

public-private partnership established between HSBC in India, Conservation (CAT) and the Maharashtra Department. The Mangrove Wetland Park is expected to harbour a wild population of over 150 species of birds, over 40 species of reptiles, mammals like jackals and jungle cats and other vivid life forms found in the mangrove environment. Action Trust State Forest Location: Western India, Mumbai Focus Area: Biodiversity conservation and environment education

HSBC India Bird Races

HSBC ha s create d a un iqu e avifaun a awareness project called the HSBC India Bird Race, a day-long event that involves birding enthusiasts fanning out to bird habitats to conduct a census of available species. Conserving the Dugong (The Sea Cow):

Location: Ahmedabad, Mumbai, Pune, Nagpur, Chennai, Trivandrum, Kochi, Calicut, Hyderabad, Bangalore Focus Area: Environment awareness and education Beneficiaries: Participation of over 3500 individuals

HSBC has supported a project undertaken by Reefwatch Marine Conservation to study the endangered Dugong (or sea cow) in the Andaman and Nicobar Islands which is the only existing species of herbivorous mammals that live exclusively in the sea. Saving the Olive Ridley Turtle: HSBC supports Operation Kachhapa, a project undertaken by the Wildlife Protection Society of India to educate fisher folk and local communities on the importance of conserving the endangered members about the significance of the turtle. Olive Ridley turtle. Every year, HSBC employees

volunteer their time to put newly hatched turtles back into the sea and educate local community

Nature Trail and Information Centre - HSBC has supported an

information trail at the Sanjay Gandhi National Park in Mumbai that provides interesting snippets and facts about the environment and the

Location: Western India, Mumbai Focus Area: Environment education of a Nature Information

wildlife found there to passers by. In addition to the trail, HSBC has supported the establishment will play an important role in helping understand and appreciate the value of nature conservation.

Centre (NIC) at the park, comprising of an interesting display of panels on a variety of themes that concern everyday life. NIC

Book on wilderness - HSBC is sponsoring a coffee table book, a project undertaken by Yuhina Eco Media, which will document the last of the truly wilderness sites of India.

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Community Partnerships on the Environment

NM Sadguru Water and Development Foundation, Dahod, Gujarat - HSBC is supporting the complete development sequestration benefiting and livelihoods advancement in five villages in Dahod, Gujarat. This innovative model links livelihoods and climate change by bringing about dual output - carbon and income generation for the rural poor. A total of 400 households are directly projects in agro-forestr y, floriculture, rain-water harvesting and vermi through

composting. The agro-forestry and fruit orchards will produce a steady annual income for farmers, estimated to increase every year, and simultaneously help sequester carbon in the region.

Watershed Organisation Trust (WOTR) - HSBC has partnered with WOTR to implement a project in field areas near Ahmednagar and Nasik to undertake holistic and integrated developmental activities for poverty reduction in resource-fragile and rain-fed areas in India. The aim is to equip communities to implement practices for watershed development, natural resource management, conservation. afforestation and water

Spandana Rural Energy Project - This project is spearheaded by the Microfinance team in India and comprises lending to Spandana, a large Microfinance Institution (MFI), for on-lending to members to purchase products that utilise alternative energy sources.Through this project, HSBC is creating from opportunity for rural communities to meet their energy needs by providing access to clean energy sources. A special grant from HSBC will enable Spandana to receive technical assistance MicroEnergy Credits (MEC) to develop and roll out a clean energy product portfolio including solar torches that will suit the needs of its clients. MEC will in turn link Spandana 's microfinance clients to the global carbon credits markets and enable them to trade credits earned by adopting clean energ y.

Water-based livelihood model, Marwar region, Rajasthan - HSBC has partnered

with Jal Bhagirathi Foundation to The project will achieve for their

implement a project to improve water security of poor communities in five villages of the Marwar region, Rajasthan - a densely populated region where climatic extremes such as droughts are a regular phenomenon. water security by implementing management. traditional water harvesting techniques and build community institutions

ACIL - Navasarjan Rural Development (ANaRDe) Foundation, Surat, Gujarat - HSBC has partnered with ANaRDe Foundation to install a Water Purification Plant Reverse Osmosis System for Safe Drinking Water that will provide safe drinking water round the year in one village near Surat city and thereby ensure social and economic prosperit y.

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Direct Impact Reduction

HSBC was the first bank to go carbon neutral in 2005. HSBC manages the direct environmental impacts of the business by working to reduce energy and water use, waste and carbon dioxide emissions. In India, a range of initiatives have been implemented to reduce consumption of energy and water and manage waste effectively at our offices. These include vermiculture initiatives to disintegrate waste, installation of sensor taps, waterless urinals, dual mode cisterns and water harvesting projects to conserve water and installing energy saving devises such as low energy light bulbs, intelligent controls, automatic controls. power factor panels and air-conditioning

Greening the supply chain: Sustainability is intrinsically linked to how organisations can help their supply chains build social and environmental considerations into their business operations. With this objective and with a view to initiating a comprehensive process of supply chain engagement on sustainability issues, HSBC India educates its vendors through knowledge practices. forums and encourages ethical sourcing

HSBC Group Environment Targets for 2008-2011

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Sustainable Business Development and Risk Management

HSBCs responsible lending guidelines ensure that we do not invest in projects that harm the environment. HSBC manages the indirect environmental impacts of business by implementing various sector policies laid down by the Group namely the forestry sector policy, energy sector policy, chemical sector policy, defense sector policy, fresh water policy and mining and metals policy. We have adopted a number of international codes guiding the conduct of our business such as the UN's Principles of Responsible Investment and the UN Global Compact. The Equator Principles are applied to projects greater than USD 10 million to ensure that they are developed in a manner that reflects sound social and environmental management practices.

The Climate Change Centre for Excellence, Bangalore As a carbon neutral bank, we also do see intensive potential in helping our clients benefit from business potential in a low carbon econom y. Thus, over the past few years, and specifically through the HSBC Climate Change Centre of Excellence, located out of London and Bangalore, we have been creating knowledge and outreach platforms to help business understand climate change, ways and means to tackle the same, and business opportunities therein.

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Employee Volunteering

Employee volunteering is an integral part of HSBCs Corporate Sustainability strategy in India. While it gives employees an opportunity to engage with the community in and around them, volunteering also helps year, HSBC employees employee perception, attitude and engagement key driver of employee engagement programme, area of financial inclusion and the environment build stronger communities. Every around the world, including India, take part in a Global People Survey (GPS) which measures across several indicators. Corporate Sustainability has emerged as a (for example - mentoring children and youth, environment awareness in India. Our colleagues have volunteered extensively with charities working in the

tree plantation drives, research work in forests on climate change, financial education projects with rural

women, direct impact projects at their workplace like reduction of paper usage, disowning use of paper and plastic cups etc.). The bank recorded 42,100 volunteering hours in 2008. Employee volunteering is seen as a reward and a key benefit proposition for employees to enhance skills. team work and hone leadership

Key employee volunteering activities in India:

HSBC Climate Champions - India Regional Climate Change Research Centre - The India Regional Climate Centre (RCC) located in the Sirsi Forest Division of Uttara Kannada district, Karnataka opened on 16 February 2009. Under the HSBC Climate Partnership, HSBC and Earthwatch are working with the Centre for Sustainable Technology of the Indian Institute of Sciences at the RCC, where HSBC Climate Champions from India, the Middle East, Sri Lanka, Mauritius, Maldives and Bangladesh will undergo training over the next four years. Environment Week Celebrations - HSBC celebrated Environment Week in India from 05 June -12 June 2009 where employees participated in several activities pan India. A Suppliers Green Day also saw key HSBC suppliers engage with and participate in environment activities organised by the Bank.

HSBC India Bird Races - A dawn to dusk event where employees, customers and bird enthusiasts assess bird biodiversity and report findings. Kemri Conservation Project A conservation project near Udaipur spearheaded by an HSBC employee, this project seeks to protect the land and ecosystem, conserve freshwater and increase bio-diversity and reforestation in the area.

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Employee Volunteering

CMS Vatavaran Environment and Wildlife Film Festival A wildlife film festival that celebrates not just the cinematic art of films but also on using films as a tool and catalyst for change. Employees get an opportunity to engage themselves in this event and build their awareness on the environment.

Junior Achievement - Employees educate students about entrepreneurship, and financial literacy through experiential, handson programmes. take it to other cities.

work readiness,

The programme called HSBC

More than Money is now active in Chennai, Mumbai and Bangalore and there are plans to

Helping Hands Mela - Employees organise a pan India activity at HSBC branches every year to encourage charitable giving through sale of products designed by NGOs and communities. This has participation from all branches and encourages employees to understand the work of charities and helps in community sensitisation.

Mumbai, Delhi and Bangalore Marathons - The Marathons are the easiest way to engage employees to run for a charity and it sees a huge participation from employees. Volunteering Action Fortnight - The first Volunteering Action Fortnight was celebrated between 14 28 November 2006 across India, which received an overwhelming response from employees. Large number of employees volunteer in large numbers. from all branches, departments and Group Companies participated enthusiastically and engaged with NGOs/Communities to understand their work. This continues to be an annual event for employees to

International Women's Day, Forestry Day, Water Day, Earth Day - Celebrations like International Womens Day, Forestry Day, Water Day have employees engaging with the community directly and participating in various volunteering activities.

HIV/AIDS

HSBC in India launched AWAKEN, an HIV/AIDS workplace intervention programme on World AIDS Day, 1st December 2006 with the objective to create awareness about this disease and to ensure a non-discriminatory environment at the workplace. Using the policy by HSBC in India as a benchmark, HSBC Group introduced a Group wide HIV/AIDSpolicy and e- learning module on 30th November 2007.

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Diversity and Affirmative Action

Tracking our impact on excluded communities

In recognition of the importance of uplifting backward classes of society, HSBC has been encouraging its NGO partners to consistently track the impact of their work in the community on people from SC /ST backgrounds on a regular basis. A subclause to this effect is now being added to the Memorandum of Understanding (MoU) signed between HSBC and its partners (wherever partners are agreeable to the clause), requiring NGOs to report on the impact of their work on SC/ST communities.

Diversity and Equal Opportunity

HSBC is an equal opportunities employe r. We do not discriminate on grounds of age, gende r, colour, race, ethnicity, language, caste, creed, economic or social status or disability. Being the worlds local bank, we value the diversity of the markets in which we operate. Diversity is central to HSBCs brand image and is an integral part of our managing for growth and people strategies. We recognise that having a workforce that broadly reflects the composition of the local communities in which we operate places us in a unique position to understand and respond to the needs of our customers. We thus use diversity as a competitive differentiato r, both in employment and in customer markets. Since April 2007 employee caste/ tribe status is being mapped consistently for new employees on a voluntary basis and the result has been positive. In addition, diversity initiatives and programmes of the Bank are driven by our Diversity Committee - chaired by HSBCs Country Head and comprised of senior executives from across the compan y. Whilst the Committee focuses on a broad range issues, its main areas of focus are Gender, Disability, the Underprivileged and Affirmative Action.

Industry
HSBC is signatory to the Confederation of Indian Industry (CII) Code of Conduct for Affirmative Action. The head of Corporate Sustainability at HSBC in India is a member of the CII Affirmative Action Council and has been representing HSBC at the quarterly council meetings.

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Disaster Management Initiatives

HSBC has always risen to the occasion and contributed relief and provided rehabilitation assistance during emergencies and crisis such as Gujarat Earthquake, Tsunami Tragedy, Mumbai floods and the Mumbai bomb blasts. Employees and businesses have whole heartedly participated in the Bank 's relief and rehabilitation activities through donations and volunteering.

Floods in Andhra Pradesh and Karnataka

In September 2009, 1.78 crore people in 15 districts have been affected by the torrential rains triggered by cyclonic weather conditions in the southern Indian states of Karnataka and Andhra Pradesh. More than two lakh houses in 15 districts have either collapsed or damaged. Agricultural crops, road network and power in these districts have been severely affected. In response to this disaste r, HSBC has launched an online fundraising campaign urging employees to contribute to those affected. materials. HSBC offices in Bangalore and Hyderabad are also organising special relief collection drives to collect relief

Cyclone Aila
Cyclone Aila hit Bengal on 25 May 2009, causing large scale devastation in many places of the State. The HSBC Eastern India and HDPI team based out of Kolkata undertook several field trips to cyclone affected communities and reached out to those in need of help with relief material and supplies. HSBC has since then, extended support and employee contributions. through material and financial aid through WWF and raised around INR 380,000 towards this cause through donations

Spirit of India Initiative

Following the Mumbai terror attacks of November in 2008, the urgent need emerged for an efficient and round-the-clock emergency medical response system. Therefore two major disaster management projects were initiated: 1298 Ambulance Access for All - HSBC decided to support four Advanced Life Support Systems (ALS) and two Basic Life Support Systems (BLS), as part of the Dial 1298 for Ambulance initiative. One ALS and one BLS was launched on 15th May 2009. This project will provide a network of fully equipped advanced a week. Ward-based disaster management - HSBC has partnered with United Way of Mumbai to establish ward based disaster management centres in G North and A ward in the city of Mumbai. The centres will collaborate with BMC and other civic authorities such as police, fire brigade, health and civil defense to ensure effective implementation of BMC 's disaster management plan and conduct community and civic awareness campaigns, which will cover all residents in these wards. and basic life support ambulances 24 hours x 7 days

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Disaster Management Initiatives

Bihar Flood Campaign

HSBC garnered immense support from employees during the tragic floods in Bihar that wiped out several villages in September and October 2008. Employees contributed both materials and money to help the flood victims. The funds raised (in excess of INR 2 million) were deployed by HSBC towards the following: Vocational training and Child Care, Madhepura - This project, in partnership with Samajik Shaikshanik Vikas Kendra was carried out in the 7 villages of Kumarkhand block of Madhepura district. The project was targeted at 227 socially and economically marginalised families who had lost their livelihoods due to loss of assets. Three child care centres were also set up to cater to the vital emotional, educational and psychological needs of 592 children traumatized by the disaste r. Relief and rehabilitation, Khagaria, Purnea, Saharsa, Supaul, and Madhepura In partnership with AID India and Nikhar Gramin Vikas Kendra, HSBC supported the provision of immediate relief by way of food packets, family kits (bedding and cooking utensils), and clothes. Support towards longer term support such as shelte r, school bags for children and cycle rickshaws and other equipment for alternate vocations were also given. A series of medical camps were organised to address the health needs of the communities.

Spirit of Mumbai Initiative

The Spirit of Mumbai initiative saw a collective and enthusiastic response from HSBC businesses who came together to support those affected in the aftermath of the Mumbai blasts. HSCI collected INR 1.25 crores on its Charity Day on 18July06 (one day 's trading revenue to donate to Charity) which was matched by HSBC Holdings plc. Educational and medical aid was provided to 33 beneficiaries affected during the Mumbai blasts. First Responder Disaster Management workshops were launched on 10Apr07 to train citizens on do's and don'ts during natural disasters and several training workshops have been conducted for citizens. So far 112 training workshops conducted and around 15000 citizens trained. HSBC Disaster Management Centre in Ward G North has been established to manage the disaster efficiently by creating networks amongst NGOs, hospitals, fire brigade, etc. A 24 hour helpline (1298 ambulance service) to provide emergency medical aid has been rolled out by HSBC. The Spirit of Mumbai initiative has been extended to support initiatives that build sustainable solutions in several spheres, including that of protecting the environment.

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HSBC in India

INDUSTRY FEDERATIONS
HSBC sits on / is a member of the following bodies: Indian Banks Association (IBA) Indian Institute of Bankers (IIB) National Institute of Bank Management Confederation of Indian Industry (CII) Federation of Indian Chamber of Commerce and Industry (FICCI) Associated Chamber of Commerce Bombay Chamber of Commerce and Industry CSR Committe Indian Merchant Chambers Indo-American Chamber of Commerce Maharashtra Economic Development Corporation Chambers of Commerce in New Delhi, Kolkata, Bangalore and Chennai Bombay First CII Council on Affirmative Action CII National CSR Committee FICCI Task Force on Financial Inclusion CII Committee for Womens Empowerment Council for Fair Business Practices

MEASURING IMPACT
Millennium Development Goals (MDGs)
HSBC 's initiatives in Corporate Sustainability in India are also guided by the United Nation 's Millennium Development Goals (MDGs). The Bank 's financial inclusion, environment, volunteering, affirmative action and other initiatives together address the following 6 (of 8) MDGs.

Source: http://ww w.undp.org/mdg

CONCLUSION
A business with fewer stakeholders to satisfy, their greatest concern appears to be their customers and their own ability to satisfy the demand for products effectively. Businesses are demonstrating that well managed corporate responsibility actually supports business objectives, especially amongst large corporate where improved compliance, reputation and relationships has been shown to increase shareholder value and profitability. For privately held businesses, the pressure to act can stem from the demands of the supply chain, with large multinationals increasingly demanding that suppliers conform to ethical business practices. Incorporating corporate responsibility into a businesss core strategy can also enhance its attractiveness as an employer.

BIBLIOGRAPHY

PROJECT ON: HSBC Bank SPECIFICATION OF PROJECT: CORPORATE SOCIAL RESPONSIBILITY.

WORK CITED www.hsbc.co.in www.google.com

SPECIAL GUIDANCE Ms.Maneka Kumar

Mr.S.P.Mohanty

THANK YOU
Dushyant shah Jasmine Pancholi Jaswin Sood Nikita Mundada Nupoor Mehta Shekhar Satpute Vaibhav Desai