A PROJECT REPORT ON

Corporate Social Responsibility on

MERCEDES-BENZ
By

PARAG RANE PGDM (2011-13) Roll no. 56 IN PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT PROGRAME OF

Atharva School Of Business, Mumbai, Maharashtra

1

DECLARATION
I hereby declare that the Project Report titled An Corporate Social Responsibility On MERCEDES-BENZ is an original work done by me, submitted in partial fulfillment of the requirement for the award of the degree of Master of Business Administration to Atharva Institute of management Studies, Mumbai, under the guidance of Prof. Dr. Rekha Shenoy. The Information submitted is true & original to the best of my knowledge.

Place: Mumbai Date:

2

Signature:

CERTIFICATE
This is to certify that the Project titled Corporate Social the Responsibility of degree On of MERCEDES-BENZ Master of Business submitted in partial fulfillment of the requirements for award Administration to Atharva Institute of management Studies, Mumbai is a record of original work carried out by Mr. Parag Rane under the guidance of Prof. Dr. Rekha Shenoy during the academic year 20112013. This has not been submitted to any other university or institution for the award of any degree/ diploma/ certificate.

___________

__________

(Director) Date:

(Project Guide) Date:

ACKNOWLEDGEMENT
Success is not a destination, but a journey it is often said. I realized it even better during my Project at CSR in MERCEDES-BENZ. When I completed this journey, I may not have come this far in my learning without help, guidance and support of certain people who acted as guides, friends and torch bearers along the way. We wish to express our gratitude to our faculty Atharva Institute of management Studies, Mumbai, for having given us an opportunity to go through this project and extend our learning beyond the academic curriculum and to my guide ___________________________ who has been a source of constant inspiration for me. I shall be indebted to him for his guidance, co-operation and confidence .The guidance and support received from all colleagues and classmates who contributed to this project, was vital success of the project.

CONTENTS

1. Introduction Corporate Social responsibility (CSR) ..Page 06 2. Objective of the ReportPage 11 3. Methodology ..Page 12 4. Corporate Social Responsibility- India Perspective..Page 13 5. About Company MERCEDES BENZ (a) History ..Page 15 (b) Subsidiaries and Alliances........Page 15 (c) Quality Ranking............. Page 16 (d) Models ..Page 17 6. CSR Activity in INDIA (a) Role of CSR .Page 19
5

(b) CSR Understanding ..Page 20 (c) Expectations towards Company.Page 20 (d) Basic Conditions .Page 21 7. Area of Activity A. Poverty... ...........Page 24 B. Education Page 26 C. Health Page 29 D.Participation in Society.Page 32 E. Environment .Page 34 F. Others Page 36 8. CSR Activities in Rest of the WORLD..Page 39 9. Conclusion .Page 50

An Introduction - Corporate Social Responsibility

Corporate Social Responsibility (CSR) is the commitment by business to behave ethically and contribute to economic development while improving the quality of life of workforce and their families as well as of the local society. CSR is not charity. Charity means selflessly donating money, effort, time for needy. CSR is also aiming at social cause but is not a total selfless act. Looking at the individual words and their contextual meaning: Corporate organized business Social dealing with people/ society Responsibility accountability between corporation and society

At one end of the spectrum, CSR can be viewed simply as a collection of good citizenship activities being engaged by various organizations. At the other end, it can be a way of doing business that has significant impact on society. Some might say that it is easy for corporate houses to support CSR when the economy is growing at 8-9 per cent. The real test is what happens to CSR budgets during an economic downturn.

Most villages in India need basic infrastructures like schools, medical facilities, of vocational centers, parks, computer and and centers, counseling centers for employment. This needs the cooperation corporations NGOs, can government together organizations complete that create

empowered villages. With the involvement of more and more companies, a sense of competition would arise as they would eventually vie for honors that would create a win-win situation for all.

In the context of CSR, another very important issue is Sustainability. A very recent move by the Ministry of Company Affairs deserves a special mention here. The Ministry of Corporate Affairs (MCA) has taken the "Green Initiative in the Corporate Governance" by allowing paper less compliances by companies through electronic mode. This move by the Ministry is welcome since it will benefit the society at large through reduction in paper consumption and would contribute towards a sustainable greener environment.

In 2008, for the first time in India, a move to measure performance of businesses in sustainable development was launched and the measure was termed Sustainable Development Index (SDI)
8

Objectives of CSR Policy

CSR policy aims to uphold commitment to complement the efforts of the Government in the nation-building process. The policy aims at providing localized rural employment and livelihood opportunities to empower rural communities. It also aims at improving the lifestyle of rural people. The policy aims at creating business leadership ensuring social and environmental sustainability in a responsible manner. The to policy take adopts triple bottom line accounting and social methods expanding the traditional reporting framework into account environmental performance in addition to financial performance. The policy aims to create sustainable economies and transform stagnant lives into active partnerships health at and through synergized proactive handholding in areas of infrastructure, environment. education, The policy training, also aims fostering

innovation by partnering with Indian universities and providing digital inclusion for people who do not have access to Information and Communication Technologies (ICT).

 The

policy

pledges

to

work

with

international

communities towards mitigating global, human and environmental concerns.

CSR Virtue Matrix

It depicts the forces that generate CSR

Civil foundation CSR at most meets the societys baseline expectations. Instrumental CSR serves the cause of maintaining or enhancing shareholders value. Frontier Innovations in CSR Intrinsic CSR practices are a result of behavior towards advancing corporations strategy

10

Motivation for Corporate Social Responsibility

Because of the growing size and power of multinational corporate houses, bond rating agencies and investment funds are exerting increasing influence. In particular, they are demanding an accounting for non-financial measures of value creation as they seek to determine risk premiums. These include an assessment of CSR activities, as well as governance practices, management of intellectual capital, and transparency in reporting. The FIIs now consider CSR activity when deciding whether to invest in public traded companies.

11

OBJECTIVE OF THE REPORT

I have created this report to provide an integrated over all view of All the aspects such as Economic, Environmental and Social aspects of MERCEDES-BENZ business activities and products. This report gives us the external reflection of the companies CODE OF BUSINESS CONDUCTS AND ETHICS. This CORPORATE SOCIAL RESPONSIBILITY consists of the action taken for: Giving more care to environmental parameters.

12

 Promoting the health and well being of the society. Healthy and Hygiene Education. Economic Empowerment.

Methodology

The research on this project has been done by using secondary data. Secondary data is a data which is already collected by someone

13

and then it is reused by some one else for their research work.

The secondary data used in this project research is the MERCEDES-BENZ and different books on CSR.

Corporate Social Responsibility - India Perspective

The first concern of a company is the happiness to people connected to it.

The companies have understood that the retention of market depends upon productivity, goodwill, quality of their product, which can be expected from the people associated

14

to them. "The first concern of a company is the happiness to people connected to it" explains clearly about the major concern related to people of the organization, future challenges, corporate insight and corporate involvement in a community.

Many Companies are not doing any CSR activities Most Companies are only making token towards CSR in tangential ways such as donations to charitable trusts or NGOs, Sponsorship of events, etc. Most companies use CSR as a marketing tool to further spread the word about their business. For instance, donation of a token amount to some cause on purchase of a particular product. The fact that companies are hiring Only advertising few Indian agencies companies for their CSR a further highlight this. publish corporate sustainability report to measure and assess the impact of their business on the environment. Very few companies openly state the processes followed by them, the damage caused by these processes and the steps taken to minimize this damage. Very few companies state how much they spend on CSR. There is no mention of the amount spent in any of their balance sheet or annual reports. Most companies
15

just list and describe their CSR activities and seem to be spending minimal amounts on CSR. Very few companies are engaged in CSR activities in the local communities where they are based. Very few companies have a clearly defined CSR philosophy. Most implement their CSR in an ad-hoc manner, unconnected with their business process. Most companies spread their CSR funds thinly across many activities, thus somewhere losing the purpose of undertaking that activity Most companies appear reluctant to themselves fulfill their CSR unless it is mandatory by law Generally unaware speaking, or dont most care companies CSR. seem either all about However,

companies can be considered to be an upward learning curve with respect to CSR and it is expected that the situation will improve.

3. about Company Mercedes Benz

(a) History:
Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-powered car, the Benz Patent Motorwagen,
16

patented in January 1886 and Gottlieb Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the addition of a petrol engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler Motoren Gesellschaft. The first Mercedes-Benz brand name vehicles were produced in 1926, following the merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz company. Mercedes-Benz has introduced many technological and safety innovations that later became common in other vehicles. Mercedes-Benz is one of the most well-known and established automotive brands in the world, and is also the world's oldest automotive brand still in existence today. For information relating to the famous 3pointed star, see under the title Daimler Motoren Gesellschaft including the merger into Daimler-Benz.

Subsidiaries and Alliances:

As part of the Daimler AG company, the Mercedes-Benz Cars division includes Mercedes-Benz, Smart and Maybach car production.

Mercedes-Benz AMG
Mercedes-Benz AMG became a majority owned division of Mercedes-Benz in 1998. The company was integrated into DaimlerChrysler in 1999, and became Mercedes-Benz AMG beginning on 1 January 1999.

Mercedes-Benz McLaren
Main article: Mercedes-Benz SLR McLaren Between 2003 and 2009 Mercedes-Benz produced a limitedproduction sports car with McLaren Cars, an extension of the collaboration by which Mercedes engines are used by the Team McLaren-Mercedes Formula One racing team, which is part owned by Mercedes. McLaren ceased production of the SLR in 2009 and went on to develop its own car, the McLaren MP4-12C, launched in 2011.

17

Studebaker-Packard
In 1958 Mercedes-Benz entered into a distribution agreement with the Studebaker-Packard Corporation of South Bend, Indiana (USA), makers of Studebaker and Packard brand automobiles. Under the deal, Studebaker would allow Mercedes-Benz access to its dealer network in the U.S., handle shipments of vehicles to the dealers, and in return, receive compensation for each car sold. MercedesBenz maintained an office within the Studebaker works in South Bend from 1958 to 1963, when Studebaker's U.S. operations ceased. Many U.S Studebaker dealers converted to Mercedes-Benz dealerships at that time.

Quality R

ankings:

Since its inception, Mercedes-Benz had maintained a reputation for its quality and durability. Objective measures looking at passenger vehicles, such as J. D. Power surveys, demonstrated a downturn in reputation in these criteria in the late 1990s and early 2000s. By mid-2005, Mercedes temporarily returned to the industry average for initial quality, a measure of problems after the first 90 days of ownership, according to J.D. Power. In J.D. Power's Initial Quality Study for the first quarter of 2007, Mercedes showed dramatic improvement by climbing from 25th to 5th place, surpassing quality leader Toyota, and earning several awards for its models. For 2008, Mercedes-Benz's initial quality rating improved by yet another mark, to fourth place. On top of this accolade, it also received the Platinum Plant Quality Award for its Mercedes Sindelfingen, Germany assembly plant. In April 2011, Consumer Reports of the rates six of thirteen Mercedes-Benz models as "below average". However, J.D. Power's 2011 US Initial Quality and Vehicle Dependability Studies both ranked Mercedes-Benz vehicles above average.

18

Models:
Current model range Mercedes-Benz carries a full range of passenger, light commercial and heavy commercial equipment. Vehicles are manufactured in multiple countries worldwide. The Smart marque of city cars and Maybach luxury cars are also produced by Daimler AG. Passenger cars The following passenger vehicles were in production in 2011:

A-ClassHatchback B-ClassMulti-Activity C-ClassSaloon, Estate & Coupe CL-ClassCoupe CLS-ClassCoupe E-ClassSaloon, Estate, Coupe & Cabriolet G-ClassSports Utility Vehicle (SUV) GL-ClassSports Utility Vehicle (SUV) GLK-Class - Sports Utility Vehicle (SUV) M-ClassSports Utility Vehicle (SUV) R-ClassLuxury Tourer Vehicle (LTV) S-ClassSaloon SL-ClassRoadster SLK-ClassRoadster SLS AMGCoupe SLS AMGRoadster VianoMulti Purpose Vehicle (MPV)

Trucks Mercedes-Benz Trucks is now part of the Daimler Trucks division, and includes companies that were part of the

19

DaimlerChrysler merger. Gottlieb Daimler sold the world's first truck in 1886. Buses and vans Mercedes-Benz also produces buses, mainly for Europe and Asia. Mercedes-Benz produces a range of vans. The first factory to be built outside Germany after WWII was in Argentina. It originally built trucks, many of which were modified independently to buses, popularly named Colectivo. Today, it builds buses, trucks and the Sprinter van.

20

4.

CSR Activity in INDIA

India is widely regarded as a country in which corporate social responsibility has long played an important role. National nongovernmental organization and UN agencies are involved in public debate in the business communication and the media. However, the involvement of the business community is concentrated among a few long-established family-owned companies that contribute a significant amount in the field of CSR. The Indian subsidiaries of German companies are bound by their parent companies guidelines for social responsible behavior, but now these guidelines are actually implemented is left up to each subsidiaries. Their CSR activities focus on their employees (providing training and improving social security), the environment and aid efforts within India or in the region, which are currently concentrating on providing help to tsunami victims. Public policymakers are seeking to achieve inclusive and sustainable growth, and calling on private enterprise to contribute its share. There is no evidence of CSR activities in the informal sector of the Indian economy, which is responsible for slightly less than half of GDP and employs some 93 percent of Indias workforce. Indeed, workers in this sector are afforded no rights or protections whatsoever, and all indications are that no efforts are being made to fight poverty, promote education or health, protect the environment or encourage employee participation in business development. The UN Global Compact seeks to promote the CSR activities of businesses in India. However, it has not succeeded in involving important NGOs, or most importantly, the unions. The UN Global Compact is not well known within the

(a) The Role of CSR:

21

business sector or the NGO community. For some time now, German development organizations (GTZ, InWent) have been cooperating closely with the countrys important trade associations. The Indo-German Chamber of Commerce has developed its own approach to CSR, and provides conceptual and advisory support for German companies in India. While CSR is not at the top of the agenda of German political foundations, some of them are starting to devote more attention to this area. The German government, represented by the Ministry of Labor, is working to achieve greater international cooperation on CSR under the Heiligendamm Process, which includes India as one of five outreach countries. Talks have been held in the context of a formalized partnership between Germany and India. Representatives of the German business community meet with embassy officials at least once a year, during their monthly business lunches, to discuss CSR. Source: German Embassy, New Delhi

(b)

CSR Understanding:
Indias socialist approach to economic policy until the late 1980s required Indian businesses to make significant contributions to society, and strict controls were put in place to that end. This situation has changed considerably since economic reform policies were introduced; today few limits are placed on the independence of the business sector. This has largely met with approval among the populace. The cultural and religious beliefs that shape peoples personal lives appear to carry little weight when it comes to business activities. Religious and cultural behavioral norms apply primarily to the individual realm (cleanliness, respect for others and for nature, etc.), but not to behavior within the larger community or the political system.
22

Thus CSR activities tend to be dominated by religious or philanthropically oriented minorities such as the Parsi or Jains, which play a disproportionately influential role in private industry relative to their percentage of the overall population.

(c) Expectations towards Companies:

More than anything else, policymakers and society at large expect companies to manage their affairs successfully and to produce goods to meet the existing demand. However, the relationship between NGOs and the business sector is sometimes a difficult one, as many of the large industrial firms behave paternalistically toward Indian society. Efforts by German businesses in India to promote education and training garner a great deal of respect, but with the exception of two projects of the Indo-German Chamber of Commerce, they are limited to employee-oriented measures only. Unlike companies from English-speaking countries, German companies have not yet participated to any substantial degree in the discussion of CSR that is currently under way in the major Indian trade associations. Source: German Embassy, New Delhi

(d) Basic Conditions:

Implementation of international regulations and guidelines.

Core labor standards of the International Labor Organization (ILO)

1. Freedom of association and the right to collective bargaining Freedom of association and the right to collective bargaining are protected by law and are respected in the organized
23

(formal) sector. Disputes can be, and are, settled in the courts, but this avenue is problematic because of the length of the proceedings. There are no unions or wage agreements in the unorganized (informal) sector. Attempts to assert rights are often brutally suppressed. There is no evidence that the government or the unions attempt to intervene; NGOs are working to raise awareness of this problem. 2. Elimination of forced labor Forced labor is prohibited, but is nonetheless practiced in the unorganized sector. There is no evidence that the government or the unions have taken measures against it. Forced labor plays no role in the organized sector. 3. Abolition of child labor Child labor violates the constitutional right to ageappropriate development, but it is not prohibited. Instead, it is merely regulated by law (children are not allowed to work in certain high-risk areas). Enforcement is poor. The police occasionally carry out sensational actions to free child workers, but they have no effect on the overall problem. Consent to ILO standards is not to be expected. 4. Elimination of discrimination with respect to employment and occupation The prohibition is formally in place, but poorly enforced. Owing to the caste system and the widespread treatment of religious and ethnic minorities, discrimination is common throughout the country.

Industry initiatives
GLOBAL COMPACT NETWORK On-site contact: Mr. Uddesh Kohli Global Compact Special Advisor in India/GC Society in India Tel: +91-9811273142 E-mail: uddeshkohli (at) gmail (dot) com

24

Mr. Arun Maira Global Compact Special Advisor in India/Chairman Boston Consulting Group, India E-mail: Maira.Arun (at) bcg (dot) com Ms. Seema Arora Principal Counsellor & Head CII-ITC Center of Excellence for Sustainable Development E-mail : seema.arora (at) ciionline (dot) org India Partnership Forum (Collaboration between the Confederation of Indian Industry and UNDP India to promote and strengthen CSR in India.) http://www.indiapartnershipforum.org/unglcomp_india.htm UNDP Momin Jaan E-mail: momin.jaan (at) undp (dot) org Harsh Singh E-mail: harsh.singh (at) undp (dot) org GC Office Country Coordinator Ms. Melissa Powell E-mail: Powell1 (at) un (dot) org Tel: +1 212-963-0566

WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT On-site network since 2002 On-site contact: TERI-BCSD India Mr. R. K. Narang Convenor, TERI-BCSD India Distinguished Fellow The Energy and Resources Institute

25

Darbari Seth Block India Habitat Place, Lodhi Road New Delhi, 110003 India Tel: +91 11 2468 21 00 Fax: +91 11 2468 21 45 E-mail: core (at) teri.res (dot) in Website: http://bcsd.teri.res.in Ms. Annapurna Vancheswaran Associate Director Sustainable Development Outreach The Energy and Resources Institute E-mail: avanche (at) teri.res (dot) in and core (at) teri.res (dot) in

5. Areas of Activity
1. 2. 3. 4. 5. 6. Poverty Education Health Participation in society Environment Others

1. Poverty:

More than a quarter of the Indian population lives below the official poverty line, which is just under 330 rupees (INR) per month (= EUR 5.23) in rural areas and INR 455 (= EUR 7.21) in the cities. There has been an increase in the two income categories just above the poverty line those in marginal and economically at risk circumstances. A March 2008 study of Indias Common People found that about two26

thirds of all Indians either live in abject poverty or have barely enough income to meet their basic needs. These people cannot afford to pay for social security or for unforeseen expenses, for example because of illness. Poverty forces millions of people to work in circumstances in which they have absolutely no rights. Basic information

Life expectancy: Total population: 69.25 years; males: 66.87 years; females: 71.9 years (2008 EST.) Iinfant mortality: Total: 32.31 deaths/1,000 births; males: 36.94 deaths/1,000 births; females: 27.12 deaths/1,000 births (2008 EST.) Malnutrition: 20% (2002/2004) Access to clean water: 86% (2004) Access to sanitary facilities: 33% (2004) Human Poverty Index: 62nd of 108 (2007/2008) Gini Index: 36.8 (2004)

Areas of particular concern are bonded and child labor. In most cases, children who are working in rural India are not supplementing their family income, but simply working at jobs under worse conditions than adults and taking work that might otherwise be available to adults. Participants Possible participants include organizations for development cooperation (GTZ, CIM, etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Neumann Foundation and the Konrad Adenauer Foundation).

27

GTZ India http://www.gtz.de/en/aktuell/607.htm InWent http://www.inwent.org/v-ez/lis/indien/index.htm Indo-German Chamber of Commerce http://www.indo-german.com Konrad Adenauer Foundation, India office http://www.kas.de/proj/home/home/38/2/index.html

Opportunities for fighting poverty

Companies might help to provide children with literacy training, improved overall education and vocational training so that they are able to get a good job. This would also allow parents access to jobs now performed under worse conditions by children.

Risks in fighting poverty

German companies located in India are reluctant to talk about their involvement in this area; some have specifically asked that their involvement not be publicized. COMPANY EXAMPLE Bayer AG Bayer Crop Science has developed Learning for Life program intended to help children in rural India escape the vicious circle of child labor and illiteracy. This program focuses on eliminating child labor in supplier companies and involving the children concerned in the Crop Science program.

28

Randstad Deutschland GmbH & Co.KG CSR WeltWeit case study (German): VSO Voluntary Service Overseas

2. Education:
Vocational training is inadequate even in the formal sector of the economy; in the informal sector it is practically nonexistent. The problem begins in the schools, where India spends little money even compared with the developing countries. There is a lack of teachers, schools and instructional materials. Half of all children leave school after no more than five years; two-thirds of those who complete primary and secondary school are not qualified for vocational training in the public system. Meanwhile, most graduates of public and private vocational schools are not employable. Three years after completing school, half are still unemployed and the majority of those who are employed hold a job that is completely unrelated to their education. Basic information

Public spending on education (share of GDP): 3.2% (2005) Compulsory school attendance: ages 6 14 Rate of school enrollment: 90% of children who are required to attend school (2004) Literacy (definition: those over the age of 15 who can read and write): Total population: 61%; males: 73.4%; females: 47.8% (2001 census) HDI Education Index: Rank 128 out of 177 (1 = max., 0 = no education) Average years of education: Total population: 10; males: 11; females: 9 (2005)

29

The Indian government has recognized that this is a serious problem for the countrys development. In the area of education, India has fallen behind not only China, but also regional competitors such as Indonesia and Malaysia. In some sectors it ranks behind even Sri Lanka and Bangladesh. It has developed an array of programs to improve training opportunities and recognize informal training, but is determined to avoid any fundamental changes in the existing system. However, India is working closely with Germany to adopt best practices aimed at improving vocational training. Participants Possible participants include organizations for development cooperation (GTZ, CIM, etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Neumann Foundation and the Konrad Adenauer Foundation). GTZ India http://www.gtz.de/en/aktuell/607.htm InWent http://www.inwent.org/v-ez/lis/indien/index.htm Indo-German Chamber of Commerce http://www.indo-german.com Konrad Adenauer Foundation, India office http://www.kas.de/proj/home/home/38/2/index.html Opportunities and risks A general risk of providing occupational training in German companies is that trained workers may then be lured away by offers of high salaries, which is why many German companies are ambivalent about such training.
30

COMPANY EXAMPLE Indo-German Chamber of Commerce, Mumbai The Indo-German Chamber of Commerce operates IndoGerman Training Centers (IGTC) that provide practical 18month training in business administration based on the German dual system, in partnership with Berufsakademie Karlsruhe. Contact: Director IGTC, Radhieka R. Mehta Opportunities: Practical, high-quality training using up-to-date occupational education materials and curricula. This will further reinforce the positive public image of German companies. Risks: Little impact on the Indian vocational education system. Daimler India, Pune; Government Polytechnic, Pune; CIM Deutschland Partnership between Daimler and the Polytechnic College, Pune, in developing curricula and training instructors. Daimler provides additional instructors from Germany and supplies training materials and Mercedes Benz vehicles. The goal is to provide a model of public-private partnership in education and vocational training. Opportunities: High-quality education/training geared to the needs of the business world and the job market; an opportunity for a successful public-private partnership. Daimler AG, Metro Group, IHK Koblenz Active participation by private German firms and chambers of commerce in developing an ongoing IndoGerman partnership in vocational education. So far this has meant being part of the German presence at a Global Skill Summit in New Delhi and participating in
31

negotiations on formalizing Indo-German partnership. There are plans to join an Indo-German task force. Opportunities: Demonstration of the sustained PPP character of German vocational education, introduction of important aspects of PPP to the Indian setting, and general development and broadening of the Indo-German relationship. Risks: Problems with implementation and a lack of Indian companies willing and able to provide training. Global Reporting Initiative CSR WeltWeit case study (English): Transparency in the Supply Chain Randstad Deutschland GmbH & Co.KG CSR WeltWeit case study (German): VSO Voluntary Service Overseas

3. Health:
Basic information

Public spending on health (share of GDP): 0.9% (2004) Medical care: 60 physicians per 100,000 residents (2000-2004) Infant mortality: Total: 32.31 deaths/1,000 births; male: 36.94 deaths/1,000 births; females: 27.12 deaths/1,000 births (2008 EST.) Maternal mortality: 540 deaths/100,000 births (19902004) Child malnutrition: 47% of children under the age of 5 (1996-2005) HIV/AIDS prevalence rate (>15 years): 0.9% (2001) HIV/AIDS cases: 5.1 million (2001 est.)
32

HIV/AIDS deaths: 310,000 (2001) Life expectancy: Total population: 69.25 years; males: 66.87 years; females: 71.9 years (2008 EST.)

Progress has clearly been made in healthcare during the 60 years since Indian independence. Nonetheless, a relatively large share of the population suffers from easily avoidable illnesses. Child mortality and malnutrition rates are among the highest in the world. It appears likely that India will not achieve its millennial development goals in this area. Participants Possible participants include organizations for development cooperation (GTZ, CIM, etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Neumann Foundation and the Konrad Adenauer Foundation). GTZ India http://www.gtz.de/en/aktuell/607.htm InWent http://www.inwent.org/v-ez/lis/indien/index.htm Indo-German Chamber of Commerce http://www.indo-german.com Konrad Adenauer Foundation, India office http://www.kas.de/proj/home/home/38/2/index.html The regional and class differences in the populations health status have worsened; the situation is particularly dire in the northern Indian states. Illnesses such as AIDS, leprosy and others are highly stigmatized; those affected are ostracized. Because of the weak structures and poor quality of the public healthcare system, most of the money spent on healthcare goes to the private sector and in rural areas often
33

to unqualified providers. Unexpected expenses resulting from illness are among the leading causes of financial insecurity and household poverty. COMPANY EXAMPLE Deutsche Post/DHL with UNICEF An integrated project to promote childrens survival and development in the Nan durbar district of the state of Maharashtra, where 60% of the population lives in abject poverty. It includes regularly scheduled health and nutrition days, child daycare groups and systematic training in infant and child care for 2,000 healthcare workers and midwives. Goals for 2010 include a 50percent reduction in the rate of malnutrition among children under six, a reduction in infant mortality to less than 30 deaths per 1,000 live births and a 30 percent reduction in maternal mortality, as well as a 75-percent drop in the number of child marriages. Opportunities: Public recognition for the project Risks: None are known; sustainability problems are possible Siemens AG Nationwide AIDS Walk for Life with employee participation, accompanied by a mobile healthcare vehicle Opportunities: Raising public awareness of AIDS and other stigmatized illnesses; public recognition for the company Risks: Sustainability problems; short-term nature

34

CompWare Medical GmbH CSR WeltWeit case study (German): Flchendeckende hochwertige Methadontherapie als Mittel der AIDS/HIVPrvention und Versorgung Randstad Deutschland GmbH & Co. KG CSR WeltWeit case study (German): VSO Voluntary Service Overseas

4. Participation in Society:
Employee participation In the formal (organized) sector of the Indian economy, sophisticated labor laws are in place to regulate workplace requirements (light, ventilation, safety, sanitary facilities, lounge areas/cafeterias, social security, minimum wages). The respective unions which are organized at the company level are basically responsible for representing employee interests. Beyond serving as a kind of works council, they are also able to engage in collective bargaining, so they can carry out negotiations on earnings, work hours, vacation periods and the like. German companies prefer to exclude the unions from their operations because they often lead to conflict, sometimes including violent confrontations and damage to property. Because of the lack of well qualified or even minimally qualified workers, German companies generally offer wages and benefits that significantly exceed what is required by law. Basic information

Ethnic groups: Indo-Aryan 72%, Indo-European 25%, Mongolian and others 3% (2000)

Rights of individuals with severe disabilities Disability policy is still in its infancy. Fewer than 130 of the
35

countrys more than 600 districts offer facilities for the disabled. The World Bank charges that people with disabilities are often shut out of public, cultural and social life. Households with disabled family members are significantly poorer than average. The situation of the mentally handicapped and mentally ill is especially dismal; they are particularly stigmatized, and this is true in rural areas more than in the cities. Barrier-free access appears to be practically nonexistent. There is little willingness to hire the disabled in private industry. Participants Possible participants include organizations for development cooperation (GTZ, CIM, etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Neumann Foundation and the Konrad Adenauer Foundation). GTZ India http://www.gtz.de/en/aktuell/607.htm InWent http://www.inwent.org/v-ez/lis/indien/index.htm Indo-German Chamber of Commerce http://www.indo-german.com Konrad Adenauer Foundation, India office http://www.kas.de/proj/home/home/38/2/index.html COMPANY EXAMPLE SAP Ltd., Bangalore SAP offers its skilled workers wages that far exceed those required under collective bargaining agreements and large pay increases each year, along with free cafeteria
36

meals and such benefits as family days to promote social integration. After five years with the company, employees are entitled to a company car. The company has its own bus service; after dark, women are escorted to their homes. This improves and stabilizes the social position of employees and their families, increases their sense of responsibility and belonging, and makes them less interested in leaving the company. Siemens Ltd. India and Gurgaon, Ability Foundation (NGO) The Siemens companies in India make active efforts to hire disabled people who have the necessary training. They currently (as of 2007) employ 45 disabled persons, two of them with hearing impairments and the others with physical disabilities. This is an effort to integrate the disabled into society and the working world, as well as fulfilling statutory quotas for disabled employees. Global Reporting Initiative CSR WeltWeit case study (English)): Transparency in the Supply Chain

5. Environment:
Basic information

CO2 emissions: 4.6% of total world output (2004) CO2 emissions per capita: 1.7 metric tons (2004) Energy consumption: 488.5 million kWh (2005)

37

Water consumption (households/industry/agriculture): Total: 645.84 km3/year (8%/5%/86%); per capita: 585 m3/year (2000) Hydropower, solar, wind, geothermal energy: 1.7 % of primary energy consumption (2005)

Large areas of India have serious environmental issues. The countrys water reserves, which are scarce in any case (4% of the worlds water supply for 17% of the worlds population), are largely polluted, and demand for groundwater is much too high, particularly in densely populated areas. Participants Possible participants include organizations for development cooperation (GTZ, CIM, etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Neumann Foundation and the Konrad Adenauer Foundation). GTZ India http://www.gtz.de/en/aktuell/607.htm InWent http://www.inwent.org/v-ez/lis/indien/index.htm Indo-German Chamber of Commerce http://www.indo-german.com Konrad Adenauer Foundation, India office http://www.kas.de/proj/home/home/38/2/index.html Deforestation has reached an advanced stage and air pollution is a serious problem. Despite widespread religious and cultural beliefs that require respect for nature, far less importance is attached to environmental protection than to economic growth. Because it lacks domestic sources of raw
38

materials, and because of its careless handling of energy resources (outdated production, defective distribution systems, outdated and energy-intensive consumption patterns, machines and cars), India is particularly hard hit by energy shortages. The search for other sources of energies (nuclear power, renewable energies) is a high political priority. COMPANT EXAMPLES Bayer AG CSR WeltWeit case study (German): Bayer AG Strategische Partnerschaft mit United Nations Environment Programme im Bereich Jugend und Umwelt Daimler India Partnership between Daimler India, Pune, the University of Hohenheim and the Council on Scientific & Industrial Research, New Delhi. Jatropha biodiesel project to obtain biodiesel from the fruit of the jatropha plant, which grows on soil that has eroded and is no longer cultivatable. A feasibility study has been completed to determine whether it can be used in vehicle engines; an efficiency review is under way. Opportunities: Job creation and additional income for rural areas, less use of fossil fuels and a reduction in CO emissions, use and recultivation of eroded soil, consolidation of the vehicle market. Risks: Indias cultivatable areas are used very intensively, so there is a risk of competition between growing food and growing renewable raw materials, and of confrontation with environmental advocacy groups.

39

Global Reporting Initiative CSR WeltWeit case study (English): Transparency in the Supply Chain Randstad Deutschland GmbH & Co.KG CSR WeltWeit case study (German): VSO Voluntary Service Overseas

6. Others:
Disaster aid after the tsunami The number of deaths caused by the tsunami is unknown, but certainly far exceeds 100,000, and there have been untold injuries and property damage. The Indian government rejected aid from other countries as always in the case of natural disasters but agreed to accept aid from private sources. The German business community The German business community, led by Siemens, ThyssenKrupp, Bayer and Deutsche Bank, joined with the German embassy and general consulates to establish a foundation that has worked together with an Indian NGO (Srinivasan Services Trust, SST) to finance and organize the rebuilding of five villages in two districts of Tamil Nad. The goal is to help 80 percent of those affected to rise above the poverty line by approximately 2010. This effort includes the following projects, costing EUR 2.2 million:

Construction of two centers, one for first aid and the other for treating trauma, each able to treat 150 to 200 patients daily Establishment of a civic center in each village Fishing equipment and training programs to help secure long-term income Training in the repair of damaged equipment
40

Training programs for other types of marine management (cultivation of kelp and fish farming) through cooperative self-help groups Construction of 150 homes per village Repair of public facilities such as roads, sewage systems, preschools and schools, as well as education and professional development for teachers

Contact: German Business Community, c/o German Consulate General, Mumbai Opportunities and risks: Opportunities: Restoring opportunities for those affected by the tsunami to earn a living; public recognition Risks: Sustainability after the project is concluded Siemens Emergency aid in the amount of EUR 50,000 for 5,000 people in partnership with the Indian Red Cross, in the form of family kits (clothing, food, essential articles of daily use, beds, etc.), with voluntary participation by company employees. Long-term development in cooperation with the German Business Group. Opportunities and risks: Opportunities: Immediate aid in acute emergencies; public recognition Risks: Sustainability problems

Data & facts Country: Republic of India Capital: New Delhi

41

Area: 3,287,000 km Population: 1.027 billion (2001 census) Economic system: Market economy with a high proportion of state-owned companies Polity: Federal republic Unemployment rate: 7.2 % (2007 EST.) Inflation rate (CPIX): 6.4 % (2007 est.) GDP: 1.099 trillion USD (2007 est.) = 870 billion EUR GDP/Head: 2,800 USD (PPP, 2007 est.) = 2,000 EUR Religions: Hindu (ca. 80.5%), Muslim (ca. 13.4%), Christian (ca. 2.3%), Sikh (ca. 1.8%) as well as Buddhist, Jain, Parsi and others HDI: 128th of 177 (2007/2008) CPI: 72nd of 179 (2007) BTI: Status Index: 25th of 125; Management Index: 19th of 125 (2008)

42

6. CSR activities in rest of the world

Business success and CSR go handin-hand

Protecting the giant pandas is one of Daimler's CSR initiatives in China.

Defining the true success of a corporation today goes beyond business growth and product excellence. Increasingly, more companies are recognizing the importance of giving back to the societies where they operate, demonstrating their deep, long-term commitment to the market. Daimler Northeast Asia Ltd, a company that has experienced exponential growth in China over the past few years, has always been ahead of the game in this respect, with its first philanthropic efforts dating back to 1994. "Our heart clearly remains close to the development of China through our firm commitment to economic, ecological and social responsibilities here - both now and in the future. This is where we have been given the opportunity to achieve
43

remarkable results - and it is here that we also give our best to the Chinese people and society," said Ulrich Walker, chairman and CEO of Daimler Northeast Asia Ltd. The company takes pride in its corporate social responsibility (CSR) program, which received a further boost in June last year through the establishment of the MercedesBenz Star Fund, an integrated, systematic and long-term charity platform focusing on five key pillars: environmental protection; education; music, arts and sports; culture of driving; as well as charity and disaster relief. "Our CSR approach here is sustained, comprehensive and in tandem with the needs of the Chinese society. We have demonstrated our long-term commitment through establishing the Mercedes-Benz Star Fund in collaboration with our nationwide dealers, having a 30-million-yuan startup fund. We see ourselves as a positive driving force, engaging dealers, customers and employees alike, to be part of this cause and extend the influence of our programs," said Klaus Maier, president and CEO of Mercedes-Benz (China) Ltd.

Five core areas

With such all-encompassing causes, Daimler and MercedesBenz continue to touch the lives of many people, achieving impressive outcomes in their chosen five core areas: Environmental protection - Since 2007, the Green Legacy Program has seen the effective preservation of World Heritage Sites in China, including the Sichuan Giant Panda Sanctuaries, South China Karst, Mount Lushan, Mount Sanqingshang, Dujiangyan and Mount Qingcheng. Now in its second three-year cooperation with UNESCO for this program, Mercedes-Benz has pledged a total of 29 million yuan towards protecting heritage sites, successfully paving the way for sustainable preservation.

44

Earlier this year, Daimler also hosted the second "Daimler Sustainability Dialog" in China that featured discussions with high-level representatives from government organizations, academic institutions, international organizations and business partners, about perspectives on sustainability for the environment, human resources and society - all with a specific China focus. Education - Over the years, Daimler and Mercedes-Benz have been strong supporters of education. Through continued efforts, a total of 125 Hope Happy Music Classrooms have been established in 22 provinces across China, providing music classrooms that have benefited about 40,000 students. Professional teacher training courses were also organized to guarantee that teachers have the skills to provide valuable music education. Daimler has also worked with the China Foundation for Youth Entrepreneurship and Employment to help young people start their own business, in addition to supporting various other educational and charitable causes. Music, arts and sports - With a belief that music and arts enrich life, this year saw the renewal of three-year cooperation with the National Center for Performing Arts, ensuring the continuance of the Weekend Concert Series, thereby bringing music and arts closer to the public. In 2008, Mercedes-Benz launched the ongoing "Swing for the Stars" junior tennis development program, together with the Chinese Tennis Association, to train young local tennis talents. Tennis stars and brand ambassadors, Li Na and Roger Federer, have served as coaches at training clinics. Culture of driving - As the inventor of the automobile, the company has firmly taken on the responsibility of promoting road safety.

45

As such, Mercedes-Benz launched two new programs: the "This, I Promise" campaign, which advocates road safety by taking pledges from road users, and the Mercedes-Benz Cup 2011 China Best Driver Contest, a safe driving skills competition that traveled to the major cities of Beijing, Shanghai, Guangzhou and Chengdu, spreading the safety message. Charity and disaster relief - Daimler and Mercedes-Benz have extended help when most needed. After the deadly earthquake hit Sichuan in 2008, over 5 million yuan was raised to help build the new Mercedes-Benz Elementary School in Shifang. In 2010, when another earthquake hit Yushu City, Daimler and its partners donated 5 million yuan towards relief efforts. In a bid to ensure the sustainable development of its various initiatives, the company took a further step this year by founding the Mercedes-Benz 'Star Ambassador' program during the ceremony marking its first anniversary of the Star Fund in June. This program serves as a volunteer initiative to drive greater social participation from employees, dealers, customers, and other like-minded individuals, for its charitable activities. More recently, the company embarked on a brand new project - the Mercedes-Benz Star Base - to give professional, targeted and regular training for teachers in Hope Schools equipped with music classrooms provided by MercedesBenz, so as to enhance overall education quality. Its first base was established jointly with Harbin Normal University's music college and the China Youth Development Foundation just last week.

46

Chairman and CEO of Daimler Northeast Asia Ltd Ulrich Walker with students at the Mercedes-Benz Elementary School in Shifang, Sichuan province.

Bright night for Mercedes-Benz philanthropy

Mercedes-Benz executives, dealer representatives and program partners of the

47

Mercedes-Benz Star Fund jointly launch its volunteer ambassador program by lighting up the three-pointed star. Photos provided to China Daily

Klaus Maier, president and CEO of Mercedes-Benz (China) Ltd and chairman of the Mercedes-Benz Star Fund, shares the story of the CSR initiative's journey.

Auto icon announces new corporate social responsibility initiative Under a ceiling painted with blue skies and twinkling with shimmering stars at the National Center for the Performing Arts (NCPA) in Beijing, Mercedes-Benz celebrated the first anniversary of its Star Fund yesterday, marking a milestone in the carmaker's long-term commitment to China. Since June 30 last year, the Mercedes-Benz Star Fund has embraced the company's core corporate social responsibility (CSR) programs - nature protection, music, arts and sports, culture of driving, education as well as social care and disaster relief programs. Following the Star Fund's many achievements in the past year, Mercedes-Benz announced the official launch of its 'Star Ambassador' Volunteer Program, the latest initiative to

48

further develop its CSR program through encouraging public involvement. Acting as a bridge between the Mercedes-Benz Star Fund and the public, the 'Star Ambassador' program provides individuals with a passion to serve with the opportunity to work with the company's CSR causes. Under the program, the company will develop and share volunteer resources with its partners to increase engagement. Mercedes-Benz also plans to further its efforts in education by rallying celebrities, employees, dealerships and likeminded individuals from all over the country to help uplift music education in 125 Hope Schools across China through this volunteer initiative. At the ceremony, the NCPA hall was lit up with twinkling stars symbolizing the launch of the 'Star Ambassador' Volunteer Program - along with the first group of MercedesBenz Star Ambassadors including violinist Lu Siqing, Li Biao and his youth percussion group, famous singer Shang Wenjie and volunteers from various music institutions who pledged their support for this program. Representatives from Mercedes-Benz's Star Fund partners such as NCPA, China Youth Development Foundation, UNESCO, dealers, and other guests were also present to witness the launch.

49

Klaus Maier, president and CEO of Mercedes-Benz (China) Ltd and chairman of Mercedes-Benz Star Fund, said: "From our past years of CSR actions to the establishment of the Star Fund last June; and to the review of our achievements today with our valued partners, we have laid a very solid foundation in fulfilling our social responsibilities and longterm commitment in China. The success from the 'Inspiring the Future' Happy Music Classroom Program is one such milestone in our CSR program."

"We are excited to launch the new 'Star Ambassador' Volunteer Program as a forward-looking, open model that will further increase our positive contribution to society through promoting public participation in our various activities. This perfectly supports our goal of sustainable CSR," Maier said. In another move, the carmaker now has its 'Star Ambassador' Program website online at www.csr.Mercedesbenz.com.cn for volunteers to register. CSR initiatives The automaker is no stranger to CSR with its related activities dating back to the 1990s.

Li Biao and his youth percussion group, accompanied by students from Hope Schools, on stage at the National Center for the Performing Arts.

50

Today the company continues to drive the development of CSR through many projects. As an integrated, systematic and long-term platform to manage its social responsibility programs in China, the Mercedes-Benz Star Fund has achieved successes throughout the past year. Its Green Legacy Program achieved a milestone as it renewed another three-year cooperation with UNESCO to protect the World Heritage sites with improved management. In education, the 'Inspiring the Future' Happy Music Classrooms program successfully saw 125 Hope Schools receiving brand new music equipment in their classrooms and their teachers also underwent specialized music training. Two unique programs were also launched under the Culture of Driving CSR initiative - Mercedes-Benz Cup 2011 China Best Driver Contest and 'This I Promise' road safety awareness campaign that have since been rolled out across the country to promote proper road conduct among the public. "As a co-partner of the Mercedes-Benz Star Fund and its key programs, we, have witnessed Mercedes-Benz's passion and dedication in carrying out the professional work to fulfill their corporate responsibility to the society. This serves as a role model for other corporations and reinforces our confidence in our future cooperation," said Tu Meng, secretary-general of China Youth Development Fund. Through its CSR initiatives, Mercedes-Benz said it has been proactive in its duties as a responsible corporate citizen through its unique competitiveness in sustainable development that in turn enriches its 125-year-old brand.

51

First Anniversary of the Mercedes-Benz Star Fund and Star Ambassador Volunteer Program Launch Ceremony held in Beijing
The Mercedes-Benz Star Fund, the automakers largest start-up amount for a charity fund worldwide outside Germany, today commemorated its first anniversary. Distinguished by its past year achievements in the five core areas of environmental protection, education, music, arts and sports, culture of driving and social care, the Mercedes-Benz Star Fund announced another boost to its corporate social responsibility (CSR) efforts by launching the new Star Ambassador Volunteer Program. This is also its latest initiative to enhance its CSR program in China through encouraging greater participation and providing a more sustained and strategic development of its social contribution efforts. At the commemoration event held at the starlit theatre of the National Center for the Performing Arts (NCPA), Mr. Klaus Maier, president and CEO of Mercedes-Benz (China) Ltd., and chairman of the Mercedes-Benz Star Fund, said: From our past years of CSR efforts to the establishment of the Star Fund last June; and to the review of our achievements today with our valued partners, we have laid a very solid foundation in fulfilling our social responsibilities and longterm commitment to China. The success from the Inspiring
52

the Future Happy Music Classroom Program is one such milestone in our CSR program. We are excited to launch the new Star Ambassador Volunteer Program as a forward-looking, open model that will further increase our positive contribution to society through promoting public participation in our various activities. This perfectly supports our goal of sustainable CSR, Mr. Maier said. These Star Ambassadors will first get the opportunity to participate as volunteer teachers at the Mercedes-Benz Inspiring the Future Happy Music Classrooms in a bid to tackle the challenge of the lack of qualified music teachers in Hope Schools. As such, top music institutions including the National Center for the Performing Arts, Central Music Conservatory, music colleges from Beijing Normal University and Shanghai Normal University, and China National Master of Fine Arts Supervisory Committee, have all pledged their firm support with Mercedes-Benz towards this initiative, to contribute to the students music education. The NCPA hall was lit up with glittering stars symbolizing the launch of the Star Ambassador Volunteer Program along with the first group of Mercedes-Benz Star Ambassadors pledging their support, including Li Biao and his youth percussion group, singer Shang Wenjie, representatives from NCPA, etc. Those interested can also now register to become a Star Ambassador at the program website at csr.mercedesbenz.com.cn. Volunteers can leverage this platform to exchange information with each other and receive the latest program updates. This will foster a systematic platform for Mercedes-Benz to develop and share volunteer resources with more program partners and publicize volunteer engagement. As an integrated, systematic, long-term platform to manage its social responsibility programs in China, the MercedesBenz Star Fund, which was set up jointly by the automaker and its nationwide dealers, has achieved great success
53

throughout the past year. Its Inspiring the Future Happy Music Classrooms program successfully saw 125 Hope Schools receiving brand new music equipment in their classrooms ahead of schedule, and the music teachers also underwent professional music teaching courses. The Green Legacy Program achieved a milestone as Mercedes-Benz renewed its three-year cooperation with UNESCO to protect the World Heritage Sites with improved management. Furthermore, two unique programs were also launched under the Culture of Driving CSR pillar: MercedesBenz Cup 2011 China Best Driver Contest and This, I Promise road safety awareness campaign that have already been launched across the country to promote proper road conduct among the public. Program partners of the Mercedes-Benz Star Fund including the National Center for the Performing Arts, Tennis Sports Management Center of National Sports General Administration, UNESCO, dealer representatives and employees were invited to the commemorative event. Other beneficiary organizations, such as the China Conservation and Research Center for the Giant Panda, as well as a number of CSR personalities, and academia and were also present. Commenting on the past year of partnership, Mr. Tu Meng, Secretary-General of the China Youth Development Fund (CYDF) said: As a co-partner of the Mercedes-Benz Star Fund and its key pillar programs, we have witnessed Mercedes-Benzs passion, dedication in carrying out the professional work in fulfilling their social responsibility, including its efforts in bringing music and hope to 40,000 children. This serves as a role model for other corporations and reinforces our confidence in our future cooperation. Through all its innovative CSR initiatives, Mercedes-Benz has been proactively fulfilling its duties as a responsible corporate citizen and developing its unique competitiveness

54

in sustainable development, all to enrich its 125-year brand heritage.

Conclusion
Organizations are coming to realize the bottom-line benefits of incorporating sustainability into their DNA. Its beneficial for attraction and retention and its the right thing to do. HR is the key organizational leader and can take the lead or partner with other executives to work cross-functionally to integrate CSR objective into how business gets conducted. HR practitioners can act as translators of the organizations CSR commitment vertically or horizontally across departments. Most will find upon reading this report that they have many good practices underway. Many will find
55

they have a new structure for their thinking they can apply practically in the wok place. Some will believe the current economic downturn will put these ideas on the backburner until the economy rebounds, while others will think that organization which abandon the CSR integration in the downturn will lose ground and breed cynicism in bigger times. Regardless of the point of view, all agree that effective HR leadership on CSR integration requires Board, CEO and Executive commitment to be successful. Indeed the road map is predicted on the assumption of this top level commitment. However more and more organizations are committing to sustainability and to embedding CSR into all that we do, so it is hoped the 11 steps provide some guidance as to how to go about doing this. The firm of the future is expected to have undergone significant transformation such that CSR no longer becomes managed as a separate deliverable, but is part of the experience of being an employee in an organization that lives its value. For human resource professionals embarking on CSR and deepening their CSR experiences, this roadmap can help them understand their role in sustainability and CSR and how they can foster an environment that embeds a CSR ethic in the way we do business around here.

56