CSR Intnl Conf Highlights.goldenpeacock2014

Convention 2014Mauritius Global

A Journal of the INSTITUTE OF DIRECTORS • February 2014 • India

`Volume. XIX No. 02/2014 / 45/- `

This month's Articles tailored for you

Golden Peacock AwardsAbout 734,000 likes . Millions talking about this

Liked Following Meassage

Organization

Map Events

www.iodonline.comGet Quality Times on our website

Now! IODInstitute of Directors

BuildingTomorrow’sBoards

PhotosUpdate Status

Likes

Golden Peacock Awards, established for over 23 years, by the Institute of Directors, India are now regarded as a benchmark of Corporate Excellence in India and now increasingly abroad. No award has achieved such respectability as the Golden Peacock. Today, the Secretariat receives over 1000 entries from over 25 countries annually. The quality of entries is evidence of their unwavering commitment to continuous improvement and achieving world-class performance. Golden Peacock Awards has given remarkable boost to the industries through its self-assessment process.

MauritiusDubai

London

About 734,000 results (0.30 seconds)

golden peacock awards

Videos Maps More Search toolsWeb News Images Connect withover 30,000 Sr. Executives

JOIN OURNETWORK

13 - 15 April 2014

Board Effectiveness: Constructive Challenges in the Boardroom

Theme:

NE

XT E

VE

NT

PAGE 3

ReportP- 44

Strategizing CSR – Creating Shared ValueNamita Vikas

CSR for Nation BuildingLt. General Rajender Singh (Retd.)

A Social Business Model to Increase Healthcare Access For 'bottom of Pyramid' in Rural IndiaSundeep Kumar

India Corporate Responsibility Reporting Survey 2013KPMG India

P- 13

P- 18

P- 22

P- 5

CONTENTS

EDITORPradeep Chaturvedi

SUB EDITORReji Mathew

MANAGER DESIGNTeena Lejo

DelhiM-52, (Market) Greater Kailash - II,New Delhi-110048Tel: 011-41636294,41636717Fax: 011-41008705E-mail: [email protected]: www.iodonline.com

Mumbai1092-C Wing Oberoi Garden Estate, Chandivali Andheri – East, Mumbai 400 072Tel : +91- 22-40238141 / 42 / 43Fax : +91-22-67582231E-mail: [email protected]

REGIONAL OFFICES

Bengaluru# 201, Oakland Apts, Ulsoor Road, Next to Vidyadeep College, Bangalore - 560 042Board Nos: 080: 25092234 .Fax: 080: 25583490Email: [email protected]

IndiaLife Subscription Rs 6000 Annual Subscription Rs 500Each Issue Rs 45OverseasAnnual Subscription $ 80

SUBSCRIPTION RATES FOR QT

STATE CHAPTERSKerala: (M) 09446488181Tamil Nadu: (M) 09840295802

Life Subscription $ 400

Printed at Maximum PackersOkhla Phase-1, New Delhi

Published by : Institute of Directors

Total Pages - 56

EDITORIAL BOARDLt Gen JS Ahluwalia, PVSM (Retd.)Pradeep ChaturvediManoj K. RautAshok Kapur, IAS (Retd.)

IOD (HEAD OFFICE)

FROM THE EDITOR

The 'power of brands' has become more vital for sustainability of businesses due to competitive market place, which is rapidly shrinking in view of the internet revolution. Brands give satisfactory level of comfort for people to buy and use products in the long run. Recent observations indicate that brands appear and disappear very rapidly mainly due to disconnect between the brands and its customers. A number of reasons could be assigned including from planning by the boards at the top level to after sales service. There are a number of elements that need to be taken care of. IOD has recently concluded an important International Conference on “Strategy to Leverage CSR for Competitive Advantage”.The participants and experts focused on corporate citizenship where CSR was defined as a new agenda beyond governance. CSR was also reflected as unlocking the value and serve as a driver of social inclusion, sustainability and profits. The social entrepreneurs were considered to unlock the social value of companies. Strategic corporate planning was considered a challenge for boards; but that provides the best way of preparing for sustainability of business.The conference was an important event concluding the

th24 year of IOD and leading the way to Silver Jubilee Year. IOD is recognised to have brought around a silent revolution in boardroom practices leading to sustainable development practices. IOD is the initiator of the movement in the country through training of our Directors to attain their leadership role. Its efforts have brought around significant impact on building tomorrow's boards by focusing on ethical, transparent, accountable and equitable decision making processes. IOD while focusing on training of Directors has continuously studied the employability concept. A recent study conducted by TeamLease Services reflects that less than 10% of Indian MBA graduates are employable. The study has found that less than half of

the students tested have some knowledge of key industry terms and concepts in their areas of specialisation. Being employable requires for a candidate to learn and imbibe aspects which are not taught formally in the academic institutions. Employability of a candidate largely depends on his/her understanding of academics with reference to the industry norms and practices. Experts have realised that to improve employability of candidates the faculty should be composed of the industry experts. The teaching methodology should compulsorily have case study approach. This structural change will enable the students to learn from industry experts, know what industry needs and helps to understand and adapt the changing needs of the industry. IOD has very appropriately launched its Masterclass for independent Directors that has faculty drawn from amongst the experienced practitioners and who implement the case study models for imparting knowledge. This approach has helped in creating a critical mass of trained personnel to become independent directors and fulfil the requirement of the Companies Act 2013. While entering the Silver Jubilee Year IOD has many laurels and feathers in its cap, attained as first time efforts during the last 24 years. IOD's efforts of creating a base of over 5000 business professionals trained to become independent directors will ensure proper and appropriate regulation and management of companies. The training received by them in Masterclass Courses for Directors will make them employable as independent directors.

SENIOR MANAGER - BDArijit Ghosh

Pradeep ChaturvediVice - President, IOD

Employability of Independent Directors

9thReflections on 8 International Conference on Corporate Social Responsibility, 2014Colin Coulson-Thomas

13Strategizing CSR – Creating Shared ValueNamita Vikas

18CSR for Nation BuildingLt. General Rajender Singh (Retd.)

22A Social Business Model to Increase Healthcare Access For 'bottom of Pyramid' in Rural IndiaSundeep Kumar

28Golden Peacock AwardsWinners Highlights of Achievements 2013

44A Report8th International Conference on Corporate Social Responsibility

India Corporate Responsibility Reporting Survey 2013KPMG India

5

Let our Dynamic Strategy have a Day to Day Execution

Institute of Directors is a non-profit apex body of Directors, registered under the Indian Societies Registration Act XXI

th

of 1860, vide Regd. No. S21169 on 12 July1990

Why do Directors and Corporates Join us

Discover yourself ?

INSTITUTE OF DIRECTORS, INDIAM-52 (Market) Greater Kailash Part-II, New Delhi - 110048India, Tel. +91-11- 41636294, 41636717, Fax:+91-11-41008705, Email: [email protected]

Scan withSmart PhoneQR ReaderApp:

more details onwww.iodonline.com

India needs over 40,000 Independent Directorsas per the New Companies Act 2013

Certified Corporate Director ? Are you a

MANY THINK ABOUTCHANGING THE WORLDWE ARE ACTUALLY DOING ITTransforming Corporations through our holistic programmes. We together can create a better world

Golden Peacock AwardsA Strategic Tool to Lead the Competition

Connect withover 30,000 Sr. Executives

JOIN OURNETWORK

Bengaluru • Canada • Chennai • Dubai • London • Mumbai • Trivandrum

Corporate responsibi l i ty reporting, now a mainstream business practice

The need for business transparency and accountability has never been so strongly felt as it is now. This is a reflection of how the recent incidents involving Government and corporates shaped increasing stakeholders' demand for responsible corporate behaviour and transparent corporate reporting. Corporate Responsibility also referred to as 'sustainability' or 'business responsibility' looks at the ethical, environmental and social aspects of business beyond the f inancial parameters. Reporting on corporate responsibility (CR) is now becoming a mainstream business practice across the globe. According to the KPMG Survey of Corporate Responsibility Reporting 2013, CR reporting is undertaken by 71 percent of large companies across 41

ndcountries. Similarly, the 2 KPMG India Corporate Responsibility Reporting Survey released in December 2013 reveals that almost three quarters (73 percent) of large Indian companies report on Corporate Responsibility in one form or the other.

The survey analyses reporting trends of N100 companies - top 100 (by gross revenues for financial year 2012-13) publicly listed entities in India. The research and analysis was conducted on the quantitative trends and qualitative aspects of CR reporting. . Consistent

with the KPMG International Survey of Corporate Responsibility Reporting methodology, the qualitative analysis was conducted for seven key quality aspects. The N100 CR reporters (maximum score of 100) were scored with the appropriate scoring weightage criteria assigned to each of the quality aspects.

Regulation drives reporting

Regulatory developments over the past two years have set the momentum for higher CR reporting rates in India. Release of National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVG-SEE) by the Ministry of Corporate Affairs India in 2011 followed by the SEBI mandate on Business Responsibility Reporting for top 100 listed entities (by market capitalization) has pushed ahead the CR reporting agenda in India. Similarly, the Department of Public Enterprise (DPE) has issued Guidelines on Corporate Social Responsibility and Sustainability for Central Public Sector Enterprises which sets the requirements for CR reporting to assess the overall performance of Central Public Sector Enterprises. The other key development that will impact CR disclosure is the new Companies Act of India, 2013. The landmark legislation includes Corporate Social Responsibility (CSR) as mandatory agenda item at the Board level and requires companies to report

on their CSR policy, governance and initiatives along with CSR budget spent. The legislation advocates 2% of net profits as a prescribed allocation for CSR expenditure. At the same time, markets have also responded with positive developments such as the launch of S&P BSE Greenex and Carbonex market indices which separately track companies with better CR performance and disclosure frameworks. All these developments and market forces leave little choice for companies to not report on CR.

IT l eads CR report ing , Financial Services lag

CR reporting in India largely assumes the form of limited discussion on community development and/or environmental protection initiatives as disclosed by companies in their annual reports and websites. Based on KPMG India survey, the number of top 100 (N100) companies which use standard frameworks to report in CR is 45 and 31 companies have separate reports comprehensively covering aspects of CR startegy, governance, targets and commitments, and performance. Sectors which are natural resource intensive tend to more comprehensively report on CR with the Information Technology (IT) sector being an exception. The IT sector is among the leading sectors in CR reporting with 100% of N100 IT sector companies comprehensively reporting on CR through separate reports. On the

India Corporate Responsibility Reporting Survey 2013

Quality Times, February 2014 5

other hand, financial services sector remains the key lagging sector. Indian CR reporters have one of the highest external assurance rates. 81% of N100

companies producing a separate comprehensive CR report have demonstra ted through external assurance an enhanced credibility of the

information reported. Half of the assurance statements are issued by major accountancy firms.

Companies need to evolve in improving the quality of reportingThe survey analysed companies for quality of reporting through a scoring criteria on seven key aspects of reporting – strategy, risk and opportunity; materiality; targets and indicators; suppliers and value chain; stakeholder engagement; governance for CR; transparency and balance. Indian CR reports score 42 out of maximum possible 100 on quality of reporting as compared to score of 59 by global 250 large corporations.

Sector reporting rates

Quality – Aspect summary scores


Quality – Sector summary scores

The analysis of CR reports in India shows that many companies associate CR with resource related risks and opportunities which have a direct linkage to business continuity, operational costs and increased revenues. This is a progressive trend that is observed apart from the traditional linkage of CR to just managing reputation or brand value. Opportunities like access to capital find lesser prominence indicating that maturity among investors to integrate CR in investment decisions is still not significant. Many companies claim to have a CR strategy in place but reporting on targets and goals on key material CR issues is remains low. Indian CR reports have high rates of disclosure on how they engage with stakeholders but there is little disclosure on actions resulting f rom these engagements . The

encouraging results from the survey emerge on CR governance aspect. Almost half of the CR reporters (49%) place the ultimate responsibility of CR with the Board (or Board level committee) or CEO (or equivalent). But relatively fewer companies have dedicated professionals/departments attending to CR indicating that CR becomes additional responsibility for many professionals/departments apart from their core functions. Supply chain CR impacts are gaining significance in ensuring business continuity and reporting on supply chain CR impacts is observed to be low not just in India but across the globe. With the increasing regulatory and stakeholder pressure on c o m p a n i e s t o a s s u m e g r e a t e r responsibility for value chain impacts, investments in systems to identify, measure, mitigate and report value chain

impacts will need special focus.

While India has witnessed a surge in CR reporting rates in last two years, the quality of CR reports in India is relatively lower when compared to global peers. Indian companies should now focus on 'what to report on CR?' and 'how to report on it?', and more importantly, 'how best can the process of reporting be used to generate maximum value both for shareholders and stakeholders?'.

Source:

S y n o p s i s o f I n d i a C o r p o r a t eResponsibility Reporting Survey 2013by KPMG India


MANY THINK ABOUTCHANGING THE WORLDWE ARE ACTUALLY DOING ITTransforming Corporations through our holistic programmes so together we can create a better world

Why we focus onConferences ?Conference creates understanding • Understanding creates networking • Networking creates experience

Experience creates knowledge • Knowledge creates technology • Technology creates convenience

Convenience creates well being • Well being creates feelings • Feelings create motivation

Motivation creates involvement • Involvement starts a movement • Movement leads to desired behaviour

Masterclass for Directorsleading to Certified Corporate Directorship for latest schedule pl visit web www.iodonline.com

Details: INSTITUTE OF DIRECTORS: M-52 (Market), Greater Kailash, Part-II, New Delhi-110048, India Board Nos. : +91-11- 41636294, 41636717, 41008704 • Email:[email protected]

Mark the following Dates in your Diary(Dates are tentative pl confirm from the website www.iodonline.com)

UPCOMING EVENTS 2014

IODInstitute of Directors


Golden Peacock Awards

For last date of submission of applications

Visit us at: www.goldenpeacockawards.com

Also presentation of Golden Peacock Awards on Corporate Social Responsibility (both National & Global )& Innovation Management

16-17 January 2015 Mumbai, (India)

16th World Congress on ENVIRONMENT MANAGEMENT &

th25 IOD Annual DayAlso presentation of Golden Peacock Awards for Environment, Occupational Health & Safety and Eco-Innovationand IOD Distinguished Fellowships11 - 12 July 2014New Delhi (India)

MAURITIUS GLOBAL CONVENTION

Also presentation of Golden Peacock Awards for Quality, Training, BusinessExcellence & Innovative Product/ Service

LONDON GLOBAL CONVENTION 2014 incorporating

14th International Conference on CORPORATE GOVERNANCE and SUSTAINABILITY & Global Business Meet Also presentation of Golden Peacock Awards for Corporate Governance, Sustainability, (both National & Global) and HR Excellence 29-31 October 2014London (UK)

Quality Times, February 2014

EVENING WORKSHOPonBOARDS THAT LEAD

9th International Conferenceon CORPORATE SOCIAL RESPONSIBILITY

5th March 2014New Delhi (India)

by Prof. Michael UseemProfessor of Management & Director of theCenter for Leadership & ChangeManagement at the Wharton Schoolof the University of Pennsylvania.

Board Effectiveness: Constructive Challenges in the Boardroom

13 - 15 April 2014Mauritius

Reflections on TH8 INTERNATIONAL CONFERENCE

on Corporate Social Responsibility, 2014

International conferences on Corporate Social Responsibility (CSR) give corporate directors, opinion formers, leading practitioners and academic experts an opportunity to compare their experiences, take stock and consider future priorities. Inevitably, given its significance, a key talking point at this years event held in Bengaluru was reactions to the requirements relating to CSR set out in India's Companies Act, 2013.

Although the new requirement for expenditure on CSR by Indian companies of a certain size might be viewed by some as another tax on business the great majority of speakers

thand contributing delegates at the 8 International Conference on Corporate Social Responsibility appeared keen to m e e t t h e i r l e g a l o b l i g a t i o n s . Conversations with participants suggest significant effort is being devoted to formulating CSR strategies, plans and programmes that are in line with Government recommendations.

The challenge of providing basic education, health, sanitation, water and other services in rural India was outlined by several speakers. The scale of the need makes it imperative that any new funding that results from the Companies Act, 2013 is wisely spent. Impact and effectiveness were recurring themes as delegates recognised the need to learn from early experience in the search for

greater cost-effectiveness.

In their desire to meet their commitments and maximise the beneficial impact of their CSR activities, not all those who put initiatives together will get it right first time. Certain aspects of corporate programmes may prove to be more successful than others. Some companies may find they have been over-ambitious in setting out to do too many different things, rather than focusing and specialising in a particular area.

Others may belatedly recognise that working collaboratively with like-minded organisations, including non-competing companies and voluntary and public bodies might enable them to assemble the critical mass to achieve greater results. At a local level this could include collaboration with other companies, Government bodies, voluntary organisations, municipal authorities and other communities of interest.

Collaboration that facilitates the transformation of public services could

benefit a great many people. If its full potential is to be realised, boards and other governing bodies and policy makers may need to assess the extent to which companies and public sector bodies have the expertise to negotiate, form and operate various forms of collaboration and public-private partnership. Special skills may also be required to gain the full benefits of introducing greater competition into the provision of public services or outsourcing or privatising certain activities.

Close adherence to recommendations and not wishing to be seen to be abusing the use of a 2% allocation may be causing some CSR practitioners to be excessively cautious and to avoid actions that might lead to greater business benefit. CSR teams should alert their companies to areas in which corporate capabilities might be devoted to further collaborative action that would generate both business and social benefits.

Confidence that public money is well spent can provide an incentive for people to pay their taxes, while cases of some allocations of resources not reaching those whom programmes are supposed to benefit can act as a disincentive. If taxpayers in general were as willing as companies at the conference to meet their commitments significant extra funding would be available for tackling social problems in India and elsewhere.

CSR guidelines and recommendations associated with the Companies Act, 2013 might also benefit from review in the light of early experience, and as and when social and development priorities change. Views were expressed that while current recommendations are consistent

Colin Coulson-Thomas

COLIN

COU

LSON

-THOM

AS


Guidelines and Application forms can be downloaded fromwww.goldenpeacockawards.com

® Re

gist

ered

Tra

dem

ark

WHY IT IS SO SPECIAL?• The only award, which has a meticulously

defined and transparent selection criteria and is determined by a highly elaborate and independent assessment process

• The award builds your BRAND EQUITY and worldwide recognition

• Award winners are eligible to use the Golden Peacock Awards LOGO on all promotional literatures

• Preparation for award application helps to inspire and align the entire workforce and rapidly accelerates the PACE OF SYSTEMIMPROVEMENT

• Even, if you don’t win the award, the PREPARATION & FEEDBACK helps yourstrategic learning process to put you, on your way to achieving world-class status

LAST DATE FOR Submission of application05 March 2014

Details:Golden Peacock Awards SecretariatINSTITUTE OF DIRECTORSM-52 (Market), Greater Kailash Part - II, New Delhi-110048, IndiaTel: 011 - 41636717, 41636294, 41008704 • Fax: +91-11- 41008705 Email: [email protected] • www.goldenpeacockawards.com



Instituted by

Golden Peacock Awards®A Strategic tool to Lead the Competition

• Golden Peacock Business Excellence Award (GPBEA)• Golden Peacock National Quality Award (GPNQA)• Golden Peacock National Training Award (GPNTA)• Golden Peacock Innovative Product/ Service Award (GPIPSA)

AWARDS CATEGORY

with the United Nations' Millennium Goals the position of the disabled could be made more explicit.

In the January issue of Quality Times Lt Gen Ahluwalia highlighted the prevalence of disability in India and elsewhere. Many organisations are overlooking a significant pool of talent and missing opportunities to attract and retain disabled people as both customers and staff. Most people may experience some form of disability as they get older, while many are excluded from certain opportunities earlier in their lives.

Traditional scourges of mankind such as leprosy continue to exist despite the existence of treatments. Addressing them could represent a cause that would appeal to members of generation Z. Many younger people want to work for organisations that are engaged in worthwhile activities and aspire to make a difference. Inclusive development and widening access and involvement could appeal to them.

Many boards still contain members of generation X, while senior and middle management positions are in the hands of generation Y and front-line roles are undertaken by growing numbers of generation Z. Handling relations between people who may have differing personal aspirations and priorities can represent a significant directorial and management challenge. CSR may help relations with generation Z.

Younger staff are often confident users of social media. Applications of social media and the use of support tools can provide cost-effective ways of quickly responding to social and business challenges and opportunities as they arrive. The prevalence of the latest generation of mobile phones in remote rural areas provides new ways of

helping people to help themselves. Modest CSR budgets can now have global impact.

Certain companies can role out international guidance on how to deal with a situation in just a few hours. People around the world can go home at the end of the day with a solution to a problem they did not know they had when they woke up in the morning. The opportunity for quick and flexible responses and the provision of 24/7 advice that draws upon the informed opinion a community of experts in multiple locations means that CSR initiatives can evolve and adapt. They can stay relevant and current.

Delegates at Institute of Directors' events can learn from each other and the experiences of Golden Peacock Award winners. It is natural for presenters of winning case studies to wish to present their companies in the best possible light and to stress the achievements of their initiatives. However, fellow delegates might learn more from a discussion of what does not work so well and how problems can be dealt with.

Conferences also provide opportunities for networking. Informal conversations in and around the conference hall during breaks and meal times highlight current concerns and yield clues as to future CSR priorities. The evaluation and audit of CSR activities emerged as a concern of delegates for whom justification of expenditures, particularly those beyond a legal minimum, and maximising value for money were a priority.

CSR may need to become more hard nosed, as its practitioners are required to submit to the same disciplines as other functions and provide more rigorous evidence of results to justify budget allocations. One may see greater

emphasis upon data collection, research and analysis. An independent and objective review might be helpful to those who are keen to learn from the experience of others.

A recognised body of knowledge may emerge, along with CSR tools and techniques. Certain national and international bodies may not resist the temptation to develop standards, codes and kite-marks. Professional institutes and associations for CSR practitioners may spring up. More educational institutions may offer courses in CSR. More consulting firms may reprint their brochures to claim expertise in CSR.

Certain developments and how they are implemented might be more welcome than others. Bureaucratic standards can be costly to adopt. They can also be an obstacle to innovation and flexibility if they replace thinking with box-ticking. Care needs to be taken to ensure that form does not take priority over substance. Hopefully new entrants will contribute fresh ideas and not just jump onto CSR bandwagons, and add value rather than simply endeavour to get their snouts into a soft budget trough.

Value for money is likely to become more of a consideration as organisations seek to derive greater benefit from available funding. Rather than contribute additional resources to enable more of the same to be done, corporate programmes should aim to spur innovation and create new options and choices that will enable us to address certain challenges facing mankind and achieve sustainable change.

In some quarters one may see a revaluation, if not a backlash, as people question what has been achieved as a result of the first wave of new expenditure upon CSR as a result of the


Companies Act, 2013. There will be those who have a cynical view of business, while others may have had unrealistic expectations.

Boards may question whether hard earned profits have been well spent. Investors and markets may also take a view on the value of “investment” in CSR. Public policy makers and lobbyists may assess whether the new legislative requirements are achieving t h e i r p u r p o s e , w h e t h e r recommendations need amendment, and whether further action might be required. Options such as tax incentives may be explored.

Many boards approve far too many costly and inflexible initiatives, each of which has been designed to address a single issue. They would benefit from greater focus upon a smaller number of

programmes designed to deliver multiple objectives, for example performance, CSR, sustainability and other outcomes. Vigilance will be needed to ensure that regulations, guidance, standards and codes do not lock CSR into a narrow and self-contained silo and prevent the simultaneous advancement of several agendas.

Most speakers at the conference felt that CSR expenditures are beneficial to companies as well as those at whom their initiatives are directed. One might expect CSR practitioners to have a favourable view of their own roles. When data sets are used care needs to be taken to ensure that a cause and effect relat ionship between CSR and indicators of performance exists rather than just an association.

Deriving maximum and sustainable benefit from CSR will require a thoughtful, imaginative and strategic approach that may benefit from greater collaboration. Companies need to engage with communities to understand their requirements, where they can make the greatest contributions, and how they can best help people to help themselves. The ambitious will go beyond CSR and look for profitable ways of applying corporate resources to addressing priority concerns of mankind.

Colin Coulson-Thomas is a member of the business school team at the University of Greenwich, UK and also director general of IOD , India For UK & Europe Operations

SUBSCRIBE NOW



GET DIRECTORSVIEW EVERY

MONTH12 issues of Quality Times Each Year

Subscription Terms Cover Price ( ) You Pay Only You Save On Cover Page

Life Subscription

Annual Subscription

Each Issue

5000

540

45

4000

500

45

20%

9%

Please Note:• The Quality Times publishes 12 issues in a year.• The organisation Libraries are entitled to a 10% concession.• Unrestricted to Quality Times online

The Quality Times provides intelligent analysis of events and trends that are reshaping Corporate Boards. IOD members entitled to receive a free issue each month.

Namita Vikas

STRATEGIZING CSR – Creating Shared Value

The passing of the Indian Companies Act, 2013, especially Section 135 of the Act, marks a revolutionary phase in the evolut ion of Corporate Socia l Responsibility (CSR) in India. The Act, wh ich manda t e s r epo r t i ng on investments of 2% of profits earned by corporate entities towards the welfare of society, has infused a long awaited change, promising a paradigm shift in contribution companies make towards growth, welfare and development of the society.

This change in the law is a welcome step that may encourage private companies to assume an even greater responsibility towards the welfare of society. While companies have been aware of their social responsibility for a long time, s o m e a p p r o a c h e s w e r e m o r e philanthropic or charitable in nature than sustainable engagements that could empower the society over a period of time. The Companies Act, 2013, is slated to create a more structured approach to the roles that companies would now play and the investments that would be made in critical areas of development such as eradicating extreme hunger and poverty, promotion of education, promoting gender equality and empowering women, reducing child mortality and improving maternal health, combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases, ensuring e n v i r o n m e n t a l s u s t a i n a b i l i t y,

employment enhancing vocational skills, social business projects and contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government or the State Governments for socio-economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women.

Given these recent developments, there have been heightened discussions on CSR, Reporting and Sustainability within the Industry, Development Sector and Government. The Indian Institute of Corporate Affairs, Government of India entity has been conducting several sessions in partnership with Corporate India to decipher the clause 135 in the Companies Act and its implications. While, there exist a number of different terms like Corporate Citizenship, Corporate Sustainability, Social R e s p o n s i b i l i t y a n d B u s i n e s s Responsibility, the underlying spirit points in one direction that is encouraging greater and more organized participation from the private sector in aiding India's development and making

corporates more accountable to the society they operate in. Being responsible to stakeholders for the company's outputs and its impacts meets not only company interests but may also create a long-term, sustainable value.

Increasing stakeholder awareness in an accelerated globalised environment is one of the primary factors that is influencing this change and is encouraging Governments, regulators and stock exchanges across the world to develop collaborative frameworks that

augment development and smart regulatory measures for non-financial reporting, aimed at helping assess the effectiveness of CSR engagements. It is, therefore, no surprise to see India move in this direction, given its continued and increasing integration with the world

Increasing stakeholder awareness in an accelerated globalised environment is one of the primary factors that is influencing this change and is encouraging Governments, regulators and stock exchanges across the world to develop collaborative frameworks that augment development and smart regulatory measures for non-financial reporting, aimed

at helping assess the effectiveness of CSR engagements.

NAM

ITA

VIKA

S




India needs over 40,000 Independent Directors

Are you a Certified Director

as per the New Companies Act 2013

Masterclass for Directors Masterclass for Directors TMTM

leading to Certified Corporate DirectorshipA condensed program for

Company Directors

To offer a specially designed course and customized training program for your Board members and Senior Management covering certain topics related to function and responsibilities of Directors & legal liabilities

GET A SPECIAL QUOTE

“It has been a privilege attending the Masterclass for Directors program, IOD is doing a tremendous work in this field”.

Shri S Krishna Kumar, former Union Minister

“Excellent Program”Dr Christy Fernandez, IAS (retd) former

Secy to the President of India

“A very useful course”.D.R. Kaarthikeyan, former Director,

Central Bureau of Investigation

“Excellent Program”T.S. Vijayan, Chairman, LIC India

“Balanced Scorecard, Finance for Non Finance Directors, Duties & Liabilities and Corporate Transformation are the best aspects”.

Sanjay Jain, Managing Director, Accenture

“One of the best and relevant program”Yogesh Lohiya, CMD, General Insurance Corporation

“Sharing relevant knowledge is the best aspect of this course”.T.R. Doongaji, MD TATA Group Services

“My greatest appreciation for the manner in which you presented your material, rich in content, depth of experience and overall expertise

including international matters was mind boggling”.Felix D’Souza, Head Corporate Governance, Abu Dhabi

“It was a great learning experience”Prof. Gregorio Flores, Texas, USA

“I would like to recommend each Director to undergo this training program”

F.K. Siddiqi Director, Hinopak Motors, Karachi

THE COMPANIES ACT, 2013

————

ARRANGEMENT OF CLAUSES

————

CHAPTER I

PRELIMINARY

CLAUSES *

149.(3) Every listed public company shall have at least one-third of the total number

of directors as independent directors and the Central Government may prescribe the

minimum number of independent directors in case of any class or classes of public

companies.

150. (1) Subject to the provisions contained in sub-section (5) of section 149, an

independent director may be selected from a data bank containing names, addresses

and qualifications of persons who are eligible and willing to act as independent

directors, maintained by any body, institute or association, as may by notified by the

Central Government, having expertise in creation and maintenance of such data bank

and put on their website for the use by the company making the appointment of such

directors ************

************

********

www.iodonline.com* Only relevant parts have been highlighted. Pl view details on

www.iodonline.com or http://www.mca.gov.in/

103rd Batch : New Delhi - 07 - 09 Feb 2014104th Batch : Bangalore - 21 - 23 Feb 2014105th Batch : Mumbai - 07 - 09 Mar 2014106th Batch : Chennai - 14 - 16 Mar 2014

Next Schedule What Participants Say

INSTITUTE OF DIRECTORS: M-52 (Market), Greater Kailash Part-II New Delhi – 110048, India Board Nos. : +91-11- 41636294

41636717, 41008704 • Mob: 09871390417 • Fax: +91-11- 41008705 • Email: [email protected] • www.iodonline.com LIMITED SEATS

Why do Directors and Boards Join IOD

Discover the reasons

economy.

Here on, it would be interesting to see how companies use innovative business solutions to create stakeholder value and ensure that sustainability principles are integrated with the core business strategy and processes in an organization. By being more responsible and responsive towards all stakeholders across the value chain would not only ensure good health of businesses but also that of the society that they operate in. Sustainability in its largest sense, therefore, is the purpose of business. Real sustainability would, therefore, lie in our collective ability to share resources equitably, accept that everyone has the same rights, and consistently act in the best interest of humanity. A sustainable decision, therefore, cannot be one that is good for me, but not for you – or good for today, but not for tomorrow.

Now that India has common definition of CSR and a clear disclosure framework it may be a meaningful way for businesses to contribute towards building a sustainable, equitable future.

Banks and financial institutions are in a unique position to influence sustainable development across all sectors. Banks play a central role in an economy by influencing economic outcomes, as they intermediate financial flows from depositors, channeling them towards businesses, some of which have significant social and environmental impacts.

YES BANK has been a front runner within the Sustainability space, with many initiatives that cut across the entire spectrum. To demonstrate the Bank's commitment and to lead the discussions in the conservation space, YES BANK signed the Natural Capital Declaration

which is convened by the United Nations Environment Programme Finance In i t i a t ive and Globa l Canopy Programme. It is a finance-led and CEO-endorsed initiative committing financial institutions to integrating natural capital consideration into financial products and services, accounting and reporting. This declaration is a commitment from banks, investors and insurance firms to change their business models to reflect the materiality of natural capital for the financial sector.

Given that banks can influence economic outcomes through the capital that they infuse in the market, including w i d e r e c o n o m i c , s o c i a l a n d environmental objectives into core business strategy can help mainstream sustainability. This can have far reaching impact on triple bottom line.

Sustainable banking, for YES BANK, is all about good governance, effective risk management and proactive social and environmental intervention. Banks need to be alive to the undercurrents of s u s t a i n a b l e d e v e l o p m e n t a n d continuously seek viable opportunities that promote sustainable finance, thus a l i g n i n g b u s i n e s s g o a l s w i t h sustainability principles. This is not merely a 'do-good' strategy but rather a cornerstone of core operations that help mitigate risk and gain access to new markets. From a business point of view, this helps create long-term value and manage social and environmental aspects alongside economic risks, which in-turn improve the overall portfolio quality.

In order to mainstream CSR, it is also important for companies align the CSR policy with business strategy. To make a business case for CSR, it is important to

establish a positive relationship between corporate social performance and corporate financial performance. By looking at the width and depth of the impact rather than measure the length of the investment, companies may be able to align their CSR activities with businesses by making a socially responsible investment in a field related to their core area of operation. Not only will strategic adoption of CSR help enhance business, i t may also complement brand building thus creating stakeholder value.

To cite the YES BANK example here, it has been able to integrate core business with sustainability well, thus creating stakeholder value while mitigating risks effectively. YES BANK's commitment to mainstreaming sustainability is through embedding sustainability within core operations, thus addressing the whole gamut from risk to opportunity. Its Responsible Banking philosophy, one of the six strategic key pillars, is its

YES BANK has

new market opportunities through innovative products and services. These

The Bank has had a significant focus on sus ta inabi l i ty and through i t s Responsible Banking platform, has been working towards CSR and Sustainable Development focusing on the Triple Bottom Line ethos.

In fact, the Bank established YES FOUNDATION in December 2012 with an intention to further expand its sustainability footprint by supporting and empowering various stakeholders

key differentiator.

striven to include wider economic, environmental and social objectives that are met by creating

not only promote financial growth but also impact social and environmental causes.


Continued to P- 20

Organization for Non Executive Independent Directors (ONEID) INSTITUTE OF DIRECTORS: M-52 (Market), Greater Kailash Part-II New Delhi – 110048, India,

Board Nos. : +91-11- 41636294 , 41636717, 41008704 • Fax: +91-11- 41008705 • Email: [email protected]

Organization of Non-Executive Independent Directors (ONEID) is a wing of Institute of Directors (IOD) to promote and maintain a panel of suitable qualified Independent Directors for Corporate Boards.

Choose the right person for your

BOARD

leading to Certified Corporate DirectorshipA condensed program for

Company Directors

Masterclass for Directors TM

Certified Director

India needs over 40,000 Independent Directors

Are you a as per the New Companies Act 2013

TO BE INTRODUCED IN PARLIAMENT

Bill No. 121 of 2011

THE COMPANIES BILL, 2011

————

ARRANGEMENT OF CLAUSES

————

CHAPTER I

PRELIMINARY

CLAUSES *149.(3) Every listed public company shall have at least one-third of the

total number of directors as independent directors and the Central

Government may prescribe the minimum number of independent

directors in case of any class or classes of public companies.

150. (1) Subject to the provisions contained in sub-section (5) of

section 149, an independent director may be selected from a data bank

containing names, addresses and qualifications of persons who are

eligible and willing to act as independent directors, maintained by any

body, institute or association, as may by notified by the Central

Government, having expertise in creation and maintenance of such

data bank and put on their website for the use by the company making

the appointment of such directors

************

************

********

* Only relevant parts have been high www.iodonline.com o

Why do Directors and

Boards Join IODDiscover the reasons

Whether I am knowledgeable enough to understand the financial, legal, technical aspects of business of the proposed company?

ENROLL NOW

Are you looking for

Independent DirectorsYour partner in recruiting the right people.online portal for board level appointments

www.iodonline.com

With the introduction of CSR clause in the Companies Act, 2013, there has been a recent spurt in attention towards CSR with lot of deliberations, dialogues, seminars and events on the subject. While the Schedule VII of the Act has put emphasis on a range of areas of intervention, it has also left the decision making on the prudence of the Board level CSR Committee. This is indeed a big landmark as far as the present and the future of CSR in India is concerned.

India is seeing a phase of transition at a rapid pace. We have managed the global slowdown quite well and have waded through it with minimal impacts. India has got into the reckoning as an investment destination and also for the pool of talent particularly in the IT space. The time is ripe now for all the stakeholders to play their roles more aggressively in this journey towards strengthening the country.

India still ranks poorly in Human Development Index, poverty and hunger still exist in many parts of the country,

quality of education in rural areas, generating gainful employment for the youth, gender equity, housing, infrastructure development, rural-urban divide and so on continue to challenge and have the potential to destabilize the entire growth story that the country is proud of.

These are some issues that require attention of not only the govt. but other stakeholders as well.

Needless to say, t h a t t h e businesses in India cannot sustain in the long-term with this contrasting story. Growth cannot sustain in isolation. Therefore, there is a call for action from the businesses in India to go beyond the aspect of mitigating their personalized impacts. Of course, they are and will continue to remain primary to any business, but the country needs them to play a more important role in equitable and i nc lu s ive soc io -economicdevelopment of the country.

I think some of the major areas that the businesses could contribute are skill development, education and healthcare along with other areas like infrastructure development, waste and sanitation, potable drinking water, renewable energy etc. Businesses should utilize their management expertise and investments in innovation through research and development to address

some of these concerns.

The topmost contribution could be in the area of skilling of the population, particularly women and youths. India has set a target of skilling and upskilling 500 million people in India by 2022. Businesses must play a crucial role in this mission. The youth if neglected will otherwise be the biggest liability for the country. India doesn't need hands without work on account of lack of skills. Many businesses have thus come forward and started working on this issue. Here, I would also like to highlight that reskilling and upskilling are other two important areas to consider looking at the future. The future workplace will

nowhere be the same. There will also be trades which will start to recruit fewer people. Therefore, keeping that in mind, it would be prudent to have a plan in place to reskill people at an appropriate time. Another factor here is upskilling. There must be a future growth in the skill that the youth acquires and meets his/her aspirations of a career. Upskilling the youth to be able to take larger responsibilities is thus equally important.

The second area of intervention to me is education. Education has to be future-ready and meets the demands of their times. In fact, I think skilling the unemployed youths in entry level trades is only damage control. If there is good investment in quality education, employment will come automatically. The new methods of teaching, introduction of technology in rural

Lt. General Singh (Retd.)Rajender

CSR for Nation Building

The next agenda is affordable

healthcare. India has done very well

in improving its performance on the

health indicators in the past.


schools, upgradation of teachers, school infrastructure are some areas worth considering.

The next agenda is affordable healthcare. India has done very well in improving its performance on the health indicators in the past. The national efforts, largely driven by the governments, should be amply supported by the businesses. Wherever there is a deficiency in the outreach, businesses should come forward to help. Health industry should also look at how to make the services affordable to the population.

Other areas are drinking water and sanitation, infrastructure development, accessibility & mobility etc. There are so many other items that the business could partner for the agenda of nation building.

Businesses should encourage innovation for creating affordable, cleaner and better solutions for rural outreach. These

could be innovations in technology, processes etc. and also bring in their management expertise to run the programmes.

DLF has taken some steps towards some of these issues. It created the DLF Foundation in 2008 to deliver CSR objectives of DLF and has been constantly contributing to create s u s t a i n a b l e c o m m u n i t i e s a n d transforming lives for the better. The DLF Foundation focuses on the areas of nurturing talents among underprovided, education, skil l t raining, rural healthcare, sanitation & environmental protection and community infrastructure development. Responding to the national call of skilling 500 million youths by 2022, DLF Foundation has committed itself to train one million youths during the time frame and make them gainfully employed. In another initiative, the DLF Foundation nurture

talent amongst bright underprivileged children by providing them the resources to ensure access to good quality education so that they become good citizens and enjoy good quality of life. Another important initiative is integrated development of cluster of vi l lages. The DLF Foundation endeavours to act as a catalyst to empower the communities so that they have access to their rights and entitlements and also provide services and facilities that will help them to have a good quality of life.

The need of the hour is to synergise all the efforts of various players in development – the govt., the NGOs and the Corporates and make this country stronger and better.

around a framework of innovation. The vision of this Foundation is to build “an Empowered and Equitable India”.

One of its first initiatives YES! I Am the Change, a nationwide social film making project, is intended at creating social transformation. It aims to strike a chord with individuals by using the medium of storytelling. YES! I Am the Change intends to serve as a platform to facilitate an interaction between the youth and social causes through VOICES LESS HEARD.

In view of engaging with its stakeholder beyond the transactional, YES BANK institutionalised a unique community e n g a g e m e n t i n i t i a t i v e “ Y E S

COMMUNITY” which connects the Bank with local communities residing within 5 km radius of its branches on pertinent social and environmental issues. The Bank effectively utilizes its branches as knowledge sharing centres or town-halls to build strong community relations and help shape meaningful conversations on real life issues.

CSR and Sustainability have indeed emerged as important drivers of business growth similar to Innovation or Quality in an organization. Therefore, as a part of a company's long-term strategy, it has become essential to include the Sustainability Team in the core management of the business. Industry wide there is realization of the

importance of inclusion of sustainability given the resource constraints and p e e r p r e s s u r e f r o m e v o l v e d organizations. Sustainability initiatives therefore can no longer operate in silos since it is a matter that cuts across “Board Room to Copy Room”. However, leadership quotient in this discipline is still low and there is an urgent need to train human capital to be sustainability practitioners.

Being responsible to stakeholders for the company's outputs and its impacts meets not only company interests but may also create a long-term, sustainable value.

Namita Vikas

Namita Vikas is Senior President & Chief Sustainability Officer of YES BANK

Lt Gen Rajender Singh, is the CEO of DLF Foundation


Continuation of P- 15

A SOCIAL BUSINESS MODEL to increase healthcare access for

'Bottom of Pyramid' In Rural India

Sundeep Kumar

Background

Rural India is full of contrasts. An aerated soft drink might be more easily available than a simple medicine like paracetamol. For daily wage earners, good health is often not a priority, and women and children are worst affected. Poor sanitation, poverty and gender divides only compound the problem, leading the World Health Organisation (WHO) to conclude that over 65% of Indians have limited access to medical care.

The statistics only tell a part of the story; at the ground level, beyond numbers, there are innumerable tales of pain and despair. Tuberculosis, mother-child malnutrition, gastro-intestinal problems and an alarming rate of infant mortality are common problems that in most cases could have very simple solutions.

In 2007, Novartis India launched Arogya Parivar, a healthcare business model which has proven to be both sustainable and a warm, human initiative. Arogya Parivar, meaning “Healthy family” in Hindi, involves a deep-rooted outreach programme that works with the local resources and empowers villagers to help themselves. It is a unique social business exercise that is both profitable and with commitment to improved healthcare for the underprivileged millions. It's not a pure Corporate Social Responsibility Initiative or a philanthropic endeavor, nor is it driven by a pure profit motive. It aims to strike a balance by seeking to

earn a reasonable profit while meeting the unmet medical needs of rural India, in partnership with local communities and NGOs.

Mission

To improve healthcare access for the under-served poor located at 'bottom-of-the-pyramid' using a social-business approach.

Problem Identification (BoP Characteristics)

• Rural market – 65% lack access tomedication [WHO]

• 80% are daily wage-earners and 40%

earn < $1.25/day

• Key healthcare issues: waterpurification, sanitation, undernourishment, iron deficiency,vaccinations, TB, ability diabetes

• Low ability to pay: healthcare entirely out of pocket; low afford ability for large packs

• Key obstacle: lack of and weakhealth infrastructure

World Bank, UN, Governments, NGOs

Basic Sanitation, Clean Water

Access to Basic Health Services

Access to Tertiary Care

Private Sector/NOVARTIS

Affordable & Effective Healthcare

Access & Develop Markets profitably

Social Responsibility

Role of various stakeholders

Arogya Parivar Approach:

• A complete healthcare solution and not just access to medicines

• Uses 'CSR-for profit' principles to achieve both social and business goals

• Built on 4As of Rural Marketing: Awareness – Accessibility – Affordability –Adaptability

• Support development of poor healthcare infrastructure: Micro credit initiative

• Addresses the full health value chain


Business Model

Arogya Parivar uses a unique business model combining techniques used by pharmaceutical and consumer goods companies.

A marketing mix adapted to low-income populations is based on “4 As”: Awareness, Adaptability, Accessibility, and Affordability.

Awareness: We spread awareness related to healthcare at patient level and physician level to rural people / patients and rural doctors.

• Patient Awareness: Arogya Parivar conducts health education programmes at grass root level, with the help of Health Educator recruited from villagers. Educators cover topics on hygiene, nutrition, diseases and

prevention.

• Physician Education: Arogya Parivar sales supervisoreducate doctors about diseases and Novartis portfolio.

• Adaptability: All communication material about theproducts adapted to local conditions. Arogya HealthEducators and Sales Supervisors are locals residing in the villages and speak local dialects – brings trust within the communities.

Accessibility

• Enhanced distribution: Setting up local distributors toenhance coverage

• Health camps: Doctors from city come to rural areasproviding screening, diagnosis & treatment in villages that lack access to healthcare. A local Pharmacy

store participates in the health camp to ensureavailability of medicines.

• Infrastructure development: Partnerships withaccess to financial products/ diagnostic tools forimproved facilities and medicine stocks

Affordability: Medicines are available in small packs at affordable prices.

Complementary 'social' and 'Business' legs to promote a symbiotic relationship between the community and Arogya Parivar.

How it works

Field operations are structured in to cells, each covering a radius of 25-30 kms. A cell serves 80 villages covering approximate population of 1.5 lacs. It is managed by Arogya Health Educator [AHE] and Sales Supervisor [SS].

Arogya Parivar uses the wide distribution network of Novartis to make sure that the required drugs are made available to the rural population. It primarily sells medicines to treat diseases rampant in the rural areas, and has smaller, low-unit price packs of some other products, to address affordability.

Arogya Parivar is also attempting to improve medical infrastructure in these parts through tie-ups with Government and Non-Governmental Organizations so that we can build

Role of AHE Role of SS

Spread health education in villages. (2 Health Education meetings per day) Detailing Doctors about Novartis products

Organize two health camps per month. Assist in conducting health camp (Arrange city doctors, pathologist & Chemist)

Ensure patient drug compliance Responsible for selling and distributing medicine via retail chemist.


on existing initiatives rather than duplicating them.

Some facts

• 250 Cells cover 181 districts in 10 states in India

• Impacts 33,000 villages

• 12 therapeutic application address the rural/local diseaseburden

• Supervisors communicate directly with over 45,000doctors and 29,000 pharmacies

• 42 million people have got better healthcare access

The Impact

Arogya Parivar has multiple benefits for all its stakeholders

Some Recognitions & Achievements

Way Forward

While Arogya Parivar has made significant progress within a short time, exceeding initial expectations, but the journey has just begun. Some steps planned going forward:

Geographical expansion – both within India and overseas

• Deeper coverage of the existing Cells in terms of moredisease areas and more people

• Public-Private partnership with Government aligningwith National initiatives like NRHM (National RuralHealth Mission), better training and education of doctorsand paramedics in rural India

• Greater participation in infrastructure creation, e.g.,through Microfinance tie-ups

Further partnerships with NGO's

As the basic disease areas are dealt with, progressively bring into focus other lifestyle diseases among the 'Rural affluent', such as diabetes, blood pressure, etc.

Alliances with other healthcare companies to make more products available, enabling India's rural population to get at least some of the benefits that currently their urban counterparts enjoy

Sundeep Kumar, Head – Corporate & Public Affairs, Novartis Healthcare Ltd.

Communities

Employees

Rural health professionals

NGO & Authorities

• Solves health issues, become more productive• Avoids loss of income• Receives better health education

• New source of employment• Receive training• Improved social status

• Obtain access to more and better health information• More patient visits to practice

• Health and economic improvement within their jurisdiction• Assists their development intent and out-reach

• Grows its business• Does what is right (CSR)

Novartis


Golden Peacock Awards WINNERSHIGHLIGHTS OF ACHIEVEMENTS 2013

GOLDEN PEACOCK GLOBAL AWARD FOR CORPORATE SOCIAL RESPONSIBILITY

WNS is the first India–based Business Process Management company to be listed on the New York Stock Exchange (NYSE) in 2006. WNS Cares Foundation aims to create a better and sustainable future for underprivileged children and youth. The Foundation aims to equip with the motto 'Educate, Empower, and Enrich'. The focus is on Computer Literacy and Remedial Education which enables children to stay longer at school. Career counseling is provided to benefit the community, with a thrust on empowering marginalized communities.

WNS GLOBAL SERVICES PVT LTD, INDIA

Canara Bank is a leading Public Sector Bank in India. The Bank has blended Commercial Banking and Social Banking in its functions and discharges its obligations towards the society through its vast network, at National and at International level. The perceptible impact of the Bank's welfare programme has been in the realm of being educative, participative, inclusive and sustainable. Canara Bank Rural Self Employment Training Institute addresses the social issues and expands the economic base of lacs of rural youth. The Bank has a dedicated CSR policy.

CANARA BANK, INDIA

Doha Bank has been consistently registering a strong growth with participative leadership philosophy. The Bank has focused on education and health programs. The Internal Audit team is responsible for ensuring the CSR programs monitoring the performance. Doha Bank allocates a sizeable profit for CSR activities for serving the society.

DOHA BANK, QATAR

Dubai Customs, a public service organization fully government owned, has now emerged as an organization facilitating trade and controlling the borders of the country. The company has a dedicated CSR policy. The social affairs section of the Dubai Customs prepares an annual action plan on the objectives and goals derived from the organizational strategic objectives and the directions of the government. The organization allocates annual budget which is dedicated to projects, programs and activities related to CSR.

DUBAI CUSTOMS, UAE

The Golden Peacock Awards for Corporate Social Responsibility (both National & Global) & Innovation Management was presented by His Excellency Shri Nikhil Kumar, Hon’ble Governor of Kerala during the 8th International Conference on Corporate Social Responsibility held on 17-18 January 2014, at Hotel ITC Windsor Manor, Bengaluru, India. Also present on the dais, Dr. A. N. Saksena, Director General, Golden Peacock Awards Secretariat, Lt Gen J. S. Ahluwalia, PVSM (Retd), President, Institute of Directors, India, Lord Diljit Rana MBE, Honorary Consul of India, Northern Ireland & S. Chakraborty, Chief Executive, Innovative Financial Advisors.

Mr. Keshav R. Murugesh, Group CEO,WNS Global Services Pvt Ltd, India receiving the Award

Mr. R K Dubey, CMD, Canara Bank, India receiving the Award.

Mr. Suhas Prakash Rogiye, Senior Manager-BPR&QA, Business Process Re-Engineering and Quality Assurance, Doha Bank, Qatar receiving the Award


GLOBAL AWARDS

GOLDEN PEACOCK GLOBAL AWARD FOR CORPORATE SOCIAL RESPONSIBILITY

SPECIAL COMMENDATION

GOLDEN PEACOCK AWARD FOR CORPORATE SOCIAL RESPONSIBILITY

Marks & Spencer, popularly known as M&S, sells 'own brand' clothing, food, home and beauty products in store. M&S operates in 51 countries with 418 international stores. Plan A of the company is an eco and ethical program that aims to make M&S the world's most sustainable major retailer by 2015 with a 180 activity portfolio of CSR commitment. Company embeds CSR/Sustainability into everything they do.

MARKS AND SPENCER GROUP PLC, UK

SanDisk Corporation is a global leader in flash memory storage solutions. SanDisk has contributed over USD$19 million to 945 charitable organizations worldwide, providing training, education and resource support to the un/under-employed; supporting promising research in the fight against cancer; providing health care, education and prevention services to the poor and disenfranchised; serving food and hot, nutritious meals to senior citizens, homeless youth and families with children.

SANDISK CORPORATION, USA

Al Sadd Sports Club is a QATARI football club, playing in Qatar Stars League. Company's updated CSR policy confirms their continuing commitment to the social, economic and environmental aspects. Al Sadd Sports is the first club in GCC publishing CSR/Sustainability Report complying with the UN – Global Compact Principles.

AL SADD SPORTS CLUB, QATAR

Mahindra & Mahindra Ltd is a large automobile manufacturing company with a strong market presence. Structured approach at highest level of management has been adopted for CSR where core areas are identified. The focus is on appropriate education, vocational education and livelihood training for the economically disadvantaged. The Mahindra group commits 1% profit after tax on an ongoing basis towards its CSR activities.

MAHINDRA & MAHINDRA LTD, MUMBAI

IDBI Bank, a public sector bank, has created new benchmark in service to its customer in innovative manner. It has adopted TARU village in Laddakh and carried out rehabilitation work. The rural transformation fellowship program, in partnership with Tata Institute of Social Sciences, has made revolutionary impact. Annual budget allocation for CSR activities is 0.5% of profit after tax.

IDBI BANK LTD, MUMBAI

Ms. Shalini Naagar,Head _ HR & Sust & Ms. Jyotsna Belliappa, Head-Social Compliance, Marks & Spencer Group PLC, UK receiving the Award

Mr. Guruswamy Ganesh, VP-Bangalore Delivery Center, Sandisk Corporation, USA receiving the Award

Mr. Salah Ahmedeen, CSR Officer, Al Sadd Sports Club, Qatar receiving the Special Commendation Certificate

Mr. Sushil Singh, VP- CSR, Mahindra & Mahindra Ltd, Mumbai receiving the Award

Mr. M. S. Raghavan, CMD, IDBI Bank Ltd, Mumbai receiving the Award


NATIONAL AWARDS

Serco is an international reputed software BPO Company. The approach to CSR focuses on 5 elements – people, health and safety, communities that company serves, the environment and market place which covers relationship with the customers, suppliers and other partners. 1% of pre-tax profit is spent on CSR activities.

SERCO GLOBAL SERVICES PVT. LTD, MUMBAI

JK Lakshmi Cement Ltd is an environmentally conscious company with a focus on efficient utilization of natural resources and use of waste materials. The company conducts feedback survey to gauge public perception of its CSR activities. The feedback survey also reflects social, environmental and economic impact of CSR activities.

JK LAKSHMI CEMENT LTD, SIROHI

Engineers India Limited (EIL) is a major engineering consultancy organization. EIL is promoting socially responsible investments for community development through formal and informal modes of dialogue undertaken on day-to-day basis. Areas of thrust are education, healthcare, drinking water, sanitation, community development, environment protection and vocational training. 2% of profit after tax is allocated for CSR.

ENGINEERS INDIA LTD, NEW DELHI

Samsung India Electronics Ltd is a leading electronic equipment manufacturing and marketing company. Its CSR programs responds to the social and environmentally needs and seek to give back solutions to these communities. 'Samsung Hope Project' is in the areas of education, culture, sports, social welfare and community development uniquely addressing the needs while emphasizing on innovation for development of the community including engineering and IT technical training. Success measurement has been introduced to make CSR program more effective

SAMSUNG INDIA ELECTRONICS PVT LTD, GURGAON

Uranium Corporation of India Limited (UCIL) is a wholly owned company under the Department of Atomic Energy. UCIL has an integrated approach of community development in the tribal areas around its mines. CSR project needs are determined through interaction with elected and traditional leadership of neighboring villages. About 4% of company's net profit is allocated for CSR activities.

URANIUM CORPORATION OF INDIA LTD SINGHBHUM (E)

YES Bank, India's new age private sector bank, is a high quality, customer centric, service driven Indian Bank catering to the 'Future Businesses of India'. The Bank views Corporate Social Responsibility (CSR) as an integral aspect of its triple-bottom-line ethos. Thrust areas include education, healthcare and environmental sustainability. Yes Bank is aligning CSR activities with Scheduled VII of the Companies Act 2013.

YES BANK LTD, MUMBAI

Ms. Namita Vikas,Sr. President & Chief Sustainability Officer, YES Bank Ltd, Mumbai receiving the Award

Ms. Dip t i Nandoskar, Off i ce r - Ex te rna l Communications, Serco Global Services Pvt Ltd, Mumbai receiving the Award

Mr. P. L. Mehta, Sr.VP (Works), JK Lakshmi Cement Ltd, Sirohi receiving the Award

Ms. Veena Swarup, Director - HR, Engineers India Ltd, New Delhi receiving the Award

Ms. Ruchika Batra, Director - CSR, Samsung India Electronics Pvt Ltd, Gurgaon receiving the Award

Mr. Diwakar Acharya, CMD,Uranium Corporation of India Ltd, Singhbhum(E) receiving the Award


GOLDEN PEACOCK AWARD FOR CORPORATE SOCIAL RESPONSIBILITY

SPECIAL COMMENDATION

ONGC Ltd is the largest oil extraction company in India with well organized corporate governance and CSR practices. ONGC has a structured CSR Policy; and is aligning CSR activities with Companies Act 2013. CSR activities are focused on women empowerment, girl child development, gender sensitive projects. CSR allocation is equivalent to 2% of the net profit of the company.

OIL AND NATURAL GAS CORPORATION LTD, NEW DELHI

NTPC Ltd is the largest power generating company in India. Thrust areas of CSR projects around the power plants include infrastructure development, drinking water supply, education, healthcare and vocational training. CSR allocation in 2012-13 is 0.75% and the company is targeting budget allocation of 1%.

NTPC LTD, NEW DELHI

Max India Foundation is the social arm of Max India Ltd. Max India Foundation's objective is to give quality health care to the underprivileged by creating health awareness and services all across the country. Pan-India immunization program for children in the age group of 0-12 yrs to protect BCG, DPT, Hepatitis B and Typhoid is a highly commended CSR activity.

MAX INDIA FOUNDATION, NEW DELHI

Madura Clothing is the manufacturing arm of MFL (Madura Fashion & Lifestyle) producing high quality premium formal branded apparels. The company has focused on CSR activities in Karnataka in the areas of healthcare, education, child care, rural infrastructure and drinking water supply. Vocational training is also provided to make beneficiaries self-reliant. Fund allocation for CSR activities is 2% of the total net profit.

ADITYA BIRLA NUVO LTD, MADURA CLOTHING, BANGALORE

RITES Ltd is a profit making PSU of the Indian Railways. Education, Healthcare and Livelihood are some areas of activities with a social focus. Main activities include waste management, water management, bio-diversity management and energy conservation. 2-3% of Profit after Tax (PAT) is allocated for community development.

RITES LTD, GURGAON

CMC Ltd is a prominent IT sector company involved in software and hardware activities. Areas of CSR project thrust are healthcare, education, literacy promotion and rural infrastructure improvement. Social project on computer hardware and networking training for the underprivileged is a unique activity. Impact on the beneficiaries is studied regularly.

CMC LTD, MUMBAI

Mr. R. Ramanan, MD & CEO, CMC Ltd, Mumbai receiving the Award

Ms. Vanita Kumar, GGM - Head CSR, ONGC Ltd, New Delhi receiving the Award

Mr. Anand Kumar, ED-CSR & R & R, NTPC Ltd, New Delhi receiving the Award

Ms. Mohini Daljeet Singh, Chief Executive, Max India Foundation, New Delhi receiving the Award

Mr. Raghavendra Balu, CSR Head, Aditya Birla Nuvo Ltd-Madura Clothing, Bangalore receiving the Award

Mr. Balakrishna, ED, RITES Ltd, Gurgaon receiving the Special Commendation Certificate


Canon India Pvt Ltd is a 100% subsidiary of Canon Singapore Pte Ltd, dealing in imaging technologies. The company is committed to the causes of environment, eye care and education and supporting employees to contribute and share their time and skills towards these causes. CSR policy of the company is aligned with the corporate philosophy-Kyosei - which calls for living and working together for common good.

CANON INDIA PVT LTD, GURGAON

Hindustan Petroleum Corporation Ltd (HPCL), a Navratna and Fortune 500 company, has a strong presence in refining and marketing in the country. HPCL undertakes social commitment through its CSR initiatives all across the country. HPCL spends 2% of its profit of previous year on the CSR initiatives.

HINDUSTAN PETROLEUM CORPORATION LTD, MUMBAI

Mantri Developers Pvt Ltd has been the pioneering force behind the rapidly changing skyline of South India. Through S.E.V.A initiative, company promotes and engages individually and with partners in social contribution activities that help strengthen communities and contribute to the enrichment of society.

MANTRI DEVELOPERS PVT LTD, BANGALORE

GOLDEN PEACOCK INNOVATION MANAGEMENT AWARD

UltraTech Cement Ltd is a modern cement manufacturing plant, and the only white cement plant to use petroleum refinery byproduct- PETCOKE for firing purpose in its kiln. Factors driving innovation include cost optimization and development of a range of value added products

ULTRATECH CEMENT LTD, UNIT: BIRLA WHITE, JODHPUR

A global engineering enterprise, BHEL, is a “20,000 MW per year” Power Plant Equipment manufacturing company. Upgrading existing products to contemporary levels and developing new products in line with the philosophy of “Decade of Innovation 2010-2020” is being continued.

BHARAT HEAVY ELECTRICALS LTD, NEW DELHI

Radio Mirchi is a media company, delivering unique audiences through media vehicles like FM radio, event management. Strength of good will and voluntary work take up the cause of the visually impaired persons and the blind. Radio Mirchi CSR Program is in constant touch with the NGOs and Schools.

ENTERTAINMENT NETWORK INDIA LTD (RADIO MIRCHI), MUMBAI

Ms. Pallavi Rao, CSR Head, ENIL, Radio Mirchi, Mumbai receiving the Special Commendation Certificate

Mr. David Selvarajan, Regional Channel Support Manager, Canon India Pvt Ltd, Gurgaon receiving the Special Commendation Certificate

Mr. Zakir Molla, Chief General Manager, HPCL, Mumbai receiving the Special Commendation Certificate

Mr. Kiran Kumar, VP, Mantri Developers Ltd, Bangalore receiving the Special Commendation Certificate

Mr. Rahul Mohnot, Unit Head, UltraTech Cement Ltd, Birla White receiving the Award

Mr. K. C. Ramamurthy, ED-Electronics Division, BHEL, New Delhi receiving the Award


HealthCare Global (HCG), the major cancer healthcare organization, has revolutionalised cancer care. The healthcare sector on cancer is studied continuously by the company to promote patient-friendly approaches on a cost-effective basis. With intensive effort HCG has become the most effective cancer-care company.

HEALTHCARE GLOBAL ENTERPRISES LTD, BANGALORE

ITC Gardenia is a marvel of technological engineering and architectural genius bringing together the best of what is natural and manmade. Asia's first LEED Platinum rated Green Hotel, ITC Gardenia uses frontier green technologies in its systems, and India's first hotel to be granted permission to operate helicopters on its rooftop.

ITC GARDENIA, BANGALORE

Bennett, Coleman & Company Ltd (BCCL), the leading media organization in India, has created an “Innovation Vertical” where top management and senior leaders from all departments meet every quarter and review progress.The vertical is responsible for creating, maintaining and updating strategic and operational plans from innovation perspective. Chief Innovation Leader deals directly on monthly basis and discusses the progress with top management. Allowing and motivating employees to pitch their ideas is a core element in developing an innovative product.

BENNETT, COLEMAN & COMPANY LTD, THETIMES OF INDIA SUBURBAN PRESS, MUMBAI

Abbott is well known for its contribution to the pharmaceutical sector. Continuous research on drugs and pharmaceuticals is conducted to ensure the lowering of drug prices. The company supports best research and provides sufficient funds for the same. Innovation management is a priority.

ABBOTT INDIA, MUMBAI

Abbott is well known for its contribution to the pharmaceutical sector. Continuous research on drugs and pharmaceuticals is conducted to ensure the lowering of drug prices. The company supports best research and provides sufficient funds for the same. Innovation management is a priority.

RAHEJA DEVELOPERS LTD, NEW DELHI

Citi Bank is a multinational private sector global leader in banking sector. Citi India's “Citizenship Program” targets its strategic efforts in the priority areas of financial capabilities and asset building. Citi continually leverages innovative ideas and practices to create the best outcomes and has established innovation council. Newsletter carrying success stories is shared with the members regularly to increase the visibility of innovation in the organization. An Online Ideas and Innovation Portal has been set-up for the employees to post to encourage collaboration.

CITI BANK N. A., MUMBAI

Mr. Sridhar Iyer, Director-Digital Business, Citibank N. A., Mumbai receiving the Award

Dr. B. S. Ajaikumar, Chairman, HealthCare Global Enterprises Ltd, Bangalore receiving the Award

Mr. Zubin Songadwala, GM, ITC Gardenia, Bangalore receiving the Award

Mr. Sanat Hazra, Technical Director, BCCL, The Times of India, Mumbai receiving the Award

Ms. Varsha Chainani, Director-Public Affairs, Abbott India, Bangalore receiving the Award

Mr. Pravin Raheja, Director-Services, Raheja Developers Ltd, New Delhi receiving the Award




www.iodonline.comINSTITUTE OF DIRECTORS, INDIAM-52 (Market) Greater Kailash Part-IINew Delhi - 110048Tel. +91-11- 41636294, 41636717, Fax:+91-11-41008705Email: [email protected]

Scan withSmart PhoneQR ReaderApp:

Business Networking Meet

Supported By Sponsored By

• The Boardroom and Risk in new Global Economy

• Enterprise Governance: Restoring Boardroom Leadership

• Responsible Business: Tough Choices and Critical Challenges Sustainability in the Boardroom

• Embedding an Ethical Ethos in the BoardroomCorporate Boardrooms: Dealing with Change

• CEO Insights : Key issues affecting Today's Leaders • Board effectiveness for Strategy and Growth

• The Future of Board in 2020

TOPIC HIGHLIGHTS

Theme: Board Effectiveness: Constructive Challenges in the Boardroom

13 - 15 April 2014

Convention 2014Mauritius Global

incorporating

Golden Peacock Awards A Strategic Tool to Lead the Competition

Hon'ble Mr Cader Sayed-HossenMinister of Industry, Commerce and Consumer ProtectionGovt. of Mauritius addressing

th 24 World Congress on LEADERSHIP & BOARDROOM CHALLENGES

Few concepts today have so totally captured the corporate consciousness the world over as the twin ideas of corporate responsibility (CR) and sustainability. The CR concept connotes that nowadays, a company's long term success and perhaps even survival is tied to the stewardship of not only its own wellbeing but also that of the natural and social environment in which it operates.With stakeholders such as employees, consumers and investors paying increasing attention to companies' social and environmental footprints, and regulations such as the Companies Bill in India fueling the fire, companies are eager to understand how to best leverage their CR investments and reap competitive advantage.

The book “Leveraging Corporate Responsibility: The Stakeholder Route to Maximizing Business and Social Value” CB Bhattacharya, Sankar Sen and Daniel Korschunis a must read for those wanting to get the biggest bang for their CR buck. The authors have integrated over a decade of research that spans multiple global companies and thousands of stakeholders to shed light on the conditions under which “it pays to be good.” The key premise of the book is that corporate responsibility offers opportunities to foster strong stakeholder relationships that create value not only for society and the environmentbut also for the business.

The research identifies three interdependent psychological levers that drive stakeholder reactions to corporate responsibility: Understanding, Usefulness, Unity (the 3U's model). The first lever is a stakeholder's Understanding of a company's CR initiatives. The first component of Understanding is awareness: most customers and even many employees are not aware of a company's actions in the CR arena. Next, stakeholders often question the company's motivations for engaging in CR: Is the company seriously trying to help the community or is it just about profit? Notably, stakeholders are remarkably supportive of profit motives as long as the company shows genuine interest and makes a difference to the social cause as well.

The second lever underlying stakeholder reaction to corporate responsibility is Usefulness, or the degree to which a CR initiative provides benefit to the stakeholder. The needs CR fulfills and the concomitant benefits it provides can either be functional (e.g., energy savings from more efficient appliances) or psycho-social (e.g., better integration of work and personal life from working for a socially responsible company). Understanding and Usefulness work together to

create a sense of Unity (the third lever in the described framework), best described as a sense of belongingness to or connection between the stakeholder and the company. The authors provide plenty of evidence showing that when these levers work harmoniously, they produce the greatest value for both the company and society, maximizing the triple bottom line of people, planet and profit.

Companies that want to maximize corporate responsibility value must demonstrate commitment, must co-create value with stakeholders, must communicate such value to stakeholders and finally calibrate or measure stakeholder reactions with more discipline than they do at the moment. In short, the answer to the oft asked question, “Does it pay to be good?” is a resounding, “It depends!” Investments in the CR realm are rewarded by stakeholders only under certain conditions as explicated in the book. But there is value to be extracted for those who get the strategy right!

CB Bhattacharya is Dean of International Relations and E.ON C h a i r P ro f e s s o r i n C o r p o r a t e R e s p o n s i b i l i t y at European School of Management and Technology in Berlin, Germany.

CB Bhattacharya


Date Publication: 5th February 2014Date of Posting: 6th - 7th February 2014

Postal Registration No.: DL (S)-01/3051/2013-2015RNI No.68701/95

Printed and published by J.S.Ahluwalia, President on behalf of Institute of Directors at Maximus Packers.49 - DSIDC Okhla Phase - 1, New Delhi and published at M-52 (Market), Greater Kailash-II, New Delhi - 110048

Documents

CSR Intnl Conf Highlights.goldenpeacock2014