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What is corporate socialWhat is corporate social

responsibility?responsibility? CSRCSR isis thethe continuingcontinuing commitmentcommitment byby businessesbusinesses toto

behavebehave ethicallyethically andand contributecontribute toto economiceconomic developmentdevelopmentwhilewhile improvingimproving thethe qualityquality ofof lifelife ofof thethe workforceworkforce andand

theirtheir familiesfamilies asas wellwell asas of of thethe locallocal communitycommunity andand societysocietyatat largelarge..

TakingTaking responsibilityresponsibility forfor thethe impactimpact ofof activitiesactivities onon allall thethe

directdirect && indirectindirect stakeholdersstakeholders asas wellwell asas thethe environmentenvironment..

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Triple Bottom Line

Economic

Social

Environment

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Economic Aspect of CSREconomic Aspect of CSR

Required of Business byRequired of Business by SocietySociety

Be profitableBe profitable

Labour SecurityLabour Security

Maximise sales revenueMaximise sales revenue

Minimize costsMinimize costs--Control InflationControl Inflation

Job CreationJob Creation Be attentive to dividend policyBe attentive to dividend policy

Be transparent to ShareBe transparent to Share--holders.holders.

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Environmental Aspect of CSREnvironmental Aspect of CSR

Obligation of Business to SocietyObligation of Business to Society Sustainable DevelopmentSustainable Development

Efficient use of natural resources (Energy materialEfficient use of natural resources (Energy material

& water etc.)& water etc.) Efficient environmental management & protectionEfficient environmental management & protection

Usage & Innovation of Environmental friendlyUsage & Innovation of Environmental friendly

technologies.technologies.

Emissions effluents & waste managementEmissions effluents & waste management

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Social Aspect of CSRSocial Aspect of CSR

Desire of Business by SocietyDesire of Business by Society Support Art & CultureSupport Art & Culture

Disaster ReliefDisaster Relief

Human RightsHuman Rights Community Involvement/ImprovementCommunity Involvement/Improvement

Consumer ProtectionConsumer Protection

Respect for National Sovereignty & LocalRespect for National Sovereignty & LocalCommunityCommunity

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Legal Aspect of CSRLegal Aspect of CSR

Required of Business byRequired of Business by SocietySociety

Environmental LawsEnvironmental Laws

Consumer LawsConsumer Laws

Labour LawLabour Law

Foreign Corrupt Practices ActForeign Corrupt Practices Act

Fulfil all contractual obligationsFulfil all contractual obligations

Obey and adhere to all other laws Acts,Obey and adhere to all other laws Acts,Rules & RegulationsRules & Regulations

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Ethical Aspect of CSREthical Aspect of CSR

Expected of Business byExpected of Business by SocietySociety

PayPay TaxTax

QualityQuality Product/ServicesProduct/Services avoidavoid AdulterationAdulteration

AvoidAvoid questionablequestionable practicespractices

RespondRespond toto spiritspirit ofof lawslaws

OperateOperate aboveabove minimumminimum requiredrequired byby lawlawAssertAssert ethicalethical leadershipleadership

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Upper EdgeUpper Edge________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Brand ImageBrand Image

Create Shareholder ValueCreate Shareholder Value

Increased Revenue BaseIncreased Revenue Base

Operations EfficiencyOperations Efficiency

Better Access to CapitalBetter Access to Capital

Human & Intellectual CapitalHuman & Intellectual Capital

Lower Business RiskLower Business Risk

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Conflict of Interest / The IssueConflict of Interest / The Issue______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

______________________________________________________

PrimaryPrimary RoleRole ofof EconomicEconomic BodyBody isis EconomicEconomic && BusinessBusiness notnotSocialSocial ServicesServices..

TraditionalTraditional MotiveMotive isis MaximizationMaximization ofof ProfitProfit..

DivertingDiverting resourcesresources toto otherother goalsgoals wouldwould undermineundermine thetheachievementachievement ofof conventionalconventional goalsgoals..

DifferentDifferent PrioritiesPriorities withinwithin ManagementManagement andand stakeholdersstakeholders..

CSRCSR isis aa PublicityPublicity StuntsStunts byby aa fewfew CompaniesCompanies

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Easy everyday examples ofEasy everyday examples ofsocial responsibilitysocial responsibility

NN Type of OrganisationsType of Organisations Examples of socially responsible activitiesExamples of socially responsible activities

11 Movie TheatresMovie Theatres/Multiplexes / Malls/Multiplexes / Malls

--ScreeningScreening ofof socialsocial messagemessage filmsfilms--SpecialSpecial showsshows forfor underprivilegedunderprivileged groupsgroups--OfferingOffering tabletable spacespace forfor NGOsNGOs--AdoptingAdopting aa nearbynearby gardengarden // openopen spacespace andand

maintainingmaintaining itit22 Petrol PumpsPetrol Pumps --PromotingPromoting accidentaccident awareness,awareness, pedestrianpedestrian safetysafety

--CheckingChecking andand offeringoffering fuelfuel efficiencyefficiency tipstips

33 ShopsShopse.g.: Chemistse.g.: Chemists

--AwarenessAwareness postersposters ofof symptomssymptoms ofof differentdifferentdiseasesdiseases--CollectingCollecting && donatingdonating oldold medicinesmedicines toto charitablecharitable

hospitalshospitals--OfferingOffering discounteddiscounted medicinesmedicines forfor poorpoor patientspatients

44 Private HospitalsPrivate Hospitals --CreatingCreating aa PatientsPatients InformationInformation CentreCentre && LibraryLibrary--EncouragingEncouraging citizenscitizens toto helphelp accidentaccident victimsvictims bybytakingtaking carecare ofof legallegal aspectsaspects ofof accidentsaccidents //emergencyemergency casescases--DisplayingDisplaying PatientsPatients andand DoctorsDoctors BillBill ofof RightsRights &&ResponsibilitiesResponsibilities

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Easy everyday examples ofEasy everyday examples ofsocial responsibilitysocial responsibility

No.No. Type of OrganisationType of Organisation Examples of socially responsible activitiesExamples of socially responsible activities

55 Private Schools &Private Schools &CollegesColleges

--GettingGetting AlumniAlumni toto instituteinstitute scholarshipsscholarships && prizesprizes--OfferingOffering spacespace forfor trainingtraining // classesclasses // sports,sports, etcetc..--AdoptingAdopting aa locallocal gardengarden--EncourageEncourage volunteeringvolunteering forfor topicaltopical causescauses

66 Housing SocietiesHousing Societies --SuggestingSuggesting solutionssolutions forfor locallocal problemsproblems toto govtgovt &&

mediamedia--MaintainingMaintaining nearbynearby publicpublic spacesspaces includingincludingfootpathsfootpaths

--OfferingOffering spacespace inin societysociety (garage,(garage, etcetc..)) forfor useuse forfortrainingtraining classesclasses.. etcetc.. oror asas aa materialmaterial collectioncollectioncentrecentre

77 Hotels and RestaurantsHotels and Restaurants --DonatingDonating excessexcess foodfood responsiblyresponsibly--CompostingComposting foodfood wastewaste

88 Media (TV, print, radio)Media (TV, print, radio) --FeaturingFeaturing profilesprofiles andand achievementsachievements ofof NGOs/NGOs/citizenscitizens--SpreadingSpreading socialsocial serviceservice messagesmessages--DedicatingDedicating sectionssections onon socialsocial && developmentaldevelopmentalissuesissues

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Critical Success FactorsCritical Success Factors

CommitmentCommitment fromfrom KeyKey PeoplePeople:: Management,Management, OwnersOwners..

ValuesValues ofof VisionVision integratedintegrated intointo thethe businessbusiness && itsits cultureculture(Corporate(Corporate strategy,strategy, mainstreammainstream managementmanagement processprocess &&policiespolicies andand everydayeveryday operationaloperational practice)practice)..

OpennessOpenness toto learning,learning, improvementimprovement andand innovationinnovation..

EngagementEngagement withwith externalexternal stakeholdersstakeholders..

EmployeesEmployees involvementinvolvement inin developmentdevelopment && implementationimplementation..

FroFro DevelopingDeveloping countriescountries likelike IndiaIndia:: AppropriateAppropriate LegalLegalenvironment,environment, PresencePresence ofof strongstrong civilcivil societysociety organizationsorganizations..

HighHigh levellevel ofof awarenessawareness amongstamongst consumersconsumers andand investorsinvestors ofofthethe issuesissues andand companiescompanies responsesresponses toto themthem..

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A Navaratna Company of Govtof India engaged in thermalpower generation

A leading power company ofIndia having 13 coal based and7 gas based power stations

Ranked as the sixth largestthermal generating company inthe world

Turnover : 39873 Crore

PAT : 7129 Crore

CSR contribition : 0.5% of PAT

NTPCNTPC a leading Indian power utilitya leading Indian power utility

CSR : NTPCCSR : NTPC

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CSR : NTPCCSR : NTPCActivitiesActivities

65 CSR initiatives in 23 projects : Health, Environment,65 CSR initiatives in 23 projects : Health, Environment,Development of girl child & EducationDevelopment of girl child & Education

More than 200 villages benefited.More than 200 villages benefited.

Contribution to Rajiv Gandhi vidyutikaran scheme.Contribution to Rajiv Gandhi vidyutikaran scheme.

Target of electrifying 40000 villages by 2020Target of electrifying 40000 villages by 2020

Rs 36 crores spent on CSR in 2007Rs 36 crores spent on CSR in 2007--08, Third largest in08, Third largest inIndiaIndia

Dadri Plant has adopted 3 secondary schools in nearbyDadri Plant has adopted 3 secondary schools in nearbyvillages : GM himself teaches in these schools.villages : GM himself teaches in these schools.

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Development of physically challenged peopleDevelopment of physically challenged people

Recruitment in NTPCRecruitment in NTPC

Providing conducive Physical infrastructureProviding conducive Physical infrastructure

Scholarship for physically challenged studentsScholarship for physically challenged students

Education & training opportunities for physically challengedEducation & training opportunities for physically challenged

Small contracts to physically challengedSmall contracts to physically challenged

Support to NGOs working for disabledSupport to NGOs working for disabled

CSR : NTPCCSR : NTPC

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CSR : NTPCCSR : NTPC____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

ImpactImpact

SocialSocial: could reach out & help social group, who: could reach out & help social group, whootherwise are untouched by corporate & theotherwise are untouched by corporate & thecredibility thus earned is much more than merecredibility thus earned is much more than mererevenue.revenue.E.g. In 1999, in singrauli, 2 girls went to schoolE.g. In 1999, in singrauli, 2 girls went to schoolagainst 10 boys which was subsequently increasedagainst 10 boys which was subsequently increasedto 6 against 10 in 2007.to 6 against 10 in 2007.

EnvironmentalEnvironmental: could spread the message of: could spread the message of

environment ethics across the society.environment ethics across the society.

Economic impactEconomic impact: could establish its brand equity /: could establish its brand equity /credibility across the community even in Ruralcredibility across the community even in Ruralareas and became household nameareas and became household name..

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Company Development and CSRCompany Development and CSR

From the early 1990s, Dow has trodden a path of ecoFrom the early 1990s, Dow has trodden a path of eco--efficiency Responsibleefficiency ResponsibleCare programme.Care programme. In 1993, Fortune magazine named Dow one of America'sIn 1993, Fortune magazine named Dow one of America'sTop 10 Environmental Champions.Top 10 Environmental Champions.

Statement of intent to set new standards in sustainability including workplaceStatement of intent to set new standards in sustainability including workplacesafety, environmental stewardship, excellence in corporate governance andsafety, environmental stewardship, excellence in corporate governance and

corporate responsibility, and maintaining the highest ethical standards.corporate responsibility, and maintaining the highest ethical standards.

Energy and ecoEnergy and eco--efficiency have been the focus of much of Dows CSR activity.efficiency have been the focus of much of Dows CSR activity.Between 1996 and 2005, Dow reduced its consumption of fossil fuels perBetween 1996 and 2005, Dow reduced its consumption of fossil fuels perpound of product by more than 20%.pound of product by more than 20%.

Dow's 2015 goals are for further improvements in energy efficiency of 25%Dow's 2015 goals are for further improvements in energy efficiency of 25%over the next decade.over the next decade.

The company intends to achieve this reduction via a combination of energyThe company intends to achieve this reduction via a combination of energyefficiency; greater use of alternative, low carbon energy sources; and carbonefficiency; greater use of alternative, low carbon energy sources; and carbonoffsetting.offsetting.

CSR : Dow ChemicalCSR : Dow Chemical

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Working on water efficiency: In 2003, Dow sites andWorking on water efficiency: In 2003, Dow sites andbusinesses reduced water needs by nearly 20 million tones,businesses reduced water needs by nearly 20 million tones,saving the company US$15 million. Some of the examplessaving the company US$15 million. Some of the examplesare:are:

At the Midland, Michigan (US) site, demand has beenAt the Midland, Michigan (US) site, demand has beenreduced by almost 7.56 million metric tones of waterreduced by almost 7.56 million metric tones of waterannuallyannually enough to supply 30,000 US households.enough to supply 30,000 US households.

In Guaruj, Brazil, optimizing tank operation and washingIn Guaruj, Brazil, optimizing tank operation and washingreduced water usage by 10%reduced water usage by 10% equivalent to 2,000 metricequivalent to 2,000 metrictones of water saved.tones of water saved.

CSR : Dow ChemicalCSR : Dow Chemical

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Creating awareness amongst general public.Creating awareness amongst general public. Introduction of CSR amongst SMEs to reach remote areas.Introduction of CSR amongst SMEs to reach remote areas.

accreditation of CSR initiatives by an independent agencyaccreditation of CSR initiatives by an independent agencyand making CSR a part of the curriculum at managementand making CSR a part of the curriculum at managementschools, colleges and universities.schools, colleges and universities.

Integration of CSR into the DNA of business.Integration of CSR into the DNA of business.

active role played by media in highlighting CSR successactive role played by media in highlighting CSR successstories.stories.

management commitment, streamlining of CSR withmanagement commitment, streamlining of CSR withstringent monitoring withoutstringent monitoring withoutbeing bureaucratic andbeing bureaucratic andCSR friendly lawsCSR friendly laws

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Initiatives ExpectedInitiatives Expected____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________