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CSR INITIATIVES & AWARDS

Dharmesh Jain Presentation at the CREDAI EC GCB – May 3 2015 at Bengaluru

Corporate Social Responsibility (CSR)

§  Wikipedia defines Corporate Social Responsibility: as a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and international norms. With some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law.”

§  CSR aims to embrace responsibility for corporate actions and to encourage a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others.

§  Business dictionary defines CSR as "A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs and (3) by earning adequate returns on the employed resources.”

Rationale

§  CREDAI is the backbone of real estate sector in the country. The real estate sector contributes as one of the important growth engines of the Indian economy.

§  As the sector gains strength, the economic health of the nation improves. However, apart from economic nation building, this sector is active in creating sustainable living across the country.

§  The real estate fraternity is a socially responsible community which has demonstrably carried out large amount of social and charitable efforts in the area of building Schools, Hospitals, Skill Development, Education, Places of Worship, Old Age Homes, Care Centers, Child Centers, Roads and Gardens amongst many others.

§  It is the endeavor of the CREDAI’s National Team to bring about a synchronization of efforts made by real estate developers across the country in the most effective manner by which the social development projects undertaken are best showcased as a cohesive effort at bringing about a social revolution in the country.

Objectives

§  To facilitate synthesis of CSR and Sustainability initiatives of developers (CREDAI Members) across the country.

§  To issue policy directives on the subject, and to devise an appropriate corporate communication strategy.

§  Encourage and motivate adoption of best practices

§  Become role models for others to emulate.

§  Encourage employees to stay committed to CSR.

§  Create strategies for improvement in operational standards.

§  Recognize outstanding contribution to CSR.

§  CSR and Sustainability initiatives should address social, economic and environmental concerns and in the selection of activities should be on premise of their consequential social, economic and environmental impact.

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CSR INITIATIVES

CREDAI – EDUCATIONAL SCHOLARSHIP FUND (CESF)

Objectives

CREDAI – Educational Scholarship Fund (CESF):

•  Professional education has an important role to play in broadening horizons and encouraging competitive thinking. We believe that a lack of resources should not preclude promising students from accessing all opportunities and developing their full potential.

•  CESF is proposed to be instituted with the objective of promoting higher education by offering scholarships to qualified students who are pursuing full-time degree/post-graduate degree courses in Civil Engineering or pursuing Management Degree related to Real Estate or Architerural course and draughtsman courses at any, All-India Council of Technical Education (AICTE) recognized University/College, across the country.

•  CREDAI can play a pivotal role in creating a student population adept with professional

knowledge who can then play a constructive role in the real estate industry and given the opportunity, such individuals/students will be able to achieve their full potential and assume leadership positions to contribute towards the nation's economic development.

Mission

§  Our mission is to help economically underprivileged and academically bright students in India complete their professional education so that they can embark on a bright career path. CREDAI seeks to achieve its mission through its Scholarship Scheme.

§  Because of their family's extremely poor income conditions - academically outstanding students are often forced to discontinue their education and forego their dreams of professional education and successful career.

§  CESF will help students break the cycle of poverty that generations before them have had to endure and to harness their talent to make them productive members of society. Educating youth has an impact not only on the individual, but the family, the community and the country as a whole.

   

SCHOLARSHIP  FUND  

CESF Model

TRAINED  PROFESSIONALS  WHO  CONTRIBUTE  TO  THE  DEVELOPMENTAL  PROGRESS  OF  THE  NATION  AND  AT  THE  SAME  TIME  PAYS  BACK  TO  REPLENISH  

THE  LOAN  AMOUNT  

CREDAI  –  EDUCATIONAL  SCHOLARSHIP  FUND  

(CESF)  

CESF – Process SUGGESTED PARAMETERS FOR SELECTION OF STUDENTS FOR AWARDING SCHOLARSHIPS

§  Gross Joint income of the family of the candidate from all sources should not exceed ₹2,00,000/- (Rupees Two Lakh) per annum. Income certificate should be issued by Competent Revenue Authorities only. Any Affidavit for Income Proof will not be accepted.

§  The student should have scored a minimum 80% of marks in the Higher Secondary Examinations or the equivalent examination (recognized by the State Board/Central Board).

§  The marks obtained in the qualifying examination making the students eligible to seek admission in the respective first year of these courses will be considered for selection. Criterion for selection will be merit and family's income.

§  Students desirous of pursuing full time/regular courses all related to Real Estate (not correspondence or distance mode) & studying in Schools / Colleges / Institutions / Universities recognized by AICTE / State Education Boards / State Govt. / ICSE / ISC / CBSE / Central Govt. / Association of Indian universities, shall be eligible to apply.

§  The student should have bonafide admission in the 1st year of School/College/Institute/Universityrecognized by AICTE/Central Government. Students having confirmed admission in the first year of full time Civil Engineering degree courses (minimum 4 years), MBA – real estate (minimum 2 years), Full Time Architectural Course, Draughtsman course, will be eligible to apply.

§  Notwithstanding the above, labourer’s children who are bright in academics with proven academic excellence and record will also be included in CESF, for receiving scholarship for pursuing education on need basis and case-to-case basis, purely on merit.

§  Scholarship Loan from CREDAI can be given as per the following: deserving stundets for Civil Engineering degree courses: ₹ 50,000/- each p.a., deserving students for Architectural Courses ₹ 25,000/- each p.a. and deserving students for draughtsman course: ₹ 15,000/- each p.a.

CESF – The Way Forward

§  The CREDAI Scholarship fund to the tune of ₹17+ Crores will be utilized towards scholarships to deserving students especially Civil Engineering students, students pursuing Architectural courses, Draughtsman courses and students pursuing management education related to real estate.

§  2000 students can be given a scholarship maximum amount of ₹50,000/- each which will be given to them as an interest-free loan to be repaid after they start earning in a period of within 1 year of their employment and the students will give sign an undertaking towards such re-payment and along with its terms & conditions.

§  For starters, CESF will be the bridge for the students to cater to the funding of their education. From the second year onwards, the scholarship amount may be used as margin money to avail Education Loan from Banks. CREDAI will initiate the necessary tie-ups with leading national banks to provide educational loans to these deserving students.

§  In this manner, CREDAI will a pool of trained professionals especially specializing in the real estate sector who can be an asset to the real estate industry.

§  CREDAI will absorb these trained professionals in their member-developer companies. This will provide employment guarantee for these highly skilled and trained professionals.

Methodology for Donations and Tax Benefits*

•  Confederation of Real Estate Developers Association of India (CREDAI or the company), established in 1999 as a section 25 company under the Companies Act, 1956 (now Section 8 of Companies Act, 2013), is the apex body for private real estate developers in India. The company is also registered under section 12A of the Income Tax act, 1961

•  CREDAI links its over 9000 member private real estate developers to the government and customers through its activities and initiatives

•  As part of its CSR, CREDAI conducts a vocational and technical training program and has adopted a zero garbage policy as part of the Swachh Bharat mission.

•  CREDAI in collaboration with its members, intends to provide education loan to underprivileged students and provide skill training and undertake construction of gardens for general public utility, (collectively referred as ‘proposed activities’).

•  The Companies Act, 2013 have introduced provisions of section 135 which having been notified and effective from 1 April 2014 mandate all eligible companies to comply with the requirements set out therein.

•  CREDAI has approached the firm to evaluate whether CREDAI can be considered an eligible CSR implementing agency for conducting CSR activities in collaboration with its members.

•  The following slides discuss a CSR implementation strategy for CREDAI and its members.

* KPMG

Implementation structure

Fund flow

A B C D

CREDAI CSR Foundation

CREDAI

North East Central South West

Donors: •  Credai Members •  Non Credai members

•  3 year track record •  Experience in relevant

projects/programs Existing CSR trusts/ organizations

Implement CSR projects

New entity formed for: •  Objects in line with schedule VII •  Implementation of CSR projects •  Obtaining 12A approval and 80G

registration •  Employing people

* KPMG

Analysis

Criteria Donors Existing CSR foundation CREDAI foundation

Eligibility for CSR A company satisfying any or all of the following: a.  Net worth: >= INR 500 crores b.  Turnover: >= INR 1000 crores c.  Net profit: >= INR 5 crores

Compliance of activities with schedule VII

Identify areas of intervention in compliance with Schedule VII

Needs to be evaluated Need to have objects in line with activities mentioned in schedule VII

CSR implementation agency 1. Track record of three or more years

ü û Will have post 3 years

2. Experience in relevant CSR projects

Needs to be evaluated

Monitoring and evaluation framework

Need to maintain reports on the impact of projects for reporting in annual reports

Necessary requirement: Need to maintain proper reports to share with donors

Need to maintain proper reports to share with existing foundation who in turn share with donors

Tax benefit for donors 12 A approval and 80 G registration required for tax benefit to donors

Not applicable as not directly receiving funds from donors

* KPMG

Implementation structure "After 3 years

Fund flow

A B C D

CREDAI CSR Foundation

CREDAI

Donors: •  Credai Members •  Non Credai members

Implement CSR projects

•  Receive finds from the donors •  Deploy funds for schedule VII

compliant projects

* KPMG

EVOLVE GREEN SPACE

Background Research

§  Sports is instrumental in a country’s progression from becoming a Developing to a Developed nation. Among many nations that have used sports to showcase their economic superiority are Japan, South Korea, Russia, Germany, South Africa and now China. Based on this premise, we firmly believe that Sports is a perfect embodiment of Fitness and both are natural extensions of each other.

§  Approx. 770 million people in India are below the age of 35 yrs of age. Approx. 50 million (6.50%) of this population has access to organized sports in the country.

§  Only 10% of schools have access to developed play fields/green spaces.

§  Research undertaken in several countries has shown that increased sports activity results in better academic performance, reduction in crime, growth in leadership and team spirit, and greater social inclusiveness.

§  China, which has emerged as a leading-edge sporting nation over the past few decades, has 37 per cent of its population i.e. 480 million citizens, actively participating in physical education and sports activities.

§  A small country like Cuba, population of about 11.5 million, boasts of approx. 2 million athletes (17.39%) , of whom 23,000 are in the high performance category in 38 different sports disciplines at the national and international level.

§  China has over 350,000 popular sports instructors.

§  Excellence in sports adds to national pride.

§  Opportunity to promote sports tourism in India.

Background Research

§  Developers across the country have the ability to create one of the dying needs of the availability of play-grounds for children.

§  An analysis at the grass root level shows absence of world class infrastructure facilities and sporting equipment as a major cause for lack of development of Sports Sector in India.

§  We should target to build a world class sports infrastructure and make available the best sporting technology and equipment, which is vital to development of sports.

§  If Developers across India take up this cause of developing Green Spaces in the form of multi-sporting arenas, we firmly believe it will have a dramatic impact in creating a positive perception towards the real estate sector.

Objectives

§  Create employment opportunities for sportsmen, coaches, trainers, medical professionals, fitness experts apart from employment in maintaining and operating the infrastructure facility.

§  Create a larger talent pool of players for India to leverage through encouragement to mass participation in sports.

§  Encourage people to pursue sports as a professional career option. Career oriented programmes for athletes to help them effectively manage their sporting career.

§  Strong sports culture will make India’s super economic growth story more inclusive and respected in the international community

Objectives (continued)

Develop Playgrounds Into Multi-sports arenas

§  To give a further impetus to this activity and to incentivize people-participation in sporting activity, we have gone an extra mile in researching about the best facilities one can assimiliate in variable space areas.

§  To transform grounds into a hub of multi-sporting activity.

§  We have propounded Prototypes that can be provided to factor in the development of playgrounds as per space availability. We have come up with prototypes for the ideal sports play grounds for areas such as 3 acres, 6 acres, 14 acres and 25 acres of land, along with the costs for developing these grounds, as well as operating & maintenance costs.

§  These playgrounds should work on a co-operative basis, where-in the playgrounds are shared between the community and the school/s in and around the areas of these playgrounds.

Develop Playgrounds Into Multi-sports arenas

§  Making Prototypes of 3, 6, 14 and 24 Acres Sports Grounds will guide us about what all sports activities can be planned within the available space. The Numbers and Standard sizes of activities are entirely dependent upon the Size and Shape of available Grounds.

§  Within the 3 to 6 Acres of ground sizes, to accommodate 400 Meters Running Track or Standard Size Cricket Ground is not possible. But we can shrink the size of Cricket/ Football Ground as per the available space while maintaining the other Fitness Activities like, Jogging & Cycling Track, Outdoor Gym, Children Play Area , etc. and also if possible Tennis Court / Basketballs Court.

§  Within 14 to 25 Acres of Ground sizes, we can accommodate IAAF Standards 400 Meters Running Track along with more open grounds which can be utilized for Cricket and Football as per the available space and shape. Numbers of Tennis Court and Basketballs Court can be plan as per the requirement. Considering the footfall for this Size of Ground, we can partially elevate the Jogging & Cycling Track at Entrance to avoid crossing movement of public while maintaining the other Fitness Activities like, Jogging & Cycling Track, Outdoor Gym, Children Play Area, etc. Considering the size, multiple entries can be planed to make access easier.

REFERENCE IMAGE FOR ELEVATED TRACK

REFERENCE IMAGES FOR CYCLING AND JOGGING TRACK

REFERENCE IMAGES OF ENTRANCE PLAZA

REFERENCE IMAGES OF ENTRANCE PLAZA

REFERENCE IMAGES FOR OUTDOOR GYM

REFERENCE IMAGES FOR CHILDRENS FITNESS AREA

REFERENCE IMAGES FOR PROPOSED HARDCOURTS

REFERENCE IMAGES FOR PROPOSED HARDCOURTS

REFERENCE IMAGE FOR PROPOSED I.A.A.F. STANDARDS RUNNING TRACK FOR 400 METERS : (INTERNATIONAL ASSOCIATION OF ATHLETICS FEDERATIONS)

REFERENCE IMAGES CRICKET GROUND AND NET PRACTICE

REFERENCE IMAGES FOR FOOTBALL GROUND

REFERENCE IMAGES OF INDIAN SPORTS

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CSR AWARDS

Instituting: CREDAI’s CSR AWARD

§  CREDAI wishes to celebrate the community spirit of the real estate sector by instituting a series of CSR awards exclusively for the CREDAI community. We invite you to support this celebration.

§  We wish to move CSR beyond the statutory requirements of the new Companies Act (Section 135 : 2% of the average net profits), to touch ordinary lives.

§  The CREDAI’s CSR Awards would like to celebrate and honor the real estate sector’s commitment to social development embodying the principles of corporate responsibility in their business philosophy and operations.

§  The award will acknowledge efforts of the companies which engage in CSR in a strategic and systematic manner and integrate it with their overall corporate strategy.

Key Focus Areas & Parameters

§  CSR management

§  CSR integration in the core business

§  CSR addressing the needs of the community and the region

§  CSR partnering to the local communities for their sustained development

§  CSR towards generating employment

§  Community development programs

§  Responsible business practices

§  Health care programs

§  Sports promotion programs

§  Towards sustainable livelihoods, better heath and education

§  Sustainable education and literacy programs

§  Emergency services and disaster management for the society

Methodology

§  Collating of the Information / Statistics: The basic idea is to use our existing CSR work to form a large group which continuously shares information with each other. That there is a mountain of information and knowledge (I + K) within the 11000 members of Credai is a fact. The difficult part is to convince the members to share this I +K with a central point.

§  To induce members to get into the habit of sharing suggest

§  Announcing a CSR Awards – Incentivising and Recognising CSR work of members.

§  One or 3 awards for each region for the best CSR work from that region

§  The regional winners compete for the best National CSR Work

§  A National Awards function with Minister/s and important Government functionaries as Invitees and one among them being Chief Guest

§  This Event to be widely covered by TV/Print Media/Social Media

Methodology (Continued)

§  Region-wise Awards: Call for Region-wise applications for the awards. East / West / North / Central / South regions.

§  All India: A National Award (to be competed for amongst the best region-wise winners).

§  Categories of Awards: Best: Hospital, School, College, Garden, Playgrounds, Public Utilities, Public Awareness Campaigns, Swachha Bharat etc.

§  The Awards to be given out at the evening of the Delhi Conclave. A national media partner to televise the awards on national television.

§  The entries received from the companies will be thoroughly scrutinised by independent assessors like Grant Thornton (India) or CRISIL, who will shortlist companies, in each of the categories for further process. Subsequently, CSR and Sustainability experts drawn from prestigious institutions of India will conduct the 'on-site assessment' of the CSR work. Lastly, an independent Jury comprising of eminent persons from the relevant spheres will make the final selection for the Award in each of the the categories.

Process §  The entire process shall be undertaken by an independent agency like Ernst & Young, CRISIL or KPMG etc.

Stage # 1:

§  Application form

§  Supporting documents: Annual Reports, CSR/Sustainability Reports and CDs

§  Available research, literature, Websites and relevant links

§  Discussion with experts in respective fields

Stage # 2:

§  Interaction with the CEOs, Senior/Middle Management across departments

§  Firsthand look & interaction at the operations and environment management systems, processes in

§  power plants, blast furnaces, occupational health centres etc.

§  Focus group discussions with the employees, union/association members, partner NGOs, local

§  government officials etc.

§  Focus group discussions with community groups, interaction with beneficiaries such as school

§  teachers, children, parents etc.

§  Observation

§  General/informal interaction with people around

Process (Continued)

§  After the first stage assessment is over, CREDAI will get in touch with the concerned shortlisted company to plan a field visit, which will include all the points above, or any other inputs from field assessors.

§  Subsequently, a panel of experts on CSR and Sustainability from prestigious institutions of India will conduct the 'on-site assessment' of the CSR work. The field trip duration will be based on the sector; nature of the company e.g. mining, manufacturing, and multi locations etc. & on an average will be 1-2 days per shortlisted company.

§  The company could indicate the place/project that they would like the Assessment team to visit especially if it is spread across states & indicate order of priority. The assessment team, however, would reserve the right to choose which field project to visit. The assessment team is to be given a free hand to conduct the assessment objectively & only minimum office teams to accompany the assessment team in the field.

§  The organizer, independent assessors and the Jury will have the sole right and discretion to reject entries which in their view do not meet the basic specified criteria. The decision shall be final and binding on all parties concerned.

Timelines & Annoucement

§  The entire process from calling of entries to declaring the winners will entail a period of

3-4 months.

§  We need to have all the independent agencies, assessors, jurors in place.

§  Eminent personalities to be invited to be on board of the assessment / jurist panels.

§  We should initiate the process in June so that we can announce the awards in Oct/Nov

2015 at the Delhi Conclave.