National & International Trends in CSR
a look at the different national & international trends seen in the field of Corporate Social Responsibility (CSR)
Published on: Mar 3, 2016
Transcripts - National & International Trends in CSR
Jash Desai# 306
Harsh Gupta# 308
Kushal Karamchandani# 309
Chittesh Khilnani# 310
Nachiket Kulkarni# 311
Ashwin Mehta# 313
Pratik Mehta# 314
Ishan Parekh# 315
Ankit Shah# 317
The Government understands that ―CSR is at
heart a process of managing the cost and
benefits of business activity to both -
Internal stakeholders (employees, shareholders
External stakeholders (public governance
, community members)
Government of India conducted a limited review
and the main focus of the review was –
System of planning for CSR activities
System for fixation of targets for CSR activities.
Budget allocation and its utilization for CSR
Monitoring mechanism for implementation for
The government has created a framework for
delivering CSR activities to fill the time – gap between
the growth and distribution.
The government has developed the Voluntary
Guidelines for CSR for India as well as for multi- and
trans-national and it can benefits for their overseas
• Kendriya Vidyalaya schoolsEducation
• Seeds, fertilizer, farm equipments, warehousing, cold
chains, food processing and organic foods.
• Send various documents/notices through electronic
• Audio visual electronic communication i.e video
• NICNET (1987)National Satellite-based Computer
• Offered free hardware and software to the State
The CSR policy should normally cover the following core
1) Care for all stakeholders.
2) Ethical functioning.
3) Respect for workers rights and welfare.
4) Respect for environment.
5) Activities for social and inclusive development.
6 ) Respect for human rights.
1) Identification of projects, setting measurable physical
targets with timeframes, time schedule and monitoring.
2) allocate specific budgets for CSR activities
3) To share experiences and network with other
4) Disseminate information on CSR policy and activities.
Govt Initiatives in drawing the rules and
regulations for CSR activities in Industrial Sector
Govt. of India has drawn more than 24 Acts
and Rules since the disastrous event of
Bhopal Gas Tragedy in 1984.
These Acts are important as part of
government initiative in order to protect the
environment from devastating events
The Govt. of India has also formed bodies or
organizations which keeps a check on the
Drawn Immediately after the Bhopal Gas
The gases escaped from the unit caused
death of thousands of people
Apart from death of people, certain lethal
diseases also got genetically transmitted in
the families living nearby.
This enforced the government to draw
environment protection Acts and Rules so
that these incidents don‘t repeat again.
It mandates certain policies for every industry
to follow in order to protect the environment
Main agenda under this Act was
◦ To co-ordinate the activities of the various
regulatory agencies already in existence
◦ To appoint environment officers to check
◦ To improve the quality of life by protection of
◦ To protect the forest and wildlife in the country
Standards for emission or discharge of
environmental pollutants were drawn under
In order to protect environment from the
hazardous impact, government initiated
organizations are formed to enforce the
Basically drawn for industrial projects
It mandates waste disposal policies and
necessary standards for keeping a check on
It mainly focused on providing legislations on
◦ Forest and wildlife protection
◦ Water protection laws
◦ Air protection laws
◦ General environmental laws
The products which fulfill the quality requirement
of a product standard are provided with a
The objectives of the scheme was
◦ To provide an incentive for manufacturers and importers
to reduce adverse environmental impact of their
◦ To reward genuine initiatives from the companies to
reduce the adverse environmental impacts
◦ To encourage citizens to purchase products which are
◦ To improve the quality of environment and to encourage
optimum usage & management of resources
A steering committee
◦ Determines the product categories for coverage under
◦ Formulate strategies for
promotion, implementation, future development, and
improvements in the working of the scheme
A technical committee (set up by CPCB)
◦ Identifies the product to be selected and individual
criteria of process to be implied
Bureau of Indian Standards
◦ To assess and certify the products
◦ Drawing of contracts with the manufacturers allowing
the use of label on payment of a fee
Inviting objections from the public within sixty
days from the date of publication of the said
notification, against the intention of the Central
Government to impose restrictions and
prohibitions on the expansion and modernization
of any activity or new projects being undertaken
in any part of India unless environmental
clearance has been accorded by the Central
Government or the State Government in
accordance with the procedure specified in that
Ex- Navi Mumbai Airport project was halted due
to EIA report
These rules apply to following hazardous
◦ Waste being disposed in water bodies or land
◦ Wastes arising out of the operation from the ships
◦ Radio-active wastes as covered under the
Under this CSR Act, government of India
prohibited the usage and handling of Azo
These dyes are mainly used in textile industry
for providing colors to the fabric
This dyes is carcinogenic in nature
Azo dye is also having a slow disintegration
rate and excess use can cause soil infertility
These rules apply to all persons who
generate, collect, receive, store, transport, treat,
dispose, or handle bio medical waste in any form.
It shall be the duty of every occupier of an
institution generating bio-medical waste which
includes a hospital, nursing
home, clinic, dispensary, veterinary
institution, animal house, pathological
laboratory, blood bank by whatever name called
to take all steps to ensure that such waste is
handled without any adverse effect to human
health and the environment.
Tata Council of Community
Developing the CSR framework
TCCI – Tata council of community initiatives
Created in 1996
CII (Confederation of Indian Industry) had
approached Mr. J.R.D Tata and Mr. R.N Tata
for the same
Context was to see how Indian business
world respond to its responsibilities.
Tata's first decided to look into their own
group of companies first and design a
framework for them.
The significance of can be seen from the
involvement of the 2 senior directors
incharge of the project
Its not just setting up foundation or trust to
pursue philanthropic activities but to embed TCCI
The theoretical concept of CSR needs to be
integrated into day to day activity.
TCCI also helps in exploring strategies that can
lead to community development
The methodology adopted was not of forceful
pushing down of norms but building a consensus
among the companies and creating a passion for
It was never about finding solutions to the ills
but about creating sensitivity about them
and sharing ideas and expertise to find the
most feasible solution.
Over 28088 registered volunteers.
Some of the key changes brought are :-
Setting goals and indicators of human
development thus bridging gap between
everyday activity and overall growth.
Improve quality of life for all
All the efforts and stories are documented for
future reference and learning .
TCCI put together key perspectives and common
threads and brought out guidelines.
Companies enlisted their core competencies to find
imaginative and creative ways to meet society needs.
TCS led an initiative of adult literacy programme.
TCCI took this at group level to take it across 9 states
benefiting 1,11,265 people.
MBBS course of Maharashtra government has
included a course on learning disability for helping
children with learning disability.
TCCI encouraged all major companies to
uniformly adopt environmental management
system such as ISO 14000 series, the global
reporting initiatives, and SA 8000.
It had an impact on over 85% of companies
and 90% of employees.
This reinforces the belief that CSR is about
TCCI helped to reorient programmes to
encourage the creation of
microenterprises, self employment, and to
promote social entrepreneurship.
They did not help in providing eye
operations, etc but they helped in forming
SHG, increase income levels, provided
Early forms of CSR were financial grants for
These were to indicate the virtues of the
Few instances eg. BITS Pilani, the approach
Philanthropy ------> Stakeholder
Programs in alignment with their vision and
Main reasons for shifting were :
Confinement of investment.
Negligible Community participation
Low levels of accountability and transparency
issues in implementation phase
Companies aligning advertisement campaigns
with CSR programs
CSR to be initiated by employees of all levels.
CSR will be looked upon as a tool for
AOL Time Werner - $98.7 Bn
Enron - $11 Bn to shareholders, overestimated profits by
Deutsche Telekom - $28 Bn
One of the 1st to debate question of corporate governance.
The largest companies opted for dual strategic leadership
Cadbury code of 1992 was 1st code of governance.
1. The CEO and Chairman of companies should be separated.
2. Boards should have at least three non-executive
directors, two of whom should have no financial or personal
ties to executives.
3. Each board should have an audit committee composed of
Institutional investors controlled about 80 % of UK equity
market as of 31/12/2003
Revised Statements of Principles set by Institutional
Shareholders Committee (ISC) in 2002 & 2005
Association of British Insurers (ABI) issued its Disclosure
guidelines on Socially Responsible investment.
These update and replace the Socially Responsible
Investment (SRI) guidelines, launched by the ABI in
2001, which call on Boards of companies to confirm that they
have assessed and are managing environmental, social and
The changes to the guidelines highlight aspects of
responsibility reporting on which shareholders place
They also take into account new EU and UK
legislation, including the Business Review.
Encourages oil, gas, & mining companies to
increase transparency over payments by companies to
governments for extracting valuable resources.
Countries rich in natural resources such as oil, gas, and
mining have tended to under-perform economically.
Higher incidence of conflict, & poor governance.
It is hoped that by encouraging greater transparency in
countries rich in these resources, some of the potential
negative impacts can be mitigated.
Benefits for implementing countries include an improved
investment climate by providing a clear signal to investors
and international financial institutions that the government is
committed to greater transparency.
EITI also assists in strengthening accountability and good
governance, as well as promoting greater economic and
This, in turn, can contribute to the prevention of conflict
based around the oil, mining and gas sectors.
Companies earlier used to be skeptical about CSR.
Today there is a conscious effort to consider CSR in mainstream
Certain companies however practice CSR as a PR activity whilst
having no real contribution.
20 of the largest fund managers for UK pension industry & top 7
in the Charity sector are members of the UK Social Investment
Such Coalitions in UK have resulted in emphasizing of many
social issues such as climate change, HIV/AIDS, supply chain
Government must intervene the marketplace more.
Constant updates on CSR initiatives from all partners.
Inclusion of business ethics in curriculum of business schools
5,000 ‗red and yellow vans‘ on the road everyday.
The company acknowledged that its current business
model, based on fossil fuels, is far from sustainable.
The first phase of the company‘s approach to carbon
management has been developed in partnership with the
evidence base was used within a facilitated workshop
presentation to the Express UK Sustainability Board to identify
and prioritize work streams going forward.
DHL Express UK‘s carbon impacts fall predominantly into two
areas: energy from buildings and the fleet/transport network.
A comprehensive carbon management plan was then
developed for the UK across each of the areas of impact and a
detailed calculation of the company‘s carbon footprint
1. Premises: 28,463 CO2 tonnes;
2. Road transport: 104,883 CO2 tonnes;
3. Total emissions: 133,346 CO2 tonnes.
This approach also recognized the importance of gaining
employee ownership in implementing any carbon management
Previous attempts at similar initiatives had been restricted by
either budgeting or resources and also by not necessarily taking
a holistic approach to the issue within and across the business.
Project plans per work stream were produced by the teams who
will be implementing them and these were presented by those
teams at the Sustainability Board where they were signed off.
Across the Fleet/Transport work streams, the company sees the
opportunity for innovation, especially in alternative fuels and
This program is seen as part of the company‘s corporate code
and core values. It also is seen as working across sustainable
development themes, i.e. linking environmental, social and
community – accepting where the company is in the
community and what steps it takes to address the impacts it
understands its business creates.
Suzanne Worrall, DHL Express UK‘s Corporate Responsibility
Manager explained, ―Through efficiency measures and
robust, innovative management, cutting carbon can translate
into cutting costs and real business benefits. If we can get
this right it will fundamentally affect the business model and
how we undertake our business and serve our customers‖
Emphasis on stakeholder theory
Ethical and responsible leadership
Closer understanding on managing ethical risks
Compliance to government laws and adherence
to corporate governance
Ethics training receiving much attention at
business leadership level
Integrity in all activities and conduct of the
Companies promoting ethical business
Consumers identifying with these companies
Companies publicizing general strategy of
Business contributing to Society:
Carnegie (the steel tycoon)
Promotion of Social Responsibility among
business organizations started because of the
business scams centering around accounting
• World Com
• Bhopal Gas Tragedy
and many more
Sarbanes-Oxley Act passed in 2002
Financial reporting, independent
audits, accounting services
Child Labour Deterrence Act
Gap in sharing of Best practices among
industries and regions.
Challenge of Global Sustainability.
Urgent need to promote through leadership.
Business organizations cannot avoid issues
related to morality and good governance.
According to the Economist,
―The simple solution is that the business should
concentrate on the sweet spot where initiatives
are good for both profits and welfare.‖
―At Microsoft, we have a passion for
technology. One of the best ways we can
serve our communities is by working with our
partners in the public and private sectors to
find ways technology can help solve some of
today‘s most pressing societal challenges.
The possibilities are really exciting and our
ambitions are big.‖
Courtois, President, Microsoft International