CSR in India: Perspectives for Business by Article 13

ARTICLE 13 ORANGE PAPER

CSR in India: Perspectives for Business Article 13

ARTICLE 13 ORANGE PAPER

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Executive summary and recommendations: CSR in India â&#x20AC;&#x201C; perspectives for business May 2007 1 May 2007

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Introduction If the purpose of a company is to deliver profit to shareholders what role does Corporate Social Responsibility (CSR) play? Why has the topic risen up corporate agendas over the last 15 years? Why now? What does the term actually mean? CollageArticle 13 – a new joint venture consultancy considered these issues as part of this launch piece of research particularly focussing on India. There is little consensus on the definition of CSR. A useful pointer is provided by the UK Department for Trade and Industry who define CSR as a company’s response to the issues on the sustainable development agenda. Sustainable development can be further defined as comprising the social, environmental and economic agendas (sometimes called the triple bottom line). The reason for sustainable development has been classically stated in the Brundtland Report as “meeting the needs of the present without compromising the choices available for the needs of the future”. But why should this matter to business? What are the business drivers to take on the agenda? The World Business Council for Sustainable Development (WBCSD) defines CSR as "The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large”. Is this rhetoric or practice-based reality? In KPMG's International Survey of Corporate (Social) Responsibility Reporting 2005, which surveyed more than 1,600 companies worldwide and documented the top ten motivators driving corporations to engage in CSR for competitive reasons, the following emerged: • Economic considerations • Ethical considerations • Innovation and learning • Employee motivation • Risk management or risk reduction • Access to capital or increased shareholder value • Reputation or brand • Market position or share • Strengthened supplier relationships • Cost savings The report concluded that by creatively responding to these market forces, and others generated by the CSR movement, organisations can reap considerable benefits. Collage Article13 used this finding as the start of a practice-based line of enquiry into what is actually going on in one of the countries included in the survey, namely India. The questions we asked were: what is actually going on in CSR (Being reported) in leading companies; and what are the benefits of this CSR activity to the business and do those benefits match up with what is being looked for by potential employees (graduate and post graduate students). We assess the implications of the findings of this study and the recommendations arising for the future.

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Methodology There were three phases of the research: • Desk- and web-based research • Questionnaires with students (structured quantitative research) • Interviews with leading HR professionals in India (insight interviews) 1. Desk and web based research: • An initial search was conducted within the public domain to review the CSR reported practice of large Indian corporations, which are acknowledged to be at the forefront of the engine of economic growth in India. This was established through selecting leading growth sectors and reviewing the leading company in each sector. • To augment this, a detailed search was conducted in business journals, market research sites, business newspapers, and publications to study their CSR activities, CSR strategy and identify metrics used by them (if any). • This was followed by comparing these leading companies across sectors with the selected benchmark of the Tata group of companies (Indian leadership company) and with BP (in the International arena). The companies reviewed were: • Benchmarks: Tata and BP • Information Technology: Wipro, Infosys, • Two-wheelers: Hero Honda, Bajaj • FMCG: Dabur, Godrej • Rural Marketing: Hindustan Unilever, ITC • Telecom: Airtel, BSNL • Real Estate: DLF • Oil and Gas: ONGC, IOC 2. Questionnaires with students: • A structured questionnaire was prepared and distributed to four leading graduate and post graduate institutions in India. • The data from completed questionnaires was entered into a spreadsheet for analysis as to what leading potential employees were looking for from companies in their job and career selection and if CSR would influence their choice. 3. Insight interviews with HR practitioners from companies: • A select number (three) of interviews were carried out to gain insight into the HR (or employers) perspectives on what leading employees (current and future) were looking for from companies and how CSR influenced this. The complete research results including a breakdown of the student responses is available in Appendix 1 and 2 of this document.

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Commentary and recommendations The perspective of the HR professionals provides insight to the implications of this research and the status of CSR in corporate India. Their view of the challenge in future for CSR is: • “CSR is picking up now as an area where companies are showing interest. However, it is limited to the big players; if the small players are doing it…there is not enough publicity. Unless more visibility is given to these programmes, it would be difficult to make it popular amongst corporates.” • “Social Consciousness is not priority for most corporates. To most organisations, it is a cosmetic tool to ward off regulatory scrutiny. Organisations which believe in it however, will vouch that it has stood them in good stead.” • “Organisations are getting competitive in whatever they do. Moreover, companies are being closely monitored under provisions like corporate governance and RTI Act which bind organisations towards ethics and transparency. In such a scenario, future looks healthy and people in general can expect to derive benefits out of it.” It is the last quote above which perhaps sheds light on the next driver towards CSR for Indian companies and the link with regulation and scrutiny. This echoes the combination of factors which has driven a step change in the development of CSR in other countries in the world. What are the CSR issues in and for India? From the review of companies reporting, it is apparent that the following are issues that they are aware of: • A huge and growing population; • Mass urbanisation, and • A move away from a traditional agricultural based economy; • Massive poverty alongside increasing and booming wealth, with the spectre of HIV/AIDS alongside diseases of the world’s neediest people; • How to balance the needs and wants of a growing economy with the scale of the issues above? The review of the findings (which follows on page 7) shows programmes in the community, education, environment and health areas but there are within those programmes four emerging themes as to how the companies reviewed are responding with CSR to the issues in India. They are: 1. Employees The desk and web research highlighted some explicit commitments to employees. This was not, however, evidenced in all the companies reviewed. This could be an issue particularly with skilled employees and ensuring the knowledge and skills are retained in the companies. The student research shows CSR is a job critical issue for students. They are judging on more than community initiatives as environment goes up their agenda. This demonstrates signs of another driver towards CSR. The HR insight shows CSR can yield employee brand, employee motivation and corporate distinctiveness as well as governance, but raises the issue that it could be dismissed in the quest for economic growth.

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2. Community The desk and web research clearly illustrated the focus towards ‘community’. This seems to be a legacy of the philanthropic approach. What that term community means in practice differs from very local to the company initiatives to wider commitments to the masses. Work in education and in rural programmes tends to predominate. There is some work enabling women to develop their own programmes and have access to micro finance. What is not clear is how much the stakeholders in these programmes are involved in the decision making as to what their issues are and how they might be best addressed. This is reflected generally in the lack of explicit links between employees and the community commitments. Perhaps this is an area for a quick win? 3. Environment – a tipping point The environment is considered ‘covered’ through the certification to ISO14001, where it has been gained. Where it is well covered there is some mention of cost savings. Is this an opportunity that is being missed by other companies? The lack of a reported strategic approach to the environment perhaps demonstrates a serious risk for companies as other countries face up to the challenge of natural resource shortages and the effects of climate change. With the growth in the economy of India the companies operating within it will come under increasing scrutiny by the rest of the world. 4. Stakeholder perspective – is it missing Although stakeholders are mentioned in some reports there does not seem to be a strategic approach to involving the stakeholders, understanding the impacts on them. This could mean companies missing emerging signs of risks and losing out on valuable insights to business strategy (and as shown in other global companies the ‘granting of a licence to operate and grow’). Overall there appears to be a potential lack of a strategic approach to these programmes, linking mission, vision, business objectives to the corporate impacts and therefore the stakeholders and integrating their views and issues into corporate planning. At best this could yield governance and reputation and early risk identification at a minimum this could improve the effectiveness of the varied initiatives and potentially corporate reputation. Linking back to the KPMG checklist of drivers (and opportunities for companies using CSR), the findings of this research suggest CSR in India is focused on the ethical considerations area supported by brand considerations (philanthropy). It can be deduced that the other areas/drivers are either not being considered by the companies and as such present emerging risk and missed opportunity. • • •

• •

Economic considerations – the main driver of business in India, not evidenced in CSR responses Ethical considerations – the main driver of CSR in business in India Innovation and learning – focused towards community as opposed to CSR enabling innovation and new product and service development within an organisation Employee motivation – in one case, but the student perspective shows this is a missed opportunity Risk management or risk reduction – CSR provides early warnings and acts as a tool in identifying risk – this is a missed opportunity

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•

• • •

Access to capital or increased shareholder value – lack of CSR strategies and programmes have reduced shareholder value at times of societal shifts in expectations e.g. Shell, Monsanto Reputation or brand – this appears to be an important issue for Indian companies but it is not clear if they have realised how CSR programmes and strategies can help build their values and value as a brand Market position or share – a longer term missed opportunity Strengthened supplier relationships – missed opportunity especially up the supply chain to American and European markets and customer demands Cost savings – Missed opportunity to build business efficiency and effectiveness

Recommendations The findings and analysis suggest key recommendations: • • • • •

•

Review approach of the company against the KPMG survey of global responses From that, develop a strategic approach to CSR based on understanding of the impacts and the tipping points in resource shortage or price rises Recognition that the environment is a tipping point and natural resources such as water and fertile land are potential business threatening issues Realisation that the world is watching India and China and brand reputation and image can be made or destroyed in a single action Understand that CSR presents an opportunity to demonstrate corporate values, distinctiveness, and employee brand as well as deliver governance. This could propel companies into the coveted ‘world class’ status The opportunity for partnership in sectors, across sectors, across the corporate, voluntary divide

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The findings in summary Corporate reporting – desk and web based review In summary the review highlighted the following: Community

Environment

Education

Health

ITC HLL Airtel BSNL Infosys Wipro IOC ONGC Godrej Dabur Bajaj Hero Honda DLF Tata BP

High

Med

Low

The companies have been ranked high, medium or low based on their focus as reflected by the financials and organizational resources devoted to CSR causes, along with the number and size of initiatives.

Specifically reviewing how the other companies have picked up on these issues the following highlights emerge: 1. The need to address employee issues: The Tata Group has more than 245,000 employees. Tata were the pioneers in employee benefits that were later mandated through legislation in India and elsewhere in the world. The eight-hour working day, free medical aid, welfare departments, grievance cells, leave with pay, provident fund, accident compensation, training institutes, maternity benefits, bonus and gratuity were introduced by the group before any legal rules were framed on them. Tata has created cities and towns – Jamshedpur, Mithapur, Babrala and Mathigiri – around industrial facilities. Tata Steel maintains Jamshedpur's public utilities such as the local municipality and takes care of road maintenance, water and electricity supply, streetlights, healthcare and sanitation. Considering the good standard of the maintenance facilities, Tata Steel has floated Jusco as a separate entity, to share its knowledge and expertise, which is unparalleled in the country. Bajaj Auto provides interesting and explicit commitments to employees through its company’s policies: • The Company believes that equal opportunity in employment for all sections of the society is a component of its growth and competitiveness. • It recognises that diversity to reflect socially disadvantages sections of the society in the workplace has a positive impact on business. ©Collage Article13

• •

•

The Company is not biased against employing people from disadvantaged sections of the society, if the applicant possesses competitive skills and job credentials. Its selection of business partners is not based on any considerations other than normal business parameters. In case of equal business offers, the Company will select a business partner belonging to a socially disadvantaged section of society. The Company makes all efforts for upgrading the skills and continual training of all its employees to enhance their capabilities and competitive skills. No discrimination of any type is shown in this process. It plans to have a partnership program with educational institution/s to support and aid students from socially disadvantaged sections of the society.

For HLL, approximately 9% of the company’s resources for community involvement come in the form of employee time. Their time is ranged from their involvement in Ashadaan to the disaster affected Yashodadham village near Bhuj. HLL management trainees spend approximately four weeks on Project Shakti in rural areas with NGOs or Self Help Groups. At Infosys employees are encouraged to report workplace hazards and incidents to the concerned officials and contribute to implementing solutions. Infosys implemented health clubs and health programmes, such as health week, nutrition programmes and ergonomics training. It also implemented safety programs to improve awareness about precautions and measures to improve road and personal safety. 2. The need to be responsible for the community (local or disadvantaged): Tata Chemicals set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social objectives for the communities in and around Mithapur and Babrala, where its facilities are located. Some of the initiatives of TCSRD are: agricultural development, education, women’s programmes, animal husbandry, rural energy, training, watershed development, relief work and infrastructure. TCCI, in collaboration with the United Nations Development Program (India), created the Tata Index for Sustainable Human Development. This was aimed at directing, measuring and enhancing the community work that group enterprises undertake. According to Bharat Sanchar Nigam Limited (BSNL), the company is committed to provide quality Telecom Services at affordable price to the citizens of the remotest part of India, since it is of utmost importance for achievement of the country's social and economic goals. BSNL is the only telecommunication service provider offering rural telephony as part of its social responsibility. Bharat Sanchar Nigam Limited does not have any direct subsidy schemes/ programmes for public. However, BSNL, is the only service provider offering rural telephony as part of its social responsibility. BSNL plans to provide broadband to 20,000 villages that are already connected through optical fibre. BSNL with support from government plans to provide broadband to all gram panchayats, secondary and higher secondary schools and public health care centres by end of 2007. BSNL is offering special tarifs for rural subscribers by providing lower rental and higher free calls as compared to urban area subscribers. Bharti Airtel founded the Bharti Foundation in 2000, with the vision: “To help underprivileged children and young people of our country realise their potential.” Through the foundation, several initiatives were started such as the Bharti Computer Centers, which have provided computer learning to more than 130,000 children in five states; the Bharti Library Programme, aimed to encourage reading habits of children; and the Mid-day Meal Programme, in which Bharti Foundation has supported Akshaya Para in providing meals to 43,000 children per day in 292 government schools. For the coming years, the Foundation has plans to start a large number of primary schools in rural areas across the country. It will also provide teachers’ training facilities. ©Collage Article13

Bajaj Auto’s philanthropic activities among the rural poor are carried out by a Trust, the Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). Established in 1987 by Ramkrishna Bajaj in memory of his mother, Jankidevi Bajaj, this Trust acts as a catalyst to development at the grass root level in 32 villages around its plants in Pune and Aurangabad. The trust initiates sustainable, integrated development through long term projects in rural health, hygiene and sanitation, education and adult literacy, improving agricultural and livestock yield, watershed development and women’s empowerment. Through its poverty alleviation schemes, the Trust provides micro-credit and income generation opportunities for the poor. These projects have a positive impact on the quality of rural living standards Hero Honda are committed to community as "We must do something for the community from whose land we generate our wealth”. (Quote from Chairperson Brijmohan Lall Munjal) Godrej funds the NAZ foundation which has evolved and implemented a holistic approach to fight HIV, focusing on prevention as well as treatment. In 2004, Parmeshwar Godrej, wife of Chairman Adi Godrej, launched a three-year Heroes Project which seeks to develop coordinated campaigns to address the spread of HIV/AIDS and reduce stigma and discrimination by educating the public. To fight AIDS, Godrej & Boyce has opened a clinic at its Godrej Memorial Hospital in Mumbai. Dabur has a vision of being a company dedicated to the health and well being of every household, drawing inspiration from its founder Dr. S. K. Burman, who said, "What is that life worth which cannot bring comfort to others”. In 1993, Dabur India Ltd established Sustainable Development Society (SUNDESH), a registered voluntary organisation, integrating various aspects such as health, literacy, employment, and empowerment. Through this, the company addresses the most deprived and weaker sections of the society including women, children, illiterates, and the unemployed. Healthcare: The company organises camps, which include general OPDs, antenatal checkup, vaccination for children aged 0-5 years, family welfare, health awareness through meetings, eye screening and eye operation camps. HLL launched Project Shakti in 2001 to create income-generating capabilities for underprivileged rural women by providing a small-scale enterprise opportunity, and to improve rural living standards through health and hygiene awareness. The project has been extended to 15 states covering 80,000 villages. The company has launched ‘i-Shakti’ kiosks – an IT-based rural information service developed to provide information and services to meet rural needs in agriculture, education, vocational training, health, and hygiene. To improve business skills of the rural population, especially women, extensive training programmes are held. The total strength of Shakti Entrepreneurs has reached over 30,800. Quoting ITC Chairman, Mr. Y.C.Deveshwar, "Envisioning a larger societal purpose ('a commitment beyond the market') has always been a hallmark of ITC. The Company sees no conflict between the twin goals of shareholder value enhancement and societal value creation. The challenge lies in fashioning a corporate strategy that enables realisation of these goals in a mutually reinforcing and synergistic manner". The groups focus is on rural development. ITC's e-Choupal empowers 3.5 million farmers by enabling them to access customised crop-specific information in their native village, habitat and language. Vernacular websites relating to each agricultural crop that the company deals in provide ready and real time information to even marginal farmers on the prevailing Indian and international prices and price trends for their crop, expert knowledge on best farming practices, and micro level weather forecast. ©Collage Article13

Women Empowerment: ITC aims at micro-credit and skills training to generate alternate employment opportunities for women to facilitate better nutrition, healthcare and education for their children. DLF’s major CSR focus is on the welfare of masses but does not report much on how and where. Wipro believes in two fundaments that have guided its engagement: “One, Wipro is a socioeconomic citizen. Two, if you can do good, you must.” Its major thrust for CSR is education. Wipro Applying Thought in Schools: This initiative is aimed to rekindle the spirit of curiosity in children, in order to develop critical, creative and caring citizens. The project ranges from training programmes for teaches and principals to concerted efforts for transforming entire schools. It started in 2001 and it has reached over 4,500 teaches and principals from 241 schools in 4 states. Its Chairman Azim Premji has launched his own Foundation – Azim Premij Foundation – with a focus on universalisation of education. Infosys Foundation, the philanthropic arm of Infosys Technologies Ltd, came into existence on 4 December 1996. Its main objective was to fulfill the social responsibility of the company by supporting and encouraging the underprivileged sections of society. The Foundation has been working on initiatives such as: training destitute woman in tailoring and donation of sewing machines and material to them to improve their livelihood; counselling centers to rehabilitate marginalised devadasis in North Karnataka; relief work conducted after natural disasters; donation of aid equipment to the physically challenged in rural areas of Karnataka; and construction of orphanages in rural areas. 3. The emerging recognition of the role of the environment and the potential as a tipping point: Tata Steel has laid great emphasis, over the years, on creating a green environment in and around its plants and on utilising the waste generated in the process of manufacturing steel. The company generates roughly 700 kg of various wastes (excluding fly ash) in the process of producing one tonne of crude steel. Of this, 83.16% is utilised either through recycling and reuse in the company's own processes or is sold as raw material to other industries. The rest is sent for land filling. For Airtel, 5,000 sites are using a green-shelter system that provides cooling for four hours in the Base Transceiver Station. This system saves cost and reduces pollution. A question from the research team is around the use of ISO14001 systems to help take these initiatives further? Bajaj Auto’s has an Environmental management system, which is an integral part of the overall management system at Bajaj Auto’s Aurangabad plant, was awarded ISO 14001 certification in 1997 Hero Honda is certified for its Environmental Management Systems according to ISO 14001. The Green Rating conducted by the Centre for Science & Environment, New Delhi, for all automobile companies in India, ranked Hero Honda as No.1 for its environmental performance. 1999: Environment Management System of Dharuhera Plant was certified with ISO-14001 by DNV Holland and in 2000: Environment Management System of Gurgaon Plant was certified with ISO-14001 by DNV Holland. A different approach to the environment is demonstrated by Corporate Social Responsibility in Godrej which “covers many aspects and areas, the greenery and mangroves are just one of them,” according to the company. Godrej has been a key player in aiding education, environment and the health verticals besides looking after its own employees. The company ©Collage Article13

strongly believes that the green environment enhances productivity and quality which has been appreciated by all employees and visitors. The company has a mission of “Enriching quality of life everyday everywhere”. The Soonabai Pirojsha Godrej Foundation has been maintaining the western bank of the Thane Creek, the single largest mangrove belt in Mumbai. The Sohrabji Godrej Green Business Centre launched the Green Business Initiative in December 2005, which was aimed at facilitating the development of corporate greenhouse gas inventories and subsequent investments in greenhouse gas mitigation projects. Dabur works towards developing sustainable cultivated source for herbal ingredients, which would help in reducing the strain on natural habitat of these herbs. The company is also involved in reforestation in the Himalayan range. HLL is also committed to extending its efforts on water management to the larger community, and engages in community projects in water adjacent to manufacturing sites. The company has a management system conforming to ISO 14001. ITC focuses on the use of renewable energy such as biomass and solar energy. A number of units have installed solar thermal systems mainly for use in canteens and kitchens. It claims it endeavours to be a carbon positive corporation. Its efforts in the field of energy conservation, use of carbon neutral fuels and large scale tree plantations through social and farm forestry have resulted in sequestering 85.6% of the Carbon Dioxide (CO2) emitted by its operations. The Watershed Project, Government of Rajasthan and the ITC Rural Development Trust, have signed a memorandum of understanding (MoU) for the project in Kalyanpura village, over 250 km from the state capital, Jaipur. ITC's watershed development seeks to achieve two critical objectives: water conservation and soil enrichment. All ITC Units and the four hotel properties owned by ITC (Maurya Sheraton, Mughal Sheraton, Chola Sheraton and Grand Maratha Sheraton) have obtained ISO 14001 certification for their Environment Management Systems. Indian Oil Corporation has been an active founder-member of the United Nations Global Compact (UNGC), an international initiative that brings companies together with UN agencies, labour and civil society to support universal environmental and social principles. Indian Oil has included CSR in its vision and mission statement and has built its corporate strategies around it. Environmental initiatives include: development of cleaner fuels such as diesel with low sulphur content and biodegradable lube formulations; pollution control programme, in which all refineries are provided with facilities to control pollution from different sources; and ecological parks, which are scientifically designed green belts that have been developed at Gujarat Panipat refineries, to serve as a pollution sink and to enhance the aesthetic look of the refinery area. Indian Oil won the TERI Corporate Environmental Award 2002-03 in category III (companies with an annual turnover exceeding Rs.500 crore p.a.). This award has been presented to Indian Oil for installation of Flue Gas scrubbing (BELCO) system to treat flue gas from RFCC unit of Barauni Refinery to remove particulate matter and sulphur di-oxide. Seven refineries and the IndianOilResearch & Development Centre at Faridabad have achieved the ISO 14001:1996 accreditation for Environment Management System. In 1998-99, the Salaya-Mathura Pipeline and the Koyali-Ahmedabad Pipeline became the first oil pipelines in the world to be accredited with ISO-14001 for Environment Management System. IndianOil’s Mathura Refinery has been certified for "Occupational Health and Safety Management System (OHSMS)" by DNV – the first refinery worldwide to receive this certification and Mathura Refinery was the first Refinery in Asia, and the third in the world in the Petroleum Sector, to be certified ISO-14001 for its efficient Environmental Management System. ©Collage Article13

ONGC has all its operational facilities certified for Quality, Occupational Health& Safety and Environment Management (QHSE) based on ISO 9001, OHSAS 18001, ISRS and ISO 14001. Infosys programmes on environment are being evaluated through the Ozone initiative, in which Infosys Environmental Management System (EMS) is subject to third party surveillance audits. In 2005, it was found to conform to the EMS Standard ISO 14001:2004. 4. The stakeholder perspective – is it missing? BP provides an interesting global counterpoint, particularly in the area of stakeholders which is not necessarily explicit in the other reviews. The company engages itself in dialogue with a wide variety of groups to create strong and lasting relationships with them. Employees maintain a dialogue with key groups, such as national NGOs, in different ways and make recommendations for the company on the social and environmental impacts. ESIA (Environmental and Social Impact Assessments) studies are carried out to help BP and its stakeholders understand the potential impact of a proposed project on environment or society. Airtel: According to the company, “Corporate Social Responsibility is a way of life at Bharti.” Airtel has been looking after the needs and interest of its stakeholders, including employees, consumers, and communities, along with the environment. Its mission recognises stakeholders: “Airtel is strongly committed to being a responsible corporate citizen. Providing a platform to leverage the potential of the citizens of tomorrow and concern for the environment are our top priorities.” (Sunil Bharti Mittal – Chairman and Managing Director, quoted from the 2005-06 annual report) Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones developed at the grassroots. The company believes it has managed to bring an economically- and socially-backward region in Dharuhera, Haryana, into the national economic mainstream. HLL's CSR philosophy is embedded in its commitment to all stakeholders, including consumers and employees, the environment, and the society the company operates in. ONGC is playing an important role in strengthening India's corporate world with a tuned sense of moral responsibility towards the community of people where it operates and the country at large. In its vision/mission and the philosophy regarding CSR it claims that the company feels responsible not only for wealth creation but also for social and environmental good. It also aspires to abiding commitment to safety, health and environment to enrich quality of community life and to imbibe high standards of business ethics and organisational values. Its approach to CSR is summarised as “an approach to business that exemplifies transparency and ethical behaviour, respect for stakeholder groups and a commitment to add economic, social and environmental value”. Dr. Ashok Kumar Balyan, joined the Board of ONGC as Director (Human Resources) on August 23, 2003 and is currently responsible for formulation and implementation of policies in tune with the strategies of ONGC. He is actively leading the continuous change journey of ONGC called ‘Corporate Rejuvenation Campaign’.

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Studentsâ&#x20AC;&#x2122; perspectives Q7: In your view which is the most "responsible" company/companies in India? (Figures based on numbers of mentions rather than ranking figures.)

Number of mentions

50 45 40 35 30 25 20 15 10

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IT C

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U us ta n

in d

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5 0

Company

Top of mind issues

Question 8: What are the top of m ind issues that corporate India needs to take care of? Community Upliftment Human Rights Children/Women Health and Education Health Related (cancer, HIV) Environment Education 0

Num ber of responses

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The students’ responses demonstrate their view of what is required. Why should companies take notice? The results from what students are looking for from prospective employees provide the answer: Q5: Would a high CSR involvem ent of the com pany influence your decision to join the com pany?

Not applicable/no answ er 5%

No 40%

Yes 55%

Q1: What are the parameters on which you would choose a company for employment?

Parameters for choosing company

Company's location and benefits they provide Company's products or services Company's support of the community and environment Company's values Image of company (Brand name in t he market) Job Description Learning and Development opport unities Profitability Salary

Num ber of responses

HR Insight If students are claiming the views shown above, is this experience reflected in the HR practitioner’s experience? “It does to an extent. Organisations of late are laying focus on CSR having realised the importance of giving back to the society in some form or the other, what they have accrued from them. This also throws some light on the ethics which the organisation practices and hence it also in a way contributes to their brand building strategy. Candidates, before joining make a holistic assessment of the company that they are likely to join. In my opinion, it may be irrespective of levels.” ©Collage Article13

And does the approach to CSR deliver other benefits? “Companies which believe in it, view it as an integral component of their business model. The best examples of course are companies like the TATA Group, Infosys and Wipro.” Interestingly “It reflects on good corporate governance”. companies post Enron and WorldCom.

This is an increasing issue for

Their view of the challenge in future for CSR provides perspective: •

•

“CSR is picking up now as an area where companies are showing interest. However, it is limited to the big players; if the small players are doing it…there is not enough publicity. Unless more visibility is given to these programmes, it would be difficult to make it popular amongst corporates.” “Social Consciousness is not priority for most corporates. To most organisations, it is a cosmetic tool to ward off regulatory scrutiny. Organisations which believe in it however, will vouch that it has stood them in good stead.” “Organisations are getting competitive in whatever they do. Moreover, companies are being closely monitored under provisions like corporate governance and RTI Act which bind organisations towards ethics and transparency. In such a scenario, future looks healthy and people in general can expect to derive benefits out of it.”

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Appendix 1: CSR Practices in India The full research document on which the summary and recommendations were based, 10 April 2007.

Table of Contents Executive Summary Reason of choosing Tata and BP as benchmarks Methodology and Analyst Commentary Methodology Analyst Commentary Appendix Case Studies Details of the Survey

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17 21 29 29 29 30 30 68

Executive Summary What is CSR? There is no unanimity on the definition of what constitutes Corporate Social Responsibility (CSR). Most definitions describe CSR as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (CEC: Green Paper for Promoting a European Framework for Corporate Social Responsibility). The World Business Council for Sustainable Development defines CSR as “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large.” According to a global study by CSR network, a UK based CSR consultancy, released in 2004, the top 10 benefits of engaging in Corporate Social Responsibility are: • Increased profit • Access to capital • Reduced operating costs/increased operational efficiency • Enhanced brand image and reputation • Increased sales and customer loyalty • Increased productivity and quality • Increased ability to attract and retain employees • Potentially, reduced regulatory oversight • Reducing risk, and increased risk management • ‘Keeping up’ with competitors and where the market is Measurability and emerging metrics – Triple Bottom Line (TBL) An increasing number of companies are adopting a new way of operationaling the intangible concepts of ‘corporate social responsibility’ and ‘sustainability’. Triple Bottom Line or TBL focuses on data collection, analysis and decision making using economic, environmental and social performance information. In this concept, the company is judged on the basis of its triple bottom-line: its returns to shareholders, communities and the environment. Under this concept, the company will have to look at not just what it should do with its profits, but how it made its profits in the first place. This implies looking at impacts on all its stakeholders. This view, which is gaining ground, implies that CSR has to be seen as an essential part of business — not something divorced from business. Companies like Tata group and ITC are at the forefront of adopting the triple bottom-line approach in India. CSR and Indian Experience The CSR framework of companies in India has evolved over a period of time. For business conglomerates like Tata, Birla or the Godrej family, their specific approaches and strategies are mainly based and driven by the ethical beliefs of the founding fathers. However, of late, the companies have been influenced by several factors including business areas in which the companies operate, the socio-economic environment, and the emerging opportunities. The basic objective of CSR these days is to maximize the company’s overall impact on the society and stakeholders. An increasing number of companies are viewing CSR as a comprehensive set of policies, practices and programs that are integrated throughout the business operations, processes that are supported and rewarded by the top management. A growing number of corporates feel that CSR is not just another cost to the bottom line but is critical for protecting the reputation, defending attacks and building a competitive edge. If integrated in the overall business strategy, CSR could be a remedy for protection against sudden corporate downfall.

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Although there is a growing realization among corporates about the necessity of CSR, there is very slow progress seen. A 2002-study by an NGO ‘Partners in Change’ showed that corporate involvement in development tends to be ad hoc and CEO-driven. • Only 11% of the companies had a written policy though more than 85% of the companies agreed that they have a responsibility towards society. • Companies that work with communities do not necessarily distinguish between the privileged and the under privileged among them. • While a few companies and business groups have taken a lead in promoting CSR in India, the role of the industry associations must be recognized as significant. While the CII has various committees for social development activities and have even developed a voluntary social code for its members, chambers like FICCI, PHDCCI and the Bharat Chamber of Commerce have set up foundations for this purpose. • The overall approach still seems to be driven by philanthropy rather than integrating it with business as evident in the west. In the case studies, we tried to seek the vision that drives the CSR initiatives of the companies and how they channelise their organizational resources to carry out the same. Most companies do not have very clearly defined CSR guidelines. Education, rural welfare and environment are the most common CSR initiatives taken by companies. Without having a clearly demarcated budget and exclusive personnel support for CSR activities, most companies function on a rather adhoc basis. The most common award that was awarded to companies for their CSR initiatives were the Golden Peacock Award awarded by the Institute of Directors and TERI-CSR Special Award for initiatives in sustainable development. Most of the companies that we surveyed were Quality, Occupational Health & Safety and Environment Management based on SA 8000, ISO 9001, OHSAS 18001, ISRS and ISO 14001 compliant. HLL also uses a metrics called "Priority Action Radar" whereby it ranks its initiatives on different parameters such as consumers, communities, suppliers, partners, leadership, investors, government, employees, and employment.

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Evaluation of Categories on the 3 stakeholders and their CSR initiatives

No. of CSR Initiatives

Category Evaluation

Telecom

No. of Stakesholders Addressed Oil & Gas Real Estate Automotive IT

FMCG

Rural

Note: The IT and telecom sectors have equal number of initiatives and are addressing same number of stakeholders. The above diagram has the category wise number of CSR initiatives on the Y axis and the number of stakeholders (customers, employees and business partners) taken care of by the initiatives on the X axis- e.g. automotive or telecom, is the summation of number of activities undertaken and stakeholders addressed by the companies (studied in this report) representing the sector. For the real estate sector, we have included only DLF in our analysis, due to paucity of information regarding other players in this sector.

•

Companies in rural marketing space have undertaken most CSR initiatives, followed closely by FMCG, automotive and oil & gas space. The real estate sector has the minimum number of initiatives. Most companies are not addressing more than two shareholders (customers and employees) with majority of them only addressing the concerns of customers. Only ITC and HLL have programs aimed towards their business partners e.g. e-choupal and Project Shakti respectively. Companies in the service space e.g. telecom and IT lay greater importance on employee motivation and retention. On the other hand, companies in the old economy space, with the exception of Godrej, don’t have any programs aimed at their employees.

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Evaluation of CSR Themes of companies: As per the case studies, the 4 key themes for Indian CSR programs are related to Community, followed by education, environment and Health. Community

Environment

Education

Health

ITC HLL Airtel BSNL Infosys Wipro IOC ONGC Godrej Dabur Bajaj Hero Honda DLF Tata BP

High

•

• •

Med

Low

While Tatas have a high focus and level of involvement in community development, education and environment space, they have relatively fewer initiatives in health compared to the global benchmark BP, which has initiatives in all four themes, with special focus on community and health and education initiatives. After Tatas, the other companies that score high on CSR initiatives in India are ITC and Godrej. ITC lays great stress on community and environmental initiatives, but is low on the initiatives taken in education and health. Godrej focuses on environment and health initiatives, while it has low involvement in community development and education. Also, ITC is the only company in India which works on CSR programs related to climate change. BSNL and DLF have the least number of CSR initiatives, with both focusing on community initiatives. DLF is involved in the field of education but BSNL doesn’t have presence in any other category. Companies in the automobile and oil & gas space have undertaken very few initiatives in addressing the environmental concerns. Indian companies seem to be spending most of their time and effort on community initiatives followed by education and environment. Health sector has the least number of initiatives with four companies having no involvement in that category.

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Reason for choosing Tata and BP as benchmarks Tata Group The Tata group is known for aggressively pursuing several CSR initiatives in India. It has adopted social responsibility as one of its integral values and has made concerted efforts to link it with its overall strategy for achieving business excellence. The group has always laid great importance on CSR and is evident from its mission as stated by JRD Tata, "No success or achievement in material terms is worthwhile unless it serves the needs or interests of the country and its people." The group’s strong resolve regarding CSR shows as some of its companies such as Tata Steel, do not buy from or sell to companies that do not measure up to its social responsibility standards. Institutionalizing the Concept The Tata group has integrated its CSR initiatives through its trusts and group companies. To institutionalize the concept, it has drawn up the CSR charter that has been inserted into the group's 'Code of Conduct.' All the group companies are signatories to this code under which they have to actively assist in improving the quality of life in the communities in which they operate. Since inception, the Tata group has placed equal importance on maximizing financial returns as on fulfilling its social and environmental responsibilities - Triple Bottom Line (TBL). After decades of corporate philanthropy, the efforts of the group in recent years have been directed towards synchronization of the TBL. Through this, the group has aimed at harmonizing environmental factors by reducing the negative impact of its commercial activities and initiating drives, which encourage environment-friendly practices. In order to build social capital in the community, the group has encouraged its employees to share their skills with others and work with community-based organizations. Setting Benchmarks The group has been actively involved in facilitating the development of this concept in India by setting standards and benchmarks. The group companies have shown the way by establishing a Tata Council for Community Initiatives to provide benchmarks for the enterprises of the group, which help to quantify their efforts. Financial Outlay The group has played an active role in nation building and socio-economic development since the early 1900s. A survey conducted by the website www.indianngos.com revealed that Tatas spent Rs. 1.5 billion on community development and social services during the fiscal 2001-02 – the highest by any corporate house in India. Despite adverse economic conditions e.g. in the late 1990s, the financial commitment of the group towards social activities kept on increasing, from Rs 670 million in 1997-98 to Rs 1.36 billion in 1999-2000. Recognition The dedicated CSR efforts by various Tata group companies have been globally recognized. The different group companies have received several awards for their fulfillment of social responsibility. The Tata Group case study shows how it is integrating CSR with its business processes in the organization's journey towards business excellence, translated into vision into action. BP As one of the leading energy providers in the world, BP believes in being pro-active to minimize the environmental impact of their quest for oil and gas. Predominantly guided by environmental and social concerns, BP’s CSR initiatives have evolved over time – from taking on social responsibility for entire local communities in Iran to investing millions of dollars in renewable energy. BP’s endeavors have always been more than mere philanthropy.

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Initiatives BP gives prime importance to the safety of its employees and contractors along with the integrity and security of the plants and equipment. A new organizational structure has been designed by the company to deliver better safety performance. BP has put Health, Safety and Environmental (HSE) management systems and processes in place to ensure that there are no accidents, no harm to people and no damage to the environment. BP takes active measures to develop community relations, entrepreneurship and educational facilities. It supports the Universal Declaration of Human Rights (UDHR) and follows the UDHR’s statement that “every organ of society” shall strive to promote respect for the rights and freedom outlined. BP has framed its code of conduct to protect and promote the human rights of its employees. Financial Outlay In 2005, BP community investment touched $95.5 million with nearly $50 million spent on education. Since 2002, the budget for education investment has doubled and BP continues to invest around 50% of its annual commitment on education. In 2004, BP made a commitment to spend around $500 million towards community investment in each five-year cycle.

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Benchmarking: In order to compare the CSR performance of the companies with the leaders (Tatas and BP) in CSR, parameters such as the number of initiatives, spectrum of stakeholders addressed and the financial outlay on CSR was studied.

Company TATA's BP

Number of Initiatives Community Environment Education 8 8

3 1

3 2

Health 1 3

Stakeholders it addresses through CSR Customers Employees Business Partners 14 12

1 1

Outlay (in Rs) 380 cr (05-06) $2914 mn (2005)

Rural Marketing 4 4

ITC HLL

4 1

1 2

6 8

46.91 crore (03-04) NA

Telecom Airtel BSNL

3 3

6 2

Infosys Wipro

3 1

1 1

1 2

5 3

1 1

200 cr (2006-08) NA

1 1

13.25 cr (05-06) 3 cr (02)

Oil & Gas IOC ONGC

2 5

1 2

1 1

2 1

6 9

25.87 cr (03-04) 108 cr (06-07) (0.75% of Net Profit)

FMCG Godrej Dabur

1 2

5 1

1 2

3 1

9 6

70 cr (every year) NA

Automobiles Bajaj Hero Honda

2 3

DLF

1 1

1 3

2 2

6 9

10 cr (every year) NA

Real Estate 1

Tata Group Tata Group investment on CSR in 2005-06 was estimated to be Rs. 380 crore, spread across education, health, environment, rural development, sports, arts and employee relations. Tata Group contributes to environmental initiatives by the direct involvement of Tata companies to preserve the environment and formation of Tata Trusts, which support non-governmental organizations. Community initiatives include formation of: • educational institutions • sports facilities • art and culture centers Tata’s other initiatives encompass setting up of rural development societies and organizations like Rallilove ACTS and Voltas for Women. It has created towns and cities around industrial facilities for employee benefits. Tata group’s work has been lauded over the years and has received numerous awards including the ‘Award for Corporate Social Responsibility in Public Health – 2007 by USIBC’, ‘Golden Peacock Global Award for Corporate Social Responsibility (Asia)– 2007’, ‘Civil Society Award 2006 by UNAIDS.’ The Tata Council for Community Initiatives in collaboration with the United Nations Development Program, created the Tata Index for Sustainable Human Development aimed at directing, measuring and enhancing the community work that group enterprises undertake. It is a set of guidelines for Tata companies looking to fulfill their social responsibilities. British Petroleum The firm’s CSR theme is centered on environment and society with its activities focused on responsible operations, climate change and development with systems and processes put in place to ©Collage Article13

ensure that there are no accidents or damage to the environment. BP contributes to enterprise development, education and community relations by initiatives like ‘Black Economic Empowerment’ (BEE) strategy, Environmental Educators' Initiative and centers for primary, adult and cross-cultural education. BP has won several awards for its endeavors in the fields of energy and employee benefits e.g. Catalyst Award for Advancing Women in the Workplace, Climate Action Champion Award, Energy Company of the Year and “Gold Award” winner in the Renewable Energy category. All major sites of BP achieved ISO 140001 international standard on environmental management, by independent auditors. Airtel With primary CSR focus on education and environment, Bharti Airtel has committed Rs 200 crore to support CSR initiatives over the 2006-08 period. Bharti Airtel founded the Bharti Foundation to provide facilities like computer education, library, mid-day meals etc. to help underprivileged children. Airtel launched the CII-Bharti Woman Exemplar Award in 2005 to promote women’s empowerment at the grassroots. The company has won several awards including India’s Most Customer Responsive Telecom Company Award and the Golden Peacock Award for Corporate Social Responsibility. Bharat Sanchar Nigam Limited BSNL focuses its CSR activities primarily in the field of employee’s welfare activities, assistance during natural calamities and offering rural broadband plans. BSNL implements welfare programs and awards such as Bharat Sanchar Sarathy and Sanchar Seva Padak. It also offers its employees corporate group Life Insurance Policy. BSNL, with government support, plans to provide broadband to all gram panchayats, secondary and higher secondary schools and public health care centers by the end of 2007. BSNL is the only service provider offering rural telephony as part of its social responsibility. It received the ‘Golden Peacock National Award 2005’ for its contribution to the field of CSR, in connecting India’s remote areas and adhering to best labor practices. The company has an ISO 9000 certified Telecom Training Institute. Bajaj Bajaj’s CSR policy focuses on women empowerment, income generation, health programs, agricultural extension, animal husbandry, watershed development, drinking water schemes, sanitation and education. The company set up the Jankidevi Bajaj Gram Vikas Sanstha (JBGVS) to provide employment opportunities at grass-root level, Samaj Seva Kendra to undertake social activities in the semi-urban areas and Kamalnayan Bajaj Hospital in Aurangabad. Bajaj was awarded the Meritorious Performance in Industrial Safety Award, consequently for three years (1998-2001) by the National Safety Council. The Environmental management system at Bajaj Auto’s Aurangabad plant, was awarded ISO 14001 certification in 1997. Hero Honda Hero Honda’s CSR focus is in the fields of education, rural healthcare, vocational training, adult literacy and social support to girls of backward classes. Hero Honda has set up an Integrated Rural Development Centre on the outskirts of Delhi. The company’s other initiatives include construction of educational institutes, rural hospitals, sports complex and vocational training centres. In 2006, Hero Honda was ranked No. 1 in the automobile industry by TNS Corporate Social Responsibility Award. Godrej Godrej’s major CSR initiatives include education, environment and health donations and it spends more than Rs 70 crore annually. It has set up establishments like Godrej Technical Institute at Bordi, Pirojsha Godrej Research Laboratory, and the Centre for Excellence at Pirojshanagar under its education initiatives. The Soonabai Pirojsha Godrej Foundation has been maintaining the western bank of the Thane Creek, the single largest mangrove belt in Mumbai. Godrej supports the Foundation for Medical Research, Mumbai for the cure of leprosy and funds the NAZ foundation which works for HIV. Jamshed Godrej, Chairman and MD, Godrej and Boyce Manufacturing Company Limited looks after all the CSR. The Awareness program for Godrej and Boyce, Vikroli, Mumbai was given the ISO 14001 certification. Dabur Dabur’s CSR policy is focused on healthcare, education, skill development and income generation training, empowerment and environment issues. Dabur established the Sustainable Development ©Collage Article13

Society (SUNDESH), a voluntary organization, integrating various aspects such as health, literacy, employment, and empowerment. Dabur was among the ‘Top 10 Great Places To Work’ in 2004. Indian Oil Corporation Most of the Indian Oil Corporation’s CSR initiatives focus on provision of drinking water and sanitation, health and family welfare, education, and empowerment of women and other marginalised groups in rural and backward areas. IOC invested Rs. 25.87 crore in CSR in 2003-04. It has set up the IndianOil Foundation to preserve and promote national heritage. It is working with the Bill and Melinda Gates Foundation to spread awareness about HIV/AIDS. IndianOil’s Mathura Refinery won the 2006 National Energy Conservation Award. In February 2007, the Forum of Women in Public Sector (WIPS) conferred the Best Enterprise Award on IndianOil for the Corporation's pioneering efforts towards Women development and related issues. Oil and Natural Gas Corporation Limited ONGC promotes education, healthcare and entrepreneurship in the community and supports water management and disaster relief in the country. From 2003, ONGC decided to allocate 0.75% of its net profits towards Social and Economic Development programs. Under its project PURA, it undertakes initiatives for system for management of schools, healthcare units, vocational training centers and regional industrial units. An Institute of Petroleum Safety, Health and Environment management (IPSHEM) was set up in 1989. ONGC was awarded the Golden Jubilee Award for Corporate Social Responsibility in merging Economies in 2006. ONGC has all its operational facilities certified for Quality, Occupational Health& Safety and Environment Management (QHSE) based on ISO 9001, OHSAS 18001, ISRS and ISO 14001. DLF DLF’s CSR policy focuses on welfare of masses. The company organized fire safety drill and women self defense programs for welfare of the masses. The company along with DLF City residents, Gurgaon, organized an exhibition to create awareness among the residents and highlight various measures that need to be undertaken to ensure utmost safety. HLL HLL CSR initiatives primarily encompass areas like health and hygiene, education, women empowerment, rehabilitation of special or underprivileged children, care for the destitute, HIV-positive, and rural development. The company’s philanthropic donations include donation of Rs 80 million for tsunami-hit areas in 2005 and Rs 10 million for Mumbai flood relief in 2005. HLL launched project Shakti in 2001 to encourage rural entrepreneurship and set up ‘i-shakti’ kiosks to provide information and services to meet rural needs. Other initiatives include inception of rural education programs, education centers for the handicapped, health and hygiene programs in villages and women empowerment programs. Approximately 9% of the company’s resources for community involvement come in the form of employee time. HLL has won awards including Bombay Chamber of Commerce and Industry Civic Award for Community Development 2005, Exemplary Safety Performance from National Safety Council and the Government of Tamil Nadu for Tatapuram and am Tindiindivanam factories in 2005 and 2003 TERI-CSR Special Award for initiatives in sustainable development. ITC ITC is involved in CSR initiatives like environmental performance, primary education, agriculture, women empowerment. But the group’s focus is on rural development initiatives which include echaupal – aiming to provide agriculture-related information through IT, wasteland management and livestock development. ITC provides infrastructure facilities to select government schools under its "Project Classmate”. Its environment initiatives focus on renewable energy, watershed project and energy conservation. In 2003-04, an estimated Rs. 46.91 crore was spent on its CSR initiatives. The company has received several awards such as the Golden Peacock Award for 'Corporate Social Responsibility (Asia)' in 2007, award for ‘CSR in Emerging Economies 2005’, and the inaugural 'World Business Award', instituted by the UNDP. Wipro Wipro’s CSR focus is on education and it invested Rs. 3 crore on education programs in 2002. Wipro’s initiative- ‘Applying thought in schools’ is aimed at wholesome development of school children. ©Collage Article13

‘Wipro Cares’ is another endeavor aimed to rehabilitate calamity-affected people and provide education to underprivileged children. Wipro’s Chairman Azim Premji has launched his own Foundation – Azim Premij Foundation – with a focus on universalization of education. In 2003, Wipro received a certificate of honor from the BusinessWorld FICCI-SEDF Corporate Social Responsibility Award for its contributions in the field of CSR. Infosys The key areas of Infosys Foundation’s CSR drive are healthcare, social rehabilitation and rural upliftment; learning and education; art and culture. In 2006, Rs 13.25 crore was spent on construction of specialty hospitals and donation of ambulances, equipment and medicines. Other initiatives include construction of orphanages, vocational training centers for women, libraries for rural schools and donation of aid equipment to the physically challenged. Infosys also has programs for paper/water conservation and waste management. Infosys was declared the 'Best Company to Work for In India 2005' by the BT-Mercer-TNS survey and was awarded the Economic Times Corporate Citizenship Award in 2001.

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Talent Acquisition and CSR Survey among students A survey was conducted to seek the opinion of students on CSR to analyze if CSR could be a differentiating factor for any student to apply to a company or accept a job opportunity.

Parameters for Choosing Companies 64.9%

61.9%

60.8%

57.7%

26.8%

25.8% 20.6% 12.4%

Learning

Values

Salary

Job Location Description and benefits

Image

CSR

16.5%

Company'sProfitability Products or Services

Salary appeared to the most important criteria’s for choosing the future employer, with almost 65% of the respondents choosing it. It was followed by the learning and development opportunities that the company, just ahead of the Job Description. The other important factor considered by most of the students was the company’s image in the market. Surprisingly only about 26% of the respondents felt that company’s support of the community and environment causes, would be important criteria for selecting the company. Asked whether they would prefer joining a high-ranked CSR company, more than 68% of the respondents felt such a company would be more humane to its employees.

Benefits of Doing CSR for a Company 63.9%

41.2%

39.2%

37.1% 30.9%

8.2%

Doing Good

8.2%

Reduced Regulatory Oversight

Improved Fin Performance

Inc. ability to Attract and Retain Emp

12.4%

Inc. sales and Cust. Loyalty

Aiming to be a World Player

Inc. Accountability

Management of Risk

Corporate Reputation

Satisfying Stakeholders

Satisfying growing Investor Pres.

13.4%

11.3%

Reduced Op Costs

21.6%

19.6%

According to 64% students, the primary reason for companies to indulging in CSR activities is because it is going to result in a better corporate reputation. Students also felt that increasing accountability, increased ability to attract and retain talent and increased sales and customer loyalty were the other reasons for companies to engage in CSR. On the other hand, 40% of the students also felt that companies invest in CSR activities because of the larger good of the society. ©Collage Article13 27

Responsible Companies in India 49.5% 40.2% 32.0% 24.7% 16.5% 11.3%

10.3%

6.2%

Airtel

11.3% 8.2% 4.1%

Wipro Infosys

Hero Honda

Bajaj

Dabur Godrej

HLL

ITC

Tata's

BSNL

ITC and HLL are perceived to be the most responsible companies among the group. Infosys and Wipro also figured high in the responsibility ranking. Though Godrej, Hero Honda and Airtel have several CSR initiatives, there is very low awareness among the students about their activities. ITC’s e-choupal and HLL’s Project Shakti programs had the highest top of the mind recollection, with a sizeable percentage of respondents being able to recall the name of the program.

Top Issues for India Inc. to Consider 67.0% 57.7%

56.7%

25.8%

Education

Environment

Health

Community

Majority of the students feel that Indian companies should invest in community (67%), education (57.7%) and environment (56.7%). Survey among HR Consultants Although there was no clear consensus among the HR consultants as to whether CSR acted as a attraction policy for employees, all agreed that with CSR was going to play a more important role over time. According to them, the overriding motive for companies to invest in CSR is to satisfy their stakeholders. ©Collage Article13

Methodology and Analyst Commentary Methodology: • The objective of the study was to find out the CSR practices followed by big players of the Indian industry. • We made case studies to detail their CSR activities and initiatives and benchmarked them against the leaders in CSR the Tata’s (within India) and BP internationally. • An initial search was conducted within the public domain to obtain information about the CSR best practices through case studies of large corporations. • A detailed search was conducted in business journals, market research sites, business newspapers, and publications to study their CSR activities, CSR strategy and identify metrics used by them (if any). • The case study tries to capture the vision of company regarding CSR, its various processes, the strategy, financial outlay for CSR programs, the organizational support the programs receive along with the award and metrices. • This was followed by comparing these leading companies across sectors with the benchmark of the Tata group of companies and with BP (in the International arena). Analyst Commentary: • The information for the case studies has been collated from the company websites, the annual reports, and proprietary databases like Nexis, Factiva and HighBeam. • The financials outlay, organizational support and metrics & evaluations, regarding CSR initiatives of various companies were not available. Hence, comparison of companies on the basis of financial outlay has not been done. • The documentation of CSR programs of various companies was very sketchy. • In the real estate sector, only one company was analyzed as no other company had any sizeable initiatives. • The information presented in this report is based on our search and may not be exhaustive. The companies analyzed across various domains are: • Tata and BP • Information Technology: Wipro, Infosys, • Two-wheelers: Hero Honda, Bajaj • FMCG: Dabur, Godrej • Rural Marketing: Hindustan Unilever, ITC • Telecom: Airtel, BSNL • Real Estate: DLF • Oil and Gas: ONGC, IOC Key Players and the CSR Champion • In the Indian context, the Tata Group is considered to be the champion of CSR programs and its strategic execution. Internationally, BP is known to champion various CSR causes. • Other Indian companies such as ITC, HLL, Godrej, Airtel, Hero Honda, Wipro, Infosys, Bajaj Dabur, DLF, ONGC and IOC are considered the key players which have an organized CSR program and strategy. Key CSR Themes in India • Community upliftment • Education • Environment • Health CSR Measurement Metrics/Benchmarks The key responsibilities or dimensions of CSR are towards the three primary stakeholders: • Customers • Employees • Business partners ©Collage Article13

Appendix to Research: Case Studies Tata Group Principles CSR Overview: Tata Group, one of India's oldest, largest and most respected business conglomerates, is a leader in the CSR scene. The Tata Group has been recognized by its endeavor to institutionalize CSR in its 96 companies and integrate CSR with its business processes. With a strong commitment from its top management, it has developed tools such as the Tata Index for Sustainable Human Development, a model for measuring the social work that the group enterprises undertake. With investments as high as Rs 380 crore, the Tata Group is a benchmark for Indian companies. Vision/Mission and the Philosophy Regarding CSR:

Purpose “Our purpose is to improve the quality of life of the communities we serve. We do this through leadership in sectors of national economic significance, to which the Group brings a unique set of capabilities.”

Values The five Tata values are: • Integrity • Understanding • Excellence • Unity • Responsibility

Commitment Tata’s Commitment: • Community initiatives • Environment • Employee relations • Corporate governance

Major CSR Themes: Tata Group’s CSR investments include all major themes, such as education, health, environment, rural development, sports, arts and employee relations.

Process CSR Strategy: Community Initiatives Each Tata company has its own priorities in social development. The main companies in the group, such as Tata Steel, Tata Tea and Tata Chemicals, have in-house organizations dedicated to Community Initiatives. There are several projects, in different areas such as education, health, women-children welfare, rural development, income generation, sports, arts and others. Environment The group's contribution falls into two categories: • Efforts of Tata companies to preserve and enrich the environment • Philanthropic endeavor of the Tata Trusts, which support non-governmental organizations. These two categories accommodate and nurture a variety of initiatives in a range that extends from watershed programs and land regeneration to forestry projects and protection of endangered species. The Tata approach to environmental management operates makes it mandatory for Group companies to: • Have a vision and mission statement that explicitly states its policy on environmental management. • Define a corporate environment policy and communicate it to all employees • Set up environmental management systems and programs at the organizational level and annually budget for environmental improvement. • Train its workforce on environmental issues and assign management representatives and facilitators to the task of monitoring environmental systems • Regularly scrutinize resource consumption and the quality of air, water and land. ©Collage Article13

• • • • • This is chain.

Set quantitative objectives and targets for continuous improvement (preferably beyond legal compliance) Review environmental performance at different levels in the management hierarchy Establish a convention for conducting impact-assessment surveys and periodic audits Publish annual environmental performance in annual reports Encourage applications and attainment of eco-labels and accreditations such as ISO 14000/01 to be followed by lifecycle assessments and eco-labeling for product stewardship throughout the supply

Employee relations The Tata Group has more than 245,000 employees. Tatas were the pioneers in employee benefits that were later mandated through legislation in India and elsewhere in the world. The eight-hour working day, free medical aid, welfare departments, grievance cells, leave with pay, provident fund, accident compensation, training institutes, maternity benefits, bonus and gratuity were introduced by the group before any legal rules were framed on them. CSR Programs: Community initiatives “Temples of Knowledge” Under the Group’s program to develop centers of learning and research, knowledge and intellectual capital, Tata funds five Indian ‘Temples of Knowledge’: • The Indian Institute of Science • The Tata Institute of Fundamental Research • The Tata Institute of Social Sciences • The Tata Memorial Centre • The JRD Tata Ecotechnology Centre Sports The Tata Group has been supporting sports by creating academies in different disciplines and by backing talented sportspeople. Some initiatives of the Group are: • The Tata Football Academy, set up in Jamshedpur in 1987, selects boys (14 years and below) and trains them for a four-year period in world-class facilities, taking care of all their needs. • The Tata Archery Academy, established in Jamshedpur in 1996, has produced a long list of archers who have won national and international honors. • The Tata Adventure Foundation, headed by Bachendri Pal, the first Indian woman to climb Mount Everest, has rock climbing, river rafting and parasailing on its alternate sports agenda. Arts Tata’s initiative towards Arts is best reflected by Tata Steel. It first sponsored prizes and scholarships for art in 1943, at the annual exhibition at the JJ School of Art, Bombay. The company's 'Art In Industry' series has since then featured renounced Indian and international artists. The Jamshedpur School of Arts has groomed local talent. Besides promoting contemporary Indian art, the Tatas had the vision of preserving the country's performing arts. Indian folk and classical dance forms, music and theatre, traditionally handed down through the gurukul system, received a fillip when J J Bhabha, a Tata stalwart along with others established the pushed and persevered for long years to establish the National Centre for the Performing Arts (NCPA) in 1966. The Tata Group has also supported the cause of folk, tribal and rural crafts. The Tribal Culture Centre (TCC), founded by Tata Steel in 1990 at a cost of Rs 35 lakh, is a showcase for the artistic talents of the tribal communities of Jharkhand. Tata Chemicals Society for Rural Development Tata Chemicals set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social objectives for the communities in and around Mithapur and Babrala, where its facilities are located. Some of the initiatives of TCSRD are: Agricultural development Education Women's programs Animal husbandry Rural energy Training Watershed development Relief work ©Collage Article13

Infrastructure

Tata Steel Rural Development Society Established in 1979, the Tata Steel Rural Development Society (TSRDS) is involved in social development programs aimed at helping the rural communities living around Tata Steel's units. TSRDS covered 32 villages around Jamshedpur in its first year of operation. Today the Society has seven units, six of them in Tata Steel's operational areas, and covers 600 villages in the states of Jharkhand and Orissa. TSRDS is most actively involved in the spheres of livelihood generation, health and hygiene, and people empowerment. Recently, TSRDS has expanded its agenda and identified the advancement of education, sports and self-reliance as tools to ensure a better quality of life for the people it works with. Rallilove ACTS Rallilove ACTS (Assisting Communities Through Service), an organization set up by Rallis, seeks to improve the quality of life of the poor, especially women and children, through sustainable community development programs. Through ACTS, Rallis has been involved in the following community development initiatives: Contribution to the Akanksha Foundation, Mumbai Girl Child Project of Rallis Committed Community Development Trust (CCDT), Mumbai Educational support for 285 underprivileged students in Lote, Maharashtra Tree plantations in and around its factories and at RRC, Bangalore Dental and eye check-up camps at various factories Health awareness programs for Adivasis and other communities in Turbhe, Maharashtra Rallis CCDT Ankur Girl Child Project aims to create opportunities for a healthy and safe environment for girls living on the streets near Kamapthipura, the largest red-light area in Mumbai. Voltas for Women Voltas for Women (VOW) was founded in 1965 and registered in 1975. The organization, whose membership is restricted to female employees of Voltas and the wives of male employees, helps the needy with assistance in health and education, and offers career and vocational guidance. VOW has supported a number of deserving organizations. Its contributions include: Setting up a ward for female leprosy patients at the Vimala Dermatological Centre in Mumbai. Establishing fully-equipped speech and physiotherapy units at SPJ Sadhana School for the handicapped, Sophia College, Mumbai. Setting up a medical care unit at Asha Sadan, a home for destitute women and children run by the Maharashtra State Council of Women. Providing audio-visual equipment to assist the mentally challenged at the Dilkush School at Juhu in suburban Mumbai. Environment Waste Management Tata Steel has laid great emphasis, over the years, on creating a green environment in and around its plants and on utilizing the waste generated in the process of manufacturing steel. The company generates roughly 700 kg of various wastes (excluding fly ash) in the process of producing one ton of crude steel. Of this, 83.16% is utilized either through recycling and reuse in the company's own processes or is sold as raw material to other industries. The rest is sent for safe land filling. A number of companies today look to Tata Steel for guidelines on efficient waste management, and the company is confident that its 'war on waste' will have far-reaching effects. Tata’s “Mini Jungle” Tata Motors created a “mini-jungle” in the surroundings areas of the Telco complex in Pune. The last previous biodiversity survey recorded the existence of more than 150,000 trees including 78 exotic species and 110 indigenous species, in the 800 acres complex. Employee Relations Learning The Tata Group’s programs include Tata Management Training Centre (TMTC), which provides training to high performers within the Group and the Tata Administrative Service (TAS), which recruits fresh graduates and ©Collage Article13

postgraduates from leading business schools to put them on the business leadership path. The Group encourages cross-functional exposure and cross-company mobility as an aspect of leadership development. The Tata Group has also created high-value leadership development programs in partnership with some of the best universities in the world. Tata townships Tata has created cities and towns – Jamshedpur, Mithapur, Babrala and Mathigiri – around industrial facilities. Tata Steel maintains Jamshedpur's public utilities such as the local municipality and takes care of road maintenance, water and electricity supply, streetlights, healthcare and sanitation. Considering the good standard of the maintenance facilities, Tata Steel has floated Jusco as a separate entity, to share its knowledge and expertise, which is unparalleled in the country. Financial Outlay: Projects Social Welfare Environmental Others Total

2005 - 06 (Rs crore) 212 141 27 380

Tata Group investment on CSR in 2005-06 corresponded to 4% of Profit After Tax (PAT). Organizational Support: Tata Council for Community Initiatives The Tata Council for Community Initiatives (TCCI) is a centrally administered agency that helps Tata companies through specific processes. TCCI's charter embraces social development, environmental management, biodiversity restoration and employee volunteering. The organization is headed by Kishor Chaukar, a member of the Tata Group Corporate Centre, and 43 chief executive officers of Tata companies are its other members. It coordinates the varied and widespread community development activities of Tata companies. Personnel Support: Anant G. Nadkarni, is the Vice President – Group, Corporate Social Responsibility. Outcomes

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Awards: Some of the Awards won by Tata companies: • In March 2007, Tata Steel was conferred the Award for Corporate Social Responsibility in Public Health by the US–India Business Council (USIBC), Population Services International (PSI) and the Center for Strategic and International Studies (CSIS). Tata Steel was selected for its contribution in the fight against HIV/AIDS. • In February 2007, Tata Consultancy Services won the Golden Peacock Global Award for Corporate Social Responsibility (Asia) – 2007 in the 'Large Business' category. • In February 2007, Tata Motors was conferred with the Golden Peacock Global Award for Corporate Social Responsibility by the Institute of Directors. This award was based on assessment of the company’s integration of CSR concerns with corporate functioning, responsiveness to the needs of different stakeholders, and development of innovative partnership models to fulfill social responsibilities • The Tata Group was awarded the Civil Society Award 2006 by UNAIDS for its role in fighting HIV in India. Several Tata Group companies provide support for HIV prevention, treatment and care services across the country. • The governor of Tamil Nadu, Surjit Singh Barnala, presented The Mother Teresa Award for Corporate Citizen 2005 to Tata Steel. • Tata Steel was adjudged one of the top energy-efficient units in India and was awarded a shield and a certificate for being the 'Excellent Energy Efficient Unit - 2003' by the CII-Sohrabji Godrej Green Business Centre, Hyderabad. • Software and service consultancy firm Tata Consultancy Services received the ‘2003 Asian Corporate Social Responsibility Award’ for support and improvement in education category. The company had designed a computer-based functional literacy model, a multimedia-based teaching method, and has set up an adult literacy program to help the government eradicate illiteracy. • Tata Steel received the GBC HIV/AIDS award — 2003 for its commendable awareness work on HIV/AIDS in the community. • Tata Engineering has bagged the Corporate Social Responsibility Award for 2001-2002 instituted by the Tata Energy Research Institute (TERI). Tata Engineering won the award for creating health and rural upliftment opportunities in and around its Pune plant and for its leprosy project in Jamshedpur. • In April 2001, Tata Engineering’s Pune plant won the Dr. R. J. Rathi Award 2001 for Environmental Pollution Control in Industries in Maharashtra. Metrics and its Evaluation: • Environmental Management, Occupational Health and Safety Assessment System Most of Tata’s companies have been awarded the ISO 14001 for their Environmental Management System and OHSAS 18001 for Occupational Health and Safety Assessment System. •

Tata Index for Sustainable Human Development TCCI, in collaboration with the United Nations Development Program (India), created the Tata Index for Sustainable Human Development. This was aimed at directing, measuring and enhancing the community work that group enterprises undertake. TCCI is also involved in assisting Tata companies address the sustainability subject through the Global Reporting Initiative, a United Nations initiative that has guidelines for companies on social responsibility. The Tata Index for Sustainable Human Development is a set of guidelines for Tata companies looking to fulfill their social responsibilities. It has been built around the Tata Business Excellence Model (TBEM), an open-ended framework that drives business excellence in Tata companies.

Scoring scale The Index prescribes an 'assurance' process to ensure that the community development projects are measured and reviewed so that they perform in a manner that matches the objectives behind them. This assurance links processes to outcomes and divides the entire corporate social responsibility function into three levels: systems, people and programs. This is the distribution of points across the Tata Index for Corporate Social Responsibility, with a balance between process (P) and outcome (O). The connection between process and outcome is vital. Process refers to how the requirements of a particular parameter are addressed. The factors used to evaluate this include use of appropriateness of methods, their effectiveness, and whether they can be repeated. Another aspect of the process equation is deployment. Outcome signifies the specific results of the process (the cause-and-effect methodology). It ©Collage Article13 34

is measured through criteria such as current performance, which is relative to valid benchmarks, and the extent of improvement. The three levels have 17 sub-levels, with 46 parameters under them. The systems level-gauges factors affecting the management of the corporate social responsibility challenge: leadership commitment, structure and deployment, strategy, review, etc. This level offers 275 of a total of 1,000 points. The people level measures parameters such as selection of personnel, training and volunteering. It adds up to 175 points. The program level, the most important of the three, as reflected in a total score of 550 points, deals with the impact on the ground. The factors range from social concerns and scope for self-reliance and sustenance to knowledge transfer and good governance.

Assurance levels

Total Score

Break-up (process + outcome)

Level I – Systems level

275

150 + 125

Level II – People level

175

100 + 75

Level III – Programs level

550

300 + 250

Total Points

1000

550 + 450

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British Petroleum Principles CSR Overview: As a responsible business, the company strongly believes in taking steps to improve the controllable things such as climate change and in influencing and contributing towards social and economical development. Vision/Mission and the Philosophy Regarding CSR: The group aims to carry on its business in an environmentally responsible manner, and develop cleaner energy and renewable energy sources. Commitment to responsibly treat the planet’s resources and to develop sources of lower-carbon energy is an integral part of its philosophy of doing business. Its group values include people, health and safety and environment. Major CSR Themes: Environment and society is the company’s CSR theme, which overrides its activities - Responsible operations, BP and climate change, BP and development.

Process CSR Programs: Responsible Operations: Risk Management: The BP management framework contains devices and risk management tools that support delivery and decisionmaking such as environmental impact assessment. The company expects its employees to comply with group standards as they would with external laws or regulations. Dialogue and engagement: The company engages itself in dialogue with a wide variety of groups to create strong and lasting relationships with them. Employees maintain a dialogue with key groups, such as national NGOs, in different ways and make recommendations for the company on the social and environmental impacts. Health, safety and security: It gives prime importance to the safety of its employees and contractors along with the integrity and security of the plants and equipment. Several measures taken by the company to ensure a safe and healthy working environment are: • Safety systems and structures: A new organizational structure has been designed to deliver better safety performance. The team has chalked out plans for measures in three areas: plant, people and processes. Plant – BP has been carrying out a program of major accident risk assessments (MAR) for their main plants and equipment. A prioritized investment plan will be developed to address the recommendations of the MAR assessments and provide a framework that is designed to mitigate risk continuously. People – BP aims to improve the safety and operational culture, setting new standards for expected behaviors in the workplace and putting in place measures to ensure people have clear accountabilities and are fully competent to do their job. This program of work is being integrated within their overall operating management system. Processes – The Company has designed a new Operating Management System to provide a more rigorous approach to compliance and risk management, including a new formal audit process. It aims to implement the new OMS and audit process fully by 2010. BP is introducing a control of work standard to be fully implemented by the end of 2009. The first part of the standard on driving safety was introduced for employees in 2004 and is hoped to be fully implemented, covering contractors as well as employees, by the end of 2007. A marine operations standard is also being developed. • Product safety: BP assesses its products to identify any health, safety or environmental hazards. It employs highly qualified, health, safety and environmental specialists to provide its business units and customers with expert advice on the products. • Driving safety: As a concern for road safety, BP’s driving safety standard has set out 10 clear rules which are designed to encourage safer driving, safer journeys, and the use of safer vehicles. • Integrity Management: BP took a new action in 2005 to improve operational integrity and safety behaviors within its sites. It has developed a new Integrity Management (IM) group standard which brings together and improves all of its relevant existing processes. The IM standard is to be fully implemented by end of 2008. ©Collage Article13

•

Occupational Health: In 2005, BP was restructured, bringing its health function into closer alignment with its businesses. Its primary effort is to prevent ill health and promote health improvements by identifying and minimizing both workplace and personal health risks. Measures in this direction are: HealthMap – This proprietary health risk assessment tool is used by BP to improve the way of identifying and managing workplace risks. Global Health and Hygiene System – BP uses this system to manage aggregate and individual health information, which allows them to understand better the impact of compliance programs at all levels. HIV/AIDS prevention at the workplace – The Company has developed global operating guidelines on HIV/AIDS, which are available on BP's internal website. Its purpose is to ensure that all employees of the company are informed of the effects on their health, lives and business from the HIV/AIDS pandemic. Managing stress – The Company is developing a multi-faceted approach to reduce the negative impact of stress, primarily on work-related issues. Travel health risks – BP is developing new web-based information and health assessment tools to support employees’ pre-travel preparation. Public Health: BP works with local communities to promote health awareness and health programs in places where the local environment or social conditions may expose its employees to health risks. Company’s public health programs are: Avian Flu – A team, led by a group executive officer, monitors the situation and establishes contingency plans if the risks associated with avian flu are to escalate. HIV/AIDS in local communities – In partnerships with NGOs, local government, and community based organizations, BP works for care and prevention of local communities from HIV/AIDS. Malaria and other infectious diseases – BP has developed a malaria management plan, particularly for the Angola business unit, a high risk area. This includes awareness-generating activities, mosquito control and bite prevention and early access to diagnosis and treatment. HSE management systems: BP has put Health, Safety and Environmental (HSE) management systems and processes in place to ensure that there are no accidents, no harm to people and no damage to the environment. The document 'Getting HSE Right’ provides a clear framework for achievement of consistent HSE performance at a local level. The following processes also cover environmental, as well as health and safety aspects of performance: PHSSER process: Project Health, Safety, Security and Environment Review is a process developed to ensure that HSSE issues are addressed at every stage of the project lifecycle, from planning through to delivery. ESIA studies: Environmental and Social Impact Assessments studies are carried out to help BP and its stakeholders understand the potential impact of a proposed project on environment or society.

BP and climate change: BP Alternative Energy: In 2005, the BP Alternative Energy was launched with plans to invest $8 billion over the next ten years to produce electricity from low carbon sources. This will help reduce forecast greenhouse gas (GHG) emissions, a major cause of global warming. BP and development: Humanitarian aid: Apart from planned community investment, BP also donates towards relief efforts when disasters occur, around the globe. The Company provides community funding as humanitarian aid and funding for disaster relief in various locations around the world. The Company’s recently-funded projects include: • South East Asia Tsunami: BP committed a total of £5.3 million in response to the South East Asia tsunami. Of this, $3 million was distributed as immediate aid and was split among the International Red Cross, Oxfam and UNICEF. • Hurricanes Katrina and Rita: The Company committed $9.5 million to relief efforts following the devastation caused by Hurricanes Katrina and Rita in the US. Of this, $5 million was given to the American Red Cross and other charities throughout the Gulf Coast area, assisting in relief efforts and care for evacuees. • Earthquake in Northern Pakistan: BP contributed $1.2 million to UNICEF, the International Federation of Red Cross and Red Crescent Societies and the President’s Relief Fund in the aftermath of the earthquake in northern Pakistan. Community Relations: BP has developed relations with local communities in over 100 countries through partnerships with local organizations, government and NGOs. Sometimes, the company also sets up Community Advisory Panels (CAPs) which engages with local communities to understand their needs and issues. This keeps people informed and involves them in discussions about BP’s current activities and future plans.

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Enterprise Development: This is one of the key social priorities of BP as it enables them to directly influence the livelihood of many people. The key activities of the Company include: • Encouraging local suppliers: supporting local enterprise in Azerbaijan, going local in Trinidad & Tobago, ‘Black Economic Empowerment’ (BEE) strategy to promote business opportunities among the people of African origin. • Promoting diversified economies: BP is promoting economic diversification by supporting local enterprises in several countries. It is also investigating ways of marketing products for low-income customers, also providing job opportunities for local distributors in countries such as South Africa. • Supporting regional development (Micro-finance programs): During 2005, BP launched a micro-finance program in Angola and supported programs in Azerbaijan, Georgia, Trinidad & Tobago, Colombia and Vietnam. These provide modest loans to individuals, groups and micro-enterprises to expand business activities. Education: Education has been a priority for BP. It provides funding for education projects that are relevant to the needs of different communities. This comprises: • Energy and environmental education Environmental Educators' Initiative (EEI) – BP launched this initiative in China in partnership with the Chinese Ministry of Education and WWF, to achieve its objective of embedding environmental education in China's national school curriculum. ‘A+ for Energy’ program – In 2005, BP launched this signature program in California, US, which was expanded to Houston, Texas. The program provided $2.5 million in grants and training for teachers to enhance energy education. Schools Link Program – Under this program, BP employees work with local schools to lead class discussions on energy and environmental topics, all across the UK. $10 million investment – BP will invest up to $10 million in Russia over the next four years, primarily to fund research and stipends for students and academics. Cyzsty Biznes (clean business) program – BP Poland has helped fund this program to help small and medium businesses understand how energy efficiency can provide them with environmental and economic benefits. Supporting the Abu Dhabi Petroleum Institute – BP, along with Shell, Total and the Japan Development Company, supports the Abu Dhabi Petroleum Institute, a centre for excellence that offers graduates and engineering professionals from the UAE, the chance to develop their skills. • Education and development Pre-school and basic education – In 2005, BP worked with the Public Broadcasting network KCET in California, US to produce the Emmy winning Los Niños En Su Casa (A place of our own), an educational television series for pre-school children. Adult education – BP Trinidad & Tobago has established an education and community centre to serve the community of Mayaro. The centre also houses a BP-backed program to support local businesses. Inclusion in the education system – In 2005, BP launched the Los Angeles Multicultural Educational Collaborative, a four year $3.75 million program designed to raise the levels of attainment among various communities. University education – BP continues an extensive program of university support throughout the world. Following are the significant initiatives taken by BP in 2005: $2 million towards the establishment of the Caucasus School of Economics in Tbilisi, Georgia. The school will promote excellence in postgraduate economic study and research across the region. $8 million project at Imperial College, London, to research the use of energy in cities. Programs at China’s Tsinghua University to explore clean energy options and the implications of urbanization on transport Tangguh project, supporting education institutions in Papua, Indonesia since 2002. BP Projects Academy, run with the Massachusetts Institute of Technology, helping managers attain world-class project management skills. Financed faculty positions in Alaskan native languages and educational technology faculty at the University of Alaska, US. In partnership with the New Economic School in Moscow, BP supports an annual series of conferences focusing on the Chinese and Russian economies. A program runs to promote corporate responsibility and transparent environmental reporting in Russia at Mendeleev Russian State University. In June 2005, BP made a 10-year, $16-million commitment to the BP Energy and Environmental Program, to provide education and training to emerging leaders in the field of conservation and ©Collage Article13 38

development. Human Rights: BP supports the Universal Declaration of Human Rights (UDHR) and follows the UDHR’s statement that “every organ of society” shall strive to promote respect for the rights and freedom outlined. BP has framed its code of conduct to protect and promote the human rights of its employees by creating a work environment of mutual trust, rejecting unlawful and unfair discrimination, working in good faith with trade unions and other representative bodies, and not engaging in bribery or corruption in any form. • Conflict and security – BP safeguard human rights in its security arrangements by applying the Voluntary Principles on Security & Human Rights (VPs). The VPs include guidelines which BP uses to undertake risk assessments; engage private security providers; and interact with public security forces. BP has implemented Azerbaijan Onshore Operations Performance Unit’s Human Rights Response Plan which outlines a process for internal due diligence to establish, as quickly as possible, the credibility of the case; then for an investigation if the incident appears to be genuine and of high severity. The plan includes guidelines for notification, accountability, and reporting and examples of such situations. External scrutiny promotes learning and provides assurance. Baku Tiblisi Ceyhan Co. and South Caucasus Pipeline Co. have commissioned monitoring of their compliance with the Voluntary Principles on Security and Human Rights by the corporate social responsibility practice of the law firm Foley Hoag. • Right to development – In line with the UN Declaration on the Right to Development, BP is running a program for the upliftment of people below poverty line through easy access to energy. It helps improve access to energy through partnerships with host governments, the private sector, NGOs and international aid agencies. • Child labour – BP recognizes that some areas of its business may face the problem of exploitation of children. So it helps reduce and ultimately eliminate all forms of forced, compulsory and child labour by framing its ethical conduct policy, based on ILO convention C138, which states that no BP business shall use forced or child labor. • The right to health – BP believes in promoting and upholding the right to health. Throughout 2005, it took initiatives to address the threat of HIV/AIDS, malaria and other diseases to its employees and to the communities in which BP operates. Financial Outlay: • In 2005, BP community investment touched $95.5 million and the company invested nearly $50 million on education. BP’s education investment doubled since 2002 and the company continues to invest around 50% of its annual commitment on education. In 2004, BP made a commitment to spend around $500 million towards community investment in each five-year cycle. • BP spent $2914 million towards environmental expenses in 2005. Environmental Expenses Category

$ Million

Operating expenditure

494

Capital expenditure

789

Clean-ups

New

provisions

for

environmental

565

remediation New provisions for decommissioning

1023

Outcomes Awards: The BP Group has won awards such as: • Catalyst Award for Advancing Women in the Workplace in 2006: The award, instituted by Catalyst, is for strategic business initiatives that result in the recruitment, development, and advancement of women in the workplace. • Climate Action Champion Award in 2006: Instituted by the California Climate Action Registry, it was given to BP for demonstrating exemplary leadership in addressing climate change. • Clarion Awards for 2006 in the Education Category: This award recognizes best practice in communicating the importance of CSR, sustainable development, social inclusion and ethical debate. BP won two bronze International Visual Communications Association (IVCA) Clarion awards for its resource, Living With Traffic, for education and interactive multimedia publishing. ©Collage Article13

•

• •

•

"Energy Company of the Year" and “Gold Award” winner in the Renewable Energy category in 2005 Energy Business Awards: These awards are given for excellence in the way energy business is conducted, trading risks mitigated, precious energy resources utilized, energy systems developed, environmental degradation curtailed, energy technology advanced, and energy production and consumption distributed more efficiently and ethically. World’s No. 2 "Top Green Companies" in 2005: The award is instituted by BusinessWeek. The ranking was based on reduction of greenhouse gases. Responsible Care Awards in 2004: Instituted by Chemical Industries Council of Malaysia’s (CICM), BP PETRONAS Acetyls (BPPA) won the platinum award for community awareness, emergency response, process safety and distribution. Malaysia's Human Resource Development Board Award 2004: This award is given in the manufacturing sector for small/medium sized company category to BPPA. Frank Lees Medal in 2003: The award is instituted by Safety and Loss Prevention Subject Group, Institution of Chemical Engineers (IChemE) for the most meritorious publication on the topic of safety and loss prevention in an IChemE publication. Two awards at the Prestigious Prince Michael International Road Safety Awards in December 2005.

Metrics and its Evaluation: BP evaluation on Environment, Health and Safety initiatives: • All major sites of BP achieved ISO 140001 international standard on environmental management, by independent auditors, at the end of 2004. • To help achieve its Health Safety Security Environment (HSSE) goals, in 2005, BP developed a HSSE management system framework, getting HSSE right (gHSSEr), which provides the basis for the development of local/site/facility HSSE management systems. It helps line managers focus on critical HSSE needs, forecast and allocate resources, set direction for HSSE activities, and consistently deliver improved HSSE performance. It encompasses the complete spectrum of health, safety and environmental risk management including personal security and product stewardship.

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Airtel (Telecom) Principles CSR Overview According to the company, “Corporate Social Responsibility is a way of life at Bharti.” Airtel has been looking after the needs and interest of its stakeholders, including employees, consumers, and communities, along with the environment. Vision/Mission and the Philosophy regarding CSR “Airtel is strongly committed to being a responsible corporate citizen. Providing a platform to leverage the potential of the citizens of tomorrow and concern for the environment are our top priorities.” Sunil Bharti Mittal – Chairman and Managing Director. Quoted from the 2005-06 annual report. Major CSR Themes The company invests in several CSR initiatives, from consumer privacy policy to the promotion of entrepreneurship. However, Bharti Airtel’s major CSR themes are Education and Environment.

Process CSR Programs Community • Customer: Airtel has been implementing consumer-focused programs, such as the Consumer Privacy Policy, which retrains the sending of promotional messages and the Consumer Contact Program, where employees, including senior managers, contact five customers every month to obtain feedbacks. • Employees: It has launched the ‘Empower Program,’ an initiative to help employees and their families deal with stress. • Human Rights: Airtel launched the CII-Bharti Woman Exemplar Award in 2005 to promote women’s empowerment at the grassroots. It seeks to recognize women who have excelled in the fields of primary education and literacy, health, micro-finance and enterprise. This is a joint initiative by the Bharti Foundation and the Confederation of Indian Industry (CII). Environment: • 5,000 sites are using a green-shelter system that provides cooling for four hours in the Base Transceiver Station. This system saves cost and reduces pollution. Airtel also shares 25% of its mobile cell sites, which contribute to decrease environmental disturbance. Internally, the company has implemented a wastage reducing campaign to decrease paper consumption. Education: • Bharti Airtel founded the Bharti Foundation in 2000, with the vision: “To help underprivileged children and young people of our country realize their potential.” Through the foundation, several initiatives were started such as the Bharti Computer Centers, which have provided computer learning to more than 130,000 children in five states; the Bharti Library Program, aimed to encourage reading habits of children; and the Mid-day Meal Program, in which Bharti Foundation has supported Akshaya Para in providing meals to 43,000 children per day in 292 government schools. For the coming years, the foundation has plans to start a large number of primary schools in rural areas across the country. It will also provide teacher’s training facilities. Health • HIV: Red Ribbon Caravan: The company supported the Rajasthan State AIDS Control Society in a campaign to create awareness about HIV/AIDS. A caravan of five vans traveled in 32 districts of Rajasthan. • Donations: Airtel donated item such as woolens to Kalakar School; medicines, stationery, and clothes to the Missionaries of Charity Home for Destitute; and water bottles to Kashmir’s earthquake-affected area in October 2005. Financial Outlay Bharti Airtel has committed Rs 200 crore to support CSR initiatives over the 2006-08 period.

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Organizational Support CSR at Bharti Airtel is the responsibility of the Corporate Director Alliance & CSR. The corporate director is under the Chairman and Managing Director (CMD), Sunil Bharti Mittal.

Personnel Support Tina Uneken (Corporate Director – Alliances & CSR) Uneken has 28 years of work experience during, which she has held operational and management positions in sales, marketing, customer service, logistics, and project implementation. She also has extensive experience in the areas of M&A and alliance management.

Outcomes Awards Bharti Airtel has won awards such as: • India’s Most Customer Responsive Telecom Company Award in 2006 for the second consecutive year. The award was instituted by Avaya Global Connect Ltd. • The Golden Peacock Award for Corporate Social Responsibility for 2006 in the NGO category. This award was instituted by the Centre for Social Responsibility supported by Institute of Directors (IOD), Centre for Corporate Governance (CFCG), and the World Council for Corporate Governance (WCFCG), UK. • India's 'second best employer' in 2004: Conducted by Hewitt Associates globally, this study identifies ‘Best Employers' based on employee opinion, the organization's employment and people practices, and the perspective of its senior leadership.

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Bharat Sanchar Nigam Limited (Telecom) Principles CSR Overview: The Bharat Sanchar Nigam Limited (BSNL) is committed to provide quality telecom services at affordable price to the citizens of the remotest part of India, since it is of utmost importance for achievement of the country's social and economic goals, according to the company. BSNL is the only telecommunication service provider offering rural telephony as part of its social responsibility. Vision/Mission and the Philosophy regarding CSR: BSNL aims to provide universal service to all uncovered areas, including the rural areas and also encourage development of telecommunication facilities in remote, hilly and tribal areas of the country. Availability of affordable and effective communications for the citizens is at the core of the CSR vision at BSNL. Major CSR Themes: To transform, in a time-bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players. The company has implemented projects in three key areas: Employee’s Welfare Activities; Assistance during natural calamities and Rural Broadband Plan. Process CSR Programs at BSNL: Community • Employee’s Welfare Activities: Commitment towards the principles of corporate social responsibilities is inbuilt within the corporate philosophy of BSNL. A wide range of welfare programs focus on the employees’ welfare and are continuously implemented by the Staff Welfare Board of the Company. Bharat Sanchar Sarathy and Sanchar Seva Padak Awards to employees for their meritorious service in the field of telecommunications Corporate Group Life Insurance Policy: This is intended to cover nearly 350,000 employees. The policy includes life insurance component, which provides cover against natural death, a double accident benefit besides retirement benefits. • Assistance during natural calamities: Following the Tsunami in the Indian coastal areas, the company helped restore the communication networks in the worst-hit areas of Tamil Nadu, Kerala and the Andaman and Nicobar Islands - within a short time. BSNL and its employees contributed Rs. 2,207 lakhs to the Prime Minister’s Relief Fund. BSNL also restored telephone services in record time in the flood-hit areas of Gujarat and Maharashtra. • Rural Broadband Plan: Bharat Sanchar Nigam Limited does not have any direct subsidy schemes / programmes for public. However, BSNL, is the only service provider offering rural telephony as part of its social responsibility. BSNL plans to provide broadband to 20,000 villages that are already connected through optical fibre. With government support to provide broadband to all gram panchayats, secondary and higher secondary schools and public healthcare centers by end of 2007. BSNL is offering concessional tariff for rural subscribers by providing lower rental and higher free calls as compared to urban area subscribers. Outcomes Awards: •

Golden Peacock National Award 2005: BSNL has won the ‘Golden Peacock National Award 2005’ for its contribution to the field of CSR, in connecting the remotest regions of India and adhering to best labor practices. BSNL has been selected in the category of government sector out of 23 PSUs and government undertakings.

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Bajaj (Automotive) Principles CSR Overview Bajaj Auto’s philanthropic activities among the rural poor are carried out by a trust, the Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). Established in 1987 by Ramkrishna Bajaj in memory of his mother, Jankidevi Bajaj, this Trust acts as a catalyst to development at the grass root level in 32 villages around its plants in Pune and Aurangabad. Vision/Mission and the Philosophy Regarding CSR • The Company affirms that its competitiveness is interlinked with the well-being of all sections of the Indian society. • According to the company, Bajaj Auto is committed to nation-building and contributing to the uplift and development of the weaker sections of society. This, the company believes is the legacy of its founders, Jamnalal and Kamalnayan Bajaj. Major CSR Themes The philanthropic activities implemented by the company are aimed at the integrated development of villages through women empowerment, income generation, health programs, agricultural extension, animal husbandry, watershed development, drinking water schemes, sanitation and education. Process CSR Strategy: Community, Health & Education: CSR Programs and policies Jankidevi Bajaj Gram Vikas Sanstha (JBGVS) • Vision Statement: JBGVS is a non-political and secular organization, which strives to improve the quality of life of the rural poor by creating self-employment opportunities at the grass-root level, through the use of appropriate technologies, in harmony with nature. • Focus: The trust initiates sustainable, integrated development through long term projects in rural health, hygiene and sanitation, education and adult literacy, improving agricultural and livestock yield, watershed development and women’s empowerment. Through its poverty alleviation schemes, the Trust provides micro-credit and income generation opportunities for the poor. These projects have a positive impact on the quality of rural living standards. The Trust is stepping up its projects encompassing agricultural extension services, lift irrigation, environmental sanitation, veterinary services, health and education. • Implementation strategy: To ensure the involvement of its rural constituents, JBGVS relies on a participatory approach in implementing all its projects. The Trust also secures the participation of local elected bodies eg. gram panchayat (village council), co-operative societies, women’s and youth bodies, in decision making. Samaj Seva Kendra • Set up by Bajaj Auto in 1975, the Samaj Seva Kendra (SSK) undertakes social activities in the semi-urban areas on the outskirts of Pune. Local industrial workers are provided opportunities for self- development, education, healthcare, sports and recreation. SSK involves local institutions and municipal bodies, local Rotary Clubs and NGOs in its activities. • SSK has helped empower wives of factory workers by providing them earning opportunities. Kamalnayan Bajaj Hospital • The company operates a multi-specialty hospital in Aurangabad, western Maharashtra. • High-quality secondary and tertiary healthcare and specialist facilities are provided under one roof. Company’s Key Policies • The Company believes that equal opportunity in employment for all sections of the society is a component of its growth and competitiveness. ©Collage Article13

• • •

•

It recognizes that diversity to reflect socially disadvantages sections of the society in the workplace has a positive impact on business. The Company is not biased against employing people from disadvantaged sections of the society, if the applicant possesses competitive skills and job credentials. Its selection of business partners is not based on any considerations other than normal business parameters. In case of equal business offers, the Company will select a business partner belonging to a socially disadvantaged section of society. The Company makes all efforts for upgrading the skills and continual training of all its employees to enhance their capabilities and competitive skills. No discrimination of any type is shown in this process. It plans to have a partnership program with educational institution/s to support and aid students from socially disadvantaged sections of the society.

Financial Outlay: The Bajaj Group spends Rs. 100 million ($2.15 million) every year on philanthropic activities through various trusts and foundations holding an asset of Rs. 700 crore ($153 million). Organizational and Personnel Support • Bajaj Auto Limited adopted the Code of Conduct for Affirmative Action. This became effective from December 1, 2006. • The Company has nominated K Srinivas, Vice President (HR), to oversee and promote the Affirmative Action policies and programs. He is accountable to the Chairman. • The Company will make available its learning and experiences as a good corporate citizen in Affirmative Action to other companies desiring to incorporate such policies in their own business. Outcomes Awards: • Bajaj was awarded the Meritorious Performance in Industrial Safety Award from 19982001. The award was given by the National Safety Council. • Award for “Achieving Longest Accident-free Period’ under Heavy Engineering Industries Group. Bajaj received this award for three consecutive years (1997-1999) from the National Safety Council. Metrics and Evaluation • The Environmental management system, which is an integral part of the overall management system at Bajaj Auto’s Aurangabad plant, was awarded ISO 14001 certification in 1997.

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Hero Honda (Automotive) Principles CSR Overview Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones developed at the grassroots. The company believes it has managed to bring an economically- and socially-backward region in Dharuhera, Haryana, into the national economic mainstream. Vision/Mission and the Philosophy regarding CSR • Strive for synergy between technology, systems, and human resources, to produce products and services that meet the quality, performance, and price aspirations of its customers. • At the same time maintain the highest standards of ethics and social responsibilities. Major CSR Themes • Education, rural health care, vocational training, adult literacy, social support for girls from backward classes. Process CSR Strategy: Stakeholder Ties at the Grassroots CSR Programs and policies • An Integrated Rural Development Centre was established on 40 acres of land along the DelhiJaipur Highway. • The centre – with wide roads, clean water, and education facilities for both adults and children –nurtures a vibrant, educated, and healthy community. The company has adopted various villages located within the vicinity of the Hero Honda factory at Dharuhera for integrated rural development, which includes: Installing deep bore hand pumps to provide clean drinking water. Constructing metalled roads and connecting the villages to the National Highway (NH-8). Renovating primary school buildings and providing hygienic water and toilet facilities. Ensuring a proper drainage system at each of these villages to prevent water logging. Promoting non-conventional sources of energy by providing a 50% subsidy on biogas plants. Education • Raman Munjal Vidya Mandir: It has grown into a modern Senior Secondary, CBSE-affiliated co-educational school with over 1200 students and 61 teachers. • Adult Literacy Mission: This scheme was launched on September 21, 1999, covering the nearby villages of Malpura, Kapriwas, and Sidhrawali. The project is now in the process of imparting adult literacy capsules to another 100 adults by getting village heads and other prominent villagers to motivate illiterate adults. Community • Raman Munjal Sports Complex: This comprises basketball & volleyball courts and hockey & football grounds, which are used by the local villagers. • Vocational Training Centre: The company has helped women, trained at this center, to start a production unit for stitching uniforms for Hero Honda employees. Thus, most women are now self-employed. • Marriages of Underprivileged Girls: Marriages are organized from time to time, particularly for girls from backward classes, by the foundation. It provides financial help and other support to families. Health • Rural Health Care Raman Munjal Memorial Hospital: Multi-specialty hospital equipped with the latest diagnostic and surgical technology. • Besides establishing a modern hospital, the foundation also regularly provides doorstep healthcare services to the local community. Free healthcare and medical camps are a regular feature in the Hero Group's community outreach program. ©Collage Article13

Company’s Environment Policy Hero Honda is committed to demonstrate excellence in its environmental performance on an ongoing basis, as an intrinsic element of its corporate philosophy. To achieve this, the company commits itself to: • Integrate environmental attributes and cleaner production in all its business processes and practices with specific consideration to substitution of hazardous chemicals, where viable and strengthen the greening of supply chain. • Continue product innovations to improve environmental compatibility. • Comply with all applicable environmental legislation and also control its environmental discharges through the principles of ‘as low as reasonably achievable’ (alara). • Institutionalize resource conservation, in particular, in the areas of oil, water, electrical energy, paints, and chemicals. • Enhance environmental awareness of its employees and dealers/vendors, while promoting their involvement to ensure sound environmental management. Organizational and Personnel Support • Hero Honda is strongly committed not only to environmental conservation programs, but also expresses the increasingly inseparable balance between the economic concerns and environmental and social issues faced by a business. "We must do something for the community from whose land we generate our wealth." Quote from Chairperson Brijmohan Lall Munjal. Outcomes Awards • 2006: Ranked No. 1 in automobile industry by TNS Corporate Social Responsibility Award • 2001: Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre for Science & Environment • 1995: National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award – Presented by President of India) Metrics and Evaluation Hero Honda’s evaluation on environment, health and safety initiatives: • The company was certified for its Environmental Management Systems according to ISO 14001. The Green Rating conducted by the Centre for Science & Environment, New Delhi, for all automobile companies in India, ranked Hero Honda as No.1 for its environmental performance. • 1999: Environment Management System of Dharuhera Plant was certified with ISO-14001 by DNV Holland • 2000: Environment Management System of Gurgaon Plant was certified with ISO-14001 by DNV Holland • Satyam Auto Components Limited from Hero Group of Companies acquired ISO 9002 certification from British Standards Institute, UK, for its commitment to Total Quality

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Godrej (FMCG) Principles CSR Overview: “Corporate Social Responsibility in Godrej covers many aspects and areas, the greenery and mangroves are just one of them,” according the company. Godrej has been a key player in aiding education, environment and the health verticals besides looking after its own employees. Vision/Mission and the Philosophy Regarding CSR: The company strongly believes that the green environment enhances productivity and quality which has been appreciated by all employees and visitors. The company has a mission of “Enriching quality of life everyday everywhere.” Major CSR Themes: Godrej has been investing in several CSR initiatives varying from education for the poor to HIV/AIDS campaigns. However, Godrej’s major CSR themes are Environment and Health-Donations.

Process CSR Programs: Community o Employees: Godrej provides pre-primary, primary and secondary schooling to its employee’s children. Environment • The Soonabai Pirojsha Godrej Foundation has been maintaining the western bank of the Thane Creek, the single largest mangrove belt in Mumbai. The Sohrabji Godrej Green Business Centre launched the Green Business Initiative in December 2005, which was aimed at facilitating the development of corporate greenhouse gas inventories and subsequent investments in greenhouse gas mitigation projects. • The company has also been associated with TRAFFIC-India (Trade Record Analysis of Flora and Fauna in Commerce), a division of WWF-India, which is responsible for monitoring and studying legal and illegal trade in wildlife and its derivatives. • Godrej is a member of the exclusive "1001: A Nature Trust," which is actively associated with preservation of nature, wildlife and the environment. The company annually celebrates "Sarvajanik Holi" which helps to curb the wanton destruction of trees. • Its Godrej Ganga Ecology Panel generates public awareness among the people living on the banks of River Ganga to preserve heritage monuments and also help to control pollution. • The company has some groups like the Envirotech Group – for pollution-reduction and related matters, the Encon Group – for energy conservation and the Garden Department, which looks after the natural environment of numerous areas in Mumbai and in other cities. Godrej also launched the Green Governance Project in 2003 for biodiversity conservation. It is an active participant of The Indian Heritage Society which aims at preserving the architecture of India. Education Godrej established the Pirojsha Godrej Foundation in 1972 which later set up the Godrej Technical Institute at Bordi and the Pirojsha Godrej Research Laboratory. Udayachal Schools having both primary and high school branches were set up by the founder Pirojsha Godrej in 1955 with the aim of helping poor students lead a rich life. So far, 5,469 children have passed out from Udayachal. Godrej is also setting up “The Centre for Excellence” at Pirojshanagar, which will comprise a management institute covering management systems of various types and cultures, including ancient and modern Indian, Western and Japanese.

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Health o HIV: Godrej funds the NAZ foundation which has evolved and implemented a holistic approach to fight HIV, focusing on prevention as well as treatment. In 2004, Parmeshwar Godrej, wife of Chairman Adi Godrej, launched a three-year Heroes Project which seeks to develop coordinated campaigns to address the spread of HIV/AIDS and reduce stigma and discrimination by educating the public. To fight AIDS, Godrej & Boyce has opened a clinic at its Godrej Memorial Hospital, Mumbai. o Donations: Godrej supports the Foundation for Medical Research, Mumbai for the cure of leprosy. Godrej is connected with the Family Planning Foundation, a voluntary organization devoted to promote family planning as a basic human right. The company also funds the “Family Welfare Programme" under which the "Well Baby Clinic" had treated 1135 children by 2006. o The Godrej Memorial Trust, established in 1994 runs a clinic in New Delhi which provides facilities for operations, examinations, immunization, counseling and family welfare. Financial Outlay: The company gives 30% of its profit to charitable pursuits through the Pirojsha Godrej Foundation. In the financial year (2005-2006), the company spent an estimated Rs 70 crore on CSR related projects. Personnel Support: Jamshed Godrej, Chairman and MD, Godrej and Boyce Manufacturing Company Limited were earlier the head of Confederation of Indian Industry (CII). He looks after all the CSR projects relating to environment, health, education etc for the Godrej group. For his accomplishments, he was given the Padmashri Award in 2003. Outcomes Awards: Godrej has won awards such as: • The BHNS Green Governance Award 2005: Godrej & Boyce Mfg Co. Ltd received this award on November 10, 2005 for conservation and restoration of habitat. th • WWF 25 Anniversary Benefactor “White Pelican” Award was received by S P Godrej for the company’s contribution to conservation of nature and natural resources. Metrics and its Evaluation: • The Awareness program for Godrej and Boyce, Vikroli, Mumbai was given the ISO 14001 certification.

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Dabur (FMCG) Principles CSR Overview Dabur strongly believes in meeting the health and personal grooming needs of consumers by providing safe, efficacious, and natural solutions. One of the company’s strategic intents is to protect the environment as a responsible citizen. Vision/Mission and the Philosophy regarding CSR Dabur has a vision of being a company dedicated to the health and well being of every household, drawing inspiration from its founder Dr. S. K. Burman, who said, "What is that life worth which cannot bring comfort to others." Major CSR Themes Healthcare, education, skill development and income generation training, people’s empowerment, and environment issues. Of these environment issues is the major social concern for the company.

Process CSR Programs SUNDESH: In 1993, Dabur India Ltd established Sustainable Development Society (SUNDESH), a registered voluntary organization, integrating various aspects such as health, literacy, employment, and empowerment. Through this, the company addresses the most deprived and weaker sections of the society including women, children, illiterates, and the unemployed. Community: • Skill Development & Income Generation Training: To make people more self-sufficient, the company imparts training in cutting and tailoring, food preservation, bee-keeping, and mushroom farming. • People’s Empowerment: Dabur, through this initiative helps in the formation of micro-credit society/self-help groups. It then links these groups with financial institutions that can fund their causes. Environment: Another major social concern for the company. Dabur works towards developing sustainable cultivated source for herbal ingredients, which would help in reducing the strain on natural habitat of these herbs. The company is also involved in reforestation in the Himalayan range. It has started the ‘Plants for Life’ project in the mountainous regions of the Himalayas. Under the project, a high-tech greenhouse facility has been established for developing saplings of rare and endangered medicinal plants. Fully computer-controlled and -monitored, this greenhouse maintains the highly-critical environmental parameters required for their survival. It is also developing quality saplings of more than 20 herbs, eight of them endangered, through micro propagation. Measures, such as satellite nurseries and contract cultivation of medicinal herbs spread across mountain villages, also help provide local cultivators the scientific knowledge for harvesting herbs and a steady source of income. Education: Dabur’s educational initiatives include providing for non-formal, remedial, and adult education. • Non-formal Education: Directed towards children in the age group of 6 to 14 years, who are either dropouts or had not been to the school. They are finally inked with the formal school. • Remedial Education: Provides coaching classes for school-going children who are weak in studies and no body in the family assists them. • Adult Literacy: Illiterate women in the age group of 15 to 35 years get education, which is useful in day-today life. •

School Program: In 2001, Dabur launched a program to increase awareness about plants in children by organizing awareness camps in various schools. It then organized a team of children, named Protect Life And Nature Team (PLANT), to plant trees with medicinal properties and increasingly encourages participation.

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Health • The company organizes camps, which include general OPDs, antenatal checkup, vaccination for children aged 0-5 years, family welfare, health awareness through meetings, eye screening and eye operation camps. • Chunnilal Medical Trust: The Chunnilal Medical Trust has a dedicated team of doctors and specialists in social medicine. The trust organizes regular medical camps to provide medical services in areas that have no access to proper hospitals or medical centres. It also conducts regular health-awareness camps for the local communities, where they are given simple solutions for everyday health and hygiene. The trust is also motivated to follow mother and child health programs, including immunization and proper ante and post-natal care. Personnel Support Abhinav Rahul, Manager – Corporate Communication of Dabur, oversees the rollouts of various community initiatives. Outcomes Awards Dabur has won awards such as: • Dabur was among the ‘Top 10 Great Places To Work’ in 2004, in a survey conducted by Business World in collaboration with Great Places to Work Institute. Metrics and its Evaluation • As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first company for ayurvedic products to get ISO 9002 certification.

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HLL (Rural Marketing) Principles CSR Overview In Hindustan Lever Limited (HLL), CSR is rooted in its Corporate Purpose - the belief that, "to succeed we require the highest standards of corporate behavior towards our employees, consumers and the societies and world in which we live.” Vision/Mission and the Philosophy regarding CSR HLL's CSR philosophy is embedded in its commitment to all stakeholders, including consumers and employees, the environment, and the society the company operates in. HLL acknowledges that development and poverty reduction depend on economic prosperity, and that international trade and investment create new employment, raise skill levels, and increase economic activity. The company depends on sustainable sources of raw materials, and is committed to minimizing the environmental impact, improving sustainability throughout the value chain.

Relating CR to Business Strategies Product Development Water conserving products Human Resource BLT placements, igniting growth volunteering, hiring and investing in local talent (merit-based through employment exchanges) Manufacturing Safety Health Environment manufacturing Sourcing Code of Business Practices (COBP) Compliance Sales Shakti, cause marketing Investment Local enterprise development Profit apportionment Community involvement initiatives Major CSR Themes • Health & hygiene, education, women empowerment, rehabilitation of special or underprivileged children, care for the destitute, HIV-positive, and rural development. • Sustainable initiatives have long-term benefits, and an ongoing business purpose linked to them is given priority focus. Process CSR Programs Community • Rural Development: HLL launched Project Shakti in 2001 to create income-generating capabilities for underprivileged rural women by providing a small-scale enterprise opportunity, and to improve rural living standards through health and hygiene awareness. The project has been extended to 15 states covering 80,000 villages. The company has launched ‘i-Shakti’ kiosks – an IT-based rural information service developed to provide information and services to meet rural needs in agriculture, education, vocational training, health, and hygiene. To improve business skills of the rural population, especially women, extensive training programs are held. The total strength of Shakti Entrepreneurs has reached over 30,800. Shakti also contributes approximately Rs 100 crore to HLL’s topline, and the project was expected to achieve cash break-even by 2006. • Special Education and Rehabilitation Center: In 1992, HLL started a center for the handicapped in Assam called Ankur, to impart special education and provide services to children suffering from various disabilities such as cerebral palsy, mental retardation, deafness, blindness, polio, and other physical disabilities. Subsequently, the company launched other centers in Coimbatore called Kappagam (1998) and Anbagam (2003). It is also involved with The Spastics Society of Bangalore in providing education and support to children with brain damage. The society runs a school, a vocational training centre, and a free medical center in Bangalore. HLL also bears the capital and upkeep expenses for Asha Daan, a home ©Collage Article13 52

•

started by Mother Teresa and the Missionaries of Charity in Mumbai for abandoned, challenged children, destitute people and HIV-positive patients. Women Empowerment: HLL's initiative – The Fair & Lovely Foundation aims at economic empowerment of women across India. It aims to achieve this through providing information, resources, inputs, and support in the areas of education, career, and enterprise. It specifically targets women from low-income groups in rural as well as urban India. Disaster Relief: HLL has reconstructed a village in the Bhachau Taluka of Gujarat's Kachch district, which was completely wrecked by the devastating earthquake of January 2001.

Environment: • Water Conservation and Harvesting: HLL is also committed to extending its efforts on water management to the larger community, and engages in community projects in water adjacent to manufacturing sites. Education: • Rural Education Program – HLL is also developing a Rural Education Program, which aims at using audio-visual aids, such as video cassettes and CDs. These tools enable teachers to explain basic concepts in mathematics, such as operation on numbers, fractions, algebra, and geometry, to primary school children in villages. • Schools Contact Program – The program indirectly benefits children studying in 21 schools. It offers donations to build an auditorium, a library, or a laboratory, or for purchasing computers, organizing training workshops for teachers, thus enabling them to more effectively manage both classrooms and the school. Health: • Health & Hygiene Education: To educate people about basic hygienic habits, HLL’s health and hygiene education initiative called Lifebuoy Swasthya Chetana, is the single largest rural educational program ever undertaken in India. The program has so far covered approximately 15000 villages in eight states. Organizational Support Approximately 9% of the company’s resources for community involvement come in the form of employee time. Their time is ranged from their involvement in Ashadaan to the disaster affected Yashodadham village near Bhuj. HLL management trainees spend approximately four weeks on Project Shakti in rural areas with NGOs or Self Help Groups.

PRIORITY ACTION RADAR Score for Priority Action Maximum

COMMUNITIES 1.00

CONSUMERS

0.80

CUSTOMERS

0.60

SUPPLIERS

0.40 0.20

EMPLOYEES

0.00

PARTNERS

ENVIRONMENT

LEADERSHIP

GOVERNMENT INVESTORS

Financial Outlay In 2005, HLL committed Rs 80 million for immediate relief of the tsunami-hit areas of Pondicherry, Tamil Nadu, and Kerala. The company also planned to spend Rs 30 million, inclusive of employees’ contribution. Its employees donated a day's salary, totaling Rs 5.1 million, which was used to help people restore their homes and start to resume their livelihoods. The company also provided Rs 10 million for Mumbai flood relief in 2005. Personnel Support Paresh Chaudhary and R Ram handle its corporate communications department. Project Shakti was headed by Sharat Dhall, HLL’s Marketing Operations Manager. Outcomes Awards: • • • • •

2005: Bombay Chamber of Commerce and Industry Civic Award for Community Development. 2005: Tatapuram and am Tindiindivanam factories received awards for exemplary safety performance from National Safety Council and the Government of Tamil Nadu. 2003: TERI-CSR Special Award from The Energy and Resources Institute (TERI) for initiatives in sustainable development. 2001: Good Corporate Citizen Award by the Bombay Chamber of Commerce & Industry (BCCI). 1999: Ankur, HLL’s center for rehabilitation, was vested with the prestigious Worldaware Business Award for Social Progress

Metrics and Evaluation: • HLL proves its commitment to quality by mandating that all manufacturing facilities are certified to a quality system standard. • The company has a management system conforming to ISO 14001 & OHSAS 18001.

ITC Limited (Rural Marketing) Principles CSR Overview: ITC believes that corporations like itself have a responsibility to set exemplary standards of ethical behavior, both internally within the organization, as well as in their external relationships. Vision/Mission and the Philosophy regarding CSR: According to ITC Chairman, Y C Deveshwar, "Envisioning a larger societal purpose (a commitment beyond the market) has always been a hallmark of ITC. The Company sees no conflict between the twin goals of shareholder value enhancement and societal value creation. The challenge lies in fashioning a corporate strategy that enables realization of these goals in a mutually reinforcing and synergistic manner." Major CSR Themes The company is involved in various initiatives like environmental performance, primary education, agriculture, women empowerment, but the groups’ focus is on rural development. Process CSR Focus Community • e-Choupal: This empowers 3.5 million farmers through access to customized crop-specific information in their native village, habitat and language. Vernacular Web sites relating to each agricultural crop that the company deals in provides ready and real time information to even marginal farmers on the prevailing Indian and international prices and price trends for their crop, expert knowledge on best farming practices, and micro level weather forecast. • Livestock Development Program: In collaboration with BAIF Development Research Foundation, a national NGO specializing in livestock development, ITC assists small and landless farmers to cross-breed their low milk-yielding cattle with high-yielding breeds. • Integrated Agriculture Development: This intervention aims to improve farm productivity and hence incomes by promoting a package of efficient farm practices and technologies. The efficiency of water-use through such systems has been documented comprehensively with a view to sharing the information with farmers through the e-Choupal network. • Women Empowerment: ITC aims at micro-credit and skills training to generate alternate employment opportunities for women to facilitate better nutrition, healthcare and education for their children. Education • Primary Education: ITC provides infrastructure facilities to select government schools under its "Project Classmate.” Its initiatives include improving school buildings, constructing toilets, providing electricity connections and supplying fans and lights. Environmental Performance • Renewable Energy: The company focuses on the use of renewable energy such as biomass and solar energy. Several of its units have installed solar thermal systems in canteens and kitchens. • Energy Conservation: ITC endeavors to be a carbon positive corporation. Its efforts in the field of energy conservation, use of carbon neutral fuels and large scale tree plantations through social and farm forestry have resulted in sequestering 85.6% of the CO2 emitted by its operations, the company claims. • Wasteland Development: Its social and farm forestry program have together greened nearly 41,000 hectares with over 149 million saplings. At the close of the planting season of 2005-06, 2,283 hectares were brought under plantations of eucalyptus, subabul, casuarina, bamboo and teak in Andhra Pradesh. • Watershed Project: The government of Rajasthan and the ITC Rural Development Trust signed a memorandum of understanding for a watershed development project in Kalyanpura village, over 250 km from Jaipur. ITC seeks to achieve two critical objectives: water ©Collage Article13

conservation and soil enrichment through its watershed projects.

Community Investments

Investment in Community Initiatives 50

46.91

Rs Crore

40 30 20 11.45

12.54

12.89

3.3

1999-00

2000-01

2001-02

2002-03

2003-04

Year

Outcomes Awards: Some prominent awards received by ITC are: • •

•

• • • • • • •

The Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in 2007. The Award for ‘CSR in Emerging Economies 2005’, instituted by the Institute of Directors, New Delhi, in association with the World Council for Corporate Governance and Centre for Corporate Governance. The inaugural 'World Business Award' in 2004, instituted jointly by the United Nations Development Programme (UNDP), International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF). The Stockholm Challenge Award in the Economic Development category for e-Choupal in 2006. The Pacific Asia Travel Association Gold Award in the Corporate Environmental category for the WelcomEnviron initiatives in 2006. The MIS Asia Award for IT Excellence for e-Choupal – 2006. The first Indian company and the second in the world to win the prestigious Development Gateway Award in 2006. CII & Hyderabad Metropolitan Water Supply & Sewerage Board Hyderabad Water Conservation Award –2005. LEED V2 Platinum Rating by The U.S. Green Building Council (Leadership in Energy and Environment Design, Green Building Rating System). Green Rating by the Centre for Science & Environment, India.

Metrics and Evaluation: Certifications of superior EHS performance ISO 14001: Environment Management System •

• •

All ITC Units and the four hotel properties owned by ITC (Maurya Sheraton, Mughal Sheraton, Chola Sheraton and Grand Maratha Sheraton) have obtained ISO 14001 certification for their Environment Management Systems. Kidderpore cigarette factory is the first cigarette factory in the world to get ISO 14001 certification. Leaf processing plants at Chirala and Anaparti are the first such units in the world to be

•

certified for ISO 14001. Maurya Sheraton & Towers at Delhi is the first ISO 14001 certified hotel in India.

OHSAS 18001: Occupational Health and Safety Management System • •

Kidderpore Cigarette factory certified for OHSAS 18001 in 2003–04. Leaf processing plants at Chirala and Anaparti already certified.

SA 8000: Social Accountability System • Leaf processing plants at Chirala and Anaparti have received this certification. o Several other units are in the process of being certified.

IndianOil Corporation (Oil & Gas) Principles CSR Overview: IndianOil Corporation has been an active founder-member of the United Nations Global Compact, an international initiative that brings companies together with UN agencies, labor and civil society to support universal environmental and social principles. IndianOil has included CSR in its Vision and Mission statement and has built its corporate strategies around it. Vision/Mission and the Philosophy regarding CSR: • IndianOil Vision: “A major diversified, transnational, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security& public distribution”. • IndianOil Mission regarding CSR: “To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.” • Apart from its Vision and Mission, IndianOil has a statement of obligations towards customers and dealers, suppliers, employees, community, and defence services. Major CSR Themes: IndianOil has been making contributions every year to national causes, social welfare and community development programmes throughout the country. The majority of these programmes focus on provision of drinking water & sanitation, health & family welfare, education, and empowerment of women and other marginalised groups in rural and backward areas.

Process CSR Programs: Community • The IndianOil Foundation: This is a non-profit trust set up to protect, preserve and promote national heritage monuments in collaboration with Archaeological Survey of India and the National Culture Fund of the Government of India. Among the monuments short listed by the foundation for adoption are Khajuraho, Konark, Hampi, Kanheri caves and Warangal Fort. Funded by IndianOil with an initial corpus of Rs. 25 crores and an annual recurring contribution of Rs. 10 crores, the IOF will adopt at least one heritage site in every state and union territory. • Providing Clean Drinking Water: Clean drinking water is a major requirement of a significant number of remote areas in India. IOC has constructed ring wells, tube wells, installation of hand pumps, overhead tanks with water pipelines in some remote areas of the country. Environment • IndianOil Corporation environmental initiatives includes: development of cleaner fuels such as diesel with low sulphur content and biodegradable lube formulations; pollution control program, in which all refineries are provided with facilities to control pollution from different sources; and ecological parks, which are scientifically designed green belts that have been developed at Gujarat Panipat refineries, to serve as a pollution sink and to enhance the aesthetic look of the refinery area. Education • The IndianOil Scholarship Scheme: Each year, 450 meritorious students from economically weaker sections of society pursuing 10+/ITI and professional courses in Engineering, Medicine and Business Administration/Management disciplines are awarded scholarships. Health • Providing Medical Care: To promote and improve health of communities neighbouring the operational areas, IOC runs child and maternity health centres. These activities are conducted with the active partnership of local communities. Equipment and ambulances have been provided to hospitals and Indian Red Cross Society to upgrade their facilities. • HIV: In 2004, IndianOil signed a Memorandum of Collaboration with the Bill and Melinda Gates Foundation to address the spread of HIV/AIDS in India. IndianOil has stocked and distributed condoms from its selected petrol stations, launched communication campaigns to create awareness, trained petrol station staff as 'Peer Educators' and offered space at petrol stations for setting up clinical services for truckers. ©Collage Article13 58

Financial Outlay: IndianOil Corporation investment in CSR (Rs crore):

Year 1999-00 2000-01 2001-02 2002-03 2003-04

Donations/ Contribution 23.44 36.05 10.60 13.46 16.15

Community Development 2.35 3.96 3.12 3.49 9.71

Total Rs crore 25.79 40.01 13.72 16.95 25.87

The budget allocation for a typical year towards IndianOil's social responsibility activities:

Organizational Support: “Indian Oil is committed to continue rendering support to the Global Compact Programme of the United Nations and will endeavour to abide by all the ten principles of the programme, some of which also are a part of our Vision and Mission Statements. Therefore, the company continues to pledge support to the programme through its policies, processes, products services and people.” V C Agrawal – Human Resource Director of IndianOil Corporation. Personnel Support: V C Agrawal is an electrical engineer from Indian Institute of Technology, Roorkee. He is the current HR Director of IndianOil and Managing Director of IBP. Outcomes Awards: • In February 2007, the Forum of Women in Public Sector (WIPS) conferred the Best Enterprise Award on IndianOil for the Corporation's pioneering efforts towards women development and related issues. • IndianOil’s Mathura Refinery won the National Energy Conservation Award for the year 2006. (These awards were instituted by the Ministry of Power in 1991 to promote energy conservation in all energy intensive industries). • IndianOil won the TERI Corporate Environmental Award 2002-03 in category III (companies with an annual turnover exceeding Rs. 500 crore). This was presented to IndianOil for installation of Flue Gas scrubbing (BELCO) system to treat flue gas from RFCC unit of Barauni Refinery to remove particulate matter and sulphur di-oxide. Metrics and its Evaluation: • Seven refineries and the IndianOilResearch & Development Centre at Faridabad have achieved the ISO ©Collage Article13

• • •

14001:1996 accreditation for Environment Management System. In 1998-99, the Salaya-Mathura Pipeline and the Koyali-Ahmedabad Pipeline became the first oil pipelines in the world to be accredited with ISO-14001 for Environment Management System. IndianOil’s Mathura Refinery has been certified for "Occupational Health and Safety Management System (OHSMS)" by DNV - the first refinery worldwide to receive this certification. Mathura Refinery is the first Refinery in Asia, and the third in the world in the Petroleum Sector, to be certified ISO-14001 for its efficient Environmental Management System.

Oil and Natural Gas Corporation Limited (Oil & Gas) Principles CSR Overview ONGC is playing an important role in strengthening India's corporate world with a tuned sense of moral responsibility towards the community of people where it operates and the country, according to the company. Vision/Mission and the Philosophy regarding CSR • Feel responsible not only for wealth creation but also for social and environmental good. • Abiding commitment to safety, health and environment to enrich quality of community life. • Imbibe high standards of business ethics and organizational values. Major CSR Themes Based on the guidelines of the corporate citizenship policy, the company promotes education, healthcare and entrepreneurship in the community and support water management and disaster relief in the country.

Process CSR Strategy An approach to business that exemplifies transparency and ethical behavior, respect for stakeholder groups and a commitment to add economic, social and environmental value. Conscious about its responsibility to society, ONGC has evolved guidelines for socio-economic development programs in areas around its operations all over the country. Community • Disaster Relief Management: The company provides immediate relief to disaster victims. It donated Rs. 8 crore towards cyclone relief in Nimpada, Rs. 7.5 crore for Gujarat earthquake victims and Rs.15 crore for Kargil war relief to the Prime Minister’s Relief Fund. ONGC employees also contributed one day’s salary in all such disaster cases. • PURA – Providing Urban Amenities to Rural Areas This program has four focus areas – physical, electronic, knowledge and economic. Building up a system for management of schools, healthcare units, vocational training centers and also a market, banking system and regional industrial units. It has extended PURA to Tripura, Assam, Nagaland, Andhra Pradesh, Maharashtra and Gujarat. • Promotion of Sports and Culture The country promotes sports such as cricket, football, tennis, chess, golf, athletics, shooting and snooker. Currently there are more than 150 sports persons on its roll and nearly 50 players are paid a stipend by ONGC. The company spends around Rs 10 crore on sports promotion. It is also associated with All India Football Federation to facilitate promotion of football in the country. • Safety: The Institute of Petroleum Safety, Health and Environment management (IPSHEM) was set up in 1989 with an objective of improving safety, health and environment standards in the petroleum industry. • ONGC launched a “Green Movement” to promote afforestation. It has also secured land-fill sites, undertaken bio-remediation jobs, and carried out assessment studies for crop damage. Environment • Company’s Environment Policy: The company believes that its development activities should be planned on sound ecological principle and must incorporate appropriate environmental safeguards. • Water Management Projects: “Project Saraswati” was envisaged to provide a sustainable solution to ground water resource management in north west Rajasthan. Outcomes Education • The company offers scholarships to SC/ST students pursuing higher studies. It has contributed for the setting up a Science Centre in Agartala and a Center for Research in Pertroleum and Biotechnology at Assam. ONGC also takes pride in promoting Sarva Shiksha Abhiyan of Government of India along with computerbased training in schools.

Health • Healthcare and Family Welfare Various medical research centers in the country such as Sankara Nethralaya, Chennai are deriving support from ONGC. ONGC gives grants to Latika Roy Memorial Foundation for running a school for the mentally challenged. Medical camps are organized serving more than 10,000 patients in the vicinity of operations areas annually and more than 300 patients obtain IOL implants done for free of cost. More than one lakh children have been immunized for polio through the active participation of the organization in setting up polio clinics. Organization Chart

Note: The CSR initiatives in the company will be headed by the person heading the corporate communication team.

Organizational and Personnel Support • Dr. Ashok Kumar Balyan, joined the Board of ONGC as Director (Human Resources) on August 23, 2003 and is currently responsible for formulation and implementation of policies in tune with the strategies of ONGC. He is actively leading the continuous change journey of ONGC called “Corporate Rejuvenation Campaign.” Financial Outlay Since 2003, ONGC decided to allocate 0.75% of net profits of the previous year towards Social and Economic Development programs every year, with 60% of its grants directed towards Corporate programs while the rest is aimed at programs in operations and work centers.

Outcomes Awards: 2006 • ‘Golden Jubilee Award for Corporate Social Responsibility in Emerging Economies – 2006.’ • TERI Corporate Award for Corporate Social Responsibility in recognition of its corporate leadership for good corporate citizenship and sustainable initiatives. 2005 • ‘Golden Peacock Global Award for Excellence in Corporate Governance among State-owned Companies in Emerging Economies,’ from the World Council for Corporate Governance, UK. Metrics and Evaluation • ONGC has all its operational facilities certified for Quality, Occupational Health& Safety and Environment Management (QHSE) based on ISO 9001, OHSAS 18001, ISRS and ISO 14001. The company has also set up a School of Maintenance Practice to promote safety in operations. ©Collage Article13

DLF (Real Estate) Principles CSR Overview DLF is committed to play a key role in performing its social obligations by adhering to the specified norms of legal, environmental, and ethical practices. Vision/Mission and the Philosophy regarding CSR: The group is committed to contribute and associate with worthy and humanitarian causes that affect people. Major CSR Themes: DLF’s major CSR focus is on the welfare of masses.

Process CSR Programs Community: • Fire drill: The group, in association with Haryana Fire Services organized a ‘Fire Safety Drill’ on April 20, 2005 at the DLF City Centre Mall. It was organized with the help of fire services department to create awareness among Gurgaon’s residents. • DLF & Electrolux: The companies partnered to organize a four-day self-defense program for women called ‘Electrolux Femme Force,’ in Delhi and the NCR regions. • Safety and Security Exhibition: The company along with DLF City residents, Gurgaon, organized an exhibition to create awareness among the residents and highlight various measures that need to be undertaken to ensure utmost safety. • DLF sponsored two One-Day International cricket matches between India and Pakistan, held on April 18 and 19, 2006, the proceeds of which were used to help people affected by the earthquake in the Jammu and Kashmir region. Education: The group has opened Summerfield School in Gurgaon, with the objective of all-round development of pupils in terms of physical, social, emotional, and intellectual growth. Personnel Support Dr. Vijay Vancheswar (Vice President, Corporate Communication) and Shalini Wadhawa (Chief Corporate Communication Manager) overlook the company’s CSR initiatives.

Wipro(IT) Principles CSR Overview: Wipro believes that value creation for shareholders is necessary, but not the sole purpose of its existence. Wipro idea of corporation is that it is not a machine, but a social system of people coming together to make life better, for themselves and for the world. Wipro business and initiatives are driven by the idea of creating value for all its stakeholders – shareholders, community, employees and customers. Vision/Mission and the Philosophy Regarding CSR: Wipro believes in two fundaments that have guided its engagement: “One, Wipro is a socio-economic citizen. Two, if you can do good, you must.” Major CSR Theme: Instead of creating support, such as roads, hospitals and institution, Wipro decided to invest in one big area that could create significant social impact. Wipro has chosen Education as its CSR investment. It has been developing two initiatives: Wipro Applying Thought in Schools and Wipro Cares. Process CSR Programs: Community • Employees: Wipro has a strong program of People Development. It has been developing employees’ competencies through programs that range from induction training to leadership development Environment • Energy conservation is a consistent focus area for Wipro both from a cost control and a social responsibility perspective. Strict control and monitoring of usage and maintaining quality standards resulted in efficient power consumption. Education • Wipro Applying Thought in Schools: This initiative is aimed to rekindle the spirit of curiosity in children, in order to develop critical, creative and caring citizens. The project ranges from training programs for teaches and principals to concerted efforts for transforming entire schools. It started in 2001 and it has reached over 4,500 teaches and principals from 241 schools in 4 states. • Wipro Cares: The two aims of this initiative are: to provide rehabilitation to the survivors of natural calamities and to enhance learning abilities of children from the under privileged sections of the society. Financial Outlay: Wipro invested Rs 3 crore in education programs in 2002. Organizational Support: Wipro has a strong organizational and personnel support. Its Chairman Azim Premji has launched his own Foundation – Azim Premij Foundation – with a focus on universalization of education. Wipro initiatives strive for education quality. Personnel Support: “Top management is indirectly involved in our programs. Mr. Premji [Wipro Chairman] himself and a few top management people are actively involved in our social programs. Their management insights and experience add significance to our programs.” Vijay Gupta – Head Corporate Communication, WIPRO

Outcomes Awards: • In 2003, Wipro received a certificate of honor from the BusinessWorld FICCI-SEDF Corporate Social Responsibility Award for its contributions in the field of CSR.

Metrics and its Evaluation: â&#x20AC;˘ To evaluate its CSR programs, the Corporate Executive Committee has quarterly review meetings on all issues related to social initiatives.

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Infosys (IT) Principles CSR Overview: Social responsibility is considered an important part of Infosys value system. Since 1996, when the Infosys Foundation was established, Infosys has invested Rs 50 crore on CSR programs. Vision/Mission and the Philosophy Regarding CSR: Infosys Foundation, the philanthropic arm of Infosys Technologies Ltd., came into existence on December 4, 1996. Its main objective was to fulfill the social responsibility of the company by supporting and encouraging the underprivileged sections of society. Major CSR Themes: Infosys Foundation has implemented projects in four key areas: Healthcare; Social Rehabilitation & Rural Upliftment; Learning & Education; and Art & Culture. Apart from the Foundation, Infosys Technologies develops programs in the area of environment, health and safety (EHS).

Process CSR Programs at Infosys Foundation: Community • Social Rehabilitation and Rural Upliftment: The Foundation has been working on initiatives such as: training destitute woman in tailoring and donation of sewing machines and material to them to improve their livelihood; counseling centers to rehabilitate marginalized devadasis in North Karnataka; relief work conducted after natural disasters; donation of aid equipment to the physically challenged in rural areas of Karnataka; and construction of orphanages in rural areas. • Art and culture: The Foundation works towards the preservation of the Indian cultural heritage and the promotion of artists in rural areas. The programs include the revitalization of art of the weavers of Pochampalli village in Andhra Pradesh and of, painters, poets and musicians in rural areas. Education • Programs include Library for Every Rural School Project, in which the Foundation has set up more than 10,150 libraries in rural schools; distribution of scholarships to poor students across Karnataka; donations for reconstruction of old schools; distribution of computer educational books translated into Hindi, Tamil and Telugu in rural areas; and construction of a science center at a rural school in the Kolar District of Karnataka. Healthcare • Infosys Foundation has been investing in healthcare initiatives that benefit both urban and rural poor. These initiatives include the construction of hospitals, such as the Infosys Super-specialty Hospital in Pune and donations of ambulances, medicines and high-tech equipment to hospitals and community. CSR Programs at Infosys Technologies: Community • Employees – Health and safety: Employees are encouraged to report workplace hazards and incidents to the concerned officials and contribute to implementing solutions. Infosys implemented health clubs and health programs, such as health week, nutrition programs and ergonomics training. It also implemented safety programs to improve awareness about precautions and measures to improve road and personal safety. Environment • Infosys has been adopting energy conservation and efficiency programs, such as the use of its own generation units. The Company also has programs for conservation of paper and water and waste management.

Financial Outlay: Infosys Foundation grants in CSR :

Infosys Foundation Grants 16

Rs Crore

13.25

12 10 8 6 4

5.53 3.75

2 0

2002

2003

2004

2005

2006

Organizational Support: The CSR activities are implemented by the Infosys Foundation. Infosys Technologies develops internal initiatives. Personnel Support: Sudha Murthy, wife of Naryana Murthy, the chief mentor of Infosys is a trustee and chairperson of the Infosys Foundation. She has a ME Electrical degree from the Indian Institute of Science, Bangalore. She began her career as a Development Engineer with TELCO and later taught Computer Science to B.Sc and MCA students at a reputed college under Bangalore University. Ms Murthy has received several awards for her philanthropic activities. Outcomes Awards: • Infosys Foundation was awarded the Economic Times Corporate Citizenship Award (2001). It received the award “for doing pioneering work in poverty alleviation, education and health, all over rural India.” • Infosys was quoted as the 'Best Company to Work for In India 2005' by the BT-Mercer-TNS survey published in ‘Business Today.’ Metrics and its Evaluation: Infosys Technologies evaluation on Environment, Health and Safety initiatives: • Infosys programs on environment are being evaluated through the Ozone initiative, in which Infosys Environmental Management System (EMS) is subject to third party surveillance audits. In 2005, it was found to conform to the EMS Standard ISO 14001:2004. • Infosys has commenced the process for OHSAS 18000 – an international occupational health and safety management system specification – certification in 2006.

Appendix: Details of the Survey A survey was conducted among students and Human resource consultants to gather the perception of students and see if CSR plays an important role for an employee while s/he is choosing a company. A total of 97 students were surveyed and their opinions were incorporated in the study. Colleges Surveyed Faculty of Management Sciences, University of Delhi Delhi School of Economics St. Stephen, University of Delhi Kirori Mal College, University of Delhi Hindu College, University of Delhi Ramjas College, University of Delhi Sree Ram College of Commerce, University of Delhi Sri Venkateshwara College, University of Delhi Random Colleges

Number of Respondents 11 12 8 9 12 10 16 9 11

Name of the consultant Shwetabh Jha Ajith S.N

Company Gallup Eicher Consultancy Services

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Appendix 2: Summary of Student Questionnaire Results

Q1: W hat are the parameters on w hich you w ould choose a company for employment? Co mp any's lo cat io n and benef it s t hey pro vid e

Parameters for choosing company

Co mp any's p rod uct s or services Co mp any's sup po rt of t he communit y and enviro nment Co mp any's values Imag e of company (B rand name in t he market ) Jo b Descrip t io n Learning and Develo pment op po rt unit ies Prof it abilit y Salary

Num be r of re s pons e s

Question 2: How would you define CSR? Key themes emerging from definitions given: Improve company's image/ reputation Make shareholders happy Score political points Payback to society Demonstrating concern for society and its upliftment Not causing harm social harm when deciding on new ventures and projects Welfare of the community and environment Being sensitive to the environment around Playing its part in society as part of a long term vision Improve the conditions of the country the company is working in All round economic development Moral responsibility Ensuring sustainability of future profits Social responsibility to be fulfilled in exchange for social resources it uses Silver lining for companies having an inherent desire to do something to contribute to society Helping the less fortunate part of society Enhance their goodwill and increase their market share Responsibility to stakeholders Mutual relationship - society and company benefit Parameter for judging a company's performance and responsibilities Helps increase awareness of social and economic problems Employee facilities and benefits, e.g. breaks Improving education systems, lifestyle, poverty elevation Using influence and resources to create awareness and participate in or initiate programmes for social and environmental welfare Gain feel good factor from people Take into consideration ill effects of their actions on society at large Not profit making - 'indulged in' to fulfil responsibilities which lie on the educated, capable, well-off section of society Beyond legal obligation ÂŠCollage Article13

Well-measured approach to obtain more profits Instilling motivation among youth towards their social responsibility Doing good, and aiming to become a world player

Benefits of doing CSR

Q3: W hat do you think are the benefits (tangible and intangible) of doing CSR? A iming to become a w orld player Corporate reputation Doing good! Improved f inancial performance Increased ability to attract and retain employees Increased sales and customer loyalty Increasing accountability Management of risk Reduced operating costs Reduced regulatory oversight Satisfying grow ing investor pressure Satisf ying stakeholders 0

Num be r of re s pons e s

Q4: Do you think that in the Indian conte xt CSR is a part of the bas ic bus ine s s fram e w ork of com panie s ?

No answ er/not sure 3%

Y es 29%

No 68%

COMMENTS: (content analysis) YES - HOW? Number of Comments mentions Customer retention 1 Increasing profits 1 Enhancing performance 1 Rural development 1 Don't know 1 NO - WHY? Number of mentions Comments ÂŠCollage Article13

Companies only look at profits Fad to attract foreign investment Not many companies involved yet Doesn't include all aspects of CSR Not legally binding Lack of CSR knowledge Not seen as important Size/type of companies in India For show - cosmetic only Early stages of development Don't know

10 1 11 1 1 1 3 2 1 2 2

Q5: Would a high CSR involve m e nt of the com pany influe nce your de cis ion to join the com pany?

Not applicable/no answ er 5%

No 40%

COMMENTS: (content analysis) YES - HOW? Number of Comments mentions Respect, brand value, satisfaction Stronghold/future Catch attention Beneficial to society Essential NO - WHY? Number of mentions Comments Money matters Not inculcated in CSR ways ÂŠCollage Article13

Y es 55%

2 2 1 1 1

1 1 71

Too selfish CSR is cosmetic/for profits Decision depends on parameters in Q1

1 3 1

Q6: W ould you prefer to join a high ranked CSR involved company?

Not applicable/neutral 6% No 27%

Y es 67%

COMMENTS: (content anlaysis) YES Number of mentions Comments Good reputation = good profits 2 Better satisfaction 4 Preference 2 Perception that good to society means good to employees/salaries Learn integration of corporate work with social responsibility Reflects on company values/culture Duty to help in holistic development of the economy Brings public support Accountable to social good of society (more than profits) NO Comments Not priority for me

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1 3 1 1 3 Number of mentions 1

Profile of work (job description and salary) more important Doesn't make a good company/no difference

2 2

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IT C

ys In fo s

ut c H

er le v ni

in d

us t

er o

on da

re j

LF D

r ab u D

L N BS

sa ls An

rte Ai

ja j

50 45 40 35 30 25 20 15 10 5 0 l

Number of mentions

Q7: In your view w hich is the most "responsible" company/companies in India? (Figures based on numbers of mentions rather than ranking figures.)

Company

OTHER COMPANIES MENTIONED Number of Company Name mentions Tata 14 Procter and Gamble 1 Maeuiti 1 Reliance 1 Birlas 1

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Que s tion 8: What are the top of m ind is s ue s that corporate India ne e ds to tak e care of?

Top of mind issues

Community Uplif tment Human Rights Children/Women Health and Education Health Related (cancer, HIV ) Environment Education 0

Num be r of re s pons e s

Question 9: What are the top of mind CSR programmes that you can recall? Company/Programme Aashirwaad atta - water Birlas - educational institutions GE Elfin

HLL Shakti - primary education to rural kids under rural development Infosys - for education ITC e-chonpal Lifebuoy Swasthya Chetna Lupin - in Rajasthan Microsoft anti-AIDS programme Navneel - good to society by saving paper None - no examples given/Don't know

Number of mentions 1 1 1

12 2 38 2 1 1 1 46

Pepsi's water harvesting activity Project Shailesh

1 1

SI electronics - taking up are around the company for maintenance

Standard Chartered AIDS Awareness Programme TATA projects TERI TISS WIPRO

2 4 1 1 1

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