GCSR Assignments:-1, 2 ,3

SYBMITTED BY:-Manpreet Kaur(A30101909071)

GROUP A
Assignment 1. What do you understand by corporate social
responsibility and why company needs to address the same.

CSR is about how companies manage the business processes to produce

an overall positive impact on society.

Take the following illustration:

Companies need to answer to two aspects of their operations. 1. The quality of their
management - both in terms of people and processes (the inner circle). 2. The nature of,
and quantity of their impact on society in the various areas.

Outside stakeholders are taking an increasing interest in the activity of the company. Most
look to the outer circle - what the company has actually done, good or bad, in terms of its
products and services, in terms of its impact on the environment and on local communities,
or in how it treats and develops its workforce. Out of the various stakeholders, it is
financial analysts who are predominantly focused - as well as past financial performance -
on quality of management as an indicator of likely future performance.

Other definitions

• "Corporate Social Responsibility is the continuing commitment by business to

behave ethically and contribute to economic development while improving
the quality of life of the workforce and their families as well as of the local
community and society at large"
• CSR is about capacity building for sustainable livelihoods. It respects cultural
differences and finds the business opportunities in building the skills of
employees, the community and the government"
• A concept whereby companies decide voluntarily to contribute to a better
society and a cleaner environment. A concept whereby companies integrate
social and environmental concerns in their business operations and in their
interaction with their stakeholders on a voluntary basis".

Different organisations attach different meanings to Corporate Social Responsibility

(CSR). However, in most corporate discussions, corporate responsibility is applied to
three areas, namely economic, environmental and social development. Corporate social
responsibility translates into a single goal of doing business profitably, sustainably and
ethically.

• Economic responsibility simply refers to the profit-making business of the company.

However, in line with current thinking, maximising the profit or shareholder value
as the sole economic responsibility of the company is now a highly debatable issue.
It also implies cooperation with other market players while maintaining the
expectations of the shareholders.

• Environmental responsibility refers to the continuous management of the

environmental impact of a company’s operations. This means that a business needs
to be run in such a way that the provision of products and services does not increase
pollution and environmental degradation. Many companies succeed in managing or
balancing the environment with its business objectives.

• Social responsibility constitutes a new strand of corporate responsibility. This refers

to taking care of the different expectations of a diverse group of internal and
external stakeholders – shareholders, employees, customers, suppliers, the
community and other interest groups that comprise civil society. Importantly, it also
raises a company’s moral obligation to behave ethically when dealing with the
 stakeholders. Today, corporate citizenship, new corporate ethics and transparency
agendas have become the new buzzwords for corporate sustainability, which form
part of the expectations of stakeholders in building a better society.

WHY COMPANY NEED TO ADRESS THE SAME

Failure to pay heed to CSR can dramatically impact a company’s reputation and even its
value. Multinationals such as Royal Dutch/Shell Group, Dow Corning Corp., Coca-Cola
Co., and Nike Inc. have taken hits to their reputations for failing to stay ahead of their
stakeholders’ expectations. At Wal-Mart Stores Inc., CEO Lee Scott recently apologized
publicly for letting the reputation of the company be sullied by questionable hiring
practices. “For a bottom-line company like Wal-Mart, that was a significant step,”
observes Bruce K. Packard, a corporate attorney at Dallas-based law firm Davis Munck
P.C. who has advised several boards and audit committees concerning their codes of
social responsibility.As the profile of CSR has increased globally, numerous
governmental, non-governmental, and advocacy groups have joined the dialogue.

Several European governments are looking at regulatory approaches to CSR issues.

France, for example, has enacted a law requiring listed companies to report annually,
not merely on their financial performance, but on their social and environmental
performance as well. In addition, the United Kingdom requires pension funds to identify
social and environmental criteria relied upon in making investment decisions.
Moreover, the IIA–UK and Ireland recently issued a “Professional Issues Bulletin” on the
growing importance of CSR in organizations. The bulletin discusses issues and
challenges associated with CSR and how internal auditors can help their organization
address them.

Today, worldwide conferences such as the United Nations World Summit on

Sustainable Development proliferate. Groups such as Business for Social Responsibility,
a global nonprofit organization, help companies identify and manage their social
responsibility obligations. The recently published report by retail giant GAP Inc. on its
social responsibility activities attracted considerable and favorable media attention
worldwide. Indeed, social responsibility reporting by publicly traded corporations has
become an expected part of doing business on a global scale.
Assignment 2. Why sustainable development has become order
of the day.How companies are addressing the issue,
Sustainable development: a business definition

Sustainable development (SD) is a pattern of resource use, that aims to meet human
needs while preserving the environmentso that these needs can be met not only in the
present, but also for generations to come (sometimes taught as ELF-Environment, Local
people, Future). The term was used by the Brundtland Commission which coined what has
become the most often-quoted definition of sustainable development as development that
"meets the needs of the present without compromising the ability of future generations to
meet their own needs.

The concept of sustainable development has received growing recognition, but it is a new
idea for many business executives. For most, the concept remains abstract and theoretical.
Protecting an organization’s capital base is a well-accepted business principle. Yet
organizations do not generally recognize the possibility of extending this notion to the
world’s natural and human resources. If sustainable development is to achieve its potential,
it must be integrated into the planning and measurement systems of business enterprises.
And for that to happen, the concept must be articulated in terms that are familiar to
business leaders.

Why sustainable development has become order of the day

When planning a sustainable development project, in order to bring things back on track
environmentally, we need to rely more on renewable energy sources like wind
power and solar power. They are considered renewable because they are unlimited and
don't pollute, unlike fossil fuels, wood, etc. However, sustainable development isn't just
about the environment. It also provides steps for action that will create a better future for
those of us who live on this planet aside from environmental issues. When you take a look
at the bigger picture, sustainable development objectives include three interdependent
components:

• Social issues
• Economic issues
• Environmental issues

The concept of sustainable development arose from a number of environmental

movements in previous decades but it wasn’t actually defined until 1987 by the World
Commission on Environment and Development (also known as the Bruntland
Commission). They described sustainable development as ‘development that meets the
needs of the present without compromising the ability of future generations to meet their
own needs.’ This definition highlighted the importance of environmental, social and
economic factors when considering development. It also emphasised the need for the
elevation of poverty and a drive towards greater equality around the world, all within the
limits of the planet’s finite resources.
Why is sustainable development important? Since its conception in 1987 the world’s
nations have been discussing the need for greater sustainable development in all countries.
This need has arisen for the increase in environmental problems as a result of rapid
development since the Industrial Revolution. Many of the planet’s ecosystems are
degraded, species are threatened and global warming is becoming increasingly apparent.
To slow the damage caused by human development, it is essential that our actions become
more sustainable.
Within sustainable development there are two main streams, weak and strong
sustainability. Weak sustainability refers to the ability of social, economic and cultural
values to be substituted for environmental values. It can also be described in terms of the
replacement of natural capital with manufactured capital. In contrast strong sustainability
does not allow any substitution and requires the maintenance of existing natural capital as
manufactured capital cannot perform the necessary functions provided by nature.
Sustainable development is now a requirement of the Kyoto Protocol (KP), an agreement
signed and ratified by Australia and another 186 other countries around the world. The
Clean Development Mechanism (CDM), part of the KP, is available to Annex 2 nations and is
designed to facilitate sustainable development within new expansion projects. To assist
this process Annex 1 countries will share technology and expertise with less developed
countries to ensure their development becomes more sustainable. A CDM allows an Annex
1 nation to offset their carbon emissions by providing a more economical option within a
less developed State. Common examples of CDM are the installation of scrubbers in power
plants that reduce the amount of harmful emissions released into the atmosphere.
Issues for sustainability reporting

Economic Social Environmental

Profit Workplace: Energy use
Intangible assets . quality of Materials use
Investments management Water use
(including human . health and safety Emissions, effluents
capital and R&D) . wages and benefits and waste
Wages and benefits . non-discrimination Transport
Labour productivity . training and Suppliers
Taxes education Products and services
Community . child and forced Land use and
development labour biodiversity
(including jobs by . freedom of Compliance
type and country) association
Suppliers (including
compliance with Human rights
standards) Suppliers
Products and services Products and services

What should companies be doing to address the main

challenges of sustainable development?
Building on 15 years of tracking sustainable development expert opinions, research firm
GlobeScan has teamed up with think tank and consultancy, SustainAbility, to provide The
Sustainability Survey, the definitive annual poll of sustainability experts. This eBrief
outlines the inaugural survey’s summary findings of the views of these thought leaders on
topical issues such as the economic crisis, climate change, international development and
the role of companies.

Key findings include:

• Fresh water and climate change are the most pressing SD challenges

• Companies are better at addressing corporate accountability than environmental or social

challenges

• Partnerships are the most effective way to address SD challenges

• Investing in healthcare and education is the best way to address poverty reduction
challenges

Prioritizing SD Challenges
When rating the urgency of sustainable development challenges, the 2,238 expert survey
respondents highlighted fresh water shortages and climate change at top the list. Poverty,
loss of biodiversity, and food security are also rated as quite urgent challenges by the
experts. While water shortages and climate change are the most pressing issues, experts
think corporate strategies to tackle sustainable development are most effective when they
act on operational elements related to business processes, such as electronic waste
management or air pollution. Interestingly, effectiveness at addressing corporate
accountability for sustainable development was given the number one rating. While
companies are felt to be moderately effective in addressing climate change and toxin
management, experts are less certain about business’ ability to address many other SD
challenge
Approaches to Corporate Involvement in SD Challenges
To understand thought leader perspectives on how companies can best have a positive
impact on societal challenges, experts were asked to rate three possible approaches:

1. Deploying the companies’ core capabilities for social and environmental purposes

2. Supporting other actors such as NGOs, charities, and governments to make positive
contributions

3. Engaging in new types of partnerships that bring together governments, companies, and
civil society to tackle social and environmental challenge

Large companies are perceived make the most positive societal impact through
partnerships with government and civil society organizations designed to tackle social and
environmental problems. The partnership approach is slightly favored over simply
supporting NGOs and governments, or deploying the companies’ own capabilities.

Focus on Poverty
In relation to poverty reduction in developing countries, experts were asked how much
effort should be spent on ten distinct issues. These include greening urban areas,
government accountability and public policy, investing in infrastructure such as roads and
electricity, education and healthcare, support for climate change adaptation, and food
security through land management policies and farm productivity. The experts concluded
that effort should prioritize education and healthcare, strengthening governments and
eliminating corruption, empowering civil society to hold governments accountable in
public policy decision-making, and implementing land management policies that address
food security issues for the poor
Assignment 3. Take a company and explain what all issues the
company is addressing under CSR
HONDA:-
CSR AREAS
1. Community Welfare
2. Education
3. Employee Welfare
4. Environment
5. . Girl Child
6. Healthcare
7. Rural Development
8. Sports
9. Vocational Training

MAIN CSR ACTIVITIES

1. Vocational Training
2. Education
3. Community welfare

CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

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.

An Integrated Rural Development Centre has been set up on 40 acres of land along the
Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and
education facilities for both adults and children-now nurtures a vibrant, educated and
healthy community.

The Foundation has adopted various villages located within vicinity of the Hero Honda
factory at Dharuhera for integrated rural development. This includes:

* Installation of deep bore hand pumps to provide clean drinking water.

* Constructing metalled roads and connecting these 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 percent subsidy
on biogas plants.

Other key projects taken up by the Foundation include:

Raman Munjal Vidya Mandir

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55
students from nearby areas. It has now grown into a modern Senior Secondary, CBSE
affiliated co-educational school with over 1200 students and 61 teachers. The school
has a spacious playground, an ultra-modern laboratory, a well-equipped audio visual
room, an activity room, a well-stocked library and a computer centre.

Raman Munjal Memorial Hospital

Multi-specialty hospital equipped with the latest diagnostic and surgical technology.
The Raman Munjal Memorial Hospital provides healthcare to the rural population in
and around Dharuhera, and also caters to accident and trauma victims driving along the
Delhi-Jaipur highway.

Raman Munjal Sports Complex

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey
and football grounds are used by the local villagers. In the near future, sports academies
are planned for volley ball and basket ball, in collaboration with National Sports
Authority of India.

Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a Vocational
Training Centre. So far 26 batches comprising of nearly 625 women have been trained in
tailoring, embroidery and knitting. The Company has helped women trained at this centre
to set up a production unit to stitch uniforms for Hero Honda employees. Interestingly,
most of the women are now self-employed.

Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of
Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36
adults. Hero Honda 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.

Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by
the Foundation by providing financial help and other support to the families.
Rural Health Care
Besides setting up a modern hospital, the Foundation also regularly provides doorstep
health care services to the local community. Free health care and medical camps are now a
regular feature in the Hero Group's community outreach program