Corporate Social Responsibility The Human Resources Case

Agenda

What it CSR and how it has evolved

Why does CSR make sense for HR CSR at Lafarge - The status today CSR Going Forward : Opportunities in HR

Evolution of CSR

Charity

Philanthropy Corporate Citizenship CSR

Social Entrepreneurship

CSR has come along way

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Business Involvement With Communities

Merchant Charity All merchant communities had traditions of giving

Types of works supported Dharamshalas, pathsahalas, tree plantations, wells, tanks, marriages etc.

Corporate Philanthrophy : Golden Age 1857 - 1947

Industrialisation and amassing of Dynastic traditions in philanthropy- Tatas, Birlas, Mafatlals, Sriram etc.

wealth
Govt. encouragement Establishment of foundations.
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CSR Why it Makes Business Sense

"Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it... because it is good for our business" - Niall Fitzerald, Former CEO, Unilever

What CSR Isnt

It isnt CHARITY - Immediate distress relief to persons or communities It isnt PHILANTHROPY - Donations / Endowments It isnt PROFIT SHARING - Giving back to society It isnt a COST OF DOING BUSINESS

It isnt a TOOL of building community relationships

It isnt a GENEROSITY in a good financial year

What CSR Is : Sustainable Business Principles

Is built into the business operations - a way of doing business and not an add on activity Its totally aligned to the strategic objectives of the company Has a long-term road map not an ad-hoc activity Social Investment which creates tangible and measurable long-term shareholder value

We Need CSR Because

CSR at Lafarge The Status Today

CSR At Lafarge 2006-2008

EMPLOYABILITY HEALTH
59500 patients treated 13 villages covered 17 specialized health camps reach out to 5638 patients

EDUCATION

Computer Education 4922 students covered through computer literacy programs.

Mason Training : 118 youths trained across three locations Drivers Training: 101 trained Stitching classes: 209 girls attended Other Trainings : 130 trained.

RURAL INFRASTRUCTURE
Construction of school buildings Construction of classrooms School boundary walls

MISC
Drinking water supply through tankers in summers Plantation Toilets for BPL Families

Construction of Community Halls

Hand Pumps Construction of village roads/playgrounds/ pond deepening 10

Community Toilets
Cremation Sheds/Sports Events/Donations For Cultural Events, Fairs & Festivals

An Omnibus Approach

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CSR : The Human Resources Perspective

Where do we differentiate from others

How do we differentiate from others

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Who Are Our Stakeholders

2000

VPs
?

2000

Managers

LIPL

Factory
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Contract

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Adopt Gender Budgeting as CSR Measure

Dr Girija Vyas

Male population should also be sensitised on women issues for spreading gender equality

[New Delhi, 05 March 2009] Corporate houses should adopt gender budgeting as a CSR measure. Gender Budgeting provides a mechanism wherein 30-40% of corporate or ministerial budget is spent towards gender sensitization

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HR Becomes a Key Player in CSR

HR already plays an important role through recruitment and learning, says Jim Maurer, a partner with Grant Thornton LLP in Chicago. And that is only going to increase. The new generation of recruits wants to be part of a company that is socially responsible, and they want the opportunity to take part in socially responsible initiatives, he says. They expect companies to be socially responsible and they want to know what the company is doing in that area.
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Corporate Responsibility Can Be Profitable In June 2007, BusinessWeek National CSR Survey

The survey of 159 U.S. companies & 500 executives 75% + believe that corporate responsibility initiatives can enhance profitability, 77 % expect corporate responsibility to have a major impact on business strategies over the next several years.

Moreover, 64 percent of these executives felt that HR should take a leading role with social initiatives.

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HR Becomes a Key Player in CSR 19% of surveyed companies report having a single person in charge of all their CSR programs. 68% say they expect environmental responsibility reporting to be mandatory within the next five years 70% foresee increased government regulation for environmental responsibility in five years or less 62 percent believe that pressure to pursue CSR programs will come chiefly from consumers (45 percent) and investors (21 percent).

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HR Becomes a Key Player in CSR

64% believe that the HR department should take the lead on social programs,

while 5% say operations should be in charge of environmental initiatives

57% feel that finance should be responsible for economic responsibility programs

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HR Becomes a Key Player in CSR

The 3 greatest benefits of enacting corporate responsibility programs, executives said, were : Improve public opinion. Improve customer relations. Help attract/retain talent.

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Customer-Driven CSR at Sun Microsystems

Marcy Scott Lynn, CSR program manager with Sun Microsystems in Santa Clara, Calif., notes that the companys customers have been demanding greater CSR from Sun and their other vendors. Our customers demand a higher level of accountability with regard to social responsibility, she says.

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Sun Microsystems

The company publishes its monthly energy use and related carbon dioxide emissions for its major facilities and communicates the energy requirements of its various products.

The company electronically also publishes an Annual CSR Report

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HR Becomes a Key Player in CSR

64%

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Some CSR Examples

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Project Shakti

To create income-generating capabilities for rural women

Providing a range of mass-market products to the SHGs, which are relevant to rural customers

HUL provides on-the-job training in ensuring the stabilization of the womens fledgling businesses.
Armed with micro-credit, women from SHGs become directto-home distributors in rural markets
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E-Choupal Empowering Indian Farmers

6,500 e-Choupal internet centres spread across 40,000 villages Impacting 4 million farmers has emerged Provides them with farming know-how, weather information, price discovery Network for commodities leaving farms wheat, rice, pulses, soya, maize, spices, coffee, aqua-products. The reverse flow carries FMCG, banking and insurance services back to villages. e-Choupal is one of the top five alternative channels for LIC Policy sales
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E-Choupal Empowering Indian Farmers

e-Choupal States Covered Villages Covered No. of e-Choupals Farmers Empowered

No 10 40000 6500 4mill

Next 5 Years 15 100000 20000 10 million

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 CSR programs aligned to corporate strategy are not reckless, are not illogical and are not treehugging. They minimize risk, maximize opportunity and the world will reap the rewards.

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"Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it... because it is good for our business" - Niall Fitzerald, Former CEO, Unilever

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End of Document

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