Course

Corporate Social Responsibility

Goal:


To develop the knowledge base of students in developing sustainable corporate practices to address social responsibilities towards stakeholders.

OBJECTIVES


To sensitize students to social and environmental realities affecting business and its consequential impact on profitability and sustainability of the company To orient and update the students about the strategies used by business organizations to integrate CSR in their major business operations

Evaluation Criteria:
 Presentation:

20 Marks  Mid-term examination: 30 marks  Trimester-end Examination: 50 marks

COURSE OUTLINE
y

Global Development Scenario- Developed Nations v/s Developing and Under developing Nations Social issues directly impacting financial sector Role of financial institutions in achieving sustainability

COURSE OUTLINE
y

 

Millennium Development Goals and Business involvement to achieve the same. What are the responsibilities of Business Role of socially responsible investing

COURSE OUTLINE
 

Arguments for & Against CSR Typology of Stakeholders in Business and their importance Conceptual Clarity of CSR and paradigm shift in CSR Difference between Philanthropy and Strategic Philanthropy

COURSE OUTLINE
     

Generations of CSR Drivers for CSR Theories of CSR Approaches to CSR Class Activity: Case: Banco Real: Banking on Sustainability

COURSE OUTLINE


Responsibilities of Business at  Workplace,  Marketplace,  Environment &  Community

COURSE OUTLINE
 

Human Rights in Business Philosophical and legal foundations of human rights Peculiarities of specific cultures and minimum standards of human rights Relationship of civil and political rights vis-avis economic and social rights Violations of Human Rights in BusinessMarketplace, Land usage, R& D, Employment Practices etc & its implications Sexual Harassment at Workplace

COURSE OUTLINE


Strategies to Protect Human Rights by Business Integrating human rights in finance sector


Human rights responsibilities of financial institutions Economic crisis & human rights initiatives

COURSE OUTLINE
     

Corporate Governance Genesis & Conceptual Clarity International Developments Why an Imperative in India Role of SEBI, Clause 49 Governance for Unlisted Companies / Banks

COURSE OUTLINE


 

Role of Board & Responsibilities of Independent Directors Initiatives by RBI for strengthening corporate governance in banks Economic impact of corporate governance practices Class Activity: Case: Rogue Trader at Daiwa Bank

COURSE OUTLINE


   

Role of NGOs, Government & Cross sector Partnership Implementing , Monitoring, measuring and reporting CSR Strategies for implementing CSR Need for Monitoring & Measurement of CSR Monitoring Tools Global Sullivan Principles,

COURSE OUTLINE

 

OECD Guidelines,
UN Global Compact, Equator Principles Certifications in CSR- SA 8000, AA1000, ISO 14,0000 Rating Indices for Investors- Dows Sustainability Index, FTSE4, Global Reporting Initiative & Internal Reporting Social Investment & Impact of CSR on Investment

 

Evaluation
50% -- Internal 50% -- External (Trimester-end Examination)

Internal
 

Presentation: 20 Marks Mid-term examination: 30 marks

DOING GOOD
         

Corporate Citizenship Corporate Philanthropy Corporate Giving Corporate Community involvement Societal Marketing Community Relations Community Affairs Community Development Global Citizenship Corporate Social Responsibility

Common Phrases
Corporate Philanthropy Corporate Citizenship Corporate social responsibility

  

Corporate Philanthropy
Those activities that companies voluntarily undertake to have a positive impact on society, including cash contributions, contributions of products and services, volunteerism, and other business transactions to advance a cause or an issue Donating money and other corporate resources to social causes It may or may not tangibly benefit the organization in the long run

Corporate Citizenship


Corporate citizenship recognises that, apart from economic and financial responsibilities to its shareholders, a company has duties and responsibilities that come with being a member of a community in which it seeks a licence to operate.

Core principles that define the essence of corporate citizenship



Minimize harm. Work to minimize the negative consequences of business activities and decisions on stakeholders, including employees, customers, communities, ecosystems, shareholders, and suppliers. Examples include operating ethically, supporting efforts to stop corruption, championing human rights, preventing environmental harm, enforcing good conduct from suppliers, treating employees responsibly, ensuring the safety of employees, ensuring that marketing statements are accurate, and delivering safe, high-quality products.

Core principles that define the essence of corporate citizenship



Maximize benefit. Contribute to societal and economic well-being by investing resources in activities that benefit shareholders as well as broader stakeholders. Examples include participating voluntarily to help solve social problems (such as education, health, youth development, economic development for lowincome communities, and workforce development), ensuring stable employment, paying fair wages, and producing a product with social value

Core principles that define the essence of corporate citizenship

Be accountable and responsive to key stakeholders. Build relationships of trust that involve becoming more transparent and open about the progress and setbacks businesses experience in an effort to operate ethically. Create mechanisms to include the voice of stakeholders in governance, produce social reports assured by third parties, operate according to a code of conduct, and listen to and communicate with stakeholders.

Core principles that define the essence of corporate citizenship



Support strong financial results. The responsibility of a company to return a profit to shareholders must always be considered as part of its obligation to society. Corporate citizenship values are regarded as strategic assets supporting market trust and business networking.

Corporate Social Responsibility



Obeying the letter and spirit of the law; mitigating or remedying operational harm; and sustainable development of natural resources.

Corporate Social Responsibility



Achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment. Addressing the legal, ethical, commercial and other expectations society has for business, and making decisions that fairly balance the claims of all key stakeholders.

Corporate Social Responsibility



Companies that consciously integrate strategies that seek to maximize the creation of environmental and social value within their core business models, operations and supply chains.

DIFFERENCE
GOOD COMPANY Excellent Products & Services GREAT COMPANY Excellent Products/services & Makes the world a better place

Some Indicators of Natural Changes



2003 Europe Baking -- Mercury soared 5` C above normal and at least 35,000 people died in the heat-wave across western Europe. It was hottest August. 3 mile long ice berg noticed near South Island, New Zealand

An iceberg drifts off the coast ...

Some Indicators of Natural Changes



2004 Desert Snow snow fell over the UAE for the first time ever (Mountains of Ras alKhaimah near Dubai) Grass found on Antarctica

Desert Snow (Mountains of Ras al-Khaimah near Dubai)

Grass (Deschampsia Antarctica)

Some Indicators of Natural Changes



2005 Mumbai Deluge a whopping 942 mm of rains on July 26. Previous single-day record was 838 mm in 1912. US Stormed Katrina and Rita made it one of the worst hurricane seasons in North Atlantic.

Mumbai Flooding 2005

Hurricane Katrina

Some Indicators of Natural Changes



2006 Oz & Ashes Sydney had its hottest New Years Day with mercury hitting 45`C the previous warmest was 38.1 in 1928. Snowfall in Johannesburg. Europe in the grip of heat wave once again.

Wild fire outside Sydney

a rare snowfall in Johannesburg

Some Indicators of Natural Changes

  

2007 : 2.2-metre tidal wave hits Jakarta Half the city under water Due to climate change and excessive mining

Flooding as tidal waves hit Jakarta

Some Indicators of Natural Changes



2008 : Global Warming Puts the Arctic on Thin Ice The polar ice cap as a whole is shrinking. Images from NASA satellites show that the area of permanent ice cover is contracting at a rate of 9 percent each decade. If this trend continues, summers in the Arctic could become ice-free by the end of the century.

Global Warming Puts the Arctic on Thin Ice

2009 Typhoon in Taiwan

2009 Typhoon in Taiwan

Heat Wave


2010: The heat wave during the summer of 2010 was at its worst in June over the eastern United States, Middle East, Eastern Europe and European Russia, and over Northeastern China and southeastern Russia. June 2010 marked the fourth consecutive warmest month on record globally

2010 Floods in Pakistan and North India

Pakistan

Future


 

Bangladesh smaller and vanishing of countries like Maldives Deserts in Europe Penguins on thin ice and some species may disappear Mt. Kilimanjaro (Tanzania) Ice projected to disappear completely by 2020 Coral reef bleaching in Seychelles, Mauritius, Great Barrier Reef, Andaman and Lakeside Islands.

Low lying areas of Bangladesh

Europe

Turning into

Desert

Penguins on thin ice

Penguins on thin ice

Mt. Kilimanjaro -then

Mt. Kilimanjaro - Now

Coral reef

Coral reef bleaching

A comparison of the size of Grinnell Glacier. The top image was taken in 1911; bottom image was taken in 2000.

Icebergs from the rapidly moving glaciers of Disko Bay. (Green Land)

Dry lake during drought in Orlando Florida.

Impact on India


  

Warmer climates will result in lower rice and wheat yields. Increase in pest population. Many species of flora and fauna will become extinct. Shrinking of Himalayan glaciers Short term danger is floods and in the long term, rivers will turn into trickles. Rainfall could decline by 5 to 25% leading to droughts.

Indias Progress
 

 

Democratic Political System Development of Indian economy LPR to LPG Free Press and electronic media Mass calamities have been faced effectively Improvement in Standard of living

India Country Overview World Bank

With some 1.2 billion people, diverse regions, and a vibrant democracy, India has been making progress on a scale, size and pace that is unprecedented in its own history. In the nearly 60 years since its independence, the country has been successful on a number of fronts:

Overview
     

India has maintained electoral democracy Banished the specter of famines Reduced absolute poverty by more than half Dramatically improved literacy Vastly improved health conditions Become one of the worlds fastest growing economies with average growth rates of 8% over the past three years Emerged as a global player in information technology, business process outsourcing, telecommunications, and pharmaceuticals

Challenges
1. 2. 3.

Improving the Delivery of Core Public Services Making Growth More Inclusive Sustaining Growth

1. Improving the Delivery of Core Public Services



Education: While India has made huge progress in getting more children into primary school, learning outcomes have yet to make more headway.

1. Improving the Delivery of Core Public Services



Health: Although population growth has fallen below 2% per year due to declining fertility, there has been little improvement in maternal mortality. And, despite the fall in child mortality, these rates remain high as they are strongly related to child malnutrition where little progress has been made.

1. Improving the Delivery of Core Public Services



Infrastructure: Power networks, roads, transportation systems and ports are facing huge demands from Indias rapidly growing economy. But, shortages are eroding the countrys competitiveness and hurting the growth of labor-intensive enterprises, particularly export-oriented manufacturing which has the potential to absorb Indias fastgrowing working population.

2. Making Growth More Inclusive

Substantial disparities persist within the country: Disparities between urban and rural areas Prosperous and lagging states Skilled and low-skilled workers Inequality can have huge social costs, and evidence of social unrest in some disadvantaged regions is growing.

  

2. Making Growth More Inclusive

Agriculture:  Slow agricultural growth is a concern as some twothirds of Indias people depend on rural employment for a living.  Current agricultural practices are neither economically nor environmentally sustainable  India's yields for many agricultural commodities are low.  Poorly maintained irrigation systems and almost universal lack of good extension services are among the factors responsible.  Farmers' access to markets is hampered by poor roads, rudimentary market infrastructure, and excessive regulation.

2. Making Growth More Inclusive



Jobs: While the services sector has promising job opportunities for skilled workers, some 90% of Indias labor force remains trapped in low productivity informal sector jobs.

2. Making Growth More Inclusive



Lagging States: Faster economic growth has seen rising inter-state disparities. While Indias higherincome states have successfully reduced poverty to levels comparable with richer Latin American countries, its poorer states - Assam, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, and Uttar Pradesh - have not kept pace and are lagging behind their more prosperous counterparts.

3. Sustaining Growth
Maintaining high growth will also require attention to some basics:
  

Fiscal deficit Trade Deficit Ongoing Reform

3. Sustaining Growth


Fiscal deficit: While the country has improved its fiscal indicators recently, further improvements will be needed to reduce risks to fiscal stability and, more importantly, to create the space to fund the countrys large infrastructure needs and ambitious social development programs.

3. Sustaining Growth


Trade Deficit: The trade deficit is large and has widened due to high oil prices and increased non-oil imports. Nevertheless, Indias vulnerability to an external crisis remains limited due to its large foreign exchange reserves which touched almost US$ 285 billion on Jan 18, 2008 - its low levels of external debt, and buoyant exports of services.

3. Sustaining Growth


Ongoing Reform: Redoubling of reforms that address the basic constraints to growth is essential, as international experience shows that the recipe for slow growth is complacency about pushing ahead with reforms in times when growth is high.

Priorities
Public sector services reform Infrastructure Agricultural and rural development Labor regulations Lagging states HIV/AIDS Other strategic challenges

      

Public sector services reform:



Indias core public services such as healthcare, education, power, water supply and transportation need urgent improvement. This will require systemic reform of the public sector service providers, implementing effective systems of accountability to citizens, decentralizing responsibilities, and expanding the role of non-state service providers.

Infrastructure:


India needs to invest an additional 3-4% of GDP on infrastructure to sustain its current levels of growth and to spread the benefits of growth more widely. Although this will clearly require a government role, the relative roles of the government and private sector need to be defined. Policies that encourage competition can be strengthened.

Agricultural and rural development:



Raising agricultural productivity requires a return to investments in agricultural technology and infrastructure. Getting the rural economy moving will also require facilitating rural - non-farm entrepreneurship. The bright spot on the horizon is that the private sector is now looking at the rural areas as a potentially important market and is increasing its investments accordingly, thereby opening up new opportunities for Indian farmers. Encouraging policies that promote competition will also ensure farmers receive better prices.

Labor regulations:


Indias labor regulations - among the most restrictive and complex in the world - have constrained the growth of the formal manufacturing sector where these laws have their widest application. Better designed labor regulations can attract more labor- intensive investment and create jobs for Indias unemployed millions and those trapped in poor quality jobs. Given the countrys momentum of growth, the window of opportunity must not be lost for improving the job prospects for the 80 million new entrants who are expected to join the work force over the next decade.

Lagging states:


Lagging states need to bring more jobs to their people by creating an attractive investment destination. Reforming cumbersome regulatory procedures, improving rural connectivity, establishing law and order, creating a stable platform for natural resource investment that balances business interests with social concerns, and providing rural finance are important.

HIV/AIDS:


India has one of the largest numbers of HIV infected populations anywhere in the world. Although the prevalence rate is low, at less than one percent, it remains acutely at risk of a growing epidemic.

Other strategic challenges:

     

Adapting to increasing water scarcity Improving energy efficiency and ensuring adequate energy supplies Adapting to climate change which could impact India more than most countries Coping with accelerating urbanization through strengthened urban governance Protecting Indias fragile environment in the face of the rising pressures created by economic success Making India a driving force in technical innovation.

Key Development Indicators



GROWTH: Population Growth ( 2001- 2007) : 1.4% GDP Growth (2007- 2008): 9.0% GDP Growth (Govt. Estimates for 20082009): 7.1% Poverty (Below National Poverty Line) Rural: 28 % Urban: 26 %

Key Development Indicators

    

Fertility rate: 2.5 births per woman Life expectancy at birth: 64 years Infant mortality (per 1000 live births): 57 Maternal Mortality (per 100,000 live births):450 Children Underweight (below 5 years): 46%

Key Development Indicators

  

Primary school enrollment, net: 90% Male Adult literacy (age 15 and older): 73% Female Adult literacy (age 15 and older): 48% Access to improved water source (% of pop): 89% Access to improved sanitation: 33%

The INDIA you may not know

India


71% or 770 million people are below 35 years of age. Indians are young. 29 million people are born every year, 10 million die per year, population increase 1.8%. 90 to 94% drop out rate of children (including those who never went to school) between kindergarten and 10 + 2. India has 9,70,000 schools, China has 18,00,000.

India


6% or the ones that cross the 10 + 2 stage, (Educational Line of Control) which is our so called educated youth, go in for a regular college degree which may not be very relevant in todays context for the sake of employment generation and National GDP enhancement. 72% of all graduates from 15,600 colleges are Arts graduates. Balance 28% in Science, Commerce, Engineering, I.T., Medical, Law, Management and special subjects.

India


India has 372 universities, China has 900 & Japan has 4000. While 95% of the world youth between 15 to 35 years of age learn a vocation, a skill or a trade, with a choice of 2,500 vocational education & training (VET) programs, we in India have only identified about 71 trades, after 60 years of Independence and hardly 2% of the population goes for formal VET training!

India


India has 11,000 ITIs and VET schools, China has 5,00,000 senior secondary vocational education and training schools. We can get engineers in India but no carpenters, drivers, repairmen and other skilled personnel as per international standards! Information Technology, Software or I.T. is the only exception. Perhaps because of 50,000 or more I.T. training centers.

India

I.T. & Software is only 1.5% of the worlds GDP. Indias present share is about 5%. For rapid economic growth and employment generation we need to concentrate on the balance 95% of the Economy & Enterprise and make it world class.

India


300 million unemployed/employable age and only 45 million have actually registered with employment offices with little or no hope of getting employment (our estimates) Of all new employment generated, 1% are Government jobs, 2% are in the Organized Sector and the balance 97% in the unorganized sector. Out of our 430 million workforce, 94% work in the unorganized sector and about 6% in the organized sector.

India


1.7% of the entire population, viz. 18 million people work for the Central & State Government; another 9 million work in the private organized sector, total 2.6%. All the Labour Laws are made to protect, at any cost, the above 2.6% of the Indian population. Article 311 of the Indian Constitution needs revision since it over protects employees of the Government even at a cost to the nation.

India


While MPs, MLAs and Municipal Councilors and the village Panchayats, can only be elected for a maximum of 5 years, the officials, babus and government employees enjoy life long benefits of employment, in spite of performance. 600 million illiterate people based on the international definition of the 3Rs (reading, writing and arithmetic, education up to primary level) as per Government of India 63% literate. China is 93% literate.

India


The Indian definition of literacy, If you can write your name, you are literate; nobody has seriously ever challenged this definition! 260 million live below the Government of Indias definition of Poverty Line of Rs. 11 (Rural) and Rs. 14 (Urban) per day! (based on being able to buy enough rice and wheat from Public Distribution System/Ration Shops, which has food value of 2200 K Cal. Per day).

India


Nobody has ever challenged this definition of Poverty Line. How can one expect people to live with a few kilos of raw uncooked wheat or rice? As human beings dont we need more? How about one set of clothes to cover our bodies, a set of chappals for our feet, some vegetables, milk & fruit, in our diet? How will we cook without any energy and fuel?

India


450 million live below the poverty line definition of the World Banks old definition of @ US$ 1 per day per person, or US$ 365 per year. 700 million people below the poverty line definition of the World Banks new definition of @ US$ 2 per day per person, or US$ 730 per year.

India


Average per capita of an Indian is about US$ 600 per year per person (l.07 billion people and a GDP of US$ 648 billion). Average earning of an Indian is US$ 1.65 per day. India has only 1.72% of the World GDP and is 17% of the world population. Demands are high but buying power is low. Hence we will need to increase our export related activities by 10 times, as the foreign markets are 60 times bigger than the Indian market. Our share of world markets or foreign trade is 0.8%, down from 33% 1000 years ago, down from 27% when the British landed in India and down from 3% in 1947.

India


Only 5% of Indians understand English, yet most websites of the Government of India, State Governments and Public Institutions are in English! While English is a language used in countries which account for about 40% of the world GDP, viz., USA + UK + old British Colonies, yet in India while we talk of Globalization, we are not serious to learn the other languages of the world, e.g., Japanese, German etc., unlike the Chinese youth who are doing otherwise.

India


India is probable at the bottom of the heap, as far as the human development index is concerned such as infant mortality, child care, malnutrition, health, clean water etc.

India


Democracy is to the people, for the people, by the people. If we have to succeed the Citizen has to get involved and participate in Governance.

India


Unlike other countries, we have 18 official languages, 4,000 dialects, all the religions of the world and because of low human and economic development, emphasis on SC, ST, Dalits, caste, religion, sect, minorities, region, ethnic groups etc.

India


Employment generation is restricted due to existing policies, which do not encourage Labour Intensive enterprises. Relevant Labour Reforms in line with prevailing practices in other countries of Asia are required for a level playing field for Indian Organizations.

India


The size of Enterprises cannot be decided by officials in the Central Government. They are decided by technology, process, international market forces and competitive pressures. Reservation for Small scale Industry, needs to be scrapped and SMEs should be encouraged. SSIs are 7% of the Indian GDP. 99.7% of all organizations in the world are SMEs. 90% of the Indian GDP is SME. To understand the meaning of E in SME.

India


As per www.loksatta.org about Rs. 2,200 crores are spent every day, at the Central and State level, both on revenue as well as capital account in order to Govern INDIA. To improve Governance we need to ensure +95% of Literacy, a large number of active Citizen Groups and maximum use of The Right to Information Act!

The World

Poverty


Living below a minimum level of income, such as a $ 1 per day per person, often defines poverty.

However, poverty is also lack of:

    

Food Shelter Health Education Influence over decisions that affect ones life

Our Planet


Of the 6 billion people on our planet, 3 billion live in developing countries in conditions that fit those definitions of poverty

The World
 

Today more than 2.9 billion people nearly half of the worlds population are under the age of 25 And one child dies every 5 second from hunger and related causes

The World


Over next 25 years, 1.5 billion people will be born in poor countries; only 50 million people will be added to rich countries

The World
 

Some 186 million adults and 88 million young people aged 15-24 are unemployed. Yet 184 million children aged 5-17 are in the labor market.

But there is hope

The World
 

Over the past 30 years, adult illiteracy in the developing world has nearly halved. The number of people living on less than $1 a day fell even as the worlds population grew by 1.6 billion over the past 20 years.

The World


Over the last decade economic growth in the developing world has outpaced that in the developed countries.

Just a Comparison


A child born in the top 20 countries can expect to live at least 80 years, but if she or he happens to be born in one of the bottom 20 countries, on average life expectancy is only 49 years.

Just a Comparison


In countries with the highest life expectancies a child born today can expect to live twice as long as child born in Swaziland or Zambia the countries at the bottom of the worlds life expectancy ranking.

Just a Comparison


In countries at the top end of the Human Development Index ranking, virtually all adults can read and write but in some countries close to the bottom more than two in three adults are illiterate

Just a Comparison


Adult literacy levels among the top 20 countries are, on average double those in the bottom 20 (99 versus 46 per cent) and enrolment ratios are on average more than double (93 versus 43 per cent)

International Efforts

Domestic Efforts