CSR Project On Insurance

CSR BY INSURANCE COMPANIES
EXECUTIVE SUMMARY
Corporate Social Responsibility is achieving commercial success in ways that

honor ethical values and respect people, communities and the natural
environment.
This project shows the positive outlook of Indian insurance companies towards
CSR. With more and more companies taking initiatives for betterment of the
society.
The law on mandatory CSR has already made its impact and it's heartening to see
that a large percentage of insurance companies are leveraging their internal
expertise in trying to make a positive social impact and some are even
transforming their product and services to account for social and environmental
factors.
However, as with any research, it's hard to know whether what the companies
claim and what they action are necessarily the same thing.
This project shows who the leading stars are in the Indian CSR space in the
insurance sector. The study shows the polices adopted by insurance companies in
relation to their corporate social responsibility.
But companies still have a long way to go in terms of disclosure, stakeholder
engagement and sustainability.
RESEARCH METHODOLOGY
Objective of the study
This project has been conducted with a variety of important objectives in mind.
The objectives of doing this project are:
To study the concept of Corporate Social Responsibility by Insurance
companies.
To evaluate the different methods of Corporate Social Responsibility.
To analyze the various activities of insurance company.
To know major players of insurance sector involved in Corporate Social
Responsibility.
Sources of data
Primary data:
Primary data is the data which is collected from the surveys, personal
interactions, etc.
Secondary data:
The secondary data is the data which is collected from books, periodicals,
newspapers, magazines, articles, etc.
The contents of this project are purely based on secondary data. The data is
gathered from various sources like various websites, periodicals and reference
books.
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LIMITATIONS OF THE STUDY
The time given for preparing the project was limited to cover the topic in full
detail.
University has imposed limitations on maximum pages due to which every
topic cannot be explained in full detail otherwise more concepts of this topic
would have been elaborated.
We do have much information on insurance but the practical functionality
has not been experienced. So the project is more based on theoretical
concepts as compared to practical implementations of the concepts.
The actual effect on the society of the Corporate Social Responsibility By
Insurance Companies cannot be measured.
INTRODUCTION OF INSURANCE
Insurance is form of the contract between insurer and insured. Insurance is the
equitable transfer of the risk of a loss, from one entity to another in exchange for
payment. It is a form of risk management primarily used to hedge against the risk of a
contingent, uncertain loss. An insure r, or insurance carrier, is a company selling the
insurance; the insured, or policyholder, is the person or entity buying the insurance
policy. The amount of money to be charged for a certain amount of insurance
coverage is called the premium. Risk management, the practice of appraising and controlling
risk, has evolved as a discrete field of study and practice. The transaction involves
the insured assuming a guaranteed and known relatively small loss in the form of
payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the
insured in the case of a financial (personal) loss. The insured receives a contract,
called the insurance policy, which details the conditions and circumstances under
which the insured will be financially compensated.
Insurance involves pooling funds from many insured entities (known as exposures)
to pay for the losses that some may incur. The insured entities are therefore protected from
risk for a fee, with the fee being dependent upon the frequency and severity of the event
occurring. In order to be an insurable risk, the risk insured against must meet certain
characteristics. Insurance as a financial intermediary is a commercial enterprise and
a major part of the financial services industry, but individual entities can insure
through saving money for possible future losses.
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Insurance allows individuals, businesses and other entities to protect themselves

against significant potential losses and financial hardship at a reasonably affordable
rate.
Insurance is appropriate when you want to protect against a significant monetary
loss. If the potential loss will have a detrimental effect on the person or entity,
insurance makes sense.
OVERVIEW OF INSURANCE INDUSTRY
The insurance industry of India consists of 52 insurance companies of which 24 are

in life insurance business and 28 are non-life insurers. Among the life insurers, Life
Insurance Corporation (LIC) is the sole public sector company. Apart from that,
among the non-life insurers there are six public sector insurers. In addition to these,
there is sole national re-insurer, namely, General Insurance Corporation of India.
Other stakeholders in Indian Insurance market include agents (individual and
corporate), brokers, surveyors and third party administrators servicing health
insurance claims.
Out of 28 non-life insurance companies, five private sector insurers are registered
to underwrite policies exclusively in health, personal accident and travel insurance
segments. They are Star Health and Allied Insurance Company Ltd, Apollo Munich
Health Insurance Company Ltd, Max Bupa Health Insurance Company Ltd,
Religare Health Insurance Company Ltd and Cigna TTK Health Insurance
Company Ltd. There are two more specialized insurers belonging to public sector,
namely, Export Credit Guarantee Corporation of India for Credit Insurance and
Agriculture Insurance Company Ltd for crop insurance.
The insurance industry has also seen its reputation tarnished by scandal. AIG was
accused of bid rigging, accepting contingent commissions and reporting
misleading financial figures. The Equitable Life scandal in Great Britain caused
thousands of policyholders who invested in annuities to lose billions. There was
the collapse of HIH Insurance, a failure caused by under pricing, reserve problems,
false reports, reckless management, incompetence, fraud and greed.
Cases like these have left the impression that unethical behavior is characteristic of
the industry. Unfavorable media coverage has shaken stakeholder confidence and
raised suspicion.
The insurance industrys reputation suffered a setback from the global financial
crisis. Although most insurers were relatively unscathed compared to the banking
sector, some leading insurers, such as AIG, Fortis (a Belgian insurance group) and
Argenta (a Lloyds of London syndicate), were let down by their non-insurance
operations. Despite the performance of the industry on the whole, trust in insurers
deteriorated.
During a crisis, an insurer needs to demonstrate that it is more than just a profitgenerating, abstract entity. It is important for insurers to emphasize the vital role
they play in economic and societal development. CSR measures implemented in
good timesand in badwill improve the industrys reputation and reinforce
stakeholder relationships. These two outcomes, in turn, can increase loyalty and
sales.
INTRODUCTION TO CSR
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The roots of CSR lie in philanthropic activities (such as donations, charity, relief
work, etc.) of corporations, globally, the concept of CSR has evolved and now
encompasses all related concepts such as triple bottom line, corporate citizenship,
philanthropy, strategic philanthropy, shared value, corporate sustainability and
business responsibility.
Corporate social responsibility (CSR) refers to a business practice that involves
participating in initiatives that benefit society
"Sustainability isn't just important for people and the planet, but also is vital for
business success," said Maw. "Communities are grappling with problems that are
global in scope and structurally multifaceted Ebola, persistent poverty, climate
change. The business case for engaging in corporate social responsibility is clear
and unmistakable. Billions are at stake if fast and large-scale action is not taken."
As consumers' awareness about global social issues continues to grow, so does the
importance these customers place on CSR when choosing where to shop.
"Technology has brought global connectivity and enabled advocacy and awareness
for social situations that were once obscure," said Alexis Magnan-Callaway, whose
fashion company Pax Cult donates 10 percent of its profits to an organization of
the customer's choice. "Millennials are redefining what it means to connect and
give back through this technology. It's not just about having a recycling program or
sustainable products. People want to feel good about what their dollar is doing."
A company's CSR strategy is a big factor in where today's top talent chooses to
work.
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"The next generation of employees is seeking out employers that are focused on
the triple bottom line: people, planet and revenue," Cooney told Business News
Daily.
Corporate Social Responsibility is an integrated combination of policies,
programs, education and practices which extend throughout a corporations
operations and into the communities in which they operate.
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.
Corporate Social Responsibility is achieving commercial success in ways that
honor ethical values and respect people, communities and the natural
environment.
Corporate Social Responsibility is a way of integrating the social, economic and
environmental imperatives of business activities. The term corporate Citizenship
denotes the expert to which business meet the legal, ethical, economic and
voluntary responsibilities placed on them by their stakeholders. Its all about how
companies voluntarily manage the business processes to produce on overall
positive impact on society.
From the above definitions, it is clear that:
The CSR approach is holistic and integrated with the core business strategy for
addressing social and environmental impacts of businesses.
CSR needs to address the well-being of all stakeholders and not just the companys
shareholders.
Philanthropic activities are only a part of CSR, which otherwise constitutes a much
larger set of activities entailing strategic business benefits.
THE PHASES OF CSR DEVELOPMENT IN INDIA
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The history of CSR in India has its four phases which run parallel to India's
historical development and has resulted in different approaches towards CSR.
First Phase
In the first phase charity and philanthropy were the main drivers of CSR. Culture,
religion, family values and tradition and industrialization had an influential effect
on CSR. In the pre-industrialization period, which lasted till 1850, wealthy
merchants shared a part of their wealth with the wider society by way of setting up
temples for a religious cause. Moreover, these merchants helped the society in
getting over phases of famine and epidemics by providing food from their
godowns and money and thus securing an integral position in the society. With the
arrival of colonial rule in India from the 1850s onwards, the approach towards
CSR changed. The industrial families of the 19th century such as Tata, Godrej,
Bajaj, Modi, Birla, Singhania were strongly inclined towards economic as well as
social considerations. However it has been observed that their efforts towards
social as well as industrial development were not only driven by selfless and
religious motives but also influenced by caste groups and political objectives.
The Second Phase
In the second phase, during the independence movement, there was increased
stress on Indian Industrialists to demonstrate their dedication towards the progress
of the society. This was when Mahatma Gandhi introduced the notion of
"trusteeship", according to which the industry leaders had to manage their wealth
so as to benefit the common man. "I desire to end capitalism almost, if not quite, as
much as the most advanced socialist. But our methods differ. My theory of
trusteeship is no make-shift, certainly no camouflage. I am confident that it will
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survive all other theories." This was Gandhi's words which highlights his argument
towards his concept of "trusteeship". Gandhi's influence put pressure on various
Industrialists to act towards building the nation and its socio-economic
development. According to Gandhi, Indian companies were supposed to be the
"temples of modern India". Under his influence businesses established trusts for
schools and colleges and also helped in setting up training and scientific
institutions. The operations of the trusts were largely in line with Gandhi's reforms
which sought to abolish untouchability, encourage empowerment of women and
rural development.
The Third Phase
The third phase of CSR (196080) had its relation to the element of "mixed
economy", emergence of Public Sector Undertakings (PSUs) and laws relating
labour and environmental standards. During this period the private sector was
forced to take a backseat. The public sector was seen as the prime mover of
development. Because of the stringent legal rules and regulations surrounding the
activities of the private sector, the period was described as an "era of command and
control". The policy of industrial licensing, high taxes and restrictions on the
private sector led to corporate malpractices. This led to enactment of legislation
regarding corporate governance, labour and environmental issues. PSUs were set
up by the state to ensure suitable distribution of resources (wealth, food etc.) to the
needy. However the public sector was effective only to a certain limited extent.
This led to shift of expectation from the public to the private sector and their active
involvement in the socio-economic development of the country became absolutely
necessary. In 1965 Indian academicians, politicians and businessmen set up a
national workshop on CSR aimed at reconciliation. They emphasized upon
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transparency, social accountability and regular stakeholder dialogues. In spite of

such attempts the CSR failed to catch steam.
The Fourth Phase

In the fourth phase (1980 until the present) Indian companies started abandoning
their traditional engagement with CSR and integrated it into a sustainable business
strategy. In the 1990s the first initiation towards globalization and economic
liberalization were undertaken. Controls and licensing system were partly done
away with which gave a boost to the economy the signs of which are very evident
today. Increased growth momentum of the economy helped Indian companies grow
rapidly and this made them more willing. Globalization has transformed India into
an important destination in terms of production and manufacturing bases of TNCs
are concerned. As Western markets are becoming more and more concerned about
labour and environmental standards in the developing countries, Indian companies
which export and produce goods for the developed world need to pay a close
attention to compliance with the international standards.
CURRENT STATE OF CSR IN INDIA
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CSR is not a new concept in India. Ever since their inception, corporates like the
Tata Group, the Group, and Indian Oil Corporation, to name a few, have been
involved in serving the community. Through donations and charity events, many
other organizations have been doing their part for the society. The basic objective
of CSR in these days is to maximize the company's overall impact on the society
and stakeholders. CSR policies, practices and programs are being comprehensively
integrated by an increasing number of companies throughout their business
operations and processes. A growing number of corporates feel that CSR is not just
another form of indirect expense but is important for protecting the goodwill and
reputation, defending attacks and increasing business competitiveness.
Companies have specialized CSR teams that formulate policies, strategies and
goals for their CSR programs and set aside budgets to fund them. These programs
are often determined by social philosophy which have clear objectives and are well
defined and are aligned with the mainstream business. The programs are put into
practice by the employees who are crucial to this process. CSR programs ranges
from community development to development in education, environment and
healthcare etc.
For example, a more comprehensive method of development is adopted by some
corporations such as Bharat Petroleum Corporation Limited, Maruti Suzuki India
Limited. Provision of improved medical and sanitation facilities, building schools
and houses, and empowering the villagers and in process making them more selfreliant by providing vocational training and a knowledge of business operations are
the facilities that these corporations focus on. Many of the companies are helping
other peoples by providing them good standard of living.
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Also, corporates increasingly joining hands with non-governmental organizations

(NGOs) and use their expertise in devising programs which address wider social
problems.
CSR has gone through many phases in India. The ability to make a significant
difference in the society and improve the overall quality of life has clearly been
proven by the corporates. Not one but all corporates should try and bring about a
change in the current social situation in India in order to have an effective and
lasting solution to the social woes. Partnerships between companies, NGOs and
the government should be facilitated so that a combination of their skills such as
expertise, strategic thinking, manpower and money to initiate extensive social
change will put the socio-economic development of India on a fast track.
TYPES OF CORPORATE SOCIAL RESPONSIBILITY
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CSR can encompass a wide variety of tactics, from giving nonprofit organizations
a portion of a company's proceeds, to giving away a product or service to a worthy
recipient for every sale made. Here are a few of the broad categories of social
responsibility that businesses are practicing:
Environment: organizations are starting to focus on their carbon footprint and
look for ways in which this can be reduced. Additionally, companies are looking at
ways that their operations can be more sustainable overall for the environment, by
having a minimal impact. Some companies are now required by law in the UK to
report on their emissions of greenhouse gases. This makes it more likely than in the
past that a company would focus on environmental areas of corporate social
responsibility. One primary focus of corporate social responsibility is
the environment. Businesses, both large and small, have a large carbon footprint.
Any steps they can take to reduce those footprints are considered both good for the
company and society as a whole.
Philanthropy: Businesses also practice social responsibility by donating to
national and local charities. Whether it involves giving money or time, businesses
have a lot of resources that can benefit charities and local community programs.
this type of corporate social responsibility is most commonly associated with
giving money to charities. Often, organizations will have specific charities that
they support, and these may be linked to their line of business. This is not always
linked to charity work however. For example, Google carries out several initiatives
in China that help to improve the prospects of people. One such example is Google
gives money to support earthquake relief efforts.
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Ethical labor practices: By treating employees fairly and ethically, companies can
also demonstrate their corporate social responsibility. This is especially true of
businesses that operate in international locations with labor laws that differ from
those in the United States. Most of the ethical corporate social responsibility
programmes out there focus on fair treatment of employees, which includes
employees that may not be directly working for the organization. What this means
is that ethical corporate social responsibility usually considers the entire supply
chain. That means that some companies that source clothes from Asia have
corporate social responsibility programmes to make sure that the people that work
to produce the clothes that they buy are treated fairly. This may include a minimum
wage or certain standards to be met in the factories. Some of this can be quite
difficult to enforce in the supply chain. Another example is that small farmers in
developing countries that supply produce such as coffee, bananas or other crops are
paid a fair price for their goods.
Ethical corporate social responsibility is not just limited to making sure that people
in less developed countries are treated fairly. It is also focused on making sure that
all stakeholders receive fair treatment. This includes employees, but also
customers, shareholders and other stakeholders that the company may impact
through its activities.
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STEPS TO ACHIEVING CORPORATE SOCIAL

RESPONSIBILITY
When formulating CSR best practices, insurers should consider customers,

employees, shareholders, intermediaries, suppliers, regulators and the broader
community. The interests of these stakeholders are vast, and insurers should focus
on those that are affected by, or align with, their business operations.
Paying Valid Claims Efficiently

Paying valid claims efficiently sounds simple, but it involves more. Having the
right technology is essential, as is staff training. Insurers also need to price risks
accurately and fairly. If risks are continually underpriced, an insurer will go out of
business, which will have wide-ranging effects on all stakeholders. On the other
hand, if risks are overpriced, customers may not be able to afford adequate
coverageand may choose not to insure at all. If most businesses and individuals
choose to bear the risk of a loss that they cannot afford to cover, this will have real
implications for the economy, as well as individuals health and safety. It would
also place an unbearable burden on the government to serve as a safety net.
To pay valid claims efficiently, insurers must also keep down costs. Premiums are
calculated by account for both the particular risks and operating costs required to
provide the policy. It is therefore important to minimize overhead, infrastructure
and claims-processing costs so that insurers can offer affordable insurance.
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Risk Minimization/Loss Control

. Insurers are in the business of risk analysis. They are the ones best positioned to
minimize risksboth internally in their operations and externally for their clients
and other stakeholders.
Internal risk minimization could be as simple as implementing proper policies and
procedures, such as occupational health and safety guidelines. External risk
minimization may be more difficult to employ. Appropriate strategic CSR
measures used to reduce risk externally will depend on the type of products offered
by an insurer. In general, insurers should train underwriters to look more closely at
clients internal decision-making processes, risk management procedures and
ethics.
Underwriting for large, risky projects or companies should entail in-depth research
on the likely sources of risk as well as more extensive screening and monitoring.
Further, insurers should be proactive in stipulating limits or requirements around
insurance for projects that may impact human rights.
External risk minimization should reduce claims costs and frequency for clients,
and insured's will thus be incentivized to reduce the likelihood and severity of loss
in order to lower their premiums. Insurers should, and often do, consider offering
discounted premiums to insureds that take preventative measures. For example,
discounts are offered to households that install security systems.
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Strategic Philanthropy
Strategic philanthropy involves partnering with charities or organizations in the

community for a mutually beneficial purpose. This type of corporate giving can not
only impact the community but also other stakeholders in the business.
QBE has set up a foundation that aims to drive employee engagement. Through
the program, employees are able to apply for local grants for charities that they
personally support. Employees can also get involved in the community through
paid volunteer leave, and the foundation has promised to match employees
charitable contributions and fundraising efforts.
Another form of philanthropy relevant for insurers is disaster relief. Following the
recent Queensland floods, for example, Suncorp donated AU$100,000 to the
Queensland premiers disaster relief appeal and set up customer response teams
in remote locations to assist as many customers as it could. Further, Suncorp
provided employees affected by the floods with a range of services including
professional counseling, financial recovery packages and hardship grants.
There are many other projects insurers could support that are a form of strategic
philanthropy. Those that decrease crime or improve safety are particularly
valuable, as they not only support the participants but create safer communities,
which have lower claims costs than dangerous areas.
LAG focused its strategic philanthropy on a partnership with St. John Ambulance
to help stakeholders improve their safety and reduce injuries.
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Recognition for Human Rights
Studies show that few companies have taken steps to implement human rights
policies.
Companies that show enthusiasm for observing voluntary human rights codes of
conduct usually operate in a business with the potential to considerably impact
human rights; the majority of their work may be done in developing countries, for
example. These companies also tend to have high-profile brand names that they
wish to protect, and for that reason they can be more easily pressured into action
by civil society.
Human rights are still an important consideration because insurance permeates
many facets of everyday life. It is particularly relevant for corporations operating
globally or those that may be considering outsourcing (or moving) services to
countries with lesser human rights protections.
Many organizations have created initiatives to encourage companies to respect
human rights and hold corporations liable for violations. One of the most notable is
the U.N. Guiding Principles on Business and Human Rights, developed by
Harvard professor John Ruggie and endorsed by the United Nations in June 2011.
These principles provide a useful reference for insurers. Ruggie explains that to
respect rights essentially means not to infringe on the rights of othersput simply,
to do no harm. The key operational element is to conduct due diligence to
become aware of, prevent and address adverse human rights impacts. This
process involves making policy commitments to human rights, undertaking
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periodic assessments on the actual and potential impact of business operations on

human rights, integrating the process into decision making and the tracking of
performance. The principles also recommend that corporations develop a means
to hold themselves accountable and to provide for remediation through grievance
or other mechanisms.
Socially Responsible Investment
Socially responsible investment describes the process of including non-financial

criteriaenvironmental, social and governance considerationsin decision
making. Institutional investors, such as insurers, are in a powerful position in that
they are able to encourage positive change in investment strategies.
With issues such as global warming, child labor and other human rights violations
becoming more prominent in investors minds.
A positive correlation between social, environmental and ethical issues, and longterm shareholder value is a prerequisite for socially responsible investment to
thrive. Some studies show a positive relationship between CSR and financial
performance.
There are three main strategies that socially responsible investors can use. The
first, called screening, involves selecting investment options based on social or
environmental criteria. The second strategy, shareholder activism, as its name
suggests, involves communication with the investment company through
shareholder resolutions, The third strategy, community investing.
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COMPANIES ACT RELATED TO CSR
The Ministry of Corporate Affairs has notified Section 135 and Schedule VII of the
Companies Act 2013 as well as the provisions of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 to come into effect from April 1, 2014.
With effect from April 1, 2014, every company, private limited or public limited,
which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net
profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the
immediately preceding three financial years on corporate social responsibility
activities. The CSR activities should not be undertaken in the normal course of
business and must be with respect to any of the activities mentioned in Schedule
VII of the 2013 Act. Contribution to any political party is not considered to be a
CSR activity and only activities in India would be considered for computing CSR
expenditure.
The net worth, turnover and net profits are to be computed in terms of Section 198
of the 2013 Act as per the profit and loss statement prepared by the company in
terms of Section 381 (1) (a) and Section 198 of the 2013 Act. It is has been
clarified that if net profits are computed under the Companies Act, 1956 they
needn't be recomputed under the 2013 Act. Profits from any overseas branch of the
company, including those branches that are operated as a separate company would
not be included in the computation of net profits of a company. Besides, dividends
received from other companies in India which need to comply with the CSR
obligations would not be included in the computation of net profits of a company.
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The CSR Rules appear to widen the ambit for compliance obligations to include
the holding and subsidiary companies as well as foreign companies whose
branches or project offices in India fulfill the specified criteria. There is a need for
clarity with respect to the compliance obligations of a company as well as its
holding and subsidiary companies.
The activities that can be undertaken by a company to fulfill its CSR obligations
include eradicating hunger, poverty and malnutrition, promoting preventive
healthcare, promoting education and promoting gender equality, setting up homes
for women, orphans and the senior citizens, measures for reducing inequalities
faced by socially and economically backward groups, ensuring environmental
sustainability and ecological balance, animal welfare, protection of national
heritage and art and culture, measures for the benefit of armed forces veterans, war
widows and their dependents, training to promote rural, nationally recognized,
Paralympics or Olympic sports, contribution to the prime minister's national relief
fund or any other fund set up by the Central Government for socio economic
development and relief and welfare of SC, ST, OBCs, minorities and women,
contributions or funds provided to technology incubators located within academic
institutions approved by the Central Government and rural development projects.
However, preference would need to be given to local areas and the areas around
where the company operates.
To formulate and monitor the CSR policy of a company, a CSR Committee of the
Board needs to be constituted. Section 135 of the 2013 Act requires the CSR
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Committee to consist of at least three directors, including an independent director.

However, CSR Rules exempts unlisted public companies and private companies
that are not required to appoint an independent director from having an
independent director as a part of their CSR Committee and stipulates that the
Committee for a private company and a foreign company need have a minimum of
only 2 members.
A company can undertake its CSR activities through a registered trust or society, a
company established by its holding, subsidiary or associate company or otherwise,
provided that the company has specified the activities to be undertaken, the
modalities for utilization of funds as well as the reporting and monitoring
mechanism. If the entity through which the CSR activities are being undertaken is
not established by the company or its holding, subsidiary or associate company,
such entity would need to have an established track record of three years
undertaking similar activities.
Companies can also collaborate with each other for jointly undertaking CSR
activities, provided that each of the companies are able individually report on such
projects.
A company can build CSR capabilities of its personnel or implementation agencies
through institutions with established track records of at least three years, provided
that the expenditure for such activities does not exceed 5% of the total CSR
expenditure of the company in a single financial year.
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The CSR Rules specify that a company which does not satisfy the specified criteria
for a consecutive period of three financial years is not required to comply with the
CSR obligations, implying that a company not satisfying any of the specified
criteria in a subsequent financial year would still need to undertake CSR activities
unless it ceases to satisfy the specified criteria for a continuous period of three
years. This could increase the burden on small companies which do not continue to
make significant profits.
Circular No. 21/2014 clarifies:

One-off events such as marathons, awards, charitable contributions,
advertisements, sponsoring TV programs, etc. do not qualify as CSR expenditures
and should be checked against Rule 4(1) of the Companies CSR Rules, 2014.
Expenses incurred for the fulfillment of any Act/Statute do not count as CSR
expenditures.
Salaries paid to CSR staff and volunteers participating in CSR activities can be
factored into a CSR project cost as party of the CSR expenditure.
Expenditures incurred by a foreign holding company for CSR activities in India
will qualify as CSR expenditure of that companys Indian subsidiary.
The report of the Board of Directors attached to the financial statements of the
Company would also need to include an annual report on the CSR activities of the
company in the format prescribed in the CSR Rules setting out inter alia a brief
outline of the CSR policy, the composition of the CSR Committee, the average net
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profit for the last three financial years and the prescribed CSR expenditure. If the
company has been unable to spend the minimum required on its CSR initiatives,
the reasons for not doing so are to be specified in the Board Report.
Activities under CSR

The activities that can be done by the company to achieve its CSR obligations
include eradicating extreme hunger and poverty, promotion of education,
promoting gender equality and empowering women, reducing child mortality and
improving maternal health, combating human immunodeficiency virus, acquired,
immune deficiency syndrome, malaria and other diseases, ensuring environmental
sustainability, employment enhancing vocational skills, social business projects,
contribution to the Prime Minister's National Relief Fund or any other fund set up
by the Central Government or the State Governments for socio-economic
development and relief and funds for the welfare of the Scheduled Castes, the
Scheduled Tribes, other backward classes, minorities and women and such other
matters as may be prescribed.
Local Area
Under the Companies Act, preference should be given to local areas and the areas
where the company operates. Company may also choose to associate with 2 or
more companies for fulfilling the CSR activities provided that they are able to
report individually. The CSR Committee shall also prepare the CSR Policy in
which it includes the projects and programmes which is to be undertaken, prepare a
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list of projects and programmes which a company plans to undertake during the
implementation year and also focus on integrating business models with social and
environmental priorities and process in order to create share value.
The company can also make the annual report of CSR activities in which they
mention the average net profit for the 3 financial years and also prescribed CSR
expenditure but if the company is unable to spend the minimum required
expenditure the company has to give the reasons in the Board Report for non
compliance so that there are no penal provisions are attracted by it.
When a company has a website, the CSR policy of the company would need to be
disclosed on such website.
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FORMAT FOR THE ANNUAL REPORT ON CSR ACTIVITIES
1. A brief outline of the company's CSR policy, including overview of projects or

programs proposed to be undertaken and a reference to the web-link to the CSR
policy and projects or programs.
2. The Composition of the CSR Committee.
3. Average net profit of the company for last three financial years
4. Prescribed CSR Expenditure (two per cent. Of the amount as in item 3 above)
5. Details of CSR spent during the financial year.
(a) Total amount to be spent for the financial year;
(b) Amount unspent , if any;
(c) Manner in which the amount spent during the year in prescribed format.
6. In case the company has failed to spend the two per cent of the average net
profit of the last three financial years or any part thereof, the company shall
provide the reasons for not spending the amount in its Board report.
7. A responsibility statement of the CSR Committee that the implementation and
monitoring of CSR
Policy, is in compliance with CSR objectives and Policy of the company.
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ADVANTAGES OF CSR TO THE COMPANY
Better Public Image

A corporations public image is at the mercy of its social responsibility programs
and how aware consumers are of them. According to a study by Cone
Communications, 9 out of 10 consumers would refrain from doing business with a
corporation if there existed no corporate social responsibility plan.
For example, if a company is heavily involved in the practice of donating funds or
goods to local nonprofit organizations and schools, this increases the likelihood
that a consumer will use their product. Additionally, if a corporation takes great
care to ensure the materials used in its products are environmentally safe and the
process is sustainable, this goes a long way in the eye of the public.
Consumers feel good shopping at institutions that help the community.
Better and More Media Coverage

Going along with how the public sees your corporation, the amount of positive
media coverage a corporation receives is extremely important for business. It
doesnt matter how much your company is doing to save the environment if
nobody knows about it. As they say, its okay to toot your own horn every once in a
while. Make sure youre forming relationships with local media outlets so theyll
be more likely to cover the stories you offer them.
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How much good a company can do in the local communities, or even beyond that,
is corporate social responsibility. And the better the benefits, the better the media
coverage.
On the other hand, however, if a corporation participates in production or activities
that bring upon negative community impacts, the media will also pick this up (and
unfortunately, bad news spreads quicker than good news). Media visibility is only
so useful in that it sheds a positive light to your organization.
Fosters a Positive Workplace Environment

This section is short and simple because its just common sense employees like
working for a company that has a good public image and is constantly in the media
for positive reasons. Happy employees almost always equals positive output.
How Nonprofits Benefit

How corporations embrace corporate social responsibility in 2015 is also going to
be of great importance to the nonprofit world. Corporate giving programs, which
can include everything from matching gifts to volunteer grants; from team building
volunteer efforts to fundraising events. These types of programs, which vastly
increase the public good that corporations are doing, are vital to nonprofit
organizations because of the great monetary and volunteer implications.
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Greater Funding through Employee Matching Gift Programs

Corporations that offer matching gift programs are essentially doubling donations
that its employees are giving to eligible nonprofits. For example, if an employee
provides a $100 donation to a nonprofit of their choice, his or her employer (if the
company offers a matching gift program) will write an additional $100 check,
thereby increasing total funds brought in.
Greater Time Commitments through Employee Volunteer Grant Programs
Corporations that offer volunteer grants, or even offer paid time off to volunteer at
nonprofit organizations, are bringing in helping hands to eligible nonprofit
organizations. A corporation with this kind of program might offer (for example) a
$250 check to a nonprofit once an employee has volunteered at least 10 hours with
the organization. There are also pay-per-hour grants that many corporations offer,
paying a certain dollar amount per hour volunteered.
This kind of socially responsible program is a win-win for both parties involved.
Employees of corporations are seen volunteering and donating their time to
important causes in the community, and nonprofits are receiving free time and
volunteer work, which is essential the success of so many nonprofits.
Forging Corporate Partnerships
Another positive impact corporate social responsibility has on nonprofit
organizations is the possibility of corporate partnerships. These partnerships are
vital to the work a corporation can do in the local community, and important to a
nonprofit that may not have the resources for major marketing campaigns. Longterm corporate-nonprofit partnerships can benefit everyone.
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For a corporation, a partnership with a local or national nonprofit organization

improves the companys image in the public eye, as consumers can clearly see the
positive impact a corporation is having on their community. A key benefit is that it
makes it easier for consumers to trust a company.
Brand differentiation
In the past, brand differentiation was one of the primary reasons companies
embraced CSR. Companies such as Timberland were able to find their voice and
incorporate the companys values into their business model. However, as CSR has
become more commonplace, using it to differentiate your brand is getting harder to
do. For example, the Cola Wars is one of the longest running rivalries in
business. Coke and Pepsi are constantly looking to grab as much market share as
they can from each other. Yet they are both adopting similar, although slightly
different, approaches to CSR. Both Pepsi and Coke are pursuing strategies of zero
net water usage. Both companies offer water bottles made from sustainable
packaging as well.
Long-term thinking
The only reason were doing sustainability is to drive the growth of Unilever,
McDonald said in the video mentioned. Indeed, CSR is an effort to look at the
companys long-term interest and ensuring that the companys future is well
34
sustainable. Hence, thats why I prefer the term sustainability to CSR. It is a shift
from worrying about the next fiscal quarters financial results to the impact
business decisions today have on financial (and social) results ten years from now.
Customer engagement
For the past few years, Wal-Mart has established itself as a leader on
environmental efforts. Wal-Mart is a leader in environmentalism. In 2008, WalMart ran an ad campaign designed to raise awareness about the environment and
the product choices consumers could make. Using CSR can help you engage with
your customers in new ways. Since the message is about something good, it can
often be an easier way to talk to your customers. This is an underused tool for
business-to-business company communication.
Stable Cash Flow
Fines and penalties assessed by the government for lack of regulatory compliance
and lawsuits from customers due to product defects or from employees due to
unsafe working conditions can be costly to a small business. Cash flow is the
lifeblood of a company, allowing it to meet its obligations such as payroll and to
fund marketing and business development programs. Maintaining a stable cash
flow keeps the company on its growth track.
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CSR POLICIES AND PRACTICES
Mission, Vision and values statement:

Corporate Social Responsibility is regarded as a prominent place in a companys
core mission, vision and values documents which state a companys goals and
aspirations. It provides insight into the companys values, culture and strategies for
achieving its aims. The mission or vision of a socially responsible business refers
to a purpose beyond making a profit and specifies that it will engage in ethical
and responsible business practices. It seeks to balance the interests of all the key
shareholders while making decisions.
Culture Values:
Corporate Social Responsibility requires an environment where innovation and
independent thinking are welcomed. There must be a commitment to close the gap
between what the company says and reality of its actual performance. Care
should be exercised so that the company says what it means what it says.
Management Structures:
Corporate Social Responsibility management systems aims to integrate corporate
responsibility concerns into a companys values culture, operations and business
decisions at all levels of the organization. Such a system can be created by
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assigning responsibility to a Board Committee, an executive level committee or a

single executive or a group of executives who can identify key Corporate Social
Responsibility issues and evaluate and develop a structure for long term integration
of social values throughout the organizations. The designed structure should align
the companys mission, size, sector, culture, business structure, geographic
locations, risk areas & level of Corporate Social Responsibility commitment.
Strategic Planning:
Companies begun to incorporate Corporate Social Responsibility into their long
term planning processes. Specific goals and measures of progress are identified for
the purpose. The impact of any major company proposals on society is assessed
before it is approved.
General Accountability:
Social responsibility goals may be prescribed for different divisions, departments
and job positions. Job descriptions are designed so that each employee can
understand how he can contribute to the companys overall effects to be socially
responsible.
Employee recognition and rewards:

Employees tend to engage in such behavior that is recognized and rewarded and
avoid behavior that is penalized. To promote Corporate Social Responsibility, the
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system of recruiting, hiring, promoting, compensating and publicly honoring

employees should be designed.
Communication, education and training:

Employees cannot be held accountable for responsible behavior if they are not
aware of its importance. Therefore, they should be provided with the information
and tools they need to act appropriately in carrying out their job requirements.
Companies should publicize the need of Corporate Social Responsibility internally,
include it as a subject in management training programs, establish a code of
conduct, and provide managers and employees with decision making processes that
help them to achieve responsible outcomes.
Corporate Social Responsibility reporting:

Annual Corporate Social Responsibility reports builds trust with stakeholders and
encourage internal efforts to comply with a companys Corporate Social
Responsibility goals. The best report demonstrate CEO and senior leadership support.
Provide verified performance date for social, environmental and economic
performance indicators.
Share good and bad news.
Set goals for improvement.
Include stakeholders feedback.
Leadership Role:
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A few socially responsible companies take the lead and persuade others to behave
in more responsible manner. It is in everyones best interest to have as many
companies as possible honoring the requirements and expectations of Corporate
Social Responsibility.
Increased productivity and quality of work life:

Efforts to improve working conditions lessen environmental impacts and increase
employee involvement in decision making often lead to increase productivity and
reduce error rate in a company.
CSR BY HDFC LIFE INSURANCE COMPANY

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HDFC Life has always believed that establishing a strong and ethical foundation is
an essential prerequisite for long-term sustainable growth. Integrity and people
care are two of our key fundamental values which they follow.
Approach
HDFC Life has always believed that establishing a strong and ethical foundation is
an essential prerequisite for long-term sustainable growth. HDFC Life focuses on
maintaining the quality of business and creation of long-term value for policy
holders and stakeholders. We also believe that business must go hand in hand with
a sense of responsibility towards the society.
HDFC Lifes business philosophy highlights the theme of self-respect and
independence. Swabhimaan, HDFC Lifes Corporate Social Responsibility (CSR)
initiative- aims to play a positive role by contributing towards easing distress and
aiding in advancement of society while engaging with stakeholders thereby
becoming a socially responsible corporate citizen.
HDFC Life is committed to being a socially responsible corporate and its CSR
framework is governed by a formal policy.
HDFC Life CSR framework

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Achievements
Winner of Best Marketing Campaign awards for India Giving Challenge

2013
Winner of Innovative Fundraising Campaign awards for India Giving
Challenge 2013
Runner up in Better than last year prizes for the India Giving Challenge
2013
Won the 2nd Best Marketing Campaign awards during the India Giving
Challenge 2012
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Won the 2nd Best Marketing Campaign and 2nd Most Innovative
Fundraising Campaign awards during the India Giving Challenge 2011
HDFC Life was awarded the Yuva Hero Award in July 2011 for
contribution towards the educational support of lesser privileged children
Won the Most innovative fundraising campaign award during the India
Giving Challenge 2010
HDFC Life was awarded with Yuva Unstoppable Corporate Icon Award
from Dr. APJ Kalam in Sept2010
Initiatives
Rebuilding Uttarakhand: A Flood Response

In June 2013, devastating floods struck Uttarakhand. As a responsible corporate
HDFC Life decided to support rehabilitation of people affected in Uttarakhand
floods.
Company partnered with Habitat for Humanity India to provide long term
sustainable shelters to affected families.
The project is funded through the contribution made by our employees & matching
amount donated by the company. Under this project 75 transitional shelter to
address immediate needs & 50 permanent houses are being constructed. The
project will rehabilitate total of 125 families. As on 31st March, 2014, 60
transitional shelters have been constructed & handed over to beneficiaries.
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SOS childrens village project

HDFC life believes that education plays a significant role in an individuals life. It
helps children living on the margins of the society to break away from the cycle of
poverty to a secure future.
The journey from poverty to a financially stable life is especially difficult for
orphaned and destitute children. In absence of any care and guidance from an adult
they are left to face the harsh realities of life on their own and their chances of
achieving a secure and stable future is drastically lowered.
In the new financial year, HDFC Life took its commitment for child education one
step further by partnering with SOS Childrens Villages which focuses on
providing family-based care, quality education and holistic development of
abandoned, destitute and orphaned children. The project, known as Swabhimaan
supports the education of 300 vulnerable children in 4 locations -Kolkata,
Guwahati, Bhubaneshwar and Rourkela.
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Teach for India

HDFC Life believes in every childs right to quality education and believes that
one of the long term solutions to eradicate the Education inequality is by creating
Change Leaders.
To facilitate the development of Change Leaders and channelize the aspirations
of its dynamic employees, HDFC Life has been partnering with Teach for India, a
non-profit organization engaged in supporting education for underprivileged
children since 2010. The Teach for India fellowship is a two year program, which
places fellows as full-time teachers in low income English medium schools. HDFC
sponsored two fellows for the 2010-12 fellowship program, these employees have
been reintegrated in the company and remain active change leaders within and
outside the company.
Presently, the Company has sponsored two employees each for the 2012-14 and
2013-15 Teach for India Fellowship programs. The project provides the employees
with the opportunity to have a secure career while following their dream of giving.
Payroll Giving
HDFC Life encourages its employees to contribute a small part of their salary to
establish their own charity account through the Payroll Giving programme.
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This initiative has been implemented in partnership with GiveIndia, an

organization dedicated to help individuals donate to credible NGOs. This
programme helps employees create a strong impact in the lives of the
underprivileged through small, yet effective contributions. The employees are also
able to follow up on the utilization of their contribution. HDFC Life has been
successfully running the programme with an exponential increase in the number of
enrolments since 2008 and till date, has effectively channelized Rs.58.08 lakhs
worth of donations.
Tree plantation
Environmental sustainability is emerging as an essential ingredient to doing
business responsibly and successfully. As the first private company in Indian
insurance sector, our actions have the potential to set sustainability benchmarks for
the industry and ensuring a better world for generations to come.
These aspirations materialized into environmental initiatives at HDFC Life. Under
its environmental CSR initiatives, since 2010, HDFC Life, in all its offices has
been undertaking steps like prohibiting the use of paper cups completely, saving
paper by setting printing on both sides as a default on printers, ensuring desktops
hibernate after 15 minutes to minimize electricity use, setting usage hours for air
conditioners, initiating internal campaigns to save water, power and paper wastages
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and encouraging employees to organise environment friendly celebrations and

festivities.
To offset the use of paper for printing the Policy Documents for 2012-13, HDFC
Life partnered with a non-profit organization - Plant a Tree Today Foundation - to
plant 1,500 saplings in Mumbai in August 2012. The saplings have been planted on
a third party land and are maintained by them. HDFC Life and PATT regularly
monitor the growth of the saplings. In the financial year 2013-14, HDFC Life aims
to plant 3000 saplings.
Financial Literacy project

HDFC life believes in empowering marginalized population by building their
capabilities. One of the key capabilities is the ability to use knowledge and skills to
manage financial resources effectively for long term financial well-being.
With this belief, HDFC Life has initiated a financial literacy project to educate and
equip children (from grades 5 to 8) with financial knowledge to help them
effectively manage their finances. A financial literacy module has been created by
HDFC Life. The project was piloted in 2011 in partnership with Yuva Unstoppable
across 25 municipal schools in Gujarat (Ahmedabad, Baroda & Surat). Yuva
Unstoppable is a youth volunteer movement. The second phase of the Program was
46
launched in 2012 in Municipal schools across Gujarat, MP, Rajasthan,

Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu and Uttar Pradesh. Sessions
with the children were conducted by trained HDFC Life employees and other
volunteers. HDFC Life has educated more than 12,000 children through this
project since 2011.
HDFC Life realizes that coping with the loss of a loved one is a painful experience.
While the disbursement of a death claim may help family members/ claimants
overcome any immediate financial difficulties, further support is required to
achieve long term financial stability.
Swabhimaan Careers
As an insurer, HDFC Life focuses on the long-term financial well being of the
policyholders and their dependants and thereby launched the Swabhimaan
Careers project. This initiative proactively reaches out to the policyholders
dependants and extends an opportunity to the dependants to send their applications
to HDFC Life. Basis the suitability of the profile, it is assessed and considered for
employment in the company.
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Akshaya Patra
HDFC life believes that education plays a significant role in a persons life. It helps
marginalized population of society in breaking away from the shackles of poverty.
Schools and qualified teachers might be significant in providing quality education
but without enabling conditions their impacts drastically diminishes. Access to
food and nutrition is one such enabling factor which may affect utilization of
education facilities both positively as well as negatively. Currently 42.5% of school
aged children are under nourished. HDFC Life in its endeavor to enhance access to
education for children of underprivileged groups is partnering with the Not for
Profit organization, Akshaya Patra. The organization runs school lunch programs
across India. Akshaya Patra distributes freshly cooked, healthy meals daily to 1.37
million children. HDFC life has funded a vehicle for Akshaya Patra, Hyderabad.
This vehicle will be used for delivering the midday meals at different school
locations with more efficiency ensuring the freshness of food.
CSR BY BHARTI AXA GENERAL INSURANCE COMPANY
48
They commit ourselves to shaping a better tomorrow by choosing empathy over

sympathy, respect over pity, and contribution over payment; to meaningfully
transform the society at large as "we choose to care"
Global Volunteering Challenge

This is part of the week long CR programme. In 2014 we stood second globally in
the "Global Volunteering Challenge" which was an effort to promote the culture of
volunteerism for worthy causes amongst our employees. In 2013, we participated
in the global walk challenge to stand number one globally and we donated the
highest contribution amount of 20,000 Euros to Concern India Foundation. in
2012, we stood first amongst the AXA Asia entities..
Employees enthusiastically participate in the CR week Global challenge year on
year to contribute to a greater cause and vision. In 2014 our employees contributed
a phenomenal 11,712 man hours out of the 1,32,616 Hours collected globally by all
AXA entities and we donated the second highest contribution amount of.18,000
Euros to Satya Bharti Schools. This was possible due to their selfless efforts in
various volunteering activities such as visit to NGOs orphanages and old age
homes, Chabeel, risk education workshops, cooking food for the D & I day stalls
and many more.
49
Diversity and Inclusion

Bharti AXA GI is committed in promoting Diversity and Inclusion by creating a
work environment where all employees are treated with dignity and respect; and
where individual differences are valued. The D&I board is dedicated to cultivate a
diverse and inclusive environment where all employees feel fully engaged and
included in our business and strategy to become the "Preferred Company".
As part of the AXA Global D&I Day celebration held for the first time on June
10th 2013, we celebrated the day to widen the scope of diversity beyond gender in
a meaningful way.
To rejuvenate our focus and efforts on building an inclusive organization, we at
Bharti AXA GI dedicate one day of the CR Week as "Diversity & Inclusion Day"
to celebrate the diversity of the team. Diverse ethnic dress codes, stalls with food
prepared by the employees, created a festive atmosphere and a spirit of employee
engagement in social harmony.
The proceeds collected from the sale of food at the stalls were utilized towards
funding various risk education projects conducted in collaboration with Local
NGOs . Many Local NGOs were invited to put up stalls at office premises to
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showcase and sell their products like clothes & handicrafts to help them raise
funds.
Risk Education
Keeping in mind the increased need to spread awareness around gender sensitivity
and related issues, we at Bharti AXA GI dedicate one day of the CR Week this year
as "Risk Education Day". On this day we organize camps, in association with
Concern India Foundation, where employees volunteered to conduct sensitization
workshops that helped girls from underprivileged backgrounds to safeguard
themselves against perils of society which included identifying a 'good touch' and a
'bad touch'.
Other risk awareness programmes on road safety, healthy habits and other
social/civic issues are also conducted.
Apart from the above programs which we do on Risk Education Day, on a regular
basis we keep conducting awareness programs for employees as well as for
underprivileged women & children on diverse risk topics.
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Awards Accolades & Other key Projects

Bharti AXA General Insurance Company was awarded the Change maker
Company of the Year Award (2014 Bronze) for Corporate Responsibility.
The Change maker Company of the year is part of the Change maker - Corporate
Responsibility Awards instituted by Bharti Foundation. the philanthropy entity of
the Bharti Enterprises . The awards are to recognize efforts of Bharti Group
Companies to integrate corporate responsibility as an integral part of their
everyday business. The jury assessed nominees on eight different parameters
ranging from the Company's Vision and its integration with Corporate
Responsibility, Social & Community Initiatives, Innovative use of Business
products & services and more.
Bharti AXA GI has consistently won this award for the second year for its year
round CSR efforts focused on the 3 pillars- Women and Children, Health &
Education and disaster relief.
At Bharti AXA GI, we ensure that womens empowerment and gender equality
stand at the heart of our work to build a better tomorrow and thus bring in inclusive
culture.
Nanhi Kali Project
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An employee sponsorship program in collaboration with K.C. Mahindra Trust and

Naadi Foundation which focused on individuals coming forth to support and
contribute towards educating underprivileged girl children; and help them go to
school with dignity. A three month campaign was run whereby employees could
contribute 1200 or 800 per month to provide support for supplementary education
and school material for girls in primary and secondary schools.
In 2012, the campaign received tremendous support from the team at Bharti AXA
GI. Employees not only contributed a part of their salary but also spread a word
amongst friends and family to support the cause. There were some who also gifted
Nanhi Kalis to their loved ones on special occasions.
The 'Say No to 3Ps' day

This campaign promoted Going Green and was organized at all branches across
India. Employees were urged to reduce the use of plastic and paper, and
encouraged to reuse and recycle by keeping printing and photocopying to a bare
minimum, this included blocking off a few hours during office hours where neither
were allowed. Each employee received a cotton bag as a symbolic gesture to
reduce the use of plastic bags and. also received note pads made out of recycled
paper.
Health Check-up for underprivileged women

As volunteerism is at the heart of CSR at Bharti AXA GI, employee participate in
organizing and assisting in health camps which are conducted for underprivileged
53
women hailing from humble backgrounds. During such camps, free medicines and
supplements are also distributed as prescribed by the attending doctors.
Charity Begins at Home

An annual initiative wherein the Senior Management and employees at Bharti
AXA GI contribute towards the education of children of the housekeeping staff .
Women Empowerment projects

To drive our Social & community related work on CR we work closely with
Concern India Foundation a non profit organization and we chose 4 projects for
this year which focuses on women empowerment and women & children health.
The projects were supported with the funds generated through CR Week. Below
mentioned are some of the highlighted projects. Women Empowerment projects in
Rural Karnataka supporting sustainable agriculture. Vocational training centers run
for unemployed young women to help them find jobs and many more. Health Care
Projects for Underprivileged women and children in North & Southern states of
India
CSR POLICY OF MAX LIFE INSURANCE CO. LTD.
I. PREAMBLE
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1.1 Corporate Social Responsibility has been an area of focus not only for the Max
Group but also for Max Life Insurance Company Limited, (MaxLife or the
Company) since inception. Max Group being in the Business of Life, there
has been a conscious effort to make a difference in the lives of the less
privileged. Max Life has made conscious efforts to make a difference in the lives
of the less privileged.
1.2 The Companies Act brings an even greater emphasis on CSR with Rules that
provide guidance on minimum CSR spend, reporting mechanism, review
structure and reporting to the shareholders of the Company. A CSR Committee
has been formed at the Board level to oversee CSR Activities of the Company.
1.3 Further to the above stated, the Board has approved this CSR Policy which has
been formulated and proposed by the CSR Committee with an objective to
outline its CSR focus areas, recommending the amount of CSR Expenditure,
execution process, review & monitoring mechanism, and, reporting process to the
Management and the Board of Directors of the Company.
II. PHILOSOPHY &OBJECTIVES
Max Life has its vision to build the most admired life insurance company by
securing the financial future of our customers and the Companys mission bring
about strong social relevance, and aims to be committed to social causes and
55
relevance for its inclusive growth and to contribute to society by supporting causes
on the health and well being platform.
IV. CSR IDENTIFIED SECTORS AND CSR ACTIVITIES
Max Life shall undertake Max Life CSR Activities in all or any of the CSR
Activities as per the Companies Act, however, it shall give primary importance to
the Max Life CSR
Identified Sectors, as follows.
4.1 Health & Hygiene
a. Supporting and facilitating surgery and high end treatment.
b. Preventive healthcare to underprivileged in identified geographies
c. Personal hygiene training in those villages which have been adopted by the
Company and in those locations where Health and Immunization camps are
organized by the Company
d. Environmental hygiene awareness in and around the areas of
operations of the Company
4.2 Education(exclusively for the select Village / Grams / any other
geographical clusters selected for development project)
a. Augment Primary and Secondary Education through remedial education support
b. Bridging Digital Divide
c. Financial Literacy to create awareness about financial planning
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4.3 Nutrition
a. Vitamin A(children 0-5 years) and other supplements for underprivileged women
and children
4.4 Livelihood
a. Vocational training and creating & supporting Self Help Groups for single
women led households in villages adopted by the Company. The vocations for
which training will be provided will be identified basis the inherent skill sets and
commercial opportunities for those vocations in and around the village
V. MODALITIES OF EXECUTION AND IMPLEMENTATION
SCHEDULES
5.1 Independent Implementing Agency: The Company shall work with Max India
Foundation or any other NGO, identified from time to time, as its independent
implementation partners for execution of the Max CSR Activities
5.2 NGO Support: Max India Foundation will execute projects with the help of
NGOs and employee engagement. Max India Foundation may seek the support of
NGOs who are working on ground on issues decided upon. Max India Foundation
will also provide training support to volunteers to carry out CSR activities.
5.3 Modality of Execution of Max CSR Activities: The Company shall execute and
undertake the Max Life CSR Activities as follows:
5.3.1. Healthcare which will cover pan-India immunization, surgeries and
treatments, health camps, medicinal support, health awareness, environmental
awareness, support for artificial limbs & polio calipers and other disability.
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5.3.2 Village Adoption in which the Company will focus on:

i) Children related issues in the areas of health, education and nutrition (education
being an integral part of holistic well being, will be addressed only in the village
adoption initiative, not in any other geography)
ii) Single women led households to create self sustenance
iii) Health and Hygiene in the village and
iv) Spreading awareness about a healthy environment.
5.4 Geographical Areas for Max CSR Activities:
1. Health & Hygiene: In areas as may be identified by Max India Foundation.
2. Nutrition: For underprivileged children in selected areas of MIF operations.
3. Education and Livelihood: Only in the village adopted by Max India Foundation
in areas identified by the Company from time to time
5.5 Beneficiaries for the Max CSR Activities:
1. Children (0-18 years)
2. Women Particularly, widows and those who are running households alone
3. Senior citizens
4. Others society at large
VI. Monitoring Process of CSR Activities
6.1 Approval of CSR Plan. Max India Foundation and other NGOs, the
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Company may decide to work with from time to time, shall present and get
approval on a quarterly activity plan at the beginning of every quarter from
relevant authority at Max Life Insurance. The plan should be in line with
Max Life CSR Policy approved by the CSR Committee. This plan will form
the basis for progress report to CSR Committee.
6.2 Reporting to CSR Committee. Max India Foundation and other NGOs
the Company may decide to work with from time to time shall provide a
detailed progress report on the Key Performance Indicators to the CSR
Committee every Quarter, or, at such intervals and at such times as the
CSR Committee shall require Max India Foundation and other NGOs to do
so. The progress on CSR issues selected by the Company will be reported
in the Annual Report in the format prescribed by the CSR Rules.
6.3 Reporting to the Board. The CSR Committee, after approval, shall
submit its report giving status of the CSR Activities undertaken, CSR
Expenditure incurred and such other details as may be required by the
Board, in accordance with applicable laws.
6.4 Key Performance Indicators: Following shall be the key indicators for
assessment of each of the Max Life CSR Identified Sectors:
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Issues Key Performance Indicators

Healthcare
Surgeries and
treatments including
Cancer
i) No of children benefitted
ii) No of women benefitted
iii) Total no. of beneficiaries
Preventive Healthcare Immunization
i) No. of children covered
ii) No. of vaccines administered
iii) No. of locations covered
Health Camps
i) No. of beneficiaries
ii) No. of locations covered
iii) No. of people provided immediate solutions /referred for further treatment.
Personal Hygiene & Environment Hygiene
i) No. of children and adults trained
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ii) Creation of garbage dumps / cleaning of open drains

iii) Reduction / removal of open defecation practices
Education
Primary & Secondary
Education
i) No. of registered children and their attendance percentage
ii) No. of drop-outs boys and girls
iii) Percentage of days when teacher was not available
Bridging Digital Divide
i) No. of children enrolled in computer literacy programme.
ii) Proficiency in computer knowledge (certification)
Financial Literacy
i) %age of adults (20-60 years) covered Nutrition Vitamin A
i) No. of children (0-5 years) given vitamin A capsules.
ii) No. of women and children provided with other supplements
Livelihood Vocational training
i) No. of women registered for vocational training
ii) Self sufficient women in year 3 and year 5
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Self Help Group

i) No. of Self Help Groups of women created
ii) Earnings of Self Help Groups
Miscellaneous
i) Any other parameters as the CSR Committee may require
6.5 Board Report and Annual Report. The Board shall publish this Policy and an
annual report on CSR Activities as per applicable laws.
VII. Budget for FY 15
CSR Budget FY 2015
Budget FY 2015
(in Rs. Crore)
Total 9.70
CSR OF LIFE INSURANCE CORPORATION
LIC with about fifty percent of personal insurance market share in India has taken
up activates under Corporate Social Responsibility in the right earnest. The thrust
area CSR activities of Life Insurance Corporation (LIC) include operational
62
transparency, information sharing and accountability to help support investors

particularly rural based, as covertly improvement resulting into efficient
functioning with fewer complaints.
LIC Golden Jubilee Foundation was established on 20-10- 2006 with an initial
corpus of Rs.50 Crores and with the provision of increasing to 100 Crores within
five years for tangible social work. LIC has gone into the activity in a big way. LIC
golden Jubilee scholarship scheme provides scholarship at the rate of Rs. 10,000/
year to children of economically weaker sections.
Under infrastructure support LIC has gone in a fairly involved way for the
construction of building at Howrah for mentally and physically challenged
persons; constructed a library cum study centre and residential hostel for ladies at
Shri Ramakrishna Ashram. LIC has constructed class room cum activity centers at
Jorhat; hostel at Jalpaiguri; golden jubilee hall, school and college building at
Shimoga; Vocational center at Jodhpur; computer center at Bhopal; toilet and class
room blocks at Haldwani, Vellore district and similar activities extending help for
infrastructure support. LIC has provided school buses at Patna division and Raipur
divisions.
Under Medical and Health care, the LIC has provided Camera for diabetic
retinopathy; Tata Winger ambulance van equipped with hearing aids at Jorhat;
Ambulance with ECG machine at Bangalore and Belgaum; Construction of
obstetrics and Gynecology unit at Udapi for masses; provided sonography machine
for providing advanced healthcare for rural area at Nadiad; Mobile van for blood
collection purpose at Thane and Bhavnagar.
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Under Public Utility activities, the LIC has constructed homes for aged persons at
Bhagalpur; Observation centre for HIV infected children at Satara; Kitchen,
dinning room for destitute and mentally challenged women; Medical unite-home
for aged at Banglore.LIC has installed roof top solar photovoltaic system at
Ludhiana.
Life Insurance Corporation of Indias Berhampur division has decided to provide
monthly scholarship to 20 poor and meritorious students to pursue higher
education.
The amount of scholarship is Rs 1000 per month for undergraduate students and
the amount would be provided till the end of the course of the student. The
scholarship would be provided to the students as a part of Corporate Social
Responsibility (CSR) of the public sector unit, its senior Divisional Manager. Last
year, the division provided scholarship to nine under-graduate students. This year,
he said as many as 182 applications were received by the division and the process
was on to select 20 students.
CONCLUSION
CSR programmes integrate core business operations with efforts to reduce the
disadvantage faced by socially-excluded populations. The examples cited in the
case study demonstrate that commercial activities that incorporate sociallyexcluded populations as employees, suppliers, distributors, and customers can
contribute to capability and resource development for these populations. CSR
activities can have a significantly-positive effect on socially-excluded groups
both directly through health services and more generally by improving economic
64
and social capabilities of socially-excluded populations. This positive association

supports recommendations for policy measures to increase the number, scale, and
scope of CSR initiatives in countries.
The private sector is often seen as a driver of exclusionary processes rather than a
partner in improving the health and welfare of socially-excluded populations.
However, private-sector initiatives and partnershipscollectively labeled
corporate social responsibility (CSR) initiativesmay be able to positively impact
social status, earning potential, and access to services and resources for sociallyexcluded populations. This project highlights the initiatives taken by the insurance
sector in India. The results show that there is (a) increase job-skills and
employment opportunities for women, disabled women, and rehabilitated drugusers and (b) provide healthcare services to female workers and their communities.
(c) increase in the literacy and cleanliness programs. Common success factors from
the project form the basis for recommendations to design and implement more
CSR initiatives targeting socially-excluded groups. The analysis found that CSR by
insurance companies has potential for positive and lasting impact on developing
countries, specifically on socially-excluded populations. However, there is a need
for additional monitoring and critical evaluation.
C SR is an increasingly important tool to maximize the positive development

impact of corporations and commercial activity in the developing world. In India,
65
companies, civil society organizations (CSOs)/NGOs, and development partners

have adapted international practices of CSR for better development of the society.
This project has proved that the society stands to benefit from company social
responsibility and that the society is satisfied with the level of social responsibility
undertaken by insurance companies.
A relationship exist between society and business organization because

organizations need the society for its manpower and marketing of its products
while the organization help in so many ways in the development of the society.
RECOMMENDATIONS
Detailed report of spending areas with relevant numbers of people and

activity undertaken.
Basic documentation including photographs, reports, budget, expenditure,
results should be maintained.
Final report should be published as per the act passed by government.
66
The strategies should be reviewed and recommendations should be taken in

consideration for the formation of further strategies.
Different channels for communication should be such as website content,
internal columns , stakeholder columns, films, case studies, reports and
others.
companies are required to spend as per the mandate and the actual current
financial position.
expand the reach and scale of CSR initiatives designed for socially-excluded
populations.
When designing and implementing CSR initiatives, quantify the social
objectives and monitor the results; strategic CSR initiatives should include
both social and commercial goals; proving the business case for CSR
through quantitative data on sales, market penetration, or customer loyalty is
important to justify more CSR initiatives; strong, independently-verified
data on the health and social benefits of CSR for socially-excluded and poor
populations will build community support for CSR initiatives.
Include socially-excluded groups in stakeholder analysis. Stakeholder

analysis is a tool that incorporates the viewpoints of all the various
populations with an interest in a commercial operation. Stakeholders can
67
include customers, suppliers, communities, and government. Stakeholder

analysis can be used for identifying socially-excluded groups that have
potential as employees, distributors, and customers.
Focus on corporate partnerships for scalable projects. Smaller, limited scope

projects can be best carried out by civil society alone. Projects that can be
replicated and expanded to reach a large population are the best fit for a CSR
partnership. Corporate resources may be able to expand the scope and scale
of the project far beyond what could be accomplished otherwise.
BIBLIOGRAPHY
Corporate social Responsibility by Philip Kotler

Corporate Social Responsibility in India by Sanjay K Agarwal
Journal on Companies Act 2013
www.licindia.in
bharti-axagi.co.in
www.hdfclife.com
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CSR BY INSURANCE COMPANIES

Corporate Social Responsibility is achieving commercial success in ways that

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

LIMITATIONS OF THE STUDY

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

Insurance allows individuals, businesses and other entities to protect themselves

OVERVIEW OF INSURANCE INDUSTRY

CSR BY INSURANCE COMPANIES

The insurance industry of India consists of 52 insurance companies of which 24 are

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

THE PHASES OF CSR DEVELOPMENT IN INDIA

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

transparency, social accountability and regular stakeholder dialogues. In spite of

The Fourth Phase

CURRENT STATE OF CSR IN INDIA

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

Also, corporates increasingly joining hands with non-governmental organizations

TYPES OF CORPORATE SOCIAL RESPONSIBILITY

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

STEPS TO ACHIEVING CORPORATE SOCIAL

When formulating CSR best practices, insurers should consider customers,

Paying Valid Claims Efficiently

CSR BY INSURANCE COMPANIES

Risk Minimization/Loss Control

CSR BY INSURANCE COMPANIES

Strategic philanthropy involves partnering with charities or organizations in the

CSR BY INSURANCE COMPANIES

Recognition for Human Rights

CSR BY INSURANCE COMPANIES

periodic assessments on the actual and potential impact of business operations on

Socially Responsible Investment

Socially responsible investment describes the process of including non-financial

CSR BY INSURANCE COMPANIES

COMPANIES ACT RELATED TO CSR

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

Committee to consist of at least three directors, including an independent director.

CSR BY INSURANCE COMPANIES

Circular No. 21/2014 clarifies:

CSR BY INSURANCE COMPANIES

Activities under CSR

CSR BY INSURANCE COMPANIES

CSR BY INSURANCE COMPANIES

FORMAT FOR THE ANNUAL REPORT ON CSR ACTIVITIES

1. A brief outline of the company's CSR policy, including overview of projects or

CSR BY INSURANCE COMPANIES

ADVANTAGES OF CSR TO THE COMPANY

Better Public Image

Better and More Media Coverage

CSR BY INSURANCE COMPANIES

Fosters a Positive Workplace Environment

How Nonprofits Benefit