Professional Documents
Culture Documents
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CORPORATE SOCIAL
RESPONSIBILITY
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A CASE STUDY OF JAIPUR RUGS
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9/17/2013
TABLE OF CONTENTS
Page no.
Chapter 1
Chapter2
Introduction of CSR
Background
Introduction
What is CSR
Characteristics
12
Approach
13
Importance
17
19
25
28
Measures
30
33
Reporting Framework
34
37
42
Background
42
Introduction
43
45
47
Awards
59
Certifications
68
Chapter3
Chapter4
Chapter5
72
Philosophy
73
78
An overview
78
Objectives
80
Basic Approach
81
82
83
Founders Message
84
89
90
Education in JRF
93
96
Health Camps
97
98
110
Community Mobilization
120
122
Conclusion
124
Research Findings
127
Introduction of CSR
Although the subject Corporate Social Responsibility in its present form and
content has gained popular attention only in recent years, its origin can be traced
back to the evolution of the concept of a welfare state. As the pace of
industrialization quickened employers became more and more concerned with the
loss of productivity efficiency due to avoidable sickness or accidents or stoppage
of work due to bad personal relationships. This gave rise to the idea of a welfare
state, which was further strengthened by the growth of democracy and of respect to
human dignity during the last 150 years. The frame work of a welfare state and
with it the concept of social responsibility have thus come to stay in many
countries of the world. The changing image of business in the recent years has lent
further support to the idea of social responsibility. Some public opinion polls in the
1960s and 1970s in United States have left businessman disenchanted.
These polls have revealed that the businessman is viewed as an individual who
does not cares for others, who ignored social problems, who preys upon the
population, who exploits labor, and who is a selfish money grabber. On the other
hand, until these opinions were unveiled, the businessman in America believed that
others viewed him as he viewed himself, as a practical, down-to-earth,
hardworking, broadminded, progressive, interesting and a competitive free
enterpriser. He believed that the society looked up at him as a self sacrificing
community leader, pillar of society, generous to a fault, great supporter of
education, patron of the arts, in short, the salt of the earth. Indeed, the businessman
in the pre-poll days thought of himself as a happy mix of Plato, Gandhi, and
Churchill.
Businesses that engage in CSR typically focus on some or all of the following:
Environment: This requires a look at the environmental impacts of
products and services, as well as what the business does outside the
company to improve the environment. Employees: Its important to ensure
that all employees are cared for adequately. Businesses usually focus on
workplace conditions, benefits, living wages, and training.
Communities: Engaging the surrounding communities is an important part
of not just creating good human capital that can serve the business, but also
securing a reputation that can further establish the business. Regulations:
Respecting regulations to the fullest and often exceeding them is part of
being socially responsible. Crisis Preparedness: Being ready to address
business crises and ensure safety for employees and surrounding
communities is critical. Having plans ready and tried are important in
ensuring minimal losses during times of crises.
Other definitions The World Business Council for Sustainable Development in its
publication "Making Good Business Sense" by Lord Holmes and Richard Watts
used the following definition. "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" The same report gave some
evidence of the different perceptions of what this should mean from a number of
different societies across the world.
Definitions as different as "CSR is about capacity building for sustainable
livelihoods. It respects cultural differences and finds the business opportunities in
building the skills of employees, the community and the government" from Ghana,
through to "CSR is about business giving back to society" from the Philippines.
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On the other hand, the European Commission hedges its bets with two definitions
wrapped into one: "A concept whereby companies decide voluntarily to contribute
to a better society and a cleaner environment. A concept whereby companies
integrate social and environmental concerns in their business operations and in
their interaction with their stakeholders on a voluntary basis".
The brands that will be big in the future will be those that tap into the social
changes that are taking place. - Sir Michael Perry, Chairman of Centrica PLC
There are many situations where social responsibility of a business becomes
necessary. Few of these situations which show the need for Corporate Social
Responsibility are discussed below:
1. A societal approach to business is the contemporary business philosophy,
which demands business organizations to be responsive to the social
problems.
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12
Approach to CSR
Triple Bottom Line Concept (TBL)
Triple Bottom Line Concept (TBL) was introduced by Ellington in 1999. Triple
bottom line is a unique approach to community development that integrates
environmental stewardship, sustainable development and social justice. The triple
bottom line is made up of "social, economic and environmental" the "people,
planet, profit" phrase was coined for shell by sustainability.
13
Triple Bottom Line efforts are as varied as the organizations and communities in
our state wide network. This approach is flexible and innovative, creating new
economies that protect, enhance and restore natural, cultural, historic and
community resources.
The Triple Bottom Line standards for:
Economic (Profit).
Social (People).
Environment (Planet).
Economic (Profit):
This is more about making a honest profit than raking a profit at any cost - it must
be made in harmony with the other two principles of People and Planet. While
many major corporations used to sneer at the idea of a Triple Bottom Line
reporting system. With a positive flow on effect to their suppliers. because supply
chains are also accountable to the overall impact of a company.
A narrow concept of economic sustainability focuses on the economic
performance of the corporation itself: the responsibility of management is develop,
produce and market those products that secure long-term economic performance
for the company. This includes a focus on strategies that lead to a long term rise in
share price, revenues and market share rather than short term explosions of profits
at the expense of long term viability.
Social (People) :
This is also known as Human Capital. It really just means treating your employees
right, but furthermore also the community where your business operates. In this
part of the Triple Bottom Line model, business not only ensures a fair day's work
for a fair day's pay; but also plods back some of its gains into the surrounding
community through sponsorships, donation or projects that go towards the
common good.
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The key issue in the social perspective of sustainability is that of social justice
.Despite the impressive advances in standards of living that many of us have
enjoyed; there are growing disparities of income and wealth within many
countries. In a more just an equitable world, living standards will lead to more
economic prosperity.
15
Environment (Planet):
This is Natural Capital. A business will strive to minimize its ecological impact in
all areas - from sourcing raw materials, to production processes, to shipping and
administration. It's a "cradle to grave" approach and in some cases "cradle to
cradle" i.e. taking some responsibility for goods after they've been sold - for
example, offering a recycling or take back program.
The importance of Triple Bottom Line reports are:
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Importance of CSR
17
18
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20
22
In general
Develop new environmental and social products and services; innovation
brings competitive advantage.
Share CSR lessons learned with business customers, business neighbors and
fellow members of a trade association or business organization.
Explain the environmental, social and economic performance of the business
to stakeholders and consider their ideas and views as the business develops.
Commit to an external code or standard or a set of business principles that
provides a framework to measure progress on environmental, and social and
community issues.
24
The Bill, which will now travel to the Rajya Sabha, has said companies must
"ensure" they spend at least 2 per cent of their net profit towards corporate social
responsibility (CSR) activities, a move that has drawn both criticism and
appreciation from the stakeholders but one that promises to change the way CSR
has been perceived so far. Corporate affairs minister Sachin Pilot said
CSR would be mandatory for companies like their tax liabilities. "Severity of law
is not deterrent, it is surety which is deterrent," he said, adding the companies may
engage in promoting education, reducing child mortality and any other matter they
feel can contribute for social welfare.
The Bill has gone through several versions since 2008 when it was first introduced.
It includes learnings from the Satyam fiasco in its investor protection clauses. The
government has also introduced the concept of class action suit wherein depositors
or a unit of shareholders can collectively sue the company committing fraud. The
Bill will also provide the serious fraud investigation office (SFIO) with powers to
conduct searches and seizures on the premise of a fraudulent company. While
steering the Bill, Pilot said when Companies Act, 1956, was promulgated there
were only 30,000 companies in the country while in 2012, there are 8,50,000 firms
in India.
Apart from introducing concepts like one Person Company and making
independent directors and company auditors more accountable, the Bill also seeks
to keep a tab on remunerations for the board of directors and other executives of
the companies to protect the interest of shareholders and workmen. Disapproving
of "vulgar display of wealth", Pilot said the law provides that remuneration of a
director of a company should not be more than 5 per cent of the net profit.
The new legislation, which is a much shorter than the earlier one has also
harmonized the company law framework with sect oral regulations. It has 480
sections compared to over 600 sections in the 1956 Act.
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CEC S Y Qureshi came down heavily on corporate India regarding CSR, saying
that "CSR is not charity but a question of your very survival".
The author has posted comments on this article PTI | Jun 13, 2011, 09.25PM IST
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ISO 26000
Purpose- ISO 26000 provides guidance on how businesses and organizations
can operate in a socially responsible way. This means acting in an ethical and
transparent way that contributes to the health and welfare of society.
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While mandating CSR spends for the corporate, the Government has also ensured
that such spending is monitored in the form of reporting and disclosure.
Business Responsibility
The Minister of State for Corporate Affairs, Sachin Pilot, who pushed the issue in
Parliament after the Bill was finalized by the Cabinet and approved way back in
2009, has said that the provisions of corporate governance and CSR in the
Companies Bill are based on UN principles and cover human rights, labor
standards, environment and even corruption.
The intention of the Bill is to eradicate extreme hunger and poverty, promote
education, enhance vocational skills and empower women.
Improved bottom-line
38
The new Bill says larger corporate should contribute to society, especially the
communities in which they operate, by setting aside 2 per cent of their net profit
towards CSR. Since CSR spending will be tax-free, there is an opportunity for
Indian corporate to embrace a few large consensual projects that could make social
commitments visible to all.
The need for CSR has its roots in the fundamental moral thought what and
how much has been given back over and above what you have taken from society.
CSR is often referred to as business responsibility in other words, an
organizations action on environmental, ethical, social and economic issues. It was
soon realized that promoting a responsible way of doing business actually
improved the bottom-line. Now, demonstrating a wider sense of responsibility has
come to be expected when bidding for major contracts.
Section 135 of the Companies Bill provides that the functions of the CSR
committee shall be to formulate and recommend a CSR Policy which shall indicate
the activities to be undertaken by the company as specified in Schedule VII of the
Bill.
The CSR committee shall also deliberate on the amount to be incurred on activities
mentioned in the CSR Policy. It shall also monitor the CSR Policy from time to
time.
The companys board, after receiving the panels recommendations, will adopt a
CSR Policy and ensure that the activities it mandates are undertaken.
The board must ensure that the company should spend for CSR, every financial
year, at least 2 per cent of the firms average net profits recorded in the three
immediately preceding financial years. The company is expected to give
preference to the areas around which it operates in spending the amount earmarked
for CSR activities.
39
If the company fails to spend such an amount, the Board shall, in its report specify
the reasons for not doing so.
The company shall not select a project that earns profit for the company, but rather
take on work that benefits society.
The new company law has made it mandatory for all companies, listed or unlisted,
to have independent directors forming one-third of the board.
INDEPENDENT DIRECTORS
These independent, or non-executive, directors are those who have no material or
pecuniary relationship with the company or related persons, except for sitting fees.
In the US, independent directors make up 66 per cent of all boards. In India .the
expression independent directors means directors who, apart from receiving
director's remuneration, have no other material pecuniary relationship or
transactions with the company, its promoters, its management or its subsidiaries,
which in the judgment of the board, may affect the independent judgment of the
directors.
A large number of people working in NGOs or running an NGO will be benefited
when these companies appoint them as independent directors to run their CSR
initiatives.
Socially responsible business houses, such as the Tatas and Birlas have, for
decades, contributed immensely through their various charitable and welfare
Trusts.
Such Trusts have been the guiding lights for smaller entrepreneurs who fund
various small social causes in their areas of operation or in their home towns and
villages.
40
For some, the interface between CSR and the law might seem like a contradiction.
Compliance could seem forced, as if the expenditure is an additional cost of being
in business. Yet, there is an opportunity for responsible and concerned boards to
improve relationship, enhance a reputation and build a corporate brand. A synergy
between CSR and the law will eventually help.
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JAIPUR RUGS is India's largest manufacturer and exporter of hand knotted rugs,
known globally as a leader in hand-woven rugs category. The artistic designs,
tantalizing color combinations and the comfort feel of our products make
JAIPUR's rugs the first choice around the world.
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Over the years, JAIPUR has continued to carry forward the rich heritage of designs
into homes in more than 40 countries around the world.
They produce an exclusive product range of rugs, pillows and poufs in numerous
fabrics with atheist colors and sophisticated textures. With diversity in its
collection and categories JAIPUR facilitates its customers with explicit selection of
traditional to transitional tranquil surfaces expressed in leveled piles and flat
weaves.
An expression to the visions of its founder, Mr. NK Chaudhary, JAIPUR Rugs is a
product of love and humble being, which is produced by its extended family of
thousands of artisans spread in different states of India. Empowering the grass
roots, by providing them with sustainable livelihoods by introducing them to the
carpet value chain, has not just given value to the business of Jaipur Rugs but has
also extended its horizon of developing the society all together.
It has a network of around 40,000 skilled artisans in rural India. They have linked
the grassroots to the most elite and luxurious icons of the world. The business
model of JAIPUR RUGS has woven happiness and smile into the life of rural
artisans by providing them sustainable livelihood. With its base of operations in
Jaipur city, also known as Pink City of India, the brand takes the artistic
craftsmanship of hand-woven rugs to North America through its unit in Atlanta,
Georgia (USA) and representatives across USA and Canada.
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Fast Facts
40,000 home-based artisans spread across 700 villages in 7 states of India
80% of its artisans are women.
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Year-1978
In 1978 Mr. Nand Kishore Chaudhary stated his carpet business with just 2 looms
and 9 weavers in Rajasthan. It was a very small set up. With constituted efforts,
determined hard work and dedication led to expansion of his business from 2 to 10
looms within three years.
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Mr. N K Chaudhary started exporting carpets on his own. Now he did not had to
depend on other exporters in getting work orders and supplying finished carpets to
them.
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In the joint business with his brother, Chaudhary expanded production from
Rajasthan to Gujarat. In this new place he faced many challenges while working
with Tribal, SC/ ST and other backward classes. People abused him and made fun
of him for working with the untouchables, yet he continued working amidst all
challenges. Chaudhary stayed and ate with the tribal people, understood them and
their lifestyle and brought their traditional designs on the carpet.
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Year-2000
Artisans network crosses 10000- Jaipur Carpets expanded its business and along
with it grew the chain of its weavers working in small villages of Rajasthan and the
tribal area of Gujarat.
2001- Asha Chaudhary joined as CEO
Mr. Chaudharys eldest daughter Asha Chaudhary joined the business after
completing her graduation from Emory University, Atlanta, USA. She leant and
understood the business, and brought about the necessary changes in its
functioning according to the market. Her in-depth knowledge about marketing and
sales and leadership gave a new boost to the business of Jaipur Rugs. Few years
later, she moved to USA to head JRI, as its CEO, and started taking care of all US
Sales and other operations.
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Major Additions took place- Jaipur Carpets was renamed as Jaipur Rugs Company
Private Limited (JRCPL). And Chaudharys eldest son, Yogesh Chaudhary and
youngest daughter, Kavita Chaudhary joined the business. Yogesh Chaudhary
today is the director of JRCPL. He takes care of the direct sales and marketing of
JRCPL. He has added a whole new IT infrastructure to meet the international
standards. The cutting edge technology introduced by him has elevated the work
culture of the company altogether.
Kavita Chaudhary heads the Design Department of JRCPL. With her entry, she has
added a whole new catalog of designs and colors to the palate of JAIPUR. Her
innovative ideas and design sense has instilled a new spirit into the design of the
carpets. Her research and experiments with the needs of customers has colored the
carpets of Jaipur to stand as pioneer in the carpet industry.
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Excellence
Award
by
the
Institute
of
Economic
Studies
'Best SME for CSR ' by Business Today & Yes Bank Year 2009,
added valuable recognition to the company, moreover because of the case-study
done by Mr. Chaudhary on Jaipur Rugs, which was published in his book The
Fortune at the Bottom of the Pyramid. His study brought great appreciation to the
company, to Mr. Chaudhary and his business Model. Mr. C.K. Prahalad recognizes
Jaipur Rugs as one which is able to develop the grassroots and further connect the
rural poor to the markets of the rich, like the USA. Other than this, there were other
added recognitions and awards majorly the Excellence Award by the Institute of
Economic Studies for the business functioning and growth as well as the 'Best
SME for CSR ' by Business Today & Yes Bank, for the benefit gained by the poor
through this business.
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Awards
1994 - Carpet Export Promotion Council of India gave the Gold Trophy
Award to Mr. N K Chaudhary
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2010 - Ernst & Young Entrepreneur of the Year Award 2010-Start Up' by
Ernst & Young, India
Indian Achievers Award For Business Excellence by Indian Achievers forum.
With growing recognition came a series of awards. Mr. NKChaudhary was
acknowledged with the global business award of Ernst & Young Entrepreneur of
the Year-Start Up 2010. This award commemorates and encourages the most
resilient of Indian entrepreneurs. NKCs innovative thinking and entrepreneurial
success became synonymous of his victory. Jaipur Rugs attained the Indian
Achievers Award for Business Excellence, bestowed by Indian Achievers Forum
for corporate social responsibilities.
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2013- TOI Social Impact Awards under the Livelihood- Corporate Category
Jaipur Rugs was awarded with the TOI Social Impact Awards under the
Livelihood- Corporate Category, for providing livelihood opportunities for people
living in remote distant areas mostly under the poverty belt. The Times of IndiaSocial Impact Awards are an attempt to honor and publish the activities of those
who are making constant efforts to bring about a change in the society on large
scale, by providing the essential aids like education, healthcare and decent
livelihoods.
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Certifications
STAR EXPORT HOUSE
Jaipur Rugs Company Private Limited was conferred with STAR EXPORT
HOUSE. This is recognition by the Director General Foreign Trade, Ministry of
Commerce, Government of India for stupendous export performance over the
years, its continual growth in turnover and earnings from export of goods. The star
export house recognition is given to organizations for continual growth and
stability in the export performance over the years in efficient management system.
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ISO 14001 is an internationally accepted standard that sets out how you can go
about putting in place an effective Environmental Management System (EMS).
The standard is designed to address the delicate balance between maintaining
profitability and reducing the negative environmental impact. This award is to
ensure compliance with environmental legislation and reduces the risk of penalties
and possible litigation.
D&B
Jaipur Rugs Company private limited received the DUN & BRADSTREET
certification.
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ISO 9001:2008
ISO 9001:2008 certifies quality and Jaipur rugs is a certified company for its
quality production standards. The reason of our progressive growth is our range of
quality products which are accepted globally. A quality management team to
supervise the quality checkups by the time of production and before shipment of
the products. We always strive to provide our clients quality products and get the
maximum customer satisfaction by providing world class customer service.
SA 8000: 2008
SA 8000: 2008 Jaipur Rugs is the first company in India with Design,
Development, Manufacturing and Export of Handmade Carpets and Floor
Coverings scope and 11th carpet company to receive SA 8000 certification in
India. This certification is given as recognition of its functioning with 40000
people from the remote distant areas, who are working well within governmental
norms and in an efficient management system.
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RUGMARK
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Philosophy
Coming together is a beginning. Keeping together is progress. Working
together is success.
JAIPUR is a creation of love, dreams, aspirations, courage and one vision.
Growing with the society in ways that we could give back, it has evolved over the
years with compassion running into its essence. A foundation was established to
promote overall well fare of the artisans and their families. As a responsible
company, we work in a way that the community at large is at benefit.
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Largely, living the thoughts of its Founder, Mr. NK Chaudhary finding yourself,
through loosing yourself, a way to look at life where your acts represent you.
JAIPUR believes in giving in your soul to all that you do, you shall find out a new
being in you with your giving in to your work a complete true involvement
resulting into smiles of many - many artisans. Chosen the way to function its
business around the talents of the rural India- adding value to one such minute
handcraft- carpet weaving- JAIPUR is a continuous effort to build the skills of
such artisans and give recognition for them.
Embracing purity in its essence, from its roots to body, its a family of pure people,
filled with passion and empathy. With transparency running in its system, it values
commitment which is set to come from a disciplined momentum of life gained
from freedom of mind. JAIPUR strongly believes in giving love to its people,
society and its esteemed customers.
Vision : We look upon business not merely as a source of income or profit, but as
a way of life, as a medium for putting our talents to good use, while at the same
time exploring an opportunity to promote holistic community development.
Mission: "Service to the community" is our motto. Our company strives towards
this to make the society grow hand in hand with our own growth and prosperity.
We ensure that the skills of our weavers are matched by the needs of our
customers.
Organization: India (Jaipur Rugs Company Pvt. Ltd.), USA (Jaipur Rugs Inc.)
China (Jaipur Rugs Company)
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Infrastructure: Jaipur Rugs has the best of the infrastructures to match the
requirements to operate at the global level, to compete with the products and
support systems that are one of the best in the industry. Jaipur Rugs has been
regular in updating the infrastructure needs of its business at the most efficient
levels.
From 1978 to now they have grown from just 2 looms and 9 artisans to 40,000
artisans servicing over 7,000 looms. Majority of these artisans are illiterate women
from the most backward classes like the SC/ST/OBC/minority communities who
are residing in the remote villages in India. This network of weavers is maintained
closely by their branch offices in different states.
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Jaipur Rugs has its roots grounded in 5 different states being- Rajasthan, Gujarat,
Uttar Pradesh, Bihar and Madhya Pradesh. The weavers collectively give an annual
production of approximately 5 thousand million square feet, constituting of all
kinds of rugs namely, hand knotted, hand-tufted, hand-loom, punja weaves and flat
weaves. Ranging in various collections and categories, with a variety of textures
primarily silk, wool, polyester, nylon, cotton etc. the products undergo numerous
processes and manual labor. Alongside, two recent additional states being
Maharashtra and Jharkhand, where training processes have begun and will soon
start contributing to the actual production.
Jaipur Rugs have its carpets in the elite homes of over 40 different countries across
the worldwide. The USA is the major market of rugs where about 65% of its sales
are done. This is followed by Turkey, Canada, Mexico, Germany, Australia,
Russia, Spain, Italy, Romania etc, where its products are sold.
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Jaipur Rugs has an in-house team of Designers and developers working on creating
new designs as well as further facilitating the existing designs. Restructuring the
created designs in new sizes, or different colors at times even with different
materials, this kind of processing is done by experienced and talented professionals
with assistance of latest technologies of software and hardware. Printing of maps,
their instruction base as well as laminations along with many more functioning is
done at its design and development department.
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An Overview
Jaipur Rugs Foundation (JRF) was established under the Rajasthan Public Trust
Act in the year 2004 by Mr. Nand Kishore Chaudhary, Founder of the JAIPUR
group. JRF is a non-profit organization that catalyzes sustainable livelihoods for
people engaged in the entire carpet value chain by empowering them to establish
collective enterprises through enhancing their artisanal and business skills. The
overall work mandate of JRF is to reach out to remote rural areas and establish
bonds with the undeserved communities, especially women, enabling them to start
weaving not just rugs but also their own lives.
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Its core focus of JRF is to provide skill building and skill up-gradation training to
those artisans who are associated with carpet weaving and thereby substantially
increase their income. Since most of the artisans involved are women, increased
income will make meaningful contributions in alleviating poverty. It facilitate
income generating opportunities at the door steps of artisans residing in the
remotest of the locations and forward & backward linkages with the aid of its
strategic partners.
Vision
The vision of JRF is to create a society where equality, justice and peace prevail
through socio-economic development opportunities for all.
Mission
The mission of JRF is to serve as a social innovator promoting the cause of artisans
by providing them with decent work opportunities and lead them towards their
socio-economic well-being.
Geographic Presence
With its head office in Jaipur, Rajasthan, India, Jaipur Rugs Foundation has its
operational presence in rural locations of five states of India: Gujarat, Rajasthan,
Uttar Pradesh, Bihar and Jharkhand. And functional planning involves spreading
its wings to Madhya Pradesh as well.
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Objectives
To enhance economic returns for artisans through global market linkages.
To connect artisans with the end customers, thus building relationships and
infusing human touch to the carpet value chain.
To serve as a forum for artisans and enable them to put forward their cause
and fulfill their aspirations.
To innovate and develop equipments and process for easing out the working
of artisans.
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Founders Message
When we started laying the groundwork of Jaipur Rugs Foundation in 2004, we all
had the same dream: to take each rug crafting artisan by hand and prove them that
they can sustain a dignifying life. The team is now putting at work each day an
ancient principle that says Give a man a fish; feed him for a day. Teach a man to
fish; feed him for a lifetime. With one exception: we teach the women, mostly.
I believe that happiness comes from simplicity and dignity in life and that all
human beings have potential and desire to grow and develop themselves.
I learned that efforts to develop skills create poverty reducing synergies, provide
the artisans with the sense of dignity and increase their confidence in their own
potential.
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Still, the challenge of the world is to find sustainable ways to better the lives of
people living in extreme poverty. Our key is empowerment not charity: we offer
opportunities for artisans themselves to find a way out of poverty and bring
prosperity to their homes.
At Jaipur Rugs Foundation, we are a team of people that works to support rug
crafting artisans to gain a greater sense of ownership and become small
entrepreneurs.
My vision is to link our grassroots with the global buyers and create shared value
for both sides. JRF is the outcome of my long cherished goal of fostering socio
economic development of rural poor through collective action by multiple
stakeholders. It is our consistent endeavor to transform the core values like love,
empathy, commitment and conscience into our systems, processes and people so
that we always remain close to the weavers and the customers.
NK Chaudhry
(Founder)
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The foundation is based on the concept of 3Es- employment for the unemployed,
employability for the artisans and developing them as entrepreneurs. Jaipur Rugs
Foundation collaborates with the Panchayati Raj and local government bodies to
motivate the artisans to develop their capacity building, technical knowledge,
quality control and provide them with credit facilities.
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Source of incomes
Per day earning
Existing issues
Introduction to SHG
Benefits of SHG
Benefits of carpet weaving
Awareness about health and education of its members
In mobilization phase, the artisans are mobilized in carpet enterprise groups. Each
group will collect savings and do inter- loaning also. They also meet once a month
to discuss their progress and also what they plan for the future. These activities
create a sense of belonging between them and also create a spirit of togetherness.
After some time, these groups can be registered as a producer company also.
After mobilized phase, the capacity building is carried out to enhance the skill set
of people, by focusing on carpet- weaving skills and technological up gradation.
The groups are trained through a series of skill training programs in design
development and improve production and productivity to increase earnings.
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Education in JRF
Jaipur Rugs Foundation also organizes campaigns to create
education among rural weavers. Various motivational seminars
Jaipur Rugs Foundation to motivate the rural weavers and
participate in Pravesh Utsav, a programme conducted by
department during July in all government schools to enroll all
eligible in school.
awareness about
are conducted by
their children to
the government
children who are
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JRF is a firm believer of educating the mass on the whole. Literacy is necessity,
and JRF functions towards spreading awareness and providing knowledge. Other
than teaching the weavers about numerical and literal alphabetic knowledge, the
foundation draws attention upon other fundamental aspects of day to day life.
Concentrating mainly towards educating the females, continued sessions are taken
to teach the women how to read and write; at par letting them perform signatures
rather than thumb prints. Mobilizing them to be able to be able to use cell phones/
mobiles!
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Along with this, bringing consciousness about health issues, aspects of hygiene and
family living, about cleanliness and environment shaping. Talking upon issues like
family planning, monetary keepings, and life skills are another agenda upon the
JRF teachings.
Other than these necessities, JRF also touches upon building communication skills
and managerial aspects of the weavers, as the motto of Jaipur Rugs Foundation is
each artisan an entrepreneur.
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Health Camps
The Health Camps are organized in villages so as to enable the poorest of the poor
to avail expert check-up and treatment along with free of cost medicines. These
camps are useful in treating the general ailments and the severe health issues are
referred to hospitals for complete treatment. These camps help in not only treating
the patients but also in identifying potential health disorders which if otherwise
unattended may eventually develop into a serious ailment. These are taken up in
partnerships with local healthcare providers.
These camps are useful in treating the general ailments whereas the severe health
issues are diagnosed and are referred to hospitals for proper care. These camps
help in not only treating the patients but also in identifying potential health
disorders which if otherwise unattended may eventually raise their healthcare
burden. These generally include ENT, Eye checkup, Orthopedic services, Dental
services, Gynecological services, Pediatric cases, Pathology facilities and Medicine
support. As per the need, transportation facility is also provided to those who have
limited mobility.
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The 'Swarnjayanti Gram Swarozgar Yojana' (SGSY) Special Project is under the
overall ambit of National Rural Livelihoods Mission by the Ministry of Rural
Development, Government of India. JRF has been chosen as an agency to train
4000 rural youth living below poverty line (BPL) and transform them into skilled
artisans in carpet weaving. The project is being implemented in Uttar Pradesh and
Gujarat state of India.
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Jaipur Rugs Foundation also encourage artisans to be creative not only with what
they are doing but also with their imaginations. Few of artisans have weaved their
own designs and those pieces have turned out to be magnificent! These rugs are
not only exclusive designer pieces today but also carry the complete route planning
of it in their minds. Yes! I mean weaved out completely through imagination and
no maps!
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Artisan Cards
The Artisan Cards are issued to the artisans by Development Commissioner
Handicrafts and the local nodal entities are district industries center. But due to
lack of awareness and low levels of accessibility, the artisans are unable to get their
cards made. JRF acts as a link and bridges this gap by assisting the illiterate
artisans in getting their card by doing all the paper work involved in the process.
These artisan cards let the artisan take up a credit facility worth thousands of
rupees from the government.
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On successful completion of the training, the skilled artisans are given job work in
their own localities, either at the same loom that was utilized for training or on a
nearby loom located at a walking distance from their households. Thus, both the
trainings as well as livelihoods are provided to the village community in their local
settings and they are not required to out migrate from their rural habitations in
search for sustainable livelihoods.
It focuses on providing carpet-weaving skills and technological upgradation to the
weavers. It also trains them in design development and loom operations and also
enhance the skill set of weavers.
Skill and design development training: under this programme, training is provided
to individuals, not skilled at carpet weaving.
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India is filled with talent and rug weaving is not a new technique for many. Hence,
JRF conducts Skill Upgradation Trainings for those weavers who are already
acquainted with the art of weaving. This kind of training involves teaching them to
meet the new standards as per the demand, to be set to work upon the Jaipur Rugs
standards, teach them the latest technique or using of some new tool.
These upgradation training are essential both in terms of meeting the market
standards and for continual motivation of the workers. They uplift the psyche of
the artisans and help put forward better and efficient results.
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Jaipur Rugs, by setting up its own offices in the production areas, has innovated in
establishing direct linkages with the artisans and it has ensured that the artisans
enjoy enhanced earnings through such supply chain linkage. The transport is also
taken care of for sending the raw material to the artisans and bringing back weaved
products, thus relieving the artisans of the burden of spending their own time and
resources for doing so.
Inspiring artisans
In our visit we gained exposure to the amazing work of the organization. This
included meeting artisans and quality supervisors that have been able to refine their
craft and increase and stabilize their income.
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Secondly, the organization, as it has grown, has faced challenges in instilling the
founder's values into employees, as well as finding new, passionate staff to meet its
growing needs. It was clear that in a small organization, where each employee is
able to interact with the founder and visionary, this is relatively easy. When an
organization reaches the size of Jaipur Rugs (350 people), and is looking at
succession planning, this becomes more difficult.
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Community Mobilization
JRF reaches out to the rural communities and spreads awareness about carpet
weaving as a vocation and their potential gateway for sustainable livelihoods. The
thrust is on locating and training the target populace to transform them into skilled
artisans and alongside, exploring how their collective strengths may be developed
further so as to enable them become life entrepreneurs.
Such awareness generation also takes the form of exposure visits of the unskilled
populace to those sites where skilled artisans are engaged in carpet weaving with
the support of JRF.
The main objectives of such exposure visits are: to enable the unskilled persons to
take a firsthand look at how skilled carpet artisans work in the looms; to facilitate
interactions between the potential skill development trainees and the previously
trained artisans; and to acquaint the unskilled persons with the different steps
involved in carpet manufacturing, especially weaving processes.
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This enables the people who are interested in enrolling for skill development
training to take informed and well thought decision over taking up carpet weaving
as a vocation and star considering it as a sustainable source of livelihood.
The recent JRF efforts towards community mobilization have been in the rural
locations of Bihar and Jharkhand. In Bihar, such work was carried out in the
villages of Madhubani and Darbanga. In Jharkhand, the district under focus had
been Deoghar. The field operations were started in the previous years and so far
the focus of the interventions is primarily on enterprise development, especially
skill development and upgradation in carpet weaving.
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Non-biased attitude
May it be a worker or an engineer or a driver or any administration staff, we give
equal treatment to all. Never do employees feel that some are favored and others
are not.
Involvement of all
We have been successful involving people of all cadres at the refinery level, right
from the managers to the workers, and from the various departments to the
different unions. This helped us to get the opinions and contributions of all.
At the community level, all the people are involved right from the planning level.
People take decisions along with us.
Human stories of revival helped
We had many success stories of our employees which constantly motivated us to
work consistently. The recovered addicts are our strength. They help us to help the
others who are in similar problem.
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Conclusion
CSR does not come free. It involves a real commitment of resources, management
time and energy. Single money invested in the health of female employees can
yield more than lot of money in business benefits. In addition, the improvements in
human well-being are incomparable.
Its clear that India is an emerging country with immense opportunities and that it
can take in all the CSR activities that are there for the grab. But from the evidences
provided above, it's clear that CSR failed when companies tried to put an act of
their own for their own good.
JAIPUR RUGS immensely helped the Indian society with their CSR initiatives,
can afford to do it as they are Indian companies with a great common man
bonding.
JAIPUR RUGS is making progress in taking on wider responsibilities and devising
relevant projects that work on the ground. It has done this with help from NGOs
and organizations. Its approach with is not purely about business benefits, but
focused on making a difference to the lives of its supplier workers.
JAIPUR RUGSs ongoing involvement with the women workers in rural area and
other supplier will help to provide it with a sustainable and ethical business model.
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Acting ethically involves making the right choices doing the right thing.
JAIPUR RUGSs seeks to adhere to its values by taking care of its employees,
maintaining ethical relationships and respecting human rights. By engaging with its
many stakeholders, including factory owners and workers in countries rural area in
the production of Rugs, Pillows, Poufs it ensures that everybody gains from the
business process and everyone is treated fairly.
So, we can conclude that Jaipur Rugs Foundation is also involved in mobilizing
people, so as to increase the villagers participation in carpet weaving programme,
through their motivational seminars and follow up seminars, through PRA and
rapport building exercises with the villagers.
They do so, by meeting with the villagers, and also follow up meetings with them
to ensure that those willing and passionate enough and also are motivated are not
left out. They have specially created a post of mobilizers to carry out this job.
Panchayat representative, village headmen or the gram pradhan were always
informed about how the project is going on, and they regularly visited the centre to
infuse enthusiasm in the employees, to motivate them and also increase their
participation in the activities.
After mobilization phase, only other stages like capacity building, training, quality
checking and providing market linkages are followed. Through their various
programmes, they are also providing sustainable and continuous incomes to the
women; by mobilizing them through meetings and follow-up meetings they are
also helping in their skill development and employment generation activities.
Also, as in mobilization phase in ideology the emphasis is on mass appeal, centers
on issues of deprivation and collective participation; the ideology of the
organization is to increase the participation of more and more employees by
emphasizing on mass appeal and stress on issues of deprivation and collective
participation.
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Research Findings
1. It was found that Jaipur Rugs have adopted CSR mechanism. Jaipur Rugs
have stated in their vision & mission in such a way which would help to
fulfill the CSR also.
2. Jaipur Rugs is doing innovation to find out some creative ways which may
use lesser amount of resources to produce the same quantity of the products.
3. It was also found that Jaipur Rugs dont want to earn profit at the stake of
society. Jaipur Rugs is fully aware about their responsibility towards society
at large.
4. Study has also shown that when company is performing its social obligation
in well manner, it creates good image in the mind of general people. It
becomes trustworthy organization. So, without even advertisement and
promotions Jaipur Rugs become popular.
5. Now customers are also smart enough, they know who is doing what and
they also understand the importance of Corporate Social Responsibility.
Hence, they dont mind to spend extra penny to make a contribution towards
safety of the environment on their own part. So, they become loyal to
particular organization if the organization is doing good for the society.
6. Employees are also engaged with this kind of organization which reduces
the employee turnover.
7. With the help of above study we can say that CSR plays a vital role in
overall development.!
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