Professional Documents
Culture Documents
Dr R Ramakrishnan ramakrish54@gmail.com
Society is a broad group of people and other organizations, interest groups, a community, a nation. Business and society interrelate in a macroenvironment as stakeholders.
Government
Employees Consumers
CSR
CSR has been defined in several ways. A good definition refers to a company's commitment to operating in an economically, socially and environmentally sustainable manner, while recognizing the interests of its stakeholders, including investors, customers, employees, business partners, local communities, the environment and society at large.
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Complexity and risks Increasing complexity, likelihood and significance of risk and wrongdoing New laws and regulations Greater influence of NGOs and other stakeholders Increased merger and acquisitions 5. Greater likelihood of discovery 24 hour global news, media more aggressive High speed info access and dissemination 6. Greater cost of misconduct Fines, penalties, reputation damages Growing interest on softer CSR issues- social and environmental
CSR Components
Leadership Commitment
CSR
CHINA
Opening global economy Export Driven
JAPAN
Legal compliance Environmental focus Less stakeholder pressures
BUSINESS CASE?
INDIA.
Philanthropy
Community development
EUROPE
Stakeholder approach Anti standard
CSR
Despite the lack of a single definition, by examining different definitions from around the world, it is clear that there are commonly held understandings about what constitutes CSR CSR is now a mainstream approach to business: The movement for CSR has won the battle of ideas CSR commands the attention of Executives Everywhere. (Economist 2005)
Policy statements
Programs Staffing resources Signatories to voluntary standards
Principles (UN Global Compact www.unglobalcompact.org; Ceres Principles www.ceres.org; SA8000 www.sa-intl.org)
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Private Hospitals
Housing Societies
-Donating excess food responsibly -Composting food waste -Featuring profiles and achievements of NGOs / citizens -Spreading social service messages
Examples
Principles first
An implicit sense of ethical business conduct has been the cornerstone of the Tata way in the corporate governance sphere. On issues ranging from customer care and business excellence to financial propriety and more, explicit rules and regulations supplement the traditional values on which the Tata Group companies has been shaped.
BRITANNIA
Bai Jerbai Wadia who single mindedly and commitedly set out to construct low cost baugs or housing colonies in Bombay for lower and middle-class Parsis.
Health care facilities was another area close her heart . With her inspiration, her sons Ness and Cusrow set about building much needed hospitals in Bombay. The Sir Ness Wadia Foundation, a charitable trust set up in 1969. The trustees have disbursed funds to a broad spectrum of causes from scholarships for the disabled to drought relief in Bombay. Their income was Rs1700 cr. Spent 3.4% on CSR. Net profit was Rs.150 cr. Karmayog CSR rating 2/5 Principal CSR activity done in :- healthcare, disaster, general donations
AMUL is a three tier co-operative organization. 1st tier :- Co-operative society at the village, of which; milk producers are voluntary members. They purchase milk form member & sell it to the district level co-operative. 2nd tier :- The district co-operative that processes milk into milk products, markets locally & sells surplus to the state co-operative for national & international marketing. There are 12 district co- operatives managed by a 15 member board elected by nominated representatives or chairmen of the village co-operatives. 3rd tier :- The state level co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF) responsible for national and international marketing of milk and milk products produced and sold to it.
Earnings Of GCMMF
Nurturing its primary members - the milk producers - is the first mission of the GCMMF. Discharge of this responsibility is reflected in the manner in which the GCMMF conducts its business and shares its earnings. The milk from the village co-operatives is purchased at an interim price. So as to maximize the earnings of the milk producers. The GCMMF changes the product profile during the fiscal and directs its sales and marketing activities towards those products that would bring in maximum returns.
Profit of the GCMMF is very low. The net profit (PADT) of the GCMMF during 2003-04 was Rs 7.31 crore against a turnover of Rs 2,947 crore, a meagre 0.25%. Further out of the net profit of Rs 7.31 crore, Rs 4 crore was given as share dividend to the co-operatives. To fulfil its corporate social responsibility towards its milk producers and co-operatives the GCMMF works on razor thin profits and retention of funds
Water is a scarce resource. Almost 200 million people do not have access to clean drinking water. They are committed to improving the situation and believes that the first step is to create awareness in the communities around its factories.
A key Focus area of Nestles Corporate initiatives is to help provide Clean Drinking Water and educate children in schools to conserve this scarce resource.
education & encourages the communities around its factories to send their children to school. Their employees have developed a special play 'Let Us Go to School' for this purpose. It supports local schools, helps in the maintenance of public parks and green belts, facilitates blood donation camps and health awareness programs. All these initiatives strengthen the bond between Nestl India and the community. Their LOGO says GOOD FOOD GOOD LIFE Their income was Rs2200 cr. Spent 4.4% on CSR. Net profit was Rs.250 cr.
Their income was Rs8000 cr. Spent 16.0% on CSR. Net profit was Rs.2000 cr.
The collaboration between ITC and the Government of AP for wasteland development under Indira Kranti Patham was sustained during the year 830 hectares of plantations were promoted through this public-private partnership. In the area of environment, health and safety, ITC is moving towards achieving zero solid waste status through recycling of all solid wastes. Recycling of waste in 2006-07 was 93% as compared to 2005-06 (78.7%) Reduction in usage of plastic bags: School children were given practical lessons on the disadvantages of plastic bags and the adversities faced thereof. Encourage butterfly gardens: A team of experts educated and introduced children to the concept of 'Butterfly Gardens', wherein special plants are grown whereby creating a natural habitat for butterflies to breed.
ITCs e-Choupal
e-Choupal also unshackles the potential of Indian farmer who has been trapped in a vicious cycle of low risk taking ability > low investment > low productivity > weak market orientation > low value addition > low margin > low risk taking ability. This made him and Indian agribusiness sector globally uncompetitive, despite rich & abundant natural resources.
Material Flows
In cyclical natural systems, waste does not exist. Waste = Food.
Raw Materials
Manufacturing Process
Linear Industrial Processes: Waste is created faster than it can be reconstituted to quality resources. Take-make-waste. It is estimated that 99% of the original materials used in the production of, or contained in, the goods made in the US become waste within 6 weeks of sale.
Being Sustainable is Often Just Being Efficient, Which Adds Significant Economic Value
Waste (cost) In (cost)
Industrial Process/Service
Out (revenue)
Basic Economics: What comes in must equal what goes out -reducing waste adds output or reduces input- thus adding revenue or cutting costs!