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A social way of life is what man was born for over centuries, development of social
lifestyle and progress blurred the benefits of living the same class differentiation and social
distinction decayed the society and it reaped unfruitful returns, till consciousness took us
back to our roots!
Shouldering corporate social responsibility is a sustainable way of life. It teaches one
healthy living and a future full of bloom of goodness and life force energy!
Organisation life Wipro, Infosys, ulti ! "ationals like #oke, c $ and %rusts like
&amakrishma ath, IS'O", #hinmaya ission, issionaries of #harity by other %eresa,
Sri AurobindoAshrama and many other societies have taken up the task of the regenerating
broken pieces of society.
$eveloping "(O)s is not merely a money laundering pro*ect, but a part of building a
society which is growth oriented and progressive.
%he paper talks about a few such pro*ects which has gone beyond the ordinary in
nurturing and enriching the $evelopment of "(O)s through #orporate Social &esponsibility
and also the different avenues that are available to small business houses to help developing
"(O)s and give a little bit of their contribution in terms of their presence towards the
development of the society as a whole.
Adv. +rancisco $sou,a
ob- .//001120/
+ounder- #omman an)s 3oice 4 Welfare Association 5 "(O
India is a country where a large number of people are not benefited by the economic
development of the country. India is now considered among the few nations in terms of
growing economic power and yet a large percentage of the people are living homeless. India
is among the top three producers of agriculture and mild products, yet a little less half the
population of children living in India under the age of five are underweight. %his variation
shows the une9ual distribution of economic development and uneven distribution of benefits
of growth.
Our constitution clearly lays down the right to e9uality to every citi,en of the nation, however
matching the gap between the e9uality of socio5economic conditions which are the main
ob*ectives of independent India has yet to be achieved.
India after Independence is been considered as a developing nation and yet one thirds of the
world)s poor are in India. In /:;: the World <ank reported =/.>? of India)s population fall
under the International @overty Aine living on less than BSC ;./1 per day while D2.>? live
on less than BSC / per day.
%he urban areas where India)s middle and upper classes make their living have seen the
greatest degree of economic growth, while the rural areas have lagged further behind. Since
;..;, India has undergone a great deal of liberalisation internally and e7ternally, but its
benefits have mostly gone to the middle and upper classes.
%he latest B"I#6+ data shows that one in three malnourished children worldwide are found
in India, whilst 0/? of the nationEs children under five years of age are underweight. It also
shows that a total of 12? of children under five surveyed were stunted.
%he term "(O encompasses a vast category of organi,ations, groups and associations of
people spread all over the world. $ifferent sources refer to these groups with different
names, using "(Os, #ivil Society Organi,ations F#SOsG, @rivate 3oluntary Organi,ations
F@3OsG, charities, non5profits charitiesHcharitable organi,ations, third sector organi,ations
and so on.
%he World <ank, for e7ample, defines "(Os as Iprivate organi,ations that pursue activities
to relieve suffering, promote the interests of the poor, protect the environment, provide basic
social services, or undertake community development.J A World <ank 'ey
$ocument, Working with "(Os, adds, IIn wider usage, the term "(O can be applied to any
non5profit organi,ation which is independent from government. "(Os are typically value5
based organi,ations which depend, in whole or in part, on charitable donations and voluntary
service. Although the "(O sector has become increasingly professionali,ed over the last two
decades, principles of altruism and voluntarism remain key defining characteristics.J
%hey encompass a wide variety of groups which may be corporate5funded, community
groups, grassroot activist groups, development and research organi,ations, advocacy groups,
operational, emergencyHhumanitarian relief focused, and so on. "(O)s are now filling the
gaps where the government cannot.
%he World <ank document points out that ISince the mid5;.>:s, the "(O sector in both
developed and developing countries has e7perienced e7ponential growthK. It is now
estimated that over ;1 percent of total overseas development aid is channeled through
"(Os.J %hat is, roughly C2 billion dollars. &ecogni,ing that statistics are notoriously
incomplete, the World <ank adds that there are an estimated D,::: to =:,::: national "(Os
in developing countries alone, while the number of community5based organi,ations in the
developing world number in the hundreds of thousands.
%here is therefore a necessity that such organi,ations must operate as a non5profit group.
While in that respect, "(Os are meant to be politically independent, in reality it is a difficult
task, because they must receive funding from the government, from other institutions,
businesses andHor from private sources. All or some of these can have direct or indirect
political weight on decisions and actions that "(Os make.
Some have observed that in a way then, the comple7 group termed "(Os are seen as the
weaker part of a triumvirate, or Ithird sectorJ to counter the other two sectors, the state and
the market.
It is suggested that "(Os are a natural outcome of a free democratic and capitalistic society.
%he idea is that as market forces re9uire more and more rela7ations of rules and regulations
for their benefit, society will naturally demand social *ustice to balance out negative aspects
of market forces such as e7ploitation and environmental degradation.
"(Os are typically weaker because they are not as financially independent as the other two
sectors, and are often dependent upon them. Or, when independent, they typically do not have
the resources and political power that the other two wield Ffor e7ample, both government and
corporations can own large influential media organi,ationsG, and are not as well and long
established as the other two.
In the past, many development "(Os gained a bad reputation with developing countries
because they were seen as arrogant and going into poor countries and telling people how to
do things, or doing things for them. %hey have also been described by some as the modern
missionaries, referring to the imperial and colonial times, where things like converting people
to #hristianity was considered the moral thing to do by 6uropean and American missionaries.
And even in recent years, some "(Os, aid organi,ations and development institutions from
the I"orthJ have been described sometimes as being tools or part of the ob*ectives of the
foreign policy aims of the northern nation from which they come.
%here has also been criticism on how "(Os have used their funding and other monies
received or raised. #riticisms range from pointing out that only small percentages go to
people in need, that a lot goes to recover costs, and some have even been used to pay very
high salaries of the people at the top of these organi,ations.
In some cases, this is fair criticism. In other cases, these arguments have been used by those
who wish to paint a dark picture of "(Os in general because "(O research may ultimately
critici,e their practices. It has to be e7pected that "(Os need to pay for e7penses, for
permanent staff and for various other costs incurred.
$ue to the pressures of obtaining and maintaining funding, much effort is spent on marketing,
and the already constrained budgets re9uire many "(Os to ensure optimal efficiency, similar
to private corporations. Sometimes then, the actual activity can be affected due to the need to
raise funding.
It is easy to think of "(Os as one group. Lowever, the interests and perspectives are so
diverse, that summari,ing and generali,ing criticisms that can be valid to all "(Os and
similar organi,ations is obviously unfair. Indeed, there are many "(Os now that don)t really
work in tune with government and corporate interests as suggested above, but seriously
challenge and critici,e.
Another type of criticism for some "(Os is that despite good intentions, they may be doing
more harm than good, without reali,ing it.
+or e7ample, many food aid groups where, in non5emergency situations, food is delivered
from rich countries for either free, or virtually free, end up under5cutting local producers and
hence have a negative effect on local farmers and the economy
As another e7ample, many organi,ations working on population5related issues risk doing
more harm in other societies due to either misconceptions about over5population, or
misunderstandings about family and community structures in those societies.
Aid has often been seen as an altruistic action often coming from religious roots and therefore
seen as a moral thing to support. Lowever, sometimes, what gets lost is the type of aid that is
administered. While many wealthy countries are cutting back on their already low aid
contributions, the discussionHcriticisms and debates should also focus on the types of aid.
A lot of official aid, and that raised and distributed by "(Os, in the past has been based
intentionally, or unknowingly, on foreign policy ob*ectives, or the interests of the lenders, less
of the recipients. Aid has often led to e7cessive dependency or reliance on aid rather than
helping nations move away from this.
It is not that the poor are unable to do things themselves, but with the aftermaths of
colonialism, corruption, conflicts and so on, rebuilding and developing often re9uires outside
assistance. %he form of assistance that would be preferred is one that allows the recipient to
help them help themselves, along the lines of the famous age5old 9uote- I(ive a man a fishM
you have fed him for today. %each a man to fishM and you have fed him for a lifetime.J
N!!" #r! P$i%a&t$r#'ic Or(a&i)ati#&s
We hear more and more about philanthropic organi,ations set up by mega5successful
business elites, where millions of rupees are donated to seemingly worthy causes. Lowever,
the fact that such donations are needed also serves as an indication that development policies
and globali,ation policies in their current form are not sustainable!
On the positive side though, there is also an increasing number of organi,ations from
developing countries as well as both new and more established ones in the industriali,ed
countries, doing important work, helping to raise important issues or tackle various problems.
In recent years as well, development and environmental "(Os for e7ample, are learning that
they can be more effective, and their work can have more positive effects, if they work with
the actual communities and help them to empower themselves. Working at the grassroots
level helps to provide assistance directly at the source. Often corrupt governments can
intercept much assistance so this approach is sometimes favored.
T$! (%#ba% c#&t!*t
While there may be no single universally accepted definition of #S&, each definition that
currently e7ists underpins the impact that businesses have on society at large and the societal
e7pectations of them. Although the roots of #S& lie in philanthropic activities Fsuch as
donations, charity, relief work, etc.G of corporations, globally, the concept of #S& has evolved
and now encompasses all related concepts such as triple bottom line, corporate citi,enship,
philanthropy, strategic philanthropy, shared value, corporate sustainability and business
responsibility. %his is evident in some of the definitions presented below-
%he 6#; defines #S& as Ithe responsibility of enterprises for their impacts on societyJ. %o
completely meet their social responsibility, enterprises Ishould have in place a process to
integrate social, environmental, ethical human rights and consumer concerns into their
business operations and core strategy in close collaboration with their stakeholdersJ
+rom the above definition, it is clear that-
; %he #S& approach is holistic and integrated with the core business strategy for
addressing social and environmental impacts of businesses.
/ #S& needs to address the well5being of all stakeholders and not *ust the company)s
= @hilanthropic activities are only a part of #S&, which otherwise constitutes a much
larger set of activities entailing strategic business benefits.
CSR i& I&"ia
#S& in India has traditionally been seen as a philanthropic activity. And in keeping with the
Indian tradition, it was an activity that was performed but not deliberated. As a result, there is
limited documentation on specific activities related to this concept. Lowever, what was
clearly evident that much of this had a national character encapsulated within it, whether it
was endowing institutions to actively participating in India)s freedom movement, and
embedded in the idea of trusteeship.
As some observers have pointed out, the practice of #S& in India still remains within the
philanthropic space, but has moved from institutional building Feducational, research and
culturalG to community development through various pro*ects. Also, with global influences
and with communities becoming more active and demanding, there appears to be a
discernible trend, that while #S& remains largely restricted to community development, it is
getting more strategic in nature Fthat is, getting linked with businessG than philanthropic, and
a large number of companies are reporting the activities they are undertaking in this space in
their official websites, annual reports, sustainability reports and even publishing #S& reports.
%he #ompanies Act, /:;= has introduced the idea of #S& to the forefront and through its
disclose5or5e7plain mandate, is promoting greater transparency and disclosure. Schedule 3II
of the Act, which lists out the #S& activities, suggests communities to be the focal point. On
the other hand, by discussing a company)s relationship to its stakeholders and integrating
#S& into its core operations, the draft rules suggest that #S& needs to go beyond
communities and beyond the concept of philanthropy. It will be interesting to observe the
ways in which this will translate into action at the ground level, and how the understanding of
#S& is set to undergo a change.
CSR a&" s+stai&abi%it,
Sustainability Fcorporate sustainabilityG is derived from the concept of sustainable
development which is defined by the <rundtland #ommission as Idevelopment that meets the
needs of the present without compromising the ability of future generations to meet their own
needsJ 0. #orporate sustainability essentially refers to the role that companies can play in
meeting the agenda of sustainable development and entails a balanced approach to economic
progress, social progress and environmental stewardship.
#S& in India tends to focus on what is done with profits after they are made. On the other
hand, sustainability is about factoring the social and environmental impacts of conducting
business, that is, how profits are made. Lence, much of the Indian practice of #S& is an
important component of sustainability or responsible business, which is a larger idea, a fact
that is evident from various sustainability frameworks. An interesting case in point is the
"3(s for social, environmental and economic responsibilities of business issued by the
inistry of #orporate Affairs in Nune /:;;. @rinciple eight relating to inclusive development
encompasses most of the aspects covered by the #S& clause of the #ompanies Act, /:;=.
Lowever, the remaining eight principles relate to other aspects of the business. %he B"
(lobal #ompact, a widely used sustainability framework has ;: principles covering social,
environmental, human rights and governance issues, and what is described as #S& is implicit
rather than e7plicit in these principles.
(lobally, the notion of #S& and sustainability seems to be converging, as is evident from the
various definitions of #S& put forth by global organisations. %he genesis of this convergence
can be observed from the preamble to the recently released draft rules relating to the #S&
clause within the #ompanies Act, /:;= which talks about stakeholders and integrating it with
the social, environmental and economic ob*ectives, all of which constitute the idea of a triple
bottom line approach. It is also acknowledged in the (uidelines on #orporate Social
&esponsibility and Sustainability for #entral @ublic Sector 6nterprises issued by the $@6 in
April /:;=1. %he new guidelines, which have replaced two e7isting separate guidelines on
#S& and sustainable development, issued in /:;: and /:;; respectively, mentions the
ISince corporate social responsibility and sustainability are so closely entwined, it can be said
that corporate social responsibility and sustainability is a company)s commitment to its
stakeholders to conduct business in an economically, socially and environmentally
sustainable manner that is transparent and ethical.J
B!&!-its #- a r#b+st CSR 'r#(ra!
As the business environment gets increasingly comple7 and stakeholders become vocal about
their e7pectations, good #S& practices can only bring in greater benefits, some of which are
as follows-
; C#+&iti!s 'r#.i"! t$! %ic!&c! t# #'!rat!: Apart from internal drivers such as
values and ethos, some of the key stakeholders that influence corporate behaviour include
governments Fthrough laws and regulationsG, investors and customers. In India, a fourth and
increasingly important stakeholder is the community, and many companies have started
realising that the Olicence to operate) is no longer given by governments alone, but
communities that are impacted by a company)s business operations. %hus, a robust #S&
programme that meets the aspirations of these communities not only provides them with the
licence to operate, but also to maintain the licence, thereby precluding the Otrust deficit).
/ Attracti&( a&" r!tai&i&( !'%#,!!s: Several human resource studies have linked a
company)s ability to attract, retain and motivate employees with their #S& commitments.
Interventions that encourage and enable employees to participate are shown to increase
employee morale and a sense of belonging to the company.
= C#+&iti!s as s+''%i!rs: %here are certain innovative #S& initiatives emerging,
wherein companies have invested in enhancing community livelihood by incorporating them
into their supply chain. %his has benefitted communities and increased their income levels,
while providing these companies with an additional and secure supply chain.
0 E&$a&ci&( c#r'#rat! r!'+tati#&: %he traditional benefit of generating goodwill,
creating a positive image and branding benefits continue to e7ist for companies that operate
effective #S& programmes. %his allows companies to position themselves as responsible
corporate citi,ens.
I'%!!&tati#& #- T$! C#'a&i!s Act/ 0123
In India, the concept of #S& is governed by clause ;=1 of the #ompanies Act, /:;=, which
was passed by both Louses of the @arliament, and had received the assent of the @resident of
India on /. August /:;=. %he #S& provisions within the Act is applicable to companies with
an annual turnover of ;,::: crore I"& and more, or a net worth of 1:: crore I"& and more,
or a net profit of five crore I"& and more.
%he new rules, which will be applicable from the the Act lists out a set of activities eligible
under #S&. #ompanies may implement these activities taking into account the local
conditions after seeking board approval. %he indicative activities which can be undertaken by
a company under #S& have been specified under Schedule 3II of the Act.
%he draft rules Fas of September /:;=G provide a number of clarifications and while these are
awaiting public comment before notification, some the highlights are as follows-
; Surplus arising out of #S& activities will have to be reinvested into #S& initiatives,
and this will be over and above the /? figure
%he company can implement its #S& activities through the following methods-
$irectly on its own
%hrough its own non5profit foundation set5 up so as to facilitate this initiative
%hrough independently registered non5profit organisations that have a record of at
least three years in similar such related activities
#ollaborating or pooling their resources with other companies
Only #S& activities undertaken in India will be taken into consideration, activities meant
e7clusively for employees and their families will not 9ualify.
A format for the board report on #S& has been provided which includes amongst
others, activity5wise , reasons for spends under /? of the average net profits of the previous
three years and a responsibility statement that the #S& policy, implementation and
monitoring process is in compliance with the #S& ob*ectives, in letter and in spirit. %his has
to be signed by either the #6O, or the $ or a director of the company
G#.!r&a&c! #- t$! Act
#lause ;=1 of the Act lays down the guidelines to be followed by companies while
developing their #S& programme.
%he #S& committee will be responsible for preparing a detailed plan on #S& activities,
including the e7penditure, the type of activities, roles and responsibilities of various
stakeholders and a monitoring mechanism for such activities. %he #S& committee can also
ensure that all the kinds of income accrued to the company by way of #S& activities should
be credited back to the community or #S& corpus.
CSR, #- "i--!r!&t C#'a&i!s
As early as the ;.0:s, the founding father
Shri (. $. <irla espoused the trusteeship
concept of management. Simply stated,
this entails that the wealth that one
generates and holds, is to be held as in a
trust for our multiple stakeholders. With
regard to #S&, this means investing part
of our profits beyond business, for the
larger good of society.
While carrying forward this philosophy, the legendary leader, r. Aditya <irla, weaved in the
concept of Esustainable livelihoodE, which transcended che9ue book philanthropy. In his view,
it was unwise to keep on giving endlessly. Instead, he felt that channelising resources to
ensure that people have the wherewithal to make both ends meet would be more productive.
Le would say, P(ive a hungry man fish for a day, he will eat it and the ne7t day, he would be
hungry again. Instead, if you taught him how to fish, he would be able to feed himself and his
family for a lifetime.P
@ro*ects are carried out under the
aegis of the PAditya <irla #entre for
#ommunity Initiatives and &ural
$evelopmentP, led by rs. &a*ashree
<irla. %he #entre provides the
strategic direction, and the thrust
areas for our work ensuring
performance management as well.
%he partners in development are
government bodies, district
authorities, village panchayats and the end beneficiaries Q the villagers. %he (overnment
has, in their 15year plans, special funds earmarked for human development and we recourse
to many of these.
At the same time, they network and collaborate with like5minded bilateral and unilateral
agencies to share ideas, draw from
each otherEs e7periences, and
ensure that efforts are not
duplicated. At another level, this
provides a platform for advocacy.
Pr#4!ct i"!&ti-icati#& !c$a&is
All pro*ects are planned in a
participatory manner, in
consultation with the community,
literally sitting with them, and
gauging their basic needs. %hey take recourse to Pparticipatory rural appraisalP, which is a
mapping process. Subse9uently, based on a consensus and in discussion with the village
panchayats, we prioritise re9uirements. And thus a pro*ect is born. Implementation is the
responsibility of the community and the team, as is the monitoring of milestones and the
other aspects. onitoring entails physical verification of the progress and the actual output of
the pro*ect.
3illage meetings are held periodically to elicit feedback on the benefits of the community
programmes and the areas where these need to be beefed up. %he pro*ects become sustainable
by the beneficiaries over the long haul. Once this stage is reached, the team is withdrawn. In
this way they do not build a culture of dependence, instead we make the villagers self5reliant.
M#"!% .i%%a(!s
One of the uni9ue initiatives is
to develop model villages, so
each of the ma*or companies is
working towards the total
transformation of a number of
villages in pro7imity to our
plants. aking of a model
village entails ensuring self5
reliance in all aspects vi,.,
education, health care and
family welfare, infrastructure, agriculture and watershed management, and working towards
sustainable livelihood patterns. +undamentally, ensuring that their development reaches a
stage wherein village committees take over the complete responsibility and our teams become
T$! (!#(ra'$ic r!ac$/ a&&+a% s'!&"s
%he footprint of community work straddles =,::: villages across the length and breadth of
our country. It has reached out to more than > million people annually. Over D: per cent of
these live below the poverty line and belong to scheduled castes and tribes.
%he (roup spends in e7cess of &s.;=: crore annually, inclusive of the running of ;2 hospitals
and 0/ schools. %he (roup transcends the conventional barriers of business and reaches out
to the marginalised as a matter of duty and to bring in a more e9uitable society.
T$!ir -#c+s ar!as
%he focus areas are rural development activities span five key areas and the single5minded
goal is to help build model villages that can stand on their own feet. %he focus areas are
healthcare, education, sustainable livelihood, infrastructure and espousing social causes.
+ormal and non5formal education, adult education
Scholarships for girls, merit scholarships and technical education for boys
$istance education
(irl child education
$igital literacy H computer education
H!a%t$ car! a&" -ai%, 5!%-ar!
@ulse polio programme
obile clinics Q doctorsE visits
(eneral and multispeciality medical camps, cleft lips
&eproductive and child health care, supplementary nutrition H mid5day meal pro*ects
Safe drinking water, sanitation Q household toilets, community hospitals
LI3 H AI$S, cancer, %< awareness and prevention camps
<lood donation
&esponsible parenting
S#cia% ca+s!s
Widow re5marriage H dowry5less mass marriages
Social security FinsuranceG
#ulture and sports
Women empowerment
I&-rastr+ct+r! "!.!%#'!&t
#ommunity centres
Schools in villages
Lealth care centres and hospitals
Lomes for the homeless
&ural electrification
Irrigation and water storage structures
S+stai&ab%! %i.!%i$##"
Self5help groups Fmicrofinance for women and farmersG
Integrated agriculture development
Integrated livestock development
Watershed management
icroenterprise development
Skill development H vocational training through Aditya <irla %echnology @ark for
training programme and 3% centres at most of our plants in collaboration with I%Is
%ata otors are a signatory to the Bnited "ations (lobal #ompact and is committed to
#orporate Social &esponsibility. %he community initiatives span key areas of education,
healthcare, environment conservation and employability. Sustainability of the organi,ation
focuses on creating value in the long term, monitoring economic, social,environmental and
intangible performances and paying attention to stakeholder satisfaction.
%ata otors, governed by the %ata #ode of #onduct F%#o#G, has a commitment towards
conducting business in a responsible manner. %hey have been regularly disclosing our non5
financial performance in the public domain in the form of a Sustainability &eport.
6ducation initiatives implemented include sc$#%ars$i's/ i&-rastr+ct+r! a&" -aci%it,
i'r#.!!&t to allow greater access to 9uality education, implementing e7tra5curricular
activities for overall development of students and teacher training programs.
E&.ir#&!&ta% c#&s!r.ati#&
%ata otorsE focus on environmental management helps preserve the long5term health of
people and ecosystems and build strong relationships with local communities. 3arious
initiatives have been undertaken within the broad frame of 6nvironment and #limate #hange
to address the conservation of natural resources and energy, minimi,e waste generation,
enhance recovery and recycling of material and develop eco5friendly process and systems.
%hey have been continuously working towards reducing our various environmental
footprints, which is evidenced by our decrease in specific consumption levels.
%ata otors actively promotes healthcare both at the national and plant levels. A partnership
with Smile %rain empowers surgeons to provide free corrective surgery for children with cleft
lip and palette deformities. +urther, AI$S awareness campaigns were conducted for truck
drivers. @reventive and curative healthcare facilities are provided through small obile
Lealth #linics, awareness camps, hospitals and clinics. <esides, rural health workers are
trained to act as foot doctors to cure minor ailments in their allocated areas.
E(olden @eacock Award for #orporate Social &esponsibilityE for /:;;.
Aucknow plant was conferred the E(reentech 6nvironment Silver AwardE for
Outstanding achievement in 6nvironment anagementE in the automobile sector for /:;;.
E#II AwardE for #orporate Sustainability &eporting.
ELellen 'eller AwardE for #S&.
E<ombay "atural Listory AwardE for (reen (overnance.
E(old Award for #orporate Social &esponsibilityE at 1;st Annual Awards "ite of the
Association of <usiness #ommunicators of India FA<#IG.
@antnagar @lant won E#II 5 6nvironmental <est @ractices Award /:;/E.
E#ertificate of #ommendation for Significant AchievementE at the
S+stai&abi%it, A5ar"s 0122
Sanand @lant won ;st @ri,e at Aakhsya #S& Sparsha Award /:;;, for / papers-
#ommunity5based Safe $rinking Water @rogramme and for #ommunity5based Innovative
Sanitation @rogramme.
@antnagar plant bagged the second position in the 6nvironment, Lealth 4 Safety
#ompetition /:;;, organised by #onfederation of Indian Industry F#IIG, "orthern &egion.
Sanand plant won E(olden @eacock 6co5Innovation Award /:;;E.
EAucknow @lant won the second pri,e, at E"ational 6nergy #onservation Award /:;;E,
in the automobile manufacturing category.
E@antnagar plant bagged the /nd pri,e under EBttarakhand 6nergy #onservation Award
Naguar Aand &over received the @latinum &ating in the #orporate &esponsibility F#&G
Inde7 Society of otor anufacturers and %raders /:;; Award for Automotive Innovation.
As a public sector enterprise, O"(# has a long
and cherished tradition of commendable
initiatives, institutionali,ed programmes and
practices of #orporate Social &esponsibility which
have played a laudable role in the development of
several underdeveloped regions of the country.
%he #S& activities are essentially guided by
pro*ect based approach in line with the guidelines
issued by the $epartment of @ublic 6nterprises
and inistry of #orporate Affairs of the (overnment of India.
%he #S& initiatives of O"(# were marked by unrelenting commitment to several large !
scale key pro*ects as well as initiation of several new pro*ects identified under the ;/ focus
areas of O"(# i.e.
;. 6ducation including vocational courses,
/. Lealth #are,
=. 6ntrepreneurship Fself5help 4 livelihood
generationG schemes,
0. Infrastructure support near O"(# operational
1. 6nvironment protection, ecological
conservation, promotion,
D. @rotection of heritage sites, B"6S#O heritage monuments etc.
>. @romotion of artisans, craftsman, musicians, artists etc. for preservation of heritage,
Art 4 #ulture,
2. Women)s 6mpowerment, (irl #hild $evelopment, (ender sensitive pro*ects,
.. Water anagement including ground water recharge,
;:. Initiatives for @hysically and entally challenged,
;;. Sponsorship of seminars, conferences, workshops etc.
;/. @romoting SportsHsports personsM supporting agencies promoting sports H sports
"(O)S that have brought a positive change in the society
&amakrishna ission is an organisation which forms the core of a worldwide spiritual
movement known as the &amakrishna ovement or the 3edanta ovement. %he mission is a
philanthropic, volunteer organisation founded by &amakrishnaEs chief
disciple 3ivekanandaon ; ay ;2.>. %he mission conducts e7tensive work in health care,
disaster relief, rural management, tribal welfare, elementary and higher education and culture.
It uses the combined efforts of hundreds of ordered monks and thousands of householder
disciples. %he mission bases its work on the principles of karma yoga.
%he mission, which is head9uartered near 'olkata at <elur ath in Lowrah, West <engal,
subscribes to the ancient Lindu philosophy of 3edanta. It is affiliated with
the monastic organisation &amakrishna ath, with whom it shares members.
issionaries of #harity is a &oman #atholic religious congregation established in ;.1:
by other %eresa. It consists of over 0,1:; religious sistersand is active in ;== countries.
embers of the order designate their affiliation using the orderEs initials, P.#.P A member of
the #ongregation must adhere to the vows of chastity, poverty, obedience, and the fourth
vow, to give Pwholehearted free service to the poorest of the poor.P
%oday, the order consists of both #ontemplative and Active <ranches of <rothers and Sisters
over several different countries. In ;.D=, both the #ontemplative branch of the Sisters and the
Active branch of the <rothers were founded. As with the Sisters, the +athers live a very
simple lifestyle without television, radios or items of convenience. %hey neither smoke nor
drink alcohol and beg for their food. %hey make a visit to their families every five years but
do not take annual holidays.Aay #atholics and non5#atholics constitute the #o5Workers of
other %eresa, the Sick and Suffering #o5Workers, and the Aay issionaries of #harity.
issionaries care for those who include refugees, e75prostitutes, the mentally ill, sick
children, abandoned children, lepers, people with AI$S, the aged, and convalescent. %hey
have schools run by volunteers to educate street children, they run soup kitchens, as many
other services as per the communitiesE needs. %hey have ;. homes in 'olkata F#alcuttaG
alone which include homes for women, for orphaned children, and for the dyingM an
AI$Shospice, a school for street children, and a leper colony. %hese services are provided,
without charge, to people regardless of their religion or socialcaste.
In ;..:, other %eresa asked to resign as head of the issionaries, but was soon voted back
in as Superior (eneral. On arch ;=, ;..>, si7 months before other %eresaEs death, Sister
ary "irmala Noshi was selected the new Superior (eneral of the issionaries of #harity.
Sister ary @rema was elected to succeed Sister "irmala during a general chapter held in
#alcutta in April /::..
%he I&t!r&ati#&a% R!" Cr#ss a&" R!" Cr!sc!&t M#.!!&t is an
internationalhumanitarianmovement with appro7imately .> million volunteers, members and
staff worldwide which was founded to protect human life and health, to ensure respect for all
human beings, and to prevent and alleviate human suffering.
%he movement consists of several distinct organi,ations that are legally independent from
each other, but are united within the movement through common basic principles, ob*ectives,
symbols, statutes and governing organisations. %he movementEs parts are-
%he International #ommittee of the &ed #ross FI#&#G is a private humanitarian institution
founded in ;2D= in (eneva, Swit,erland, by Lenry $unant and (ustaveoynier. Its /15
member committee has a uni9ue authority under international humanitarian law to protect the
life and dignity of the victims of international and internal armed conflicts. %he I#&# was
awarded the "obel @eace @ri,e on three occasions.
%he International +ederation of &ed #ross and &ed #rescent Societies FI+&#G was founded in
;.;. and today it coordinates activities between the ;22 "ational &ed #ross and &ed
#rescent Societies within the ovement. On an international level, the +ederation leads and
organi,es, in close cooperation with the "ational Societies, relief assistance missions
responding to large5scale emergencies. %he International +ederation Secretariat is based in
(eneva, Swit,erland. In ;.D=, the +ederation Fthen known as the Aeague of &ed #ross
SocietiesG was awarded the "obel @eace @ri,e *ointly with the I#&#.
"ational &ed #ross and &ed #rescent Societies e7ist in nearly every country in the world.
#urrently ;22 "ational Societies are recogni,ed by the I#&# and admitted as full members
of the +ederation. 6ach entity works in its home country according to the principles of
international humanitarian law and the statutes of the international ovement. $epending on
their specific circumstances and capacities, "ational Societies can take on additional
humanitarian tasks that are not directly defined by international humanitarian law or
the mandates of the international ovement. In many countries, they are tightly linked to the
respective national health care system by providing emergency medical services.
%he /? #S& provision of the new #ompanies Act will have ripple effects in the economy of
India. Lowever, the effects, both positives and negatives, can only be speculated via thorough
analysis of economic theories. %he important prospect to remember in viewing any economic
policies is whether they efficiently foster growth and human development. <efore, indulging
into analysis, it is important to understand some of the relevant features and known5realities
of Indian economy. In spite of economic boom, India only spends .D? of its ($@, which
accounts to about C1 billion on corporate oriented social welfare. In comparison, America
spends about /? of its ($@ over C=:: billion to charity. Income disparity in India has
doubled in last / decades. In a country which has the highest concentration of people living
below poverty5line F/:? of populationG according to +orbes, India has 11 billionaires
Fe7pected to rise to //: in the ne7t decadeG and ;/1::: millionaires."oteworthy- many
companies in India such as %ata and I< already spend more than /? in #S&. Indian
companies have benefitted from liberali,ed government policies enhancing global trade and
investment from multinationals. %he pressures for Indian companies, who refused to do #S&,
are increasing. With the /? #S& provision there will be an immediate doubling of social
program money in India i.e. additional C1 billion poured into social welfare sector. It will
soon match the /? ($@ spending on charity by American companies.
#onsidering the increasingly vast and comple7 business environment, the move of the
inistry of #orporate Affairs is a welcoming step which apart from contributing towards
society, plays a ma*or role in various ways which includes attracting and retaining employees
in a such a way as to increase morale of the employees along with creating a sense of
belonging to the company and contributes towards enhancement of companyEs own goodwill,
positive image along with bringing competitive advantages. Also, as rightly mentioned by
Bnited "ations Industrial $evelopment Organi,ation FB"I$OG, #S& is generally understood
as being the way through which a company achieves a balance of economic, environmental
and social imperatives FP%riple5<ottom5Aine5 ApproachPG, while at the same time addressing
the e7pectations of shareholders and stakeholders.
%hus #S& is referring to way that businesses are managed to bring about an overall positive
impact on the communities, cultures, societies and environments in which they operate. %he
fundamentals of #S& rest on the fact that not only public policy but even corporates should
be responsible enough to address social issues. #ompanies should therefore deal with the
challenges and issues looked after to a certain e7tent by the states.
IIndia ! "ew (lobal @overty 6stimates.J World <ank
responsibilityHinde7R en.htm
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Guidelines on Corporate Social Responsibility and Sustainability for Central Public
Sector Enterprises -