Corporate citizenship can be defined as extending the relationship between business and
society to include an understanding of the social, environmental and political responsibilities
of business. The notion of corporate citizenship sees the company as having rights, duties
and responsibilities in society in the same way that citizens also have rights, duties and
responsibilities. For many practitioners and activists it is a radical notion that in its fulfillment
means a rewriting of the rules of business.
Conceptually, the notion of citizenship exposes the fact that many of the CSR related
activities of companies today are taking place in traditionally political arenas. For example,
philanthropic activities to support education or the arts often substitute dwindling
governmental support. Likewise, engagement in implementing labour and human rights
standards in the developing world often steps in for governments unwilling to protect their
citizens. Corporate citizenship addresses this dimension and conceptualizes a company as a
member of society which like a normal citizen is involved and participates in the governance
of society in various shapes and forms.
1. Sustainable development: United Nations’ (UN) studies and many others have
underlined the fact that humankind is using natural resources at a faster rate than they
are being replaced. If this continues, future generations will not have the resources they
need for their development. In this sense, much of current development is unsustainable
—it can’t be continued for both practical and moral reasons. Related issues include the
need for greater attention to poverty alleviation and respect for human rights. CSR is an
entry point for understanding sustainable development issues and responding to them in
a firm’s business strategy. •
4. Corporate sector impact: The sheer size and number of corporations, and their potential
to impact political, social and environmental systems relative to governments and civil
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society, raise questions about influence and accountability. Even small and medium size
enterprises (SMEs), which collectively represent the largest single employer, have a
significant impact. Companies are global ambassadors of change and values. How they
behave is becoming a matter of increasing interest and importance (see box below).
8. Consistency and Community: Citizens in many countries are making it clear that
corporations should meet the same high standards of social and environmental care, no
matter where they operate. In the CSR context, firms can help build a sense of
community and shared approach to common problems.
9. Leadership: At the same time, there is increasing awareness of the limits of government
legislative and regulatory initiatives to effectively capture all the issues that CSR address.
CSR can offer the flexibility and incentive for firms to act in advance of regulations, or in
areas where regulations seem unlikely.
10. Business Tool: Businesses are recognizing that adopting an effective approach to CSR
can reduce the risk of business disruptions, open up new opportunities, drive innovation,
enhance brand and company reputation and even improve efficiency.
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1. BOARD OVERSIGHT: The Board of Directors will provide oversight and accountability for
corporate sustainability strategy and performance. A committee of the board will carry
specific responsibility for sustainability oversight within its charter.
5. PUBLIC POLICY: Companies will clearly state their position on relevant sustainability
public policy issues. Any lobbying will be done transparently and in a manner consistent
with sustainability commitments and strategies.
12. VERIFICATION AND ASSURANCE: Companies will verify key sustainability performance
data to ensure valid results and will have their disclosures reviewed by an independent,
credible third party.
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D. Models for implementation of CSR
More and more corporate are assuming responsibility for the impact of their commercial
activities in different walks of life, whether it is the environment, communities, employees,
consumers, stakeholders and all those who could be at the receiving end of the
aforementioned activities. The systematic implementation of CSR means;
The adoption of strong organizational values and norms depicting behaviours that are
appropriate towards a variety of stakeholders.
The continuous generation of intelligence about stakeholder issues along with positive
responses to these issues.
Though there are several theories to justify CSR activities of corporations, not all of them
lend themselves to be put into practice. A model for implementation of CSR is one that
enables organizations to apply a particular concept or theory as workable propositions. There
are various options are available; a company may choose a model that is suitable to its core
competence. There are four models of corporate responsibility globally.
1. Ethical Model: In the ethical model, there is a voluntary commitment to public welfare. It
can be traced back to the pioneering efforts of 19 th century corporate philanthropists such
as, Cadbury Brothers in England. In India, it has its roots in the Gandhian philosophy of
trusteeship. For example corporate like TATA, Reliance, Infosys, etc. are providing cash
for the social welfare projects as a part of CSR.
2. Statist Model: This model is based on the state owned public sector units. It is based on
the socialist and Nehruvian mixed economy format that India had adopted for its
economy. Propounded by J L Nehru, this model calls for state ownership and legal
requirements of CSR.
3. Liberal Model: This is the liberal approach where the belief is that the free market would
take care of corporate responsibility. It is drawn from Milton Friedman’s view which states
that a company’s responsibility lies mainly in improving the economic bottom-line and
increasing the wealth of the shareholder.
4. Stakeholder Model: Since the late 1980’s and through 1990’s there has been an
increasing realization that business has a social responsibility. It is generally understood
that a stakeholder in an organization is an individual or group of individuals who can
affect or is affected by the objectives and activities of the organization.
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1. Apply and follow similar principles for CSR management as with other aspects of
business: CSR should be treated and managed like any other aspect of business. It
should involve setting of important goals, priorities and performance indicators, the
designing of action plans and subsequent evaluation of performance.
2. The simpler, the better: A simple and clear-cut policy benefits the organization in the
long run. Clarity in such a method leaves less room for complications and mistakes.
3. Concentrate on the goal: In other words, the focus should be on the core principles of
CSR rather than policies and procedures. While being a stickler for policies and
procedures may help in some cases, the focus should be in abiding by the principles set.
4. Try and set measurable goals: The more measurable the goals, the more effective the
management of the CSR is.
5. Target pivotal industry concerns: All businesses should focus on achieving good
corporate citizenship in areas such as the environment, employee/labor relations and
corporate governance.
6. Conduct business with honesty: In the realm of CSR, this attitude can extend to
actively addressing industry- specific concerns such as alcohol manufacturers can make
a difference in the area of discouraging people from drinking and driving. Or, fast-food
companies can help promote healthy eating habits and fit and active lifestyles.
7. Communication is king: Seeking inputs from key groups such as stakeholders for
setting CSR objectives can help strengthen relationships. Employees and consumers can
be engaged at various levels for CSR programs.
8. Make it a collective effort: CSR cannot be run by one department alone. It is a force
that drives the organization and vice versa. If relegated to any one department, it will
become another issue where one can just pass the buck and eventually achieve nothing.
Key CSR Areas: Focus on the girl child, youth and farmers through programs in the domains
of education, public health and environment. Mahindra Pride Schools provide livelihood
training to youth from socially and economically disadvantaged communities and have
trained over 13,000 youth in Pune, Chennai, Patna, Chandigarh and Srinagar. M&M
sponsors the Lifeline Express trains that take medical treatment to far flung communities.
Then there's Project Hariyali, which has planted 7.9 million trees till date, including four
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million trees in the tribal belt of Araku Valley. M&M has constructed 4,340 toilets in 1,171
locations across 11 states and 104 districts specifically for girls in government schools as
part of Swachh Bharat SwachhVidyalaya. Expenditure on CSR in the last fiscal was Rs 83.24
crore — 2% of PAT.
Flagship Programme: Set up by Anand Mahindra in 1996, Project Nanhi Kali supports the
education of over 11 lakh underprivileged girls in ten states, providing material support
(uniforms, bags, notebooks, shoes and socks) and academic support (workbooks, study
classes). The key outcomes of the project include an increase in both enrolment of girls in
schools and curtailing dropouts to less than 10%.
Tata Power
Key CSR Areas: Education, environment, community development, health, safety, security,
resource and energy conservation, women empowerment, skill development and livelihood
generation. Its total CSR spending in FY15 stood at Rs 31.1 crore as against the 2% of PAT
requirement of Rs 29.8 crore. Further, the CSR spending of subsidiaries and joint ventures of
the company was Rs 18.2 crore as against the requirement of Rs 17.2 crore.
Flagship Programme: 'Act for Mahseer', a conservation initiative started in 1975 for saving
endangered species. Tata PowerBSE 0.00 % set up a breeding centre in Lonavala as part of
its eco-restoration and eco-development project for the lakes. The programme has produced
and distributed in various water bodies seeds of Mahseer in excess of 10 million in India and
internationally.
Tata Steel
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evidence of success and learnings from the MANSI project, Tata SteelBSE 0.95 % is scaling
up the project to cover 1,500 villages.
L&T
Key CSR Areas: Water and sanitation, education, healthcare and skill building. L&T partners
with local governments on health programmes focused on reproductive health, tuberculosis&
leprosy control, integrated counselling & testing centres for HIV/ AIDS. L&T's community
health centres are located at Mumbai, Thane, Ahmednagar, Hazira, Vadodara, Coimbatore,
Chennai, Lonavala and Kansbahal. L&T's Construction Skills Training Institutes (CSTIs),
established in 1994, provide skills training to rural youth. In the last fiscal, L&T spent Rs
76.54 crore on CSR, amounting to 1.44% of the average net profit for the preceding three
years.
Tata Chemicals
Key CSR Areas: Focused on sustainable community development and preserving the
ecosystem. The company has a climate change policy that maps its carbon footprint and is
creating an abatement strategy for sustainable manufacturing. In the last fiscal, it spent Rs
12.76 crore on CSR, amounting to 2.93% of standalone PAT.
Flagship Programme: 'Save the Whale Shark Campaign', started in 2004, aims to spread
awareness about the whale shark, the world's largest fish, which was fast depleting because
of slaughter by fishermen along the Gujarat coast for export. After a decade of campaigning
through street plays, games, posters, inflated shark flotillas, community meets, postage
stamps and engaging with fishermen and school communities, more than 498 whale sharks
have been saved. The company is now involved in the scientific study of the species to
ensure its long-term survival.
Tata Motors
Key CSR Areas: Education and employability (skill development). Most programmes are in
the vicinity of manufacturing locations but employability programmes focused on building skill
of youth in automotive trades are implemented across India. The company has created a
CSR Committee of the board under the chairmanship of RA Mashelkar, which monitors CSR
performance. It spent Rs 18.62 crore on CSR in 2014-15, despite reporting a net loss.
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Flagship Programme: Learn, Earn and Progress (LEAP) for mechanic motor vehicle training,
a year-long programme where theoretical learning is supplemented through 'on-thejob'
exposure at service centres. Tata Motors' Dealers, implementation partners (NGOs and
Technical Training Institutes) are partners. Dealers provide the training and contribute two-
thirds of monthly stipend of the trainee while Tata MotorsBSE 2.19 % contributes the rest.
The implementation partner provides theory training.
GAIL
Key CSR Areas: Supporting communities in multiple thrust areas like health, sanitation,
education, skill development, livelihood, and environment. Through GAIL Utkarsh, the
company has helped over 500 students from economically backward communities join
India's premier engineering institutes. They are provided residential coaching programmes
and given monthly scholarships once they get into IITs/NITs. The GAIL Institute of Skills (GIS)
is also working towards bridging the skill gap faced by the oil and gas industry. GAIL's CSR
programme operates in 25 states and UTs. In the last fiscal, it spent Rs 71.89 crore, or
1.21% of the average net profit of the last three years, against an allocation of Rs 118.67
crore.
Flagship Programme: GAIL has established GIS which addresses the issue of
unemployment and skill gap, by providing job-linked skill training to local youth of
communities in and around its areas of operation.
Bharat Petroleum
Key CSR Areas: Quality education (strengthening primary, secondary education and
empowering teachers), water conservation, skill development (employment linked skill
training to the underprivileged with an inclusive approach for women, unemployed youth and
persons with disabilities), health/hygiene and rural development. In 2014-15, BPCLBSE 0.73
% had a CSR allocation of Rs 76 crore, of which it spent Rs 33.95 crore. The balance has
been carried to the current fiscal, and has been spent on Swachh Bharat SwachhVidyalaya
projects.
FlasgshipProgramme: Project BOOND, which has evolved from the construction of rain
water harvesting structures to making villages drought-free. It began with four villages in
Maharashtra, which were along BPCL's product pipeline. In the past 6 years, it has been
extended to over 140 villages in Maharashtra, Tamil Nadu, Karnataka, Rajasthan, Uttar
Pradesh and Andhra Pradesh, making them water positive. In 2014-15, 40 villages were
made water positive by creating 7 crorelitres of water, benefitting over 5,500 families.
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Infosys
Key CSR areas: Works with Infosys Foundation, headed by SudhaMurty, towards removing
malnutrition, improving healthcare infrastructure, supporting primary education, rehabilitating
abandoned women and children and preserving Indian art and culture. Infosys Foundation
USA is focused on bridging the digital divide in America by supporting computer science
education and training in underrepresented communities. In FY15, Infosys spent 2% of its
average net profit for the three preceding financial years on CSR.
Flagship program: The Infosys Foundation mid-day meal program, an initiative in partnership
with the AkshayaPatra Foundation, spans several states across India.
Key CSR Areas: The Jubilant Bhartia Foundation (JBF) focuses on elementary education,
improving health indices, employability and promoting social entrepreneurship. Jubilant's
CSR programmes are implemented around its manufacturing locations in six areas in India.
The study of ethics has become an important ingredient of the syllabus of management
schools in recent years. This is because of ethical issues that have come to the forefront as a
result of many well-known failures of corporate. The fraudulent activities of these corporate
have resulted in the defrauding of stockholders, consumers, employees, creditors and
governments to varying degrees. It has therefore become important that students of B-
Schools as future managers of business should imbibe ethical values.
The word “ethics” is derived from the Greek word ethikos meaning customs or character. But
the questions are Whose morals? Which moral Questions? Business ethics covers diverse
areas ranging from labour practices, free and fair trade, health concerns, euthanasia to
animal welfare, environmental concerns, to genetic modification, to human cloning.
Personal values are the conception of what an individual or a group regards as desirable.
Personal ethics refer to the application of these values in everything one does. Personal
ethics might also be called morality, since they reflect general expectations of any person in
any society, acting in any capacity. These are the principles we try to install in our children
and expect of one another without needing to articulate the expectation or formalize it in any
way. The principles of personal ethics are;
1. Impartiality: objectivity;
3. Confidentiality: trust;
Features of Ethics
Ethics is concerned with what is right or wrong, good or bad, fair or unfair, responsible or
irresponsible, obligatory or permissible, praiseworthy or blameworthy. It is associated with
guilt, shame, indignation, resentment, empathy, compassion, and care. It is interested in
character as well as conduct. It addresses matters of public policy as well as more personal
matters. On the one hand, it draws strength from our social environment, established
practices, law, religion, and individual conscience. On the other hand, it critically assesses
each of these sources of strength. So, ethics is complex and often perplexing and
controversial. It defies concise, clear definition. Yet, it is something with which all of us,
including young children, have a working familiarity.
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Children's introduction to ethics, or morality, comes rather early. They argue with siblings and
playmates about what is fair or unfair. The praise and blame they receive from parents,
teachers, and others encourages them to believe that they are capable of some degree of
responsible behavior. They are both recipients and dispensers of resentment, indignation,
and other morally reactive attitudes. There is also strong evidence that children, even as
young as four, seem to have an intuitive understanding of the difference between what is
merely conventional (e.g., wearing certain clothes to school) and what is morally important
(e.g., not throwing paint in another child's face). So, despite their limited experience, children
typically have a fair degree of moral sophistication by the time they enter school.
It is useful to think of ethics, or morality, as an umbrella term that covers a broad range of
practical concerns, many of which are rather straightforwardly understood and dealt with, but
some of which are not very clearly understood and are often quite controversial. This can
help us see how the study of ethics differs from most other subjects of study, at least as they
are traditionally understood.
Philosophical Ethics
In large part, philosophical ethics is normative in its focus. It examines basic questions about
what our values should be, what, if any, fundamental grounding they can be given, and
whether they can be organized into a comprehensive, coherent theory. Another part of
philosophical ethics is called metaethics, which studies the nature of the language and logic
we use when we are concerned about morality (as distinct from, say, law or social etiquette).
Although the study of philosophical ethics might make valuable contributions to our
understanding of relationships between ethics and science, we do not regard it as a
necessary preparation for bringing ethics into science classes. Thomas Reid wisely warns us
not to make the mistake of thinking that in order to understand [one's] duty; [one] must needs
be a philosopher and a metaphysician. This does not mean that careful reflection is not
needed. Nor does it mean that philosophical reflection is not needed. But, just as we do not
need to be logicians in order to think logically, mathematicians in order to think
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mathematically, or scientists in order to think scientifically, we do not have to be philosophers
in order to think philosophically.
Given the apparent moral differences found among people with different national, ethnic, or
religious backgrounds, it may seem naive to talk, as we have, of common moral values.
What moral values, if any, might be sharable across national, ethnic, religious, or other
boundaries? This is the question philosopher Sissela Bok takes up in her recent book,
Common Values. She begins by listing a number of problems that cut across these
boundaries: problems of the environment; war and hostility; epidemics; overpopulation;
poverty; hunger; natural disasters (earthquakes, tornados, drought, floods); & even
technological disasters (Chernobyl). The fact that we recognize these as common problems
suggests that we share some basic values (e.g., health, safety, & the desire for at least
minimal happiness).
However, our desire to get to the bottom of things often blocks gaining a clearer
understanding of what we have in common. Bok nicely outlines this problem. She notes that
we may feel we need a common base from which to proceed. But there are different ways in
which we might express what we think we need. Bok mentions ten different ways. We may
seek a set of moral values that are
1. divinely ordained
2. part of the natural order
3. eternally valid
4. valid without exception
5. directly knowable by anyone who is rational
6. perceivable by a "moral sense,"
7. independent of us, in the sense that they do not depend on us for their existence
8. objective rather than subjective
9. held in common by virtually all human beings
10. such that they've had to be worked out by all human societies.
Reasonableness
In so far as we are concerned with justifying our moral judgments, as distinct from simply
asserting our views, we are striving to be reasonable with others. Justification in morality is
similar to justification in science in this respect. Justification in either realm is a public
process. Convincing oneself privately, and only in one's own terms, is insufficient. A mark of
unreasonableness is unwillingness seriously to consider ideas unless they are cast in one's
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own terms and in ways congenial to one's preset views. W.H. Sibley puts the moral case
rather well: If I desire that my conduct shall be deemed reasonable by someone taking the
standpoint of moral judgment, I must exhibit something more than mere rationality or
intelligence. To be reasonable here is to see the matter -- as commonly put it -- from the
other person's point of view, to discover how each will be affected by the possible alternative
actions; and moreover not merely to see this (for any merely prudent person would do as
much) but also to be prepared to be disinterestedly influenced, in reaching a decision, by the
estimate of these possible results. I must justify my conduct in terms of some principle
capable of being appealed to by all parties concerned, some principle from which we can
reason in common.
Nature of Ethics
Simply stated, ethics refers to standards of behavior that tell us how human beings ought to
act in the many situations in which they find themselves-as friends, parents, children,
citizens, businesspeople, teachers, professionals, and so on.
Ethics is not the same as feelings. Feelings provide important information for our ethical
choices. Some people have highly developed habits that make them feel bad when they do
something wrong, but many people feel good even though they are doing something wrong.
And often our feelings will tell us it is uncomfortable to do the right thing if it is hard.
Ethics is not religion. Many people are not religious, but ethics applies to everyone. Most
religions do advocate high ethical standards but sometimes do not address all the types of
problems we face.
Ethics is not following the law. A good system of law does incorporate many ethical
standards, but Law can deviate from what is ethical. Law can become ethically corrupt, as
some totalitarian regimes have made it. Law can be made to be a function of power alone
and designed to serve the interests of narrow groups. Law may have a difficult time
designing or enforcing standards in some important areas, and may be slow to address new
problems.
Some cultures are quite ethical, but others become corrupt or blind to certain ethical
concerns (as the United States was to slavery before the Civil War or to using atomic
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weapons on civilians in Hiroshima and Nagasaki). "When in Rome, do as the Romans do" is
not a satisfactory ethical standard.
Ethics is not science. Social and natural science can provide important data to help us
make better ethical choices. But science alone does not tell us what we ought to do. Science
may provide an explanation for what humans are like. But ethics provides reasons for how
humans ought to act. And just because something is scientifically or technologically possible,
it may not be ethical to do it.
Ethics is a normative science. It is concerned with what ought to be done rather than
what is the case. It differs from positive science. A positive science, natural science or
descriptive science is concerned with what is. It deals with facts and explains them by
their causes. In positive science there is no question of judging its objects in any way. But
ethics does not deal with fact. Rather it deals with value. Therefore, it is clear that ethics
is concerned with judgments of value, while positive science deals with judgments of
facts. That is why ethics is not a positive science but a normative science.
Ethics is not a practical science. Practical science deals with means for the realization
of an end or ideal. It teaches us to know how to do. As for instance, medical science is a
practical science. It concerns with the means in order to remove the causes of ailments or
diseases. But ethics is not concerned with means in order to achieve moral ideal that is
rightness or goodness. It does not teach us how to live a moral life. So, ethics cannot be
regarded as a practical science.
Ethics is not an art. Ethics does not teach us an art as to how to lead a moral life. Rather it
helps us to justify rightness or goodness which can lead to the supreme goal of human life that
is to realize the summon bonum (the highest good) of human life. So, ethics is not a means to
the highest ideal of human life. But, like the practical science, art is also a means for obtaining
a goal. So, ethics is neither a practical science nor an art.
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more philosophical, the distinction between science and philosophy and between value-
science like ethics and general ‘philosophy is a matter of degree.
Objectives of Ethics
Ethics is a good philosophy to use for decision making. The study of ethics can help improve
knowing the difference between right and wrong. It requires long term learning. The study of
ethics seems to be beneficial when it comes to teaching long term values.
Everyone needs to have certain morals in life: Knowing the difference between right
and wrong is important everyday rather it is personal or business related. Just because
others may not see what some individuals do in their personal time or space. Studying
ethics can help teach an individual the differences between what is right and wrong.
Accomplishments of Strong set of Principles: After being asked why study ethics, the
best answer one can think of is the feeling of accomplishment after building a strong set
of principles to live by day after day. Not everything in life can be so easily taught.
Appreciation from others: The general feelings about ethics are that those who follow
ethical practices in their personal lives, more likely that they also follow ethics in their
professional life. So, people appreciate ethical practices in general.
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Business ethics implies conducting business in a manner beneficial to the societal as well as
business interests.
Every strategic decision has a moral consequence. The main aim of business ethics is to
provide people with the means for dealing with the moral complications. Ethical decisions in
a business have implications such as satisfied work force, high sales, low regulation cost,
more customers and high goodwill.
Some of ethical issues for business are relation of employees and employers, interaction
between organization and customers, interaction between organization & shareholders, work
environment, environmental issues, bribes, employees rights protection, product safety etc.
Below is a list of some significant ethical principles to be followed for a successful business-
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2. Improve customers' confidence: Business ethics are needed to improve the
customers' confidence about the quality, quantity, price, etc. of the products. The
customers have more trust and confidence in the businessmen who follow ethical rules.
They feel that such businessmen will not cheat them.
3. Survival of business: Business ethics are mandatory for the survival of business.
The businessmen who do not follow it will have short-term success, but they will fail in the
long run. This is because they can cheat a consumer only once. After that, the consumer
will not buy goods from that businessman. He will also tell others not to buy from that
businessman. So this will defame his image and provoke a negative publicity. This will
result in failure of the business. Therefore, if the businessmen do not follow ethical rules,
he will fail in the market. So, it is always better to follow appropriate code of conduct to
survive in the market.
4. Safeguarding consumers' rights: The consumer has many rights such as right to
health and safety, right to be informed, right to choose, right to be heard, right to redress,
etc. But many businessmen do not respect and protect these rights. Business ethics are
must to safeguard these rights of the consumers.
6. Develops good relations: Business ethics are important to develop good and friendly
relations between business and society. This will result in a regular supply of good quality
goods and services at low prices to the society. It will also result in profits for the
businesses thereby resulting in growth of economy.
7. Creates good image: Business ethics create a good image for the business and
businessmen. If the businessmen follow all ethical rules, then they will be fully accepted
and not criticized by the society. The society will always support those businessmen who
follow this necessary code of conduct.
8. Smooth functioning: If the business follows all the business ethics, then the
employees, shareholders, consumers, dealers and suppliers will all be happy. So they will
give full cooperation to the business. This will result in smooth functioning of the
business. So, the business will grow, expand and diversify easily and quickly. It will have
more sales and more profits.
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9. Consumer movement: Business ethics are gaining importance because of the growth
of the consumer movement. Today, the consumers are aware of their rights. Now they are
more organized and hence cannot be cheated easily. They take actions against those
businessmen who indulge in bad business practices. They boycott poor quality, harmful,
high-priced and counterfeit (duplicate) goods. Therefore, the only way to survive in
business is to be honest and fair.
10. Consumer satisfaction: Today, the consumer is the king of the market. Any business
simply cannot survive without the consumers. Therefore, the main aim or objective of
business is consumer satisfaction. If the consumer is not satisfied, then there will be no
sales and thus no profits too. Consumer will be satisfied only if the business follows all
the business ethics, and hence are highly needed.
11. Importance of labour: Labour, i.e. employees or workers play a very crucial role in
the success of a business. Therefore, business must use business ethics while dealing
with the employees. The business must give them proper wages and salaries and provide
them with better working conditions. There must be good relations between employer and
employees. The employees must also be given proper welfare facilities.
12. Healthy competition: The business must use business ethics while dealing with the
competitors. They must have healthy competition with the competitors. They must not do
cut-throat competition. Similarly, they must give equal opportunities to small-scale
business. They must avoid monopoly. This is because a monopoly is harmful to the
consumers.
a. Recent surveys reveal that large majorities of Americans believe that business
and business leaders have generally low ethical standards.
b. Most business owners and managers have built and maintained enduring
companies without breaking the rules, however.
c. It takes many years to build a company’s reputation yet only a short amount of
time to tear it down.
d. Review Johnson & Johnson’s credo (Figure 2.2). Point out that managers
actually use these standards to evaluate how well their firm is performing and have the
responsibility to address any lapses.
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2. Consequences of poor ethical decisions
a. Thousands of employees have lost their jobs and retirement savings due to the
misdeeds of management.
iii. U.S. organizations, by one estimate, lose more than $400 billion a year
to fraud.
ii. Some act unethically because they feel pressured to meet performance
quotas.
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iii. Others avoid actions that don’t mesh with their personal values and
morals.
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UNIT-3 Environmental Concerns and Corporations
A. Introduction
B. Environmental Concerns
C. History of Environmentalism and Environmental Philosophy
D. Role of Corporate in Environmental Management
E. Innovative Business Responses to Environmental Regulations
F. Waste Management and Pollution Control
G. Key Strategies for Industrial Pollution Prevention
A. Introduction
The importance of environmental preservation through better state and corporate
governance practices cannot be overstressed, given the increasing awareness among
people worldwide on this issue in the context of global warming and its attendant problems.
The state is enjoined to play a significant role to protect, preserve and nurture all creatures-
human, the flora and fauna-and to maintain ecological balances for the good of all mankind
and corporations have to assist the State in this endeavor. Governments worldwide are
assisted by the environment-conscious public, media, consumer and environmental groups
apart from corporations. Corporations have a special responsibility to bear, since they have
played a major role in environmental degradation. While producing goods, they have
destroyed forests, depleted water resources, overused irreplenishable resources, polluted
atmosphere and poisoned water. They have a stake in preserving the environment and the
ecology for posterity. Companies have a moral, ethical and social responsibility to maintain
the purity of the ecosystem and safeguard the environment.
B. Environmental Concerns
It is well-known that contemporary environmental problems are serious, but the specific
issues, consequences and priorities are vaguely defined and much less explained for people
to understand the implications of these problems. However, there is a clear appreciation
today than ever before that environmental quality is an important desideratum in the social
and economic development of nations, and the well-being of their people.
The growth of consumerism, leading to the high rate of consumption of natural resources, is
at the heart of many environmental problems. Traditionally, industry has been driven by
consumer demand to produce goods efficiently, regardless of the consequences. Regulation
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and innovation are changing this system, but yet have not solved the problems. The need to
have clean air and water, fertile soil, biodiversity and an overall cleaner would for the people
to live on, are all stressed to ensure the health of the global environment. Environmental
problems thus continue to pose challenges and opportunities to business as they have for
several decades.
Over the last century, many activists, writers and policy makers have debated about the
environment. Since the advent of the Industrial Revolution, human activity has taken an
increasingly heavy toll on natural resources. The natural balance has been distorted owing to
the over-dependence of mankind on the environment for the sake of small gains and a lack
of foresight. In the United States, as early as the turn of the 20 th Century, the importance of
natural resource conservation led to the establishment of National Parks by President
Theodore 1960s. Slowly the concept of environmentalism evolved as attitudes about human
impacts on air, water, forests and other aspects of the environment.
Increasing awareness and consequent concern on these issues were fuelled by informed
public sentiment, media coverage, corporate attitudes and government policy. Public protest
on air and water pollution led to the passage of many environmental laws by the US
Congress and to the creation of the Environmental businesses in “Not in My Backyard”
(NIMBY) campaigns is another example of how environtalism has impacted industrial activity.
Activists have encouraged industry to change practices and innovate in order to improve
environmental quality.
The economic implications of environmental problems have been key issues throughout the
history of environmentalism. Michael Silverstein argues that environment and economic
growth are not irreconcilable. He cites historical evidence dating back to the Industrial
revolution demonstrating that Business and environmentalists are not inherently in conflicts
as they are often perceived to be. The principles of industrial resources use and
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environmental conservation, he argues, are compatible in that each one focuses on
sustainability.
While activists have done much to publicize environmental problems, disasters such as
Bhopal, Three Mile Island and Exxon Valdez, and books such as Rachael Carson’s Silent
Spring have also raised public awareness on the health hazards of pollution and
environmental degradation. This realization has resulted in an increased demand for industry
disclosure and accountability. In many cases, increased awareness, regulation and changed
practices have resulted in improved environmental quality. However, many challenges
remain unresolved. Moreover, there is also a perceptible shift over time from confrontational
activism to cooperative problem solving among stakeholders.
Environmental Philosophy
Environmental philosophy takes a variety of forms and stances, each with some merit and all
adding to our understanding of the relationship between human beings and the environment.
A fundamental aspect of environmentalism is that the players who are involved in it are often
motivated by different philosophical approaches to the natural world. By gaining an insight
into the ideologies underlying the environmental movement, we can understand the
arguments and stances of the players involved. Environmental philosophy is also important
since it is useful in changing attitudes towards the environment.
John Bellamy Foster in Global Ecology and the Common Good argues that only a change in
common morality will help alter the present means of production and mass consumption,
which will otherwise lead to ecological collapse sooner than later. He further argues that the
self constructive levels of consumption in developed societies can be curbed by shifting to a
more holistic perception of the natural environment. “Nature” according to him, should be
included as a member of the moral community.
Marisa J. Mazzotta and Jeffrey Kline in Environmental Philosophy and the Concept of Non-
use Value argue that ideas from various environmental philosophies should be incorporated
into economic policy formulation. This is because resource economics, traditionally fails to
effectively measure non-use values. This leads to a dilemma in that some natural resources
lack an easily measurable monetary value, but are important to ecosystems. According to
them the ideologies of anthropocentrism, conservationism, preservationism, bio-centrism,
egocentrism, deep ecology, social ecology and eco-feminism are all frameworks applicable
to the relation between environment and economics.
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Another issue in environmental debates addresses the legal rights of nature. Joel Schwartz
in his article “The Rights of Nature and Death of God” poses the question as to who should
represent nature in a democracy, self-appointed environmentalists or elected officials. The
practical implementation of environmental philosophy in the debates of public policy and
regulation may be the key natural resource conservation.
Perhaps the most famous work in environmental philosophy is that of Aldo Leopold who in
his book A Sand Country Almanac, 1948, related his ideas that radically after the framework
in which humans relate to the environment. His concern about environmental degradation led
him to argue that nature must be protected both legally and morally. Leopold was an expert
in natural resource management who realized the consequences when humans are
alienated from their natural surroundings. His call for the inclusion of “nature” in the moral
community was an argument for preserving the environment for its own sake, not simply for
human use.
Industry is the world’s foremost creator of wealth, employment, trade, technology and
controls, deploys tremendous amount of human and financial resources for economic value
addition. Industrial and business processes add value to natural resources as these
transform the latter from raw gifts of nature into useful products. Industry today, carried on by
giant corporations, is synonymous with the “big Corporation”. Big Corporation is powerful
enough to influence any situation, be it developmental or environmental. But the mantle of
the big producer, creator of wealth and promoted of industry and commerce, and worn by the
big corporation since the 18th Century has been discarded in following the so-called ‘green-
philosophy’. Often blamed for producing massive amount in waste in an endeavor to produce
wealth, they are now expected to become protectors of the environment. The world,
according to the Brundtland Commission, was producing seven times more goods as
compared to the 1950’s. The Brundtland Commission was established by the UN General
Assembly in 1983 and was formerly known as the World Commission on Environment and
Development (WECD). The commission, under the chairmanship of Harlem Brundtland was
convened to address the growing global concern about the fast deterioration of the human
environment and quick depletion of natural resources, both of which adversely impacted
sustainable development. Today, about 20 years after the Brundtland Report, we are
producing several times more goods, but more importantly, we are producing several times
more waste; solid, aqueous and aerial. In recent years, as awareness about environmental
degradation occurring in air, water, soil and the biosphere has grown, most of the blame has
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been laid at the doorstep of industry, with the big corporations roped in as the main culprits
and enemies of the environment. Most types of environmental problems have been attributed
to industry, either local or global. Problems such as global warming, depletion of the ozone
layer, increase of instances of health problems, etc. are claimed to be the result of rapid
industrialization without a thought for environmental degradation. They are no longer
defensive and reactive. They are becoming innovative and proactive.
In the modern world, the role of corporate business has extended from beyond just producing
goods and services, or creating jobs, or even promoting industrial growth. Industry’s role is
fast changing from one that is negative to one that is positive in all areas of socio-economic
endeavor. They are now expected to act positively towards the improvement of the quality of
the environment. It has been realized by industrialists that it is imperative to perform their
conventional tasks of production of material goods in such a way so as not to impair the
quality of life.
The distinction made by Adam Smith between justice and benevolence is more relevant
today to corporate business than it ever was. Justice, according to him, is a negative
principle that prohibits harm; benevolence, however, requires positive action for the
realization of an intrinsically desirable goal- the well-being of others. Corporate business
today has the responsibility towards the society, not only to render social justice, but also to
promote the greatest good to the largest number of people. To the established duties of the
corporate sector of diverting a portion of their profits to community purpose, production of
goods and services, creation and protection of jobs, etc., has been added another one- by far
the most onerous, up-to-date zealous protection of the environment.
However, while growth in technology promoted by big business has created problems of
environmental destruction and degradation, it is this growth and technology that also hold the
hope for improvement-the solution also lies there. A better choice of technology-both
preventive and curative-can reduce the damage already done to the environment and
prevent further damage. The big business has already moved into a new chain of thinking, in
which technological dimensions are decreased and importance of social, economic, political,
cultural and especially environmental dimensions are growing in importance. This change
was first seen in the 1980s, especially in the attitude of chemical and oil companies. By the
time world leaders gathered for the Rio Summit in 1992, a Business Council for Sustainable
Development (BCSD) formed under the chairmanship of Stephen Schmidhering, a Swiss
Businessman, with its 50 Members, had put together guidelines for environmental friendly
behavior for companies.
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E. Innovative Business Responses to Environmental Regulations
There are several reasons why those managing business are becoming increasingly
conscious of environmental issues and go a step further to convert them to their own
advantages:
1. For Management Morale: Just to have a good environment record and the desire to earn
good reputation as protectors of the environment.
2. Cutting down Waste: In an era of lean management, many companies are finding ways
and means to cut waste whenever possible. Pollution prevention extends this concept to
resources, and firms are finding that they can significantly lower their “end-of-pipe”
abatement costs by not creating wastes in the first place. After all, some argue, what is
pollution, if not wasted resources? “Waste Not, Pollute Not” is the pollution prevention
mantra in American industries. “Doing it for Mother Earth” examines the gains that can be
realized in both compliance and profits from pollution prevention programs.
3. Encouragement: The Environment Protection Act (EPA) has acknowledged the potential
gains from pollution prevention as opposed to mere “end-of-pipe” compliance, and has
recently begun to encourage such practices through the use of voluntary programs.
4. Advantages from following: Business people have realized the advantages of taking a
proactive stance towards environmental regulation. Instead of fighting against regulations,
some firms are looking beyond mere compliance and improving their environmental
performance. There are a variety of innovative business strategies which involve
strengthening the firm’s bottom-line as well as the environment.
5. Voluntary Acceptance: Industry leaders have also realized the potential for additional
benefits from pollution prevention. By incorporating principles of waste reduction into
industry-led voluntary programs they hope to foster positive public opinion and perhaps
forestall inefficient regulations, while enhancing industry wide environment performance.
6. Green product approach: Products may meet regulatory standards when they leave the
factory, but may yet cause environmental damage through future use. Changing
regulations may create costly burdens for the firms that do not examine the lifetime
effects of their products. For example, many firms in the United States are incurring huge
remediation cost at Superfund sites, where polluting was not always illegal at the time.
Recent trends in regulation suggest that forward looking firms will protect themselves
through “Green Design” of their products and enhance their public image by examining
the entire life-cycle of their products.
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7. Consumers’ preferences towards eco-friendliness: To keep their consumers, who are
increasingly environmentally conscious happy, companies have to ensure that their
products, packages and even processes are environment friendly. There have been
several instances where the consumer movement has made companies change their
activities and processes, which contributed to environmental degradation, to become
environment friendly. For example, McDonald’s fast food chain to sell hamburgers in
polystyrene “clamshells”. Environmentalists followed by school children and other
consumers demonstrated outside McDonald’s shop and heaps of letters poured into their
headquarters at Chicago.
10. Cost of regulations: The fear of incurring the cost of environmental damage has risen as
regulations have been tightened by governments and courts of law.
11. Increasing Acceptance Level: In the past, environmental advocacy groups and
government regulators were seen as opponents of business. Now, however some firms
are finding that they can save a lot of effort and trouble, if they work with these groups to
find solutions acceptable to all stakeholders.
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2. Degradation of the natural resources: Degradation refers to the deterioration of the
quality of the environment. All production creates waste and pollution right through the
process of manufacturing to the disposal of the final product. Wastes-aerial, aqueous or
solid –degrade the air, soil and water quality and pose health hazards.
Disposing waste into the environment was cheap, if not free, until recently because the costs
from pollution were not borne by the producer of that waste. As a result, waste emission has
almost surpassed nature’s capacity to absorb wastes. Waste management has become
essential-in many cases it has been made mandatory through government regulations, but
with industry and business becoming environment conscious, waste management is finding
an increasingly important place in the agenda of big corporations.
2. Material balance: Identifying processes, inputs, outputs, recycle and reuse rates,
deriving a preliminary material balance and evaluating and re-fixing material balance.
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5. Use of newer, cleaner technologies: Development of preventive technologies to benefit
current and future scenarios, without transferring the problem from one media to another
media such as air, water and land, as is often the case. For example, waste treatment
processes produce large amounts of sludge and residue, which again would need a
disposal, program to prevent secondary pollution.
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Unit-4 Social Responsibility Accounting
Points Covered:
A. Introduction
B. Need & Importance
C. Practice
D. Reporting Standards
E. TWO CSR Reports
A. INTRODUCTION
The concept of corporate social responsibility emerged in the 2000’s when changing social values &
expectations gave rise to a debate about the role of business in society. This debate focused on the nature
of corporate social responsibility & gave rise to the possibility that this responsibility could be
discharged through a method of social responsibility accounting. It was argued that such a method of
accounting would indicate the nature and the manner of the firm's social contributions or outputs. A
number of areas of enterprise activity give rise to social contributions, namely the contribution to
income, to people, to the public, to the environment and by way of the product or service provided by
the enterprise.
The case of Enron in US that result in the dismissal of world’s most famous public Accountant office,
Arthur Andersen, has brought distrust among public on many companies’ financial reports that
only emphasize on profit without taking corporate social responsibility into account. The case of
Enron in US has made companies pay more attention to sustainability and corporate social
responsibility. Issues related to reputation, risk management, competitive advantage seems to be
strengths that push companies to reveal social information.
In running its business, company is not only responsible economically and legally, but also ethically in
relation to social and environmental values. In facing the impact of globalization, IT advancement and
free market, company has to seriously and openly paying attention to Corporate Social Responsibility
(CSR). Risk related to brand, partnership and investment are certainly affecting company’s
sustainability. Pressures from within and outside the country also influence corporate business behavior.
Those pressures may come from investors, Non-Governmental Organization (NGO), business partners
that particularly come from CSR conscious community and also from advocates who fight for public
interests.
Research in advance countries proves that investors prefer to invest in companies with high concern
and standard in CSR and environment issues. In this case, company needs to start having integrity
in economic, social and environmental values through the implementation of Social
Responsibility Accounting (SRA) practice. Company’s Annual Report is a potential tool that can
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accommodate the interest of all investors and stakeholders by showing the company’s social
responsibility and later on, able to show its holistic performance. SRA is a very powerful tool to show
company’s social activity in the Annual Report. Through this tool, company is expected to be more
conscious in practicing Social Responsibility Accounting, able to attract more investors and being
responsible to all stakeholders by being social responsible.
Need for social responsibility accounting is an indispensible part of present corporate. They are as under.
1. For Internal decision making: Management needs information to see the effectiveness of certain
social information in achieving company’s social goal.
2. For Product differentiation: A social responsible Manager has an intention to differentiate the
company from the other socially irresponsible competitors.
3. Enlightened self- interest: Company reports SRA to keep the social harmony with stakeholders that
consists of stockholders, creditors, employees, vendors, customers, government and community
because it influences the sales income and stock value.
4. For Harmony amongst stakeholders: The reason why companies report their social activities
in Annual Report is to influence stock market, as a form of social contract between company
and community of the earth’s limitation itself either socially, economically and politically. Because of
the company’s increasing awareness towards these facts, then the need to execute social responsibility
towards the stakeholders appear.
5. Assume Social Responsibility: Social Responsibility Accounting (SRA) is a part of company’s management
that tries to find better reason in the social responsibility acts. In its development, investor, either individual
or institution and all stakeholders (employee, government and community) are motivated by one reason
called trust. Throughout many researches, it was proven that when a company can manage its business
including environment and social aspects better, the company will earn better net profit.
C. PRACTICE
Disclosure in company’s annual report can be classified into mandatory disclosure and voluntary
disclosure. Mandatory disclosure must be done by every company and institution. It captures
information that must be shown in annual report according to the standard. On the other hand, voluntary
disclosure is not obligated by the standard but advised and will add value to the companies who do
it. SRA is one of voluntary disclosure that discloses responsibility regarding environment & social
issues.
Through social disclosure in the annual report, people can monitor the company’s activities in
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fulfilling its social responsibility and therefore, company can gain attention, trust and support from
people which will ensure company’s existence. Several basic principles in SRA disclosures in
company’s annual report:
1. Transparency: Company has to provide sufficient, accurate and on time information to the
shareholders so that a company can be called transparent especially when it is related with
environment and social issues disclosure. The lack of information will limit investor’s ability to the
quality, quantity and frequency of social responsibility accounting disclosure in annual report.
The holistic execution accompanied by compliance to the checking terms and law will improve
honesty and disclosure. Sufficient SRA disclosure is highly needed by stakeholders in their ability
to make decisions towards their investment risk and profit.
3. Honesty/Fairness: The third principle of SRA disclosure emphasizes on honesty. Investors &
stakeholders have to have clear right regarding ownership & abiding rules & law system to protect
their rights.
4. Sustainability: When company exist & generate profit, in the long term, they have to find ways to
satisfy its employees & community, maintain it surrounding environment & socially responsible.
Company has to be sensitive towards environment, attends to the law, treats workers fairly and
becomes good corporate member.
D. REPORTING STANDARDS
Reporting standards aim at helping firms to communicate information on their social and
environmental impact in a comparable way. Reporting standards provide indicators on social and
environmental issues that companies have to disclose information on. The first reporting initiatives
were created in Western Europe throughout the 1970s –most notably the legal requirement in France to
present a bilian social and the efforts of some German companies to publish a Sozialbilanz.
Nowadays, the GR I sets the most influential standards for social and environmental reporting
KPMG’s 2008 survey on corporate responsibility reporting revealed that reporting has gone
mainstream. Nearly 80 per cent of the 250 largest companies worldwide issue reports on non-
financial information (up from around 50 per cent in 2005).While reporting was started by
companies in industries that had a particularly strong social and environmental profile (e.g. mining
textiles, oil and gas, chemicals),it is nowadays widely used throughout most sectors .The KPMG
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survey also revealed that a large majority of those companies engaged in non-financial reporting are
using the GRI guidelines as a reference point to select report content .This wide ranging uptake of the
GRI guidelines creates several advantages: (1) Companies can better benchmark their
performance regarding non- financial issues; (2) stakeholders can better compare corporate reports and
are given reliable and quantifiable data, avoiding documents that purely rely on non- integrated case
stories and corporate ‘spin’ and (3) assurance providers can better verify report content (about 40 per
cent of all companies surveyed by KPMG used third party assurance to check on report quality).
Although reporting on social and environmental issues is supposed to serve stakeholders by providing
them accurate, timely and relevant information, corporate reporting practices are still criticized for
not considering and responding enough to the concerns of stakeholders.
Even quick look at most firms’ corporate responsibility reports confirms this criticism. Often reports
fail to present detailed and quantifiable data about a company’s impact on social and environmental
issues. Instead, many reports focus on unconnected case stories about philanthropic activities.
Considering this shortcoming and recognizing the need for more standardization in the field of
corporate responsibility reporting, the GRI released its first guidelines in 2000.Baseed on
deliberations between a variety of stakeholders, the GRI issued improved guidelines in 2002 (the so
called G2 guidelines)and in 2006 (the so called G3 guidelines).The GRI’s emphasis on multi
stakeholder engagement is vital as it gives legitimacy to the guidelines and allows for a structured
feedback process and ,as a consequence, a consideration of a variety of perspectives while
improving the reporting framework.
The GRI guidelines ask companies to report on indicators in three core dimensions; economic,
environmental, and social (see Box 12.2) IT should be noted that the GRI guidelines are not a
simple summary of a variety of performance indicators. A considerable part of the guidelines is
devoted to selected principles defining how the report is supposed to be complied. For instance, a
company that chooses to report in accordance with the GRI guidelines has to be responsive to
stakeholder expectations and interests (see Box 12.2) .The consideration of the process
dimension of corporate responsibility reporting .(How do we prepare our report?)is a specific
strength of the GRI guidelines since it allows managers to deliberately reflect on the way the
report is constructed over time. Currently, more than 750 firms use the GRI’s G3 guidelines while
creating their corporate responsibility reports (as of November 2009).This number is likely to increase
with more governments asking companies to create reports on financial information.
The GRI G3 guidelines consist of principles, giving guidance on how to prepare a report (e.g. how to
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define report content and how to ensure quality) and standard disclosures, determining specific
performance indicators, which elicit comparable information.
- Principles for defining report content .Reports should be (1) responsive to stakeholder
expectations & interests (2) give relevant information (3) present performance in relation to the
context the company operates in; & (4) offer complete information regarding a company’s
activities.
- Principles for defining report quality .Reports should (1) reflect positive and negative aspects of an
organization’s performance; (2) allow for comparisons over time and with other organizations (3)
contain accurate, reliable, timely and detailed information; and (4) present all information in an
understandable manner.
- Principles for setting the boundaries of reporting. The report should include entities (e.g.
Subsidiaries, joint-ventures, etc.) Whose financial and operating policies can be either controlled
and / or significantly influenced by the reporting organization.
GRI G3 asks companies, considering the principles mentioned above, to (1) describe key impacts,
risks, and opportunities; (2) give an organizational profile; (3) comment on the report scope and
boundary; (4) discuss corporate governance, engagement in external initiatives (e.g. the UN Global
Compact) and stakeholder engagement, and (5) give information on performance indicators such as
(selection):
Economic category: Direct economic value created, financial implications for the organization’s
activities due to climate change, significant financial assistance received from government;
Social category: Percentage or employees covered by collective bargaining agreements, total number of
incidents of discrimination, actions taken in response to incidents of corruption.
Most of these initiatives are conducted under the aegis of the Reliance Foundation, an umbrella
organisation for the Company's social sector initiatives. These initiatives happen to be in conformity
with the Sustainable Development Goals (SDGs), outlined in the United Nations 2030 Agenda for
Sustainable Development. Reliance focuses on ushering in change through the following focus areas:
Rural Transformation (RT) – Reliance works towards bridging the developmental gap between
rural 'Bharat' and urban 'India' by improving livelihoods and addressing poverty, hunger and
malnutrition. The programme design is distinguished by two unique features. First, it is a holistic
intervention for transformation driven by community aspiration goals and second, it has been
grounded with some of the most marginal communities of India. The programme aims at improving
farm and non-farm livelihoods through the promotion of sustainable agricultural practices, setting up
rain-water harvesting structures and institution building. Furthermore, Reliance's Information Services
provide validated and timely information to farmers, fisherfolk and livestock owners for taking right
decisions to improve income and livelihood and also avert avoidable risks. These initiatives help build
capacities of communities to promote peaceful and inclusive societies and ensure long-term
sustainable development.
Health (He) – Reliance provides affordable solutions for quality healthcare through improved
access to healthcare services and spreading awareness. The outcomes of healthcare related initiatives
include providing access to quality primary and secondary care services to the deprived population,
conducting need-based health camps and providing consultation and medicine, amongst others. Efforts
have been made to ensure better maternal and child healthcare services and improve delivery through
innovative research programmes. Through the Drishti programme, Reliance has worked with the
visually impaired.
Education (Ed) – Reliance seeks to provide quality education, training and skill enhancement
to improve the quality of living and livelihood. The Company focuses on promoting primary and
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secondary education, enabling higher education through scholarships, promoting higher education
through setting up and supporting universities and skill development through vocational training.
Sports for Development (SD) – Reliance focuses on using sports as a medium to encourage
learning and inculcate leadership amongst the youth. The programme uses sports and activities as a
tool for development to bring about positive change. Under this initiative, talented young students are
groomed further to build their skills in sports.
Reliance's CSR policy is aimed at improving lives, living and livelihood for a stronger and inclusive
India.
Disaster Response (DR) – Reliance works towards organising timely relief and rehabilitation
of communities affected by natural calamities. Efforts are also made to build capacities of local
communities to cope with disasters and develop expertise and resources to respond to it in a timely
manner.
Arts, Culture and Heritage (A&C) – The initiative towards protecting Indian Arts, Culture and
Heritage is aimed at supporting and promoting artists and craftsmen, preserving traditional art and
handicraft and documenting India's rich heritage for the benefit of future generations. Various
promotional and developmental projects and programmes have been conducted.
Ambuja Cement Foundation (ACF) – the corporate social responsibility arm of Ambuja Cement – has
been pivotal in advancing the company’s objective to be a socially responsible corporate citizen since
its establishment in 1993
Ambuja Cement Foundation (ACF) aims to ‘Energise, Involve and Enable Communities to Realise
their Potential’ through its initiatives. The foundation undertakes projects and schemes to promote the
social and economic development of communities in and around the manufacturing locations of
Ambuja Cement.
These development initiatives address the needs of the people by working with the beneficiaries,
NGOs and the government. ACF is functional across 12 states covering 22 locations in India and has
succeeded in bringing about change in the lives of 1.5 million people.
ACF’s focus areas include water resource management, agro-based livelihood, health care, education,
women's empowerment, infrastructure, disaster relief, energy conservation and wildlife protection.
Water Management
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Water is a key focus area for the Foundation. The water programme aims to create necessary
infrastructure for water conservation and bring about attitudinal change among communities.
Agriculture programme
The agriculture programme endeavours to promote sustainable farming practices and agro-based
livelihoods to transform rural communities.We help farming families prosper, by nurturing farmers
and organizing them into groups to enhance their profitability.
Skill Development
Ambuja Cement Foundation provides youth with training, employment and business opportunities to
help them achieve their aspirations in life. We work with Industry to identify skilling needs, then find
and support rural youth to obtain those skills and gain meaningful, dignified employment.
Health Care
We build healthy communities to enable people to lead more fruitful, productive lives.ACF strives to
bring around holistic change in the lives of underprivileged communities by improving safe drinking
water, sanitation, nutrition, livelihood, etc.
Education
We ensure that rural children get the support they need for a good education, and that differently-abled
children reach their full potential in life. ACF has been instrumental in providing access to quality
education and development to children from most marginalized groups.
Women Empowerment
The programme aims to bring about attitudinal changes and foster entrepreneurial spirit in women
with a view to trigger further change in their families and communities. We harness the power of
women as change-makers - generating income, making decisions, managing finances and leading their
communities.
DISCLAIMER
This study material is issued for CZPCBM Students. The basic objective of this material is to
supplement teaching and discussion in the classroom in the subject. Students are required to
go for extra reading in the subject through Library work.
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