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Embedding CSR in Business in the Indian Context 29 Purnima Bhatnagar
CHAPTER 4 – FINDINGS AND ANALYSIS
4.1. SCHEMA
This chapter is devoted to analysis of data collected on CSR practices of 21 firms under
review. It is divided into four sections.
4.2 SECTION 1: CSR STRATEGY AND MODELS is devoted to CSR strategy - models
that exist in Indian Business. Content analysis has been used to identify common themes
related to the constructs in existence after reviewing the CSR philosophy.
4.2.1 SECTION I - PART I - CSR PHILOSOPHY OF FIRMS UNDER STUDY
4.2.2 SECTION I - PART II - DERIVED CSR STRATEGY
While Part 1 lists the CSR philosophy of firms, Part 2 explains the Analysis and Findings.
4.3 SECTION 2: CSR ORGANIZATION is aimed at understanding the Organization
structure of CSR Department in firms under study.
4.4 SECTION 3: EMPLOYEE VOLUNTEERING PROGRAMS
Section 3 is dedicated to understanding the practices and levers associated with an
Employee Volunteering Program.
4.5 SECTION 4: NATIONAL VOLUNTARY GUIDELINES - INTEGRATION WITH
BUSINESS
Section 4 intends to study the various principles for responsible business, as expounded in
the National Voluntary Guidelines, 2011 designed by the Ministry of Corporate Affairs.
Embedding CSR in Business in the Indian Context 30 Purnima Bhatnagar
4.2 SECTION 1: CSR STRATEGY AND MODELS
Four sectors of Indian business – Automotive, Oil, Gas and Energy Transmission, Banking
and Financial Services as well as Computer Software were evaluated for prevalence of CSR
Models.
4.2.1 SECTION I - PART I - CSR PHILOSOPHY OF FIRMS UNDER STUDY
Industry I - Automobile Sector
1. Maruti Suzuki
"While working to enhance stakeholder wealth, Maruti Suzuki will regularly engage with all
stakeholders to assess their needs and through its products, services, conduct and
management initiatives, promote their sustained growth and well being." Sustainability
philosophy: "Give, Get, Grow" - Maruti has focused on growing with its partners.
2. Tata Motors
True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to
Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and
is engaged in community and social initiatives on labour and environment standards in
compliance with the principles of the Global Compact. In accordance with this, it plays an
active role in community development, serving rural communities adjacent to its
manufacturing locations.
3. Mahindra and Mahindra
We see our role as a major corporation both in India and in the world as an incredible
opportunity to lead businesses towards sustainability. Sustainability encompasses not only
the conservation of our environment, but also a responsibility to every stakeholder—not only
our shareholders, employees, and customers, but also the communities we impact and the
suppliers we source from. By making every aspect of our business sustainable, from creating
fuel-efficient automobiles in green facilities to encouraging sustainable supply chain
management to reducing office footprints, we affirm our commitment to a better world.
Mahindra Group has a legacy of values, social consciousness and integrity. Mahindra's CSR
is committed to "Building possibilities" for socially and economically disadvantaged
communities to enable them to "Rise" above their limiting circumstances.
4. Hero Motocorp
Core values - Care, Innovation and Trust - to guide in all they do. Must do something for the
community from whose land we generate our wealth. Broader goal is serving humanity
through social initiatives. Express inseparable balance between Economic, Environmental
and social issues faced by business. Besides being focused on welfare of economically and
Embedding CSR in Business in the Indian Context 31 Purnima Bhatnagar
socially deprived sections of society, Hero Corp aims at developing techno - economically
viable and environment friendly projects, products and services, while at same time ensuring
highest standards of safety and environment protection in its operations.
5. Bajaj Auto
CSR is synonymous with conducting Business. There is a wide spectrum of community
development endeavours in the area of Health, Education, Women empowerment, etc.
Real credit is to those, "whom we have enabled on the path of 'sustainable and inclusive
growth' and well being."
Industry II – Banking and Financial Services
1. State Bank of India
The Bank is a corporate citizen with resources at its command, and benefits which it derives
from operating in society in general. It therefore owes a solemn duty to the less fortunate and
under – privileged members of the same society.
Staff members are encouraged to make their contribution by understanding the aspirations of
the people around them and by endeavoring to evolve measures to remove indisputable social
and developmental lacunae.
2. ICICI Bank
ICICI Foundation
To empower the poor to participate in and benefit from the Indian growth process through
integrated action in the fields of elementary education, sustainable livelihoods, primary health
and financial inclusion. This will be achieved through active collaboration with the
government and independent organizations
3. Axis Bank
Axis Bank Foundation strives to improve the standard of living of the underprivileged people
in India, by providing them Education, Healthcare and Livelihoods.
ABF believes that education is the key to break the relentless cycle of poverty and works with
NGOs for children, making efforts in the education space to reach out to as many people as
possible. It also aims to help create capabilities in terms of skills and employment
opportunities for disadvantaged / differently - abled people especially children.
Embedding CSR in Business in the Indian Context 32 Purnima Bhatnagar
4. Punjab National Bank
Views CSR as a commitment to operate in an economically, socially and environmentally
sustainable manner, while recognizing interests of stakeholders, including investors,
customers, employees, business partners, local communities, the environment and society at
large and contributes to quality of life of society.
CSR Strategy includes Sustainability, Corporate Volunteering, Social Investment, Health,
Collaboration and Green Initiatives.
According to the bank, CSR is not a destination, but a journey.
5. Canara Bank
CANARA BANK has been a pioneer in initiating and implementing multifaceted and
innovative programmes aimed at development of people from the lower strata of the society.
The Bank has been playing a pivotal role and trying to bring about a socio-economic
transformation in the society, particularly in rural areas.
6. HDFC Bank
At HDFC, 'Corporate Social Responsibility' has always been an evolving concept, akin to its
'learning by doing' philosophy. As part of its social objectives, HDFC has always endeavored
to contribute to economic development and social upliftment of the weaker sections of
society and has professionally nurtured each of its social initiative as an investment. HDFC
has undertaken development oriented work and supported several social initiatives in the
areas of education, child welfare, medical research, welfare for the elderly and the
handicapped among several others.
―Demand for greater responsibility from Business is the fundamental tenet of Sustainability.‖
A key aspect of sustainability is contribution to society through CSR projects.
Sustainability should form an integral part of business.
Industry III – Computer Software
1. Infosys
Infosys Foundation
To support the underprivileged sections of society.
CSR Philosophy
Our social contract inspires employees to contribute to community welfare, environment
sustainability and digital literacy
Embedding CSR in Business in the Indian Context 33 Purnima Bhatnagar
Sustainability
Sustainability is not optional but a business imperative. Infosys has always adhered to the
sustainable approach to business and has helped clients conduct their business in a
sustainable manner. We look at sustainable practices as an opportunity to apply our core
strengths for social good, and innovate to create winning solutions.
We are aware that growth is inextricably linked to the well-being of our ecosystem -
employees, business partners, local communities and the environment. Our sustainability
policy guides interactions with stakeholders and influences day-to-day actions.
2. Tata Consultancy Services Ltd.
The guiding principle of TCS‘ Corporate Social Responsibility programs is ―Impact through
Empowerment,‖ where empowerment is a process of strengthening the future today, so that
risks are minimized, value created and certainty is experienced. We strive to ensure that the
communities engaged through our CSR initiatives also experience certainty in their lives.
3. Tech Mahindra Ltd.
We aspire to see youth that is constructively employed, children who are purposefully
engaged and a society that provides equal opportunities to people with different abilities.
4. Oracle Financial Services Software Ltd.
Oracle's corporate citizenship initiatives are grounded in our technology leadership. We are
committed to using our resources to increase opportunity, protect the environment, advance
education, and enrich community life.
―Our endeavor is to support activities which do not have any religious or political affiliation.‖
Pg, 15, Annual Report 2011 – 12
5. K P I T Cummins Infosystems Ltd.
―KPIT Cummins‘ corporate social responsibility initiatives strive to ensure that we
contribute to the well-being of all our stakeholders. Our choice of the initiatives is
based on our areas of core strengths as this will result in maximum benefit for the
stakeholders by blending our passion with our competencies.‖ Cummins India
Sustainability report, 2012 – 13
Embedding CSR in Business in the Indian Context 34 Purnima Bhatnagar
Industry IV – Crude Oil and Gas, Electricity distribution and Refinery
1. Oil and Natural Gas Corporation Ltd.
CSR is rooted in sustainable and inclusive growth for all key stakeholders. ONGC has a
stakeholder centric approach and aims at creating value for all stakeholders, through adoption
of well designed and executed CSR projects in alignment with guidelines for CSR.
2. Bharat Petroleum Corporation Ltd.
Making a difference and adding value in people‘s lives.CSR Methodology includes
i. Building sustainable community where BPCL operates
ii. Health and safety of workforce and community
iii. Environment to minimize adverse impacts while taking steps to protect and enhance
natural environment
3. Oil India Ltd.
To promote awareness and practice of good corporate citizenship, by business becoming an
integral part of societal process, where people have access to resources to make informed
choices and decisions towards a more humane and compassionate society.
CSR strategy encompasses mobilizing core competencies and resource of business, public
organizations and government institutions, to facilitate their working in partnership on
projects that benefit society.
4. Indian Oil Corporation Ltd.
―Thrust on CSR for Inclusive growth‖, pg 40, IOC Corporate Sustainability Report, 2010
―Through its Memorandum of Understanding (MoU) with the Public Sector Undertakings,
the Government of India has been bringing enhanced focus to CSR activities and Sustainable
Development. This is a welcome step and the corporation has already incorporated targets
pertaining to these areas in its MoU with the Government. Thrust on these areas will go a
long way in establishing a long-term competitive edge to the corporation.‖ Page 13, IOC
Corporate Sustainability Report, 2010
5. Power Grid Corporation of India Ltd.
Power Grid Corporation as a responsible corporate citizen shall promote community
development with focus area on education, healthcare and infrastructure development and
support ecology and environment conservation and disaster relief in the country.
Embedding CSR in Business in the Indian Context 35 Purnima Bhatnagar
4.2.2 SECTION I - PART II - DERIVED CSR STRATEGY
4.2.2.1 Findings and Analysis– Aggregate Level
The Sustainable Development Model is followed by 48% of the organizations and Integrative
Social Contract model is found to exist in 43% of the cases.
4.2.2: Graph I: CSR Models in Practice across Four Sectors – Aggregate View
5%
19%
14%
43%
5%
10%
48%
0% 10% 20% 30% 40% 50%
Ethical
Risk Management
Strategic
Integrative Social Contract …
Integrative
Stakeholder Management
Sustainable Development
CSR Model - Overall (4 Sector view)
Percent
4.2.2.2 Findings and Analysis - Disaggregated Level:
i. 80% of the Firms in the Automotive sector follow a Sustainable Development model.
ii. 60% of the firms in the Oil, Gas and Energy Transmission sectors follow a
Stakeholder Management Model
iii. 60% of the firms in the Computer Software sector and 67% of firms in the Banking
sector follow the Integrative Social Contract model.
4.2.2: Graph II: CSR Models in Practice across Four Sectors – Disaggregated View
20%
40%
20%
20%
80%
20%
40%
20%
60%
17%67%
33%
20%
20%
60%
20%
0% 20% 40% 60% 80% 100%
Ethical
Risk Management
Strategic
Integrative Social Contract theory - CC
Integrative
Stakeholder Management
Sustainable Development
Sectoral View of CSR Models
ITES Banking Oil and Gas and Energy Transmission Automotive
Embedding CSR in Business in the Indian Context 36 Purnima Bhatnagar
4.2.2.3 Content Analysis of CSR Philosophy and Strategy
Automobile Sector:
The models underlined in Chapter 1 have been used to map the efforts of firms in
purview.
i. Out of the five firms analyzed, the theme of CSR as Sustainability was found to exist
in four organizations (80% of the cases). This is basis the usage of the concept of
―Sustainability‖ or emphasis on all three aspects of economic, social and
environmental impact.
ii. The concept of stakeholder management, Integrative model and risk management
model were found to co – exist with the sustainable development model in three
firms.
iii. Ethical and Risk management model was also found to co-exist in one
organization.
Table 4.2.2.3.1 Content Analysis Mapping in the Automotive Sector
S
No.
Company CSR Philosophy Themes (Key words underlined) Model
1 Maruti
Suzuki
Enhance stakeholder wealth
Engage with all stakeholders
Promote their sustained growth and well being
Stakeholder
Management , similar
to Greater common
good approach
Sustainable
Development
2 Tata Motors
Engaged in community and social initiatives on
labour and environment standards in
compliance with the principles of the Global
Compact
Serving rural communities adjacent to its
manufacturing locations.
Ethical model –
Universal rights
Risk Management
3 Mahindra and
Mahindra
Lead businesses towards sustainability
"Building possibilities"
Making every aspect of our business
sustainable
Sustainable
Development
Integrative model
4 Hero
Motocorp
Serving humanity through social initiatives
Balance between Economic, Environmental
and social issues faced by business
Highest standards of safety and environment
protection
Sustainable
Development
Risk management
5 Bajaj Auto CSR is synonymous with conducting Business
Enable on the path of 'sustainable and inclusive
Sustainable
Development
Embedding CSR in Business in the Indian Context 37 Purnima Bhatnagar
S
No.
Company CSR Philosophy Themes (Key words underlined) Model
growth' and well being."
Banking Sector:
i. Out of the six firms analyzed, CSR is found to prevail in the form of Integrative
Social Contract and Corporate Citizenship model in 67% of the cases. This is basis
the strong sense of responsibility which the firm is found to have towards society,
especially the development agenda.
ii. CSR as Sustainable development is found to exist in 33% of the banks evaluated.
iii. Strategic model of CSR was found to exist in one case, because of the explicit
mention of Financial inclusion as part of the philosophy. Here it is found to co-exist
with the Integrative Social Contract theory.
Table 4.2.2.3.2 Content Analysis Mapping in the Banking Sector
S
No.
Name of
Organization
CSR Philosophy Themes (Key words
underlined)
Model
1 State Bank of
India Corporate citizen Integrative social contract theory -
CC
2 ICICI Bank Empower the poor
Elementary education, sustainable
livelihoods, primary health and financial
inclusion
Active collaboration with the
government and independent
organizations
Strategic CSR
Integrative social contract theory
3 Axis Bank Improve the standard of living
Education is the key to break the
relentless cycle of poverty
Help create capabilities
Theme is a strong sense of responsibility
towards society
Integrative social contract theory -
CC
4 PNB Operate in an economically, socially and
environmentally sustainable manner
Sustainable Development
5 Canara Bank Development of people from the lower
strata of the society
Socio-economic transformation
Integrative social contract theory -
CC
6 HDFC Bank Economic development and social
upliftment
Sustainable Development
Embedding CSR in Business in the Indian Context 38 Purnima Bhatnagar
S
No.
Name of
Organization
CSR Philosophy Themes (Key words
underlined)
Model
Key aspect of sustainability is
contribution to society through CSR
projects
Sustainability should form an integral
part of business
Computer Software:
i. Three out of five firms analyzed follow an Integrative Social Contract and Corporate
Citizenship model (60%).
ii. One firm each was found to follow Strategic, Sustainable development and risk
management models.
Table 4.2.2.3.3 Content Analysis Mapping in the Computer Software Sector
S
No.
Name of
Organization
CSR Philosophy Themes (Key words
underlined)
Model
1 Infosys Social contract inspires employees to
contribute to Community welfare,
environment sustainability and digital
literacy
Sustainability is not optional but a
business imperative
Integrative Social Contract theory
Sustainable Development
2 Tata Consultancy
Services
Impact through Empowerment
Communities engaged through our CSR
initiatives also experience certainty in
their lives
Risk Management
3 Tech Mahindra Aspiration - Youth is constructively
employed, children are purposefully
engaged and society provides equal
opportunities to people with different
abilities
Overall sense of responsibility towards
society
Integrative Social Contract theory
4 Oracle Financial
Services Software
Ltd.
Corporate citizenship initiatives are
grounded in our technology leadership
Integrative Social Contract theory
– Corporate Citizenship
5 K P I T Cummins
Infosystems Ltd.
Contribute to the well-being of all our
stakeholders
Choice of the initiatives is based on our
areas of core strengths
Strategic CSR
Embedding CSR in Business in the Indian Context 39 Purnima Bhatnagar
Oil and Gas and Energy Transmission:
i. Three out of five firms analyzed follow a Sustainable Development model (60%) and
two follow an Integrative Social Contract and Corporate Citizenship model (40%).
ii. One firm each was found to follow Strategic, stakeholder management and risk
management models.
iii. It is found that Integrative social contract theory co-exists with Strategic CSR
iv. It is also found that Sustainable development model co-exists with Stakeholder
management and Risk management models in this sector.
v. In the case of Oil India Limited, there is a specific reference to aiding the creation of a
more just and humane society in the CSR Philosophy. While, this is near the Greater
Common Good approach, it is felt, that this aspect as not been covered by any of the
theories prevalent in the literature on CSR, and needs further investigation.
Table 4.2.2.3.4 Content Analysis Mapping in the Oil, Gas and Energy Transmission
Sector
S
No.
Name of
Organization
CSR Philosophy Themes (Key words
underlined)
Model
1 ONGC Sustainable and inclusive growth
Stakeholder centric approach
Sustainable Development Model
Stakeholder Management Model
2 Bharat Petroleum
Corporation Ltd. Sustainable community
Health and safety of workforce and
community
Environment to minimize adverse
impacts
Sustainable Development Model
Risk Management Model
3 Oil India Ltd. Corporate citizenship
More humane and compassionate
society
Mobilizing core competencies
Working in partnership
Integrative Social Contract theory
– Corporate Citizenship
Strategic CSR
New motivation – Beyond Greater
Common Good
4 Indian Oil
Corporation Ltd.
Thrust on CSR for Inclusive growth Sustainable Development Model
5 Power Grid
Corporation of
India Ltd.
Responsible corporate citizen Integrative Social Contract theory
– Corporate Citizenship
Embedding CSR in Business in the Indian Context 40 Purnima Bhatnagar
4.3 Section 2: CSR Organization
This section is devoted to broadly understanding CSR organization, CSR plans, knowledge
management aspects, evaluation processes, and employee volunteering nuances.
4.3.1 CSR Structure
1. Who is responsible for CSR in the organization?
It is found that out of 21 firms, 62% of the firms have a CSR Committee to oversee the
function, whilst 42% of the firms also have a Foundation or Trust.
4.3 Graph 1: Who is responsible for CSR in the organization?
14%
10%
14%
48%10%
62%
Q. Who is responsible for CSR in the organization?
Individual Director
Shared with HR
Separate department
Foundation / Trust
Central team/Council
Committee
Examples of Terms of reference of Committees where available are listed below:
Table 4.3.1 Terms of Reference of Corporate Social Responsibility Committees
S No. Firm Name Committee Responsible Terms of Reference
1 HDFC
Bank
CSR Committee 1. Formulate CSR strategy, Policy and Goals;
2. Monitor CSR Policy and performance;
3. Ensure legal and Regulatory compliance from
CSR Standpoint,
4. Ensure reporting and communication to
stakeholders on Bank's CSR.
2 Axis Bank Sustainable
Development and CSR
Committee
1. Monitor implementation of policy
2. Provide guidance for fulfillment of bank's social
responsibility.
3 ICICI Bank CSR Committee 1. Review of CSR Initiatives of ICICI Group and
ICICI Foundation for Inclusive Growth;
2. Make recommendations,
3. Review and implement any other matter, as
recommended by RBI and another body.
4 IOCL CSR and Sustainable
Development Committee
1. The committee recommends, monitors and
administers activities under CSR;
2. Sustainable Development Plan;
3. SD Policy;
4. Oversee implementation of performance.
5 BPCL Sustainable
Development Committee
1. Committee defines a clear sustainable agenda in
line with Board approval.
2. Direction - Increase awareness of management,
staff, employees, stakeholders, and peer group;
Embedding CSR in Business in the Indian Context 41 Purnima Bhatnagar
S No. Firm Name Committee Responsible Terms of Reference
3. Focus is on internal skill development and
competency building;
4. Benchmark Sustainable Development
performance against peer companies
It is observed that while in the Banking sector, the terms of reference include review and
monitoring responsibilities, this function is accorded to DPE in the Oil, Gas and Energy
sector.
2. Who is the CSR Function responsible to?
Out of 15 Firms for whom data was available,
Board - 87% (13 Firms)
CEO - 7% (1 Firm)
Chairman – 7% (1 Firm)
4.3 Graph 2: Who is the CSR Function responsible to in the firm?
87%
7%7%
Q. Who is the CSR Function Responsible to in the Firm?
Board
CEO
Chairman
3. How are CSR programmes decided/ initiated within the Firm?
Out of 10 firms, for which data is available, 40% of the firms have a mix of Board driven and
decentralized decision making regarding initiation of CSR Projects. For the remaining firms,
it is a combination of Individual Units, or employees with other entities
4.3 Graph 3: CSR Project Initiation Responsibility (Percentage Firms)
10%
40%
10% 10% 10% 10% 10%
0%
10%
20%
30%
40%
50%
Bo
ard
On
ly
Bo
ard
an
d I
nd
ivid
ual
U
nit
s
Bo
ard
, In
div
idu
al
Un
its
and
Em
plo
yee
s
Ind
ivid
ual
Un
its
Alo
ne
Co
un
cil,
Emp
loye
es
and
Tru
st
CSR
Co
un
cil
Fou
nd
atio
n A
lon
e
CSR Project Initiation Responsibility (Percentage Firms)
Embedding CSR in Business in the Indian Context 42 Purnima Bhatnagar
Considerations which firms keep in mind whilst evaluating projects are as follows:
CSR Projects may be undertaken to enhance business interests (BPCL)
Undertaken in and around business and creating value for stakeholders (BPCL,
Infosys)
Part of nation building - undertaken for poorest of the poor, rural and tribal areas
(BPCL)
Large scale key projects in line with focus areas of the firm (ONGC, TCS)
Preference is given to those projects where state government/local administration or
Panchayat provides matching grant (Power Grid Corporation)
NGO partner should be involved in process of identifying projects upfront. (Power
Grid Corporation)
Disaster Relief (TCS)
Basis Community to interact with (TCS, ICICI Bank)
4. Who monitors performance of the CSR department?
It is observed that out of 15 firms for whom data is available, in 50% of the cases, the Board
is the monitoring authority for CSR performance, and Committee of the Boards have
responsibility to monitor in 43% of the cases. The CMD receives reports from the
implementing authority in the remaining one case (7%).
4.3.2 CSR Planning
1. Is there an annual plan for CSR in the firms under study?
Information is available for only 14 (67%) firms, all of which have an annual plan and
targets related to environmental and social initiatives.
2. Is there a scheme to encourage employee volunteering in the firm?
16 firms (76%) of the firms have disclosed the presence of employee volunteering
programs in the organizations.
A separate section is devoted to how employee volunteering programs are embedded in the
firms under study.
3. How is the CSR budget allocated to divisions and projects?
This data was available for only 9 firms. Information points to the fact that overall Profit after
tax (PAT) considerations guide allocations to CSR projects – 44% of firms. Importantly,
importance to individual business unit/division proposals with respect to budget allocations is
accorded in Sustainability reports in 2 firms.
Embedding CSR in Business in the Indian Context 43 Purnima Bhatnagar
4.3. 1 Graph I: How is CSR Budget allocated to Divisions?
44%
33%
22%
0%
20%
40%
60%
Percentage of overall PAT
Percentage of PAT and Program Basis
Individual BU Unit
Q. How is CSR Budget allocated to Divisions?
In the case of Oil, Gas and Energy Transmission sectors working under the overall
guidance of Department of Public undertakings, projects are decided at the beginning
of each year, and Memorandum of Understanding signed with the CPSEs.
A certain percentage of funds remain unallocated for national calamities e.g. 10% in
the case of Power Grid Corporation Ltd.
In the case of Private sector firms like Infosys, the Foundation receives proposals
from Institutions like NGOs, which are evaluated by a panel of experts. ―Projects are
prioritized by Impact Match Funding requirements, with availability of funds in the
corpus.‖
In the case of Banks like SBI, it has been disclosed that while overall 1% of net profit
was devoted to CSR, normal donations constituted 0.75% of profit and national
donations constituted 0.25% of profit.
It is found information is generally lacking in the public domain related to this area.
4. Guidelines related to NGO Partnership
7 firms have mentioned different nuances about partnering with NGOs. Some of the key
points preferred by Firms are:
They should be ―outstanding community based NGOs‖.
NGOs should ―share the goals and values of the firms‖.
NGOs should have ―demonstrated competence, dedication and integrity‖.
NGOs should be able to have ―detailed discussions regarding objectives, deliverables,
timelines, outcomes‖ related to a project under consideration.
NGOs should be able to submit ―reports and feedback analysis‖.
―Non religious and apolitical NGOs‖.
Should have an 80G certificate.
Embedding CSR in Business in the Indian Context 44 Purnima Bhatnagar
4.3.3 Knowledge Management and Awareness Creation about CSR Programs
1. How does the Firm enable employees to learn about CSR and Sustainability?
Various practices are adopted by Firms to enable employees to learn about CSR and
Sustainability. The most widely practiced are related to Engagement via participation in
volunteering programmes (67%), and embedding into company structure and policies
(52%) e.g. Code of Conduct and systems related to HSE, as well as training and workshops
(52%)
4.3.3 Graph I: How does the firm enable employees to learn about CSR and
Sustainability?
24%
10%
52%
14%
33%
52%
0%
76%
14%
0%10%20%30%40%50%60%70%80%
Code
of C
ondu
ct
Impa
ct M
easu
res
Com
pany
str
uctu
re
and
polic
ies
Purc
hasi
ng a
nd
supp
ly c
hain
in
itia
tive
s
Com
mun
icat
ion
and
dial
ogue
Empl
oyee
trai
ning
an
d w
orks
hops
Com
pany
vis
its
Empl
oyee
vo
lunt
eeri
ng
prog
ram
mes
Imm
ersi
ve
expe
rien
ce a
t th
e ti
me
of r
ecru
itm
ent
Q. How does Firm enable employees to learn about CSR and Sustainability
Other practices described by firms include initiatives like:
Internal Skill Development (BPCL)
Competency building (BPCL)
New initiatives (BPCL)
Benchmarking (BPCL)
Sustainability performance (BPCL)
Sustainability workshops (BPCL)
E Learning module on Environmental Awareness (KPIT Cummins)
Celebration of Environmental days (Infosys)
Eco Group (Infosys)
Art (Infosys)
Collaborate with NGO Partners with respect to Street plays (Infosys, ICICI Bank)
Payroll giving (ICICI)
Fellowships for Teach India (ICICI)
4.3.4 CSR Systems and Evaluation
1. Does the company measure environmental and social impacts and externalities?
Embedding CSR in Business in the Indian Context 45 Purnima Bhatnagar
It is found that 52% of the firms measure environmental and social impacts of
operations and initiatives. No firm was found to have reported any externality related
to their programmes. Information was not available for the remaining 48% of firms.
2. Does the company’s risk management system include social, environmental and
ethical risk?
Only 4 firms (19%) have disclosed they incorporate social, environmental and ethical
risks in their Risk management system. 2 firms (9.5%) have disclosed they do not,
and information is not available for the remaining 15 firms (71%).
3. Is there a specific CSR balanced scorecard in place?
Only 2 firms (9.5%) have disclosed the presence of a scorecard, and one organization
has disclosed it is under development. There is no information available in the
remaining 19 firms.
4. Does the annual Op plan include CSR components?
10 firms (47.6%) have CSR components as part of their Operation Plans. No
information is available about the other firms.
5. How frequently do different facilities report on CSR issues?
The following practices are available for 7 firms.
Annually – 3
Quarterly - 2
Monthly – 1
Weekly – 1
The most holistic information was found for TCS where ―CSR initiatives are
tracked to determine outcomes achieved and benefits to society. The company has
an Internal tracking mechanism, monthly reporting process, follow up field visit,
telephonic and email communications. It has engaged highly trained employees to
drive and monitor CSR actions.‖
6. What aspects of projects are evaluated when assessing performance of projects?
Firms evaluate various aspects in different areas.
Utilization of funds vs. Sanctions
Outcomes
Impact factors and Benefits achieved
Publicity measures undertaken
7. No information is available in public domain regarding inclusion of CSR Goals
and achievements in the annual performance appraisal of employees, as well as
consequences thereof.
Embedding CSR in Business in the Indian Context 46 Purnima Bhatnagar
4.3.5 CSR Communication
1. What form does CSR Communication take in the firms under study?
Various forums like Annual Reports, Sustainability Reports, CSR Reports, Business
Responsibility Reports, Policies, Website and Online portal form the key forums for
communicating information related to Corporate Social Responsibility.
Embedding CSR in Business in the Indian Context 47 Purnima Bhatnagar
4.4 SECTION 3: EMPLOYEE VOLUNTEERING PROGRAMS
This section aims to provide examples of employee volunteering programmes in the context
of the sectors under study. The focus is on understanding strategy, structural designs,
evaluation of programs and Impact areas.
4.4 Graph I: Components of a Model of Employee Volunteering
4.4.1 Strategy
A key finding related to strategy is that Volunteer Programs in practice dovetail into overall
firm CSR Strategy and focus areas.
Moreover, they tend to be localized (Infosys), to facilitate easy engagement with causes of
interest in the vicinity of the place of work. This also leads to decentralized decision-making,
enabling employees to feel empowered. This helps increase employee satisfaction (Punjab
National Bank) and builds ―social capital‖ for the benefit of the firm.
Volunteering is also being influenced by globalization. For employees of Indian firms
located in other countries, ―giving back to society‖ philosophy may take the form of
participating in volunteering programs at their client‘s end.
The Infosys Samaritans Network – Group of Volunteers counseling on life challenges,
adds a third ―Looking Within‖ dimension to volunteering. Trained in ―barefoot counseling‖,
peer group of volunteers spend time listening to, empathizing with and supporting fellow
employees cope with life‘s challenges. They perform this activity over and above their jobs.
Embedding CSR in Business in the Indian Context 48 Purnima Bhatnagar
This activity is one of the first of its kind in India, and is running at seven campuses. It has
had positive outcomes for 638 employees.
Another interesting finding is that firms are innovating with degrees of volunteer
engagement and skills in their programs. A case in point is the three tier model at Tech
Mahindra. It broadly conforms to the model provided below:
―A base of large number of volunteer-driven events: Large number of volunteers
(requiring generic skill, small time-commitment, one-time volunteering also fits in).
A narrower next level of activities: Higher volunteer engagement (specific skill,
longer time duration, ongoing): Examples - Magnificent seven (M7) volunteers and
full time volunteering, Infosys Sabbatical Program – the first of its kind in India.
A top-level of advocacy for right causes at right places, using Tech Mahindra
strengths.‖
At the other end of the plane is BPCL, which aims to ―develop employee volunteering as part
of corporate culture by having a minimum of 10 % employees help out in the next five
years.‖ The strategy is to create core competent volunteers in thrust areas like energy
audits, environment awareness, pipeline security and disaster management. This will
enable ―a responsible business‖.
There are multiple models which relate to the going alone vs. collaborative mode. There are
Foundations and trusts which may intervene in the social space through their dedicated
charitable arms e.g. Bajaj with nearly 40 Trusts. Others find it meaningful to participate in
social interventions with other NGO partners e.g. ICICI Foundation, collaborating with
Pratham NGO in the education space in Rajasthan schools. New opportunities are also arising
with industry platforms providing opportunities to firms to collaborate on volunteer
programs, e.g. Nasscom Foundation, with their My Kartavya site allowing firms to view and
register for activities of mutual interest.
4.4.2 Structural Design
In terms of design, TCS Maitree model is exemplary.
Maitree (meaning ―friendship‖) is the worldwide structure and brand for the company‘s
volunteering. Within the company, Maitree has a series of clubs for Associates and their
families. ―Activities, managed by volunteers, are based on annual surveys of employee
interests. ―Offline volunteers‖ perform in support roles for ―on the field volunteers‖ who
deliver the programs.
The ―overall structure includes Global Head, Maitree which is supported by a Corporate
Maitree team that helps and guides the roll out of all the initiatives and activities in
coordination with Branch Leads, Maitree & supported by HR teams in branch offices who
report to the branch HR heads.
Embedding CSR in Business in the Indian Context 49 Purnima Bhatnagar
Maitree‘s success is directly related to its integration with the core business. It is seen as an
essential channel for human resource development and as a vehicle for engaging with
employees.‖
The key trend is that it is employee driven. Another good example is ―The Magnificent Seven
(M7) model, which is a team of seven or more volunteers, who take ownership of a project
under a program. The team identifies requirements and provides full-cycle leadership to the
identified project, and implements it with other volunteers and Foundation members. Tech
Mahindra has 15,000 registered volunteers and 500 Magnificent Seven-teams, crossing
8,50,000 volunteer hours.‖
4.4.3 Evaluation
No firm in the sectors under study identified the presence of an evaluation model for
employee volunteer efforts separately.
4.4.4 Impact
The focus areas of activity per review of sources, highlights the top three areas for
employee volunteering. These are Education, Healthcare and Environment, and are
corroborated with the findings of Principle 8 on Inclusive Growth, later on the dissertation.
4.4.Graph II: Focus Areas of Employee Volunteering Programmes
43%
57%
38%
19%14%
24%
10%
19%
0%
10%
20%
30%
40%
50%
60%
Hea
lthc
are
Edu
cati
on
En
viro
nm
en
t
Emp
ow
erm
ent
Wat
er
Pay
roll
Giv
ing
Blo
od
Do
nat
ion
Cam
ps
Sup
po
rt a
ctiv
itie
s o
f Tr
ust
s an
d
Fou
nd
atio
ns
Focus Areas of Employee Volunteering Programmes
Some examples of focused Impact are:
Volunteers are making an impact in the area of philanthropy by donating toys, notebooks,
school kits, blood donations, clothes etc. At Axis Bank, ―Axis Cares‖, the payroll giving
program has a donor base of more than 7,500 employees with a monthly collection of Rs.
14.63 Lacs.
Embedding CSR in Business in the Indian Context 50 Purnima Bhatnagar
Infosys employees are involved in a wide variety of activities, ―including the Akshaya Patra
Foundation‘s mid-day meal program, serving 1 million+ rural children in seven states.
1,49,993 employees are at the heart of the programme. Infosys advocates individual social
responsibility. People contribute individual time.‖
At Infosys, 2000 volunteers belonging to the Eco Group have a mandate to engage, enable
and embed a culture of environmental protection. They collaborate with United Nations
Climate Change Conference (COPI5), World Wide Fund for Nature, 350.org, Green Peace,
British Council, Rotary International and other organizations.
PNB employees organized a mini marathon along with local authorities in Lucknow to
create awareness about voting rights.
Talking Book Library Initiative: ABF volunteers record educational material (ICSE
syllabus) for visually challenged students.
TCS Volunteers clocked more than 90,828 hours globally in community service.
The list is endless and it is not possible to list all areas of involvement in this dissertation.
Embedding CSR in Business in the Indian Context 51 Purnima Bhatnagar
4.5 SECTION 4: NATIONAL VOLUNTARY GUIDELINES - INTEGRATION WITH
BUSINESS
4.5.1 Principle 1: Businesses should conduct and govern themselves with Ethics,
Transparency and Accountability
The aim of good corporate governance is to ensure commitment of the Board in managing the
company in a transparent manner for maximizing long term value of the company for its
shareholders and all other partners (OIL India Annual Report, 2011). Corporate governance is
about commitment to values, ethical business conduct and distinction between personal and
corporate funds. Decisions in the organization need to be based on a set of principles
influenced by values, context and organization culture. Transparency in decisions is a must.
In this context, the dissertation aims to understand practices related to ethics, transparent
functioning, deployment of rules like codes of conduct, and what aspects are covered, as well
as how decisions are made. It is further envisaged in the context of CSR and Sustainability
specifically, who is the governing authority. The BR, Annual and Sustainability reports have
been taken as the frame of reference.
1. Number of Firms submitting BR Reports
Out of 21 organizations for whom data has been collected, 71% (15 firms) have published a
Business Responsibility Report in the public domain (individually or as part of the Annual
Report), whereas 24% (5) have not published a BR report. No individual BR report has been
published by 1 organization in the automotive sector.
Within Sectors, Banking has accomplished 100% disclosure, whereas, Oil, Gas and Energy
transmission (4 firms) has the largest number of entities who did not publish a BR report.
4.5 Graph 1: Sectoral Breakdown (%) Published BR Report
80
100
80
20
0 50 100 150
Automotive
Banking
Computer Software
Oil, Gas and Power Transmission
Sectoral Breakdown (%) Published BR report
Sectoral Breakdown (%) Published BR report
2. Is the office of Chairman separate from that of MD and CEO?
In 61% of the firms for whom data has been collected, the Office of the Chairman is
separate from that of the Managing Director and/or Chief Executive Officer.
Embedding CSR in Business in the Indian Context 52 Purnima Bhatnagar
4.5 Graph I1: Sectoral Breakdown (%) Firms Exhibiting Separation of Chairman
from MD/CEO
100%
67%
80%
0%
0% 20% 40% 60% 80% 100% 120%
Automotive
Banking
Computer Software
Oil, Gas and Power Transmission
Sectoral Breakdown (%): Firms exhibiting separation of office of Chairman from
MD/CEO
3. Is the Chairman of the Board a Non Executive role?
Out of 18 firms for whom data was available, 9 firms have a Non – Executive Chairman.
In the Oil, Gas and Power Transmission sector, it is found that all five firms have an
Executive Chairman. All organizations, being Government companies, come under the
administrative control of the Ministry of Petroleum & Natural Gas (MoP&NG), and the
Directors are nominated by the Government of India, and need to induct the requisite number
of Independent Directors, as required under clause 49 of the Listing agreement as well as
Department of Public Enterprise guidelines on Corporate Governance. An exception to this
rule was disclosed by Indian Oil, (for the period since Jan 24th
, 2013) in its Business
Responsibility Report.
4. Prevalence of code of conduct?
All 21 firms have a code of conduct for Directors and Senior Management. Additionally,
some firms are playing a more responsible role by making the code applicable to all
employees, suppliers, business partners and subsidiaries.
i. 42% firms have made the code of conduct applicable to all employees.
ii. 29% firms have made the code applicable to their subsidiaries (Tata Motors,
Mahindra and Mahindra, TCS, Oracle, KPIT Cummins and Indian Oil)
iii. 19% have made their codes of conduct applicable to Business partners
iv. 14% firms have extended them to dealings with customers.
A good practice has been witnessed in the report by Indian Oil Corporation Ltd., whereby it
has been disclosed that the only exception to affirmation of the Code of conduct, has been
Shri Sudhir Bhalla, Director (HR), who is in serious medical condition since February 2012.
(Report on Corporate Governance)
5. Is there an Ethics code of conduct and specific committee overseeing Ethics in the
firms?
Whilst 38%, (8 firms) have an ethics code of conduct, 29% (6 firms) have additionally
constituted an Ethics Committee to oversee aspects related to ethics, bribery, corruption,
insider trading, principles related to execution of operation and procedures dealing with
conflict of interest.
Embedding CSR in Business in the Indian Context 53 Purnima Bhatnagar
6. Have there been charges of corruption filed against any firm since 2010?
i. ONGC is the only firm which has disclosed 5 charges of corruption being levied
against the firm.
ii. 3 firms have reported No cases of corruption being charged against them (Maruti,
Tata Motors and Bajaj Auto), whilst there is no information available for other
firms.
7. Have there been charges of anti – competitive behavior against any firm since 2011?
5 firms have reported that there have been no charges of anti – competitive behavior levied
against them in the most recent years. These are Maruti, Tata Motors, Mahindra and
Mahindra, Hero Motocorp and Bharat Petroleum Corporation of India Ltd.
Embedding CSR in Business in the Indian Context 54 Purnima Bhatnagar
4.5.2 Principle 2: Businesses should provide goods and services that are safe and
contribute to sustainability throughout their life cycle.
1. Material issues
Issues which are of importance to the stakeholders and to the firm which are of high
relevance to both are stated below:
It may be noted that this data was available for only 9 firms. The table below highlights that
Community stewardship and Environmental sustainability are the most important material
issues for this set of organizations.
Table 4.5.1 Snapshot – Materiality issues disclosed by firms in Automotive, Computer
Software, Oil, Gas and Energy Transmission sectors.
(No Disclosure in Banking Sector)
S N
o.
Issu
e
Ma
ruti
Su
zuk
i
Ta
ta M
oto
rs
Ma
hin
dra
&
Ma
hin
dra
Info
sys
TC
S
ON
GC
Ind
ian
Oil
Bh
ara
t
Pet
role
um
Po
wer
G
rid
Co
rpo
rati
on
of
Ind
ia
1 Scope 3 Emissions
2 Road Safety 3 Skill development 4 Customer Satisfaction
5 Product Safety 6 Grievance Redressal and IR
7 Employee wages and benefits 8 Development and Training
9 Corporate Governance 10 Compliance
11 Business growth and profitability 12 Local supplier development 13 Climate Change 14 Supply chain management and 15 Material Management
16 Occupational Health and Safety
17 Community Stewardship
18 Environment sustainability
19 Shareholder return 20 Employee satisfaction 21 Research and Development 22 Fair Business practices
23 Ethical behaviour 24 Bio - Diversity
25 Resource efficiency 26 Water
27 Effluents
28 Energy
29 Transparency
Embedding CSR in Business in the Indian Context 55 Purnima Bhatnagar
S N
o.
Issu
e
Ma
ruti
Su
zuk
i
Ta
ta M
oto
rs
Ma
hin
dra
&
Ma
hin
dra
Info
sys
TC
S
ON
GC
Ind
ian
Oil
Bh
ara
t
Pet
role
um
Po
wer
G
rid
Co
rpo
rati
on
of
Ind
ia
30 Hiring and retaining workforce
31 Unconventional hydro carbon
32 Magnetizing difficult and isolated
hydro carbon pools
35 Asset Security
36 Product pricing 37 Supply shocks - Raw material
availability
38 Supply shocks in the form of
Finished product availability at
storage & retail points
39 Human Rights
2. Innovative products and services of the Firms within the industry
All five firms in the Automotive sector reported information related to innovative
products.
Table 4.5.2: Automotive Industry – Innovative Products with Environmental and social
benefits
S
No.
Sector Firm Name Innovative Products
1 Automotive Maruti Suzuki 1. Launched 5 models with i - GPI CNG engine
technology. Developed new intelligent Gas Port Injection
technology for CNG bi - fuel vehicles.
2. LPG version - Wagon R
3. Electric Eeco car and hybrid SX4 showcased
4. Environment friendly refrigerant gas R134a in
products
5. First company in India to introduce CNG option in
conventional technology 6. LPG engine technology
7. CVT - New Transmission technology which can change
for infinite number of gear ratios
8. K Series engine technology
9. Zoned catalytic converter technology - leading to
reduction in emissions
10. Rolling resistance of tyres leading to decrease in
emissions
11. Light – weighting: In Alto, reduced weight of seat by
5 Kgs
12.. End of life vehicles - all vehicles except Omni, Gypsy
and Maruti 800 are ELV compliant
2 Automotive Tata Motors 1. Hybrid electric cars
2. Hybrid Bus
3. Fuel cell bus
4. Electric car
Embedding CSR in Business in the Indian Context 56 Purnima Bhatnagar
S
No.
Sector Firm Name Innovative Products
5. Electric small commercial vehicle
6. CNG version of buses, LCVs, LPG version of passenger
cars
7. Fuel efficiency in passenger cars and CNG variants
8. Reconditioned aggregates on exchange basis reduces
vehicle downtime
9. Small commercial vehicles and pickup range
promotes entrepreneurship
3 Automotive Mahindra and
Mahindra
Passenger vehicles:
1. Fuel efficient, engine start/stop technology
2. Micro/CNG variants of some models
3. End of life models for export
LCVs:
1. Low cost, energy efficient
2. Low cost tractors - low weight for small and
marginal farmers
4 Automotive Hero
MotoCorp
1. 1980s - Pioneered fuel efficient and environment
friendly 4 stroke motorcycles
2. First company to launch fuel injection technology in
Indian motorcycles (2006) 3. Green Technology - Introduced special acrylic cathodic
electro disposition (ACED) painting process for frame
body. The result is 99% paint transfer efficiency and
minimizes effluents 4. Green roof - energy saving
5 Automotive Bajaj Auto 1. Fuel Efficiency - Discover 100 model has yielded 90.3
Kms/litre (22% improvement in last 4 years)
2. Improved engine oil in 2010 - Bajaj DTSL - 10,000
for 4 stroke vehicles resulting in halving of engine oil
consumption 3. Power to weight ratio - High strength materials and
plastics used to optimize vehicle weight and strength
4. Vehicles are complaint with BSIII norms in India.
All six firms reported information related to this section and information was collated.
Table 4.5.3: Banking Industry – Innovative Products with Environmental and social
benefits S No. Sector Firm Name Innovative Products
1 Banking SBI 1. Green Channel Counter
2. Green Remit Card
2 Banking Canara 1. Financial Inclusion
2. Green Banking
3 Banking PNB Financial products which are useful for marginalized
people are:
1. Biometric Smart Cards: Enables ―illiterate‖
people to withdraw money from their Bank accounts
2. PNB Kalyani Cards: Used by women in rural
areas for their general needs.
3. PNB Krishak Sathi: Loan scheme to avoid
indebtedness
4. Internet banking: Paperless
The Bank does not deal with hazardous products
4 Banking HDFC 1. Project Appraisals: For projects above Rs. 10
crores for a period over 5 years, the ―Corporate
Credit Risk Policy details a Social and
Environmental Risk Management System
Embedding CSR in Business in the Indian Context 57 Purnima Bhatnagar
S No. Sector Firm Name Innovative Products
(SEMS) which assesses the social and
environmental risks and impacts of the projects, in
addition to their financial viability."
2. Retail side:
i. More Products are made available through
direct channels - ATMs
ii. Internet Banking and phone banking
iii. Campaigns to encourage customers to use
direct channels
3. Farmers: Encouraged to take up organic farming,
or take up more environment friendly practices.
4. Products which yield social Benefits:
i. Basic Savings Bank Deposit Account
(BSBDA) for rural areas
ii. Kisan Gold Card
iii. Grameen Loans
5 Banking ICICI 1. The Rural & Inclusive Banking Group focuses
on rural and below poverty line customers
2. The Technology Finance Group supports
research & development and sanctions assistance
to projects in the clean energy and renewable
energy sectors.
3. The ICICI Foundation for Inclusive Growth
focuses on the areas of elementary education,
sustainable livelihoods, primary healthcare and
financial inclusion.
6 Banking AXIS 1. Adopted an ―Environment & Social Safeguard
Policy” (ESSP), for carrying out environmental
and social due diligence, formulated in
compliance with the International Finance
Corporation (IFC) Performance Standards.
2. Social Commitments:
i. Electronic Benefit Transfer (EBT)
ii. Remittances
iii. Micro Loans and Insurance
3. Environment commitments:
i. Guardrails of social and Environmental
considerations for project appraisal and
finance. Disbursement to a project is
made only after ensuring it has MoEF
(Ministry of Environment and Forests)
approvals for the commencement of
work.
ii. The Bank has negotiated a Line of Credit
of USD 70 million from IFC to facilitate
the funding of projects in renewable
energy, clean technology and other
energy-efficiency projects.
The data on innovative products with social and environmental benefits is available for two
firms.
Table 4.5.4: Computer Software – Innovative Products with Environmental and social
benefits
S No. Sector Firm Name Innovative Products
1 Computer
Software
Infosys 1. Sustainability Business Solutions – separate BU
2. Sensor driven monitoring UPS batteries
Embedding CSR in Business in the Indian Context 58 Purnima Bhatnagar
S No. Sector Firm Name Innovative Products
2 Computer
Software TCS 1. ‗Global Network Delivery Model’ (GNDM™).
2. TCS is the first organization in the world to have
received the highest level 5 enterprise wide
‗Capability Maturity Model Integrated’
(CMMI) certification.
3. TCS has evolved an ‗Integrated Quality
Management System‘ (iQMS), which addresses
―quality assurance practices for all types of
projects. iQMS is an integrated approach for
implementing quality practices of world-class
quality models like ISO 9000, ISO20000, CMMI,
PCMM, Six Sigma, ISO 27001 and ISO 14001
aligned with the strategic objectives of the
Company.‖
4. Products:
i. APOnline, MP Online & MahaOnline,
ii. National Rural Employment Guarantee Act
(NREGA) Framework
iii. Power InSight
3 Computer
Software Tech
Mahindra
No Information
4 Computer
Software Oracle
Financial
Services
Software Ltd.
No Information
5 Computer
Software KPIT
Cummins
Infosystems
Ltd.
No Information
Only two firms have disclosed the innovative products and services with environmental
and social benefits for the next sector.
Table 4.5.5 Oil Gas and Energy Transmission Sectors – Innovative Products with
Environmental and social benefits
S No. Sector Firm Name Innovative Products
1 Oil, Gas,
Energy
Transmission
ONGC No Information 2 OIL India No Information 3 Indian Oil
Corporation
1. Technologies developed in-house include
INDMAX technology (for maximizing LPG
yield), Oilivorous –S bio-remediation technology
(extended to marine applications), Diesel Hydro
De-Sulphurisation (DHDS) catalyst, a special
catalyst for Bharat Stage-IV compliant Diesel,
IndVi catalyst for improved distillate yield and
FCC throughput, and adsorbent based deep de-
sulphurisation process for gasoline and diesel
streams.
2. Creating solar lanterns
3. First wind power unit (21 MW) is operating in
Kutch, Gujarat and since its commissioning in Jan
2009, it has generated Rs. 8.5 crore units equivalent
to a revenue of `Rs. 39.5 crore till 31.03.2011.
4. To straddle the complete bio-fuel value chain,
Indian Oil has formed a joint venture with the
Chhattisgarh Renewable Development Authority.
Embedding CSR in Business in the Indian Context 59 Purnima Bhatnagar
S No. Sector Firm Name Innovative Products
Indian Oil CREDA Biofuels Ltd. to carry out
farming, cultivating, manufacturing, production
and sale of biomass, bio-fuels and allied products
and services in Chhattisgarh.
4 Bharat
Petroleum
No Information
5 Power Grid
Corporation of
India Ltd.
1. The 1200kV UHVAC technology, the highest
voltage level in the world, is being developed by
Power Grid Corporation in collaboration with 35
Indian manufacturers. This is one of the unique
R&D projects in public-private partnership model.
2. Smart grid technology
3. One of the implementing agencies for the
prestigious National Knowledge Network (NKN)
project through which Government plans to
connect all knowledge centres across the Country
such as IITs, IISc, etc. on high speed connectivity.
3. Efforts of Industry to encourage sustainable sourcing and procurement
The following activities are undertaken to facilitate sustainable sourcing and procurement in
the industries:
Table 4.5.6: Sustainable Sourcing and Procurement practices – Sectoral View
S No. Practices
Au
tom
oti
ve
Oil
, G
as,
En
ergy
Tra
nsm
issi
on
Ban
kin
g
Com
pu
ter
Soft
ware
1 Policy to set up Environment Management system
at Supplier‘s end and Energy audits
2 Reduction of packaging material for component
supplies, Use of returnable and recyclable
packaging solutions
3 Localising vendors 4 Green purchase policy - Sustainability parameters in
vendor rating e.g. ISO 14001 compliance and
occupational safety, E Procurement
5 ISO/OHSAS certification 6 Dedicated suppliers park 7 Supply water and electricity from natural gas based
power plants to suppliers park
8 Waste elimination 9 Energy conservation 10 Pika - Pika (Fool proof ops) 11 EHS initiatives at Suppliers‘
12 Deliver material during night shift reducing traffic
congestion
13 Milk run system for 30 suppliers in Faridabad -
reduced Number of trips to Maruti by 30% and
improved Truck fill rate by 25%
Embedding CSR in Business in the Indian Context 60 Purnima Bhatnagar
S No. Practices
Au
tom
oti
ve
Oil
, G
as,
En
erg
y
Tra
nsm
issi
on
Ba
nk
ing
Co
mp
ute
r
So
ftw
are
14 Trucks with PUC certificates only are allowed
inside premises
15 HR and Quality systems - sourcing locally and
developing staff
It is found that Sustainable procurement and sourcing is most relevant for the Automotive
sector than others. A list of 15 best practices has been developed by analyzing the practices
prevalent in the four sectors.
4. Efforts of the Industry to encourage sustainable consumption
A review of the sectors highlights the following practices prevalent for sustainable
consumption in the sectors under study.
Table 4.5.7: Sustainable Consumption Practices – Sectoral View
S No. Practices
Au
tom
oti
ve
Oil
, G
as,
En
ergy
Tra
nsm
issi
on
Ban
kin
g
Com
pu
ter
Soft
ware
1 Monitoring emission and resource consumption e.g.
electricity and water
2 Captive power plant to generate clean energy with
natural gas and clean fuel
3 Virtual testing of products 4 Compliance with Guidelines. E.g. EU directive
2000/53/EC on End of Life Vehicles - this bans the
use of hazardous heavy metals like Lead, mercury,
Cadmium, Hexavalent chromium.
5 Aim to attain REACH (Registration Evaluation,
Authorization and Restriction of Chemicals)
6 Aims to provide lowest cost of ownership 7 Recon business - Eliminates use of fresh resources 8 Product Labeling
The research shows that except the Automotive sector, the firms in other areas have not
disclosed practices related to sustainable consumption of resources.
5. Efforts of the industry to encourage sustainable disposal of products and waste
This is a key area for industries worldwide, given that most industries focus on
production aspects, and very few procure end of life products back for recycling, reuse,
etc or safe disposal. The disclosed practices in this regards are presented below.
Embedding CSR in Business in the Indian Context 61 Purnima Bhatnagar
Table 4.5.8 Practices for Sustainable Disposal – Sectoral View
S No. Practices
Au
tom
oti
ve
Oil
, G
as,
En
erg
y
Tra
nsm
issi
on
Ba
nk
ing
Co
mp
ute
r
So
ftw
are
1 Wastes are categorized as Hazardous, Non
Hazardous and Wet/ Dry
2 E - Waste management, maintenance and disposal -
through authorized dealers
3 Hazardous waste is sold to authorized dealers (Paint
sludge, phosphate sludge, ETP sludge)
4 Glass waste and metal scrap is sold to recyclers and
reusers
5 Waste that cannot be reused/recycled is disposed
through vendors approved by Pollution Control
Board.
6 Restrict waste generation
7 Support SIAM for Product recycling in India
8 Portion of canteen waste is used in bio-gas. 9 Waste segregation at source
10 Waste water treatment at mobile Effluent Treatment
Plants, as well as reuse
11 Managing produced water by recycling - either
through treatment at ETPs, or used for water
injection into the reservoir for pressure
maintenance, or re-injected into sub surface water
wells
12 Production waste e.g. Drilling mud, and hazardous
waste - tank bottom and oily sludge. Bio -
remediation method is used for oil sludge
13 Spent catalysts generated at
refineries may be either recycled by the suppliers
themselves or disposed off to secured landfill sites
in accordance with the central and state regulations.
14 BPCL has also partnered with other oil and gas
majors in India and port authorities to setup a Tier I
Oil Spill Response facility at Mumbai harbor, since
18th February 2011, with the objective of
minimizing both ecological and economic damage.
Fourteen practices prevalent for disposal of wastes in industry have been documented. The
majority of these practices are relevant in the manufacturing scenario in the Automotive and
Oil and Gas sectors.
For the purpose of highlighting industry trends, the data for the above three parameters –
procurement, consumption and disposal have been studied at an industry level.
6. Certifications leveraged in Industry
This section helps identify practices related to certifications being sought by the
organizations under study.
Embedding CSR in Business in the Indian Context 62 Purnima Bhatnagar
Table 4.5.9 Footprint of Industry Certifications
S No. Sector Firm
Name
ISO
9001
ISO
14001
OHSAS
18001
SA
800
0
Others
1 Automotive Maruti
Suzuki ISO/IEC 27001; SX4 -
OBD II
2 Automotive TATA
Motors ISO 50001: 2011 (Sanand
Plant) - EMS
3 Automotive Mahindra
&
Mahindra
Reva - IGBC Ratings
(Platinum)
4 Automotive Hero
Motocorp
5 Automotive Bajaj Auto
6 Banking SBI
7 Banking Canara
8 Banking PNB ISO 27001
9 Banking HDFC
10 Banking ICICI
11 Banking AXIS ISO 27001
12 Computer
Software
Infosys ISO 27001
13 Computer
Software TCS ISO 9000, ISO20000, ,
ISO 27001
14 Computer
Software Tech
Mahindra ISO/IEC 20000-1:2005,
ISO/IEC27001:2005,
BS25999:2008.
15 Computer
Software Oracle ISO 27001
16 Computer
Software KPIT
Cummins
Infosystem
s
17 Oil, Gas, Energy ONGC
18 Oil, Gas, Energy OIL India
19 Oil, Gas, Energy IOCL
20 Oil, Gas, Energy BPCL
21 Oil, Gas, Energy Power Grid
The certifications stand for:
ISO 9001:2008 - Sets out the requirements of a quality management system
ISO 9000:2005 - Covers the basic concepts and language
ISO 14001: Sets the criteria for Environmental Management system
OHSAS 18001: International occupational health and safety management system
specification.
SA 8000: It is one of the world‘s first auditable social certification standards for decent
workplaces, across all industrial sectors. It is based on conventions of the ILO, UN
and national law, and spans industry and corporate codes to create a common
language to measure social compliance.
Embedding CSR in Business in the Indian Context 63 Purnima Bhatnagar
ISO 27001: International Standard for Information Security Management system.
ISO 20000: First International Standard for IT Systems management
BS25999: British Standard for Business Continuity Standards
Embedding CSR in Business in the Indian Context 64 Purnima Bhatnagar
4.5.3 Principle 3: Businesses should promote the well - being of all employees.
1. Status of Employee benefits prevalent in sectors under study
Apart from the Defined contribution schemes like Provident Fund and Superannuation benefits, as
well as Defined benefit schemes like Gratuity and Pension, and long term benefits like privilege
leave, there are other benefits which Indian Industry provides to employees. Whist the graph below
provides a visual snapshot of how many organizations have declared in their reports the benefits,
they provide to employees, the span of initiatives – both mandatory and voluntary is quite wide,
running into 33 variables. It is also witnessed, that none of the firms have reported disabled friendly
facilities as one of the benefits.
4.5 Graph II1: Reported Benefits for Permanent Employees
0% 10% 20% 30% 40% 50% 60% 70% 80%
GratuityMedical
Provident fundPension
Compensated absencesSuperannuation
Post retirement medical schemeMaternal Leave
ESOPsVariable incentives
Scholarships for childrenCanteen facilities
Paternal LeaveAccess to holiday homes
Retirement AllowanceCreche
Reduced InjuriesLeave Encashment
TransportationRecreation & Sports Facilities
Reduced ROI on advancesHigher interest on deposits
Work life balanceLeave fare concession
Maternity Leave for AdoptionPost Retirement Housing allowance
Part time and flexible timingSabbatical for Volunteer work
Sabbatical for higher educationGymnasium with Instructor
Assistance - Residence (House deposit, Finding)Disabled friendly facility
Employee Benefits Declared by Firms in Study (%)
Benefits for Women Employees:
Of special mention are specific benefits targeting women employees.
i. Policy against sexual harassment at work
ii. E- magazine for women employees
iii. Extended maternity leave
Embedding CSR in Business in the Indian Context 65 Purnima Bhatnagar
iv. Internal e-portal for women
v. Special workshops
vi. Awards to recognize achievements of women employees
vii. 24 hour helpline for employees in distress
viii. Diversity - Women's Inclusivity Programme.
Benefits for Contract workers:
Apart from these, for contract workers in Automotive and Oil sector, the firms have disclosed
benefits underlined below:
i. Safety equipment
ii. Health checks
iii. Free food in canteens
iv. Infosys has a ―bi - monthly process of governance and checks for labour laws like
Minimum wages Act, etc and grievance redressal through appropriate channels, and
medical and insurance policies for them.‖
v. ONGC provides medical coverage and educational assistance through the ONGC
Sahyog Trust; Group Insurance scheme; assistance for marriage of girl child, and
livelihood assistance.
2. Equality of Opportunity is assured by meritocratic systems for recruitment, placement,
promotion, transfer, compensation and training as well as involvement in communities and
governing bodies.
3. Only two organizations have mentioned that timely wages are paid to employees (TATA
Motors and Infosys)
4. Attrition rates disclosed by the organizations vary across sectors:
Automotive: Maruti: 6.1%; Mahindra and Mahindra: Farm Division (Males – 6%,
Females – 9%), Auto Division (Males – 4%, Females – 6%), Reva (Males – 15%,
Females – 3%); Hero MotoCorp: 5.1%
Computer Software: Tech Mahindra: 19%, KPIT Cummins: 18.6%
Oil, Gas and Energy Transmission: Bharat Petroleum – 1.22%
Information was not available for the other organizations.
5. Training and Development – Employee Learning and Development
Training Infrastructure: 76% of the firms disclosed presence of internal training function,
and 52% disclosed using external training facilities e.g. leveraging industry experts and
Academic Institutions for leadership trainings.
Embedding CSR in Business in the Indian Context 66 Purnima Bhatnagar
Practices: The following table highlights focus areas for trainings – both internal and
external
Table 4.5.10: Training Practices: Internal and External to the Organization
S No. Opportunities for Internal
Training and Development
Function
Opportunities for Training and
Development through organizations
external to the firm
Online resources
1 Employee Induction and Orientation Overseas technical scholarships Infosys: Harvard
Mentor Manager
2 Mentoring of new employees Overseas vocational training
association
Project Management
3 Buddy System Live projects at parent organization,
Japan
4 Behavioural, Functional and Safety
training
Higher education scheme
5 Leadership training initiatives Harvard Advanced Management
Program
6 Global Program for Management
Development,
Development Centres
7 Development Centres Capstone Business Simulation
8 360 Degree Transcendental Meditation
9 Emerging leaders program Leadership interactions: Leaders from
various domains like management,
academics, sports, aeronautics &
space and cinematography speak with
employees so as to receive insights
into their leadership perspective
10 Fireside Chats ICICI Bank Sales Academy in
partnership with the Institute of
Technology Management (ITM),
Raipur and Institute of Finance,
Banking and Insurance (IFBI).
11 Shadow Boards Infosys offers a Masters degree with
Coventry University, UK.
12 Early Leaders Program Infosys: Four Disciplines from
Franklin Covey Institute
13 Creating and increasing
effectiveness of the value chain
Tech Mahindra: Executive Post
Graduate Diploma in Telecom
Management in collaboration with
Symbiosis Institute of Telecom
Management (SITM).
14 Quality
15 Benchmarking
16 Process Training
17 Best practice sharing
18 Peer to peer learning
Organizations with In – House Training Institutes:
It has been found that the Oil, Gas and Energy transmission sectors have established their
own training institutes to provide training and development to their employees.
Embedding CSR in Business in the Indian Context 67 Purnima Bhatnagar
Table 4.5.11: Training Institutes set up by Firms in Oil, Gas and Energy Transmission
Sector
S No Firm Name Institute and Purpose
1. Oil India The Management Training and Development Centre and the Oil
Training Institute – Operational Requirements.
Advanced functional courses in Upstream Exploration and
Production technologies and practices, Computer science,
Basic/advanced management courses in General Management,
Finance, Materials Management, Industrial Relations, and
General Administration.
Statutory training on Mines Regulation, Safety, First-Aid,
Explosive Handling courses and Fire-fighting courses.
2 Indian Oil Indian Oil Institute of Petroleum Management (IIPM), IndianOil
Management Centre for Learning, Mumbai, Indian Oil
Management Academy, Haldia - World Class Training Institutes.
Exposure on work culture, organizational structure, corporate
vision and ethics.
3 Bharat Petroleum
Corporation of India Ltd. Bharat Petroleum Learning Centre (BPLC)
Training & Development
―Business Incubator to the organization‖
4 PowerGrid Corporation of
India Ltd.
POWERGRID Academy of Leadership (PAL) - Being set up.
MoUs have been signed with Foundation of Innovation and
Technology Transfer of IIT, Delhi (FITT, IIT Delhi) for
conducting certification programmes for operation &
maintenance of transmission system and telecom.
6. Status of employee grievance redressal mechanisms as a social responsibility.
61.9% of the firms have reported the presence of a grievance mechanism for employees,
while the remaining firms have not provided any information about the presence or lack of it.
E.g. Power Grid Corporation of India – Grievance redressal policy disclosed in the
Sustainability Report.
7. Status of right to freedom of association in the sectors under study.
There are 18 firms which have disclosed information regarding collective bargaining and
employee associations in various reports. No information was found for four firms out of 21
under study.
Table 4.5.12: Practices related to Collective Bargaining and Freedom of Association and
Percent of workmen covered – Organization level analysis.
S No. Sector Firm
Name
Practice – Collective
bargaining/Freedom of Association
Percent Workmen
covered
1 Automotive Maruti
Suzuki
Major policy changes are discussed
with Union reps and opinions
incorporated after examining
feasibility.
Minimum notice period is followed.
NA
2 Automotive TATA
Motors
Employee associations are
recognized by the Management at
90% of
operative cadre.
Embedding CSR in Business in the Indian Context 68 Purnima Bhatnagar
S No. Sector Firm
Name
Practice – Collective
bargaining/Freedom of Association
Percent Workmen
covered
Jamshedpur, Pune, Lucknow, and
Pantnagar.
Mngt conducts long term wage
settlement with Unions.
46% of
Permanent
employees
3 Automotive Mahindra
&
Mahindra
Employees can choose Unions of
choice under IDA 1947
3 weeks notice is required for
operational changes.
Kandilvi Plant: 1 Union under 1
affiliation.
Over all M&M Group has recognized
12 Unions for collective bargaining.
56% of total
unionized
permanent
workforce
/Total
permanent
employees.
5 Automotive Bajaj Auto Information is not available on the
number of Unions available.
63.8% of
employees are
unionised.
Automotive Hero
MotoCorp
2 Unions recognized.
1. Hero MotoCorp Workers Union,
Gurgaon
2. Hero MotoCorp Workers Union,
Dharuhera
18.4%
31.3%
6 Banking SBI Two recognized employee associations –
1. All India State Bank of India Officer's
Federation,
2. State Bank of India Staff Federation.
Most staff and
officers are
members of
Federations
7 Banking Canara Two employee associations -
1. Officer Employees
2. Workmen Employees.
78.85% of
permanent
employees are
members of
Officer's
Association.
73.89% are
members of
Workmen
Union.
8 Banking PNB PNB has not recognized the following
two Unions
All India PNB Employee Federation.
All India PNB Officers Association
76% of PNB
employees
9 Banking HDFC One recognized - part of the erstwhile
Lord Krishna Bank Trust
0.73% of
employees
10 Banking ICICI Zero associations recognized, and
percent employees members of
associations is not tracked
11 Banking AXIS There are no employee unions
12 Computer
Software
Infosys ―De-minimus number of employees is
covered under collective bargaining.‖
Internationally - 7 countries where
employees are covered under
collective bargaining agreements.
13 Computer
Software TCS 0.06% of
employees
15 Computer
Software Oracle Not applicable
19 Oil, Gas,
Energy
IOCL There are 23 recognized unions in the
Corporation representing workmen.
Indian Oil Officers‘ Association
Embedding CSR in Business in the Indian Context 69 Purnima Bhatnagar
S No. Sector Firm
Name
Practice – Collective
bargaining/Freedom of Association
Percent Workmen
covered
(IOOA) represents the executives.
20 Oil, Gas,
Energy
BPCL Most of non-
management
employees
8. Status of disclosure on prohibition of child labour, forced and involuntary labour.
Table 4.5.13: Disclosure on prohibition of child labour, forced and involuntary labour
S No. Parameter % Firms Disclosing Parameter
Prohibited
1 Child Labour 52% (11)
2 Forced Labour 43% (9)
3 Involuntary Labour 38% (8)
Embedding CSR in Business in the Indian Context 70 Purnima Bhatnagar
4.5.4 Principle 4: Businesses should respect the interests of, and be responsive towards
all stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
The study has highlighted which stakeholders are relevant each Sector and the modes of
engagement by the firms with the stakeholders.
Table 4.5.14 Stakeholder Relevance and Engagement Matrix S No. Stakeholder Industry for which
relevant
Engagement Mode
1 Shareholders and
Investors
All Press Release, E Mail advisories
Investor Conferences
Meeting and conference calls
Annual General Meeting
Analyst and Investor calls
Investor relations cell
Investor Grievance mechanism
Reports – Quarterly, Annual, Sustainability
2 Customers All Relationship meetings and visits, Focus Group
discussions, Seminars and Workshops
Sponsored events
Surveys
Newsletters
Brochures
Gauge customer perception of brand
Complaints redressal forum
Collection of specific product feedback before launch
Sports events, e.g. Rallies
Inquiry center
Social media
Co - Creation - engagement platform to facilitate co-
creation of insights, solutions and ideas
Observation of Customer Days
3 Employees All Townhalls, Project and Operation reviews, Strategy
Forums
Associations and Forums
Focus Group discussions, One on one discussions,
Skip level meetings, Stay Interviews
Employee Satisfaction surveys, Inclusivity surveys
Q12 tool
Horizontal communication
Improvement Displays, Quality Circles
HR Policies, Interaction and Forums
Intranet, Newsletters, TV Channels
Assessment Centers, Digitized career hubs enabling
recording of aspirations
Training Programs
Employee recognition programs
Grievance mechanism
Sports and other tournaments, Family Meets
4 Community All Field Visits and Meetings
Need Assessment
Involvement in project planning
Seminars
Social Media
Community Portals
Business Correspondence model in Banking to reach
Embedding CSR in Business in the Indian Context 71 Purnima Bhatnagar
S No. Stakeholder Industry for which
relevant
Engagement Mode
out to the community
Grievance handling mechanism
Skills training
Factory Visits (Automotive)
Road Safety training (Automotive)
5 Associations Banking, Computer
Software
Membership in global associations
Lobbying
Conferences and working groups
Meetings
6 Government All RFI/RFP
Consultative sessions
MOU
Partner with Government on CSR projects to improve
livelihood
Advocacy of future regulations
Directors and Senior Management participate in
various committees
Membership in global associations
Release of Reports
7 Suppliers All Annual Supplier meet
Supplier's club to discuss critical issues with top
management
Quality Month
Value Analysis and Value engineering month
Review action in HR/IR issues
Green Procurement roadmaps
Supplier Clusters
Satisfaction surveys
Safety workshops
Key partner meets
8 Dealers Automotive, Oil Dealer meets
Dealer management systems
Dealer scorecards
Guidance on business and financial matters
Developing systems to help dealers continuously
enhance capabilities and train employees
Roadshows and Presentations
9 Media Computer Software,
OIL
Press Conferences
Release of Reports
10 Small and
Marginal Farmers,
Artisans, Tiny
Sector, Micro –
units, Under –
privileged,
Unbanked
Banking Agricultural Lectures
Literacy and health camps
Skills development
Embedding CSR in Business in the Indian Context 72 Purnima Bhatnagar
4.5.5 Principle 5: Businesses should respect and promote human rights.
Human rights have an important bearing on corporate social responsibility.
Out of 21 firms, the two firms, TATA Motors, and Infosys have demonstrated a strong
record on Human Rights through a distinct policy. Infosys is a signatory to the UN Global
Compact
Two other firms in the Oil and Gas sector, ONGC and Indian Oil Corporation of India
Ltd. have close linkages in being Founder Member of United Nations Global Compact in
India, and Global Compact Society (India), respectively.
SBI has announced a zero tolerance for human rights violations.
Table 4.5.15 Human Rights Initiatives of Firms under study
S No. Sector Firm
Name
Practice – Human Rights
1 Automotive Maruti
Suzuki
Employee training
Non discrimination
Freedom of association and collective bargaining
Prohibition of Child labour
Indigenous rights
2 Automotive TATA
Motors
Policy on Human Rights
TCOC - Principle of Human Rights is applicable to
suppliers, vendors, contractors and other business partners.
3 Automotive Mahindra
&
Mahindra
Business Responsibility policy covers Human Rights
5 Automotive Bajaj Auto Compliance with laws of land
Legal compliance report placed before board – quarterly
BAL pledged to fight HIV discrimination and stigma of
global business coalition on HIV and AIDS, Tuberculosis
and Malaria
6 Automotive Hero
MotoCorp
Code of Conduct which details relevant principles
concerning human rights
In the process of incorporating human rights issues within
the supply chain.
7 Banking SBI Zero tolerance for Human Rights violations
Prohibits Child, forced and involuntary labour
Independent complaint committees at local, regional and
corporate offices
Does not discriminate on basis of caste, creed, gender, or
religion
Healthy work - life balance for employees
Guidelines - Harassment of women employees
Transparency in complaints - Website
8 Banking Canara ―The Bank is aware of the human rights content of
the Constitution of India and respects the freedom of
associations and the right to collective bargaining‖.
No discrimination is made amongst employees basis
nationality, religion, gender, age, disabilities, social
and economic status
Prevention of Sexual harassment at workplace
Employee Grievance Policy
Right to Information Act
Engaging Contractors for various works.
9 Banking PNB Whilst there is no specific Human Rights policy, aspects
are covered under Human Resources
Embedding CSR in Business in the Indian Context 73 Purnima Bhatnagar
S No. Sector Firm
Name
Practice – Human Rights
10 Banking HDFC Code of conduct has a Policy on Human Rights which
conforms to the United Nations Universal Declaration of
Human Rights
HDFC Bank follows a non-discrimination policy with
regards to employment and has employees with varied
degrees of disabilities in certain functions of the bank.
11 Banking ICICI Incorporated in Code of Business Conduct and Ethics
The Code also emphasizes on prohibition of harassment and
intimidation and safety at the workplace.
12 Banking AXIS The Bank and its subsidiaries are expected to manage their
businesses with high ethical standards and respect for
human rights.
12 Computer
Software
Infosys Signatory to UN Global Compact and hence support the
Universal Declaration of Human Rights
Active member of India CEO Forum on Business and
Human Rights
Participated in 2 day workshop of UNHRC and UNGC on
implementing Human Rights framework at the workplace.
Human Rights declaration - a broad framework for treating
employees fairly.
MSA with all vendors requires them to follow Labour and
Human Rights laws of the countries in which they operate.
Anti - Sexual Harassment Initiative (ASHI)
PACT - Process Awareness for Contract workers to
sensitize them on internal processes for upholding Human
Rights, covering 6000 workers.
Infosys Gays, Lesbians and You (IGLU) set up in 2012.
13 Computer
Software TCS Embedded in the Tata Code of Conduct.
Due diligence before vendor empanelment includes
screening of performance on labour laws and Human rights.
14 Computer
Software Tech
Mahindra
No information available
15 Computer
Software Oracle Expressedly prohibits employing child labour.
Equal opportunity.
Prohibits any form of harassment.
16 Computer
Software
KP IT
Cummins
No information available
17 Oil, Gas,
Energy
ONGC Founder Member of United Nations Global Compact in
India
Recognize employee rights, and provide forums, support
groups and policies to address their concerns
ONGC signs an Integrity pact with its vendors, committing
to ethical practices in their operations
Fair wage Initiative - to ensure workers engaged with
contractors get more than minimum wages, along with
compliance to social security laws
Employee training includes Human Rights
Through CSR, it supports schooling of children, and hence
prevents child labour
18 Oil, Gas,
Energy
Oil India
Limited
No Information available
19 Oil, Gas,
Energy
IOCL Indian Oil is one of the founder members of the Global
Compact Society (India).
Prohibit any distinction in the enjoyment of human rights on
grounds such as race, colour, sex, language, religion,
political or other opinion, national or social origin, property,
birth or other status.
Embedding CSR in Business in the Indian Context 74 Purnima Bhatnagar
S No. Sector Firm
Name
Practice – Human Rights
Ensure that the entire supply chain, i.e. vendors, sub-
vendors, transporters, contractors, business associates,
dealers, distributors, etc. uphold human rights and no
discriminatory practice is followed in any form.
Gender Sensitivity training.
20 Oil, Gas,
Energy
BPCL No Information available
21 Oil, Gas,
Energy
Power Grid
Corporatio
n of India
Ltd.
Training on Human Rights issues to sensitize people
towards women, the differently-abled and the socially
weaker sections of the society are imparted to employees.
No information is available regarding the following operational points:
Whether Human Rights form a part of Risk Assessment exercise undertaken by the
organization?
How is the impact of Human rights issues on Operations assessed by the firm?
How are human rights issues managed by the organization?
Except for one organization, the remaining organizations have not disclosed how
Human rights of stakeholders are identified, which authority within the firm addresses
these issues and whether there have been any charges of Human rights infringement
against the firm.
Embedding CSR in Business in the Indian Context 75 Purnima Bhatnagar
4.5.6 Principle 6: Business should respect, protect, and make efforts to restore the
environment.
1. Sector focus on Environmental Practices – Evidence from Automotive, Oil, Gas
and Energy Transmission, Banking and Computer Software Industry.
4.5 Graph IV: Broad Environmental issues of concern to the sectors
0%
50%
100%
Add
ress
ing
glob
al w
arm
ing
Bio
dive
rsit
y co
nser
vati
on
Prev
enti
on o
f Po
lluti
on
Ren
ewab
le e
nerg
y us
ed
Dec
reas
e in
gen
erat
ion
of h
azar
dous
was
te Dis
posa
l of
was
te
Perc
enta
ge
Focus Area
Environment Focus Areas - Sector View
Automotive Banking Computer Software Oil, Gas and Energy Transmission
Note: For this study, Tech Mahindra has not been considered due to lack of information. Hence the population
for Computer Software stands reduced to 4 Firms for this section only.
Findings:
Among the six broad focus areas, two – Global Warming and Pollution prevention
stand out as being of concern to all the sectors under study.
Oil, Gas and Energy Transmission Sector: Bio – diversity conservation is the most
important environmental area (80% of the Firms)
Automotive Sector: renewable energy used is the most important among these areas
(100% of the cases).
Maruti Suzuki has underlined the most important environmental concerns as:
Green manufacturing, Green service workshop, Green supply chain, Green IT,
Material use and weight reduction, Energy and waste conservation.
The ideal of Green supply chain has been echoed by other firms also.
Embedding CSR in Business in the Indian Context 76 Purnima Bhatnagar
Banking Sector: Addressing global warming is of high importance amongst all other
issues.
Computer Software Industry: Addressing global warming is of higher relative
importance than other areas.
2. Detailed areas of Environmental Initiatives –
Table 4.5.16: Top 5 Environmental Initiatives by Sector
S No. Automotive Oil, Gas and Energy
Transmission
Banking Computer Software
1 Water Management
Projects (5/5)
Production Efficiencies
(4/5)
Energy Conservation
(5/6)
Energy Conservation
(3/5
2 Tree Plantation (4/5)
Renewable Energy
(4/5)
Paper Consumption
(3/6)
Production
Efficiencies (2/5)
3 Renewable Energy (4/5)
Reduction of carbon
emissions (4/5)
Green Channel
Banking – Paperless
Banking (3/6)
Awareness on
Environment (1/5)
4 Reduction of carbon
emissions (4/5)
Energy Conservation
(3/5)
Renewable Energy
(3/6)
Water Consumption
(1/5)
5 Sustainable Supply
Chain (3/5)
Water Consumption
(3/5)
Waste Disposal (3/6) Reduction of carbon
emissions (1/5)
6 Energy Conservation
(3/5)
Renewable energy
(1/5)
Note: Figures in parentheses shows number of firms having specific initiatives in this area/Total Number of
firms for whom data is available.
3. Some of the specifics of the initiatives are as follows:
Renewable Energy
Tata Motors: CDM Project registered with UNFCCC.
2,72,112 CERs issued for 20.58 MW Wind Energy project
Hero MotoCorp: Installation of solar power plant of 100 KW; 2. Electricity
consumption
SBI: Largest deployer of Solar ATMs in the world, saving more than 2000 tonnes of
CO2 pa. Installed wind mills of 15 MW energy in 3 states in India.
Canara Bank: Solar powered bio-metric ATMs being used for rural areas.
HDFC: Pilot of 20 solar ATMs in India in progress, with a pilot completed in Bihar.
Embedding CSR in Business in the Indian Context 77 Purnima Bhatnagar
Axis Bank: Solar-based UPS for ten ATMs under its Independent ATM Deployment
(IAD) model
Oil India Ltd: Established 13.6 MW of wind power project in Rajasthan
Energy Conservation
Mahindra and Mahindra:
o Patented new forging process which uses less energy
o Green data center and Enterprise Carbon and Energy Management Services
(ECEM)
o Energy conservation audits
Hero Motocorp: Avoiding idle running - power saving circuits
Infosys:
o Smart Building Energy Management Solutions
o Green Buildings
o Retrofits
o Energy efficient IT Infrastructure
o Desktop power management
Waste Management
Maruti Suzuki: its Manesar plant has achieved zero water discharge. It has also
reduced per car water usage.
HDFC: Tied up with vendors for waste recycling and disposal of IT waste in a
controlled manner.
Oil India Ltd: Municipal solid waste disposal and treatment plant has been set up for
the town of Duliajan town
ONGC: Hazardous waste disposal
ONGC:
Hazardous
waste being
disposed off
through Bio –
remediation
process
Embedding CSR in Business in the Indian Context 78 Purnima Bhatnagar
ONGC has also adopted cutting edge technology in the form of vapour recovery units,
engine upgrades, closed loop drilling fluid systems, and recycling, reuse of treated
produced water. This is promoted by Global Methane Initiative.
Reduction of Carbon Emissions
Automotive sectors: Developing fuel efficient vehicles
Maruti Suzuki: Most of vehicle transportation is through Rail network, rather than
roadways.
State Bank of India: Incentivize customers with concessionary rates of interest for
projects reducing GHG emissions by using more efficient technology.
HDFC Bank:
o As part of the Code of Conduct and Ethics Manual, employees are encouraged
to ―prevent any wasteful use of natural resources and to be committed to
improving the environment, particularly with regard to the emission of
greenhouse gases, and to offset the effect of climate change in all spheres of
activities.‖
o HDFC Bank is one of the 16 companies in India to make it to Carbon
Disclosure Leadership Index (CDLI) in 2012 with a score of 71. It has an
estimated footprint for FY 2012-13 of 299,150 MT CO2-e according to the
Business Responsibility Report.
ONGC: The firm has registered 6 CDM (Clean Development Mechanism) projects
and is further developing 6 more projects. These opportunities have arisen because of
climate change regulations, e.g. Kyoto Protocol in Non Annex 1 Countries.
OIL: OIL is currently mapping its carbon footprint for all operational areas.
Indian Oil:
o Five Clean Development Mechanism (CDM) projects of Refinery Units have
been registered at UNFCC, with cumulative CER of 59, 964, and seven
projects under CDM have also been taken up in Refinery Units
o Three major events have been made Carbon neutral - Management Meet,
Dealer's conference and Cricket tournament;
4. Other aspects which were evaluated and do not comprise Top 5 areas are as follows:
Production of eco – friendly fuels
Converting oil fuel vehicles to LPG/CNG variants
Disaster relief
Bio – diversity management like soil testing
Extending loans at concessionary rates for projects
Clean Development mechanism project
5. None of the organizations under study for whom data was available have reported any
show cause or legal notice from the Pollution Control Board.
Embedding CSR in Business in the Indian Context 79 Purnima Bhatnagar
4.5.7 Principle 7: Businesses, when engaged in influencing public and regulatory policy,
should do so in a responsible manner.
1. In this sphere, HDFC is the only firm which has affirmed that they do not participate in any
lobbying or policy advocacy.
2. No information could be found for Tech Mahindra, KPIT Cummins, Oil India and Power
Grid Corporation of India Ltd.
3. All the remaining organizations have disclosed the names of Industry Associations of
whom they are members.
Embedding CSR in Business in the Indian Context 80 Purnima Bhatnagar
4.5.8 Principle 8: Businesses should support inclusive growth and equitable
development.
1. Inclusive growth and equitable distribution – Conceptual note
The ‗inclusive growth‘ as a strategy of economic development received attention owing to a
rising concern that the benefits of economic growth have not been equitably shared. Growth
is inclusive when it creates economic opportunities along with ensuring equal access to
opportunities. Apart from addressing the issue of inequality, the inclusive growth may also
make the poverty reduction efforts more effective by explicitly creating productive economic
opportunities for the poor and vulnerable sections of the society. The inclusive growth by
encompassing the hitherto excluded population can bring in several other benefits as well to
the economy. The concept ―Inclusion‖ should be seen as a process of including the excluded
as agents whose participation is essential in the very design of the development process, and
not simply as welfare targets of development programmes (Planning Commission, 2007).
K. C. Chakrabarty, Deputy Governor of RBI in this speech clarifies the meaning of inclusive
growth.
According to K C Chakrabarty, Deputy Governor of the RBI, Inclusive growth as the literal
meaning of the two words refers to both the pace and the pattern of the economic growth. The
literature on the subject draws fine distinction between direct income redistribution or shared
growth and inclusive growth. The inclusive growth approach takes a longer term perspective
as the focus is on productive employment rather than on direct income redistribution, as a
means of increasing incomes for excluded groups. Inclusive growth is, therefore, supposed to
be inherently sustainable as distinct from income distribution schemes which can in the short
run reduce the disparities, between the poorest and the rest, which may have arisen on
account of policies intended to jumpstart growth. While income distribution schemes can
allow people, to benefit from economic growth in the short run, inclusive growth allows
people to ―contribute to and benefit from economic growth‖.
2. Mapping Social sector contributions via CSR and inclusive growth concept:
All initiatives reported under Sustainable products as leading to societal well – being need to
be stated here. On the other hand, donations of products and materials should not form a part
of inclusive growth. DPE Guidelines on CSR and Sustainability also reiterate this view.
―Mere contributions to philanthropic, charitable or other organizations would not be considered a
valid CSR activity. The only exception being contributions made for natural calamities / disasters
and for meeting the emergency needs of employees of sick and loss making CPSEs in distress,
not provided for under existing pay revision / wage settlement arrangements as explained in para
1.5.5.‖ Additionally, Rehabilitation efforts, Infrastructure development, Livelihood
provisioning, Empowerment, Creating value for society in the form of computer literacy and
education as well as improving health are potential CSR areas.
3. Reviews of focus areas for social contribution by various firms have helped create
visibility on the areas where firms in the four sectors under study are contributing.
The top three areas for firms across sectors to contribute in this arena are:
Education, Healthcare and Rural Development
Embedding CSR in Business in the Indian Context 81 Purnima Bhatnagar
4.5 Graph V: Social Contribution – Focus Areas and Percentage Firms
0% 40% 80% 120%
Education Healthcare
Rural developmentVillage development
Agricultural DevelopmentLivelihood
Women EmpowermentFinancial inclusion
Economic support to finance/ co-finance …Art, Culture and Sports
Inclusion of minorities at workplaceDonation of materials
Participation in government schemesNon - farm Skills training
Donation of used equipmentDrinking Water
Activities to raise awarenessEnabling Disabled
Donation of productsFarm skills training
Payroll givingAffirmative ActionWildlife Protection
Social Contribution - Focus Areas and Percentage Firms
4. Sector focus areas - Practices related to Social Contribution – Evidence from
Automotive, Oil, Gas and Energy Transmission, Banking and Computer Software
Industry.
Table 4.5.17: Top 5 Areas of social contribution
S No. Automotive Oil, Gas and Energy
Transmission
Banking Computer Software
1 Education (5/5)
Healthcare (5/5) Financial Inclusion
(6/6)
Education (5/5)
2 Women Empowerment
(3/5)
Arts, Culture,
Sports (5/5)
Rural Development
(5/6)
Healthcare (2/5)
3 Healthcare (3/5)
Education (4/5)
Healthcare (5/6) Village Development
(2/5)
4 Agricultural
Development (3/5)
Rural Development
(4/5)
Economic support to
finance /co-finance
projects (5/6)
Enabling Disabled
(1/5)
5 Rural Development
(3/5)
Inclusion of
Minorities at
Workplace (4/5)
Livelihood (4/6) Livelihood (1/5)
Embedding CSR in Business in the Indian Context 82 Purnima Bhatnagar
S No. Automotive Oil, Gas and Energy
Transmission
Banking Computer Software
6 Education (4/6) Women
Empowerment (1/5)
Note: Figures in parentheses shows number of firms having specific initiatives in this area/Total Number of
firms for whom data is available.
5. Specific actions under various heads.
Education
Within Education, it is observed that the 62% of the firms in the sectors under study are
involved in providing vocational training, and 38% of the firms have also disclosed enabling
trainees to be gainfully placed in employment. Further it is seen that 38% of the firms are
also involved in strengthening school infrastructure, as well as in providing merit
scholarships to deserving students.
4.5 Graph VI: CSR Focus Areas - Education
38%
33%
24%
10%
38%
24%
29%10%
10%5%10%
38%
29%
5%10%
5%5%
62%
CSR Focus Areas - Education
Merit scholarship schemes
Financial assistance to schools
Education Infrastructure
ITI Upgradation
Educational Infrastructure
Participation in mid day meal scheme
Innovative teaching methods and tools
Monetary Incentives to complete education
Incentives for Girl Children
Special Children
Educating SC/ST Students
Placement
Teacher Skills & Awards
Rewards and Recognition for Science
Assistance to students through donations
Sponsorship for Chairs in higher Education
Adult Literacy Programme
Vocational Training
Embedding CSR in Business in the Indian Context 83 Purnima Bhatnagar
Further it is seen that out of 13 firms who are engaged in providing Vocational Training,
54% deliver through NGOs, whilst 46% each, through either self/ company Foundation or
Trust, and through other Institutions.
4.5 Graph VII: Mode of Engagement for vocational education
46%
54%
46%
15%
Mode of engagement for vocational education
Vocational training through self or Company Foundation
Vocational training through NGOs
Vocational training through Other institutions
PPP Model for ITI Upgradation
Healthcare
52% of the firms are engaged in providing health facilities through mobility solutions like
mobile medical vans, Life line Express by Mahindra, and holding health camps. 52% firms
also participate in creating awareness on health related problems. Further 43% of the firms
are engaged in provision of health facilities through Hospitals – owned/managed by Trusts or
Foundations.
4.5 Graph VIII: CSR Focus Areas - Healthcare
52%
5%
10%
5%5%
19%
5%5%
52%
43%
19%
10%10%
10%10%
CSR Focus Areas - HealthcareAwareness Programs
Capacity Enhancement of medical staffTreatment of malnourished children
Survey of school children for Leprosy
Old Age home
Preventive health (Water, Toilets)
ICDS
Distribution of calcium supplements
Health Facility - Lifeline express, Mobile vans, CampsHealth Facility - Hospitals
Donation of medical Equipment
Financial Donations
Disabled support
Health Insurance to under -privileged
Embedding CSR in Business in the Indian Context 84 Purnima Bhatnagar
Rural Development
The salient activities undertaken in the sphere of rural development by Firms in all sectors are
related to provision of Health services, water (Water harvesting structures, laying down of
water pipelines, construction of tanks, provision of clean drinking water, etc.) and products
designed for the rural sector (Farm equipments and tractors in Automotive sector, to micro
– recurring deposits in the Banking sector).
4.5 Graph IX: CSR Focus Areas – Rural Development
5%5%5%
19%
29%
14%5%10%5%5%
5%10%
24%
10%
14%
5%10%
CSR - Rural Development Activities
Common LPG kitchens
Electrification
Grants - RGGLV Yojana
Water
Health
Products for Rural Sector
Distribution of food grains
Sanitation
Bio Gas Plants
Social Forestry
Waste land reclamation
Fellowships - Solving rural problems
Training for Self Employment
Linkage with Markets
Education
Mid day meal scheme
Employment
Village Development
CSR specific actions related to village development lie in the ambit of building infrastructure,
economic empowerment of rural community through self supporting schemes for women and
holistic village adoption to address development issues comprehensively.
4.5 Graph X: CSR Focus Areas – Village Adoption
19%
33%
10%5%
14%
24%
10%
CSR Focus Areas - Village Adoption
Adoption of villages
Building infrastructure
Physical transportation and power connectivity
Electronic connectivity – communication
through telecom, internet, IT
Knowledge through institutions and training institutions
Economic empowerment of rural community through self supporting scheme for women
Building roads, playgrounds and outreach programmes
Embedding CSR in Business in the Indian Context 85 Purnima Bhatnagar
Agricultural Development
The key CSR activities undertaken in the sphere of Agricultural development are
assistance in the form of technical guidance, and training through Agricultural
Universities, as well as provision of skills and assistance related to supplementary
activities like Bee keeping, dairy etc.
4.5 Graph XI: CSR Focus Areas – Agricultural Development
10%
14%
29%
5%5%5%5%5%
14%
5%
5%
5%
5%
10%5%
CSR - Agricultural Development
Training through Agricultural universitiesDistribution of seeds and fertilizersTechnical guidance
Distribution on saplings
Tree plantations
New Crops and Vegetables
Micro -irrigation
Productivity
Supplementary Activities
Mechanisation
Market Linkage
Awards
SHG for income generation
Animal Health Camps
Loans
Financial Inclusion
Initiatives in the area of Financial inclusion
Canara Bank: The Bank has run a campaign involving 1624 villages covering rural
activities e.g. increasing access to banking services through opening new branches,
increasing coverage under Business Facilitators, mobilizing no-frill accounts,
providing credit under KCCs, credit linking SHGs, providing micro-insurance,
Aadhar enrollment, forming farmers’ clubs, deploying Gramin Vikas Vahini for
enhancing financial literacy and credit counseling in the rural areas.
Punjab National Bank: The Government of India allocated 4588 districts to PNB
under the Swabhiman Project. PNB has used the Business correspondent model and
technology service providers. It has 2232 rural branches and more than 30,000
Embedding CSR in Business in the Indian Context 86 Purnima Bhatnagar
villages in scope. 90 Lac "Basic Savings Bank Deposit Accounts" were opened for
excluded people. Additionally, as per RBI Guidelines, PNB is the lead bank in 57
districts and has set up FLCCCs in each district. 100 Financial literacy centers
trained 2,64,371 individuals during FY-13.
6. Impact Assessment
6 Firms have disclosed that social impacts are assessed for initiatives run by them.
Embedding CSR in Business in the Indian Context 87 Purnima Bhatnagar
4.5.9 Principle 9: Businesses should engage with and provide value to their customers
and consumers in a responsible manner.
1. Declaration of customer complaints pending as at end of year: 12 firms have
declared the percentage of customer complaints pending at the end of the year.
2. Charges against the firm for unfair trade practices and irresponsible advertising
Three firms have disclosed the charges related to this area.
Mahindra and Mahindra: Two matters related to alleged unfair trade practices and one
related to alleged anti - competitive activity by Dealer.
Bajaj Auto: In last five years, there have been 6 instances of customer/viewer
complaints against TV commercials made by Bajaj Auto.
ICICI Bank: ―In the ordinary course of banking business, several customers and
borrowers have disputes with the Bank which could result in their filing a civil suit,
criminal complaint or a consumer complaint alleging deficiency of services. The Bank
always strives to have a cordial relationship with its customers / borrowers and
attempts to have an amicable settlement of the dispute but in some cases needs to
pursue legal resolution of the same‖. Source - BR Report
3. Surveys conducted for Customer Satisfaction
Automotive Sector: JD Power Survey (Passenger Vehicles); TNS Survey
(Commercial vehicles); MQRS Survey (Load Carriers)
Banking Sector: Varies from surveys conducted by the Banks at the branch
level, or outsourced to outside agencies like National Institute of Bank
Management and Management Development Institute, Gurgaon.
Computer Software: These range from half yearly internal self assessment at
an account level, to annual C- SAT surveys involving the client.
Oil, Gas and Energy Transmission Sector: All India ‗Customer Satisfaction
Survey‘ on an annual basis covering all major aspects of products and
services.