hira report

8/4/2019 Hira Report

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CERTIFICATE BY INTERNAL GUIDE

This to certify that the report of the project submitted is the outcome of the project work

entitled CSR Initiatives carried out by Jitendra Tamrakar bearing Unique ID No.:

0908032 carried by under my guidance and supervision for the award of Post Graduate

Diploma in Management of Disha School of Management,AICTEapproved, Ministry of

HRD Government of India Raipur (C.G), India.

To the best of the my knowledge the report

i) Embodies the work of the candidate himself,

ii) Has duly been completed,

iii) Fulfils the requirement of the ordinance relating to the PGDM degree of the

Institute and

iv) Is up to the desired standard for the purpose of which is submitted.

_______________________

(Signature of the Guide)

Name: Prof. Monika Kumari

Designation:

Department:

Disha Education Society, Satya Vihar , Raipur

The project work as mentioned above is hereby being recommended and forwarded for

examination and evaluation.


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SELF-CERTICATE

This is to certify that we the following students of PGDM 3rd

trimester at

DishaEducation Society, Satya Vihar , Raipur . Affiliated to AICTE,

Delhi name carried out the work of report title Corporate SocialResponsibility. Own for the completion of BCA course.This is future to certify that this project work has been submitted

anywhere else for the awarded of any examinations.

NAME: - Jitendra Tamrakar

Roll No.- 0908032


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BBeelloonngg iinn

Plant & Registered Office

428/2, Phase-I, Industrial Area, Siltara - 493111

Dist. Raipur, Chhattisgarh, India

DISSERTION APPORVAL CERTIFICATEThis is to certify that the project entitled "Corporate Social Responsibility"

submitted in partial fulfillment of the degree of "Post Graduation Diploma in

Management" toAICTE, DelhithroughDishaEducation Society, Satya

Vihar , Raipur done byJitendraTamrakar, Roll No.0908032. is an authentic

work carried out by her at our organization ,Siltara, Raipur under my

guidance, from09-04-2010 to26-05-2010. The matter embodied in this project work

has not been submitted earlier for the award of any degree or diploma to the best of my

knowledge and belief.

Signature of the student Signature of the Director

Name: - Jitendra Tamrakar Date:-

Class: - PGDM 3rd Trimester

College: - DishaEducation Society, Satya Vihar , Raipur


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AAACCCKKKNNNOOOWWWLLLEEEDDDGGGEEEMMMEEENNNTTT

I feel very privileged to express our profound sense of our respect and gratitude to

our project guideMMoonniikkaa KKuummaarriiffaaccuullttyyofDisha School ofManagement.

All faculty incredible help and valuable suggestion efforts and constructive guidance

made the project an interesting task, their optimistic attitude, guidance of appreciation was

such as to give impetus to our thoughts and understanding making us believe that all that

was of my own efforts for which for I well ever our remain indebted to them.

I shall also like to thanks my Madam PPrrooff.. MMoonniikkaa KKuummaarrii of our collegeassigning and supporting us.

Finally I would like to thank my all teachers for their cooperation to completethis project.

SSuubbmmiitttteedd BByy

JITENDRA TAMRAKAR


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CERTIFICATE BY THE EXAMINERS

Corporate Social Responsibility

Submitted by

Jitendra Tamrakar Roll No.0908032

Has been examined by the undersigned as a part of the examination for the award of Post

Graduate Diploma in Management of Disha School of Management, AICTE approved,

Ministry of HRD Government of India Raipur (C.G), India

________________ __________________

________________ __________________

Name & Signature of Name & Signature of

Internal Examiner External Examiner

Date: Date:

Forwarded by

Academic Head


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Department of Management


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PREFACE

This aim of project is to enhance CSR service in various

organizations. We have developed a fairly reliable management solution to tackle

the problems encountered organizations. This project is a humble attempt bring

into light or to show easy it is move to towards


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INDEX

Sr.

No.

Chapters Page

No.

1. Introduction

2. Objectives

a) Vision

b) Bharti Televenture

3. Airtel Broadband

4. Airtel Services

5. Case study of black Barry Handset

a)Product profile

6. Research methodology

a)Graphical Representation

7. Conclusion

8. Recommendation

9. Bibliography

10. Questionnaire


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HISTORY OF COMPANY

Godavari Power & Ispat Ltd. (GPIL) a public Ltd. Co., formally Ispat Godawari

Ltd (IGL), belonging to HIRA Group of Industries, Raipur, C.G. was incorporated in

1999 to set up and integrated steel plant with captive power generation under the

guidance of visionary leadership of Shri B. L. Agrawal, Managing Director, a techno

commercial person (Qualified Engineer) having proven wide experience incommissioning & running or Cement Plant, Sponge Iron Plant etc., backed by a

dedicated team of professionally qualified personnel under the stewardship of a

board of Directors having expertise in Engineering finance administration GPIL is

listed co. with the nation stock exchange and Bombay Stock Exchange.

GPIL has come a long way since it started is operation in Raipur, Chhattisgarh

as a sponge iron manufacturer in the year 2001. Over the last few years, the

company has scaled up its capacity five fold and is today the third largest producer

of coal based sponge iron in India and is one of the largest players in the mild steel

wires segment. Not only has the company increased its scale during the aforesaid

period, it has also moved up the value chain. The Company crossed Rs 1000 crore

marks in turnover. 2007-08 has seen an all around growth in the performance of

the company, backed by higher volumes of production and better price realizations.

The company has achieved consolidated revenue of Rs. 936 crore during the yearunder review as compared to revenue of Rs. 551 crore during the previous year, a

growth of 70% .The consolidated net profit after tax grew by 82% to Rs. 99 crore

as against Rs. 54 crore during the previous year. Considering the fact that just two

years ago, when we concluded our initial public offering our revenues were just 275

crore and net profit of Rs. 22 crore, the company has within a short span of time

achieved significant growth in volume of business, revenue, profits and net worth

and


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achieved annual compounded growth of over 80% in terms of revenue and

profitability last during two years.

The growth drivers are still on with further plans to improve the operating margins

by entering into backward integration through mining of iron ore and coal and

venturing into value added manufacturing facilities by setting up iron palletisationplant-a process to convert iron ore fines into pellets which can be used as a raw

material for making sponge iron as replacement of sized iron ore.

GPIL has been granted mining lease for 2 iron ore mines at Ari Dongri and

Boria Tibu in Chattisgarh. This would be on an area of 216 hectare & prospecting

license for another iron ore mines with an area of 754 hectare in Chattisgarh.

GPIL has also been granted mining rights in consortium for mining of coal in

Chattisgarh and the coal mines are being developed through special purpose Joint

venture Company which has also achieved significant progress towards getting

various regulatory approvals and coal mining operations are expected to commence

some time in FY 2011.

To insulate against the hazards of price fluctuation due to Govt. fiscal

policies, uncertainty of supplies ensuring energy securities and of all basic &

primary inputs GPIL carried out backward integration by entering into mining of

coal/Iron ore & generation of captive power and forward integration by acquiring

wise drawing plants (RRL), promoting 10% subsidiary Co. for venturing into

generating of merchant power, inverting in J. V. Companies for development of

coalmines and setting up railway siding for captive use.

Consistent with the vision, GPIL, continually endeavors in mastering the

techniques for improving the factors affecting there mission with environment,

customers, benefits to society, public Image, philosophy & values, profitability &

growth; pursuing innovation, Creativity, Diversity, environment excellence and

change. We believe in blue ocean technology i.e., a sound strategy model to put

technology to use in a commercial way inducting low cost process planning,

preparing new technology road map benchmarking of process with worlds best to

ensure desired outputs from the inputs.


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Vision of the Company-To become one of the most competitive

integrated steel plants with diversified products, specializing in particular to be

reckoned with as a dominant leader in wire segment contributing substantially in

meeting consumers needs, creating shareholders value and spearheading to be a

leader in global wire segment market, pari pasuwith powering Indias growth to

serve community and the nation in the decades to come.

Mission of the Company-We exist to create, make and market useful

products and services (Power) to satisfy the needs of our customer throughout the

world. The means envisaged to achieve this are high technology and productivity,

consistent with modern management practices, we believe in honesty and integrity

apart from profitability which is a driving force for economic growth.

Business units-

1.SID-In India the steel sector is growing at a robust rate with significant

increases in both production and consumption. Crude steel production grew at

more than 10% annually from 34.71 million tones in 2002-03 to 50.82 million

tones in 2006-07. This growth was driven by both capacity expansion and by

capacity utilization. During 2006 India emerged as 5th largest crude steel

producing country in the world as against 8th position three years back. India the

worlds largest producer of direct reduced iron (DRI) or sponge iron is also

expected to make lead in the near future.

GPIL also has its coal-based sponge iron manufacturing facility. Backward

integration has given GPIL the distinction of being one of the sponge iron

manufacturer with its own captive raw material resources and power generation.

This has enabled GPIL to monitor both price and quality of its products.

At sponge iron plant at GPIL the iron ore and dolomite, in predetermined

quantities, are taken to a common belt conveyor through weigh feeder to the pre-


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heater forming an adjunct to the rotary kiln for sponge iron manufacture where

coal acts as reluctant. The sized coal through a weight feeder is led directly to main

rotary kiln and it is not pre-heated.

The waste hot gases emanating from the sponge iron kilns contain substantial heat

values and combustibles along with carbon particles, unused CO etc. It is possible

to exploit gainfully such heat contained in fuel gases to preheat the charge before it

moves to the kiln proper and subsequently utilize the hot gases to produce steam

to generate power in a suitably designed Waste Heat Recovery System (WHRS).

2.Power Plant-An effort to achieve higher productivity and increased energy

efficiency, the company established its own power plant division. The division

started Operations from September 2002 with a 35 tonnes waste heat recoverybased Captive power plant (CPP). A year later it undertook expansion with a 70

tonnes coal based power plant utilizing coal fines and coal rejects from the sponge

iron process as fuel. Again in the year Jan 2006 capacity was further enhanced with

the help of 56 tonnes waste heat recovery boiler increasing the generation capacity

to 30 mw. And finally generation capacity was further enhanced by 25 MW in Apr

2007 with the addition of two 51 tonnes boiler taking the total generation capacity

to 53 mw.

The electricity produced is used to partially meet the power requirement of GPIL

plant itself and the surplus power is exported through Chattisgrah State Electricity

board (CSEB) transmission and distribution (T&D) lines to meet the power

requirement. The net result is a reduction in electricity demand from the

Chattisgrah state grid which is a part of the Western regional grid and hence

reducing GHG emission.

3.SMS- Steel making is the process of selective oxidation of impurities present

in the charge material (Hot metal/Scrap/DRI) in the presence of suitable fluxes in

the Steel Melting Shops (SMS). The immediate hot molten steel product from Steel

Melting Shop (LD Converter/Electric Arc Furnace/Electric Induction Furnace/Energy

Optimizing Furnace). It is further cast into Ingots/Semis. The by-product of SMS is

SMS slag.


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AT GPIL SMS capacity is 4,00,000 TPA and its primary product is billets. A major

portion of GPILs steel billets production is sold to its subsidiaries & associate

companies like R.R. ISPAT AND HIRA STEEL for conversion into wire rods. Steel

billets after captively used are sold in the open market for sales.

4.Ferro alloys- Ferro alloy division of Godawari Power & Ispat is one of the

leading manufacturers of Ferro alloys. We are producing around 13000 mt of Ferro

alloys per annum and having a vision to achieve around 23000 mt. of production.

This Ferro alloys is an essential component in the manufacturing of various grades

of steels. We are having 9MVA electric submerged arc furnace, of production

capacity 50 MT per day on full load operation. The entire raw material feeding

system is atomized for every two hours. We are tapping the molten metal from

furnace bath & it is a continuous process. The tapped molten metal is collected in

sand beds & after sufficient cooling the metal is lifted & braked in different sizes

like 10x100, 10x150 etc as per the customer requirement.

(1)High Carbon Ferro Manganese

Mn - 68-70%

Fe - 22-24%

Si - 1.5% Max.

C- 6.0-6.5%

P- 0-35%Max

MnO - 30-32%

SiO2- 28-30%

(2) Medium Carbon Ferro Manganese-

Mn- 68-70%

Fe- 22-24%

Si- 2-2.5%Max.

C- 4.5-5% Max

P- 0-35%Max


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5.WIRE DRAWING UNIT- GPIL makes mild steel wires or HB wiresthrough cold drawing process using steel wire rod, purchased from subsidiary

company as a raw material. Wire Rod is firstly D-scaled with the help of Double

plain descalert rid of mild scale. Then the cleaned wire rod is passed through the

different number of dies & druman , average reduction and required size achieved

and this wire is taken in bundle shape of appropriate casting.

GPIL along its subsidiary and associate companies is among the largest producers

of mild steel wires in the country. Its annual capacity is 1.2 lac metric tonnes.

6.Oxygen Gas Division-Oxygen generating systems units plants are

suitable for a large number of industrial applications. Oxygen is an important

ingredient that is required in large volume in many applications. At GPIL Oxygen

gas is captively used for the steel manufacturing process. This meets the entire

oxygen requirement for GPIL for both iron and steel making. The surplus is than

sold. The total capacity of this division at GPIL is 10, 80,000 cu.m. per annum.

Steel wires find application in the infrastructure sector, mainly in construction;

railways, power transmission etc. Binding wire & Nails wire are used in construction

industry & barbed wire in fencing.

Policy of the HIRA GROUP-

1 (c) (i) ENVIRONMENTAL POLICY

GODAWARI POWER AND ISPAT LTD. a unit of Hira group of Industries is committed

to conduct business with strong environmental conscience towards community,

customer and employees by-

Conserving natural resources.

Executing Clean Development Mechanism (CDM) project.

Adopting and promoting industry best practices to improve our environmental

performance.

Continuous monitoring and protecting air, water & soil.

Complying with all relevant legislation & regulation on Environmental

protection.

Promoting transformation of solid waste into more value added product.


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Applying stringent control to reduce generation of Hazardous waste.

Accelerating the forestation & water harvesting.

To conduct environment awareness training program through experts.

1 (c) (ii) Occupational health & Safety Policy

GPIL is committed to ensure Occupational Health & safety of all the employees and

all agencies entering its premises.

The company has declared its Occupational Health & safety policy. All the divisional

heads are responsible to implement the policy in their respective divisions. In order

to coordinate all safety activities the management has established a full fledge

department for this. Organizational health & safety department undertakes anumber of educational and promotional activities to promote health & safety.

The company has also considered the importance of workers participation in

Organizational health & safety and has formulated a committee to help

management for promoting it.

Safety training programmes are being regularly conducted to make each & every

employee aware of importance of Organizational Health & safety. As per the needspecific programmes are conducted to build up competencies & skill of all

categories of employee whose performance impact organizational health & safety.

Monthly safety gate meeting is conducted to communicate and inform employees

about OH & S activities. Regular health check up of all employees is being done by

Medical officers & preventive and corrective actions are taken.

Godawari Power & Ispat Ltd., a unit of HIRA Group of industries is committed to

manage all its activities-

To ensure health, safety environment & compliance with all applicable OH & S

legislation and with other requirements to which the organization subscribes.

Arrange organizational setup to carry out the policy effectively.

Make sincere efforts to identify Hazards Assess and control associated Risks

to practicable level.

Arrange involvement of workers (Including contractor, contract labor and

other agencies entering the factory premises)


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Consider health and safety performance of individuals for career

advancement.

Periodical use of techniques and methods such on safety Audit etc. to

enhance status on Health, safety and Environment.

Integrate safety in all decisions including purchase of plant, Equipment,

machinery and material as well as selection and placement of personnel.

Arrange for information, education and training of employees at all levels.

Ensure continual improvement in OH & S performance.

Round the year a number of safety promotional activities are carried out. Some of

them are:-

1. Celebration of National Safety day.

2. Fire services day

3. World environment day.

Safety Competition such as poster, slogan is organized and displayed at

conspicuous locations in the plant.

HR Policy

To meet challenging demands of the Global business environment & aspirations of

the Company to grow within India & beyond, the focus of our HR Strategy is to

develop business leaders for tomorrow.

Align our HR policies with our strategy of being a technology savvy, customer

focused & cost competitive Company & foster a climate of creativity, innovation and

enthusiasm.

Our HR policies are to:

Attract and retain the best talent; Embellish and enhance their capabilities through training ;

Motivate them to contribute their best ;


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Reward & Recognize to develop a high performing organisation;

Provide opportunities for growth and development;

Create, nourish and maintain an extremely open, congenial, and receptive

work environment;

Provide leadership that is not only inspirational, but to create synergies which

lead to a team output.

Role of HR is to:

Shift from support group to strategic partner in business operations.

Spend more time and effort understanding the business environment and the

key strategic issues faced by the Company.

Develop Global Managers for tomorrow to ensure the companys role as a

global player.

Build performance measures to ensure achievements of business objectives.

Developing professional attitude, approach & develop required competencies.

Inculcate a spirit of learning and enjoying challenges.

Provide job contentment through empowerment, accountability and

responsibility.

Demonstrate fairness, equality of opportunity and respect to all.


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Board of Directors-

The Board of Directors has a combination of Executive and Non-ExecutiveDirectors. The Board comprises of five Whole-time Directors (the Managing Director

and four Executive Directors) and six Non-executive Directors. Four of the Non-

executive Directors are Independent Directors. Accordingly, the Composition of the

Board is in conformity with the Listing Agreement.

Except the Managing Director, all other Directors are liable to retire by rotation as

per the provisions of the Companies Act, 1956.

The names and categories of the Director on the Board and also the number ofDirectorships and Committee Memberships held by them during 2007-08 in other

Companies are as under:

Mr. G.B. DesaiChairman Independent Director

Shri G.B. Desai aged 81 years, has to his credit wide experience in the field of capital markets where he is

dealing for over three decades. He is Ex President of Bombay Stock Exchange. He holds directorship of Axis

Capital Markets India Limited and Tracom Stock Brokers Private Limited.


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Mr. O.P. Agrawal

Vice Chairman, Non Executive Director

Shri O.P. Agrawal, son of late R.R. Agrawal, aged 56 years is a Commerce Graduate. He has vast Industrial

Experience of Setting up of Ferro Alloys and Power Plants. He serves on the Boards of Hira Power & Steels

Limited, Hira Global Limited, Hira Global Marketing Limited, Hira Global Alloys Limited & Hira Power and Alloys

Limited.

Mr. B. L. Agrawal

Managing Director

An Electronic Engineer, he is a first generation entrepreneur. While his family concentrated on its traditional

trading business, it was his entrepreneurial spirit that laid the foundation of GPIL and the entry of the Agrawal

family into the metals business.

Mr. Dinesh Agrawal

Executive Director Projects

Associated with GPIL for over 9 years, he is an Electrical Engineer and has been associated with the companys

Ferro alloys and steel rolling units in the past. He is currently overseeing the setting up of the captive power

plant.


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Mr. Siddharth Agrawal

Executive Director - Operations

Mr. Siddarth Agrawal, son of Mr. B.L. Agrawal, is the Executive director of the Company and looking after the

project implementation, procurement of raw material, Plant maintenance, Production activities and marketing

of finished goods of the Company. He has hands-on experience in the Steel Industry with expertise in Sponge

Iron, Steel Melting and Power generation. His rich experience has stood him at comparable level & put him to

up scales on growth ladder.

Mr. Dinesh Gandhi

Director Finance

A Chartered Accountant and Company Secretary by qualification, he brings to the table his two decades of

experience in the areas of accounts, finance, project planning and financing. A dynamic financial analyst, his

competence strategically directs the company.

Shri Vinod Pillai

Director

Shri Vinod Pillai, 41, is a commerce graduate with high energy and enthusiasm. He serves on the Board of M/s

Hira Cement Limited. He has been associated with Hira Group of Industries since 1989. He has rich experience

in Sales, Administration, Liaisoning, Logistics, and has played a vital role in commissioning of new projects of

Hira Group of Industries.


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Mr. Shashi Kumar

Independent Director

Shri Shashi Kumar, aged 61 years, having about 38 years of rich experience in various fields, is a B.Sc. (Hons.)

graduated in Mining Engineering form Indian School of Mines, Dhanbad and obtained his 2nd class Mine

Managers Certificate of competency (in 1969) and 1st class Mine class Mine Managers Certificate of

Competency (in 1970).

Since retirement from Coal India Limited Shri Shashi Kumar has been working as Advisor (Coal) to NTPC Ltd.

IFFCO and Chhattisgarh Power Limited (a joint venture of IFFCO and the state of Chhattisgarh represented

through CSEB).

Mr. Biswajit Choudhari

Independent Director

Shri Biswajit Choudhari, B.Tec ( Hons), FICWA, aged 65 years, has over 44 years of experience in Engineering,

Banking, Finance and Management. Shri Biswajit Choudhari graduated as a Mechanical Engineer from IIT,

Kharagpur in 1963 is also a Fellow Member of ICWAI and Indian institute of Banking and Finance.

He acted as Director and Member of various Boards and Councils .He is currently an independent director on

the Board of Bihar Caustic & Chemicals Limited, Orind Exports Limited, and Bengal Sunny Rock Estate Housing

Development Company Limited.

Mr. B. N. OjhaIndependent Director


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Shri B.N. Ojha aged 64 years, is Bachelor of Electrical Engineering from BIT Sindari. He served NTPC in various

capacities till 2003. He is presently on the Board of various reputed companies like Nuclear Power Corporation,

(Govt. of India Undertaking), Regional Electricity Boards, Northern Coal Fields Limited and Damodar Valley

Corporation and he is holding Chairmanship in Bhilai Electric Supply Limited and NSPCL. Presently he is also a

member of the Export Committee, Department of Atomic Energy, Govt. of India.

Mr. N. P. Agrawal

Non Executive Director

Shri Narayan Prasad Agrawal, son of late R.R. Agrawal, aged 49 years is a Commerce Graduate. He is also

having vast Industrial Experience of setting up of Ferro Alloys and Power Plants. He serves on the Boards of

Hira Ferro Alloys Limited and Hira Power and Alloys Limited.

Achievement-

Godawari Power & Ispat Ltd. have beenawarded Integrated Management System

Certificate for the following standards:
http://gpilindia.in/certs.htmhttp://gpilindia.in/certs.htmhttp://gpilindia.in/certs.htm


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CSR Policy of HIRA GROUP-

CSR is the acknowledgement by companies that they should be accountable not

only for their financial performance, but for the impact of their activities on society

and/or the environment. Discussions surrounding the concept are still at an

evolutionary stage. However, the principles of CSR have long been part of business

strategy

CSR demands that businesses manage the economic, social and environmental

impacts of their operations to maximize the benefits and minimize the downsides.

Key CSR issues include governance, responsible sourcing, eco-efficiency,

environmental management, stakeholder engagement, labor standards, employee

and community relations, social equity and human rights.

CSR is not only about fulfilling a duty to society; it can also bring competitive

advantage. Through an effective CSR programme, GPIL will:

improve their access to capital

enhance their brand image

increase sales

attract, retain, motivate and develop employees


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sharpen decision-making

improve risk management

Policy on CSR
http://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htm


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INTRODUCTION OF CSR

A growing body of evidence asserts that corporations can do well by doing good.

Well-known companies have already proven that they can differentiate their brands

and reputations, as well as their products and services, if they take responsibility

for the well-being of the societies and environments in which they operate. These

companies are practicing Corporate Social Responsibility (CSR) in a manner that

generates significant a return to their Businesses.

CSR is a container concept which encompasses many different ecological,

social and economic issues. In order to give a more specific interpretation to the

concept of CSR a platform of Dutch NGOs has composed a so-called CSR Frame of

Reference. Aim of this framework is to give companies a coherent overview of what

NGOs define as CSR. The Frame of Reference is mainly based on international

treaties, guidelines and instruments enjoying broad international support that arerelevant for business, such as human rights, labour rights, environmental

protection, consumer protection, socio-economic development, corruption and

other aspects of CSR. It also includes some fundamental operational aspects of CSR

like supply chain responsibility, stakeholder involvement, transparency and

reporting and independent verification
http://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htmhttp://gpilindia.in/csr_policy.htm


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CSR canplay a vital role in detecting how business impacts labor conditions,

local communities and economies, and what steps can be taken to ensure

business helps to maintain and build the public good. This can be

especially important for export-oriented firms in emerging economies.

Governance: Governments and intergovernmental bodies, such as the

UN,the Organization for Economic Co-operation and Development (OECD)

and the International Labor Organization (ILO) have developed various

compacts, declarations, guidelines, principles and other instruments that

outline norms for what they consider to be acceptable business conduct. CSR

instruments often reflect internationally-agreed goals and laws regarding

human rights, the environment and anti-corruption.

Corporate sector impact: The sheer size and number of corporations,

and their potential to impact political, social and environmental systemsrelative to governments and civil society, raise questions about influence and

accountability. Even small and medium size enterprises (SMEs), which

collectively represent the largest single employer, have a significant impact.

Companies are global ambassadors of change and values. How they

behave is becoming a matter of increasing interest and importance.

Communications: Advances in communications technology, such as the

Internet and mobile phones, are making it easier to track and discusscorporate activities. Internally, this can facilitate management, reporting and

change. Externally, NGOs, the media and others can quickly assess andprofile business practices they view as either problematic or exemplary. In

the CSR context, modern communications technology offers opportunities to

improve dialogue and partnerships.

Finance: Consumers and investors are showing increasing interest in

supporting responsible business practices and are demanding more

information on how companies are addressing risks and opportunities relatedto social

and environmental issues.A sound CSR approach can help build share value,lower the cost of capital, and ensure better responsiveness to markets.

Ethics: A number of serious and high-profile breaches of corporate ethicsresulting in damage to employees, shareholders, communities or the

environmentas well as share pricehave contributed to elevated public

mistrust of corporations. A CSR approach can help improve corporategovernance, transparency, accountability and ethical standards
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What should be important in CSR ?

1. he Environment and Climate ChangeBy far the greatest challenge facing business is going to relate to the environment.The emphasis in the future is centred around climate change and the need todevelop climate change strategies and reduce carbon emissions. This means

starting with carbonauditing and then putting in place strategies for reduction inclimate change impacts, mitigation and adaptation. Water shortages and watercontamination be high on the agenda. The new emphasis on the environment willalso require companies to look hard at the sourcing of raw materials, wastemanagement, the management of toxic substances, health impacts ofenvironmental degradation and the management of biodiversity.

2. Labour Rights as Human RightsIssues associated with the ubiquitous sweatshop will not go away. Indeed theissues associated with labour will be heightened. This will apply to a companys own

employment practices as well as to workers along the supply chain. There is likelyto be more of an emphasis on labour rights as human rights. This means therecognition that workers have fundamental human rights and must be treated withrespect rather than mere factors of production.

3. Transparency and AccountabilityAn increased emphasis on transparency will see a move away from the glossyreports that only reveal the good things about a companys activities towards trueaccountability. Responsibility might be about doing the right thing butaccountability means proving that you are being responsible and this will require a

whole new approach to revealing the positive and negative aspects of doingbusiness. Those companies that are unable to disclose an accurate account of theiractivities are going to lose trust and shareholder value.

4. The Institutionalization of CSRWe will see a growing institutionalization of CSR. We have already seen a numberof governments in the region develop new laws, standards and guidelines that forceor encourage businesses to take on CSR activities. But this is likely to be extendedas other institutions such as stock exchanges and accountancy bodies begin toincrease the CSR requirements of their members. The much awaited ISO26000 will

be a further institutionalization of CSR if it comes to be seen as setting minimumstandards for the activities of companies.

5. Stakeholder EngagementThere will be an increased emphasis on stakeholder engagement. Companiesshould build governance structures and decision-making processes withstakeholders in mind. This means finding out what stakeholders views are aboutissues and allowing that to influence decisions being made at the corporate level. Italso means developing much more sophisticated modes of communication with abroad range of stakeholders and embedding that into the

Governance of the organization.

6. The Battle For Talent
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A battle for talent is going to be the big human resource issue over the next tenyears. Recruiting and retaining the human resources best able to deliver qualitywork is already a problem and likely to become an even bigger one. This is going tobe compounded by a new generation of young people who are less interested in atraditional career structure and much more interested in filling their lives with arange of stimulating experiences. This means they are more likely to move jobsand have multiple careers. Attracting the best talent is therefore going to require

new ways of thinking about employment and much more flexible arrangements ifstaff are going to be effectively retained.

7. Community InvestmentA move from philanthropy to effective community investment is also seen as animportant development in the next decade. There will be fewer donations to localcharities and initiatives and a much more strategic investment in the communitiesimpacted by business. The shift to community investment is also going to meanmuch more sophisticated measurement of the returns on that investment. Thatmeans measuring both the benefits to the community and well as the benefits to

the business itself.

8. Supply Chain and Product SafetyWe will see a deepening of supply chain concerns with first tier audits of factoriesno longer being enough to satisfy stakeholders worried about sweatshop labour andproduct safety. This is going to mean new partnerships with suppliers based ontrust rather than inspections and it almost inevitably means the rationalisation ofsupply chains where large companies with shared CSR values are likely to bepreferred. But environmental issues are also going to become moreimportant in supply chains. Concerns over product responsibility will also mean

supply chain issues will move from concerns about how products are made towhether those products themselves are safe and healthy.

9. Social EnterprisesSocial enterprises will become an important new organisational model. A merger ofbusiness and NGO models is going to create enterprises that are sustainable intothe long run because they adapt to the market rather than constantly relying ondonor money. This they are able to affectively deliver much needed social servicesin an effective and efficient way.

10. Poverty AlleviationThe private sectors role in poverty alleviation is crucial. Particularly in the Asia-Pacific region we still see many people and communities that have not benefittedfrom the economic growth that has reduced poverty elsewhere. The very poor tendto have few resources, few skills and few opportunities to engage in economicactivity and we need innovative measures from the private sector to try to reducepoverty including challenges associated with the growing wealth gap now emergingin some countries and potentially threatening social stability.
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Data Collection

Understanding the methodology utilised in this project requires familiarity with the

meaning of corporate social responsibility as defined by both Oxfam Hong Kong andCSR Asia. Oxfam Hong Kong states that: CSR refers to the commitmentdemonstrated by a company to operate in an economically, socially andenvironmentally sustainable manner, upholding ethical business conduct. Todemonstrate their commitment, companies actively manage the impacts of theiractivities while trying to balance the needs of diverse stakeholders. CSR AsiasCSR model combines seven core areas: corporate governance, strategy,environment, workplace, supply chain, community investment and marketplace.Within these core areas, businesses should develop policies, objectives andprocedures to pursue sustainability while ensuring the interests of different

stakeholders. Specific criteria from all areas of CSR were considered when creatingthe questionnaire that was sent to companies.

The survey questions were based on a combination of CSR Asias model onCSR and internationally recognised sustainability indexes and guidelines, namelythe FTSE4 Good sustainability index and the Global Reporting Initiative guidelines.In May 2008, questionnaires (Appendix A) were sent out to all fortythree HangSeng Index constituent companies. Sixteen responses were received a responserate of Thirtyseven percent. Questionnaires were sent to the Chairperson of thecompany and also to key contacts within the Communications and

CSR/Sustainability departments. In cases where no contact could be found, theywere sent to the Chairperson and the Investor Relations department. Thequestionnaires were accompanied by a cover letter stating the intent of the surveyand the possibility of the findings being made public. Companies were given onemonth to respond. Companies that did not reply to initial requests for the surveywere contacted on two to three additional occasions by both telephone and email.

CSR Asia allotted extra time for completion of the questionnaire andcontinued to accept responses six weeks past the initial deadline. For thosecompanies that ultimately did not respond, CSR Asia gathered information rompublic documents on company websites (both English and Chinese), namely 2007

annual reports and in a few cases separate 2007 CSR reports and CSR sections ofcompany websites.

ScoringThe scoring of the survey was based on both the companys basic answers (yes,no, dont know) and the amount and quality of evidence provided to supportaffirmative responses. Providing evidence of CSR policies and initiatives becamecrucial to attaining higher scores. A chart describing the scoring process wasprovided to every company in the instructions section of the survey. That chartoutlining the scoring process is shown below-
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Not every question has a possible high of three. Many had a maximum of two, andseveral had a maximum of one. The scoring of each question differed, dependingon itsimportance. Highest marks for each question were given for an answer thatprovided thehighest quality of evidence and/or examples of practices. References topublic website links counted as providing evidence, as long as the companyeferenced the relevant information, which was confirmed by the researcher.A seriesof bonus points existed within the survey without the knowledge of the companies.Examples of these points included having a CSR committee that reports to theboard of directors or including additional specifications for supplier conduct. Thesepoints were added to points from other questions to create the total score for thecompany. The inclusion of bonus points allowed those companies doing more onCSRthan generally expected to shine through. More specific analysis of bonuspoints and their impact is given in the main findings section of this report. Inaddition to evaluating CSR practices, the scoring system inadvertently became ameasure of transparency. For those companies that did respond, evidence oftenincluded references to public informtion on company websites. Leading companiesreferenced these kinds of public sources frequently, displaying not only the breadthof their practices but also their commitment to CSR reporting. Many companies,however, were unable to include information beyond a general level. This allowedus to draw conclusions about the level of transparency among Hang Seng Index

constituent companies.
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CSR for the last decade has been very much based on the prevalent outsourcingmodel where concerns over sweatshop labour have dominated. Whilst stillimportant there is clearly now a big new challenge that we have to engage with andthat is the environment and, particularly, climate change. Labour rights are goingto be increasing couched as human rights. Community investment will be expectedto bring greater returns. Supply chain issues are going to become deeper and moreconcerned with product responsibility. There is going to be a battle for talent.

Companies are going to be expected to help find solutions for remaining challengesin the region such as poverty alleviation.

To deal with these new expectations of business we are going to see the needfor capacity building at a number of different levels and better embedding CSR intothe DNA of a business. This all has to be done in an open, transparent andaccountable manner with a new emphasis on stakeholder inclusion.

CSR Asias ongoing research into emerging CSR trends will help companiestrack emerging issues and plan CSR strategies accordingly. CSR Asia can also help

companies engage with stakeholders, respond to their needs through effective.communications strategies and develop new and innovative
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hira report

Documents