Summary of Presentation

1. Karmayog Corporate Social Responsibility Ratings 2007of the largest 500 Indian Companieswww.karmayog.org/csr

2. Summary of Presentation

3. Easy everyday examples of Social Responsibility

4. Easy everyday examples of social responsibility…..

5. Easy everyday examples of social responsibility

6. What is Corporate Social Responsibility?

7. What is Corporate Social Responsibility? The Karmayog CSR study led to some very clear & simple insights, that: “Every company harms the environment!” (Just as an individual does) Corporate Social Responsibility is thus only about two aspects: 1) Reducing the Negative Effects: Steps taken by a company to neutralise, minimise or offset the harmful effects caused by its processes and product-usage 2) Increasing the Positive Contributions: Further steps taken using its resources, core competence, skills, location and funds for the benefit of people and the environment

8. Results of the Karmayog CSR Rating 2007

9. Results of the Karmayog CSR Rating of the largest 500 Indian companies * HDFC, Infosys, Tata Steel, Titan Industries

10. Basis of assignment of the CSR ratings…

11. Basis of assignment of the CSR ratings…

12. Basis of assignment of the CSR ratings

13. Basis of assignment of the CSR ratings

14. Inferences from the Karmayog CSR rating exercise

15. Inferences from the Karmayog CSR rating exercise

16. Industry Sector–wise analysis of the CSR activities of the largest 500 Indian companies

17. CSR in 28 Industry Sectors An industry analysis of 28 sectors has also been done for the 500 companies (Number of companies in each sector is in brackets)

18. Importance of the Sector-wise analysis

19. Sector Example - The Paper Industry * Note : Karmayog recommends that Companies spend a minimum of 0.2 % of sales on CSR activities annually

20. Compulsory CSR:- our 4 Recommendations

21. Compulsory CSR:- Our 4 Recommendations…

22. Compulsory CSR:- Our 4 Recommendations

23. Voluntary CSR:- Our 7 Recommendations

24. Voluntary CSR:-Our 7 Recommendations…

25. Some developments in CSR after our study • Reserve Bank of India: outlines guidelines for financial sector Dec. 2007: RBI Notification to all Banks & Financial Institutions recommending that Non Financial Reporting (NFR) be undertaken as a step towards ‘Responsible Banking’. • Ministry of Corporate Affairs: recommends reporting of CSR June 2008: The MCA has stated that it would like to encourage all companies to “disclose on their balance sheets the social work that they do”. • Government of Gujarat: mandates CSR expenditure Sept. 2008: - Gujarat Govt. directs 6 PSEs to set aside 30% of their profit before tax to carry out welfare activities across Gujarat. - Draft industrial policy of Gujarat Govt. mandates CSR for industry associations and corporate houses in the state. Companies to be allocated developmental activities in sectors like health, education & environment in respective talukas, villages or districts.

26. NGOs Companies Citizens, Investors, shareholders Media Industry & trade associations Researchers, students Govt. bodies Importance of the CSR Ratingsfor different stakeholders Every stakeholder has a role to play to make CSR effective and sustainable Diagram showing various stakeholders of CSR

27. Importance of the CSR Ratings for … • Board of Directors • To implement international CSR guidelines and norms • To sensitise employees about the value of CSR • To identify possible CSR activities • To learn from others’ CSR initiatives • Industry & Trade Associations • To understand the huge scale and magnitude of the benefits that are possible if an entire sector spends even 0.2% of turnover on CSR • To get a snapshot of the state of CSR • & set benchmarks for companies • To prepare case studies, highlight best practices & give awards • To provide consultation on CSR • To work with Government, NGOs and international organisations to upgrade and improve CSR activities

28. Importance of the CSR Ratings for… • Government bodies • To develop industry-wise guidelines for CSR • To introduce laws that would reward companies that are working towards reducing environmental damage and laws that would penalise companies that continue to do harm. (e.g. the polluter-pays principle) • To enable companies to partner with government in implementing social welfare and developmental schemes (e.g. adoption of ITIs) • NGOs • To know about the areas of CSR work undertaken by companies, thus enabling partnerships with them • To be able to identify companies which are not doing CSR or doing so in a token manner, so as to approach these companies to initiate meaningful projects • To assist companies to formulate CSR objectives, implement CSR activities, and monitor and evaluate their CSR activities

29. Importance of the CSR Ratings for … • Media • To stop eulogising leaders whose companies & products are damaging the environment & harming lives • To highlight companies practising good CSR, and to negate those companies which are actually engaged in marketing of their products under the guise of CSR • To present a clear view of CSR that is separate from philanthropy, charity & expanding business scope, and to sensitise the public about this • To encourage publications to have a regular feature on CSR initiatives • Citizens, Investors, Shareholders • To understand that as consumers and stakeholders of companies, we can and must influence companies to change harmful polices and adopt proper CSR practices. (due to the huge impact and power that companies have on people and the environment) • To ensure that our purchase choices align companies to do business in a way that reflect our desirable values for society.

30. Importance of the CSR Ratings for … • Students • To be sensitised about the role and responsibility of companies • To understand the impact and consequences of everyday processes and actions • To develop a holistic view of life and living • Before joining a company: to join a company that is working to benefit society and not one that is harming it • Within any company: to improve the functioning of the company to make it a business that contributes to society • Beyond the business: use the core competence and resources of the company to improve society

31. Closing Statement… • Enlightened businesses worldwide, small and large, have begun to realise that responsible practices enhance profitability & ensure long-term survival. Companies not doing CSR will not survive – it’s only a question of when. • For those companies which disrespect the environment or living beings, we, as responsible citizens, need to individually and collectively, reward or penalise them through our voices and our wallets …..

32. Jubilant Organosys, a pharmaceutical company, while acknowledging the harm caused in manufacturing its chemicals, actively works to minimise the damage. It is one of the only 6 Indian companies that published a Corporate Sustainability Report last year.“There are stakeholders who can voice their concerns today while we engage them. There is another category of stakeholders like flora, fauna and physical environment, whose voices we cannot hear, but who are affected by anthropogenic (i.e. caused by humans) impacts of global population. The future generation is another important group of stakeholders that does not exist today but will be impacted by our activities ……”Jubilant Organosys Limited, Corporate Sustainability Report, FY 2007 Closing Statement

33. Karmayog Corporate Social Responsibility Ratings 2007of the largest 500 Indian Companieswww.karmayog.org/csr