Corporate Social Responsibility Issues

Site Visit C Working Groups 5 & 6 Raipur & Korba Chattisgarh, India

Business of business is to do business

CSR
350 possible definitions!!

Some Definitions
Corporate governance should be recognized as set of standards, which aims to improve a companys image, efficiency, effectiveness and social responsibility- Nigel Kendall .operating in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business.Business for social responsibility. CSR is a new terminology, but its hardly a new concept. As in third century BC, Kautilyas has dealt with the management of people and power commerce and taxations, standardization of weights and measures, and more peace.

Concepts & Methodology

There are 3 levels of CSR : Level 1 : Compliance Level 2 : Philanthropy/Green wash Level 3 : - Innovations - Key business strategy - Leapfrog
Based on : John Elkington & Stuart Hart, et al.

CSR Level 1: Key Question : The least industry can do beyond compliance Polluter pays principle

CSR Level 1
Improve

law/ regulations standards Department of environmental management Reclamation (turning ash in to soil) Local Government participation

Whether the regulation poor or good/new or old : that is not the issue.

CSR Levels 2 Key Questions : Is industry voluntarily giving back something to the society? Are these actions inspired by a sense of guilt to the society, earning good name in market, philanthropy, etc.?

CSR Level 2

Infrastructure for physically challenged employees Foundations (i.e. : financial aid beyond immediate community/tax planning with positive impact) Income generation for community Forestation / Greening Community development office Cultivation in public land Paternity leave

CSR Level 3 Key Questions: Is it part of core business strategy? Is it adopted by the board?

CSR Level 3
Ash

management: ash brick factory Quality Circle: empowering community R&R: land for land Distributed Generation: Regional dev. Center for power efficiency and Env. Protection (CenPEEP)

Spectrum of CSR
Good Taking careCSR of workers
Low dependence on non renewable resources High awareness about CSR initiatives Land compensation Increased monitoring system Environment responsibility

Poor CSR
No employment No concern for indirect effect (land, water, air) Destruction of agricultural land Not willing to listen to other stakeholders Appropriate of land not being compensated Non compliance of rule of land

Company Project:Balco Level 1

Company Project:Balco Hospital Level 2

Company Project:NTPCs Silver Park/DG Level 3

Balco Factory

Silver Park NTPC

NTPC Gender Dev.: Silk