2. About Global Compact
Network India
Global Compact Network, India was formed in November 2003 and was
registered as a non-profit society to function as the Indian local network of the
UN Global Compact programme. It is the first local network in the world to be
established with full legal recognition. Global Compact Network India (GCNI)
is a country-level, platform for businesses, civil organisations, public sector and
aids in aligning stakeholders’ practices towards the Ten Universally Accepted
Principles of UNGC in the areas of Human Rights, Labour, Environment and
Anti – Corruption. At present, the India network ranks among the top 3, out of
the 101 local networks in the world, and has emerged as the largest corporate
citizenship and social responsibility organisation in the country with a pan Indian
membership of 162 organisations, who have strengthened their commitment to
the UN’s Global Compact Principles by becoming proud signatories of the local
network, GCNI.
Visit: www.globalcompact.in
4. YEARBOOK2012-13
Global Compact Network India
President’s Message
Dear Members, Colleagues and Patrons,
I, as the President of the Global Compact Network India, am pleased to announce the
publication of the GCN’s YEARBOOK 2012-2013. The Yearbook 2012-2013 provides a
brief peek into the various discussions and learnings that evolved from the engagements
undertaken by GCNI with its members and others through its Monthly Knowledge Sharing
and Networking Meetings.
Global Compact Network India has steadily moved towards creating a high degree of zeal and
enthusiasm among the Indian Business houses and other organisations to address issues of
concerns and deliberate together for innovative action plan on areas that require immediate
and consistent action. Having transformed itself into a platform for sharing, networking and
learning, GCNI has brought together diverse stakeholders and members in India to reflect on
issues of local and global concerns. The dialogues, seminars and various engagement platforms
offered by GCNI has brought together various stakeholders on discussion tables and offered
them an opportunity to interact and network on critical issues. One such platform initiated
by GCNI is the Monthly Knowledge Sharing and Networking Meeting, organised by Global
Compact Network India and hosted voluntarily by the member companies and organisations.
These monthly meetings have been a consistent event in the event calendar of GCNI and has
provided the opportunity to the members to interact with others and demonstrate various
initiatives taken up by them in implementing the Ten Universal Principles and Sustainability.
The year 2012-2013 has been a year where the GCNI along with its member companies
and patrons discussed pertinent issues and led debates and dialogues on some of the most
contemporary issues, at these monthly meetings. This year, we have pushed hard to engage the
various stakeholders; companies, academic institutions and civil society organisations, through
these monthly meetings to discuss sustainability and sustainable practices. The outcomes of
the Rio+20 Conference guided many discussion agendas to apprise the members and others
of the Global Sustainability agenda and the thinking that is taking place around the world.
The deliberations during the monthly meetings covering a range of issues provided significant
insights into sustainability practices and initiatives of organisations, implemented both within
4
its internal working and external engagements. The thought provoking presentations by
member and non-member companies have initiated constructive debates aimed at evolving
solutions and plans for way forward.
This year the monthly meetings brought together major think tanks, academic institutions,
corporate and business houses and civil society, who presented and showcased their initiatives
aimed at addressing the issue around the Ten UNGC principles. It showcased how our
members have embedded sustainability into the heart of their business. The convictions of the
companies and organisations were demonstrated through the innovative practices undertaken
to promote and sustain activities that encourage sustainability in thinking and action. We
believe that these organisations and companies, who have developed sustainable growth
practices and implement these will not only be able to avail positive advantages for themselves
but also have a positive impact on people and the planet.
Through these meetings we have witnessed growing energies and enthusiasm to forge
collaborations, partnerships and alliances to promote and encourage innovative programmes
and activities. I am sure the outcomes of these meetings have served a good purpose of putting
the post 2015 development agenda firmly on the priority lists of the various stakeholders and
has been instrumental in directing the efforts towards aligning the organisational activities of
various organisations, companies and business houses with sustainability.
I gratefully acknowledge the support and appreciate the cooperation extended by the member
companies and organisations for volunteering to host these Monthly Knowledge Sharing
and Networking Meetings and investing their resources and time in bringing together the
members, patrons, well wishers of the Global Compact.
I also take this opportunity in wishing our members, partners, well-wishers and collaborators a
Happy New Year and look forward to a more meaningful engagement in the new year.
Sudhir Vasudeva
President, Global Compact Network India & CMD, ONGC
5. YEARBOOK2012-13
Global Compact Network India
Overview
Monthly Knowledge Sharing & Networking Meeting
Global Compact Network India in one of its kind initiative organises the Monthly Knowledge
Sharing and Networking Meeting each month to bring together various members and
stakeholders on a platform and encourages mutual sharing and learning opportunities. The
programme offers an occasion to the member organisations and others, to present before a
larger community of stakeholders various programmes and projects that are being organised
by them.
Global Compact Network in recognising that organisations have knowledge, which constitutes
a valuable intangible asset for creating and sustaining competitive advantages organises
meetings to create access to information and encourage free flow of ideas. Centred on various
themes of Sustainability, CSR and Social Development process, the meetings are much
sought events of the GCNI and is attended by experts, government officials, business heads,
academicians, non-profit organisations and individuals from across the sectors in India.
While involving people in understanding the issues of critical concern, these meetings also
provide the attendees with the space to demonstrate the work and initiatives taken up by
their organisations in furthering the agenda of Sustainability and CSR. Covering wide range
of relevant issues to businesses, academic institute and civil society, these monthly meetings
contribute to learning by way of information and knowledge exchange. These monthly
meetings enable linking of sectors, professions, learning and so on, and contribute to greater
coordination, coherence and innovation. A catalyst for establishing and fostering partnerships,
these meetings enable networking opportunities to the organisations.
Some of the important objectives of these Monthly Knowledge Sharing and Monthly Meeting are:
•
Promoting and showcasing the initiatives taken up by organisations in adopting the Ten
Universal Principles of the Global Compact
•
•
•
•
•
•
Providing networking opportunity to organisations, thereby facilitating connections
between organisations for a mutually beneficial relationships
Fostering innovations by encouraging sharing of best practices
Encouraging partnerships and networking among organisations for shared learning and
resource sharing
Supporting and promoting efficiency and effectiveness in development cooperation
Capacity building through sharing of expertise and experience
Enabling organisations to develop shared approach towards solutions of developmental
issues
In the last one year, Global Compact Network has organised over 20 monthly meetings
in Delhi, Hyderabad and Mumbai to facilitate the exchange of expertise and experience.
Organised on monthly basis these meetings are hosted by member companies and
organisations who volunteer to bring together the members and others and discuss on
issues of concerns.
Initiating discussion on issues relevant to the Ten Universal Principles of the Global
Compact and the emerging ideas on sustainability, the meetings in the last one year enabled
sharing of best practices and deliberations on issues that require greater attention and focus.
Some of topics that were taken up for discussion include Achieving Business Objectives in
Harmony with People and Planet; Ethics, Transparency and Accountability: Creating a Road
Map to a Sustainable Future; Changing Business Practices for Sustainable Development –
Contribution by Business Schools; Business models on Corporate Social Responsibility;
Child Rights and Business; Responsible Supply Chain, etc. The various themes included
presentations by the Global Compact Network India member companies on their initiatives
to deals with the topic of concern.
5
6. YEARBOOK2012-13
Global Compact Network India
The presentations were followed by deliberations by the participants to arrive at solutions and
make value additions to the existing ideas promoted by the companies.
An important event of the Global Compact Network India, the monthly meetings see steady
participation of members and patrons, who look forward to this mutual sharing and learning
session, making it one of the most sought after event of the Global Compact Network India.
The yearbook 2012-2013 is a unique opportunity to take stock of the deliberation and
presentations that took place during these meetings. The compilation is an outcome of
the discussions and reflections of the participants and industry leaders present during the
6
session. In compiling the yearbook we followed three principle strategies. First, we collated
the presentations made by the companies in showcasing their activities and projects, during
these meetings. These meetings were organised around themes and included thematic
presentations by the companies and were followed by discussions and debates. Second, we
collated the ideas and important thoughts generated at these meetings to compile thematic
chapters for this book. And third, we conducted desk based research on these themes to
supplement the deliberations and presentations made by the participants. Business Leaders
in India are committed to address issues of local and global concern and this yearbook is an
assemblage of the efforts of the Indian companies in carving out new and innovative pathways
to development.
7. YEARBOOK2012-13
Global Compact Network India
Snapshot
S. No.
Theme
Hosts
Presentations by
Date
1
Achieving Business Objectives in Harmony with
People and Planet
GAIL, New Delhi
GAIL and Tata Teleservices
28th February 2012
2
Together, We Empower Rural India
IRRAD, Gurgaon
IRAAD and DLF Foundation
31st January
3
Ethics, Transparency and Accountability:
Creating a Road Map to Sustainable Future
CII, New Delhi
CII and Collective Action Project, GCNI
26th December 2012
4
Changing Business Practices for Sustainable Development –
Contribution by Business Schools
All India Management
Association, New Delhi
All India Management Association and AICTE
30th November 2012
5
Sustainable Development through
Innovative Business Practices
NTPC, New Delhi
NTPC and Lead India
31st October 2012
6
Affirmative Action of India Inc. through Corporate Social
Responsibility
NACDOR, New Delhi
NACDOR, TCS, Safe Water Network and Prof.
Inderdeep Chatrath
28th September 2012
7
CSR/Development Initiatives of PIC and UL
Quality Assurance
Partners in Change,
New Delhi
Partners in Change and UL Quality Assurance
Pvt. Ltd.
31st August 2012
8
Sustainable Development and Rio +20 Summit
JSL – Jindal Stainless Limited,
New Delhi
Jindal Stainless Limited and cKinetics
27th July 2012
9
Abhoy Mission of EPIL and CAIRN’s CSR Initiative
EPIL, New Delhi
EPIL and CAIRN
29th June 2012
10
CSR Initiatives of ArcelorMittal and TARA (Development
Alternatives)
ArcelorMittal,
New Delhi
ArcelorMittal and TARA
(Development Alternatives)
25th May 2012
11
Dealing with CSR issues in MSMEs:
A Cluster Based Approach
Foundation of MSME Cluster,
New Delhi
Foundation of MSME Cluster and Collective
Action Project, GCNI
27th April 2012
12
Recent International Legislation to Address Corporate
Corruption - Issues and Challenges
Tata Consultancy Services Ltd.,
Mumbai
Tata Consultancy Services Ltd. and Collective
Action Project, GCNI
1st December 2011
7
8. YEARBOOK2012-13
Global Compact Network India
S. No.
Theme
Hosts
Presentations by
Date
13
UNGC Principles 7, 8, 9
Hindustan Construction
Company Ltd., Mumbai
Hindustan Construction Company Ltd.
20th February 2012
14
Corporate Social Responsibility and Sustainable
Community Initiatives
JSW Foundation,
Mumbai
JSW Foundation
10th April 2012
15
Developing a Responsible Supply Chain
Mahindra and Mahindra Ltd.,
Mumbai
Mahindra and Mahindra Ltd. and BPCL
30th May 2012
16
Encourage the Development and Diffusion of
Environmentally Friendly Technologies
Bharat Petroleum Corporation
Ltd., Mumbai
Bharat Petroleum Corporation Ltd.
27th June 2012
17
Learnings from Sustainability Initiatives
Tata Power Ltd.,
Mumbai
Tata Power Ltd., Tata Consultancy Services Ltd.
and Tata Chemicals
21st August 2012
18
Fairness in Trade
International Resources for Fairer
Trade, Mumbai
International Resources for Fairer Trade and
Shop for Change
22nd October 2012
19
Developing Leaders of Consequence
Institute of Intellectual Property
Studies (IIPS), SVKM’s NMIMS
University, Mumbai
Institute of Intellectual Property Studies (IIPS),
SVKM’s NMIMS University, Dr. Hedgewar
Hospital and Watershed Management, Shirpur
14th December 2012
20
Innovative Practices of Training for Skill Improvement
NMDC, Hyderabad
Geological Survey of India, Ministry of Mines,
Government of India
20th February 2013
21
Innovative Practices of NMDC Resulting in Successful Land
Acquisition for the Steel Plant
NMDC, Hyderabad
NMDC
4th July 2012
8
12. YEARBOOK2012-13
Global Compact Network India
Achieving Business Objectives in
Harmony with People and Planet
Changing societal expectations are placing new challenges
before business leaders, and are shifting the nature of
relationships between business and society. In the recent
times, there is an increasing realisation to achieve business
objectives in tandem with social and environmental
responsibilities of the organisation. In the past, profits and
loss accounts were seen as the only concerns of business.
This scenario has however witnessed a change in the recent
times, with debates on the responsibility of businesses towards
the environment and the people that they impact. The goal
therefore of businesses is to create strategies that preserve the
long-term viability of People, Plant and Profit, the proverbial
triple bottom line. The ensuing debate therefore is shifting the
focus from just financial gains to a more holistic concept of
the ‘Triple Bottom Line (TBL)’.
The TBL framework incorporates three dimensions of
performance: social, environmental and financial. This
differs from traditional models of operations that were
followed by the companies as it also includes ecological or
environmental and social measures that are being taken by
12
the company to achieve the goals of sustainability. The TBL
dimensions are also commonly called the three Ps: people,
planet and profits. This frame had led to the introduction of
the corporate philosophy to achieve profits in accord with
people and nature. This has led to the promotion of corporate
activities that deliver high quality services and products to the
clients and customers while contributing towards a fruitful
development process and global sustainable environment. In
following this agenda, business firms are placing emphasis
on sustainability, which focusses on economic, social and
environmental performance of the company simultaneously.
A growing majority of organisations are embracing triple
bottom line reporting to demonstrate the harmony between
profit, people and planet, in achieving business and corporate
goals. Socially responsible corporate strategies impact
communities not only today, but also leave lasting impressions
for generations to come.
Two main reasons why businesses are adopting sustainable
business practice are 1) belief among the business
communities that it is a responsible and ethical thing to
do and 2) it provides for a perceived business advantage
in the long run. The rapidly growing group of consumers
is also looking at buying sustainable solutions, which is
now encouraging the businesses to adopt sustainability in
its business operations. Business, demonstrating a high
degree of amicability with the society and environment
at large in its operations is gaining respect and trust of
clients and customers world wide. It is now well known
that sustainability and following sustainable practices can
increase revenue, reduce energy expenses, reduce waste
expenses, reduce materials and water expenses, increase
employee productivity, reduce hiring and attrition expenses,
and reduce strategic and operational risks. This promotes
the companies to look both internally and externally to
understand their environmental and social impacts. This
approach of the companies is not only leading to value
addition within the company by the creation of a ‘green’
strategy aimed towards the natural environment, but also
is promoting considerations regarding every dimension
of how a business operates in the social, cultural, and
economic environment.
13. YEARBOOK2012-13
Initiatives & Impacts
Global Compact Network India
Stakeholder Engagement
Community
• Engage with communities adjacent to facilities, interaction with
village heads, local self-government etc.
• CSR programmes in thrust areas
• Create awareness on pipeline security, disaster & emergency
preparedness
Customers
• Customer Satisfaction Index
• Customer Suggestion Scheme
• Presentation on SD aspects at customer meet
• Responsible Product Pricing
Suppliers
• Business review
meetings
• Bill watch systems
• Development of local
suppliers
• Engagement with
suppliers
Shareholder & Investors
• Interaction on
business issues on
AGMs, investor
meetings etc.
• Share financial
performance, future
business plans
Employees
• Online employee feedback
• Training workshops for
employees on various SD
aspects: ~ 25% covered
• Training to newly joined/
promoted executives
• Specialised training by CII-ITC
• SD Quiz during Hindi
Pakhwada
Government
• MoU with Ministries
• Discussion on various aspects
of business
• Compliance with PNGRB
guidelines, etc.
SD Policy
…commitment to economic, environmental and social
concerns into the core of business process to create value
beyond business.… aim to continue growing in a
sustainable manner to benefit the communities,
environment and stakeholders…
Environment
• Optimising use of natural resource – recycle, reuse
• Eco-friendly technology
• Energy efficiency
• Water conservation
• Waste management
• Biodiversity conservation
• GHG emissions mitigation
• National commitments
• Preference to eco-friendly products & services
Economic
• High quality products/
services
• Practices for customer
satisfaction
• Energy security
• Cleaner sourcesrenewables
• Fair, transparent
& ethical business
relationships
Social
• Concerns of
Communities
• Generating awareness
amongst stakeholder
• Encourage employees –
promote SD initiatives
• Acquiring & nurturing
talent
• Minimising Health
& Safety impacts of
products & services
Committed to allocate adequate resources… integrating
sustainable development in overall business strategy… report on
sustainability performance
Sustainability Initiatives
Water Management
• Project Jaldhara: Complete Watershed
Management at Vijaipur
• Capacity Enhancement of Water Harvesting
Reservoir at Gandhar
• Zero Rain Water Discharge at Samakhiali
• Rainwater Harvesting at RT- Loni and RTMadanpur (JLPL-NCR)
• Behti Dhara: Piped Canal Project at Vijaipur
• Water Footprinting Exercise at Pata
Biodiversity Conservation
• Project Dharohar: Conservation of Native
Plant Species at GPU, Usar
External Charters/Mandates
• United Nations Global Compact
• First Training Organised in India by
UNESCAP & GCN on UNGC & COP
Energy Management
• Burner Management System (BMS):
Retrofitting Natural Gas Fired Forced Draft
Burner at GPU, Vaghodia Reducing NOx &
Better Fuel Efficiency. (Actual overall efficiency
26% increase). First SD Project completed.
• Energy Audit: In-house inter unit committee
comprising of certified energy auditors/
manager of GAIL
• Procurement of star rated electrical equipment
• Investment in renewables
13
14. YEARBOOK2012-13
Global Compact Network India
Together
We Empower Rural India
India is the second most populous country in the world,
with more than half of its population continuing to reside in
the rural areas. In this age of globalisation, where the Indian
metropolitan cities are growing fast to meet the status of
world class cities, majority of the country’s inhabitants live
in the rural areas. The Census of India in 2011, projected a
clear segregation of population residing the urban and rural
areas. The data projected the rural–urban distribution to be as
68.84% and 31.16% respectively. The 66th round of National
Sample Survey conducted in 2009-2010 projects that this huge
mass lives on an average per capita daily expenditure of about
Rs. 35 in rural, as against Rs. 66 in urban India. Faced with
poverty, disease, lack of prospects for growth and prosperity,
and lack of awareness the people in the Indian rural quarters
find themselves disempowered.
14
Empowerment in this context would include:
•
•
•
•
•
•
Building capacity of village level institutions that provides
access to public goods and services
Developing and building infrastructure that promotes
overall well-being
Raising awareness among villagers of their rights and
entitlement, thus building an active citizenry
Increasing the demand for accountable and transparent
village governance
Increasing avenues for livelihood generation and income
augmentation
Developing a batch of trained youths in the villages with
adequate skills and training to explore jobs markets and
opportunities
Such initiatives require partnerships and collaborations
that need to be forged among the Corporates, Civil
Society Organisations, Community and Government.
These partnerships look beyond the traditional corporate
philanthropy or cheque-book philanthropy rather evolves
a process whereby relationships are developed that involves
joint planning, implementation and evaluation. The linkages
intend at developing a naturally beneficial relationship for all
the stakeholders and involve:
•
•
•
•
Knowledge, asset and methodology sharing
Devising customised and contextually relevant solutions
Devising solutions that are replicable and sustainable
Developing ownership among community and other
stakeholders
15. YEARBOOK2012-13
Global Compact Network India
Initiatives & Impacts
Water
Issue: Availability, Quality,
Access and Awareness
Impact: Addressed water issues of
2,50,000 people
Agriculture
Issue: Poor soil health, Unrewarding
agriculture
Impact: Reached 30,000 farmers
Rural Research
Issue: Assesses the impact of
development programmes and
disseminates knowledge
Impact: Documented the impact of
IRRAD’s interventions
• Disseminated knowledge via
publications and conferences
Sanitation
Issue: Unhygienic condition
Impact: Reduced Disease Incidence Rate
by 45%
Village Governance (Demand-side)
Issue: Lack of Awareness
Impact: Governance wave reached
1,50,000 people
Village Governance (Supply-side)
Issue: Poor Public Service Delivery
Impact: Helped 2,50,000 people receive
better public services
Skill Development
250 Training Centers to be established for
training 1 million youth in the fields of
IT, Retail, Marketing, Customer relations,
Hospitality, Electronics and Construction
with an outlay of Rs 200 crores
Nurturing Talent
The scope extends from 6 Std poor
school children to graduation in
professional courses & Business
Management
Schools for the Underprivileged &
Rural Section
Support a total of 63 Schools by opening
new or augmenting the existing schools
for slum dwellers, construction workers
and rural sections of society
Village Cluster Development
Aim is to develop cluster of Villages
by providing integrated healthcare,
sanitation, education, skill training and
infrastructure development.
Food Banking Initiative
In collaboration with International Food
Banking Initiative launched first
Food Bank in the country. Free nutritious
packaged food is being distributed to the
poor and needy.
15
16. YEARBOOK2012-13
Global Compact Network India
Transparency and Accountability:
Creating a Road Map to a Sustainable Future
In the backdrop of rising concerns related
to environment, the demand for sustainable
future is gaining currency rapidly. Multiple
forces are in place to achieve sustainable
future. Among these forces, governments,
citizens, corporate sector, voluntary sector,
and civil society are at the top of the ladder.
However, efforts from these sectors are not
enough. For a sustainable future a bigger
picture has to be taken in account.
The Rio+ 20 conference in 2012 highlighted
that to achieve sustainable development goals
there is a need for institutions at all levels
to be effective, transparent, accountable
and democratic, making transparency and
accountability as the most important pillars
for a sustainable future.
Transparency and accountability at all
levels of government and private sector
become essential for a sustainable future.
Transparency and accountability have
emerged over the past decade as key ways
to address both developmental failures and
democratic deficits. In the development and
16
aid context, the argument is that through
greater accountability, the leaky pipes of
corruption and inefficiency will be repaired,
aid and public spending will be channeled
more effectively and development initiatives
will produce greater and more visible results.
Transparency and accountability in the
administration of companies is synonymous
to success. Secrecy fosters disbelief of
consumers, stakeholders, shareholders, and
citizens at large. However, transparency
eliminates the wall of secrecy built against the
common people by those holding power.
Companies can reinforce accountability
by making sustainability information and
results widely available to the public. Such
initiatives are identified as sustainability
reporting. In the corporate sector, the
concept of corporate sustainability reporting
must be encouraged at all levels to cultivate
greater transparency and accountability.
Integrating sustainability information into the
reporting cycle of companies will bring on
one hand, transparency and accountability,
and on the other hand, a step towards
achieving sustainable development goals.
The corporate sector should also develop
models for best practice and facilitate action
for the integration of sustainability reporting,
taking into account experiences from already
existing frameworks and paying particular
attention to the needs of developing countries,
including for capacity building. Sustainability
reporting, is a mechanism for organisations to
become more sustainable and contribute to a
sustainable global economy. Good corporate
reporting, is hence, based on the principles of
accountability and transparency.
analysis for all its products, it can reveal
its overall impact much better than any
Corporate Responsibility report.
Taking further steps on sustainable reporting,
transparency is greatest when focussed at
product level. Companies must also extend
its reporting and include the impacts of
products throughout their life cycle. Through
this companies can demonstrate transparency
and accountability across the value chain. If
a company produces environmental product
declarations (EPDs) based on life cycle
Consequently, through the methods of
reporting and making company’s operations
more transparent the level of accountability
and transparency could be scaled up which
will not only build consumer’s trust but also
will help nations in achieving sustainable
development goals. Thus, corporate
transparency is a key in prosperous and
sustainable future.
Now consumers and investors are increasingly
aligned in their desire for more sustainable
corporate and organisational behaviour. Most
importantly, they also demand an ‘explanation
for how that behaviour is being put into
practice along with its financial impact. That
alignment will have far reaching impacts –
ranging from the brand, to the reputation,
to the bottom line’. Now companies cannot
escape from the fact that they will be held
answerable for their products and operations.
17. YEARBOOK2012-13
Global Compact Network India
Initiatives Towards Greater Transparency
and Accountability
Ethics, Transparency and
Accountability are core values
for organisations to practice
Good Corporate Governance and
Sustainable Development.
International Standards and Guidelines
Expectation of organisations is to
instill such practices that cover
activities beyond their boundaries and
go into their entire value chain.
Indian Standards and Guidelines
•
•
•
•
•
•
United Nations Global Compact
GRI Guidelines (G3, G3.1, G4)
IFC Sustainability Framework
SEBI Clause 55 on
Corporate Governance
National Voluntary Guidelines on
Responsible Business
DPE Guidelines
Value Chain
Suppliers/Vendors, Raw
Material Providers
Organisation
Customers
Consumers
Some Solutions
• Introduction of new technology which could
serve as a tool in countering corruption such
as Unique Identification (UID) cards
• The importance of Private Member Bill
• Separate judicial system for white collar
frauds for speedy prosecutions
• Need for oversight done by SEBI
• Comprehensive education for people
on guidelines
• Collective action for concerted action
against corruption in India, setting the
right tone at the top level and tuning
individual orientation
• Committed bureaucracy
• Bringing down corruption especially in the
engineering sector
• Need for social audit
• Effective grievance mechanism
• Need for fast track justice system
• The stock exchanges can be instrumental in
implementation of various anti-corruption
policies
• Involving the small scale enterprises
• Every country should tailor made the anticorruption policies as per its maturity level
17
18. YEARBOOK2012-13
Global Compact Network India
Changing Business Practices
for Sustainable Development – Contribution by Business Schools
Sustainable development and the role of
corporate leaders in propelling this idea
are assuming great significance as we
move towards the end of the Millennium
Development Goals. The high level panel
of the UN Secretary General is working
towards developing a set of goals and
targets that are attuned to sustainability and
sustainable practices. For the achievement
of these goals and targets, stress is being
laid on greater partnerships between
government, civil society organisation and
corporate leaders and business houses. In
this context the contributions by educational
institutions in the global discourse on
sustainable development is identified as
an effective means to raise awareness and
facilitate business education for sustainable
development.
In a world where corporate houses hold
great power and business leaders are
important drivers of development policies,
their role in sustainable development cannot
be negated. The scope of their decisions
has social and environmental impacts, and
therefore puts them at the forefront for the
realisation of sustainable development and
calls for their responsibility. Educational
institutes form the training ground for
future business and corporate leaders,
18
therefore their role against this background
assume significance. The World Summit on
Sustainable Development in Johannesburg,
2002 also concluded that education is
essential for Sustainable Development. It
stressed that academic institutions have
an important role to play in shaping the
thinking of individuals and bridging the
gaps in understanding between various
academic, governmental, and nongovernmental entities by providing a vehicle
to encapsulate and disseminate knowledge,
skills, and lessons learned.
Corporate Social Responsibility and
sustainability, while has been a part of
the business world has not been able
to embed itself into the mainstream
education curriculum that develops and
shape the minds of future business leaders.
As institutions of higher education are
involved in the development of current
and future managers, it is important
that these academic bodies take up the
responsibility to develop the capacities
of its students attuned with changing
business environment. Within this
context, PRME calls for business schools
and universities worldwide to gradually
adapt their curricula, research, teaching
methodologies and institutional strategies
to the new business challenges and
opportunities. It is a United Nationssupported initiative whose mission is
to inspire and champion responsible
management education, research and
thought leadership globally. The initiative
embodies a voluntary set of principles.
It is, however, important to note, that
implementing the principles of PRME, the
institutions can start with implementing
those principles, which are more relevant
to the organisations specific value-creating
strategies and capacities and do not need
to have programmes or initiatives that
relate to every principle.
• We will develop the capabilities of
students to be future generators of
sustainable value for business and society
at large and to work for an inclusive and
sustainable global economy.
• We will incorporate into our academic
activities and curricula the values of
global social responsibility as portrayed in
international initiatives such as the United
Nations Global Compact.
• We will create educational frameworks,
materials, processes and environments
that enable effective learning experiences
for responsible leadership.
• We will engage in conceptual and
empirical research that advances our
understanding about the role, dynamics,
and impact of corporations in the creation
of sustainable social, environmental and
economic value.
• We will interact with managers of
business corporations to extend our
knowledge of their challenges in meeting
social and environmental responsibilities
and to explore jointly effective approaches
to meeting these challenges.
• We will facilitate and support dialogue
and debate among educators, students,
business, government, consumers, media,
civil society organisations and other
interested groups and stakeholders on
critical issues related to global social
responsibility and sustainability.
These principles are an effort to ensure that
issues of sustainability and corporate social
responsibility are taken up as topics for
instructions in academic institutions. It serves
as a means to recognise an organisation’s
efforts to incorporate sustainability and
corporate responsibility issues in teaching,
research and internal systems, thereby
ensuring that innovative thinking is
encouraged to implement the agenda
on Corporate Social Responsibility
and Sustainability.
19. YEARBOOK2012-13
Global Compact Network India
Contribution of Business Schools
• The Managerial Values
through management
education need to be
inculcated for achieving
the transformation of
management education for a
sustainable tomorrow.
• The Values such as equity,
accessibility, availability,
affordability, quality,
protection of the ecosystem, the conservation
and restoration of resources
and development of human
and intellectual capital are
eternal for the sustainability
of society in future
• ‘Sustainability in fact should
be essence of Management
Education.’
• Sustainability, broadly
defined, applies to many
disciplines, including
economic development,
environmental and natural
resources management, food
production, energy, and
socio-cultural dimensions
and lifestyles engaged in a
trans-disciplinary mode.
Application in
Management Education
•
•
•
•
•
•
•
Design and development of
curricula to moving forward
with strategies viz;
vision building and advocacy,
Consultation and ownership,
Partnership and networks,
Capacity building and
training,
Research and innovation,
Use of information and
communication technologies,
Monitoring and evaluation to
implement the overall goal of
sustainable development.
Response of
B-Schools in India
• Introduction of Environment
Management, CSR and
Business Ethics in curriculum
of Management Programmes
• Social and Rural
inclusiveness Projects
• Research and Training
initiatives
Response of B-Schools
AIMA: Contribution
•
EFMD’s Globally Responsible Leadership Initiative, which is “to
promote understanding of what constitutes globally responsible
leadership and to develop its practice” (EFMD, 2005, pg. 4).
•
With its 2004 publication of ‘Ethics Education in Business Schools’,
AACSB International began to focus on elevating achievement
in business ethics education, which is broadly defined to include
business and society, ethical leadership and decision-making,
and governance.
As an apex body of
Management in the country,
AIMA is also creating
awareness about responsible
management education. Some
focussed initiatives are as:
•
The Aspen Institute Business and Society Program has, through
a variety of projects, identified and promoted the valiant efforts
of business schools to prepare graduates in the social and
environmental dimensions.
•
Established in 2002, the European Academy of Business in Society
(EABIS) is a unique alliance of companies, business schools, and
academic institutions that, with the support of the European
Commission, is committed to integrating business-in-society
issues into the heart of business theory and practice in Europe.
•
•
•
•
Sustainability Summit
Organised 6th National
Research Conference on
the theme ‘Transforming
Management Education for
Sustainable Tomorrow’ in
collaboration with AICTE
Publication of research
articles in edited book
Contribution of
background research
paper on the theme
‘Accreditation of
Management Education for
Sustainable Development’
in WOSA 2012 by
NBA
19
20. YEARBOOK2012-13
Global Compact Network India
Sustainable Business through
Innovative Business Practices
Sustainable business, or green business, is defined as an enterprise that has minimal
negative impact on the global or local environment, community, society, or economy
and that strives to meet the demands and need of the triple bottom line. Sustainable
businesses are regarded as those businesses, which have progressive environmental and
human rights policies and, which work towards ensuring that these are not compromised
in carrying out internal and external engagements by the company.
In general, business is described as green if it matches the following four criteria:
1. It incorporates principles of sustainability into each of its business decisions.
2. It supplies environment friendly products or services that replace demand for
non-green products and/or services.
3. It is greener than traditional competition.
4. It has made an enduring commitment to environmental principles in its
business operations1.
A sustainable business is any organisation that participates in environment friendly or
green activities to ensure that all processes, products, and manufacturing activities
adequately address current environmental concerns while maintaining a profit. In other
words, it is a business that “meets the needs of the present world without compromising the
ability of the future generations to meet their own needs2.” It is the process through which
organisations and businesses work towards assessing how to design products that will take
advantage of the current environmental situation and how the products will perform with
renewable resources.
Innovation assumes greater relevance in the context of sustainability. Innovation leads to
value creation and differentiate products and services, adding to the market advantage and
increasing prospects in the competitive environment for the company. Innovations that are
aimed at sustenance can provide an incremental advantage to a company, in the competitive
landscape. Research shows that organisational and technological innovations aimed at
sustainability yield returns to the company, environment and people. Becoming environmentfriendly lowers costs because companies end up reducing the inputs they use and increasing
the efficiency by which the inputs are used. In addition, the process generates additional
revenues from better products or enables companies to create new businesses. In fact,
because those are the goals of corporate innovation, we find that smart companies now treat
sustainability as ‘innovation’s new frontier’.
Alignment of business with sustainability confers advantage to the business and it is
important that these advantages are understood, thus paving the way for the adoption of
sustainable business practices. These advantages could be realised through adoption of
innovations which while developing new products shape how resources like energy, carbon,
water and materials are used. It focusses on reducing waste and efficient and judicious
use of key resources. Innovations that are inclined towards sustainability goes beyond
designing green products and packaging rather it entails improving business operations and
processes to become more efficient, with an aim to reduce costs and waste. In conclusion,
innovative business practices work towards providing advantages that enhances the brand
value and image of the company and also contributes towards, environmental and social
responsibilities of the business.
Cooney, S. (2009) ‘Build A Green Small Business. Profitable ways to become an ecopreneur.’
United Nations General Assembly (1987) Report of the World Commission on Environment and Development: Our Common Future. Transmitted to the General Assembly as an Annex to document A/42/427 - Development and
International Co-operation: Environment. Retrieved on: 2009-02-15.
1
2
20
21. YEARBOOK2012-13
Global Compact Network India
Commitment to GC Principles
Human Rights: Principle 1-2
E-VOICE (Employees Voluntary
Organisation for Initiatives in
Community Empowerment)
with numerous programmes on
education, livelihood, health,
advocacy, etc.
Quality Circle
Information and
Communication Technology
(ICT) centers for providing
IT education to physically &
visually challenged students.
Benefited more than 2000
students so far.
Disability Rehabilitation Centers
(DRCs) have provided services
and aids & appliances to more
than 23900 cases till now.
Directly Observed Treatment cum
Designated Microscopy Centre
– registered more than 15100
patients and provided treatment
to more than 2400 patients so far.
Labour Standard: Principle 3-6
• Adopted international
standards like SA-8000 and
OHSAS-18001
• Accreditation for SA 8000
• Participative Forums
- To evolve a sense of
involvement & effective
participation towards
improved efficiency
• Gender Equality – policy
for grant of paternity
leave, Ladies’ clubs/Mahila
Mandals
Education
Health
Vocational Training
Women Empowerment
Infrastructure Development
Infrastructure Development
Environment: Principle 7-9
• Emission Control &
Environment Measurement
Systems Automation
• All stations accredited
for ISO 14001 by reputed
certifying agencies
• Environmental Studies
• More than 19 million trees
till date in and around its
projects as a measure to
take massive afforestation
• Ash Utilisation
• Center for Power Efficiency
and Environmental
Protection (CenPEEP)
• Water Conservation
Anti-Corruption: Principle 10
• Vigilance Department consisting of four units, namely Corporate
Vigilance Cell, Departmental Proceeding Cell (DPC), MIS
Cell, Technical Cell (TC) is headed by Chief Vigilance Officer, a
nominee of the Central Vigilance Commission
• Preventive Vigilance Workshops
• Vigilance Awareness Week
• Fraud Prevention Policy formulated and implemented since 2006
• Signed MoU with Transparency International India in Dec’2008
Infrastructure Development
Water
21
22. YEARBOOK2012-13
Global Compact Network India
Developing a Responsible Supply Chain
A supply chain is a system of organisations, people, activities, information, and resources
involved in moving a product or service from supplier to customer. Supply chain activities
transform natural resources, raw materials, and components into a finished product that
is delivered to the end customer. In the recent times, there is an increasing realisation
that business needs to be as sustainable as the supply chain. As awareness of corporate
social responsibility grows, businesses have come to realise that their supply chain and its
management can say a lot about the kind of company they are and the values they hold.
Corporates world over are now turning towards ensuring that issues like environment, human
rights, corruption and labour standards are addressed not only within the corporation but also
outside in its supply chain.
‘Supply Chain Sustainability’, in this context, is defined as management of the environmental,
social, governance and economic impacts throughout the life cycle of the asset. It aims
to create, protect and grow long term value for all stakeholders involved in bringing the
product or service to market and enhance the product responsibility from the conventional
‘design to delivery’ to the emerging ‘Cradle to Grave’ approach. Integrating sustainability
into supply chain ensures that companies achieve better brand image and financial benefits
in the market. Supply chain of an organisation has a far greater impact on the environment
than any other part of its operations. While most corporates work towards delivering and
producing sustainable products, it is also necessary that focus be placed on issues like
procurement of raw material, distribution, transportation etc., which is provided for by the
supply chain.
22
Building a sustainable and responsible supply chain involves realisation that today’s business
actions will impact tomorrow’s environment. It involves instituting sustainability within a
corporation by educating the organisation on sustainability and by educating the employees
about the benefits of sustainability and what it can do for a company and environment. It also
involves developing goals that are specific, measurable, attainable, relevant, and timely and that
they are focussed on sustainability. Developing a socially responsible supply chain involves
increasing engagement with the suppliers and ensuring that those involved in the supply
chain understand the value of green and sustainable business. Partnership and collaborations
with suppliers, in this context, is important for improvement in the supply chain and for
meeting the rising customer expectations regarding the compliance to responsible supply
chain practices. Working directly with the suppliers in the supply chain enables companies
maintain and uphold social and environmental standards throughout their procurement
process. It supports the suppliers to improve their CSR performance, while enabling corporate
and business houses to increase their own efficiency. By integrating CSR standards in the
procurement procedures, companies can maintain good reputation and make difference for the
communities in which their suppliers are active.
The key to becoming sustainable is to develop a culture of sustainability within the organisation,
educating the employees, auditing supply chain processes, developing goals and objectives,
implementing projects to meet goals, measure your company’s progress towards sustainability and
benchmark other sustainability initiatives. It is also important that in doing so a supportive rather
than a punitive approach is adopted to implement sustainable practices within the supply chain.
23. YEARBOOK2012-13
Global Compact Network India
Initiatives & Impacts
Assisting suppliers to deal with Hazardous
Waste – Good Practice I
Ground Work
Detailed questionnaire was distributed among
suppliers to understand:
• Current processes
• Environmental challenges
• Awareness about the hazards of
irresponsible waste disposal etc.
Prioritisation
Suppliers were categorised as
1. Having hazardous waste with
– no EMS/OSHAS
– with EMS & OSHAS
2. No hazardous waste with
– no EMS/OSHAS
– with EMS/OSHAS
• Suppliers under 1 were prioritised for the
programme
Awareness
About:
• Environment
• EHS
• Responsible Business Practices
• Green Supply Chain etc…
Specific guidance document created
Sharing of GSM policies
Lessons learned
• Initial awareness helps
buy-in
• A supportive and not
punitive approach works
• Need to be sensitive to
financial and non-financial
constraints
• A marked improvement in
supplier relationship
Impact
• Tier–I suppliers are getting
themselves EMS/OSHAS
certified
• New environment friendly
concepts are getting adopted
• Voluntary adoption of
re-usable packaging material.
• Some rural suppliers
achieved 100% legal
compliance for the first time
• Some suppliers have joined
hands with us in our tree
plantation drive
• Some big tier–I suppliers
are now open to undertake
similar initiatives with their
supply chains
Upgrading Supplier competencies
– Good Practice II
• The Mahindra Yellow Belt (MYB)
QC was introduced to solve chronic
quality problems
• Process followed: ‘Awareness and
capacity building for enabling
suppliers to build a Sustainable
enterprise’
• 3 Business Partners showed keen
interest in implementing this
methodology in their respective
organisation
• 15 Participants participated for the
MYB – Business Partners Training
Program – followed by an objective
test, and thereafter apply the learning
in a Project Problem selected by
them and approved by Mahindra &
Mahindra
Need for SCO- BPC recognised the
need for a significant transformation
SCO
• Conflict of objectives
• Corporate v/s SBUs
• Challenges of ‘Deregulated’ Regime
• Reap potential benefits from
performance improvements
Six Core Supply Chain Processes
• Demand Management for product
placement
• Consensus Planning
• 3 Months Rolling
• Periodic Review
Crude Purchases
• Term/Spot/New
Refinery Processing
• Crude Processing
• Production Plan
• Review
Product Acquisition
• OMC Exchanges
• Direct Purchases
• Imports
Product Distribution
• Optimal Plan
• Review
Inventory Management
• Norms Setting
• Regular Review
23
24. YEARBOOK2012-13
Global Compact Network India
Rio +20 Conference
The Rio+20 Conference on ‘Sustainable
Development’ in Rio de Janeiro, Brazil in
June 2012 was the biggest UN conference
ever that brought together heads of
states, civil society organisations and
business leaders on a common platform
to deliberate on issues of sustainability
and sustainable practices. It was a major
step forward in achieving a sustainable
future – ‘the future we want’. The Rio+20
Conference, also known as Conference
on Sustainable Development (UNCSD),
also known as Rio 2012 or Earth
Summit 2012 was the third international
conference on sustainable development,
aimed at reconciling the economic, social
and environmental goals of the global
community. Hosted by Brazil in the city
of Rio de Janeiro from 13th to 22nd June
2012, the Rio+20 Conference was the
20-year follow-up event to the 1992 Earth
Summit/United Nations Conference on
Environment and Development(UNCED)
held in the same city, and marked the 10th
anniversary of the 2002 World Summit
on Sustainable Development (WSSD)
in Johannesburg. The ten day megasummit, which culminated in a three-day
high-level UN conference, was organised
by the United Nations Department of
Economic and Social Affairs and included
participation from 192 UN member
states — including 57 Heads of State and
31 Heads of Government, private sector
companies, NGOs and other groups.
The Conference aimed at securing renewed
political commitment for sustainable
development, assessing the progress to date
and the remaining gaps and opportunities
in the implementation of the outcomes
of the major summits on sustainable
development, and addressing new and
emerging challenges.
Some Voices
“Energy is a 100% problem!
Not a 20-30% problem”– Microsoft
24
“Ewaste is the biggest emerging
challenge”– GEF, World Bank, UNIDO
“Earlier value of nature was set at zero. With 9 billion people by 2050, need to optimise
the resource management of the planet”, UNEP Chief
25. YEARBOOK2012-13
Global Compact Network India
The Conference focussed on two major
themes:
•
•
A green economy in the context of
sustainable development and poverty
eradication; and
The institutional framework for
sustainable development.
The discussions at the Conference centered
around had two main themes:
1. How to build a green economy to achieve
sustainable development and lift people
out of poverty, including support for
developing countries that will allow them
to find a green path for development.
2. How to improve international
coordination for sustainable
development by building an
institutional framework.
Billed as the biggest UN event ever organised,
the 10 day mega-conference was intended
to be a high-level international gathering
organised to re-direct and renew global
political commitment to the three dimensions
of sustainable development: Economic
Growth, Social Improvement, Environmental
Protection; focussing on reducing poverty
while promoting job growth, clean energy
and more fair, sustainable uses of resources;
the goals first established at Earth Summit in
1992.
Working towards securing affirmations
for the political commitments made in
the past Earth Summits, the Conference
aimed at developing consensus and building
endorsement for a UN ‘green economy
roadmap,’ with environmental goals, targets
and deadlines.
The primary result of the conference was
the non-binding document, ‘The Future
We Want,’ a 49 page working paper. The
document largely reaffirms previous action
plans like Agenda 21. As a part of the
outcome document, the member States
agreed that sustainable development goals
(SDGs) must respect all the Rio Principles, be
consistent with international law, build upon
commitments already made, contribute to
the full implementation of the outcomes of all
major summits in the economic, social and
environmental fields, address and incorporate
in a balanced way all three dimensions of
sustainable development and their interlinkages and include active involvement of
all relevant stakeholders, as appropriate, in
the process.
How it was structured
Diplomatic engagement for negotiations
Major Groups discussions
Events
June, 13-15
Diplomats finish their negotiations
June, 16-19
Sustainable Development Dialogues on
10 themes, the summaries of which to be
presented to heads of government and
state
June, 20-22
Heads of Government and state meet
and sign up a new agreement
June, 15-18
Rio+20 Corporate Sustainability Forum:
Innovation & Collaboration for the
Future We Want by UNGC
June, 18
Business Action For Sustainable
Development
June, 18-20
Major Group discussions
June, 8-22
Civil Society
Corporate Sustainability Forum
Themes
•
•
•
•
•
•
Energy & Climate
Water & Ecosystems
Agriculture & Food
Social Development
Urbanisation & Cities
Economics & Finance of
Sustainable Development
Rio+20: Bone of Contentions
Green economy – a new concept
Equity principles – CBDR
Rio+20 Outcome Document
It has 53 pages with 283 paragraphs,
grouped into six main sections:
• Our common vision
• Renewing political commitments
• Green economy in the context
of sustainable development and
poverty eradication
• Institutional framework for
sustainable development
• Framework for action and follow-up
(26 thematic areas)
• Means of Implementation
Some Voices
“Not enough green electron. Need for governance to balance loads and make green
electrons used at night” – Microsoft
v
“Sustainability not Sustainable without board level engagement. CEO can’t be
champion alone” – Calvert
25
26. YEARBOOK2012-13
Global Compact Network India
A Cluster Approach
Dealing with CSR Issues in MSMEs
Micro, Small & Medium Enterprises
(MSMEs) in India represent those
manufacturing and service ventures where
the Investment in Plant & Machinery and
Investment in Equipment does not exceed Rs.
10 crores. These MSMEs represent the model
of socio-economic policies of Government,
which emphasise on greater job creation,
diffusion of economic power for discouraging
monopolistic practices of production and
marketing by large enterprises; and in all
prospects contributing to the growth of
economy with less investment and low
import-intensive operations.
MSMEs also play a significant role in
the nation’s development through high
contribution to Domestic Production,
Significant Export Earnings, Low
Investment Requirements, Operational
Flexibility, Location Wise Mobility, Low
Intensive Imports, Capacities to Develop
Appropriate Indigenous Technology,
Import Substitution, Contribution towards
Defense Production, Technology – Oriented
Industries, Competitiveness in Domestic
and Export Markets thereby generating new
3
entrepreneurs by providing knowledge and
training. They contribute significantly to value
addition, employment generation, exports
and overall growth and development of the
country. In India, MSMEs play an important
role in the overall industrial development and
progress of the country’s economy. Data on
performance of the MSME sector demonstrate
a consistently high growth rate. This agile and
dynamic sector has shown innovativeness
and adaptability to the changing economic
situations and has survived the economic
downturn and recession.
These enterprises, while generating
opportunities in the economy, also face
challenges that obstruct their growth.
They face hindrances that obstructs them
from achieving economies of scale, lack of
negotiating power, difficulty in achieving
specialisation and have limited access to
credit. The CLUSTER approach is based
on the argument that rather than size it is
the relative isolation of these enterprises
that hinders growth of these organisations.
Cluster development approach focusses
on reducing this relative isolation faced
by MSMEs by strengthening the linkages
among the MSMEs, large enterprises, support
institutions located within a geographical
belt to initiate coordination of action and
pool resources for achieving common
development goal. An MSME cluster is a
sectoral and geographical concentration
of micro, small and medium enterprises
producing a similar range of goods or services
and facing similar threats and opportunities.
This cluster approach is also instrumental in
facilitating efforts towards meeting the social
responsibilities of the MSMEs. The MSMEs
while adding to the economic growth and
also financial wealth of a country also has
a significant bearing on the societal and
environmental issues. Some of the social
issues that plague the sector are child labour,
poor working conditions, health and safety
measures, low wages and unorganised/
contractual labour. These enterprises also
contribute significantly to problems of air
pollution, solid waste disposal, consumption
of fossil fuel and water pollution. This leads to
increasing demands from the MSMEs to meet
their responsibilities. This engagement and
response to meet the social and environmental
demands investments with regard to time and
finances and is a difficult task for single MSME
to take up given the size of their operations.
Within this context the cluster approach offers
the MSMEs an opportunity to meet these
responsibilities by pooling in expertise and
resources for a common cause. The cluster
approach to CSR is based on the approach
that CSR strategies and goals are developed
together by a Cluster of organisations rather
than by an enterprise. ‘In other words, the
traditional approach to CSR at the local
level among SMEs proposes the promotion
of sustainability management within the
productive system, while ‘cluster’ approach
promotes CSR of the productive system’3.
Such approach would enable the enterprises to
maintain competitive positions in the market
and enable ensuring regulatory compliance with
regard to adopting CSR practices. This promotes
the engagement of the enterprise owners and the
workers, thereby ensuring shared responsibility
by the people at the top management and those
placed at the bottom of the organisational
hierarchy in these organisations.
Massimo Battaglia, Lara Bianchi, Marco Frey and Fabio Iraldo; 17 March (2010). ‘An Innovative Model to Promote CSR among SMEs Operating in Industrial Clusters: Evidence from an EU Project’. Retrieved on: 23rd December, 2013
26
27. YEARBOOK2012-13
Global Compact Network India
Cluster Development Approach
POLICY ENVIRONMENT
Commercial Service Providers
(Designer, Testing Laboratory, Transporter, Import Agents, Fabricator Financier)
Production System
Backward
linkages
Firm
Forward
Linkages
Firm
Firm
Raw Material
Suppliers
Firm
Firm
Labour/
Contractors
Machinery
Suppliers Fabricators
Firm
Selling
Agents
Firm
Firm
Direct
Consumers
(Public & Private) Support and Service Institution, Industry Associations, Skill Development Agencies
SOCIAL ENVIRONMENT
A multiplicity of internal relationships co-exist in a cluster
Some interventions by foundation
Cluster
Sub Sector
Significant driver
Typology of action
Actions
Scale
Samalkha, Faridabad, Kaithal
Foundry
Development Agency
Internal Conditions
Energy efficiency, Health, Working Conditions
Approx-40 lacs (50:50)
Jallandhar
Sports Goods
Market
Internal and External both
Education, Self Help Groups, Health
Approx-5 00 Lacs (60:40)
Rourkela
Light Engineering
Regulatory Pressure
External
Health
Approx-40 lacs (100:0)
Trichi
Light Engineering
Market
Internal
Health, Working Conditions
20 Lacs (50:50)
27
28. YEARBOOK2012-13
Global Compact Network India
Corporate Social
Responsibility
Globally, almost a decade ago, advancement in
multiple directions of development changed
the paradigm of corporate social responsibility.
In the year 2000, United Nations came up with
the Millennium Development Goals (MDGs)
and pressed developing nations to implement
them strongly. Simultaneously, in the same
year United Nations Global Compact (UNGC)
was established to strengthen the process
of Corporate Social Responsibility (CSR).
Former development brought NGOs, civil
society, governments, and other international
development organisations together to join
hands to work for the development of society
and latter brought the corporate sector to
divert a small amount of their profit to the
social sector.
The term CSR is often understood wrongly by
many companies. Companies often believe that
CSR is essentially a government responsibility.
This is principally known as old school of
thought. The old school of thought promulgate
that business and social development are
two different facets moving in the opposite
directions. Companies tend to believe that
business and social development is the
28
government’s responsibility. Thus, companies
should focus only on business expansion and
profit and let government and development
institutes take care of social development.
However, a closer understanding of CSR
reveals that business and social development
are in fact complementary to each other.
No business can thrive in a society which
is unstable and not prospering. It is now
strongly believed that what is good for society
will always be good for business. This may not
be true otherwise. There are glaring examples
of many companies, which have infused trust
in the society through their generous social
development work. As a result, the products
of such companies are generally favoured
by society without hesitation. Studies have
revealed that products good for society,
environment, and health are always preferred
by consumers even if they are slightly
more expensive.
The new opinion on CSR stresses that it is
the continuing commitment of businesses
to behave ethically and contribute to the
economic development, while improving
the quality of life of the workforce and their
families as well as of the local community and
society at large.
flourish only in a stable environment. The
realisation should come from within.
There should be attempts to infuse the concept
of CSR in the culture and operations of
companies to make them more responsible
towards the weakest sections of the society. This
is in fact the biggest challenge. The resistance
against CSR will come from the companies
which do not understand CSR properly. The
companies, while earning, do not realise that
they cannot go on earning profits without
giving back to society (that the company would
not survive if they follow only profit motive).
They have to understand that business can
Over the last few years, an increasing number
of companies worldwide have started
promoting their business CSR strategies
because the customers, the public and the
investors expect them to act as sustainable
and responsible economic actors. CSR is
good for financial sustainability, and provides
good business proposition. CSR unlocks
the business potential of a company. Once
companies understand that CSR helps them
to earn more profit companies, society and
nation will all florish together.
29. YEARBOOK2012-13
Global Compact Network India
Thematic Areas & Impacts
Education and Skill Development
Human Rights
Labour
Integrated Health Care
• Linking vulnerable children to
formal schools
• Support to formal education
• Education of differently abled
• Corporate and GoI partnership
model for skill training
• Innovative programmes like theatre
in education, science playground
• Developing appropriate
infrastructure to provide skilled
teachers, books and learning aids
• Human Rights Policy and a guidance
manual put in place, 100% employees
trained on the policy
• Human Rights Impact Assessment
• Community Engagement
• External Stakeholder Engagement
• Special Tribal Development Initiative
for Indigenous People
• Risk Identification and Sensitisation
of Suppliers
• Feedback and Grievance Redressal
Mechanism for Community
Stakeholders
• Human Resources Manual
• Freedom of association and collective
bargaining arrangements
• No forced/compulsory labour
• No Child Labour
• Non-discrimination
• Feedback and Grievance Redressal
Mechanism for all Employees
• Inspection of Contractors
• Collaborate with Govt. of Jharkhand
to promote abolition of child labour
• Linking vulnerable children to formal
schools
• Mobiles and Specialist Camps
• Drug Rehabilitation
• Malaria and TB/Respiratory Disease
Intervention
• HIV and AIDs Awareness
• Save the Girl Child
• Access to Health Care – CHC/Other
Government Institutions/Dental Care
etc., Health Schemes and Plans
• Encouraging Health Seeking
Behaviour
Environment
Anti-corruption
Community Development
Infrastructure Development
Deploying
Environmentally
friendly technology
Mandatory training for all employees
on anti-corruption; 100% employees
covered. Transparency through
sustainability reporting
Safe Drinking Water and Sanitation
Rural Electrification and Biogas
Developing roads, housing and toilets,
water tanks, community hall, schools
and water harvesting structures,
upgradation of hospitals
Women
Empowerment
Skills
Development and
Entrepreneurship
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30. YEARBOOK2012-13
Global Compact Network India
Encourage the Development and Diffusion of
Environment
Friendly Technologies
Environment friendly technology is a rapidly growing field that focusses on new scientific
and technical methods that benefit the earth and protect the environment. Also called Green
technologies, these technologies involve invention, improvement and scientific development
that have a positive impact on the ecosystem. While having a global ecological impact,
it improves the manner in which people perform daily tasks thereby making individual
contributions towards a better ecosystem.
Dissemination and diffusion of such technologies assume great significance in the context of
our fragile environment, as these technologies being environment friendly are sustainable,
produce as little waste and pollution as possible, and utilise the recycled and reuse of
materials whenever possible. The use of these technologies allows improvement in economic
performance while minimising harm to the environment, increase efficiency in the use of
material and energy sources, develop and improve products and processes that are cleaner and
leads to activities that increase awareness about the need for environmental protection and
promotion of sustainable development by the general public.
30
Fairness in Trade
Fair trade is an organised social movement that aims to help producers in developing
countries to make better trading conditions and promote sustainability. Fair trade, by
facilitating trading partnerships based on equity and transparency, seeks to transform trading
structures and practices in favour of the poor and disadvantaged. It aims to contribute to the
sustainable development of marginalised producers, workers and their communities. Through
demonstration of alternatives to conventional trade fair trade empowers citizens to campaign
for an international trade system based on justice and fairness.
Fair trade involves embedding such practices in business, which promotes, encourages, and
monitors social and ethical aspects of business. Some tools that could be used to ensure this is
by the implementation of codes of conduct at the workplace in the entire supply chain. These
include Social Compliance Monitoring, Social Compliance Training and Capacity Building
of Workforce and Management Entity, Continuous Improvement Monitoring, Supply Chain
Partnership Projects and Research.
While it is important that ideas of fair trade are embedded into organisation and its
functioning, it is also important to build a cadre of informed customers who understand
the significance and consequences of fair trade. Use of promotional campaigns, online
marketing and media coverage could enable the building of a network of informed
consumers who understand fair trade and this help grow the market for Fair Trade certified
goods. The strategies could include an in-depth media advocacy programme, events for
industry and consumers, programmes on campuses, social networking sites aimed at young
shoppers, celebrity endorsements and strategic alliances with NGOs to spread the word across
the country.
31. YEARBOOK2012-13
Global Compact Network India
Affirmative Action of India Inc through
Corporate Social Responsibility
India is a land of contradictions. Modern and traditional systems and structure co-exist with
each other, which often is not in harmony. This unique social predicament poses challenge to
the inclusive growth process in India and impacts the overall competitiveness of the Indian
economy and limits the prospects of growth. This distinctive feature of contradictions within
the India society is witnessed in the paradoxical nature of development and progress in India.
While GDP is rising and making India one of the top competing nations in the world, with
regard to economic development, a bulk of its population remains below the poverty line.
While we see industries growing ten folds and creating new job opportunities for thousands
of Indians, many still are facing poverty and unemployment. While the Indian government
through its welfare programme is trying to reach out to thousands, many still find themselves
un-reached by it. A bulk of the Indian population is becoming poorer and is starving, inspite of
the development policies framed by the Indian government.
In this scenario, the marginalised group with least access to opportunities and incentives
offered by the state find themselves in an even more disadvantaged spot. In this context
affirmative action assumes great importance in providing and facilitating development
and progression of this marginalised section. Affirmative action is used to signify positive
discrimination in favour of the groups that stand at the end of the receiving line. This
discrimination does not imply taking away opportunities from others rather creating new
opportunities for those who have been deprived. The reservation system, in India is an
example of a policy framework designed to increase the opportunities for enhanced social
and educational status of the underprivileged communities and, thus, enable them take their
rightful place in the mainstream Indian society. The programme designed under this system is
targeted to bring these groups into the mainstream and also to compensate them for centuries
of discrimination and exclusion practiced on them. Despite such policies much ground still
needs to be covered to bring these sections into the mainstream.
Attempts, therefore, are being made to develop an alternate programme of affirmative action
that looks beyond reservations and politics of reservations. Affirmative action in this context
implies efforts to mainstream and integrate marginalised communities into mainstream
economic activities through concerted efforts made by the government and the companies.
It implies creation of opportunities that these sections have been traditionally deprived
of through policies that are based on the premise of positive discrimination. It calls for
channels to be provided to enable greater economic participation, through capacity building
and talent upscaling.
Indian industries in this scenario, assume greater role to facilitate inclusion through their
policies on employment and transparency. The CII, Confederation of Indian Industry, one
of the important industry associations in India, has devised a code of conduct to be followed
by the companies, with regard to affirmative action. The Code relates to non-discrimination,
assistance and transparency with respect to employees/ applicants/ vendors from the
marginalised communities and works on the policy of voluntary commitment. FICCI, the
Federation Indian Chambers of Commerce and Industry, devised a multi-layered affirmative
action agenda to trigger a process of genuine socioeconomic development amongst the
disadvantaged sections of the society.
Even with such pro-active agendas and plans being devised by some of the most important
industry associations a lot remains to be desired.
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Global Compact Network India
Acknowledgements
We would like to extend our heartfelt appreciation to our host companies for volunteering to hold monthly meetings in Delhi, Mumbai and Hyderabad
International Resources for Fairer Trade
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33. YEARBOOK2012-13
Global Compact Network India
We would like to thank our speakers for their insightful presentations and thoughts.
Mr. Santanu Roy, GAIL (India) Limited
Ms. Jyoti Sethi, Tata Teleservices Limited
Lt. General Rajendra Singh, DLF Foundation
Ms. Pooja Murada, IRRAD
Ms. Bhawna Luthra, LEAD India
Mr. Shikhar Jain, CII
Prof. Rihan Khan Suri, Jamia Milia Islamia
Prof. Raj Agrawal, AIMA
Mr. D.K. Patankar, NTPC Limited
Mr. Ashok Bharti, NACDOR
Dr. Joy Deshmukh, Tata Consultancy Services
Prof. Inderdeep Chatrath, Duke University, USA
Ms. Laura Donovan, Partners in Change
Ms. Dona John, UL Quality Assurance Pvt. Limited
Brig. Rajiv Williams, Jindal Stainless Limited
Mr. Khurram Naayaab, CAIRN India
Mr. Sudhir Kumar Sinha, ArcelorMittal
Mr. A.K. Sakalkar, BPCL
Ms. Beroz Gazdar, Mahindra and Mahindra
Ms. Aparna Khandelwal, cKinetics
Mr. Suresh Rao, Tata Power
Mr. S. Chandran, TCS
Dr. Manoj Chaturvedi, HCC
Mr. Paresh Tewary, JSW Foundation
Mr. Mukund Gorakshkar, JSW Foundation
Mr. Aniruddha Agnihotri, TCS
Ms. Sunanda Jain, TARA (Development
Alternatives)
Mr. U.S. Pandey, BPCL
Mr. D.K. Gokak, BPCL
Mr. Madhu KM, BPCL
Mr. Prashant Kokil, BPCL
Mr. Y.K. Saxena, Tata Power
Mrs. Gaynor Pais, International Resources for
Fairer Trade
Mrs. Arindama Banerjee, Wankhede International
Resources for Fairer Trade
Mr. Seth Petchers, Shop for Change
Dr. Sujata Mukherjee, NMIMS
Dr. Meena Galliara, Director, Centre for
Sustainability Management and Social
Entrepreneurship, NMIMS
Dr. Anant Pandhare, Dr. Hedgewar Hospital
Mr. Khanapurkar, Watershed Management, Shirpur
Mr. R. Shankar, Dr Reddys Lab
Mr. P. Shyam, NMDC
Mr. Chandan Dutta, NMDC
Dr. S.Vadivel, GSI
Mr. Rajan Kumar, NMDC
Mr. Vijay Kiran Ravala, GCNI (CAP)
Ms. Jot Prakash Kaur, GCNI (CAP)
We would like to acknowledge the leaders and experts for their continued
support and co-operation
Dr. S.P.S. Bakshi, Chairman-cum-Managing Director, Engineering Projects
(India) Limited
Mr. N.K. Nanda, Director (Technical), NMDC
Dr. S.S. Mantha, Chairman, AICTE
Mr. Kurt Soderlund, CEO, Safe Water Network
Ms. Jane E. Schukoske, CEO, IRRAD
Mr. N.K. Sharma, Executive Director, R&R/Safety/CSR, NTPC
Mr. Mukesh Gulati, Executive Director, Foundation of MSME Cluster
Ms. Rekha Sethi, Director General, AIMA
Ms. Seema Arora, Executive Director, CII
Dr. Debashis Sanyal, Dean, School of Business Management - NMIMS
33
36. YEARBOOK2012-13
Global Compact Network India
Global Compact Network India Office
Scope Complex, Core 5
6th Floor (ONGC Office)
7 Institutional Area
Lodhi Road, New Delhi
Email: gcnindia@gmail.com
www.globalcompact.in
Disclaimer: This publication is intended strictly for learning purposes. The inclusion of company names and/or examples does not constitute an endorsement of the individual companies by the
Global Compact Network India Office. The material in this publication may be quoted and used provided there is proper attribution.
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