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CSR - CER, Prabha. J

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Corporate Social Responsibility (CSR)

&
Corporate Environmental Responsibility (CER)
Corporate Social Responsibility
• Environmental protection is the practice of
protecting the natural environment by
individuals, organizations and governments.

• Its objectives are to conserve natural


resources and the existing natural
environment and, where possible, to repair
damage and reverse trends.
CORPORATE SOCIAL RESPONSIBILITY
• Corporate social responsibility is a concept whereby
companies integrate social and environmental
concerns in their business operations and in their
interaction with the stakeholders on a voluntary
basis.

• CSR is the responsibility of corporations to


contribute to a better society and cleaner
environment.

• India is the first country in the world to make


corporate social responsibility (CSR) mandatory,
following an amendment to The Company Act,
2013 in April 2014.
• Businesses can invest their profits in areas such as
education, poverty, gender equality, and hunger and
environmental protection.

• NEW DELHI: The environment ministry has firmed up


guidelines that will require every corporate seeking
green clearance to set aside up to 2% of its capital
investment for Corporate Environment Responsibility
(CER).

• The guidelines make it mandatory for companies to set


aside funds for CER over and above what is required for
executing the environment management plan in a
project affected area.
CSR IN INDIAN PERSPECTIVE
• The Sachar committee was appointed in 1978 to look into
corporate social responsibility issues concerning Indian
companies.

• The company must behave & function as a responsible


member of society.

• Committee suggests openness in corporate affairs &


behaviour.

• Some business houses have established social institutions


like Schools, colleges, charitable hospitals etc.

• Corporate sectors have not made significant contributions.


(Polluting Environment)
Corporate Environmental Responsibility

Corporate Environmental Responsibility concerns the


environmental aspects of Corporate Social Responsibility (CSR).
It is commonly defined as is the way in which organizations can
incorporate environmental issues into their operations in order
to eliminate waste and emissions, maximize the efficiency and
productivity of its resources and minimize practices that badly
affect the country’s natural resources. It takes all its meaning in
the current context (global warming, destruction of biodiversity,
etc.) and becomes a pillar of development for some
organizations that voluntarily engage. Corporate Environmental
Responsibility is about managing the use natural resources in
the most effective and efficient manner in order to reduce
environmental impacts and financial costs.
ENVIRONMENTAL RESPONSIBILITIES OF CORPORATES
• Areas of Focus :
• Energy Efficiency and Savings
• Waste Management
• Travel and Transportation
• Sustainable Procurement
• Sustainable Events
• Environmental Management Systems
• Use of genetic material & technology transfer.
• Use and handling of genetically modified organisms.
• Greenhouse gas emissions and global warming.
• Soil & water contamination.
• Treatment and reduction of waste water.
• Eco-efficiency.
• Recycling and reuse of materials
• Protection of forest resources.
GREEN STRATEGIES FOR CSR
Green Buildings: The LEED certification by the Green building
Council has caused the growth of green building movement.

• Emphasis on green manufacturing in order to reduce the


emissions of green house gases and environmental pollutions.

• Green products initiatives in order to reduce the toxic chemicals.

• Product stewardship encourages everyone in the value chain to


contribute to product sustainability from producers to regulators
to retailers to consumers thereby achieving zero waste and
sustainable production.
CSR toward energy efficiency, emission reduction
and biodiversity conversation
• Innovation in alternative transportation such as hybrid
vehicles and electric vehicles by companies like Toyota,
Nissan, Honda and Tesla Motors in order to curb the
greenhouse gas emissions and reduce the environmental
hazards.

• Many companies like IBM, Staples and BP are using


Renewable Energy Credits (RECs) and Solar Energy in order
to support the clean energy projects.

• Companies such as Adani, IKEA, The Body Shop are


promoting Biodiversity conservation, sustainable forestry
initiative, organic farming and fair trade in order to balance
the need for both business growth, sustaining and
preserving the depleting natural resources.
CSR TOWARDS SUSTAINABLE WASTE
MANAGEMENT

• Towards the goal of achieving a cleaner


environment, usage of sustainable packaging
materials made of biodegradable plastics
instead of PVC plastics.

• Reducing or making the productive use of


waste in order to achieve the ultimate goal of
zero- waste by emphasizing on recycling.
CSR Trends in India
• FY 2015-16 witnessed a 28 percent growth in
CSR spending in comparison to the previous
year.

• Listed companies in India spent US$1.23


billion (Rs 83.45 billion) in various programs
ranging from educational programs, skill
development, social welfare, healthcare, and
environment conservation.
Corporate Social Responsibility:
examples in india
• TATA GROUP
• The Tata Group in India carries out various CSR projects,
most of which are community improvement and poverty
alleviation programs. Through self-help groups, it is
engaged in women empowerment activities, income
generation, rural community development, and other social
welfare programs.
• Ultratech Cement
• Ultratech Cement, India’s biggest cement company is
involved in social work across 407 villages in the country
aiming to create sustainability and self-reliance. The
company has organized medical camps, immunization
programs, sanitization programs, school enrollment,
plantation drives, water conservation programs, industrial
training, and organic farming programs.
CSR examples in India Contd…
• Mahindra & Mahindra
• Indian automobile manufacturer Mahindra & Mahindra
(M&M) runs programs such as Nanhi Kali focusing on girl
education, Mahindra Pride Schools for industrial training,
and Lifeline xpress for healthcare services in remote
areas .

• ITC Group
• ITC Group focusing on creating sustainable livelihood and
environment protection programs. Their e-Choupal
program, which aims to connect rural farmers through
the internet for procuring agriculture products, covers
40,000 villages and over four million farmers. Its social
and farm forestry program assists farmers in converting
wasteland to pulpwood plantations.

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