Corporate Social Responsibility LECTURE 26: Corporate Social Responsibility MGT 610 1

Corporate Social Responsibility 2 Chapter 6 Framework For Rating Corporate Social Responsibility

Corporate Social Responsibility 3 LEARNING OBJECTIVES Understand the importance of CSR reporting Create awareness about the various reporting criteria followed to report CSR Understand how conscientious organizations are committed to the concept of CSR Learn from CSR reporting frameworks of various agencies and organization

Corporate Social Responsibility 4 Sustainable Investment Research International (SiRi) The SiRi Group has pioneered the publication of detailed harmonised profiles of the largest global corporations These SiRi Global Profiles are researched according to consistent criteria and in a standardised format using a stakeholder-based model Each Profile contains over 350 data points and associated analysis, providing unrivalled detail and breadth of comment. All major stakeholder issues are covered including community involvement, environmental impact, employment relations, customer policies, human rights issues and corporate governance. For each issue, SiRi describes and analyses the company’s policies, management systems, reporting standards and impacts together with particular strengths and weaknesses

Corporate Social Responsibility 5 Infosys sustainability solutions Infosys focuses on helping clients in 'Building Tomorrow's Enterprise' and 'Sustainable Tomorrow' is central to this strategic market focus. Our Sustainable Tomorrow framework addresses three key dimensions: Social Contract Addresses the need for businesses to be granted an implicit license by key stakeholders to conduct their business in a transparent and a sustainable manner. This enhances brand value and reputation based on real initiatives that make a real impact on environment, social and economic issues

Corporate Social Responsibility 6 Resource Intensity Seeks ways to do more with less, conserving precious natural resources, eliminating waste, reusing/ recycling raw materials and finding suitable substitutes. These include achieving energy efficiency across the enterprise, lowering CO2 emissions to meet emerging regulations as well as lowering cost and improving efficiency Green Innovation Addresses issues around skill sets, innovation and collaboration frameworks, partnerships and alliances, co- creation, research and analytics. Outcomes include building new products and services for the Sustainability market, thereby creating new engines for growth and profits

Corporate Social Responsibility 7 Challenges Complexity and transformative nature of enterprise-wide Sustainability initiatives: Successful Sustainability initiatives demand an intimate understanding of the business, Sustainability goals and metrics to measure success, enterprise data models, enterprise technology architecture and footprint, effective communications, program and change management, and executive sponsorship Skill scarcity: There is a scarcity of experienced Sustainability consultants in the areas of carbon management, Sustainability reporting, green IT, energy efficiency, corporate social responsibility and related areas. Organizational and behavioral change: Most Sustainability initiatives need to percolate deep into organizational processes. This will require significant employee engagement, change management, education and training efforts. Budgets: Organizations need to aggressively make investments in their Sustainability initiatives while constantly driving ways to lower the cost of ownership and establish clear ROI.

Corporate Social Responsibility 8 Opportunities Align Sustainability with the organization’s core strategy and values to ensure that it is a guiding principle in all initiatives. Build your brand and reputation around Sustainability and improve engagement with your employees, customers, investors, suppliers and other stakeholders. Tap new markets, customer segments and revenue streams through innovative new products and services that are inspired by your Sustainability goals. Manage regulatory compliance needs and risks arising from energy and resources price / supply volatility

Corporate Social Responsibility 9 Example: TATA groups CSR rating framework The Tata Index for Sustainable Human Development is a trendsetting attempt to map and measure the social development endeavours of Tata Group companies The Tata Index is a matrix through which Tata companies can implement, direct and measure the social development endeavours they are involved in. Developed by the Tata Council for Community Initiatives (TCCI), the umbrella entity that coordinates and integrates the various social projects undertaken across the group, the Index brings business processes to bear on the development work done by various Tata companies as part of their social responsibility.

Corporate Social Responsibility 10 "This is not some grand thing we are doing," says Anant G. Nadkarni, general manager, Group Corporate Social Responsibility. "We have adopted a business model to drive social responsibility efforts within the group because that way you ensure a huge network. Also, the emphasis on measuring the impact of these programmes is greater now than ever before. The Index will help structure our efforts and quantity their effect on the communities and people they are aimed at.“ The Index is actually a set of guidelines for Tata companies looking to fulfil their social responsibilities, and it is the third set of such guidelines crafted by TCCI. Established in 1996, the Council came out with the first set in A revised version was brought out in The Index is an improvement of the two guidelines that preceded it, and it has been built around the Tata Business Excellence Model (TBEM), an open-ended framework that drives business excellence in Tata companies. Companies that embrace the TBEM concept are evaluated in seven categories, and ranked on the basis of their scores in each.

Corporate Social Responsibility 11 The Tata Index is constructed around the core beliefs of the Tata Group in the matter of corporate social responsibility. These include serving the wider community, protecting the environment, using core competence to help the poor, becoming partners in development, encouraging volunteerism, and pursuing socially sustainable activities. The Index prescribes an 'assurance' process to ensure that the community development projects are measured and reviewed so that they perform in a manner that matches the objectives behind them. This assurance links processes to outcomes and divides the entire corporate social responsibility function into three levels: systems, people and programmes.