Csr & competitiveness sept 2013 by CSR & COMPETITVENESS

www.csrcompetitiveness.com Vol.1 I Issue -3 I September 2013

Dear Readers, Indian Economy has started graduating to new era of transition under the visionary leadership of the new RBI Governor who has been taking radical measures to check the falling Rupee and the plummeting sensex. The recent move of the government to allow the Unlisted Companies of India to raise capital from foreign markets and getting listed in the foreign capital markets is a commendable move of the government which will go a long way in enhancing the domestic and global competitiveness of the Indian unlisted companies. It is high time for the small and medium size companies to plan for raising capital from international markets and to get listed in the international capital markets. This will be a quantum leap towards gaining and sustaining global competitiveness. The Ministry of Finance has been taking series of proactive measures and steps to strengthen the economy and the corporate sector. Till the recent initiative of the Ministry of Finance, the Indian companies were not permitted to get listed on foreign capital markets until they are listed in the Indian Stock Exchange. The recent move of the Ministry of Finance has given new rays of hope to companies which can raise money from the international markets and get listed in a foreign stock exchange without having any compulsion to get the securities previously or simultaneously listed in the domestic markets.

Rusen Kumar Editor & Director

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The recent legislation promulgated by India has made it the pioneering nation to have CSR spending as a statutory provision. In the light of recent developments, BSE has been proactively dynamic to evolve CSR Index in collaboration with IICA with a passion to raise the level of awareness and accountability.

The recently concluded two-day AFC-AFDP Dream Asia CSR seminar, led to an enhanced understanding of opportunity in the area of sports and football in particular. The corporate world may consider the opportunity in the area of sports as their focus in their CSR and Social initiatives. This will further the cause of sports, CSR and will give a catalytic boost to the sporting spirit of the current and future sportspersons. This may also facilitate in enhancing the probability of winning more and more Olympic Medals. FICCI and AIFF are proposing to include sports as a part of the 10 listed areas which fall under the purview of such investments by the corporate.

The Award received by Wockhardt Foundation’s CEO, Dr. Huzaifa Khorakiwala in the recently concluded ASIAN CSR Leadership Awards at Dubai in the light of their innovative CSR project which has embarked on a path-breaking ambitious social growth programme of providing free, primary healthcare to the rural and remote parts of India through its “Mobile 1000” initiative. Today “Mobile 1000” has a Pan-India presence operating in 11 states of India. This shall act as a source of inspiration for the various stakeholders in the area of CSR. I take this opportunity to congratulate Mr. Pilot who has been sincerely batting for tax breaks on CSR Spends. The corporate affairs ministry has sincerely backed the backed the idea of providing tax breaks for companies spending on corporate social responsibility (CSR) initiatives. This development will infuse the desired level of motivation among the CSR stakeholders from the corporate world. Indian Prime Minister in his recent visit to US has led to emergence of new hopes. The Indian PM has explored new vistas of mutual interests between developed and developing nations thereby raising new hopes for accomplishing global competitiveness for Indian Corporates. The Indian Corporates must start evolving and revolving around their CSR strategies as it shall help them in ensuring enhanced compliance in the changed business environment. The recent legislation promulgated by India has made it the pioneering nation to have CSR spending as a statutory provision. In the light of recent developments, BSE has been proactively dynamic to evolve CSR Index in collaboration with IICA with a passion to raise the level of awareness and accountability. The success of the corporate world shall be hinging on meticulous planning and thoughtful implementation of CSR Strategies making the organisation and its products and services globally competitive simultaneously contributing to the social and economic health of the economy.

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Editorial and Advisory Board Rusen Kumar Editor Dr (Prof.) Rana Singh Executive Editor ranasingh@indiacsr.in Anil Jaggi Executive Editor anil@indiacsr.in

Vijay Kapur Eminent CSR Consultant & Author Director – Kohana CSR

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Enakshi Sengupta Eminent CSR Consultant & Author Director – Kohana CSR

CSR & Competitiveness

Prof BD Singh Renowned Academician & Author

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Cover Story

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d n e p S o t s e Compani e r o r C 0 0 0 , 0 Rs.15,000-2 a Year on CSR In a way, CSR can be an investment opportunity, as the companies would be able to create in their areas of operation a healthier workforce, people would have much less grouse, the community around the area would be happier and such an environment would produce much better output and would be much more conducive for doing business.

xpecting an annual CSR spending of Rs. 15,000-20,000 crore by India Inc, Corporate Affairs Minister Sachin Pilot has asked companies to see the new law as an investment opportunity to create a better work environment, rather than a forced expenditure.

The minister also said that the government has left the canvas wide open for the companies to decide on their own about the CSR (Corporate Social Responsibility) activities they wish to undertake to comply with the new norms. He said the few areas prescribed under the law are only suggestive in nature and it should not be seen as a restrictive list. Under the new Companies Act, 2013, which has replaced nearly six-decade old legislation governing the way corporates function and are regulated in India, all profitable companies with a sizeable business would have to spend every year at least 2 per cent of three-year average profit on CSR works.

This would apply to the companies with turnover of Rs. 1,000 crore and more, or net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crore and more. The new rules, which would be applicable from the next fiscal 2014-15, also requires the companies to set up a CSR committee of their board members, including at least one independent director. “This money would not come to the government of India. It is the companies’ money and they can spend as per the decision taken by the CSR committee of their board. But they must report the same,” Mr. Pilot told PTI in an interview. “Our assessment is that if every company that is qualified for doing the CSR does so, then Rs. 15,000-20,000 crore would be spent in a year in various projects such as environment, skill development, water, sanitation etc. “We have left the canvas very wide as we thought it would not be proper to make it restrictive,” Mr. Pilot said. The companies have been asked to give preference to their local area of operations for such CSR activities, while those not being able to spend the required amount would need to specify the reasons for the same in their annual CSR report. According to the draft rules, which would be finalized after taking into account the suggestions from all stakeholders and the general public, the CSR should not be seen as “charity or mere donations”. It has been proposed that the CSR activities should not be exclusively for the benefit of employees of the company or their family members, while only those CSR activities would be taken into consideration that are undertaken within India. The companies would need to create a CSR corpus comprising of 2 per cent of net profit, while any income from this corpus and the surplus arising out of CSR activities would need to be credited back to the CSR corpus. As per industry estimates, the mandatory CSR rules would apply to close to 9,000-10,000 companies. The CSR committees of the respective boards of the companies would need to prepare the CSR policy, specifying the projects and programmes to be undertaken as also their execution modalities and implementation schedules. The companies can collaborate or pool resources with others to undertake their CSR activities jointly and any expenditure incurred on such collaborative efforts would qualify for computing the CSR spending. The government has also proposed to allow the companies to set up trusts or other separate nonprofit entities to facilitate implementation of their CSR activities.

CSR & Competitiveness | September 2013

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3-4 f o r e n w o Yes, I am ated n o d I d s...an e i r t s u d In vities i t c a R CS s a f l e s y m nd a . . . y t e i c o for the s S... C I T I L PO o t n i e m ca

Besides, CSR programmes can also be undertaken by the company through nonrelated trusts, societies, or other non-profit companies with an established track record of at least three years. Activities which may be included by the companies in their CSR programme can be related to “eradicating extreme hunger and poverty, promotion of education, promoting gender equality and empowering women, and reducing child mortality and improving maternal health”. Other such activities can include combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases; ensuring environmental sustainability, employment enhancing vocational skills and social business projects. The permitted CSR would also include contributions to the Prime Minister’s National Relief Fund or any other government fund for socioeconomic development and relief, and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women. Mr. Pilot said that the draft rules have been framed keeping in mind the main legislation and the government would incorporate the public suggestions as much as possible. “India is the first country in the world to have CSR provisions in the statute. “We have left it very open on how the companies would want to do their CSR. But at the same time, CSR&&Competitiveness Competitiveness| |September September2013 2013 CSR

they must make public their CSR details public for the benefit of their shareholders and the public at large,” he added. Expecting full cooperation from the corporate sector on the CSR rules, the Minister said: “It is one thing to sponsor events like cricket matches and get some benefits out of the same. But CSR should be about creating goodwill. “There is a perception of there being a trust deficit between the companies and the people of the area where large factories are located. There are concerns that the companies are making huge benefits through activities like mining etc. “That perception needs to be corrected and the companies can create a good perception through their CSR initiatives.” “In a way, CSR can be an investment opportunity, as the companies would be able to create in their areas of operation a healthier workforce, people would have much less grouse, the community around the area would be happier and such an environment would produce much better output and would be much more conducive for doing business,” he said.

CSR Spending Likely to be Rs.27,000 Cr in a Year According to the Indian Institute of Corporate Affairs, of the 1.3 million companies in our country, about 6,000-7,000 companies are covered under the new CSR rule as it is applicable only to companies that have a minimum net worth of Rs. 500 crore, turnover of Rs.1,000 crore or net profit of Rs 5 crore. The new Companies Act, 2013, which proposes that 2% of profits earned by a certain class of companies must be spent on corporate social responsibility (CSR) activities, would mean an estimated Rs. 27,000 crore will flow into grassroots development and social enterprise sectors every year. It is currently estimated that the average CSR spend currently is 1-1.25% of profits, while the Companies Act, 2013, prescribes 2%. While the new Act does not make this kind of a CSR spending compulsory, it mandates reporting any failure in meeting this target, creating social pressure on companies. While corporate affairs minister Sachine Pilot insists the new CSR rule is driven by the principles of self-regulation and self-disclosure, corporate leaders Bajaj Group chairman Rahul Bajaj and Infosys vice-chairman K.Gopalkrishnan have raised concerns over the government dictating terms on philanthropic initiatives of companies.

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Ambuja Cement Foundation Bags FICCI Water Awards 2013 Over the past two decades, ACF has been working consistently in keeping with the sustainable point of view that is line with the Company Vision. We are being acknowledged for the hard work and we accept this recognition both with pride and humility. Our endeavors have borne fruit, thanks to the active participation of the many stakeholders including the communities with whom we work with closely. Ajay Kapur CEO & Dy MD Ambuja Cements Limited Over the years, ACF’s work in the area of water resource management has been recognized. Last year, prestigious awards were conferred - and CII Award for Excellent Water Management Initiative – Beyond the Fence & Within the Fence as well as the CII Sustainability Awards 2012 from President Pranab Mukherjee. MUMBAI : Ambuja Cement Foundation (ACF), the social development arm of Ambuja Cements Limited bagged the first prize in the ‘Community Initiatives by Industry’ category at the FICCI Water Awards 2013. Federation of Indian Chambers of Commerce and Industry (FICCI), Water Awards is an annual platform that rewards industry stakeholders, who demonstrate dedication towards sustainable water management practices. The awards recognize the distinguished efforts made by them in the areas of water efficiency, management and conservation. Deputy Chairman, Planning Commission Montek Singh Ahluwalia presented the award to ACF Head & Jt President (CSR) ACL, Pearl Tiwari at a grand felicitation held at the Federation House, New Delhi on August

7, 2013. ACF is being recognized for its endeavor and visionary approach in the area of water resource management and efficiency. Accepting the award, Ms Tiwari reiterated that the moment of immense pride and gratification for the entire team at ACF, to be recognized with this prestigious award. “This accomplishment could have not been possible without the collaborative efforts of state and local governments, non-governmental organizations, banks and other institutions and bodies who have partnered with us and added significant value to our projects,” Ms Tiwari said This milestone reiterates ACF’s long-standing commitment towards enhancement of water resources im-

plemented towards development of communities. We remain committed to our stated objective of empowering rural communities facing issues of water shortage, Ms Tiwari added. ACF has adopted water resource management as one of its key focus areas, to create an impact on the environment, groundwater resources, agriculture and allied livelihood activities. These programmes lay emphasis on sustainability through community action, and involves water harvesting, conservation and bringing about an attitudinal change among communities. ACF also collaborates with various stakeholders to implement various state specific water conservation programmes.

Wockhardt Foundation Installs Bio-Toilets at Bharat Nagar in Mumbai Bio-toilets is a sludge-free technology which doesn’t require electricity thereby playing a vital role healthcare. It is estimated that 10 million children die under the age of 5, globally, every year due to unsanitary conditions. So, introducing it in Mumbai where there is inadequate provision for drainage and sanitary conditions will be extremely effective. After the successful pilot launch, we plan to set up in several places in Mumbai including households, construction sites airports, village central points, educational institutions, pilgrimage sites, and slums. MUMBAI : Wockhardt Foundation, a not-for-profit organization known for its committed service to the poor, weak and needy, on August 27 launched “Bio-Toilets” in Bharat Nagar, Mumbai. The initiative from Wockhardt Foundation is 100% eco-friendly and cost effective as it decomposes the solid waste into water and bio-gas and it only requires one time installation, Wockhardt Foundation said. Bharat Nagar always had problems of space, so these ecofriendly and economical toilets not only provides preventable healthcare but also solves the problem of space crunch. Here one bio tank is equivalent to five septic tank and doesn’t require maintenance on yearly basis. Mumbai always had the problem of massive water shortage; Bio-toilet can act as a solution of saving water used on the cleaning of open defecation. CSR & Competitiveness | September 2013

Bio-toilets consist of two variants : Stationary toilet (ST) series and Mobile toilet (MT) series. The excreta from the toilet shelter enter the bio-digester tank that contains bacterial inoculums which converts some part of excreta as biogas and is emitted through one outlet and the remaining water is transported out, by means of the water outlet. The bio-toilet holds a 90 percent decomposition of waste rate, as opposed to that of the regular toilets that decompose merely 30 percent of excretory waste.. The odour-less water extracted after bio-degradation can be used for irrigation of gardens etc. Wockhardt Foundation is a national, secular, not-for-profit organisation engaged in social service and human welfare activities. It’s 16 programs have made perceptible change in its areas of operations to the lives of the underprivileged.

Bharat Nagar always had problems of space, so these eco-friendly and economical toilets not only provides preventable healthcare but also solves the problem of space crunch. Here one bio tank is equivalent to five septic tank and doesn’t require maintenance on yearly basis. Dr. Huzaifa Khorakiwala, CEO - Wockhardt Foundation

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Food Security Bill Ensures Cheap Foodgrains to Country’s Two-Third as Legal Right The States have been provided one year for the implementation of the historic Act which will ensure heavily subsidized foodgrains to about 82 crore people as their legal right. Haryana, Himachal Pradesh, Rajasthan, Uttranchal, Mizoram and Delhi have already started its implementation.

India will now join a select league of nations that guarantee majority of its population cheap foodgrains. At Rs 1,30,000 crore govern-

NEW DELHI: In a major development, Rajya Sabha on September 2, 2013 passed UPA chairperson Sonia Gandhi’s dream project, the National Food Security Bill, which aims to provide cheap food grain to country’s two-thirds population. The National Food Security Bill, a historic initiative for ensuring food and nutritional security to the people was passed by Loksabha on August 26, 2013. With the Rajya Sabha giving its nod to the bill, its passage has now given the Congress-led ruling alliance a powerful electoral issue in the 2014 Lok Sabha polls. The ambitious bill, seen as a game-changer by the government and expected to benefit 82 crore people in the country, cleared the Parliamentary process after much delay and uncertainty. It now needs just one more step - Presidential assent - to become a historic law. The proposed legislation was approved after a combined discussion on the measure and a statutory resolution seeking to disapprove the ordinance promulgated on July 5. The bill will guarantee 5 Kg of rice, wheat and coarse cereals per month per person at Rs 3, 2, 1, respectively.

ment support, the food security programme

Definitions of the ‘meal’

will be the largest in the

The definitions of the ‘meal’ for mid day meal and ICDS programmes has also been amended. Now ‘meal’ means hot cooked or pre-cooked and heated food and not the packaged food. This amendment has been made to remove the apprehensions of misuse of the earlier provision for supply of packaged food in large quantity.

world. It would require 62 million tonnes of foodgrains.

Amendments Total ten amendments have been approved by the Lok Sabha in the National Food Security Bill which was introduced in the house on August 7, 2013 by Union Consumer Affairs, Food and Public Distribution Minister, K.V.Thomas to replace the National Food Security Ordinance, 2013 promulgated on July 5, 2013. The Bill proposes to provide wheat and rice at Rs 2 and Rs 3 per Kg to about 82 crore people, while under the existing Targeted Public Distribution System only 2.5 crore Antyodaya Anna Yojana (AAY) families or about 32.5 crore persons (assuming 5 as the average household size) are getting foodgrains at these prices. Thus, population getting foodgrains at these highly subsidized prices as their legal right will increase to 67% from existing 27%.

CSR & Competitiveness | September 2013

Features of the Bill Under the Food Security Bill each entitled person will receive 5 kg of food grains per month. The poorest of the poor who have been getting 35 Kg of food grains, will continue to get 35 kg food grains per household per month under AAY. The Bill has special focus on nutritional needs of women and children. The Bill proves that the eldest woman of the household above 18 years is considered the head of the household for the purpose of issue of ration cards. Not only that pregnant women and lactating mother will get maternity benefit of Rs 6000 and pregnant women and children below 14 years of age will get nutritious meals, with higher nutritional norms for malnourished children. On the issue of redressing grievances that may arise in implementation of such a massive social justice programme, it has been planned to give an increased role for Panchayati Raj institutions and women’s self help group in programme-monitoring and social auditing. There will be provision for internal grievance redressal mechanism including call centres and help lines; and District Grievance Redressal Officers and State Food Commission for expeditious and effective.

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A Ray of Hope in the Clouds of Despair O P Jindal Vocational & Rehabilitation Centre, Raigarh

Asha - The Hope O P Jindal Vocational & Rehabilitation Centre, is the silver lining behind the dark clouds of disability that strives to make the Millenium Development Goals inclusive by empowering the differently abled. While the centre intends to render rehabilitation services to the people with disabilities in all the age groups, the focus is on children within developmental age group. The centre runs full blown vocational training on candle making, tailoring, embroidery, paper products, bamboo crafts and basic computer education as an endeavor to empower the special children lead independent lives. The centre also runs a community library for the visually impaired, supported by National Institute for the Visually Handicapped (NIVH), Dehradun.

Raigarh is one of the districts of Chhattisgarh state, with greater ratio of disability population compared to the total population. More than 30,000 persons with disabilities in this district have been finding themselves isolated from the development process and initiatives taken up both by Government and private organisations including corporate social responsibility. The only institute to cater their needs the District Disability Rehabilitation Centre (DDRC) had become defunct. There was no way of hope for this larger minority for years.

CSR & Competitiveness | September 2013

ersons with Disabilities live in a vicious cycle of predicaments where their abilities do not match the requirements of the existing socioeconomic and cultural milieu and the mismatch is further intensified by the inhibiting factors viz. limited access to education, health care and opportunities, which limits them from leading them an independent life. Raigarh is one of the districts of Chhattisgarh state, with greater ratio of disability population compared to the total population. More than 30,000 persons with disabilities in this district have been finding themselves isolated from the development process and initiatives taken up both by Government and private organisations including corporate social responsibility. The only institute to cater their needs the District Disability Rehabilitation Centre (DDRC) had become defunct. There was no way of hope for this larger minority for years. For any process of development to sustain, it is necessary that an entire cross section of stakeholders, directly or indirectly impacted by the intervention, become a part of the process. Following such an understanding, all the CSR initiatives at JSPL Raigarh are designed on the basis of needs identified through comprehensive multiâ&#x20AC;&#x201C;stakeholder assessments. Jindal Steel & Power Limited (JSPL) identifies itself with the communities it exists and operates its business in. The dream therefore, is not just strengthening the industrial base but collective growth creating happy, self reliant communities. Hence, each step that that CSR JSPL takes is an attempt to partner sustainable solutions to the concerns

of its communities, and build their inherent capacities such that they are able to make the best choices. This not only addresses the developmental concern but also enables various segments of stakeholders to design & deploy appropriate efforts that enable every stakeholder to contribute in and share the success of inclusive growth. The differently abled people are one such stakeholder group who need to be enabled through specific efforts customized to their needs such that they are valued, as contributors, to the society. Between 2004 and 2008, disability management was addressed through Annual camps for distribution of assistive and adaptive devices, such as tricycle, wheel chairs, crutches, calipers etc. which were one time annual efforts to provide on the- spot diagnostic and assistance to address the mobility needs of persons with disabilities. People requiring long term rehabilitative therapies were referred to higher centre. Responses from communities influenced the necessity of developing a holistic plan that would address prevailing social myths & beliefs and provide long term therapeutic interventions that would help the child overcome impacts of their disabilities. Professional help was hired. The understanding took roots that prevention of disability or its consequences through appropriate Interventions at an early age should be preferred; rather than doing something at an adult age, when disability has already complicated the physical, psychosocial, and economic aspects of life.

Sucess Story

On August 7, 2009, O P Jindal Vocational & Rehabilitation Centre (OPJVRC), commonly known as Asha-The Hope was dedicated by Smt. Shallu Jindal, President of Jindal Foundation, towards rehabilitation and empowerment of persons with disabilities, through comprehensive state of art rehabilitation services in terms of early intervention, Physiotherapy, Occupational therapy, Special education, Speech therapy and audiometry, Music and Recreational Therapy, Counselingguidance services and skill development training.

Asha - The Hope is established in a place owned by the communities of Patrapali Village of Raigarh, have been identified and registered at the centre. Manpower in this centre includes 12 professionals such as special educators, physiotherapists, occupational therapists and 18 supporting staff including ahyas, attendants, vocational trainers. 8 number of persons with disabilities have been employed in this centre as supporting staff after proper training. The annual budget of Asha, is nearly Rs.1.5 crore which is being supported by CSR of Jindal Steel & Power Ltd.

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This CSR initiative towards rehabilitation and empowerment of persons with disabilities followed three major approaches, viz., Full Life Cycle Approaches (FLCA), Holistic Development Approaches (HDA) and Access to enabling and empowering environment approaches (A2E). FLCA covers programs of prevention, identification, early intervention, education, vocational training, livelihood and independent living services which are age specific, while holistic development approaches included all therapeutic interventions such as physiotherapy, occupational therapy, speech therapy, audiological services, psychological therapy, family support etc. A2E includes Advocacy, Barrier Free Environment, Capacity building, Disabled people’s organization, Empowerment. It impacts in creating enabling and empowering environment by building capacities in the community towards barrier free environment, community mobilization and self-help group formation and activation. The centre is catering to the needs of various categories of persons with disabilities as per the classification of the Persons with Disabilities (Equal opportunity, Protection of Rights and Full Participation) Act, 1995 and the National Trust for the Welfare of the persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act 1999, irrespective of caste, creed, sex, socio-economic variances. The centre not only provides them therapeutic or educational rehabilitation services but also takes effective measures to engage them in sustainable livelihood programs. The livelihood promotion unit provides training to the differently abled in selected

trades like Screen Printing, Candle Making, Tailoring, Soft toy making, Computer and DTP etc. which a differently abled person can practice at home and earn his living. After training the trainee is allowed to go back to his/her own community and a set of moulds/ raw materials, for the particular trade in which he/ she becomes the master trainer for the SHG of differently abled persons in that community which is already formed and strengthened through extension and outreach programs. Besides therapeutic interventions and livelihood programs the differently abled were supported getting disability certificate, pension, bus pass, loans through Microfinance Schemes and other entitlements and benefits. Appropriate linkages are provided through extension and outreach programs ensuring that the trainees become independent thus reducing the pressure on industry for employment. Numerous examples exist who give us the reason to believe that the Centre has lived up to the expectations of the

larger community extending much beyond the hinterland impacted by the Company. Children travel as far as 45 km everyday to avail the facility. A total of 12883 people have received assistance from the centre, as on date. Besides therapeutic interventions and livelihood programs the differently abled were supported in getting other entitlements and benefits available from government & non government agencies. By March 2014, the centre is poised to become a resource centre for persons with visual impairment. As a first step towards this end, a Community Library for visually impaired has been initiated with the support of National Institute for the Visually Handicapped, Dehradun. Linkages with super specialty hospitals have been maintained for medical referral services should there be a requirement. The journey that started 4 years ago has had its share of barriers. Deep rooted myths that disability is a consequence of the deeds done in previous lives, combined with repeated rejections from probable sources of support created intense levels of frustration amongst the family members of differently abled children. When the first few days at the centre showed a ray of hope, the expectations that their child would be magically healed in a short span of time, surfaced. Managing these unrealistic expectations was an issue that had to be dealt with. Parents counseling sessions and one to one sessions every month, with the family members of children with disabilities helped to bridge the gap in the expectations and the reality. ‘Philanthropy is a dish

best served with sustenance, passion and perseverance’. JSPL has internalized this adage and embarked on this very exciting journey of transforming lives. The milestones thus, do not merely reflect in the growing numbers of beneficiaries intervened by CSR JSPL but more essentially in the dissemination of it’s philosophy of inclusive growth. Symbiotic relationships with the community and environment are testimonial to this fact. The engagement has only reiterated JSPL’s understanding that if lives need to get transformed, genuine concern and willful action be needed. Mark Gastin, renowned hydrotherapist from Spain visited the centre in May 2013, expressed his happiness by saying that, he felt proud of the works of Asha The Hope, and then conveyed his best wishes and congratulations to the team to keep of the work in the same pace.

Success Story

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GMR Scripts Green Story in Odisha’s Kamalanga Area GMR Group is setting set up a 1,400 MW thermal power plant in Kamalanga village of Dhenkanal in Odisha. Out of four units of 350 mw each; one unit has already been commissioned. Like any other GMR Group companies, GMR Kamalanga Energy Limited (GKEL) is also committed to all round development of the periphery villages situated in and around its power plant. GMR Group believes that well being of the people living in periphery communities is not its responsibility but a duty. Therefore, participatory community development programs were initiated in four thrust areas namely education, livelihoods, health, and youth and women empowerment. While implementing the programs more attention was given to land loser families, SC/ST and women headed households and BPL families. Since last six years significant investment of Rs 35 crores has been made in social sector by GMR Kamalanga Energy Limited. This investment has created a lot of social infrastructure and opportunities for human resource development and income opportunities for the people living in GKEL periphery villages.

W More than 100 acres of land has been cultivated and cash crops like groundnut, maize, mustard have been raised on the bank of Brahmani river and has provided opportunity to 250 farmers to earn extra income by reusing their fallow land.

CSR & Competitiveness | September 2013

hether Industry and Agriculture can co-exist, has been debated at many industry related platforms for past few decades. GMR Kamalanga Energy Limited (GKEL) has proved this coexistence in an effective manner by establishing a number of agriculture-based livelihood initiatives under GMR Varalakshmi Foundation in periphery villages in Dhenkanal district of Odisha. More than 100 acres of land has been cultivated and cash crops like groundnut, maize, mustard have been raised on the bank of Brahmani river and has provided opportunity to 250 farmers to earn extra income by reusing their fellow land. Likewise, 29 farmers have started growing paddy by adopting System of Rice Intensification (SRI) method and are hopeful of harvesting more paddy this time. More than 400 families have been undertaken vegetable cultivation in the area. The foundation has imparted training to the families and provided seed, fertilizer, and farm equipment. “This has been possible due to the social commitment by GMR Group and because of special interest of our Group Chairman GM Rao and the whole-hearted co-operation of local people,” said Foundation’s Program Leader, Jayant Kumar Mohanty. GMR Varalakshmi Foundation provided us all training and support for the development of agriculture, Purendra Nayak, a resident of Mangalpur village, said. “The production of paddy has been increasing every year. I hope this year I will harvest more paddy this time from my land,” he added. Mushroom farming has also been undertaken by women farmers in the area. Namita Behera from Kamalanga village, informed that she has earned good returns from mushroom cultivations last year and hoped similar benefit this year. “I thank to the Foundation for providing support to our family for mushroom cultivation,” she added. Besides agriculture, the foundation is supporting animal husbandry activity. More than 400 families have been given support for goat rearing, poultry, duck rearing. “More than 80 families have also received fingerlings from the Foundation. The fish farming has been undertaken in 80 individually-owned and community ponds in the area. In order to help farming families to benefit from backyard plantation the foundation has provided mango and teak sapling to 800 families”. Besides, agriculture-based livelihood activities, the foundation is working on health and education at Kamalanga area. More than 67 un-employed youths have been trained to facilitate wage-based and self-employment opportunities. All these youths are school drop outs and with the help of GMRVF have been trained and employed in a phase manner since last three years. Youths were trained in various trades such as AC repairing, wielding, mobile repairing. Many of the youths are working under the contractors of GMR Kamalanga Energy Limited and earning their livelihoods. The youths are trained in Bhubaneswar-based Centurion University, ET& T at Cuttack and GMR’s owned Vocational Training Centre at Jarjang in Andhra Pradesh. Similarly, 200 women have been trained in tailoring. GMRVF is running three community based tailoring centers in the GKEL periphery villages in which these women got the training. Few among them have started their own tailoring shops and rest are associated with a production center being promoted by the Foundation which encourage wom-

en to get involved in producing hand made products. The Foundation is working to improve standard of education in the area. Nine Support Teachers have been provided to improve the quality of science and mathematics teaching in government primary schools. Two after-school Learning Centres have been established to enhance learning opportunities of students studying in government schools. So far, 182 students have derived benefits from these Centers. Advanced computer-enabled learning systems for children – KIDSMART Centres – established and equipped in two government primary schools. Pravat Behera, a resident of Manibeda village, was a school dropout, wanted to start something new on his own. In order to realize his dreams, GMRVF extended helping hand and sent him for mobile repairing training to ET & T, Cuttack. After completion of one and half months course training there, he was supported with the required equipments by the Foundation to start mobile repairing shop near the GMR Labour Colony. Now, Pravat is earning Rs 3,000 every month. A DAV Public School has been set up at Kamalanga village where land loser children get quality education. The foundation has also given importance to health in the area. Woman and child focused specialized monthly health camps are organized in the area for the benefit of pregnant and lactating women, and children. Specialized monthly health camps are being organized with a focus to address the health issues of geriatric population. Periodic specialized eye camps and cataract operations have been undertaken. So far 478 persons were given spectacles and 93 cataract operations have been facilitated. To create access to quality healthcare, fully equipped accident care centre established at the Dhenkanal District Headquarters Hospital. In addition, an advanced health care facility, Vivekananda Hospital, has been set-up at Kamalanga Village. To achieve the objective of creating a healthier community through improved preventive measures, awareness programs on different health and hygiene related issues have been organized in collaboration with village level health workers and government health officials. The same activities will continue on behalf of foundation in the periphery villages in coming days. Overall the community based programs implemented by GMRVF played important role in integrating business with community and developed human and natural capital among the most marginalized section of the population in Kamalanga area in Odisha.

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Companies Bill, 2012: Time to Evolve Corporate Strategic Roadmap for CSR The Companies Bill, 2012 introduced 33 new definitions on various terms including Employee Stock Option (ESOPs), Small Company, Associate Company, Chief Executive Officer (CEO), Promoter, Associate Company, Related Party, Chief Financial Officer (CFO), Global Depository Receipt (GDR), Turnover etc.

By Dr. Rana Singh

twenty ninth or the last chapter covers the various miscellaneous aspects of Companies Bill, 2012.

The Indian republic has witnessed a paradigm shift in the various dimensions of business environment and the Indian Government and the corporates together paved the way for the promulgation of Companies Bill 2012. The recently passed Companies Bill, 2012 by the dynamic UPA government at the centre shall lead to a new era of regulatory environment facilitating the Indian companies to compete in the national and international markets in the digital world.

Some of the excerpts from the major highlights in the form of amendments in the companies act are as mentioned below:

The origin of the Companies Bill started way back on August 3, 2009, when it was introduced for the first time in the Lok Sabha. It was referred to the standing committee on finance which submitted its report later. The companies Bill 2011 was initially laid in the parliament in the month of December 2011. The Companies Bill, 2012 was passed in Lok Sabha on December 18, 2012 heralding a new era for the corporate India. The new Bill containing 470 clauses has been structured into 29 chapters. The first chapter deals with the short title, extent, commencement, application and the definitions of the key terms and terminologies. The second chapter highlights about the various key aspects related to incorporation of a company and matters incidental thereto. The third chapter has detailed about the prospectus and allotment of securities. The fourth chapter has outlined the various aspects of Share Capital and Debentures. The fifth chapter has described about the acceptance of the deposits by the companies. The sixth chapter has focused on the various aspects of registration of charges. The seventh chapter has outlined the composition of management and administration. The eighth chapter has covered the various issues regarding declaration and payment of dividend to the shareholders. The ninth chapter describes about the way the books of accounts of the company is to be maintained in the times to come including coverage on Financial Statement, Board’s Report and Corporate Social Responsibility. The tenth chapter mentions about the audit process and the auditors including coverage on appointment, removal, eligibility, remuneration, powers, do’s and don’ts, as well as the penal clauses in case of contravention of the provisions of the bill. The eleventh chapter has detailed the various nitty gritties of the appointment and qualification of directors including companies to have board of directors, manner of selection of independent directors, appointment of directors, allotment of Director Identification Number (DIN), number of directorships etc. The twelfth chapter has detailed about the meetings of board and its powers including quorum, resolution by circulation, powers, restrictions, prohibitions and allied aspects. The thirteenth chapter deals with the appointment and remuneration of the managerial personnel including appointments of managing director, wholetime director or manager. The fourteenth chapter has covered the various aspects of Inspection, Inquiry and Investigation. The fifteenth chapter focuses on compromises, arrangements and amalgamations includ-

CSR & Competitiveness | September 2013

The companies which shall pro-

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Compliance : The Companies are required to comply with the new provisions relating to the composition of the Board of Directors within one year. The companies are expected to scrupulously follow this stipulation latest within one year.

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New Definitions : The Companies Bill, 2012 introduced 33 new definitions on various terms includingEmployee Stock Option (ESOPs), Small Company, Associate Company, Chief Executive Officer (CEO), Promoter, Associate Company, Related Party, Chief Financial Officer (CFO), Global Depository Receipt (GDR), Turnover etc.

•

Ease of Doing Business : To facilitate the ease of doing business, the innovation concept of one Person Company has been introduced to the corporate world. The upper cap of the total number of persons in a private company has been increased to 200.

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Whole Time Director (WTD) : In the Companies Bill, 2012 the whole time director has also been covered under the definition of the Key Management Personnel.

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Limit in respect of maximum number of companies : The limit with respect to the maximum number of companies in which a person may be appointed as auditor has been proposed as 20 companies. In case of the firms /partnership firms, the limit is made applicable to each of its partners.

actively plan and implement the strategic roadmap to combat the challenges arising in the new regulatory environment shall be able to tide over the challenges of competitive market scenario at the national and international level.

ing coverage on merger and amalgamation of companies, power of central government and various other allied areas. The sixteenth chapter has detailed about prevention of oppression and mismanagement including powers of the tribunal. The seventeenth chapter has covered about registered valuers including valuation by registered valuers. The eighteenth chapter describes about the removal of names of companies from the register of companies. The nineteenth chapter focuses on revival and rehabilitation of the sick companies. The twentieth chapter had detailed the winding up process and the various inter related processes. The twenty first chapter has covered the companies authorized to register under this act. The twenty second chapter has explained about the provisions of companies incorporated outside India. The twenty third chapter has detailed about the Government Companies and the annual reports. The twenty fourth chapter has described about the registration offices and fees. The twenty fifth chapter makes a detailed coverage about the companies which are required to furnish information or statistics including power of the central government to direct companies to furnish information or statistics. The twenty sixth chapter has made a brief explanation about the Nidhis and allied aspects. The twenty seventh chapter has made a detailed and exhaustive coverage on National Company Law Tribunal and Appellate Tribunal including constitution of National Company Law Tribunal, Selection of Members, etc. The twenty eighth chapter has explained about the Special Courts including the finer details regarding establishment, offences triable by Special Courts, Power of Court to exempt or grant relief. The

To conclude, the Companies Bill, 2012 has led to the emergence of challenges and opportunities for the companies to look at change with a proactive view angle. It is the best time to introspect and evolve the strategic planning process reoriented towards highest degrees of compliance in the light of the recent changes. The companies which shall proactively plan and implement the strategic roadmap to combat the challenges arising in the new regulatory environment shall be able to tide over the challenges of competitive market scenario at the national and international level. The enhanced level of focus on strategic planning, implementation and control optimally complimented by an organizational environment driven by the culture of learning and innovation in all facets and domain areas of shall make the organization and its products and services globally and locally competitive. Prof (Dr.) Rana Singh is Executive Editor, CSR & Competitiveness. He can be reached at ranasingh@ indiacsr.in

Interview

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It is our Mission to Ensure Better Lives of at Least 10,000 Children in 3 years In an interview with CSR & COMPETITIVENESS, Urja Shah, President, Setco Foundation, spoke about the Setco Group’s CSR and how their interventions are constructively impacting the people of the Panchmahal district of Gujarat by imparting basic education, nutrition and meals ensuring the well-being of hundreds of under-privileged children.

Urja Shah

Urja Shah handles the philanthropic projects of the Setco Group of companies which deals in manufacturing of premium clutch products for the Automotive and hydraulic products of the Construction Equipment Industry. She has a Master’s Degree in Environmental Policy and a certificate in International Development from Duke University after earning a Bachelor’s in Environmental Science from the University of Massachusetts, Amherst. She is a qualified fashion designer, holding an Associate Degree from the Parsons School of Design, New York.

Kindly brief us about your Company’s vision, mission and objectives as well as historical backdrop? From a joint sector project to one of the fastest growing manufacturing companies in the Indian automotive sector, Setco Automotive Ltd has come a long way since it was first established in May 1982. Setco Automotive, promoted by the Sheth Family, is a diversified engineering products company, listed on the BSE Sensex. Setco is the largest manufacturer of Premium Quality Lipe clutches for heavy and medium commercial vehicles in India employing more than 1000 people globally. At Setco, our aim is to keep the corporate spirit alive and keep growing with our passion for progress and development of society. Our mission is to continuously enhance stake holder value by building and maintaining a strong and stable customer base in our chosen field of business, supported by innovation and a relentless focus on high quality products at globally competitive prices. How much Corporate Responsibility is attached to the business and operations? While Setco contributes 5% of their annual net profits for the Foundation’s activities, they also encourage their employees to actively participate in their CSR initiatives. For example, an annual blood donation camp is organised every year with enthusiastic participation from over 30% of Setco’s employees. Additionally we also have several company employees volunteer their time in direct benefit of the foundation’s projects. Do you have CSR policy for the Group companies? We are in the process of formulating a CSR policy in this coming year. What is the vision of Setco Foundation and when it was started? The Setco Foundation was set up in May 2007 to implement the Corporate Social Responsibility initiatives of the Setco Group of companies, with a focus on health, education and empowerment for the society at large. We believe in imparting healthcare and education for women and children to strengthen the roots of the society where we live. Our aim is to empower women through education, proper healthcare, economic independence. We are committed to investing our time, expertise and resources to educate children and provide them with proper nutrition to eradicate malnutrition from our country. Setco Foundation strives to enable the community to ensure that every child and woman has full access

CSR & Competitiveness | September 2013

to healthcare, nutrition, education and opportunity for growth. Our mission is to ensure that the Setco Foundation touches the lives of at least 10,000 children in 3 years. Our models work on the basis of a partnership between the government, corporate and the community. Our key current initiatives are the Nandghar Project and the Women’s Empowerment Project. You are in core management team of Setco Automotive, which are the CSR projects initiated by you at Setco? All CSR projects are started only after a combined team vetting process, through which the objectives of the projects must align with the mandate of the foundation. The evolution of both the Nandghar Project, with clearly defined health and ECD objectives, as well as the Women’s Empowerment project have taken place under my leadership. My role as a team leader is ensure that projects have clear, well defined results and are out-put rather than inputdriven. Setco Foundation is currently working on a replicable, scalable partnership system between corporate-community and government at the Anganwadi level. The goal is to ensure that every child is able to achieve the appropriate Early Childhood Developmental (ECD) milestones which are measured by clear and simple evaluation levels devised in accordance with current child development norms. What are your CSR Focus areas and various ongoing programmes? At the Foundation, our main focus is women and child empowerment. Our key current initiatives are the Nandghar Project and the Women’s Empowerment Project. Nandghar Project - In partnership with the Government’s anganwadi program, Setco Foundation has adopted twelve anganwadis in communally tense areas of the Panchmahal district (Gujarat). Five of these anganwadis have been integrated into one secular anganwadi. The Setco Foundation augments the efforts of the local Integrated Child Development Services (ICDS) program through supplementary nutrition, educational support, capacity building outreach and advocacy. Through our Nandghar project we reach out to approximately 1200 children an age group of 0-6 year, and 250 expectant and nursing mothers. The Nandghar project has three main objectives that are to improve the maternal-fetal-infant health in the community, to eradicate malnutrition and ensure that 0-6 year old children are meeting ECD parameters. What kind of positive impact you have made

through projects in community? Approximately 40% of women trained under the Setco Foundation’s income generational scheme have completed 10th grade and are today significant contributors in their family income. More than 50 women under Setco’s Women’s Empowerment Program have gone on to receive a college education, even in traditionally male areas such as engineering, business administration etc. The Setco Foundation Anganwadi program has greatly impacted the marginalized people in the Kaloltaluka, Panchmahal district, Gujarat, by reducing childhood malnutrition in slum and rural communities from over 80% to less than 15% during the last three years (using physical growth as an indicator) as well as increasing sustained attendance by their primary school children with more than 30% securing admission into private schools, including English medium schools. Owing to the positive outcomes of their malnutrition eradication initiatives, the Government of Gujarat has invited the Setco Foundation to help develop a scalable and replicable model for a partnership between the state, the community and corporate to tackle malnutrition with the state of Gujarat. What are your future plans for the year 2013? As of 2013, the Setco Foundation has adopted six more Anganwadis, thus enabling us to contribute to the welfare of over 1000 women and children by imparting basic education, nutrition and skill-training. What kind of a model have you adopted to implement the project for wider impact? Currently our CSR activities are focused on the Panchmahal tribal district community. However, we are looking to expand our activities within the state over the next few years and are working on creating a sustainable model for the same. Do you have annual budget for social projects? The Setco Group contributes 5% of their annual net profits to organise and run the social projects and activities of the Foundation. How do you measure Social Impact of the projects implemented. We have clear documentation of several statistics such as nutrition rates, school admissions, childhood and maternal survival and health. Additionally the results of our efforts are measured through the number of lives that we’ve impacted, be it through basic primary education, sustained nutrition for women and children or the number of avenues we’ve created for financial independence for the slum and tribal women. We have also documented case studies of each and every beneficiary of our

Interview

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What are your success mantras and recommendations to combat the challenges in the global market?

income-generational activities, which gives qualitative evidence of the social benefits such as confidence and decision making. What do you think of the India government’s emphasis on CSR?

Setco Foundation strives to en-

India’s new Companies Bill has just been passed. It heralds a new era in Corporate Social Responsibility (CSR), not just in India but internationally. Under the new law companies above Rs. 500 Crore in revenues (around USD90 millions) are required to earmark 2% of their net profits to CSR activities and to report those activities in their annual report. In introducing the legislation the Minister for Corporate Affairs stated this was “the first time, and historically it may be the first time in the world, that a country considered mandating expenditures for the public good, rather than simply taxing companies or leaving them to their own devices.”

able the community to ensure

This is remarkable, especially in the context of India’s business community, which has been slow to adopt CSR and taking a more traditional philanthropic approach. Though elements of this community have been opposed to the new legislation, arguing that it goes against the core principle of voluntarism inherent in the philosophy of CSR, many are now embracing it. For instance, in the wake of the new legislation CSR Chapters are being set up in different cities, engaging business and community stakeholders. The engagement of multiple stake-holders, and the need to view philanthropy and development through the lens of clear result-oriented efforts, along with the tremendous non-monetary resources that a corporate organization can contribute, has the potential to make true long-lasting impact.

10,000 children in 3 years.

Being a CSR leader, what according to you are the recent trends in CSR in India? One major trend I see is the way corporates are responding to corporate social responsibility. CSR in India is slowly moving away from charity and dependence and starting to build on empowerment and partnership. Keeping the stakeholder in mind, corporates plan their CSR initiatives, thus increasing the efficacy and efficiency of their CSR activities. Companies today are increasingly sensitive about their social role. Today, corporates are treating CSR as a separate entity and devote attention to it. Most of the corporates create a vision and mission statement often at the corporate level or sometimes at the CSR level that drive their CSR initiative. CSR has positive impact on overall development of organization. Do you think of CSR need to be integrated into the heart of business policy and strategy? Yes. In an increasingly fast-paced global economy, CSR initiatives enable corporates to engage in more meaningful and regular stakeholder dialogue and thus be in a better position to anticipate and respond to regulatory, economic, social and environCSR & Competitiveness | September 2013

that every child and woman has full access to healthcare, nutrition, education and opportunity for growth. Our mission is to ensure that the Setco Foundation touches the lives of at least

Technological innovation, investments in R&D, investing in the right talent and empowering employees to take quick decisions are key areas to combat challenges to reach the global level. Most importantly quality control is a must. In your opinion, what are the most pressing issues in business today? Considering the economic slowdown in every industry including the auto component has taken a hit. Due to inflation and low GDP the economy has slowed down. Excessive regulation, a corrupt or slow bureaucracy, nepotism and lack of transparency is creating a very difficult environment for many local and international businesses to survive. Secondly, there isn’t enough support for mid-level entrepreneurship, which is the heart of job creation and true development. Are there any motivational stories at Setco Foundation which you would like to share?

mental changes that may occur. There is a drive to create a sustainable global economy where markets, labour and communities are able to function well together and companies have better access to capital and new markets. How will you define the Corporate Responsibility in the competitive context? CSR is about being a responsible and sustainable business. It’s about issues like good corporate governance, marketplace transparency, respect for staff, community involvement and reducing environmental impact. If, corporations were to analyze their prospects for social responsibility using the same frameworks that guide their core business choices, they would discover that Corporate Social Responsibility (CSR) can be much more than a cost, a constraint, or a charitable deed – it can be a source of opportunity, innovation, and competitive advantage. How do you rate Indian business vs. global business on corporate responsibility? While CSR in India is still at a nascent stage, globally CSR has moved beyond philanthropic activities and towards promotional, strategic and transformative approaches. These activities may come in many forms and might include a company making efforts to reduce its environmental footprint or donating its expertise to worthy causes. While Indian corporates are successfully impacting communities through philanthropic activities, I believe that strategic and transformative CSR is something we need to actively work towards.

• Dramatic growth in nutrition status of children slum and rural communities from over 80% malnutrition rate to less than 10%. • 100% live births with nearly 52% being girls, indi cating that sex-selection has been eradicat ed. • Meeting basic established Early Childhood Development (ECD) milestones amongst 4-6 year old children. Oral assessments indicate that anganwadi children are developmentally on par with urban affluent (English medium schools) children, where 100% of our children continue to go to primary school, with than 30% securing admission into private schools. Post schooling hours, our anganwadis also convert to a “safe space” for girls and women to share, learn soft as well as vocational skills, and build relationships with each other as a support group. Along with formal workshops, informal discussions on aspirations, health concerns, sex education, pregnancy, counseling all happen during the afternoon hours. Many women have acquired skills to be able to earn some form of remuneration. Many have had to withstand much resistance and restrictions at home to even attend some of our programs. Some have put aside enough for their wedding expenses and trousseaus. Others have insisted on completing school or going to college. Yet others supplement their family income thereby raising their sense of self-worth and self-esteem, as well as their respect within their families and communities.

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Transformational Leadership Style and Lord Rama The personality, behaviour and the character of the leader determines his level of influencing or empowering his followers. Transformational leadership takes place when the followers are raised to a higher level of motivation and morality to achieve a common goal (Burns 1978). Before the concept of transformational leadership was developed by Burns (1978) or by Bass & Avolio in 1994, Lord Rama had demonstrated the concept in relation to his followers. By Enakshi Sengupta & Vijay Kapur

ne ponders to think what has led to the popularity of this epic even after thousands of years after it was written. Ramayana is no ordinary story of a hero waging a battle to rescue his beautiful wife and bringing an end to evil. Valmiki Ramayana is explicit with lessons of life; it has lessons in politics, economics, sociology, human values, management and ethics. Valmiki Ramayana as an epic narrates the journey of virtue to annihilate vice, it contains lessons in wisdom. The lessons talks about ‘dharma’ (righteousness), ‘artha’ (economic development), ‘kama’ (desire) and ‘moksha’ (liberation from desire). In this article we are going to explore only one aspect of this great epic, the leadership style of Lord Rama as depicted in Ramayana as it is not possible to explore all other aspects of this great epic in this article. Sri Rama is an ‘ideal man’ in this epic, an ideal son, and ideal king and an ideal husband. The life of this ideal man becomes an incentive to all men to strive to become an embodiment of dharma (Sivananda 1996). In ancient civilization one can notice that every king and his ruling dynasty had their own style of management and had their style of leadership (Muniapan 2005). It is this style of leadership that has often made a country or an organisation successful. Scholars and researchers in the field of leadership have defined it as a process of influencing the activities of an individual or a group towards achieving a goal. The word influencing can be inter changeably used for motivating, inspiring or even empowering. The personality, behaviour and the character of the leader determines his level of influencing or empowering his followers. Transformational leadership takes place when the followers are raised to a higher level of motivation and morality to achieve a common goal (Burns 1978). Before the concept of transformational leadership was developed by Burns (1978) or by Bass & Avolio in 1994, Lord Rama had demonstrated the concept in relation to his followers. Krishna (1990) provides us with seven characteristics of transformational leadership as was seen in Valmiki Ramayana. • Transformational leaders are change agents. Sri Rama changed the kingship of Kishkhinda from Vali to Sugriva and later was instrumental in changing the kingship of Sri Lanka when he crowned Vibheeshana even before the war. • Transformation leaders are risk takers. Sri Rama was firm and courageous to take risk and depart for Vanaprastha to protect the word given by his

In ancient civilization one can notice that every king and his ruling dynasty had their own style of management and had their style of leadership (Muniapan 2005). It is this style of leadership that has often made a country or an organisation successful.

•

father to queen Kaikeyi. No amount of persuasion could deter him from his path. Transformational leaders are loved by people around them. Sri Rama believed in the inner ability of Sri Hanuman and had great confidence in the Vanara (monkey) senas to defeat Ravana’s army and recover Sita. His positive approach and encouragement motivated them to fight for him. Transformational leaders are believers in value systems. Throughout the narration of Valmiki’s Ramayana we have seen that Sri Rama believes in a set of core values and never deviates from them. “I have promised to protect the rishis (sages) of Dandaka forest, I can give my life, even you O Sita, as well as Lakshmana, but I cannot move away from my promise” (Aranya Kanda). Transformational leaders are lifelong learners. In the life of Sri Rama, we have seen numerous occasions when he received lessons from various sages like Vasistha Muni, Viswamitra Muni and Atri Muni. He took every opportunity to expand his horizon through the process of continuous learning. Transformational leaders can deal with complexity and ambiguities in life. Henri Fayol, a French management writer wrote about the 6th

principle of management when he explained the subordination of individual interest to the organizational interest. This particular strain of character was seen in Lord Rama when he made the decision to banish Sita to uphold the honour of his dynasty. • Transformational leaders are visionaries. Sri Rama strategized his mission to rescue Sita. He had laid down his clear goals of organizing the Vanara (monkey) army which began from constructing a bridge and ultimately in defeating Ravana. Sri Rama exhibited all the above mentioned dimensions of a transformational leader that is needed in today’s society to uphold the welfare of its stakeholders. He won the trust, loyalty, love of the people of Ayodhyay and that of all his stakeholders. Bharat, brother of Sri Rama in Ayodhya Kanda tried to persuade his brother to come back and rule and emphasized how he is loved by his own people, “Everybody wants you to come back and rule Ayodhyay. Everyone wants you and you alone to the kingdom O Rama”. The concluding ‘sargas’(chapters) of Yudha Kanda and Uttara Kanda described the outcome of Sri Rama’s transformational leadership style. Vikasa (2000) described Sri Rama’s leadership in Ayodhyay where he emphasized the peace and prosperity that prevailed in the land. Citizens were righteous, forgiving in nature and forgetting their natural enmity with each other and transforming the land as a replica of Vaikuntha (heaven). Sri Rama’s leadership qualities till date continue to inspire and motivate people not only in India but globally. References: • Bass, B.M. (1985) Leadership and Performance Beyond Expectation. New York, NY: Free Press. • Bass, B.M. and Avolio, B.J. (1994) Improving Organizational Effectiveness through Transformational Leadership. Thousand Oaks, CA: Sage Publications. • Krishnan, V.R. (2000) ‘Training programs on leadership: do they really makes a difference?’,Paper presented in the Proceedings of the Seminar on ‘Role of HR: A New Agenda’,September 2000, Indian Institute of Technology, Delhi. • Muniapan, B. (2005).The Philosophy of Bhagavad Gita and its Relevance to Human ResourceDevelopment in the 21st Century. Paper Presented at SSEASR Conference held on 27–30January 2005 in New Delhi, India. • Sivananda, S. (1996) Beauties of Ramayana. Himalayas, India: The Divine Life Society. • Vikasa, S. (2002) Ramayana. Baroda, India: ISKCON.

Enakshi Sengupta & Vijay Kapur are the Executive Directors of Kohana – A CSR Consultancy (www. kohanacsr.com). They bring with them both academic and practical experience in the field of CSR.

Enakshi Sengupta

Vijay Kapur

CSR & Competitiveness | September 2013

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Fighting Corruption, Enabling Development: The Role of Corporate Governance, Citizen and Employee A rising generation who are committed to materialism, even if often sheltering under the garb of religiosity, has undone some of the reduction in institutionalized evil (e.g. by corrupting education, administration, Parliament and law) and created new institutionalised evils – e.g. by scams and corruption of various new sorts.

By Prof Prabhu Guptara

hen the British East India Company (EIC) became Bengal’s dominant power in 1757, the geographical area which came to be known as India was divided into about a thousand kingdoms.

The problem in our country is that our culture divorces sound from meaning, and imposes a gap between what is said and what is done, as well as between appearance and reality.

Whether Hindus or Muslims, whether Sikhs, Buddhists, Jains or whoever, our forefathers knew caste, kingdoms, and empires, but not one person in our vast land had the political vision of uniting warring kingdoms into a nation-state, because the idea of a nation-state was a foreign one (it was invented in 1648, on the basis of the renewed understanding of the Bible which emerged in Europe from the 13th century and resulted in the Protestant Reformation). From 1757, it took the British just about a hundred years to create the colony which went on to become the nation that is now known as India. That entire enterprise was driven by economics and politics: the EIC was a private company which got itself entangled with politics, as large-scale private enterprise always does. However, in the 18th and 19th centuries, the British did not see history as a process driven by blind accidents of meaningless history. They saw history as working out God’s vision for humanity: God’s standards of truth, law, justice, and mercy creating more and more collective good. Adam Smith’s invisible hand, in their understanding, was nothing other than the hand of God, who wants us to act with Him to build our social, economic and political structures on truth, righteousness and justice. You may miss a lot when you read the Bible, but you can’t miss the fact that the Bible shows a God who is intimately involved in the world’s history, for the purpose of punishing sin and redeeming the repentant, to guide human destiny to a renewed earth and heaven, where our ultimate enemy, death, will be vanquished and eternal life will be the norm. Even though the majority of British colonists did not follow the Bible and were interested only in looting India, Bible-believing British people saw colonization as offering to Abraham’s spiritual descendants a God-given opportunity to play a role in fulfilling God’s purpose to bless India by making it a great nation (see, for example, Genesis 12:2-3 and 18:18). The mission to make India a great nation required bringing our individual sinfulness as well as our socioreligious evils under the searchlight of God’s truth. That could be done only if the Bible was translated and published, and then applied to specific areas of institutionalized darkness such as idolatry, inequality before law, untouchability, infanticide, widow-burning, childmarriage, polygamy, mass illiteracy, corruption, and feudalism. It is only when our social evils encountered the teaching of the Bible that the nineteenth century social reform movement was triggered which is known as the Indian Renaissance (more correctly, the first Indian NAISSANCE, as there had been none earlier, at least not from a social point of view: Thomas the Apostle, for example, and Guru Nanak and others, had tried, but it had not till then resulted in any India-wide re-start of something old, which is what the word “renaissance” means).

CSR & Competitiveness | September 2013

Anyway, Bible-inspired efforts set India on course to become a great nation by nurturing and strengthening three essential areas: 1. cultivating love for truth and virtue through mass education, development of vernaculars, printing press, and journalism; 2. creating a legal environment for development through land reforms, property rights, penal code, modern judiciary, and monetary system; 3. building a nation-wide infrastructure for administration, transportation, and communication. Naturally, the British got many things wrong. but they also got a few things right. However, since Independence, the influence of the Bible, most often mediated through Hindus, Muslims, Sikhs, Buddhists, Jains, Marxists and others, continues to inspire new developments that take us in the direction of truth and justice. At the same time, a rising generation who are committed to materialism, even if often sheltering under the garb of religiosity, has undone some of the reduction in institutionalized evil (e.g. by corrupting education, administration, Parliament and law) and created new institutionalised evils – e.g. by scams and corruption of various new sorts. So we now have in our country a patchwork of institutionalized good and institutionalized evil, and what we would like to discuss is the role of corporate governance in reducing institutionalized evil. The impact of the Bible has meant that, except for a few diehard feudalists found in the RSS and BJP (and even in those organizations, their influence is less than it once was – though it may rise again if Modi delivers electoral victories), all the public discourse in our country honours concepts of inclusive growth, secularism, equality, liberty, fraternity and democracy. The problem in our country is that our culture divorces sound from meaning, and imposes a gap between what is said and what is done, as well as between appearance and reality. How does our culture divorce sound from meaning? Take “Aum” for example. It is a very powerful sound in our culture, and you will find people discussing the healing and other qualities of the vibrations of that sound. But what does Aum mean? Well, it means whatever you want it to mean, from nothing to everything: I have heard at least 50 different explanations of what it means. The fact is that you can come up with your own interpretation, and if people like it, then it becomes an acceptable or even the most acceptable explanation. That is why the role of PR is so important in our country. Our culture does not emphasise what is real, what is true, so all that we are left with in our dominant culture is propaganda - which is why Modi hires so many hundreds of people in Bangalore and other centres to pump out his propaganda in every major newspaper and radio and TV station in India, and now even abroad.

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We may have good laws but, even those good laws, such as panchayati raj, can become a means of oppressing the lower castes (and that is the case even when the lower caste person becomes the Panchayat Sarpanch, she or he is simply manipulated by the upper castes and if the person refuses to comply has been known to have been beaten up, raped or even killed). Not only does our culture divorce sound from meaning, our culture also imposes a gap between what is said and what is done. How often have you heard a statement similar to: “Sahib ek minute lagega” (when the speaker has no idea of how long it will take, or even knows that it will take at least half an hour). Of course, part of the explanation is our Indian concept of “politeness” (which actually means an inability or unwillingness to tell the truth) and part of the explanation, in this particular case, is that our culture has no concept of the importance of time, because the kal that has gone (yesterday) is the same word as the kal that is to come (i.e. tomorrow): the lack of the importance of time is structured into our language, into the way we think. If this life is only one among innumerable births, then why is time in this life important? The time that is given to us in this world is only important if this is the only life we have and if, after this life is completed, we have to give an account to Somebody regarding how we have spent each minute and each second. But these are ancillary matters, the key point that I would like us to keep in mind is that, whatever the reasons, our culture has a deep and profound gap between what is said and what is done. Of course that is part of a universal human tendency, but one’s culture can either reinforce that tendency (as in our own culture) or it can struggle against it, as in Protestant cultures (e.g. of Northern Europe). So our culture divorces sound from meaning, and it accepts a large gap between what is said and what is done; how does our culture split appearance and reality? Well, we could discuss at length the notions of izzat and shaan versus the real quality of relationships in the home, or even the real quality of life in the home. If I am willing to murder an unborn child or my grown-up daughter for the sake of izzat, what kind of izzat is that? Is it not an attempt to preserve an appearance, for the sake of which people are willing even to eliminate the reality of the life of my own flesh and blood? In our culture, we have to struggle against the gap between appearance and reality (the Bible, Mathew 7.15); we have to struggle against the gap between sound and meaning by letting our Yes mean Yes (Mathew 5.37); we have to struggle against the large gap between what is said and what is done by being people who, once we have agreed to do something, will do it even if it then turns out to be to our disadvantage (the Bible, Psalm 15.4). If these are some ways in which evil is institutionalized in our country, what are some ways in which good is institutionalized? Well, consider our Constitution. Clearly CSR&&Competitiveness Competitiveness| |September September2013 2013 CSR

it institutionalizes values that run counter to our culture such as democracy, freedom from hunger and education for all. But it is for you to tell me to what degree we actually have liberty, equality and fraternity in our country. Do we have the rule of law or has the law itself been turned, at least in many places and occasions, into becoming itself an instrument of exploitation, for example by the police on the road? We may have good laws but, even those good laws, such as relating Panchayati Raj, can become a means of oppressing the lower castes (and that is the case even when the lower caste person becomes the Panchayat Sarpanch, she or he is simply manipulated by the upper castes and if the person refuses to comply has been known to have been beaten up, raped or even killed). Of course such malpractices do not mean that the institution of Panchayati Raj is somehow wrong. No. Malpractices rather mean that citizen power is required to identify malpractices, report malpractices, and pursue malpractices through the institutions of redress till wrongdoers are identified, judged and punished. Every case of a wrongdoer being punished is a blow for the right, and a demolition of the culture of injustice in our country. Exactly for that reason, every instance of the honouring (for example by a Prize or Award or Padma Bhushan) of a person who has done something good, should be celebrated because it strengthens the kingdom of Right. Of course a Padma Bhushan or Award or Prize might be given to someone unworthy, and then it is our duty to expose that and to do something about it. However, the human tendency is to talk too much of the negative and not enough of the positive. As the Bible puts it: Whatsoever things are true, whatsoever things are honest, whatsoever things are just, whatsoever things are pure, whatsoever things are lovely, whatsoever things are of good report; if there be any virtue, and if there be any praise, think on these things. We should focus our minds on such things - because if we don’t do so, it is too easy to become depressed, to become apathetic and withdrawn from the effort to build up our country, our people and ourselves. Of course, governance is not only about where we should focus our attention, or about values. It is also about creating the right structures. That is why, at the highest levels in our political structure, we have a division of powers between the legislature, the executive, and the courts. And that is why our founders also institutionalized the freedom of the press. Of course, evil always tries to subvert each of these, and it is up to us to use the instruments offered to us by all these to fight against what is wrong and to fight for what is right.

Adam Smith’s invisible hand, in their understanding, was nothing other than the hand of God, who wants us to act with Him to build our social, economic and political structures on truth, righteousness and justice.

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Fighting Corruption, Enabling Development: The Role of Corporate Governance, Citizen and Employee

You may have noticed that China has detained XuZhiyong, the promi-

You may have noticed that China has detained XuZhiyong, the prominent lawyer known for his support of human rights and greater government transparency, merely on suspicion of “gathering people to disturb public order in a public place”. Though India also has somewhat similar incidents occasionally, they are unconstitutional in India whereas they are entirely in accordance with the law in China. By contrast, if an IPS officer is doing something wrong in India, you have the right to gain access to that officer’s superiors - or, if even that person refuses to act rightly for any reason, you have the right to gain access to the courts; you certainly have the right to gain access to the press – as well as the right to have access to the public, to organize a mass protest. Of course, all these may not be enough in particular cases, and we are sometimes defeated by evil in particular cases, but followers of the Light are called to rise again and

nent lawyer known for his support of human rights and greater government transparency, merely on suspicion of “gathering people to disturb public order in a public place”. Though India also has somewhat similar incidents occasionally, they are unconstitutional in India whereas they are entirely in accordance with the law in China.

fight again, in spite of defeats and reversals, whether in terms of their own personal and family lives or in terms of social and political life. Perhaps you also noticed that Zhang Xiaoming, China’s top representative in the Chinese colony, Hong Kong, met pro-democracy lawmakers this week for the first time since the territory was taken over by China in 1977. This would be simply incredible in India, where we have had talks right from the start, perhaps not as often as would have been desirable, even with separatists in the south, north-east and north of our country. To continue with the theme of the right structures of corporate governance in our country: these include not only those of the Constitution at the highest level, or exalted things such as the separation of powers but, more recently, quite down to earth things such as Public Interest Litigation (PIL) and Right to Information (RTI) and Right to Educaiton (RTE) and now the Right to Food (RTFood). Naturally, not everything is fine with these, let alone their implementation, but you and I need to be active and help to implement the system that is envisaged, and then identify how best to improve the operation of the system, whether in its implementation or even in the way it should be organized.

In the commercial sector, we have the proposed governance norms for all publicly traded companies produced by SEBI (Securities and Exchange Board of India), which are actually tougher than corporations face in more advanced economies. For instance, the CEOs in only about half of India’s top 50 listed companies still double as chairmen, and they will be required to split their roles (those that want to continue combining the roles will need the explicit approval of their shareholders). Further, SEBI wants to require companies above a certain size to appoint at least one independent director from among small shareholders. Still further, SEBI is apparently going to require independent directors who resign their position to publicly disclose the reason(s) for their departure - and “personal reasons” won’t be considered a satisfactory answer if directors are only giving up one of multiple directorships. Up till recently, Company founders in India have been happy with eager-to-please boards: you may recollect the way independent directors of Satyam Computers rubber-stamped the former CEO’s desperate attempt to cover up fraud in December 2008. Of course, changing the rules is no guarantee of future good behaviour. Even boards that boast of independent leadership can do better. Infosys Technologies, the only Indian entry last year in CLSA’s selection of 20 large Asian companies with best corporate governance, lists KV Kamath, a former banker, as a non-executive chairman. And a former Infosys CEO holds the position of executive co-chairman. Meanwhile, Kamath continues to be “independent” chairman at ICICI, even though he was its founding CEO. So there are all kinds of holes and challenges, but the fact is that the web of corporate governance is gradually becoming more and more tight, and that is the case not only in India but also globally. Let me summarise. Corporate governance, whether at the level of an NGO, a company or the country as a whole, has three dimensions: a) the dimension of whether the right values are embedded and nurtured; b) the dimension of whether the overall structure helps or hinders; and, c) the dimension of individual initiative and willingness to sacrifice one’s own time and energy and money and interest that is required in order to fight corruption and enable development. I have focused on how these dimensions are essential to fighting corruption, but I am sure that you can see how these three dimensions are also necessary to enabling development.

Prabhu Guptara is Distinguished Professor of Global Business, Management and Public Policy, William Carey University, India; and Member of the Board, Institute of Management, University of St. Gallen, Switzerland. Born and educated in India, he is based in Europe, and works worldwide, helping Boards of companies with strategic, organisational and market-related issues. Personal website: www.prabhu.guptara.net; Blog: www.prabhuguptara.blogspot.com

CSR & Competitiveness | September 2013

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CSR : An Instrument of Change for Public Library Development

By Dr. PSN Murthy

Society for Promotion of Public Libraries (SPPL) was established in 2011 at Visakhapatnam to develop and Promote Public Libraries in the region through Corporate Social Responsibility. Since its inception, the society has organized various programmes including four seminars, a book and a special issue of DJLIT on “Corporate Social Responsibility and Public Libraries”.

One ponders to think what has led to the India with 74.04 % literacy rate stands at 171 position among 205 countries of the world, which is a clear reflection of our education system. Public Libraries are said to promote adult and non-formal education, but only 20% of our population has access to public libraries in our country even after 66 years after Independence. The state of Andhra Pradesh ranks sixth after Karnataka, Maharashtra, Rajasthan, Kerala and Orissa with only 21.4 libraries for one lakh population. In a Knowledge Society, Public Libraries play an important role in Education, Social and Cultural Development of the local community in particular and Society in general. The present public library system in our country needs a total revival and transformation for which we may have to adopt a different approach for generating resources, enabling public libraries to recover from crisis and serve the local communities. Since libraries are public institutions, the society has a greater role and responsibility towards their survival. One such instrument is the Corporate Social Responsibility (CSR) through which public libraries can be revived. CSR is a wonderful concept which can be applied to public libraries to enable them to stand on their feet. Just like corporate firms adopting villages and schools, they can also adopt local public libraries and serve the local community. If public libraries are given the necessary resources and infrastructure, they can eradicate illiteracy and enable the country to become a Knowledge Society.

Current status of Public Libraries Historically, Public Libraries which began as peoples’ movement have gone into the hands of the respective State Governments with the introduction of the First Public Library Act in 1950. It is disappointing to know that the public libraries in our country are in a pathetic condition unable to provide even the basic services. There are many reasons attributed to this stagnation; the foremost being lack of adequate funds. The very idea of maintaining vast number of public libraries from the revenue generated through ‘library cess’ is indeed a permanent handicap for their growth. As long as maintenance of public libraries is linked with the library cess, their survival becomes uncertain and growth ‘stunted’. Although the Raja Rammohun Roy Library Foundation (RRRLF), Kolkata provide grants for the purchase of books, maintaining these libraries has become a major challenge mainly due to lack of funds.

What is Corporate Social Responsibility? Corporate Social Responsibility (CSR) has become an increasingly significant phenomenon in today’s business environment, and it is an inevitable reality. The rationale for CSR is that business cannot succeed if there is no healthy society; hence, CSR is the CSR & Competitiveness | September 2013

responsibility of business organizations towards the society. With businesses focusing on generating profits, sustainability was not a popular concern among companies up until recently. Business organizations realize that corporate sustainability requires strong support from the community and few organizations have succeeded in following the CSR policy. Thus organizations made efforts to align CSR with corporate strategy enabling them to balance its employees, customers, suppliers and government. Further, companies are beginning to realize the importance of being ethical while running their company operations and to attract and retain employees and customers.

Is CSR Philanthropy? The Indian business has traditionally been socially responsible ever since it was given its due importance. From inactive philanthropy to the incorporation of the stakeholders’ interest in the business model, the Indian business sector practiced various methods of discharging its social responsibility. In India companies have funded education and social welfare activities even during the pre-independence era as part of their business and corporate philanthropy. But there is no record of any effort in supporting the establishment of Public Libraries in different States. In 1892, Jamshedji Tata established the JN Tata endowment trust to provide higher education for deserving Indians and 3500 scholarships were awarded so far. In 1979, Tata Steel rural development scheme was established which covers 700 villages in and around Tata steel. It helps for education, health care, drinking water, adult literacy and vocational training. The Tata’s have so far spent Rs 1.5 billion on social services, the highest amount any corporate house in the country had spent. The Infosys software company which started in 1981 by Mr. N. R Narayana Murthy follows socially responsible and sustainable path in conducting business. The company shares its wealth with the society and employees and the company had spent more than Rs. 50 million on social activities. The ‘Infosys Foundation’ undertakes many community development activities like education, health, environment and rural development. In one of the largest rural education programs in the country, the foundation has donated 10,200 sets of books in Karnataka alone under its Library for Every Rural School project. Through this program the Foundation has set up more than 10,150 libraries in rural government schools by providing minimum of 200 books, depending on the strength of the school, with the cost ranges between Rs. 2000 and Rs. 3000. Various subject books donated include science, history, mathematics, GK, grammar, literature, geography, vocational training and fiction to cater to the interests of students in all age groups. In another innovative project that facilitates higher

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CSR : An Instrument of Change for Public Library Development

firms and PSUs can seek detailed proposals from local libraries for augmenting their resources, facilities and services. On the lines of CSR guidelines, the SPPL has prepared the following list of public library needs that corporate firms and PSUs can support under their CSR mandate: • Provide funds or procure books for neo-literates and youth; books on competitive examinations and self study; books on Language skills and personality development, etc. • Provide funds or subscribe and deliver the required newspapers and magazines. • Provide funds or purchase and supply reference books like encyclopaedias, dictionaries, handbooks, etc., • Provide funds or arrange to procure and supply the required desktop computers with internet facilities and peripherals like printers and Xerox machines. • Provide funds or undertake the extension or renovation of existing library buildings • Provide funds or undertake the construction of new library buildings wherever they are needed.

We have seen the business sector generating wealth and value for the shareholders in the last sixty years, but simultaneously we also have the problems of poverty, unemployment, illiteracy, malnutrition etc. facing the nation. Against this background, the Ministry of Corporate Affairs has brought out a set of voluntary guidelines on CSR. In April 2010, the Department of Public Enterprises has issued Guidelines on CSR for Central Public Sector Enterprises (CPSEs).

Public Libraries should become proactive and seek alternative means of resource mobilization instead of depending on Government funds. Public Libraries can benefit a lot by seeking funds from the local PSUs and Corporate firms under the CSR mandate.

CSR is not philanthropy and CSR activities are purely voluntary what companies will like to do beyond any statutory requirement or obligation. Considering its importance in human development, the Companies Bill has been recently revised and made CSR mandatory for all companies including the PSUs to spend 2% from their average net profits on CSR activities. It is felt that the new Companies Bill of 2012 has emerged as a contemporary legislation and a worthy replacement to the time tested Companies Act, 1956.

How Public Libraries can benefit from CSR? Under the umbrella of Public-Private-Partnership the Government of India has initiated many schemes for creating public facilities like road transport, drinking water, education, health & sanitation, environment and community development with phenomenal success. If public libraries are also included in this ‘wish list’ we can foresee a major change in the development index of our country. If Public Libraries can get the necessary support from corporate firms, the society can move towards a knowledge-based society. The National Library facilities and services of the country over the years have been plagued by financial stringency. The National Knowledge Commission also felt that industrial and corporate houses and private agencies should be encouraged through fiscal incentives to support the development of libraries and library services in India. Public Libraries deserve to get support from all the corporate companies and PSUs because they are part of the same society. By spending some amount for the development of Public Libraries in the region, they can play a vital role in the development of the local communities. There are many corporate firms which are successfully implementing CSR activities through tie ups with NGOs in many states. In a similar way, the Society for Promotion of Public Libraries (SPPL) was established in 2011 at Visakhapatnam to develop and Promote Public Libraries in the region through Corporate Social Responsibility. Since its inception, the society has organized various programmes including four seminars, a book and a special issue of DJLIT on “Corporate Social Responsibility and Public Libraries”. It is suggested that all Public Libraries should become proactive and seek alternative means of resource mobilization instead of depending on Government funds. Public Libraries can benefit a lot by seeking funds from the local PSUs and Corporate firms under the CSR mandate. Similarly, corporate

• Provide funds or arrange to procure the required library furniture such as book shelves, reading tables and chairs, etc. • Provide funds for salaries or depute the required library staff and pay their salaries directly. • Mobilize the collection of used books and donate them to public libraries. • Adopt one or more public libraries in the vicinity of the factory and support them financially.

Conclusion Indian companies and PSUs have already accepted that business is not just for making money, but also an opportunity to serve the society. There is a need to drive the Public Sector Units towards greater accountability on Corporate Social Responsibility since it has a positive impact not only on development of community but also on their business promotions. It may not be an exaggeration to say that CSR by corporate India is an important effort towards inclusive development, i.e. poverty alleviation and upliftment of the marginalised poor in the society and education of the masses through Public Libraries. The National Knowledge Commission (NKC) has also very clearly indicated that libraries should adopt new models such as Public-Private-Partnership for their growth and development. Unless we realize the importance of public libraries in economic and social development of our society, the money spent by the Government on education, health, sanitation, environment, community development and other welfare schemes is considered as wasteful expenditure. Considering the importance of public libraries in eliminating illiteracy among the poor and marginalised people, it is envisaged that the concerned ministries of education, culture and corporate affairs should include public libraries also in their list of beneficiaries under corporate social responsibility. Let us remember what John D. Rockefeller said - “Think of giving not as a duty but as a privilege”.

References • •

•

• •

Kinjal Shah. An Indian perspective of Corporate Social Responsibility. In HRM review. January 2008. pp. 14-18. Government of India, Ministry of Corporate Affairs: National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business; 2011. Government of India: National Knowledge Commission Report. 2009. Available at http://www.knowledgecommission. gov.in Sailaja: Emerging models of Corporate Social Responsibility. In HRM review. January 2008. pp. 10-13. www.indiacsr.in

Dr. PSN Murthy is the Founder President of Society for Promotion of Public Libraries, Visakhapatnam. He is deeply involved in the development of public libraries and NGO managed libraries in and around the Visakhapatnam under CSR mandate. He has served Andhra University and Visakhapatanam Steel Plant as Manger (Library). He holds a Post Graduate Degree in Commerce from Andhra University, Visakhapatnam and a Masters degree in Library & Information Science from Dr BR Ambedkar Open University, Hyderabad. He can be reached at snmpaluri@gmail.com

Dr. PSN Murthy CSR&&Competitiveness Competitiveness| |September September2013 2013 CSR

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Canara Bank to Go Aggressive in CSR Activities

visionary banker, Mr. R.K. Dubey, Chairman and Managing Director of Canara Bank who introduced several structural changes in his banking career spanning well over 36years conferred upon a Lifetime Achievement Award. The Award was presented at a National Meet on Occupational Hazards, Safety and Fire which currently underway at a city hotel in Panaji Goa and organised by New Delhi based NGO that promotes Safety at Workplaces among other objectives. Speaking on the occasion in response to the recognition, Mr. Dubey said the journey has been long and he has done some-

thing, but, many things are to be done. Now new companies act which passed by parliament recently plays emphasis on Corporate Social Responsibility (CSR) activities. We are a 100 plus years old Bank. Canara Bank wants to go aggressive in CSR activities. We have been focusing on education, hygienic health, eye care, cancer care and other initiatives. The bank has helped and funded the construction of hundreds and thousands of toilets in girls schools across 26 lead districts all over the India. The Canara Bank, along with the Syndicate Bank has taken up training in rural employment of the rural folks, he said. And added that they have set up Artisan Centers in Kerala, Karnataka and Tamil Nadu to help talented artisans and promote their artifacts. The 18months program has yielded very good results, he said. And added that the Bank would like to nurture countries old heritage through CSR activities of the bank.

R.K. Dubey CMD, Canara Bank

HCC Become Signatory to ‘WASH’ - A Global Programme by WBC for Sustainable Development M

UMBAI : Hindustan Construction Company Ltd ( HCC) has become the first Indian company to become a signatory of ‘WASH’ – a global programme by Geneva-based World Business Council for Sustainable Development (WBCSD). WASH – which stands for Water, Sanitation and Hygiene – ensures a corporate institution’s commitment to provide appropriate access to safe water, sanitation and hygiene to all employees across all premises under company control. The WBCSD pledge for access to safe water, sanitation and hygiene at the workplace, together with guiding implementation principles, was launched during the World Water Week in Stockholm on Thursday, September 5, 2013. The day saw the Council launching the manifesto for WASH as well. By becoming the first and only Indian signatory company so far, HCC reiterates its commitment towards its large, diverse workforce. The WASH pledge will remain in force over the next three years. HCC is a strong believer in implementing strategic processes for sustainable development that put people right at the centre of attention and subsequent development. Through effective planning, investments and actions, responsible corporates such as HCC define a

society’s joint economic, social and ecological goals. HCC is acknowledged for its business model that enables responsible, equitable growth – decoupled from environmental impact. Due to its active participation in such initiatives and sheer commitment, HCC is now recognised as one of the key player in the world of water conservation in the infrastructure sector. HCC began to focus on water conservation as a consequence of its concerns about the business risks posed by two types of shortage – physical scarcity, where there is not sufficient water to meet demand, and economic scarcity, where communities lack the infrastructure and/or financial capacity to access the water they require.

United Nations’ CEO Water Mandate. HCC has demonstrated its water consciousness and commitment to water conservation by implementing a series of rigorous and improved water management practices at its project sites. HCC has also promoted the advocacy of actions and measures at various national and international forums towards the optimum utilization of water. During FY 2012-13, HCC had achieved 39% water use efficiency at its direct operations. In recognition of its Sustainability Practices, HCC was accorded the distinction of being the only Indian company to be featured amongst ten global company case studies in a Climate Report issued by the United Nations’ Global Compact at the Rio+20 conferences in Brazil in June 2012. HCC was also adjudged for `Best Social Investment Strategy’ by the World CSR Congress and accorded the ‘Civic Award for Social Development’ by the Bombay Chamber of Commerce and Industry. HCC’s Sustainability reporting for 2010, 2011, 2012 and 2013 have been consecutively categorized by the Global Reporting Initiative (GRI) with Application Level Check A+.

Ajit Gulabchand, Chairman and Managing Director, HCC became the first Asian signatory to endorse the

Centre writes to Chhattisgarh Government on CSR Issue

EW DELHI: Ministry of Corporate Affairs has written to the Chhattisgarh government on the state’s proposed CSR policy which reportedly asks certain companies to contribute funds to a Chief Minister Community Development Fund as part of Corporate Social Responsibility norms. The proposed move comes at a time when the Centre has notified the new Companies Act, 2013, which mandates large companies to contribute 2 % of their profit on CSR activities from the next fiscal onwards. Commenting on reports that Chhatisgarh government’s CSR policy may not be in conformity with the Companies Act, Corporate Affairs Minister Sachin Pilot said: “CSR (rule) is now passed through a bill in Indian parliament.

CSR & Competitiveness | September 2013

able and we have tried to clarify that to the government of Chhattisgarh,” he added. When contacted, N Baijendra Kumar, Principal Secretary in Chhattisgarh government’s Department of Commerce and Industries, told over telephone, “We have made a CSR policy to make spending by companies more transparent and responsible.” “If a government is trying to create another mechanism by trying to get money deposited in chief minister’s welfare scheme, or whatever it is called, that is not tenable,” Pilot told reporters at an event here.

“We have not received any such letter till now as and when and if it comes we will react appropriately. Surprised we come to know of such letters through press during this modern era of fast communication,” Kumar said.

“...we have already written to the chief secretary of Chhattisgarh, pointing out that you can’t then pocket this kind of money on what is ... (a) national law through Companies Act, and so that is not legally ten-

The new Companies Act makes it mandatory for profit making companies reporting Rs 5 crore or more profits in the last three years to spend at least 2 per cent of their average profits towards CSR activities.

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Land Acquisition Bill Becomes Law After President’s Assent

Development Plan

EW DELHI: The Land Acquisition Bill, passed by Parliament during the Monsoon Session to replace a 119-year-old legislation, became a law with President Pranab Mukherjee giving assent to it on September 27, 2013.

A Development Plan has to be prepared laying down the details of procedure for settling land rights due but not settled and restoring titles of tribals on alienated land by undertaking a special drive together with land acquisition. The Plan must also contain a programme for development of alternate fuel, fodder and non-timber forest produce resources on non-forest lands within a period of five years sufficient to meet the requirements of tribal communities as well as the Scheduled Castes.

“The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2013 has received the assent of the President of India,” a Law Ministry release said. The historic legislation would provide just and fair compensation to farmers while ensuring that no land could be acquired forcibly. The Bill was passed by both Houses of Parliament with overwhelming majority. The new law stipulates mandatory consent of at least 70 per cent for acquiring land for public-private-partnership (PPP) projects and 80 per cent for acquiring land for private companies. The Rural Development Ministry is in the process of framing rules for the new Act. An advisory committee will be set up shortly to vet the said rules in consultations with various stakeholders. It was passed by the Lok Sabha on August 29 and the Rajya Sabha on September 4, and was referred to the Lower House to approve the three new amendments passed by the Upper House. The three Rajya Sabha amendments, related to exemptions for irrigation projects, were passed by the Lower House without any discussion. In both the Houses, most parties supported the law but gave their suggestions to make it more farmer-friendly.

Land Acquisition Bill is Not Against Industrialisation, Says Jairam

One-third to be paid up-front

package, which the Minister said is the main cause of growth of naxalism. He said, the era of forcible acquisition is over and added that if the new Land Acquisition Act is implemented properly, it will put an end to inhumane displacement of tribals from forests and check the Maoist problem. Land Acquisition Bill Gives Special Concessions to SCs & STs The Land Acquisition Bill, which has been renamed as “The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2012 has a separate Chapter to protect the interests of tribals and those belonging to the Scheduled Castes. Where acquisition does take place it shall be done as a demonstrable last resort. The Bill stipulates that as far as possible no acquisition shall take place in the Scheduled Areas. And where such acquisition does take place it has to be done with the approval /consent of the local institutions of self-governance (including the autonomous councils where they exist).

Union Minister for Rural Development Jairam Ramesh said that the new Land Acquisition Bill is not against industrialisation and urbanisation as there is no bar on purchase of private land. He said the new Act renamed as the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2013 will come into force only in such cases where the land will be acquired by Central or State Authorities for any public purpose. Briefing the media Jairam Ramesh said, the new Act which will be notified within three months will be applicable to SEZ ( Special Economic Zone) Projects and there will be no change in the land use except in certain cases through laid down procedures.

Following measures have been incorporated in the Bill to protect the interests and concerns of the Scheduled Castes and Scheduled Tribes:

He said, the thirteen Central Acts which are outside the purview of the new Act have to conform to the provisions of compensation and Rehabilitation and Resettlement package within one year of the coming into force of the legislation. He said, there is a balance in the new Act as it serves the the interests of all sections of society. Terming the bill as a progressive piece of legislation, the Minister said it gives priority to the interests of the farmers, landless labourers, dalits and tribals, which he also termed as national interest. He also allayed the fears that the new Act gives absolute powers to the collectors as far as land acquisition, Award, compensation and rehabilitation are concerned and stated that unlike in the old Act, the above provisions have been clearly enunciated in the new law thus curtailing the discretionary powers of the District Magistrates.

Acquisition, Rehabilitation and

Minister criticised the Public Sector Undertakings (PSUs) for the large scale displacement of people particularly tribals in states like Chhattisgarh, Odisha and Jharkhand for executing projects mainly mining and coal without adequate compensation and R&R

CSR & Competitiveness | September 2013

In case of land being acquired from members of the Scheduled Castes or the Scheduled Tribes, at least one-third of the compensation amount due shall be paid to the affected families at the outset as first instalment and the rest shall precede the taking over of the possession of the land. Resettlement in the same Scheduled Area The Scheduled Tribes affected families shall be resettled preferable in the same Scheduled Area in a compact block so that they can retain their ethnic, linguistic and cultural identity. Land for Community The resettlement areas predominantly inhabited by the Scheduled Castes and the Scheduled Tribes shall get land, to such extent as may be decided by the appropriate Government free of cost for community and social gatherings. Alienation Of Tribal Lands To Be Void Any alienation of tribal lands or lands belonging to members of the Scheduled Castes in disregard of the laws and regulations for the time being in force shall be treated as null and void: and in the case of acquisition of such lands, the rehabilitation and resettlement benefits shall be available to the original tribal land owners or land owners belonging to the Scheduled Castes. Fishing Rights The affected Scheduled Tribes, other traditional forest dwellers and the Scheduled Castes families having fishing rights in a river or pond or dam in the affected area shall be given fishing rights in the reservoir area of the irrigation or hydel projects.

The Right to Fair Compensation and Transparency in Land Resettlement Law, 2012, replaces a British-era law of 1894. It provides for fair compensation to owners whose land is taken over, brings transparency to the process and lays down measures for rehabilitation of those displaced.

If Resettled Outside Scheduled Area Then Additional Benefits Where the affected families belonging to the Scheduled Castes and the Scheduled Tribes are relocated outside of the district then they shall be paid an additional twenty-five per cent rehabilitation and resettlement benefits to which they are entitled in monetary terms along with a one-time entitlement of fifty thousand rupees. Higher Land-for-Land Area for SCs/STs In every project those losing land and belonging to the Scheduled Castes or Scheduled Tribes will be provided land equivalent to land acquired or two and a one-half acres, whichever is lower (this is higher than in the case of non-SC/ST affected families). Additional Amounts In addition to a subsistence amount of Rs 3000 per month for a year (which all affected families get), the Scheduled Castes and the Scheduled Tribes displaced from Scheduled Areas shall receive an amount equivalent to Rs. 50,000.

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Literacy can Eradicate Poverty, Achieve Gender Equality and Ensure Sustainable Development In a country like India, literacy is the main foundation for social and economic growth. When the British rule ended in India in the year 1947 the literacy rate was just 12%. Over the years, India has changed socially, economically, and globally. After the 2011 census, literacy rate India 2011 was found to be 74.04%.

By Dr. H. R. Keshavamurthy

In the year 2010, the country achieved a historic milestone when the Right of Children to Free and Compulsory Education (RTE) Act, 2009 became operative. The enforcement of the RTE Act represented a momentous step forward in our country’s struggle for universalising elementary education.

Literacy is a human right, a road towards empowerment and a means for social and human development. Educational opportunities depend on literacy. Literacy is essential for eradicating poverty, reducing child mortality, curbing population growth, achieving gender equality and ensuring sustainable development, peace and democracy. September 8 is observed as the International Literacy Day by UNESCO since 1966. Its aim is to highlight the importance of literacy to individuals, communities and societies. This year’s International Literacy Day was dedicated to “literacies for the 21st century” to highlight the need to realize “basic literacy skills for all” as well as equip everyone with more advanced literacy skills as part of lifelong learning. The essence and role of education articulated in our National Policy on Education (NPE), continues to be relevant even today. It states that education is essential for all and is fundamental to our all-round development. Education develops manpower for different levels of the economy and is also the platform on which research and development flourish to take nation towards self-reliance. In sum, education is a unique investment in the present and the future.

ernment has made strict rules for female equality rights. The literacy rate in India has shown significant rise in the past 10 years. Kerala is the only state in India to have 100% literacy rate. It is followed by Goa, Tripura, Mizoram, Himachal Pradesh, and Maharashtra, Sikkim. The lowest literacy rate in India is seen in the state of Bihar. Realising the importance of literacy, Government of India (Department of School Education & Literacy) endeavours to: Provide free and compulsory education to all children at elementary level; Become a partner with the States and Union Territories to reinforce the national and integrative character of education; Build a society committed to Constitutional values with the help of quality school education and literacy; Universalize opportunities for quality secondary education and Establish a fully literate society.

The literacy rate in India has improved a lot over the last one decade. Especially after the implementation of free education in the villages the literacy rate has gone up tremendously in states like Himachal Pradesh and Rajasthan. In a country like India, literacy is the main foundation for social and economic growth. When the British rule ended in India in the year 1947 the literacy rate was just 12%. Over the years, India has changed socially, economically, and globally. After the 2011 census, literacy rate India 2011 was found to be 74.04%. Though this seems like a very great accomplishment, it is still a matter of concern that still so many people in India cannot even read and write. The numbers of children who do not get education especially in the rural areas are still high. Though the government has made a law that every child under the age of 14 should get free education, the problem of illiteracy is still at large.

Now, if we consider female literacy rate in India, then it is lower than the male literacy rate as many parents do not allow their female children to go to schools. They get married off at a young age instead. Though child marriage has been lowered to very low levels, it still happens. Today, the female literacy levels according to the Literacy Rate 2011 census are 65.46% where the male literacy rate is over 80%. The literacy rate in India has always been a matter of concern but many NGO initiatives and government ads, campaigns and programs are being held to spread awareness amongst people about the importance of literacy. Also the gov-

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Sarva Shiksha Abhiyan and Mid Day Meal at primary level.

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Rashtriya Madhyamik Shiksha Abhiyan , Model Schools at Secondary level.

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Vocational Education, Girls’ Hostel, Inclusive Education of the Disabled.

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Saakshar Bharat for Adult Education.

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Mahila Samakhya for Women’s education.

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Infrastructure Development of Minority Institutions; Scheme for Providing Quality Education in Madarsas for Minority Education.

A good quality basic education equips pupils with literacy skills for life and further learning; literate parents are more likely to send their children to school; literate people are better able to access continuing educational opportunities; and literate societies are better geared to face challenges. Author is the Director (M&C), Press Information Bureau, Kolkata

CSR & Competitiveness | September 2013