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India Inc And Inclusive GrowthIndia Inc And Inclusive GrowthCSR – A Win – Win business CSR – A Win – Win business modelmodel
Dr P V S Jagan Mohan RaoDr P V S Jagan Mohan Rao M Com, LL B, FCS, FICWA, Ph DM Com, LL B, FCS, FICWA, Ph DCompany Secretary - HyderabadCompany Secretary - Hyderabad
Past President The Institute of Company Past President The Institute of Company Secretaries of India – New DelhiSecretaries of India – New Delhi
Corporate Social Responsibility - CSR
Demonstration of
- a commitment to society’s values,
- contribute to society’s social goals
- environmental goals and
- economic goals
-- through action
CSR
Insulate society from
- the negative impact of
- company operations
- Bhopal gas leak or BP oil leak
- products and
- services
CSR
Share benefits
- of company activities
- with key stakeholders
- as well as with shareholders
Britania Industries
Distributes biscuits for nutrition supplement for school children
through Naandi Mid day meal scheme
CSR
Demonstrate that the company can make more money by doing right thing of inclusive growth- Inclusive growth – growth of all
stakeholders including employees - Midhani
Midhani - Hyderabad
Loss making company
Turned into profit making company
Employee contribution
Employee morale and ownership
Swami Vevekananda said Every Soul is Protentially Devine
The Japan – Supervisor
Naandi Foundation
Promoted by industry leadersGovernment – Corporate - Civil Society partnership
Mid-day meal scheme – more than 1 lac meal cooked in one place and distributed to schools- Hyderabad
- Competition for the schemeCorporates can avoid reinventing the wheel
Nanhi Kali – girl child schemeMahindra & MahindraCapgemini
Dr Reddy’s Foundation
"Everyone has a purpose in life and a unique talent to give to others. And when we blend this unique talent with service to others, we experience the ecstasy and exultation of own spirit, which is the ultimate goal of all goals."
- Dr. Anji Reddy
LABs – Livelihood Advance- ment Business School
While employment avenues are increasing rapidly in India’s fast-
growing economy, they are not being filled by people with compatible skill-sets.
DRF attempts to bridge the divide between those who have access to opportunities and those who are increasingly being marginalized.
LABS addresses the needs of youth (18-35 years) who are constrained by low income levels,
inadequate skills, irregular employment, absence of opportunities for training and
development, family indebtedness and little bargaining power at the economic or social level.
To enable these youth to gain a foothold in the competitive job market, LABS gives them livelihood and soft skills in an environment of interactive learning and mentoring that develops their inherent strengths.
The curriculum is constantly upgraded in tune with industry requirements. The aspirants are also put through intensive Communicative
English, on-the-job training and work-readiness modules, to help them understand the workplace better.
So far 2,12,048 people have been trained
They are Self employed or Placed in jobs
They are no less than any business school graduates in their own right
This is a good example of CSR and inclusive growth
What is Sustainable What is Sustainable GrowthGrowth
““Sustainable development is Sustainable development is development that meets the needs of development that meets the needs of the present without compromising the the present without compromising the ability of future generations to meet ability of future generations to meet their own needstheir own needs.”.”
.. Timeforce change.. Timeforce change
Corporate CSR – growth -Environment
Before going into Environment we will look at projected India Growth
India’s Growth story –CSR
Goldmaan Sachs Report
Naresh Kothari’s Article in Economic Times
Goldman Sachs
Dominic Wilson and Roopa Purushothaman Dreaming with BRICs the path to 2050Over the next 50 years
BrazilRussiaIndiaChinaThe BRICs could become large economic force in
the world
In less than 40 years BRICs together larger than G 6 in US dollar terms
By 2025 BRICS – half of the size of G 6
In 2050 – of the current G 6 only US and Japan may be among the world’s largest Six economies
By 2050 worlds largest in GDP may not be rich in terms of per capita income
Higher Growth may load to increased demand for capital
The weight of BRICs in investing portfolios could raise sharply
Capital flows might move further in their favour
The shift in GDP relative to the G 6 takes place steadily over the period
But it will be most dramatic in the first 30 yearsGrowth for the BRICs is likely to show significantly
towards the end of the periodWith only India seeing growth rates significantly above
3% by 2050Individuals in BRIC countries are still likely to be poorer
on an average than individuals in the G6 economies – so where is inclusive growth
Next 10 year Indian Economy growing by 4 times
An article by Naresh Kothari, President,
Edelweiss Capital
Economic Times – 27 03 2010
By 2020 India’s GDP is likely to quadruple from the current $ 1.1 Trillion to about $ 4.5 trillion
Per capita income from Rs 50,000 to Rs 1,50,000
The number of households with income of more than Rs 16 lacs will be over 18 million, while number of middle class holders (1.5 to 16 lacs) would grow by 50% to 180 million
Number of deprived householders – below 1.5 lacs is likely to be reduced by 25% to 180
Indian consumption is likely to increase 3.7 times to about 113 trillion with discretionary expenditure likely to increase significantly.
Education sector to grow 5.7 times
Domestic pharma and health care- 6 times
Media and entertainment 5 times
Organised retail 6.3 times
Automobile sector 4.8 times
Urban premium housing 6.5 times
By 2020 expected savings -$ 1.4 trillion more than our current GDP
The massive growth in savings will propel
5.3 times growth in banking
4.7 times in broking
5.7 times in asset management and 4.7 times in life insrance
Three key risks to achieve and managing this growth
Execution of planned infrastructure projects
Inflation
The third risk to growth is the inclusion of lower income segments
With Gini index of 36, the income disparity levels in India are amongst the highest tin the world. It is important that the Bottom of the pyramid participates in the growth process
Next 10 year Indian Economy growing by 4 times
An article by Naresh Kothari, President,
Edelweiss Capital
Economic Times – 27 03 2010
By 2020 India’s GDP is likely to quadruple from the current $ 1.1 Trillion to about $ 4.5 trillion
Per capita income from Rs 50,000 to Rs 1,50,000The number of households with income of more than Rs 16 laksh will
beve over 18 million, while number of middle class holders (1.5 to 16 lakhs) would grow by 50% to 180 million
Number of deprived householders – below 1.5 lacs is likely to be reduced by 25% to 180
Indian consumption is likely to icrease 3.7 timesto about 113 trillion with discritionary expenditure likely to increase significantly.
Education sector to grow 5.7 times
Domestic pharma and health care- 6 times
Media and entertainment 5 times
Organised retail 6.3 times
Automobile sector 4.8 times
Urban premium housing 6.5 times
By 2020 expected savings -$ 1.4 trillion more than our current GDP
The massive growth in savings will propel
5.3 times growth in banking
4.7 times in broking
5.7 times in asset management and 4.7 times in life insrance
Three key risks to achieve and managing this growth
Execution of planned infrastructure projects
Inflation
The third risk to growth is the inclusion of lower income segments
With Gini index of 36, the income disparity levels in India are amongst the highest tin the world. It is important that the Bottom of the pyramid participates in the growth process
Goldman Sachs report also says
Today’s advanced economies become shrinking part of the world economy
While the BRICs grow ..
Does the Carbon Footprint follow suit?
Then what should be CSR
Carbon FootprintCarbon Footprint
The whole society is looking at corporates and The whole society is looking at corporates and and almost staring at them as polluters and almost staring at them as polluters
The Copenhagen – COP 15 The Copenhagen – COP 15 The article written by Brian Walsh The article written by Brian Walsh Steep change in corporate response or reaction Steep change in corporate response or reaction
to the environmental issuesto the environmental issues Kyoto Vs CopenhagenKyoto Vs Copenhagen Each one of our activities produces some Each one of our activities produces some
Greenhouse GasesGreenhouse Gases Corporates should have record of their carbon Corporates should have record of their carbon
footprint and disclose how do they deal with that footprint and disclose how do they deal with that
Per Capita Carbon Per Capita Carbon emission - 2005emission - 2005
IndiaIndia 1.70 1.70 USA USA 23.50 23.50 UKUK 10.6010.60 JapanJapan 10.5010.50 ChinaChina 5.50 5.50 BangladeshBangladesh 0.90 0.90 South AfricaSouth Africa 9.00 9.00 GermanyGermany 11.90 11.90 Australia Australia 26.9026.90 RussiaRussia 13.7013.70 DenmarkDenmark 11.5011.50
If the Carbon footprint follows suit we need to look at the CSR that commensurate with the changes and challenges the growth brings in
Greenhouse EffectGreenhouse Effect
Types of Greenhouse Types of Greenhouse effect effect
Natural Greenhouse effectNatural Greenhouse effect Man made Greenhouse effect - Man made Greenhouse effect - Gases like Gases like
Carbon dioxide, Methane and other gasses Carbon dioxide, Methane and other gasses also contributealso contribute
tt
Manmade Greenhouse Manmade Greenhouse Gasses Gasses
From burning of fossil fuelsFrom burning of fossil fuels Industrialization Industrialization Deforestation Deforestation Exploitation of Nature Exploitation of Nature About 8 m trees are lost every dayAbout 8 m trees are lost every day Deforestation accounts for about 20% of Deforestation accounts for about 20% of
global carbon dioxide emissions global carbon dioxide emissions
A single tree will absorb approximately A single tree will absorb approximately one ton of carbon dioxide during its life one ton of carbon dioxide during its life timetime
What can I as an individual What can I as an individual do? - Reduce dependence do? - Reduce dependence on vehicles using fossil on vehicles using fossil fuelsfuels
A woman carries her child through floodwaters in Bangladesh in A woman carries her child through floodwaters in Bangladesh in 2008. Bangladesh, one of the nations considered most vulnerable 2008. Bangladesh, one of the nations considered most vulnerable to the effects of climate change, is seeking a 15 percent share of to the effects of climate change, is seeking a 15 percent share of international funding for climate change adaptation. international funding for climate change adaptation. REUTERS/Andrew Biraj REUTERS/Andrew Biraj
As countries discourage goods produced with child labour a day will come where goods produced through carbon emissions will also be discouraged
So corporates should be ready for tomorrows challenges – only good CSR would help
Usage of plastic bagsUsage of plastic bags
Crores of plastic bags are used daily Crores of plastic bags are used daily though banned though banned
It takes 1000 years for a plastic bag to It takes 1000 years for a plastic bag to get degradedget degraded
The Earth gets contaminated – effects The Earth gets contaminated – effects ground water and land qualityground water and land quality
Animals eat the plastic and become illAnimals eat the plastic and become ill
A Heap of used Water A Heap of used Water BottlesBottles
Most important step would be R & DMost important step would be R & D R &D for R &D for
To reduce industrial emissionsTo reduce industrial emissions To find out alternate sources of fuelTo find out alternate sources of fuel
Jetropa – bio diesel Vs agricultureJetropa – bio diesel Vs agriculture
Former U.S. Vice President Al Gore addresses the Former U.S. Vice President Al Gore addresses the Copenhagen Climate Change Conference on Dec. 15, 2009Copenhagen Climate Change Conference on Dec. 15, 2009
Corporate Social Responsibility - CSR
Demonstration of
- a commitment to society’s values,
- contribute to society’s social goals
- environmental goals and
- economic goals
-- through action
CSR is a part of business plan and it is a win-win business model
Our PrayerOur Prayer
““Sarve bhavantu sukhinah:Sarve bhavantu sukhinah: Sarve santhu niramayaaha: /Sarve santhu niramayaaha: / Sarve badraani pasyantuSarve badraani pasyantu Ma kaschith dhukha baag bhavet // ”Ma kaschith dhukha baag bhavet // ”
““Let all people be happyLet all people be happy Let all live with complete good healthLet all live with complete good health
Let all know what is good and what is not so Let all know what is good and what is not so goodgood Let no body be subjected to troubles” Let no body be subjected to troubles”
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