Assignment: There is a lot of discussion about CSR these days both by industry and the Government. Are the companies really serious about CSR? Make a study of 20 companies to find out whether they are really concerned about CSR issues. Make an in-depth analysis study of 2 companies, one from public sector and another from private sector, and evaluate their CSR activities in the wake of the CSR guidelines of the department of public enterprises, Government of India.

Methodology: Primary and secondary data analysis

Corporate social responsibility (CSR) is the talk of the town in corporate circles these days. There seems to be an infinite number of definitions of CSR, ranging from the simplistic to the complex, and a range of associated terms and ideas, including ‘corporate sustainability, corporate citizenship, corporate social investment, the triple bottom line, socially responsible investment, business sustainability and corporate governance.

India has traditionally had a long-standing heritage of ‘giving back’ to society. Through our cultural traditions, social interactions and economic transactions, we as a nation have always acknowledged the importance of investing in the future. Some of India’s oldest corporate houses and business families have had a legacy of investing in social development long before the concept of CSR or Corporate Social Responsibility was known. Yet, these initiatives were largely philanthropic in nature, generally within the realm of charity and donations, and governed by the issues considered most pressing to the members of the families, and those closest to their hearts. However, corporate social investment across the world has since evolved; from purely philanthropic spending, it is now a strategy-based approach designed to bring about holistic change that impacts stakeholders, the environment and the business itself.

There are so many companies from different sector which engages themselves in CSR activities. I have selected 2 companies for detail analysis of their CSR activities. One from public sector and another private sector company.

National Aluminium Company ( Nalco) Jindal steel & Power Ltd

NALCO: Incorporated in 1981, as a public sector enterprise of the Government of India National Aluminum Company Limited (Nalco) is Asia's largest integrated aluminum complex, encompassing bauxite mining, alumina refining, aluminum smelting and casting, power generation, rail and port operations. Commissioned during 1985-87, Nalco has emerged to be a star performer in production, export of alumina and aluminum, and more significantly, in propelling a self-sustained growth.

CSR activities: Along with its business, Nalco lays special emphasis on its corporate social Responsibility activities. The company has come to represent a better quality of life for communities residing in the vicinities of its plant and facilities. The company has comprehensively addressed the problems of rehabilitation of displaced families with adequate compensations, housing and employment to the

extent feasible. Apart from these the company gives high importance to promotion and maintenance of pollution free environment in all its activities.

When the company started its operation in odisha in 1981, there was no such nomenclature like CSR. All that the company felt that it was its moral responsibility towards the society. But now a day the company has associated itself in several CSR activities that include

Construction:

Water : Drinking water and irrigation , Renovation of ponds , canals and other water bodies and digging up wells and tube wells etc

Health: Renovation of public health centers, construction of heat stroke prevention rooms, construction sub centre buildings etc.

Infrastructure : Construction and renovation of earthen , metal , bituminous and concrete roads etc

Non construction:

Mobile health service and free medicines to periphery villages Free veterinary service to identified villages Organizing rural sports , literary competitions , science exhibitions & study tours for

students of periphery high schools Felicitating meritorious students of periphery schools Supply of ceiling fans , chairs , benches , almirahs , science equipments and library

books to peripheral schools Assistance during natural calamities Financial assistance to villages and schools for different cultural and religious functions Supply of drinking water through tankers to water scarce villages during summer season

Major CSR project done in past:

Beyond the Periphery Development Programme:

Permanent water supply project for 11 villages , through rural water supply &sanitation department , Govt. of Orissa

Special works taken up after ash pond breach (2001-2002) Permanent water supply project for 13 more villages

Special projects at Damonjodi sector:

Developments of tourist places at Deomali and Gupteswar in Koraput Stadium at Koraput Short stay home for Destitute persons

Special projects at other places:

35 PCR Van to Comissionerate police , Bhubaneswar in 2009-10 100-men police barrack at Bhubaneswar

Major contribution towards public parks:

Mahatma Gandhi park , Bhubaneswar Gandhi smurti pitha , puri Biju pattaink park , Bhubaneswar

Nalco’s school and Hospitals:

Two English medium schools and two oriya medium schools were setup at Angul and Damonjodi

Nalco has two company run specialty hospitals one each at Angul and Damonjodi

Major contribution towards culture and sports:

Every year to tribal festival “Parab” in Koraput State cultural fund , Govt of Orissa Renovation of Anand bazzar at Lord Jagannath Temple , Puri Multipurpose utility complex at Lingaraj Temple , Bhubaneswar Afro-Asian games Hyderabad To SAI towards training of Indian contingent for Athens Olympics

Major relief projects: Soon after the super cyclone in Orissa in 1999, Nalco has constructed 197 primary schools –cum cyclone shelters in the coastal areas, under PM’s national relief fund schemes. Apart from these Nalco has also allocated money for the flood victims of Orissa, the earth quake victims of J&K etc.

Financial Allocation: Nalco has allocated around 138.73 crore towards periphery development programme till 2009-10. The break –up is like

At Damanjodi : Rs 48.88 Crore At Angul : Rs 62.19 Crore Other Areas : Rs 27.66 Crore

The CSR policy of Nalco: As a policy, since 1998-99 Nalco started allocating 0.5% of its net profit of the year for periphery development activity. Thereafter since 2002-03 the amount is doubled to 1%. Out of this allocated fund

40% is for Damanjodi sector , where the mines and refinery are located 40% is for Angul sector , where the smelter and the power plant located And for 20% for other areas

RPDAC: As per the policy of Government of odisha , The rehabilitation and periphery advisory committees at Koraput and Angul decides all policy and project matters related to periphery development in these areas .Till 2011-12 , Nalco has allocated Rs .157.56 Crore under PD programme

NALCO FOUNDATION: IN 2010-11 fiscal, Nalco Board decided to set up a standalone Foundation for its CSR activities. Among other things, the Board decided to allocate an additional one percent of Nalco’s total net profit every year to fund the schemes to be undertaken by this Foundation. With the setting up of Nalco Foundation, the CSR budget of the company now stands doubled at 2% of the net profit.

The Foundation was registered on 28 th July 2010, under the Indian Trusts act 1882. The foundation is based on the guidelines on CSR for CPSEs issued in march 2010 by the

Department of Public Enterprise, Government of India As directed therein , since Nalco’s net profit is more than Rs 500 Crore , Its CSR expenditure

range should be : 0.5% to 2% of the net profit Nalco has opted for the maximum by setting up the foundation Amount allocated to Nalco foundation in 2010-11 is Rs 8.14 Crore and in 2011-12 is Rs 10.69

Crore.

Area of operation:

Nalco Foundation is focused on development of villages located within 15 kms radius of Nalco’s Mines & Plants in Damanjodi and Angul, and also proposed mining areas such as Utkal-E Coal Block (Chhendipada Block, Angul), Pottangi (Koraput) and Gudem and KR konda of Andhra Pradesh

Broad Methodology:

According to the policy Nalco foundation ensures community participation, accountability, sustainability and measureable result through:

Baseline surveys & needs assessment Identification of projects Selection of implementing agencies Monitoring and evaluation Social auditing by independent bodies Documentation of experience

List of completed Entry level projects:

DAMANJODI

1. Drinking water project in putraghati and chaogaon village completed in 2011. Three hand pumps was installed by NALCO in Putraghati and a well was dug in chaugaon village

2. Livelihood Training: The project was done khogodhara village in between june-sept 2011. The livelihood training was imparted on backyard poultry, mushroom cultivation and vermicompost.

ANGUL:3. Health Check-up

Area: Gopinathpur (Nandichhod) Date: 24th May 2011

Health check-up of children, mothers and expectant mothers. Hemoglobin test for women Free medicines, school uniforms and water filters distributed to preschool centre of the village.4. Appliances for Physically-challenged Identification Camp: Gopinathpur (Nandichhod) village

Date: 2nd June 2011 The representatives of Artificial Limbs Manufacturing Corporation of India ALIMCO) and

Vocational Rehabilitation Centre for Handicapped (VRC), both Govt of India agencies, participated in the camp.

69 persons of four villages (Nandichhod, Gopinathpur, Korada and kosala) of Utkal-E Coal Block Area attended the camp

19 physically-challenged people were identified for free appliances Appliance Distribution Camp: koroda Village Date: 4th Aug 2011

19 identified beneficiaries from Korada,Kosala, Nandichhod and Gopinathpur villages were handed over seven tricycles, two roletors, nine hearing aids and one blind stick.

Subsequently, Nalco Foundation helped four beneficiaries to get disabled certificate from Chief District Medical Officer, Government of Odisha.

5. Facilitated by Nalco Foundation ten SHGs have been started, ensuring bank linkages, seed money, loans and grants, besides access to various schemes.

6. Five village information centers have been set up. Forms related to Government program like BPL card, old age/widow/ disability pension schemes, MGNREGA job card are available there.

7. Backyard poultry training has been provided to villagers 8. Nalco has set up 5 Grain banks ensuring food security 9. living condition The renovation of Kanyashram, a residential school set up by ITDA from 7

nearby villages, have been completed by Nalco Foundation ensuring better living condition

Apart from this completed projects several other CSR projects of NALCO is under implementation. Some of them are listed bellow

1. Construction of a check dam along with a new inlet canal and repair of existing outlet canal for diversion of perennial stream water to Karidiguda for irrigation purposes

2. Take over the operation of the existing Mobile Health Unit (MHU) for the periphery villages of Damanjodi, from October 2011 to March 2012. Besides, Nalco Foundation shall be starting another MHU shortly.

3. Construction of natural stream-based drinking water system at Khagodhara village. Construction of spring-based drinking water system at Bhitarbhejaput, dug wells at Kandhaputaghati and Bhitarbhejaput, installation of bore wells in 18 villages.

4. Sponsoring formal education of 250 tribal children living in the periphery villages.5. To propagate safe drinking water and distribution of 1800 water filters Malaria eradication

through awareness building and distribution of 3600 Mosquito Nets (LLIN).6. Promotion of solar energy at household level by distributing 1800 lamps.7. Distribution of 43 sports kits, 1070 educational kits and 14 sets of library books,

Through schools, clubs and village development committees.8. Setting up remedial schools for drop-out children in 10 villages9. Livelihood programmes for 300 persons.10. Funding of Industrial Training Institute (ITI) at Marichamal.11. Proposal to renovate Malu Santa Govt. High School at Damanjodi

Recent CSR activity by NALCO: Nalco foundation signs MoUs for sponsoring Education: Nalco Foundation, the CSR arm of

National Aluminium Company Limited, signed MoUs with Kalinga Institute of Social Sciences (KISS), Koraput Development Foundation (KDF) and Bikash Vidyalaya on 6th may 2012 for full sponsoring education of children from the Periphery villages of Damanjodi in Koraput from this academic year, covering their expenses on school fee, lodging, boarding and other expenses.

Nalco foundation pays Rs 2 crore advance for ITI in Damanjodi : Nalco Foundation, the CSR arm of National Aluminium Company Limited, has decided to sponsor an Industrial Training Institute (ITI) to be established at Marichamal in tribal-dominated Damanjodi of Koraput district, at an estimated cost of Rs.4.08 crore. On 12th April 2012 Nalco gave a Rs of 2 crore in advance

Nalco Foundation signs MoU with Wockhardt Foundation for Healthcare: As part of Corporate Social Responsibility (CSR), National Aluminium Company Limited (NALCO) has been making significant contributions for the development of periphery villages around company’s production units and proposed mining sites. Going a step further, Nalco Foundation, the CSR arm of the company and Mumbai-based Wockhardt Foundation signed an MoU on 16 th February 2012 to start mobile healthcare facilities in Damanjodi sector.

Awards and Recognisation for CSR activities:

In recognition of its CSR initiatives, NALCO received the PSE Excellence Award 2011, in the Maharatna and Navratna category, instituted by the Department of Public Enterprises (DPE), Govt. of India and Indian Chamber of Commerce. Shri B.L. Bagra, CMD, received the award from Shri Bhaskar Chatterjee, IAS, Secretary, Department of Public Enterprises, in New Delhi on 19.09.2011.

JINDAL STEEL & POWER LTD :

Jindal Steel and Power Limited (JSPL) is one of India's major steel producers with a significant presence in sectors like Mining, Power Generation and Infrastructure. JSPL operates the largest coal - based sponge iron plant in the world and has an installed capacity of 3 MTPA of steel at Raigarh in Chhattisgarh. With a 0.6 MTPA wire rod mill and a one million tone capacity bar mill at Patratu, Jharkhand, a medium and light structural mill at Raigarh, Chhattisgarh and a plate mill to produce upto 5.00 metre wide plates at Angul, Odisha.

CSR activities : JSPL is involved with various CSR projects in different segments . That includes

Health

Education

Sustainable Livelihood and women’s empowerment

Community Infrastructure

Sports , Youth and Culture

Social welfare

Natural Resource Management

Calamity Management

Health: There are a lot of initiative taken on health sector by JSPL. It mainly focus on

Population stabilization programme

Specialized Health camps

Mobile Health units

Blood Donation Camps

Organizing blindness control programme

Awareness generation about HIV/AIDS , Malaria and other season-specific diseases

JSPL has organized a lot of health camps and programme in partner with Government of odisha and also with different organization . some of them are listed below for reference

Mobile Health unit which covered 20 villages with 6500 households

General and special health camps in association with Government of odisha which covered 21 villages

Awareness on preventive health care which was PPP project

Kishori express , A adolescent girls awareness programme

Universal pulse polio drive

Anemia reduction programme for adolescent girls

Blood donation camps

School hygiene classes

School health check ups

Education : Education is mainly focuses on

Supplementing government support to the infrastructure facilities at school, improving classroom amenities for students in the community and providing teaching and learning support material in the vernacular medium schools.

Vocational education for skill building and short term technical training to cater to the need of skilled manpower.

Promoting Girl Child Education by providing study kits and educational Aids for 350 female children appearing for matriculation examination and special incentives for female higher education

Mentoring of Schools: The School Mentoring Programme was launched byJSPL in collaboration with all the schools of the periphery villages on the 21st of April, 2011. This programme has been conceived as a nurturing tool for the 42 vernacular medium schools during the initial phase. The objectives: Reduce the school dropout rate in the peripheral schools and promote the use of innovative teaching and learning tools in the schools

Total literacy rate amongst the peripheral villages Education for the unreached, which includes children of labourers, poor and needy

students, meritorious students with scanty means. Scholarships, rewards and incentives to meritorious students.

Some of recent CSR programme in education sector includes Inaguration of E-learing system in R& R Vidyapitha Welcome to school kits for student of R &R Vidyapitha Mentoring the mentor programme in which the school headmasters participated Renovation of peripheral schools & furniture fixture support

Support of admission in other short term vocational courses Community teaching support Reward and recongnistion for meritorious student Functional literacy programme Art of living programme Sponsorship of tribal student

Sustainable livelihood Initiative :The main focus are of JSPL in this segment is

Skill up gradation of Youth and women and promoting income generation activityPromotion of SHGs, graduating them to Self Help Entrepreneurs through backward and forward linkages.

Capacity building and engage SHG in supplementary Income generation activities like:Farm Sector

Fishery Mushroom cultivation Vegetable farming including growing organic vegetables Vermi Compost‐ Poultry Animal Health Care Fruit orchards Raising nurseries

Non Farm Sector Stitching & Embroidery Phenyl Making Food Processing Agarbatti making Leaf cup making‐ Low cost Sanitary Napkin manufacturing‐ Herbal Body care product making

Some of CSR work conducted in these sectors are Organic farming at Benagadia village Advance maize cultivation at Jarda Village Fishery cultivation at Badamahitala village Mushroom cultivation at Jamunda Papad Making at Sankerjang Stiching ceneter at Benagadia

Detail list of projects : Fishery by 12 groups covering 78 men and women of the periphery villages in PPP

mode Mushroom cultivation 84 women Under PPP mode Famers’ Promotion under Maize Cultivation& Organic Vegetable farming for 400

farmers

Freshwater Prawn Cultivation for 10 farmers Under PPP mode Livestock Treatment and Care Vaccination covering 7454 cattle from20 peripheral

villages. Benefitting 3657 households Under PPP mode Vegetable farming 2 groups consist in 12 farmers

Community Infrastructure : Upgrading civic amenities by bridging the gaps in critical infrastructure Construction and repair of roads Construction and repair of school classrooms, boundary walls and othersuch

requirements Building community halls and places of worship for the community Electrification of villages Excavation of ponds Hand pump boring and provision of piped water‐ Providing forward and backward linkages for economic activities

Infrastructure activity done in past : Construction of tube well at Village Sankerjang Overhead Tank at Ramadiha Village Overhead tank at Village Badamahitala Construction of Religious Places and Community Halls Mahima Ashram in village Jamunda Construction of Dolamandap at Sankerjang Village Construction of Community hall at Jamunda Jungle Village Excavation of ponds in the community at village Sankerjang Excavation of pond in the community at Badamahitala Excavation of Pond at village Kaliakata Approach Road at village Mahitala Rural Electrification at village Jamunda Jungle Cement Concrete Road at village Jamunda

Sports , Youth and Culture : The focus areas are:

Formation of youth clubs Building rural gymnasiums Coaching facilities Provision of sports equipment Promoting rural sports by organizing tournaments at various levels Promoting hidden talents

List of activities done by JSPL in past : State level Women’s Kabaddi Tournament organized by JSPL at Angul on the occasion of

International Women’s Day National Kickboxing Championship held at Angul, supported by JSPL

Calamity Management : Calamity redressal includes

Supply of water through water tankers during extreme summers Addressing global warming through massive plantation

Measures for fire Relief and safety Awareness generation about safety concerns in the community through interactive

media Relief and rescue measures for flood and storm hit areas‐

Awards and reorganization for CSR activity :

Jindal Steel and Power Limited (JSPL), Angul’s innovations in CSR interventions were adjudgedas the ‘Best Innovative Community Programme’ by Interface–Asia, CSR-2011, awarded by theTefla’s and the Times of India on August 27, 2011 at the Think Odisha Leadership Awards eventat Bhubaneswar.

CSR initiative taken by other companies : JSL Ltd : All the CSR activity is taken by JSL foundation which is a registered society

under the Registrar of Societies was established with the aim of implementing various social and environmental initiatives through direct & indirect methods. JSL foundation has been doing a lot of CSR activities in different sectors like Education , Community Health programme , Women Empowerment , Livelihood programme , Community Development programme , Youth,sports and culture Etc.

Tata Steel : Tata Steel through its operations in Odisha, provides community outreach programmes that are specifically designed to cater to the needs of the Oriya population. The key initiatives have been in the areas of health & hygiene, education, infrastructure, land & water management, sports, livelihood and empowerment. In order to make the projects sustainable, Tata Steel also encourages participation by people from local villages. The areas covered under social responsiveness programmes are Belpahar, Bamnipal, Paradeep, Dhamra, Bolangir, Joda, Sukinda, Keonjhar, Jajpur, Gopalpur, Sundergarh, Bhubaneshwar and Angul. Tata Steel operations in Odisha have created more than 20,000 direct and indirect employment opportunities in the State. It contributes towards the state exchequer in the form of taxes and levies a sum of around Rs 340 Crores per annum. It touches the lives of nearly 25,000 families in 500 remote villages per year through its CSR activities in Odisha

Vedanta Aluminium Ltd : VAL has launched several projects for sustained socio-economic and cultural development of local communities adjoining the plant site. It has launched several projects for sustained socio-economic and cultural development of local communities adjoining the plant site. Mid-day meals for school going children, establishment of Anganwadi centres (pre-schools) and health camps. VAL has associated itself with several government bodies and NGO like District administration , NGO Pratham , AISD , Nandi Foundation etc for its CSR activates . It provides its CSR report according to the GRI standard .

Essar Group: The CSR wing of Essar Group is ESSAR FOUNDATION. The main focus of this foundation broadly on six areas like Livelihood and entrepreneurship , women’s empowerment , Education , Infrastructure , Environment , Health .

IMFA : Indian Metals Public Charitable Trust (IMPaCT) is the CSR wing of IMFA. The major initiatives undertaken by IMFA include instituting the prestigious Sarala Award for recognising excellence in Oriya literature and the Ekalabya Puraskar for encouraging budding Oriya sportspeople . A lot of activities such as conducting free health camps particularly in tribal areas, running several educational institutions besides an Industrial Training Institute (ITI), sponsoring needy scholars for higher education and generally working towards improving the lot of the under-privileged sections of society are all part of IMFA’s commitment to Odisha. The trust is also associated with Sarala Award and Ekalvya Puraskar . The annual Sarala Award was instituted in 1980 with the aim to recognise outstanding literary work in the Oriya language. With an award of Rs 1,50,000 and a glittering array ofrecipients, it is today considered the premier recognition for an Oriya writer. The group also gives scholarships to the needy student on the name of Professor Ghanashyam Dash Scholarship for Higher Education .

VISA Steel : visa steels CSR wing is associated with activities like Rural development, soprts and culture , Health care etc. Installed bore-wells for providing clean drinking water in the backward areas. Actively helped in promoting contemporary Indian art through exhibitions. Organized Medical camps in the backward areas of Odisha etc

Overview of the study of CSR activities done by the companies in operation in odisha :

Except some of big industries , most of the companies in odisha are not doing any CSR activities

Most companies present very few data on CSR as a part of their annual report No clarity of information can be get from the Report like how much financial support

has given to different sector ,what percentage of net profit has been utilized for the CSR activity is also not found in many reports

A very few companies report the CSR activities as per the guidelines A few companies have uploaded their CSR activity report in their respective web pages I found that only few companies have a CR strategy with well defined objectives and

targets This means although many companies are reporting CSR activites but they are not

engaging themselves in well defined strategy and objective Contrary to the view the mining metal sector companies standout in this regard and

they have a well management CR system ( specially Big industries) Sectors such as media , retail have a little information about their CSR activity Mining , metal sector are now a day concentrating more on less carbon emission

strategy and working on it which is a good sign

Conclusion : In India, till very recently, the focus was on charity, which is not really CSR. Sustainable CSR programmes mean a cohesive mix of economic, legal, ethical

and philanthropic tenets. In today's changed business scenario, there is an increased focus on giving back to society and creating a model which works long term and is sustainable and it is imperative that the best practices for inclusive growth are shared with the stakeholders.