CONCEPTUAL FRAMEWORK “Wealth created from society has to be ploughed back into Society.” Mahatma Gandhi This is the concept on which the foundation of Corporate Social Responsibility of CSR as it is popularly known as is laid. CSR is a genuine attempt by a company to build meaningful relationship between the corporate sector & the rest of society. CSR is achieved when a business adapts all of its practices to ensure that is operates in ways that meet, or exceed, the ethical, legal, commercial & public expectations that society has of business. To be considered effective, Corporate Social Responsibility must be an integrated part of day-to-day business, engaging all stakeholders & including strategies to support individual managers to make socially responsible decisions, confirm to ethical behavior & obey the law. Corporate Social Responsibility (CSR) is a growing phenomenon worldwide that’s trying to change the role & nature of corporations. CSR deals with the
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CONCEPTUAL FRAMEWORK
“Wealth created from society has to be ploughed back into
Society.”
Mahatma
Gandhi
This is the concept on which the foundation of Corporate Social
Responsibility of CSR as it is popularly known as is laid. CSR is a genuine
attempt by a company to build meaningful relationship between the corporate
sector & the rest of society. CSR is achieved when a business adapts all of its
practices to ensure that is operates in ways that meet, or exceed, the ethical,
legal, commercial & public expectations that society has of business. To be
considered effective, Corporate Social Responsibility must be an integrated
part of day-to-day business, engaging all stakeholders & including strategies to
support individual managers to make socially responsible decisions, confirm to
ethical behavior & obey the law.
Corporate Social Responsibility (CSR) is a growing phenomenon
worldwide that’s trying to change the role & nature of corporations. CSR deals
with the thorny issues ground a corporation’s responsibility to society, & how
it relates to the company’s traditional commitment to maximize share holder
profits.
Organizations & industries of all sizes find it necessary & desirable to
consider Corporate Social Responsibility in Strategic decision making
processes. In some companies this has had a profound effect from the shop
floor to the executive suite. Not surprisingly the maintenance department has
potential to be a leader in implementing initiatives that align with CSR related
goals & objectives, including improved safety on the job, waste
Reduction, improved energy management, selection of vendors that can
supply “CSR approved” parts, increased employee diversity, alternative
working arrangements & balancing work and lifestyle.
Corporate Social Responsibility (CSR) has been influenced by two major
concepts stake-holder model, wherein it is recognized that good business
practice entails engaging all stake holders in company business. So good
business is not only seen as maximizing shareholder value but also stakeholder
value. The other concept is triple bottom line, where companies would no
longer be judged by the conventional single i.e. financial bottom line, but also
on there performance in social & environmental bottom-lines
CSR is a concept that an enterprise is accountable for its impact on all
relevant stake holders to behave fairly and responsibly, contribute to economic
development while improving the quality of life of the workforce and their
families as well of the local community and society at large. By expressing their
social responsibility, companies are at firming their role in societal and
territorial cohesion, quality and environment.
Corporate Social Responsibility is the commitment of business to
contribute to sustainable economic development working with employees and
their families, the local community and society at large to improve their quality
of life in ways that are good for business and good for development.
1.1 CONCEPT
The role of business in society has been debated in economic literature
for a long time. By the term Corporate Social Responsibility (CSR), what is
generally understood is that business has an obligation to society that extends
beyond its narrow obligation to its owners or shareholders, this idea has been
discussed throughout the twentieth century but is was Haw ard R. Bowen’s
book on “Social Responsibilities of Businessman” published in 1953, which was
the origin of the modem debate on the subject. Bowen reasoned that there
would be general social and economic benefits that would accrue to society, if
business recognized broader social goals in its decisions.
Corporate Social Responsibility is nothing but what an organization does
to positively influence the society in which it exists. It could take the form of
community relationship. Volunteer assistance programmes, healthcare
initiatives, special education running programmes ad scholarships,
preservation of cultural heritage and beautification of cities. The philosophy is,
basically to give back to the society, what’s (business) has taken from it, in the
course of its quest for creation of wealth.
The debate, on whether responsibility of a business enterprise is only to
its shareholders (owners) or to all stakeholders, including environment and the
society at large, is an ongoing one and continues. In present literature
“Stakeholder”, as an expression is fairly recent in origin, reportedly appearing
first in an internal memorandum of the Stanford Research Institute in the year
1963. According to a definition given by Edward Freeman “A stakeholder is any
group of individual who can effect, or is effected by the activities and
achievements of an organization”. “Friedricn N’eubauer and Ada Demb”“The
Legitimate Corporation” indentify six groups of distinguishable stakeholders
(not necessarily in this order) as follows —
Providers of funds
Employees
General public
Government
Customers and Suppliers
On the one hand experts have argued that shareholders put their risk
capital in a Joint Stock Company (or business) and therefore, companies should
be managed in the interest of the owners or the shareholders. This primacy of
treatment given to the shareholders is being justified on the grounds of
ownership and shareholding. It is felt that the maximization of profits or the
bottom line should be ultimate objective of the management. On the other
hand, a number of experts will not agree with this position For example, in
Japan employees are treated as family. It is felt that an employee who devotes
his or her life to the company has a bigger stake in it as compared to a
shareholder. Germany is another nation where stakeholder recognition is high.
Prominent among the experts who has taken a broader view is Minks who has
argued that any company with a short term in view, only maximizing profits for
the shareholder, will destroy value in the medium to long run.
It is felt that the moot point here is the time frame. And that in the long
run, the sustainability of the enterprises will be of paramount importance. In
the long run, interests of both the stakeholders and the shareholders are not
only likely to converge, but also have to be balanced.
In the tradition of Hobbes, Locke & Jean lacque Russeau (writing in year
1962), society and corporation must co-exist and contribute to the well being
of each other. There is a contract, which is at once explicit and implicit, that
governs the operation of business within a given community. Benjamin
Franklin has also expressed a similar sentiment when he says that “Doing good
is not a private act between a bountiful giver and a grateful receiver, it is a
prudent social act.”
1.2 HISTORICAL PERSPECTIVE
The view that a business can have obligations that extend beyond
economic roles is not new in many respects. Throughout recorded history the
roles of organizations producing goods and services for the market place were
frequently linked with and include political, social, and/or military roles. For
example, throughout the early evolutionary stages of company development in
England (where organizations such as the Hudson Bay Company and the East
India Company received board mandates), there was a public policy
understanding that corporations were to help achieve societal objectives such
as the exploration of colonial territory, setting up settlements, providing
transportation services, developing bank and financial services, etc. During the
nineteenth century, the corporation as a business form of organization evolved
rapidly in the US. It took on a commercial form that spelled out responsibilities
of the board of directors and management of shareholders (i.e. fiduciary duty).
In this later evolutionary form, public policy frequently addressed specific
social domains such as health and safety for workers, consumer protection,
labour practices, environmental protection, etc. Thus corporations responded
to soci1 responsibilities because they were obligated to be in compliance with
the law public policy. They also responded voluntarily to market demands that
reflected consumer morals and social tastes.
By the mid-point of the twentieth century, corporate social responsibility
was being discussed in the US by business management experts such as Peter
Druckers and being considered in business literature. In 1970, economist
Milton Friedman outlined his view that the social responsibility of corporations
is to make profits within the boundaries of society morals and laws (but
cautioned that socially responsible initiatives
By corporations could lead to unfocused management directions,
misallocations of resources and reduced market competition, opportunity and
choice). CSR emerged and continues to be a key business management,
marketing, and accounting concern in the US, Europe, Canada, and other
nations.
In the last decade, CSR and related concepts such as corporate
citizenship and corporate sustainability have expanded. This has perhaps
occurred in response to new challenges such as those emanating from
increased globalization on the agenda of business managers as well as for
related stakeholder communities. It is now more a part of both the vocabulary
and agenda of academics, professional’s, non-governmental organizations,
consumer groups, employees, suppliers, shareholders, and investors.
Values, Ethics & Social Responsibility
Business ethics is not a distinct and separate aspect of corporate life. It
permeates all aspects and departments of the firm, its operations and its links
with the community. At times, the word ethics and values are used
interchangeably. Values, are set of beliefs germane to the individual, group or
organization and is the basis for action. It is something, which is held in regard,
importance or worth. Values, is essentially a thought based concept. While
ethics is a set of actions, born out of beliefs, attitudes and values. It is a branch
of knowledge concerned with moral principles that govern influence conduct.
Ethics, is essentially an activity based concept.
Ethics is person specific, context specific and culture specific. It is also
important to distinguish between ‘managerial ethics’ and ‘business ethic’.
While the former is a micro view and is an examination of individual
Level behavior. The latter is a macro view and examines organizational
behavior. It is important to look at the micro level behavior because (a) Most
unethical decisions emanate at the individual level, rather than as collective
decision of boards or committees, and (b) Individual sensitivities will contribute
to companies taking an active ethical stand while making decisions.
Ethics and CSR are closely related concepts. Ethics deal with issues
pertaining to organizations and its stakeholders in day-to-day business
transactions. Social responsibility refers to a company’s posture relative to the
community either narrowly or broadly defined. Ethics tends to be more
internal in orientation, while social responsibility is more external, but this
orientation is not an absolute one. Many companies that are highly ethical also
exhibit heightened levels of social responsibility. In fact, the term corporate
citizenship is used now to denote many of the activities that fell under the CSR
umbrella earlier.
Social Accounting & Reporting
An increasing number of companies are reporting publicly on their
social, environmental and ethical performance, both as a communication to
stakeholders, and as a management tool. However, as this practice has only
become more widespread since the mid 1 990s, there is as yet no standard
format to address the type of information companies choose to report, or how
that information is collected, analyzed and presented.
At the same time, many stakeholders are becoming increasingly
sophisticated in the type and quality of information they are demanding from
companies. In an effort to meet these demands — as well as to strengthen the
credibility of their social and environmental reports-some companies are
Choosing to have their reports externally verified. In doing so,
companies recognize that verification by a third party can add value to the
overall social and environmental reporting process by enhancing relationships
with stakeholders, improving business performance and decision-making,
aligning practice with organizational values, and strengthening reputation risk
management.
A small, but growing, number of companies are producing verified social
and environmental reports, with the social report movement, in particular,
being led in large part by European companies. Verification refers to any
independent assessment as to the quality, accuracy, or completeness of a
company’s report and can include audits, reviews, attestations, or other forms
of assurance.
As shell has noted in its Principles and Profits Report, society has moved
from a ‘Trust Me’ position, through a ‘Tell Me’ position to a ‘Show Me’
position, implying that verbal assurances by corporate management are no
longer sufficient to gain the trust of stakeholders. Independent verification of
social and environmental reports is one way in which companies are
addressing this lack of trust.
During the 1 990s, calls for greater corporate social accountability by
activists, non-governmental organizations (NGOs), governments and the
general public increases, both in the United States and internationally.
Additionally, increasing numbers of investors taking companies’ social and
environmental performance into account in their investment decision.
The trends in environmental reporting have begun to be duplicated in
social reporting. Standards developed by non-corporate organizations provide
targets against which social performance may be measured. Guidelines also
address how social performance can and should be reported.
For example, SA8000, launched in 1997 by Social Accountability
International (formerly Council on Economic Priorities Accreditation Agency) is
an auditable standard specifically addressing labor and workplace conditions.
The Global Reporting Initiative Sustainability Guidelines, revised in June 2000,
provide a framework and principles for reporting on environmental, social and
economic corporate performance. AA1000, a standard for the social reporting
process, was developed by the Institute of Social and Ethical Accountability and
publicly released in 1999.
During the late 1980s and 1990s, non-governmental organizations have
been at the forefront of campaigns on social and environmental issues,
becoming a powerful force in both publicizing a wide range of corporate social
responsibility issues and in pressuring companies to address them.
Representing particular stakeholder issues, they have challenged corporate
reporting of social and environmental performance and demanded
independent monitoring of social issues, as well as audits of social and
environmental reporting processes.
• Global Reporting Initiative - Sustainability Reporting Guideline:
The Global Reporting Initiative (GRI) is multi-stakeholder initiative,
formed to develop globally applicable guidelines that can be used voluntarily
by reporting organizations. The Sustainability Guidelines on Economic,
Environmental and Social performance, launched in May 1999 and updated for
re-release in June 2000, were designed to help companies report on the
economic, environmental and social impact of their business operations. The
guidelines acknowledge independent verification as a measure of providing
assurance for reliability and completeness of sustainability reports. They also
recognize the potential for verification to “enhance the quality of
Information within an organization and the underlying management
systems and processes.” An annex of the guidelines outlines principles for
verification and offers advice as to what may be expected from verifiers —
such as contents for inclusion in the verification report. The guidelines suggest
the principles and standards for verification of social reports need to allow for
more diverse approaches than are used in traditional financial auditing, while
maintaining fundamental audit concepts necessary to provide assurance and
credibility.
Accountability 1000 (AA1000): AA1000, developed by the Institute of
Social and Ethical Accountability and launched in November 1999, is a ‘process
standard’ setting out principles and a method for social reporting that focus on
the process rather than the content of the social report. Within the standard
are guidelines addressing principles for the conduct of the social and ethical
auditor. They also offer a framework for the audit process, covering the terms
of engagement through to reporting the audit. These guidelines however, do
not form part of the AA1 000 standards and are not for the purpose of
certifying a social report ‘AA1000 compliant’. They are aimed to be a tool for
companies and a framework that can be referenced by auditors, in order to
describe to readers of the report, the audit process and principles that have
been followed.
• Social Accountability 8000 (SA8000): Social Accountability International
(formerly Council on Economic Priorities Accreditation Agency) launched
SA8000 in 1997, as a standard labor and workplace
• Conditions. It is also a system for independent verification of factories’
compliance to the standard. The SA8000 system is modeled
On the International Standards Organization (ISO) standard, ISO 9000, used by
companies to ensure quality control and to demonstrate the quality of
business systems and operations to customers. SA8000 builds on ISO auditing
techniques: specifying corrective and preventive actions; encouraging
continuous improvement; and focusing on management system and
documentation proving these systems’ effectiveness. SAl accredits firms —
usually known as certification bodies — to be external auditors, certifying
manufacturing facilities for conformance to SA8000. While SA8000 uses
independent auditors to certify companies as compliant with the standard, this
certification and audit relates to companies’ actual performance in regard to
labor condition, rather than the public reporting of their performance. It is
including here however, as a significant contributor to the development of
‘auditable’ social performance factors.
International Standards Organization: The International Standards
Organization (ISO) has produced a number of auditable standards and
accreditation systems for reporting on corporate performance. In particular, it
provides on environmental management systems (ISO 14000 series). ISO
14002 is a guide for environmental auditing and qualification criteria for
environmental auditors. As yet, however, there are no ISO standards that
specifically address social reporting and auditing.
International Audit Practices Committee (IAPC) International Standards
on Auditing (ISAs): the Committee is part of the International Federation of
Accountants, and organization of national professional accountancy
organizations that represent qualified public
Accountants. Recognizing the differences in national auditing standards,
the IAPC has developed International Standards on Auditing that can be
applied to the practice of financial audit internationally. However, they contain
standards and principles that can be applied and adapted to the audit of non-
financial information.
Coalition of Environmentally Responsible Economies (CERES):
The CERES Report is a standardized format for corporate environmental
reporting developed through collaboration by companies, institutional
investors and environmental organizations. The CERES Report establishes the
environmental performance data that should be disclosed, suggests methods
of measurement, and thereby helps companies to track their environmental
performance in quantifiable ways. Participating companies receive feedback on
their reports, and the reports undergo a joint prepublication review to ensure
clarity and conformity to the standard.
The idea that business has stakeholders other than shareholders is not
new, at least in the western advanced economies. Large auditing firms like
KPMG and Price water House Coopers continue to receive assignments of audit
“Triple Bottom lines” — the financial bottom-line, environmental bottom lines
and ethical/social bottom lines.
1.3 CORPORATE SOCIAL RESPONSIBILITY DEFINED
Corporate social responsibility is necessarily an evolving term that does
not have a standard definition or a fully recognized set of specific criteria, With
the understanding that businesses play a key sole on job and wealth creation in
society, CSR is generally understood to be the way a company achieves a
balance or integration of economic, environmental and
Social imperatives while at the same time addressing shareholder and
stakeholder expectations.
Different organization has framed different definitions:
The World Business Council for Sustainable Development
(WBCSA) in its publication “Making Good Business Sense” by Lord Holmes and
Richard Watts, Used the following definition.
“Corporate Social Responsibility is the continuing commitment by
business to 1? have ethically and contribute to economic development while
improving the quality of life of the workforce and their families as well as of
the local community and society at large”.
The same report gave some evidence of the different perceptions of
what this should mean from a number of different societies across the world.
Definitions as different as “CSR is about capacity building for sustainable
livelihoods. It respects cultural differences and finds the business opportunities
in building the skills of employees, the community and the
From Ghana, through to “CSR is about business giving back to
Government”
Society” from the Philippines.
Traditionally in the United States, CSR has been defined much more in
terms of a philanthropic model. Companies make profits, unhindered except
by fulfilling their duty to pay taxes. Then they donate a certain share of the
profits to charitable causes. It is seen as tainting the act for the company to
receive any benefit from the giving.
The European model is much more focused on operating the core
business in a socially responsible way, complemented by investment in
communities for solid business case reasons. This model is more sustainable
because:
1. Social responsibility becomes an integral part of the wealth creation process
which if managed properly should enhance the competitiveness of business
and maximize the value of wealth creation to society.
2. When times get hard, there is the incentive to practice CSR more and better
— if it is a philanthropic exercise which is peripheral to the main business, it
will always be the first thing to go when push comes to shove.
The business for social responsibility defined CSR. as follows:
“Corporate social responsibility operating a business in a manner which
meets or excel the ethical, legal commercial and public expectations that a
society has from business”.
“Corporate social responsibility is essentially a concept where by
companies decide voluntarily to contribute to a better society and a cleaner
environment” is how phrased in the European green paper” Promoting
European frame work for CSR”.
In the words of Millen baker “CSR is about how companies manage the
business processes to produce an overall positive impact on society”.
CSR is accepted as applying to firms where ever they operate in the
domestic and global economy. The way business engage/involve the
While there is a growing literature stream on user-driven innovation
there exists so far very little research on how innovation can be driven by other
stakeholders besides users and consumers. Empirical examples, for
stakeholder-driven innovation include the role of Greenpeace in developing
and marketing the Greenfreeze technology (Stafford & Hartman, 2001;
Matsumoto, 2002; Stafford, Hartman, & Liang, 2003) and in launching the fuel
efficient SmILE vehicle (Plante, 1999), which Neuner calls a case of “collective
prototyping” (Neuner, 2000).
Another example of activist-driven innovation concerns the fair trade
movement which as initiated and launched by activist NGOs (Tallontire, 2000;
Hockerts, 2006). Drawing on church groups, developmental charities, and
activist networks fair trade has matured from a non-profit start-up idea into a
profitable business proposition.
The Danish start-up company MyC4, a provider of online peer-to-peer
microfinance lending in Africa is another example, for stakeholder driven
innovation. Rather than basing its innovation process on in house development
the firm is sharing the innovation process with all types of stakeholders. It thus
includes both investors and lenders in the process of developing its business
processes. More important MyC4 offers the possibilities so called providers to
suggest micro-entrepreneurs leaving the setting of interest rates and
transaction costs to the providers.
Global level: Sustainability Innovation
At the global level much attention has been paid to the role venture
capital (VC) plays in promoting sustainability innovation. The term clean
technology venture capital has been introduced in order to delimit this new
type of innovation from earlier environmental technology or "green tech"
investments popularized in the 1970's and 80's. The latter were mainly end-of-
pipe solutions that strongly relied on particular legislation support.
Cleantech on the other hand is meant to denote new technology and
related business models offering competitive returns for investors and
customers while providing solutions to global challenges through breakthrough
product innovation. Cleantech venturing is thus driven by two main forces:
technology and competitiveness which both are superimposed on certain
environmental or social problems in order to generate new ideas. Whereas,
stakeholder-driven innovation is very outwards oriented, cleantech or
sustainability innovation uses technology and traditional innovation
mechanisms.
PART V: INTERNATIONAL SOCIAL INNOVATION BRANDS
Social innovation takes many forms especially in a global context. In
order to grasp the different levels and forms of social innovation the following
examples will serve as inspiration.
ABN AMRO
ABN AMRO is a Dutch corporation working in the financial service
industry. It was acquired in 2007 by a consortium of three European banks,
Royal Bank of Scotland Group, Fortis, and Banco Santander. Before this take
over, ABN AMRO had initiated a large scale acquisition scheme in Brazil in
1998. The take over of several major Brazilian banks resulted in the
establishment of Banco ABN AMRO Real. This new consortium took some
pioneering initiatives like the establishment of a new social-environmental
policy when making decisions on loans, the creation of the Real MicroCrédito,
which provided financing for small business and entrepreneurs, and the
implementation of the Ethical Fund, which was the first Social Responsible
Investment fund in Brazil. These initiatives were primarily led as a first mover
within the Brazilian market, and introduced in a market context with little
previous experience in social banking practices.
Electricité de France
The French electricity company focuses on electricity access in
developing parts of the world. The initiative, Energy Access Programme
through Rural Electricity and Services Companies, has helped bringing
electricity to rural areas of Mali, Morocco and South Africa, which would have
been otherwise ‘off the grid.’ EDF has brought electricity to 800,000 people
and the 2010 goal is one million people. EDF considers this ‘a drop in the
ocean’ but emphasizes the difference they make in these specific countries.
Around 8-10 per cent of electricity is provided through this initiative, affecting
a lot of people and businesses within the region. One of the projects in
Morocco is called Temasol and has A Literature Review on Corporate Social
Responsibility in the Innovation Process provided solar energy for more than
20,000 households in rural areas. Temasol has
undertaken a pilot project of delivering drinking water to the same
households, while at the same time extending operations to other parts of the
country. The initiatives are innovating both in terms of social capacity building,
while at the same time having a low environmental impact. It is an important
first step, and a basis for other people to further develop infrastructure in
these communities. The presence in these markets has allowed the company
to innovate social schemes further in areas of housing, employment and
education.
Essilor International
Social innovation in the French company is realized through value-led
innovation systems and Base of the pyramid activities. Essilor International has
developed both manufacturing and distribution systems in rural India for
optical lenses. The initiative was undertaken in the absence of adequate eye
care facilities, which resulted in very low usage of spectacles. Uncorrected
refractive error is one of the major causes of blindness, which if detected and
corrected, would give a fresh lease of life to individuals. In 2004, Essilor India
established a Rural Marketing Division. Access was even more important than
costs so innovation within both manufacturing and distribution was urgent.
After an initial study of the situation, Essilor realized that the lack of
consumption of spectacles was connected to a lack of product access. Essilor
has now developed a system of mobile low cost testing in rural areas as a
means to reach the remote, rural population of India and manufacture cheap,
affordable products through a steep learning curve and immense scale in
production.
Novo Nordisk
Stakeholder-driven innovation is at the core of social innovation in Novo
Nordisk. Several programmes have been initiated during the past decade, all
with global perspectives and growth potential. Novo Nordisk has undertaken a
shift from an internal focus to a reflective view through a corporate history and
culture that lays the foundation for its values-based and holistic approach to
doing business. By establishing the link between healths as a driver of wealth,
it has been possible to pursue Triple Bottom Line strategies in a way that
increasingly gets at the heart of core business processes – in the markets, as
well as in the corporate functions and governance mechanisms. The approach
is shaped through extensive stakeholder engagement embedded in
organizational behaviour and business operations. An example of these
stakeholder-driven initiatives is the DAWN programme, the largest-ever, global
survey to uncover diabetes attitudes, wishes and needs. The study focuses on
the person behind the disease and is aimed to uncover the psychosocial
aspects of diabetes. The DAWN programme taught all parties involved, that
the patients also need mental encouragement and positive guidance
empowering them to take charge of their own health. Such innovation in
public health promotion activities help effectively reduce the burden of
diseases such as diabetes.
Furthermore, Novo Nordisk is driving National Diabetes Programmes to
educate stakeholders as well as actively supporting the growing international
advocacy platform to put chronic disease prevention on the political agenda.
One such initiative is the Oxford Health Alliance.
Philips
1The Green Flagships project at Philips is a gathering and quantitative
measuring of the best lighting products. To be considered a Green Flagship, a
product must first undergo a divisional EcoDesign procedure. Next, the product
or product family is investigated in at least three of the six Green Focal Areas.
These Green Focal Areas consist of Energy Efficiency, Recyclability, Lifetime
Reliability, Packaging, Hazardous Substances and Weight. Based on this
analysis, the product or product family must be proven to offer at least 10%
improved environmental performance in at least one Green Focal Area
compared to a predecessor or competitive product, and the overall lifecycle
score must be equal or better. So while many products may be “green”, only
the top Eco-designed products achieve Green Flagship status. A Philips Green
Flagship product is a best environmental choice and a product that either has
the best environmental performance in the market, is the most innovative
environmental friendly product in its portfolio, or is the best environmental
solution in its application area. The development of Green Energy has
experienced a major boom within the last decade. The labelling of green
energy “cleantech” is increasingly attracting finance from both venture capital
and MNCs. The Green Flagship label is an example of this environmental
progress.
CORPORATE SOCIAL RESPONSIBILITY : :
Today we define Corporate Social Responsibility as the way a company balances its economic, social and environmental objectives while addressing stakeholder expectations and enhancing shareholder value.
But ACC has undertaken social volunteering practices almost from its
off
inception, – long before the term corporate social responsibility was coined. The company’s earliest initiatives in community development date back to the 1940's in a village on the outskirts of Mumbai while the first formal Village Welfare Scheme was launched in 1952. The community living around many of our factories comprises the weakest sections of rural and tribal India with no access to basic amenities.
Corporate Social Responsibility Policy “The Company shall continue to have among its objectives the promotion and growth of the national economy through increased productivity, effective utilization of material and manpower resources and continued application of modern scientific and managerial techniques, in keeping with the national aspiration; and the Company shall continue to be mindful of its social and moral responsibilities to consumers, employees, shareholders, society and the local community.
In pursuance of the above objective, ACC acknowledges the importance of the concept of inter-dependence of all sections of society. In particular, its focus revolves around the community residing in the immediate vicinity of its Cement Plants and Mines where it seeks to actively assist in improving the quality of life and making this community self-reliant. In line with its abiding concern for preservation of the ecological balance and safeguarding the health of the community, ACC has always actively demonstrated its firm resolve to protect the environment
Mindful of its great tradition, ACC is deeply committed to enhancing its reputation and respect built over the years in industry and society for its professional style of management based on philosophy of the best in business ethics.”
Community & Rural Welfare Our community development activities revolve around the under-privileged community that lives in the immediate vicinity of our cement plants and is thus more dependent on us. The range of our activities begins with extending educational and medical facilities and goes on to cover vocational guidance and supporting employment-oriented and income-generation projects like
agriculture, animal husbandry, cottage industries by developing local skills, using local raw materials and helping create marketing outlets.
At all our cement factories we share our amenities and facilities with members of the local community. This includes sharing education and medical facilities, sports and recreation. Wherever possible we share access to Bore Wells, drinking water and the usage of colony roads.
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Education Education is imparted not only to children of ACC employees but also more importantly to children from rural areas who do not have access to any medium of information or education. ACC schools maintain high standards and are open to other children of the vicinity. Often these schools are the most preferred centers of learning in the district and adjoining areas. Wherever possible, ACC provides funds and infrastructure to help set up local schools, colleges and centers for learning and education.
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Healthcare ACC takes pride in providing various forms of medical assistance to the
families of our employees and also to all those living in surrounding villages. Each factory has a medical center with full-fledged doctors and the latest of basic equipment. Mobile medical services are provided in the vicinity and regular medical camps are held to eradicate diseases, offer medical help, treatment and preventive care.
ACC has come out to provide support to state and national health initiatives such as the eradication of malaria, dengue fever and the dreaded HIV.
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HIV/AIDS - Workplace Policy
ACC is desirous of playing a meaningful role in the nationwide effort to eradicate HIV/AIDS and has pledged to support the Confederation of Indian Industry in their initiative. ACC recognizes that a fundamental step in this respect involves a clear statement of the company’s internal policy to deal with employees affected by HIV/AIDS. CII has framed a Code of Practice for Industry to guarantee and safeguard the rights of employees infected and affected by HIV/AIDS. We adopt this as ACC’s internal workplace policy for HIV/AIDS. The policy states that::
1. The company will provide a safe and healthy work environment for employees.
2. The company will educate its employees and the family on prevention, care and counseling of HIV/AIDS.
3. The company will educate its employees on safe blood donation and transfusion.
4. If an employee has been infected, information about the illness would be kept confidential by the company. Only the immediate superior would be kept advised to prevent any medical eventuality.
5. A HIV positive employee will be allowed to continue to work in his or her job unless medical conditions interfere with the specific job he or
she is doing. On account of health conditions the employee may be shifted to another comfortable position.
6. The employer should ensure that the co–employees cannot or should not shun their HIV positive peer or refuse to work alongside them. In fact, the company will assure his or her comfort level in the work place.
7. The company will, as a policy, not discriminate against any employee infected by HIV/AIDS with regard to promotions, training and any other privileges, applicable to all employees of the organisation.
8. While the company may ask a person who is being offered a job to undergo general medical tests before the issue of the appointment letter, the test will not cover HIV/AIDS, without an informed consent and pre test counseling of the candidate. |
9. The company will educate its employees and encourage them to participate in voluntary counseling and testing. However, HIV/AIDS tests will not be a part of any annual or regular health check ups, without the employee’s informed consent and pre test counseling.
10.The company will ensure that proper treatment is available to employees infected with HIV/AIDS. The company will assist the employee in meeting the cost of antiretroviral (ARV) drugs within the prescribed limits as fixed by the Company. The arrangements for treatment will be made at hospitals pre-identified by the company and payment will be made directly to the service provider. All other (non-ARV) HIV/AIDS related costs will be covered as per the company’s prevailing scheme for Health and Medical treatment.
It is hoped that this policy will help build positive and supportive attitudes towards those infected as well as promote health and safety amongst the employees.
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HIV/AIDS treatment - Anti Retroviral Treatment Centres
Disaster Relief
ACC and its employees make timely contribution to help in any national disaster. This is done both at the corporate level, by local units and employees. Apart from the Kargil cause, collective contributions by way of cash, food and clothing has been sent to help victims of calamities such as the Latur earthquake, Himachal Pradesh floods, Orissa cyclone, Gujarat
ACC’s contribution to the rebuilding effort after the 2001 earthquake in Gujarat was unique. Anticipating a scarcity of skilled masons and trained supervisors for the reconstruction work - especially in Kutch, Rajkot and Surendranagar districts, the company evolved a scheme to provide construction related training to over 2500 unemployed persons (mostly youth) in earthquake affected villages. Our best civil engineers were deputed to impart training on basic skills needed to work as masons and construction site supervisors and to make earthquake resistant structures, using local materials. This was perhaps the country’s first formal training programme of this magnitude for masons and site supervisors, organised by ACC.
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Conservation of heritage structures
The services of ACC’s Concrete experts have often been utilized in the restoration of several national heritage buildings across the country - such as sections of the Chhatrapati Shivaji Terminus (formerly Victoria Terminus) at Mumbai, the J N Petit and David Sassoon Libraries in Mumbai, churches in Goa, palaces and royal mansions in Mysore and Hyderabad and other old structures in the country.
The historic Vijayraghavgarh fort in Madhya Pradesh was recently restored under ACC’s patronage. This is not a core business of the company but an act of corporate volunteering by way of sharing knowledge and expertise.
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Global Compact
ACC Limited is a signatory to the United Nations Global Compact. We are committed to the ten principles of the Compact which foster better corporate responsibility in the areas of human rights, labour, environment and anti-corruption. Established in 1936, this company has from its very inception been conscious of its obligations to the community and has always kept in view its social responsibilities. ACC’s Vision vividly declares the company’s commitment to its corporate social responsibility and sustainable development issues making these an essential part of the business goals for the company. This communication on Progress provides an insight into our recent activities in support of the Global Compact’s Objective and our efforts towards continuous improvement.
ACC has had an old and close association with the game of cricket. From the 1950’s to the 70’s, many cricket legends were employees of ACC during their active cricket careers. This was in the days before cricketers became like the superstars they are today. ACC was then among the few companies which went out of its way to employ young cricketers, including budding young Ranji Trophy hopefuls. ACC joined hands with the Confederation of Indian Industry to sponsor India’s National Boxing team at the Athens Olympics in 2004 and the Commonwealth Games. ACC also sponsors and supports other sports at National, regional and local levels such as inter-regional Badminton championships, youth soccer and Rural Sports Meets.
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Awards & Accolades
ACC was the first recipient of ASSOCHAM’s first ever National Award for outstanding performance in promoting rural and agricultural development activities in 1976. Decades later, PHD Chamber of Commerce and Industry selected ACC as winner of its Good Corporate Citizen Award for the year 2002. Over the years, there have been many awards and felicitations for achievements in Rural and community development, Safety, Health, Tree plantation, afforestation, Clean mining, Environment awareness and protection. In 2006, we were selected to receive the Good Corporate Citizen Award of the Bombay Chamber of Commerce and Industry.
Awards & Accolades
National Award for outstanding performance in promoting rural and agricultural development – by ASSOCHAM
Sword of Honour - by British Safety Council, United Kingdom for excellence in safety performance.
Indira Priyadarshini Vrikshamitra Award --- by The Ministry of Environment and Forests for "extraordinary work" carried out in the area of afforestation.
FICCI Award --- for innovative measures for control of pollution, waste management & conservation of mineral resources in mines and plant.
Subh Karan Sarawagi Environment Award - by The Federation of Indian Mineral Industries for environment protection measures.
Drona Trophy - By Indian Bureau Of Mines for extra ordinary efforts in protection of Environment and mineral conservation in the large mechanized mines sector.
Indo German Greentech Environment Excellence Award
Golden Peacock Environment Management Special Award - for outstanding efforts in Environment Management in the large manufacturing sector.
Indira Gandhi Memorial National Award - for excellent performance in prevention of pollution and ecological development
Excellence in Management of Health, Safety and Environment : Certificate of Merit by Indian Chemical Manufacturers Association
Vishwakarma Rashtriya Puraskar trophy for outstanding performance in safety and mine working
Good Corporate Citizen Award - by PHD Chamber of Commerce and Industry
Jamnalal Bajaj Uchit Vyavahar Puraskar - Certificate of Merit by Council for Fair Business Practices
Greentech Safety Gold and Silver Awards - for outstanding performance in Safety management systems by Greentech Foundation
FIMI National Award - for valuable contribution in Mining activities from the Federation of Indian Mineral Industry under the Ministry of Coal.
Rajya Sthariya Paryavaran Puraskar - for outstanding work in Environmental Protection and Environment Performance by the Madhya
Pradesh Pollution. Control Board.
National Award for Fly Ash Utilisation - by Ministry of Power, Ministry of Environment & Forests and Dept of Science & Technology, Govt of India - for manufacture of Portland Pozzolana Cement.
Good Corporate Citizen Award - by Bombay Chamber of Commerce and Industry for working towards an environmentally sustainable industry while pursuing the objective of creation of a better society.
National Award for Excellence in Water Management - by the Confederation of Indian Industry (CII)
Golden Peacock Eco-Innovation Award 2008 won by AFR Business for efficient disposal of industrial wastes
"Vanvasi Sant Gahira Guruji Maharaj - Chhattisgarh Paryavaran Puraskar" 2008, in the Industrial Category for best efforts in Environment Conservation in Chhattisgarh State .
Safety Innovation Award by the Institution of Engineers, New Delhi
Greentech Environment Excellence Award by Greentech Foundation
Good Green Governance Award by Srishti Publications, Delhi
The Federation of Indian Mineral Industries, (FIMI) New Delhi has selected ACC, one of the four companies in India, to be Members of the "Sustainable Miners Club" for outstanding contribution to the national goal of sustainable development through excellence in environmental conservation' scientific research and social development in harnessing natural resources.
Tikaria wins IMC Ramkrishna Bajaj Certificate of Merit 2008
Gagal wins IMC Ramkrishna Bajaj National Quality Performance Excellence Trophy 2008
CNBC-TV18's India Business Leaders Award in the category India Corporate Citizen of the Year 2008
Greentech Safety Gold Awards 2009 - for outstanding performance in Safety management systems by Greentech Foundation
International Safety Award 2008 by British Safety Council
ACC tops cement industry in Karmayog CSR rating
Council for Fair Business Practices, Jamnalal Bajaj UCHIT VYAVAHAR PURASKAR 2008 - in the category Manufacturing Enterprises – Large – for exemplary record of practicing and promoting fair business practices.
Srishti Good Green Governance Award 2008 by Srishti Publications
State Safety Award for 2007 by Government of Orissa – for best performance in accident prevention, safety management and communication systems among industries in Orissa
CORPORATE SOCIAL RESPONSIBILITY : :
Today we define Corporate Social Responsibility as the way a company balances its economic, social and environmental objectives while addressing stakeholder expectations and enhancing shareholder value.
But ACC has undertaken social volunteering practices almost from its inception, – long before the term corporate social responsibility was coined. The company’s earliest initiatives in community development date back to the 1940's in a village on the outskirts of Mumbai while the first formal Village Welfare Scheme was launched in 1952. The community living around many of our factories comprises the weakest sections of rural and tribal India with no access to basic amenities.
Corporate Social Responsibility Policy “The Company shall continue to have among its objectives the promotion and growth of the national economy through increased productivity, effective utilization of material and manpower resources and continued application of modern scientific and managerial techniques, in keeping with the national aspiration; and the Company shall continue to be mindful of its
social and moral responsibilities to consumers, employees, shareholders, society and the local community.
In pursuance of the above objective, ACC acknowledges the importance of the concept of inter-dependence of all sections of society. In particular, its focus revolves around the community residing in the immediate vicinity of its Cement Plants and Mines where it seeks to actively assist in improving the quality of life and making this community self-reliant. In line with its abiding concern for preservation of the ecological balance and safeguarding the health of the community, ACC has always actively demonstrated its firm resolve to protect the environment
Mindful of its great tradition, ACC is deeply committed to enhancing its reputation and respect built over the years in industry and society for its professional style of management based on philosophy of the best in business ethics.”
Community & Rural Welfare Our community development activities revolve around the under-privileged community that lives in the immediate vicinity of our cement plants and is thus more dependent on us. The range of our activities begins with extending educational and medical facilities and goes on to cover vocational guidance and supporting employment-oriented and income-generation projects like agriculture, animal husbandry, cottage industries by developing local skills, using local raw materials and helping create marketing outlets.
At all our cement factories we share our amenities and facilities with members of the local community. This includes sharing education and medical facilities, sports and recreation. Wherever possible we share access to Bore Wells,
Education Education is imparted not only to children of ACC employees but also more importantly to children from rural areas who do not have access to any medium of information or education. ACC schools maintain high standards and are open to other children of the vicinity. Often these schools are the most preferred centers of learning in the district and adjoining areas. Wherever possible, ACC provides funds and infrastructure to help set up local schools, colleges and centers for learning and education.
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Healthcare ACC takes pride in providing various forms of medical assistance to the families of our employees and also to all those living in surrounding villages. Each factory has a medical center with full-fledged doctors and the latest of basic equipment. Mobile medical services are provided in the vicinity and regular medical camps are held to eradicate diseases, offer medical help, treatment and preventive care.
ACC has come out to provide support to state and national health initiatives
such as the eradication of malaria, dengue fever and the dreaded HIV.
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HIV/AIDS - Workplace Policy
ACC is desirous of playing a meaningful role in the nationwide effort to eradicate HIV/AIDS and has pledged to support the Confederation of Indian Industry in their initiative. ACC recognizes that a fundamental step in this respect involves a clear statement of the company’s internal policy to deal with employees affected by HIV/AIDS. CII has framed a Code of Practice for Industry to guarantee and safeguard the rights of employees infected and affected by HIV/AIDS. We adopt this as ACC’s internal workplace policy for HIV/AIDS. The policy states that::
11.The company will provide a safe and healthy work environment for employees.
12.The company will educate its employees and the family on prevention, care and counseling of HIV/AIDS.
13.The company will educate its employees on safe blood donation and transfusion.
14.If an employee has been infected, information about the illness would be kept confidential by the company. Only the immediate superior would be kept advised to prevent any medical eventuality.
15.A HIV positive employee will be allowed to continue to work in his or her job unless medical conditions interfere with the specific job he or she is doing. On account of health conditions the employee may be shifted to another comfortable position.
16.The employer should ensure that the co–employees cannot or should not shun their HIV positive peer or refuse to work alongside them. In fact, the company will assure his or her comfort level in the work place.
17.The company will, as a policy, not discriminate against any employee infected by HIV/AIDS with regard to promotions, training and any other privileges, applicable to all employees of the organisation.
18.While the company may ask a person who is being offered a job to undergo general medical tests before the issue of the appointment letter, the test will not cover HIV/AIDS, without an informed consent and pre test counseling of the candidate. |
19.The company will educate its employees and encourage them to
participate in voluntary counseling and testing. However, HIV/AIDS tests will not be a part of any annual or regular health check ups, without the employee’s informed consent and pre test counseling.
20.The company will ensure that proper treatment is available to employees infected with HIV/AIDS. The company will assist the employee in meeting the cost of antiretroviral (ARV) drugs within the prescribed limits as fixed by the Company. The arrangements for treatment will be made at hospitals pre-identified by the company and payment will be made directly to the service provider. All other (non-ARV) HIV/AIDS related costs will be covered as per the company’s prevailing scheme for Health and Medical treatment.
It is hoped that this policy will help build positive and supportive attitudes towards those infected as well as promote health and safety amongst the employees.
| TOP | CLOSE |
HIV/AIDS treatment - Anti Retroviral Treatment Centres
Disaster Relief
ACC and its employees make timely contribution to help in any national disaster. This is done both at the corporate level, by local units and employees. Apart from the Kargil cause, collective contributions by way of cash, food and clothing has been sent to help victims of calamities such as the Latur earthquake, Himachal Pradesh floods, Orissa cyclone, Gujarat earthquake, Tsunami and floods in Maharashtra.
ACC’s contribution to the rebuilding effort after the 2001 earthquake in Gujarat was unique. Anticipating a scarcity of skilled masons and trained supervisors for the reconstruction work - especially in Kutch, Rajkot and Surendranagar districts, the company evolved a scheme to provide construction related training to over 2500 unemployed persons (mostly youth) in earthquake affected villages. Our best civil engineers were deputed to impart training on basic skills needed to work as masons and construction site supervisors and to make earthquake resistant structures, using local materials. This was perhaps the country’s first formal training programme of this magnitude for masons and site supervisors, organised by ACC.
| TOP | CLOSE |
Conservation of heritage structures
The services of ACC’s Concrete experts have often been utilized in the restoration of several national heritage buildings across the country - such as sections of the Chhatrapati Shivaji Terminus (formerly Victoria Terminus) at Mumbai, the J N Petit and David Sassoon Libraries in Mumbai, churches in Goa, palaces and royal mansions in Mysore and Hyderabad and other old structures in the country.
The historic Vijayraghavgarh fort in Madhya Pradesh was recently restored under ACC’s patronage. This is not a core business of the company but an act of corporate volunteering by way of sharing knowledge and expertise.
ACC Limited is a signatory to the United Nations Global Compact. We are committed to the ten principles of the Compact which foster better corporate responsibility in the areas of human rights, labour, environment and anti-corruption. Established in 1936, this company has from its very inception been conscious of its obligations to the community and has always kept in view its social responsibilities. ACC’s Vision vividly declares the company’s commitment to its corporate social responsibility and sustainable development issues making these an essential part of the business goals for the company. This communication on Progress provides an insight into our recent activities in support of the Global Compact’s Objective and our efforts towards continuous improvement.
Communication on Progress 2009
Communication on Progress 2008
Communication on Progress 2007
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Support to national Sport
ACC has had an old and close association with the game of cricket. From the 1950’s to the 70’s, many cricket legends were employees of ACC during their active cricket careers. This was in the days before cricketers became like the superstars they are today. ACC was then among the few companies which went out of its way to employ young cricketers, including budding young Ranji Trophy hopefuls. ACC joined hands with the Confederation of Indian Industry to sponsor India’s National Boxing team at the Athens Olympics in 2004 and the Commonwealth Games. ACC also sponsors and supports other sports at National, regional and local levels such as inter-regional Badminton championships, youth soccer and Rural Sports Meets.
ACC was the first recipient of ASSOCHAM’s first ever National Award for outstanding performance in promoting rural and agricultural development activities in 1976. Decades later, PHD Chamber of Commerce and Industry selected ACC as winner of its Good Corporate Citizen Award for the year 2002. Over the years, there have been many awards and felicitations for achievements in Rural and community development, Safety, Health, Tree plantation, afforestation, Clean mining, Environment awareness and protection. In 2006, we were selected to receive the Good Corporate Citizen Award of the Bombay Chamber of Commerce and Industry.
Awards & Accolades
National Award for outstanding performance in promoting rural and agricultural development – by ASSOCHAM
Sword of Honour - by British Safety Council, United Kingdom for excellence in safety performance.
Indira Priyadarshini Vrikshamitra Award --- by The Ministry of Environment and Forests for "extraordinary work" carried out in the area of afforestation.
FICCI Award --- for innovative measures for control of pollution, waste management & conservation of mineral resources in mines and plant.
Subh Karan Sarawagi Environment Award - by The Federation of Indian Mineral Industries for environment protection measures.
Drona Trophy - By Indian Bureau Of Mines for extra ordinary efforts in protection of Environment and mineral conservation in the large mechanized mines sector.
Indo German Greentech Environment Excellence Award
Golden Peacock Environment Management Special Award - for
outstanding efforts in Environment Management in the large manufacturing sector.
Indira Gandhi Memorial National Award - for excellent performance in prevention of pollution and ecological development
Excellence in Management of Health, Safety and Environment : Certificate of Merit by Indian Chemical Manufacturers Association
Vishwakarma Rashtriya Puraskar trophy for outstanding performance in safety and mine working
Good Corporate Citizen Award - by PHD Chamber of Commerce and Industry
Jamnalal Bajaj Uchit Vyavahar Puraskar - Certificate of Merit by Council for Fair Business Practices
Greentech Safety Gold and Silver Awards - for outstanding performance in Safety management systems by Greentech Foundation
FIMI National Award - for valuable contribution in Mining activities from the Federation of Indian Mineral Industry under the Ministry of Coal.
Rajya Sthariya Paryavaran Puraskar - for outstanding work in Environmental Protection and Environment Performance by the Madhya Pradesh Pollution. Control Board.
National Award for Fly Ash Utilisation - by Ministry of Power, Ministry of Environment & Forests and Dept of Science & Technology, Govt of India - for manufacture of Portland Pozzolana Cement.
Good Corporate Citizen Award - by Bombay Chamber of Commerce and Industry for working towards an environmentally sustainable industry while pursuing the objective of creation of a better society.
National Award for Excellence in Water Management - by the Confederation of Indian Industry (CII)
Golden Peacock Eco-Innovation Award 2008 won by AFR Business for efficient disposal of industrial wastes
"Vanvasi Sant Gahira Guruji Maharaj - Chhattisgarh Paryavaran Puraskar" 2008, in the Industrial Category for best efforts in Environment
Conservation in Chhattisgarh State .
Safety Innovation Award by the Institution of Engineers, New Delhi
Greentech Environment Excellence Award by Greentech Foundation
Good Green Governance Award by Srishti Publications, Delhi
The Federation of Indian Mineral Industries, (FIMI) New Delhi has selected ACC, one of the four companies in India, to be Members of the "Sustainable Miners Club" for outstanding contribution to the national goal of sustainable development through excellence in environmental conservation' scientific research and social development in harnessing natural resources.
Tikaria wins IMC Ramkrishna Bajaj Certificate of Merit 2008
Gagal wins IMC Ramkrishna Bajaj National Quality Performance Excellence Trophy 2008
CNBC-TV18's India Business Leaders Award in the category India Corporate Citizen of the Year 2008
Greentech Safety Gold Awards 2009 - for outstanding performance in Safety management systems by Greentech Foundation
International Safety Award 2008 by British Safety Council
ACC tops cement industry in Karmayog CSR rating
Council for Fair Business Practices, Jamnalal Bajaj UCHIT VYAVAHAR PURASKAR 2008 - in the category Manufacturing Enterprises – Large – for exemplary record of practicing and promoting fair business practices.
Srishti Good Green Governance Award 2008 by Srishti Publications
State Safety Award for 2007 by Government of Orissa – for best performance in accident prevention, safety management and communication systems among industries in Orissa
Q-1 Does your company have a formalized CSR policy.
Responses Respondents%1. Yes %2. No %
INTERPRETATION-
Q- 2 Do CSR policies are of your company include policy on business ethics.
yes no
Responses Respondents%1. Yes %2. No %
INTERPRETATION-
Q-3 Does your company produce an annual sustainable CSR Report
yes no
Responses Respondents%1. Yes %2. No %
INTERPRETATION-
Q-4 Does your company have separate department / cell CSR.
Responses Respondents%1. Yes %2. No %
yes no
INTERPRETATION-
Q-5 ACC gives compensation to pollution affected people.