1st Answer

Introduction: Corporate Social Responsibility is a strategic way of an organization to

conduct its business activities in an ethical way, integrating the social and environmental
concerns in their business operations and interactions with their stakeholders. CSR ensures
that the organization is complying with the local laws, international norms and ethical
standards.

Concept: As per a CSR report of last two years released by Reliance Industries the company
is engaged many initiatives to fulfil their social responsibility. Some of them are as follows:

Reliance addresses the various challenges of the local and rural communities through its rural
transformation programme. It has undertaken initiatives through this programme which
include building rural institutions, making the village water more secure, and providing
guidance to the producer farmer companies. The RTP uses technology-based solutions in
order to secure livelihoods of farmers, fisherfolk and livestock owners across India.

Apart from direct engagement, Reliance has also supported various organisations that work
for rural development with a goal to benefit the rural community. The initiatives supported
are aimed at building drought-resilient villages by ensuring water sufficiency, enhancing
income through women-led cooperative societies and fishermen producer companies, and
capacity building of farmers’ to ensure better price realisation. All these initiatives help
to achieve the SDGs (No Poverty), 2 (No Hunger) (Clean Water and Sanitation) and
(Reduced Inequalities)

Livelihoods of 1.2 million+ farmers, fisher-folk and livestock owners enhanced (over 4.8
million since inception). Eco-consistent soil conservation resulted in bringing more than
7,000 Ha of land under sustainable agricultural practices (over 64,000 Ha since
inception). Water harvesting and conservation efforts resulted in bringing over 32,000
hectares of land under irrigation since inception.

Farmer Producer Companies

Indian farmers have always faced the problem of establishing market linkages. To enable the
farmers to solve this problem, Reliance empowers them to set up Farmer Producer
Companies (FPCs). These farmer-owned and farmer-driven companies sensitize rural
producers on the importance of coming together as collectives, aggregate farm produce that
ensures economies of scale in order to fetch better prices and have sustainable access to
markets.  
This collaboration also improves the bargaining power of farmers. So far, RIL has mentored
19 FPCs, in 10 states. On 31st March 2018, the RF-mentored FPCs had around 21,500
farmers associated with them. During the financial year 2017-18, the annual turnover of FPCs
was around `67.5 Cr. Each farmer who had transacted through FPCs, on an average had an
extra income of `5,000 to `6,000.

Reliance Foundation Drishti

The Foundation’s Drishti programme takes initiatives in improving the vision of visually
impaired people from underprivileged sectors of society. Over 14,000 corneal transplants
were made of which 1,200 were done this in 2018. Through this Initiative, an international
braille newspaper is published every fortnight, and it reaches thousands of visually impaired
readers across India and 17 different countries.

Training to the Local Womenfolk on Tailoring

RI has taken an initiative of providing economic empowerment among womenfolk. Through
this, tailor-training  programmes were conducted for women of Gadimoga and 
Bhairavapalem villages. The training covered the basic skills of tailoring. All the trainees
were provided with sewing machines to enable them to establish their own ventures.
528 meritorious students were provided scholarships to pursue higher studies (over 13,100
scholarships since inception). Under Education for All initiative, quality education was
provided to around 1 lakh underprivileged children in India. In 2018, the initiative supported
12 partner NGOs for this noble initiative. Under this programme, a Digital learning Van was
launched that provided digital learning to thousands of underprivileged children across
Mumbai.

The following alternate CSR activities can be undertaken by the corporation:

1. Women Empowerment: As a part of their CSR, corporates can conduct women-
empowerment activities in partnerships with NGOs to provide education and right
information to women. Education provides women the skillset to earn a living, and makes
them aware of their basic rights and laws protecting her. Constant source of revenue helps
them achieve financial stability giving them a sense of security, and they will be strong
enough to oppose any kind of harassment against them.
2. Risk management: Most of the natural raw material comes from agriculture and forestry.
By adopting a zero deforestation policy, a resource base made for sourcing natural raw
materials is made more secure. This helps them to avoid the variation in raw material
pricing and also remove the operational and reputational risks associated with unsustainable
farming practices. It also offers growth opportunities for smallholder farmers and small-
scale distributors. Moreover, transparent information about the source of raw materials,
production process and alliance certifications is made available on product packages and
company websites, leading to enhanced reputation of the company as well as increased
sales.
3. Economic opportunities & productivity: Investing in training women on certain
business skills like accounting, hospitality and marketing create a broader base of
consumers, stronger communities, and potential female employees. Companies can
expand their pool for hiring. This allows companies to recruit among the most qualified
people with diverse skillset. When it comes to problem-solving and innovation, diverse
groups tend to outperform homogenous groups, leading to more productivity and quality.

Conclusion: Social welfare and community development is the core of Reliance's CSR
philosophy and it continues to be a top priority. Reliance embraces responsibility for the
impact of its operations on all their stakeholders including society, local and rural community
at large. The corporation also supports and partners with several NGOs for community
development and health initiatives. Apart from focusing primarily on the welfare of
economically and socially deprived sections of society, the company also aims to develop
techno-economically feasible and environment-friendly products and services for the benefit
of its consumers and ensures the highest standards of safety and environment protection in its
operations.
2nd Answer
Introduction: There are many external stakeholders of an organization and each group of
stakeholders has different demands. Many represent different sections or social groups. This
implies that organizations should act socially responsible; that is, in addition to the interests
of the shareholders, corporations should also work towards developing a better society.

It is important to fulfil corporate social responsibility in order to gain cooperation from all the
different stakeholders, and this enables a corporation to conduct its business operations
smoothly.

Corporate social responsibility is defined as the alignment of business operations with social
responsibilities towards the society, local communities, villages, government and other
stakeholders. Companies should always look to integrate corporate social responsibility into
their business strategies and activities so that the spending on CSR is justified and generates
benefits for the corporation in the form of a higher share value, goodwill, profits, ease on tax
regulations. People want to be associated with the best and the most popular, so in that
respect, the corporation rises in stature and becomes an important player in its market.

Microsoft, Coca-Cola, Tata Motors, Reliance Industries McDonald’s and FedEx, are some of
the leading companies when it comes to CSR. Also in India, many corporations are
integrating CSR into their business practices to make significant contributions to society.
After the inclusion of CSR clause in Companies act, 2013, many Indian companies are
contributing well in various CSR initiatives.

Steps to develop CSR strategy

1. Build your strategy around your company’s core competencies.

There are many worthy social initiatives that a corporation can choose to undertake.
However, without focus and alignment around what the company already does well; CSR
strategy may be less effective. If a company has established strengths, research, and
knowledge in a particular area, supporting a cause that aligns with that expertise or area
can be a win-win situation for community partners and the company with new customer
visibility and increased revenue streams. CSR can be a risk mitigation strategy or an
opportunity-seeking strategy, and leaders should look for the ‘sweet spot’ within their
organizations.

For instance, L’Oreal relies on natural materials like palm oil, which are threatened by
deforestation caused by environmentally destructive farming techniques and rising global
temperatures. So, it has adopted zero deforestation policy to ensure that none of their raw
materials and ingredients are risked being produced due to deforestation.

L’Oréal uses the deforestation risk evaluation tool devised by NGO Global Forest Watch.
Furthermore, the soya oil derivatives used by the company are sourced from zones posing
no risk of deforestation. This not only helps them to achieve zero deforestation, but also
procure their main ingredients without variability in raw material pricing and the benefit
of stable prices is passed on to the consumers.
 2. Identify issues that matter to your customers.
According to a study 87% of consumers would purchase a product from a company that
supports a social or environmental cause the consumer cares about. Consumers reward
socially responsible brands through brand loyalty, and purchasing products that provide a
social benefit.

In 2017, Loreal implemented a tool known as the Sustainable Product Optimization Tool
across all brands. SPOT allows the company to simulate diverse design options (ingredients,
packaging, sourcing, etc.) in order to assess their impact on the environment and society, and
identify potential opportunities for improvement and cost reduction. Everyday consumers are
becoming more health conscious about the products they use, and investors are rapidly
demanding a shift to product formulations away from petroleum-based materials, which
makes it extremely important for L’Oreal to make the SPOT product assessments accessible
to consumers, which not only encourages them to make choices of sustainable products with
natural ingredients, but also to build a broader consumer base. With environmental conscious
habits passed on to consumers through awareness on environmental issues, price sensitivity
would rarely be an issue. Although a beauty product company is responsible for little
emissions, a strategy for sustainable development not only helps them reduce the risk of
losing loyal customers, but also gain competitive advantage.

3. Develop CSR initiatives that make your employees proud.

Strategic companies use CSR programs in order to retain and grow their biggest asset—their
employees. 76% of millennials consider a company’s social and environmental commitments
when deciding about a long-term career, so it is important for the corporation to win the trust
of their employees.

4. Create a scorecard- The corporations should constantly monitor their CSR strategy and
initiatives it and take necessary actions wherever and whenever required. Proper tracking is
necessary to track the progress of the project and what changes need to be done (if any).
Seek to quantify socially conscious efforts directly tied to the company’s bottom line—for
example, activities that drive cost savings, new customer acquisition, and brand awareness.

5. Advertisement- If a corporation has national or a global presence; it should choose

promotional tools including newspapers, magazines, local TV advertisement etc. Social
Media has a wide reach and can be a good way to make the people aware about the social
initiatives taken by the company. Also, the company website should display the various
initiatives taken by the corporation.

6. Join hands with an NGO- Joining hands with an NGO or a social organization lends
more credibility to the company and also lets the company benefit from their experience in
fundraising and philanthropy. The support of NGOs also offers an opportunity to execute the
CSR activities properly as these social organizations devote more time and dedication in
social, environmental, local and rural community development initiatives.
Conclusion: Hence, we can conclude that the CSR strategy should be in alignment with the
company’s core operations which justifies the time and money spent on the CSR initiatives
and also make the undertakings of activities for various social causes a sustainable activity.
This will create a win-win situation for the company, environment, limited resources, local
communities and other stakeholders that benefit from these initiatives.
3rd Answer

(3a)

Introduction: I do not agree with both the above statements. In my opinion, it is the duty of
companies and government to conduct CSR activities. If companies only focus on profit, and
neglected other important things like environmental sustainability, local community, rural
then it may make it difficult for them to conduct their business operations in a sustainable
way. It is absolutely fine for these corporations earning crores of rupees to spend some
amount of their profit for the betterment of the society in which they operate. Yes, main
responsibility lies with government; however, support should be provided by the corporation
as it is their moral duty to take care of all these stakeholders that influence their business
directly or indirectly.

Concept: Instead, if CSR is used strategically and pragmatically it could be a win -win
situation for everyone. It also helps to reduce the increasing gap between the rich and the
poor.

Cost savings – One of the easiest places for a company to start engaging in sustainability is
to use it as a way to cut costs. Whether it’s about cost-saving operations, packaging or less
energy, these savings add up quickly. For instance, General Mills aims to reduce its energy
consumption by 20% by 2015. According to its 2011 CSR report, after installing energy
monitoring meters on several pieces of equipment at its Covington, Ga. plant, the company
saved $600,000. This is a win-win situation.
Reduction on legislative costs: Proactive environment strategies result in
decreasing cost related to current and future legislations.
Reputation: A company adopting a transparent CSR policy providing all the information
on the internet generates goodwill and enhanced reputations that reduce a risk of boycotts
and minimize negative press.
Business opportunity: Being a socially responsible organization can give companies an
opportunity via entry into a new market or a new product creating a win- win situation for
a variety of their stakeholders. This can be done by satisfying stakeholder’s interest while
allowing an organization to engage in profitable operations. For instance, Unilever along
with retailer Walmart encouraged customers to wash their laundry at a lower temperature
(30 degrees) in order to promote their new eco-friendly washing machine.

Conclusion: Finally, it can be said that government and companies both should work in
harmony to develop the country in terms of education, employment, poverty etc. Companies
should not only think about their selfish interests as stakeholders are a part of any business
and companies should value them equally, as this, in turn benefits everyone.

3b) Voluntary codes in CSR

Concept:
OECD guidelines for multi-national corporations
The Organisation for Economic Co-operation and Development (OECD) celebrated its 50th
anniversary, but its roots go back to the rubble of Europe after World War II. Determined to
avoid the mistakes of their predecessors in the wake of World War I, European leaders
realised that the best way to ensure lasting peace was to encourage co-operation and
reconstruction, rather than punish the defeated. The OECD Guidelines for Multinational
Enterprises are the most comprehensive set of government-backed recommendations on
responsible business conduct in existence today. The governments adhering to the Guidelines
aim to encourage and maximise the positive impact MNEs can make to sustainable
development and enduring social progress. The OECD Guidelines for Multinational
Enterprises (MNEs) are recommendations to enterprises made by the Governments of OECD
member countries. Their aim is to ensure that MNEs operate in harmony with the policies of
the countries where they operate. These voluntary standards cover the full range of MNEs’
operations.

ILO CONVENTIONS
The Core Labour Standards enshrined in the ILO Declaration on Fundamental Principles and
Rights at Work (1998) are the basic minimum human rights enshrined within the ILO’s eight
specialised conventions. The eight core Conventions are:
 Forced Labour (1930)
 Freedom of Association and Protection of the Right to Organize (1948)
 Right to Organize and Collective Bargaining & Equal Remuneration (1951)
 Equal Remuneration Convention, 1951
 Abolition of Forced Labour (1957)
 Discrimination (Employment and Occupation)(1958)
 Minimum Age Convention (1973)
 Elimination of the Worst Forms of Child Labour (1999)

ILO Conventions and recommendations cover a broad range of subjects concerning work,
employment, social security, social policy and related human rights. In today’s globalised
economy, international labour standards are essential components in the international
framework for ensuring that the growth of the global economy provides benefits to all.

ISO 9000 AND ISO 140004

The ISO issues guidelines for voluntary standardisation for an extremely wide variety of
areas, primarily for technical aspects. ISO guidelines are accredited with these standards.
More recently, they have developed environmental management standards ISO 14000 series.
In addition, the ISO 9000 is a quality management system. ISO is currently in the process of
developing an ISO standard for CSR. The guidance standard will be published in 2010 as ISO
26000 and is meant for voluntary use.

ISO 9000
The ISO 9000 family addresses various aspects of quality management and contains some of
ISO’s best known standards. The standards provide guidance and tools for companies and
organizations who want to ensure that their products and services consistently meet
customer’s requirements, and that quality is consistently improved. Standards in the ISO
9000 family include:
 ISO 9001: 2008 – sets out the requirements of a quality management system
 ISO 9000: 2005 – covers the basic concepts and language
 ISO 9004: 2009 – focuses on how to make a quality management system more
efficient and effective
 ISO 19011: 2011 – sets out guidance on internal and external audits of quality
management systems.