its about corporate social responsibility of the companies

2. This is the first time that a CSR Rating for companies has been undertaken in India or anywhere in the world. The Karmayog CSR study led to some very clear & simple insights, that: “ Every company harms the environment !” ( Just as an individual does ) Corporate Social Responsibility is thus only about two aspects: 1) Reducing the Negative Effects : Steps taken by a company to neutralise, minimise or offset the harmful effects caused by its processes and product-usage 2) Increasing the Positive Contributions : Further steps taken using its resources, core competence, skills, location and funds for the benefit of people and the environment

3. Easy everyday examples of social responsibility… -Creating a Patients’ Information Centre & Library -Encouraging citizens to help accident victims by taking care of legal aspects of accidents / emergency cases Private Hospitals 4 -Awareness posters of symptoms of different diseases -Collecting & donating old medicines to charitable hospitals -Offering discounted medicines for poor patients Shops e.g.: Chemists 3 - Promoting accident awareness, pedestrian safety -Checking and offering fuel efficiency tips Petrol Pumps 2 -Screening of social message films - Special shows for underprivileged groups -Offering table space for NGOs -Adopting a nearby garden / open space and maintaining it Movie Theatres / Multiplexes / Malls 1 Examples of socially responsible activities Type of Organisation No.

4. Easy everyday examples of social responsibility -Suggesting solutions for local problems to govt & media -Maintaining nearby public spaces, including footpaths -Offering space in society (garage, etc.) for use for training/classes. etc. and as a material collection centre Housing Societies 6 -Donating excess food responsibly -Composting food waste Hotels and Restaurants 7 Examples of socially responsible activities Type of Organisation No. -Featuring profiles and achievements of NGOs / citizens -Spreading social service messages Media (TV, print, radio) 8 -Getting Alumni to institute scholarships & prizes -Offering space for training / classes / sports, etc. -Adopting a local garden Private Schools & Colleges 5

5. Inferences from the Karmayog CSR rating exercise

6. Inferences from the Karamayog CSR rating exercise… Most spread their CSR funds thinly across many activities, thus reducing the effectiveness and seriousness 5) CSR Effectiveness Most seem reluctant to do CSR activities unless mandated by law 4) CSR Commitment Most use CSR as a marketing tool 3) CSR as PR Many are only making token gestures towards CSR in tangential ways such as donations to charitable trusts, NGOs, sponsorship of events, etc. 2) Token Gestures The results of the CSR Rating exercise are extremely disappointing since almost half of the companies are not doing any CSR 1) No CSR

7. Inferences from the Karmayog CSR rating exercise Very few companies openly state the damage caused by their processes and the steps being taken to reduce this damage 7) CSR Transparency Virtually no company states how much it spends on CSR 9) CSR Spend Only 7 * companies publish a Corporate Sustainability Report to measure and assess the impact of their business on the environment * These are Cummins India, Jubilant Organosys, ITC, Reliance Industries, Dr. Reddy’s, Tata Motors and Tata Steel 8) CSR Reporting Very few have a clearly defined CSR philosophy. Most implement CSR in an ad-hoc manner, unconnected with their business process. 6) CSR Philosophy

10. AMUL ANAND MILK UNION LTD. AMUL is a three tier co-operative organization. 1 st tier :- co-operative society at the village, of which; milk producers are voluntary members. They purchase milk form member & sell it to the district level co-operative. 2 nd tier :- The district co-operative that processes milk into milk products, markets locally & sells surplus to the state co-operative for national & international marketing. There are 12 district co- operatives managed by a 15 member board elected by nominated representatives or chairmen of the village co-operatives. 3 rd tier :- The state level co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF) responsible for national and international marketing of milk and milk products produced and sold to it.

13. Expenditure done on CSR by GCMMF ( Gujarat Co-operative Milk Marketing Federation) PROFITS:- Profit of the GCMMF is very low. The net profit (PADT) of the GCMMF during 2003-04 was Rs 7.31 crore against a turnover of Rs 2,947 crore, a meagre 0.25%. Further out of the net profit of Rs 7.31 crore, Rs 4 crore was given as share dividend to the co-operatives. To fulfill its corporate social responsibility towards its milk producers and co-operatives the GCMMF works on razor thin profits and retention of funds.