Assignment Code: MEDS-051 / TMA / July 2022 – January 2023

Course Code: MEDS-051

Assignment Name: Fundamentals of CSR

Year: 2022 - 2023

Verification Status: Verified by Professor

Answer all the questions. Each question carries 20 marks.

Q 1. What do you understand by CSR? Discuss the provisions under Section 135 and Schedule VII of Companies Act, 2013.

Ans) Corporate Social Responsibility (CSR) refers to the voluntary actions taken by companies to address the social, environmental, and economic impacts of their operations. It involves a commitment to operate in an ethical and sustainable manner and to contribute to the well-being of the communities in which they operate.

CSR can encompass a wide range of activities, including environmental protection, support for local communities, ethical business practices, and philanthropy. Some common examples of CSR initiatives include reducing a company's carbon footprint, supporting local education and healthcare initiatives, and promoting diversity and inclusion in the workplace. In addition to its benefits for society, CSR can also bring significant benefits to companies themselves, including improved reputation and brand image, increased customer loyalty, and improved employee engagement and retention.

There are several ways that companies can approach CSR, including incorporating sustainable practices into their operations, establishing partnerships with local organizations, and implementing CSR programs and initiatives. Companies can also engage with stakeholders, such as employees, customers, and investors, to ensure that their CSR efforts are aligned with the needs and priorities of their stakeholders.

Provisions under Section 135 and Schedule VII of Companies Act, 2013.

Section 135 and Schedule VII of the Companies Act, 2013 outline the provisions for Corporate Social Responsibility in India. These provisions are designed to encourage companies to adopt responsible business practices and make a positive impact on society and the environment.

Section 135 of the Companies Act, 2013 requires companies with a net worth of INR 500 crore or more, or a turnover of INR 1,000 crore or more, or a net profit of INR 5 crore or more in any financial year, to spend at least 2% of their average net profit for the immediately preceding three financial years on CSR activities.

Schedule VII of the Companies Act, 2013 provides a list of activities that qualify as CSR activities. This includes activities related to education, healthcare, rural development, promotion of gender equality, and protection of the environment, among others. Companies can also undertake CSR activities outside India if the projects align with the objectives outlined in Schedule VII.

The provisions under Section 135 and Schedule VII aim to ensure that companies take a strategic approach to CSR and focus their efforts on areas where they can make the greatest impact. Companies are also required to appoint a board-level CSR committee to oversee their CSR efforts and ensure that their CSR initiatives are aligned with their business strategy and values.

In addition, companies must publish an annual CSR report that details their CSR activities, impact, and expenditure. This report must be filed with the Registrar of Companies and made available to the public.

Overall, the provisions under Section 135 and Schedule VII of the Companies Act, 2013 aim to promote responsible business practices and encourage companies to make a positive impact on society and the environment. By doing so, they contribute to the sustainable development of communities and the wider economy.

Q 2. Discuss the Triple Bottom Line Theory. Give examples of successful CSR projects under each of the three dimensions of the triple bottom line.

Ans) The Triple Bottom Line (TBL) theory is a framework for measuring the sustainability and success of a business or organization. It is based on the idea that companies should consider not just their financial performance but also the social and environmental impact of their operations. The TBL theory suggests that companies should strive to balance and optimize the three dimensions of sustainability: economic, social, and environmental.

The economic dimension of the TBL refers to a company's financial performance and its ability to generate profits. The social dimension includes the impact of a company's operations on people and communities, including issues such as labour rights, community development, and human rights. The environmental dimension covers the impact of a company's operations on the natural environment, including issues such as carbon emissions, waste management, and resource use.

Adopting a TBL approach to business requires companies to consider the long-term impact of their actions, rather than just focusing on short-term gains. This can involve changes to the way a company operates, such as reducing its carbon footprint, improving working conditions for employees, or investing in renewable energy. By considering all three dimensions of sustainability, companies can create value for stakeholders and promote sustainable economic, social, and environmental outcomes.

The Triple Bottom Line theory posits that companies should balance and optimize their economic, social, and environmental impact. In this context, successful Corporate Social Responsibility (CSR) projects are those that contribute to a more sustainable future by addressing economic, social, and environmental issues. Here are a few examples of successful CSR projects under each dimension of the TBL:

Examples of successful CSR projects under three dimensions of the triple bottom line:

Economic: Johnson & Johnson's "Supporting Surgery" project, which provides low-cost, high-quality medical devices and supplies to underserved communities in developing countries. By improving access to medical care, this project contributes to economic development and helps build more resilient healthcare systems.

Walmart's "Project Gigaton" initiative, which aims to reduce the company's carbon footprint and promote sustainable sourcing practices. By reducing energy usage, waste, and emissions, Walmart is able to lower costs, increase efficiency, and promote economic sustainability.

Social: Coca-Cola's "5by20" program, which aims to empower 5 million women entrepreneurs in the company's value chain by 2020. Through training, access to finance, and other resources, this project supports women-owned businesses and helps build stronger communities.

Microsoft's "YouthSpark" program, which provides young people with access to technology, training, and employment opportunities. By empowering young people and supporting their professional development, this project contributes to social sustainability and helps build a more equitable future.

Environmental: Unilever's "Sustainable Living Plan", which aims to reduce the company's environmental footprint while improving the lives of people in its value chain. Through initiatives such as reducing greenhouse gas emissions, improving water efficiency, and promoting sustainable agriculture, Unilever is able to create a more sustainable future while supporting economic growth.

The Body Shop's "Community Fair Trade" program, which works with suppliers and farmers to promote sustainable practices and improve livelihoods. By supporting sustainable agriculture, improving working conditions, and promoting conservation, this project contributes to environmental sustainability and helps build more resilient communities.

In conclusion, these are just a few examples of successful CSR projects that address the economic, social, and environmental dimensions of the Triple Bottom Line. By adopting a holistic approach to sustainability, companies can create value for stakeholders, promote economic growth, and contribute to a more sustainable future.

In conclusion, these are just a few examples of successful CSR projects that address the economic, social, and environmental dimensions of the Triple Bottom Line. By adopting a holistic approach to sustainability, companies can create value for stakeholders, promote economic growth, and contribute to a more sustainable future.

Q 3. Discuss the different elements of quality of life. Give examples of how CSR has helped in promoting any two of the elements of quality of life.

Ans) The three elements of quality of life are:

1. Nutrition: Adequate nutrition is essential for maintaining good health and well-being. A balanced diet, rich in essential vitamins and minerals, is key to supporting physical and cognitive development, and reducing the risk of chronic diseases. Lack of access to nutritious food, especially for low-income populations, can have a significant impact on health and quality of life.

2. Family size: Family size is a crucial factor in quality of life, as larger families may experience greater financial stress and fewer resources for each individual. Family size also influences the availability of time for personal and familial pursuits and the overall quality of life for each family member. On the other hand, smaller families can have increased access to resources and opportunities, leading to a higher quality of life.

3. Health: Good health is a fundamental aspect of quality of life, as it enables individuals to lead fulfilling and productive lives. Access to quality healthcare, healthy living conditions, and good nutrition are all critical components of health and quality of life. Chronic health problems, such as obesity, heart disease, and diabetes, can have a significant impact on quality of life and well-being, while healthy lifestyles and preventative measures can improve health and overall well-being.

These elements are interrelated and have a significant impact on quality of life. For example, poor nutrition can lead to health problems, which in turn can affect family size and financial stability. On the other hand, access to quality healthcare and nutritious food can improve health, enabling individuals to lead more productive and fulfilling lives. Addressing these elements is essential for promoting sustainable and equitable communities and improving overall quality of life for all individuals.

Examples of how CSR helped in Promoting Elements of Quality of Life

Corporate Social Responsibility (CSR) initiatives have played a significant role in promoting nutrition as an element of quality of life. Here are a few examples of how CSR has helped in this regard:

Nutrition and Health

1. Health and Nutrition Programs: Many companies have launched programs aimed at improving health and nutrition among communities. For example, Nestle has initiated a global program to promote good nutrition, health, and wellness among communities.

2. Fortifying Foods: Companies such as Unilever and PepsiCo are fortifying their food products with essential vitamins and minerals, making it easier for people to meet their daily nutritional needs.

3. Supporting Smallholder Farmers: Many companies are working with smallholder farmers to improve their crop yields, with a focus on promoting nutritious crops. For instance, Coca-Cola is working with farmers in Africa to promote sustainable agriculture practices and improve the quality of crops such as maize and soya, which are used in food fortification.

4. Community Education: CSR initiatives are often accompanied by community education programs that aim to raise awareness about the importance of good nutrition. Companies such as Johnson & Johnson and GlaxoSmithKline have launched initiatives to educate communities about good nutrition practices.

5. Partnerships with NGOs: Companies are also partnering with non-government organizations (NGOs) to promote nutrition. For example, Walmart has partnered with the World Food Programme to provide food assistance to people in need.

These are just a few examples of how CSR initiatives have helped in promoting nutrition as an element of quality of life. By working together, companies and communities can make a significant impact on the health and well-being of people around the world.

Family Size

1. Corporate Social Responsibility: CSR initiatives have played a crucial role in promoting family size as an element of quality of life. Here are a few examples of how CSR has helped in this regard:

2. Reproductive Health Programs: Many companies have initiated programs aimed at improving reproductive health and family planning services in communities. For example, Pfizer has launched a global program to promote access to reproductive health services and education.

3. Supporting Smallholder Farmers: Companies such as Coca-Cola and Unilever are working with smallholder farmers to improve their livelihoods, including family planning services. By providing access to family planning services and education, these initiatives help smallholder farmers plan the size of their families.

4. Community Education: CSR initiatives are often accompanied by community education programs that aim to raise awareness about family planning and reproductive health. Companies such as Johnson & Johnson and GlaxoSmithKline have launched initiatives to educate communities about family planning and reproductive health.

5. Partnerships with NGOs: Companies are also partnering with non-government organizations (NGOs) to promote family planning and reproductive health. For example, Walmart has partnered with the International Planned Parenthood Federation to provide reproductive health services and education to communities in need.

6. Providing Access to Contraceptives: Companies such as Merck and Gilead Sciences are working to increase access to contraceptive methods, helping people plan the size of their families. By providing access to family planning services and education, these initiatives help people make informed decisions about family size.

These are just a few examples of how CSR initiatives have helped in promoting family size as an element of quality of life. By working together, companies and communities can make a significant impact on the health and well-being of people around the world.

Q 4. How can CSR help in environment protection and biodiversity conservation? Discuss the issues faced in implementing CSR in environment protection.

Ans) Corporate Social Responsibility (CSR) projects can be very important for protecting the environment and keeping biodiversity alive. CSR can help in this way in the following ways:

Ecological Balance: Ecological balance means keeping the different parts of the environment and living things in balance. Companies and organisations often do things like reforestation programmes, taking part in van mahotsava, giving out saplings on important days, promoting ecotourism, and so on.

Protection of Flora and Fauna: Flora is the name for the plants that live in a certain area, while fauna is the name for the different kinds of animal life. Biodiversity is the number and kinds of plants and animals that live in an area. Several natural and human-made things are putting the lives of many plants and animals in danger. CSR is important because it includes specific activities that protect these organisms and their habitats. Some of these are giving tree guards and protecting habitats.

Animal Welfare: Animal welfare means taking care of an animal's physical and mental health by keeping them from getting sick, giving them the right veterinary care, food, and shelter, etc. So, this broad activity can include things like building shelters for animals, sending out ambulances for sick or hurt animals, preventing animals from having babies and vaccinating them, helping animals during natural disasters, etc.

Agroforestry: Agroforestry is a land use system which integrates trees and shrubs on farmlands and rural site to improve productivity, promote diversity and ecosystem sustainability. Agroforestry provides opportunity for employment and income generation and offers food and fodder, timber, fuel wood and various other natural resources to local population. CSR activities help the people to improve their capacity in rejuvenating their lands and improve the production.

Conservation of Natural Resources: Natural resources are things that come from nature and are useful to people. The resources can be protected by strengthening institutions and policies for natural resource conservation, educating people about the importance of natural resources and the need to protect them, creating technologies for natural resource conservation, and promoting sustainable practises at different levels. As part of their CSR, companies promote clean energy sources like solar and wind power and run programmes to help people save energy.

Maintaining Quality of Air, Water and Soil: The quality of people's lives can only get better if the environment is kept in good shape. Because of this, the quality of the air we breathe and the water we drink are of the utmost importance. As part of their CSR plans, companies often put on things like "green marathons" and "river cleaning" events, among other things.

Issues Faced in Implementing CSR in Environment Protection

India's non-mandatory CSR cap is contentious. Consider the mandatory CSR's loopholes. "Green washing" and its limited scope are major concerns. A mandatory CSR monitoring agency is another issue. Thus, there is evidence that mandatory CSR reduces private sector firms. This scenario hurts small and medium-sized businesses.

Environment-related CSR also has limitations. CSR activities related to waste reduction, energy conservation, etc. may provide quantifiable data that is easy to quote and understand, but environment CSR is "beyond business" because it does not provide immediate and measurable gains. Long-term environmental benefits are well known. CSR is always linked to externalities, but environmental services are not always economic. Aesthetic, spiritual, and religious value is hard to quantify economically.

Companies say protecting the environment and human resources is their social responsibility. Corporate Social Responsibility encourages companies to do right beyond legal requirements. The idea is that public policy and companies should address social and environmental issues. In particular, CSR involves companies voluntarily incorporating social and environmental concerns into their stakeholder relationships. A socially responsible company goes beyond environmental and human well-being laws.

Small organisations' CSR activities are opaque and hard to track. Environmental protection stakeholders have conflicting interests, and CSR practitioners lack consensus. Confusion from overlapping activities and areas makes it hard to agree on a common agenda. CSR must eventually pay for itself. Thus, CSR credibility and reliability require mutual understanding on monitoring, certification, and reporting.

Q 5. What do you understand by community ownership in CSR activities? Discuss the strategy to be adopted for developing community ownership.

Ans) Community ownership in this case means that the community takes responsibility for something in partnership with an outside organisation or corporation. The goal is to give people and groups of people more power by giving them the skills they need to make changes in their own communities. Most of the time, these skills involve making use of local resources and gaining political power by getting a lot of people to work together for the same goal.

Community organisers or key persons must understand both how to work with individuals and how to affect community’s position within the context of larger social institutions. Community ownership is the process of building strong, active communities based on social justice and respect for each other. It's about getting people to take part in decisions that affect their lives by getting rid of the barriers that keep them from doing so. Community workers facilitate the participation of people in this process. They make it possible for communities to connect with each other and with the development of larger policies and programmes.

Community ownership is the combination of the processes, programmes, strategies, and activities that make a community sustainable. This is different from economic development, which is the marketing of a community's potential for growth, followed by local efforts to take advantage of opportunities. The entire set of approaches to community development practise may be considered a specialised form addressing, coordinating and building the social infrastructure at a location. Community ownership is when people work together on their own initiative and use the resources that are available.

Strategy to be Adopted for Developing Community Ownership

Local CSR programmes should consider four key factors:

Sustainability

The best way to make sure a CSR project is sustainable is to build good relationships with local communities and work with them as partners. Instead of just giving them money and treating them like recipients, the company should try to work with the community and other local stakeholders like the government, rural entrepreneurs, etc. to make partnerships that work and can last for a long time.

Co-creation

As far as sustainability goes, co-creation is important to make sure that the community has a stake in the development plan and is therefore fully involved in making the CSR initiative work. The best way to make sure that solutions are workable, accepted, and successful is to work on them with the community instead of coming up with them from the top down. This means that the company might not go through with the exact plan it had. On the contrary, it requires a willingness to compromise and change based on how the community wants to grow.

Local Team

Having a dedicated team on the ground to carry out the plan is a must. The difference between a local team and a corporate team is that a local team is the link between the company and the community. Because it knows the field well, it can avoid making mistakes and change the strategy as soon as problems or roadblocks appear. Also, its closeness to the community ensures that the company and the community will always talk to each other and that team members will be personally involved in projects that affect their own community.

Long term Investment

Lastly, local CSR projects and their most valuable results can only work if there is a long-term investment. In fact, the things that are most valuable in CSR initiatives are also the things that take the most time to build: trust, social licence to operate and reputation, and the belief that the corporate will stay with the community to achieve long-term social outcomes like better health, infrastructure, or livelihoods. If the company wants to reach these goals, it needs to build a relationship of trust with the community that lasts for a long time. Without mutual trust, the money invested could be wasted on activities, and the impact of the initiative might not be able to last.