India Inc And Inclusive Growth
CSR – A Win – Win business
model
Dr P V S Jagan Mohan Rao
M Com, LL B, FCS, FICWA, Ph D
Company Secretary - Hyderabad
Past President The Institute of Company
Secretaries of India – New Delhi
Corporate Social
Responsibility - CSR
Demonstration of
- a commitment to society’s values,
- contribute to society’s social goals
- environmental goals and
- economic goals
-- through action
CSR
Insulate society from
- the negative impact of
- company operations
- Bhopal gas leak or BP oil leak
- products and
- services
CSR
Share benefits
- of company activities
- with key stakeholders
- as well as with shareholders
Britania Industries
Distributes biscuits for nutrition supplement
for school children
through Naandi Mid day meal scheme
CSR
Demonstrate that the company can make
more money by doing right thing of inclusive
growth
- Inclusive growth – growth of all
stakeholders including employees
- Midhani
Midhani - Hyderabad
Loss making company
Turned into profit making company
Employee contribution
Employee morale and ownership
Swami Vevekananda said Every Soul is
Protentially Devine
The Japan – Supervisor
Naandi Foundation
Promoted by industry leaders
Government – Corporate - Civil Society partnership
Mid-day meal scheme – more than 1 lac
meal cooked in one place and distributed to
schools- Hyderabad
- Competition for the scheme
Corporates can avoid reinventing the wheel
Nanhi Kali – girl child scheme
Mahindra & Mahindra
Capgemini
Dr Reddy’s Foundation
"Everyone has a purpose in life and a
unique talent to give to others. And when
we blend this unique talent with service
to others, we experience the ecstasy and
exultation of own spirit, which is the
ultimate goal of all goals."
- Dr. Anji Reddy
LABs – Livelihood Advancement Business School
While employment avenues are increasing rapidly in India’s fastgrowing economy, they are not being filled by people with
compatible skill-sets.
DRF attempts to bridge the divide between those who have access
to opportunities and those who are increasingly being
marginalized.
LABS addresses the needs of youth (18-35 years) who are
constrained by low income levels,
inadequate skills,
irregular employment,
absence of opportunities for training and
development,
family indebtedness and
little bargaining power at the economic or social level.
To enable these youth to gain a foothold in the competitive job
market, LABS gives them livelihood and soft skills in an
environment of interactive learning and mentoring that
develops their inherent strengths.
The curriculum is constantly upgraded in tune with industry
requirements. The aspirants are also put through intensive
Communicative
English,
on-the-job training and
work-readiness modules,
to help them understand the workplace better.
So far 2,12,048 people have been trained
They are Self employed or Placed in jobs
They are no less than any business
school graduates in their own right
This is a good example of CSR and
inclusive growth
What is Sustainable
Growth
 “Sustainable development is
development that meets the needs of
the present without compromising the
ability of future generations to meet
their own needs.”

.. Timeforce change
Corporate CSR – growth Environment
Before going into Environment we will look
at projected India Growth
India’s Growth story –CSR
Goldmaan Sachs Report
Naresh Kothari’s Article in Economic
Times
Goldman Sachs
Dominic Wilson and Roopa Purushothaman
Dreaming with BRICs the path to 2050
Over the next 50 years
Brazil
Russia
India
China
The BRICs could become large economic force in
the world
In less than 40 years BRICs together larger
than G 6 in US dollar terms
By 2025 BRICS – half of the size of G 6
In 2050 – of the current G 6 only US and
Japan may be among the world’s largest
Six economies
By 2050 worlds largest in GDP may not be
rich in terms of per capita income
Higher Growth may load to increased
demand for capital
The weight of BRICs in investing portfolios
could raise sharply
Capital flows might move further in their
favour
The shift in GDP relative to the G 6 takes place steadily
over the period
But it will be most dramatic in the first 30 years
Growth for the BRICs is likely to show significantly
towards the end of the period
With only India seeing growth rates significantly above
3% by 2050
Individuals in BRIC countries are still likely to be poorer
on an average than individuals in the G6 economies
– so where is inclusive growth
Next 10 year Indian Economy
growing by 4 times
An article by Naresh Kothari, President,
Edelweiss Capital
Economic Times – 27 03 2010
By 2020 India’s GDP is likely to quadruple from
the current $ 1.1 Trillion to about $ 4.5 trillion
Per capita income from Rs 50,000 to Rs
1,50,000
The number of households with income of more
than Rs 16 lacs will be over 18 million, while
number of middle class holders (1.5 to 16
lacs) would grow by 50% to 180 million
Number of deprived householders – below 1.5
lacs is likely to be reduced by 25% to 180
Indian consumption is likely to increase 3.7
times to about 113 trillion with discretionary
expenditure likely to increase significantly.
Education sector to grow 5.7 times
Domestic pharma and health care- 6 times
Media and entertainment 5 times
Organised retail 6.3 times
Automobile sector 4.8 times
Urban premium housing 6.5 times
By 2020 expected savings -$ 1.4 trillion
more than our current GDP
The massive growth in savings will propel
5.3 times growth in banking
4.7 times in broking
5.7 times in asset management and 4.7
times in life insrance
Three key risks to achieve
and managing this growth
Execution of planned infrastructure projects
Inflation
The third risk to growth is the inclusion of
lower income segments
With Gini index of 36, the income disparity
levels in India are amongst the highest
tin the world. It is important that the
Bottom of the pyramid participates in the
growth process
Next 10 year Indian Economy
growing by 4 times
An article by Naresh Kothari, President,
Edelweiss Capital
Economic Times – 27 03 2010
By 2020 India’s GDP is likely to quadruple from the current $ 1.1
Trillion to about $ 4.5 trillion
Per capita income from Rs 50,000 to Rs 1,50,000
The number of households with income of more than Rs 16 laksh will
beve over 18 million, while number of middle class holders (1.5 to
16 lakhs) would grow by 50% to 180 million
Number of deprived householders – below 1.5 lacs is likely to be
reduced by 25% to 180
Indian consumption is likely to icrease 3.7 timesto about 113 trillion
with discritionary expenditure likely to increase significantly.
Education sector to grow 5.7 times
Domestic pharma and health care- 6 times
Media and entertainment 5 times
Organised retail 6.3 times
Automobile sector 4.8 times
Urban premium housing 6.5 times
By 2020 expected savings -$ 1.4 trillion
more than our current GDP
The massive growth in savings will propel
5.3 times growth in banking
4.7 times in broking
5.7 times in asset management and 4.7
times in life insrance
Three key risks to achieve
and managing this growth
Execution of planned infrastructure projects
Inflation
The third risk to growth is the inclusion of
lower income segments
With Gini index of 36, the income disparity
levels in India are amongst the highest
tin the world. It is important that the
Bottom of the pyramid participates in the
growth process
Goldman Sachs report
also says
Today’s advanced economies become
shrinking part of the world economy
While the BRICs grow ..
Does the Carbon Footprint follow suit?
Then what should be CSR
Carbon Footprint
 The whole society is looking at corporates and
and almost staring at them as polluters
 The Copenhagen – COP 15
 The article written by Brian Walsh
 Steep change in corporate response or reaction
to the environmental issues
 Kyoto Vs Copenhagen
 Each one of our activities produces some
Greenhouse Gases
 Corporates should have record of their carbon
footprint and disclose how do they deal with that
Per Capita Carbon
emission - 2005











India
USA
UK
Japan
China
Bangladesh
South Africa
Germany
Australia
Russia
Denmark
1.70
23.50
10.60
10.50
5.50
0.90
9.00
11.90
26.90
13.70
11.50
If the Carbon footprint follows suit we need
to look at the CSR that commensurate
with the changes and challenges the
growth brings in
Greenhouse Effect
Types of Greenhouse
effect
 Natural Greenhouse effect
 Man made Greenhouse effect - Gases like
Carbon dioxide, Methane and other gasses
also contribute
t
Manmade Greenhouse
Gasses






From burning of fossil fuels
Industrialization
Deforestation
Exploitation of Nature
About 8 m trees are lost every day
Deforestation accounts for about 20% of
global carbon dioxide emissions
 A single tree will absorb approximately
one ton of carbon dioxide during its life
time
What can I as an individual
do? - Reduce dependence
on vehicles using fossil fuels
 A woman carries her child through floodwaters in Bangladesh in
2008. Bangladesh, one of the nations considered most vulnerable
to the effects of climate change, is seeking a 15 percent share of
international funding for climate change adaptation.
REUTERS/Andrew Biraj
As countries discourage goods produced
with child labour a day will come where
goods produced through carbon
emissions will also be discouraged
So corporates should be ready for
tomorrows challenges – only good CSR
would help
Usage of plastic bags
 Crores of plastic bags are used daily
though banned
 It takes 1000 years for a plastic bag to
get degraded
 The Earth gets contaminated – effects
ground water and land quality
 Animals eat the plastic and become ill
A Heap of used Water Bottles
 Most important step would be R & D
 R &D for
 To reduce industrial emissions
 To find out alternate sources of fuel
 Jetropa – bio diesel Vs agriculture
Former U.S. Vice President Al Gore addresses the
Copenhagen Climate Change Conference on Dec. 15, 2009
Corporate Social
Responsibility - CSR
Demonstration of
- a commitment to society’s values,
- contribute to society’s social goals
- environmental goals and
- economic goals
-- through action
CSR is a part of business plan and it is a
win-win business model
Our Prayer
“Sarve bhavantu sukhinah:
Sarve santhu niramayaaha: /
Sarve badraani pasyantu
Ma kaschith dhukha baag bhavet // ”
“Let all people be happy
Let all live with complete good health
Let all know what is good and what is not so
good
Let no body be subjected to troubles”
THANK YOU
For your kind attention
(C)Sanjaypanda1955@yahoo.com
Thank you
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