India Inc And Inclusive Growth

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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
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Corporate Social Responsibility - CSR

• Demonstration of
• - a commitment to societys values,
• - contribute to societys social goals
• - environmental goals and
• - economic goals
• -- through action

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CSR

• Insulate society from
• - the negative impact of
• - company operations
• - Bhopal gas leak or BP oil leak
• - products and
• - services

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CSR

• Share benefits
• - of company activities
• - with key stakeholders
• - as well as with shareholders

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Britania Industries

• Distributes biscuits for nutrition supplement for
  school children
• through Naandi Mid day meal scheme

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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

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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

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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

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Dr Reddys 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

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LABs Livelihood Advance- ment Business School

•  
• While employment avenues are increasing rapidly
  in Indias fast-growing 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.
•  

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• 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.

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• 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

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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

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Corporate CSR growth -Environment

• Before going into Environment we will look at
  projected India Growth

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Indias Growth story CSR

• Goldmaan Sachs Report
• Naresh Kotharis Article in Economic Times

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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

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• 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 worlds largest Six economies
• By 2050 worlds largest in GDP may not be rich in
  terms of per capita income

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• 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

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• 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

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Next 10 year Indian Economy growing by 4 times

• An article by Naresh Kothari, President,
• Edelweiss Capital
• Economic Times 27 03 2010

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• By 2020 Indias 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.

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• 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

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• 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

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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

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Next 10 year Indian Economy growing by 4 times

• An article by Naresh Kothari, President,
• Edelweiss Capital
• Economic Times 27 03 2010

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• By 2020 Indias 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.

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• 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

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• 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

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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

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Goldman Sachs report also says

• Todays advanced economies become shrinking part
  of the world economy
• While the BRICs grow ..
• Does the Carbon Footprint follow suit?
• Then what should be CSR

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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

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Per Capita Carbon emission - 2005

• India 1.70
• USA 23.50
• UK 10.60
• Japan 10.50
• China 5.50
• Bangladesh 0.90
• South Africa 9.00
• Germany 11.90
• Australia 26.90
• Russia 13.70
• Denmark 11.50

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• If the Carbon footprint follows suit we need to
  look at the CSR that commensurate with the
  changes and challenges the growth brings in

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Greenhouse Effect
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Types of Greenhouse effect

• Natural Greenhouse effect
• Man made Greenhouse effect - Gases like Carbon
  dioxide, Methane and other gasses also
  contribute
• t

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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

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• A single tree will absorb approximately one ton
  of carbon dioxide during its life time

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What can I as an individual do? - Reduce
dependence on vehicles using fossil fuels

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• 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

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• 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

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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

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A Heap of used Water Bottles
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• 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

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Former U.S. Vice President Al Gore addresses
the Copenhagen Climate Change Conference on Dec.
15, 2009
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Corporate Social Responsibility - CSR

• Demonstration of
• - a commitment to societys values,
• - contribute to societys social goals
• - environmental goals and
• - economic goals
• -- through action
• CSR is a part of business plan and it is a
  win-win business model

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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
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• Thank you

THANK YOU For your kind attention