Introduction to Business Ethics and CSR An Introduction To Business Ethics

This is my thoroughly acerbic intro to my business ethics class. Business Ethics is the study of what is right or wrong in the world of business. We are going to explore your views of ethics. While you will learn about many ethical systems, the emphasis of the class is upon your ethical development. It is possible that you live in a moral vacuum. You could have no beliefs whatever as to what should or should not be done. However, this possibility is so rare as to be almost impossible. More likely is that you have been influenced by society and have accepted the viewpoints of those around you. You float in a sea of belief systems absorbing what is normal and usually what is comfortable. Some, a good number, have been educated into a moral system. The most common system would be that of a religion although other systems of ethics which can be found in organizations as diverse as political parties, charities, and organizations such as Ala-non. These other systems vary dramatically in the depth and importance of ethics in them. The few remaining individuals will have actively considered what is right or wrong. Some have reflected on these issues a great deal; others less. The intent of this course is that you actively consider your ethics as they relate to issues in business. You move from moral vacuum, societys choices, religious systems, organizational beliefs and your own reflections to a highly active consideration of ethical choices. There is no rejection here of any system of ethics. It is quite likely that individuals will find in our attempt at developing a moral framework a ratification of their previous beliefs. It is likely that the strongest choice for many will be a religious system and those that have worked to develop their own judgment will usually find their search to have been significant. Hopefully, all students in the class will develop their system of ethics in some sense. However, if a student begins the class with a system of ethics or an absence

of such a system and finishes with no change, which will have no effect on the grade received.

What we will study We will begin by exploring religious codes of ethics. Many religions, in particular Protestant and Catholic Christianity, Judaism and Islam have created sets of rules that apply directly to morality in the business context. From there we will journey through the often confusing field of philosophy. We will discuss the impact of the major schools of thought on business ethics. We will look at legal obligations of duty, fair dealing and care. After this comes current thought, in particular American philosophies of business ethics. We then investigate the issues of crime and ethical issues concerning business. A focus on particular moral issues concerning individual business fields like accounting. Ethics programs and their implementation are next followed by human rights concerns and the last chapter concerns social responsibility.

Business ethics is a relevant and vital subject, but this field of ethics had been full of difficulty.

Business involves large sums of money, interactions between humans at different levels of power, interactions between one business and others, and interactions between business and government. Some businesses have stolen incredible amounts of money, caused or contributed to the death of millions of people, damaged the fabric of the world economy, colluded with other businesses to set prices or drive other businesses out of existence, bribed government officials, evaded taxes and by giving an impression of constant criminality and dishonesty damaged the social fabric of many nations and poisoned their relationships with other countries. Business ethics has been taught in the United States for about forty years. It has been a disaster. Corporate scandals so huge as to threaten the worlds financial
2

systems have occurred several times. The more mundane corporate crimes ranging from tax evasion to the participation in causing injury and death are so commonplace they require little discussion. Most of the individuals in these crimes were educated in business schools with business degrees probably the most common, the MBA. They had business ethics as a course. The fruit of that teaching is evident. There is no fruit. There is no positive result. It can be claimed that business ethics has had some immeasurable effect that cannot be calculated. If that is a justification for having this course why dont we teach a wide variety of other classes that might be effective. Is that how a business school is to be run: in the hope of a course being useful? Perhaps we should seek business success with Ouija boards, sances, and voodoo curses? If we admit that current business ethical teaching is a failure. What can be done? First, lets have a look at our current textbooks. They contain many fascinating elements. First there are thought problems at regular intervals. A student is told in this thought problem that he is in position of having dire financial problems and at the same time he is confronted with an ethical problem involving a superior. If he does the morally correct thing, it could result in dismissal and the end of a career. If he does the wrong thing, he will keephis job and the risks are quite low that he will be caught. The student will of course give the proper response to the teacher. But he has already digested the principal lesson of the example. Dont make waves. Dont risk your career. When you get out into the real world you are going to have real financial pressure and if you lose your job, there will be consequences for the rest of your life. How about that section on ethical systems, a vital part of the text? After all most of us attempt to work out our problems through with ethics code we already have and this is usually one common in our society. In most textbooks, there will be several pages perhaps even a large part of a chapter explaining the base elements of philosophy. This is so the eager business student has a good grasp on normative as opposed to descriptive ethics. You see that normative ethics is a system in which you try to figure out what is right or wrong. Descriptive ethics involves studying the current
3

systems of belief or lack thereof. You see if we taught what was right or wrong we might offer students moral choices. But we give it a quick pass and offer students the choice of doing whatever is being done now, a convenient way of avoiding any moral choices at all. You see telling students what is right or wrong means forcing our ideas on them rather than allowing them the total freedom to act without any direction at all. Then there comes the heart of the matter, a discussion of ethical systems that can range over as much as two to three pages. In one textbook which will remain nameless, Christianity is give two entire paragraphs, although there are reliable reports that a considerable number of Americans claim to live by its tenets. We then discuss utilitarianism and Kantian ethics. Occasionally to amuse myself at the beginning of the semester, I ask the class how many of them live by utilitarian ethics. After a long period of silence, I try out Kant and the categorical imperative. Would you believe that our students dont seem to make any of their moral decisions based on this thought? They dont even seem to know what these things are! But if you ask about that Christianity thing, the one with two paragraphs, many of them react. Then you will find several students who are trying to figure out what is right or wrong in their own minds developing their own philosophy. And last you will always find two or three students who believe that money is the only measure of morality in this world, a descriptive ethic. Our intent here is to explore the world of business in view of the many ethical systems that deal directly with business moral issues and there are more than a few. We also intend to look at your own moral development over the course of your life span. Most importantly we will learn to consider morality and ethics as an active endeavor. You dont put judgment in the back of your head as to what is right or wrong, you think about it actively. You have to think about what is right before the issue comes up or many times you will simply not realize the moral implications of your actions. You have a world to win, fight for it.

 The need to study Business Ethics

If business managers see the need to focus on ethical behavior, so should business students Preparation for career in contemporary business Consumers are affected by decisions made by businesses

Introduction to CSR

Corporate Social Responsibility (CSR) may have become a hot topic in

some management circles over the past few years, but for a significant proportion of ordinary employees, it is a complete irrelevance.

Definitions of social responsibility

Corporate social responsibility (CSR) is:

An obligation, beyond that required by the law and economics, for a firm to pursue long term goals that are good for society

The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as that of the local community and society at large

About how a company manages its business process to produce an overall positive impact on society

Corporate social responsibility means:

Conducting business in an ethical way and in the interests of the wider community Responding positively to emerging societal priorities and expectations A willingness to act ahead of regulatory confrontation Balancing shareholder interests against the interests of the wider community Being a good citizen in the community

Is CSR the same as business ethics?

6

There is clearly an overlap between CSR and business ethics Both concepts concern values, objectives and decision based on something than the pursuit of profits And socially responsible firms must act ethically

The difference is that ethics concern individual actions which can be assessed as right or wrong by reference to moral principles. CSR is about the organisations obligations to all stakeholders and not just shareholders. There are four dimensions of corporate responsibility

Economic - responsibility to earn profit for owners Legal - responsibility to comply with the law (societys codification of right and wrong) Ethical - not acting just for profit but doing what is right, just and fair Voluntary and philanthropic - promoting human welfare and goodwill Being a good corporate citizen contributing to the community and the quality of life

Better CSR 'delivers better performance'

High performing businesses show a strong correlation between CSR (corporate social responsibility) activities and stronger performance in terms of productivity and profitability than other businesses, according to new research.

CSR is no longer about buffing up one's corporate reputation. It's about doing good business." Across all business areas from creating shareholder value to engaging customers and employees, the report found that CSR activities have added value from 19 per cent increase in profitability in one study to outperforming other organisations by more than 40 per cent in another. Employees made a greater contribution towards their organisation if they saw it as being a more responsible employer and this in turn influenced their decision to remain with that employer. Conversely, a strong correlation existed between

increased sales volume and the perceived quality of line management, corporate culture, employee commitment and customer retention. Similarly the studies that concentrate on CSR and customer preferences show that the highest levels of employee satisfaction relate to the highest levels of customer loyalty and earnings. Ethical criteria are also becoming manifestly more significant in both purchasing and brand loyalty decisions among a growing proportion of consumers in the UK. The message to businesses is clear ethical practice, CSR performance and the bottom line are more closely linked than ever. The report also argues that those companies who place CSR policy and practice at the very heart of their business strategy gain most in terms of performance outcomes. However a lack of leadership from the top is still a barrier to placing CSR at the heart of business, a state of affairs that the report suggests can be addressed with a Leadership Agenda to help business leaders relate to their stakeholders. This includes: Baseline analysis: know where your organisation stands with its current CSR activities.

Strategic positioning: decide where, in comparison with the baseline analysis, you want your organisation to be positioned (both with peers and competitors and in regard to CSR indices).

Engagement: understand and engage with your stakeholders.

Action: implement, integrate and evaluate best practice CSR policies and activities in line with business strategy.

For policy makers the report recommends a number of further actions, most notably strengthening the existing provisions contained in the Operating and Financial Review (OFR) which formed part of the last review of Company Law. The report also recommends looking at how the leadership challenge could be sustained through sensible reforms of legislation that bolster investor/company
8

relations, and finally looking at ways of incentivising firms to conduct CSR audits.

Investor interest in CSR is on the rise

Good corporate social responsibility (CSR) policies can help companies gain a competitive advantage in attracting investors as well as offering excellent risk management strategies, say investor relations professionals at Europes leading companies.

Corporate social responsibility 'must be part of HR agenda'

A new paper from people management experts, The Chartered Institute of Personnel and Development (CIPD), argues that if it is to be credible, corporate social responsibility (CSR) must be positioned as a strategic issue for organisations and human resources specialists need to be closely involved.

THE GLOBAL IMPACT OF CSR

By Jennifer Harvey (Director of Corporate Social Responsibility at Crown Relocations) Corporate Social Responsibility (CSR) has become increasingly important in recent years. Demonstrating responsible business practices to customers, employees and other key stakeholders is now a priority, and the demand for such organisations to achieve this is higher than ever. The global movement of employees has both environmental and social impacts, but despite the increased corporate focus on CSR, employee mobility departments are not addressing these issues. According a survey conducted by Crown Relocations*, just 9% of employee mobility professionals stated that they had integrated CSR into their mobility programme design or delivery. Fortunately, there are many opportunities for organisations to implement CSR into the global movement of their workforce.

MOBILITY POLICY
One way for mobility professionals to reduce their environmental impact is through their policy structure. The two greatest sources of emissions during the relocation process are likely to be electricity and fuel consumption. Decreasing the number of home-finding trips covered can reduce emissions from excessive travel and sourcing energy-efficient homes through overseas estate agents will help to minimise the environmental impact of living, whilst lowering staff expense costs. When it comes to personal vehicles and fuel consumption, approximately 25% of global emissions are thought to come from transportation, the majority of which is estimated to be from personally owned vehicles. Employee mobility teams can have a big impact here by introducing vehicle and fuel allowances to transferees. Implementing these limits will help motivate efficient vehicle and driving choices by the transferee.When moving household goods on short and medium-term assignments, companies should consider specifying that large items should be stored at the home location rather than be shipped, thereby reducing emissions. Incorporating environmental and other responsible incentives into a mobility policy could also provide an organisation with recruiting benefits. Offering incentives to transferees who reduce their return home trips or choosing a home
10

with energy-efficient features could speak volumes to a potential employee about the values of the company, and may be a tipping point in the acceptance of a position or transfer.

SERVICE PARTNER SELECTION

One way that many global employers have integrated CSR into their businesses is through responsible service partner selection. Choosing suppliers that have formally embedded CSR into its processes, or including CSR-related questions during the selection procedure, will strengthen a companys offering and reputation. Another way to integrate CSR in this service partner selection is to choose or request that they use paperless billing or documentation. This improves efficiency and payment time a win-win for both parties on top of the obvious environmental benefits of reduced paper use. Beyond billing, online platforms can be used for various functions like expense management, document sharing and service tracking and reporting. Specific to employee mobility, there are many applications for technology including paperless home sale closings, web-based appraisal reports and online tools for language and cultural training.

TECHNOLOGY
The use of technology should not be limited to interactions with service partners. 25% of companies surveyed by Crown Relocations said that they have increased the use of teleconferencing and virtual offices to reduce unnecessary travel. Adopting IT solutions within the mobility team, by working paperless and using alternatives to travel such as video conferencing, will reinforce a companys goal of reducing emissions and improving its environmental impact overall.

TRANSFEREE EDUCATION
Even the greenest, most socially conscious transferee may not know how to make responsible choices in their host city, therefore, an effective step employers can take is to provide them with information on local options. Yet, one of the biggest challenges that HR/mobility professionals are currently facing when managing international assignments, is having in-depth, localised knowledge. Mobility professionals do not always have access to local information in order to provide responsible choices, such as recycling and volunteering, to their transferees. However, this information can be obtained from destination service providers who have on-the-ground employees available to support transferees in their new host country.
11

Providing information about local volunteering opportunities is also a cost effective way to help employees and their families settle into their new location more quickly. This is a meaningful step for mobility professionals, who report cost management as one of their biggest challenges**.

VOLUNTEERING AND EMPLOYEE ENGAGEMENT

One way to lead by example is to take the initiative to volunteer together with team members, which is also an effective way to support existing CSR initiatives. Additional benefits of doing this are team building, increased employee satisfaction and company loyalty. An internal survey conducted of more that 3,000 global employees at Crown Relocations showed that the overwhelming majority across its regions in America, EMEA and Asia-Pacific wanted to volunteer through company-sponsored initiatives and together with work colleagues. The desire to support undeserved communities transcended culture. There may also be opportunities to join forces with clients and service partners. This type of outreach is a cornerstone of CSR and in doing so a company is extending its CSR impact by reaching out to stakeholders.

INTEGRATION
Generally, the first step to integrating CSR into any company function is making sure the companys CRS mission is understood. Once this is clear, HR/mobility professionals can look for ways to weave CSR practices through their work function. Companies should keep searching for ways to work cleaner and more responsibly, by reducing energy use, helping the community more and collaborating with transferees, clients and service partners to extend the positive impact. Aligning the companys core values and behaviours with how its actions impact society and the environment, should be embedded with the organisations culture.

12

DEFINING CSR IN THE PRESENT CONTEXT:

Various definations have been offered by EU, World Bank and others. There is no accecpteddefinition of Corporate Social Responsibility. However we have 2 extreme views on this subject: A company that complies with the laws of the land in which it operates is being socially responsible. A socially responsible company is one that is purely philanthropic in that it gives without expecting as return or a benefit. It is important to note that though corporate social responsibility is synonymously and interchangeably used with either corporate philanthrophy or corporate citizenship. In theoretical sense corporate philanthrophy has to do with a businesss societal contribution of good business without which the business and society would not be able to enter into mutually beneficial virtuous cycle. In this context CSR in broader terms can be defined as Operating a business in a manner that means or exceeds the ethical, legal, commercial and public expectations that the society has of business. Hence, while dealing with the subject matter of social responsibilities of business it is important to understand what constitutes to responsible conduct of corporate at Market Place, Work Place, Environment and Communities. There are many situations in which managers, and indeed shareholders too, may need to consider what it would be right to do as what is both legal and profitable.

13

Corporate Social Responsibility in India

In India, CSR has evolved to encompass employees, customers, stakeholders and sustainable development or corporate citizenship. The spectrum of CSR includes a number of areas as human rights, safety at work, consumer protection, climate protection and caring for the environment, and sustainable management of natural resources. From the perspective of employees, CSR activities include providing health and safety measures, preserving employee rights and discouraging discrimination at workplace. This helps in fostering a healthy environment within the company. For example, after 1945, TATA implemented social welfare provisions for its employees that have since become the legislative norm. From the perspectives of customers, CRS activities may include commitment to product quality, fair pricing policies, and so on. CSR taken up by various genres of companies primarily focuses on poverty alleviation, environmental protection and sustained development. Companies are taking initiatives for developing infrastructure in rural areas, e.g., TATA Motors provides desks, benches, chairs, tables cupboards, electrical fittings and educational and sports material to various primary schools in Singur. The company has also planned similar programmes to upgrade school infrastructure and is also planning to set up a computer laboratory in one of the high schools. Similarly, TVS Electronics was involved in CSR during the Tsunami to provide relief measures to the victims. They have also participated with the government to improve sanitation in a village called Tiruvidenthai. Such Maratha MandirsBabasahebGawde Institute Of Management Studiesinitiatives will help in improving the conditions of rural people.

Satyam Foundation of Satyam Computer Services Ltd., Infosys Foundation of Infosys Technologies Ltd., GE Foundation of the General Electric Company are exemplary instances of the philanthropic commitment of the corporate sector in India.
14

After Independence, JRD Tata who always laid a great deal of emphasis to go beyond conducting themselves as honest citizens pointed out that there were many ways in which industrial and business enterprises can contribute to public welfare beyond the scope of their normal activities. He advised that apart from the obvious one of donating funds to good causes which has been their normal practice for years; they could have used their own financial, managerial and human resourced to provide task forces for undertaking direct relief and reconstruction measures. Slowly, it began to be accepted, at least in theory that business had to share a part of the social overhead costs of. Traditionally, it had discharged its responsibility to society through benefactions for education, medical facilities, and scientific research among other objects. The important change at that time was that industry accepted social responsibility as part of the management of the enterprise itself. The community development and social welfare program of the premier Tata Company, Tata Iron and Steel Company was started the concepts of Social Responsibility. (Gupta, 2007)

An ideal CSR has both ethical and philosophical dimensions, particularly in India where there exists a wide gap between sections of people in terms of income and standards as well as socio-economic status (Bajpai, 2001). According to Infosys founder, Narayan Murthy, social responsibility is to create maximum shareholders value working under the circumstances, where it is fair to all its stakeholders, workers, consumers, the community, government and the environment. Commission of the European Communities 2001 stated that being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing more into human capital, the environment and the relation with stakeholders(Bajpai, 2001). Over the time four different models have emerged all of which can be found in India regarding corporate responsibility.

15

 Role of Social Responsibility in Indian

companies:
In a global CSR study undertaken in 7 countries (viz. India, South Korea, Thailand, Singapore, Malaysia, The Philippines and Indonesia) by the U.K. based International Centre for CSR in 2003, India has been ranked second in the list. This ideally shows the value that is important to customers in India. Bharat Petroleum and MarutiUdyog have been ranked as the best companies in the country. The next comes in the list are Tata Motors and Hero Honda. CanaraBank,GujaratAmbuja and Wipro are involved in community development work of building roads, running schools and hospitals. ACC has been rendering social service for over Five decades. They are setting up schools, health centers, agro-based industries and improving the quality of rural life. BHEL is actively involved in the Welfare of the surrounding communities is helping the organization to earn good will of the local people BHEL is also providing drinking water facilities, construction of roads and culverts, provision of health facilities, educational facilities, and so on companies like ONGCs are encouraging sports by placing good players on their pay rolls. TISCO, TELCO and HINDALCO won the award for excelling in CSR, jointly given by FICCI and Business world for the 2003. ONGC has also committed resources by adopting a few villages to implement presidentDr. Abdul Kalams idea of PURA (Provision of Urban Amenities in Rural Areas). NTPC has established a trust to work for the cause of the physically challenged people.
16

Similarly in the private sectors like Infosys, Wipro and Reliance are believed to be most socially responsible corporations. In 1999 Kofi Annan of the United Nations invited corporate leaders for a Global Compact to promote nine principles covering three areas: human rights, labour rights, and sustainable development. Today, India can be legitimately proud to have had the second largest number of companies from any country subscribing to the Global Compact. Several public sector companies have joined together to form the Global Compact Society of India.

The Global Compact in India

The Global Compact (UNGC) is a voluntary, value-based initiative, complementing regulation and other, voluntary initiatives. Its main objective is to mainstream the ten CSR principles in business activities throughout the world and to catalyse actions in support of UN goals. The UNGC seeks to achieve these objectives through a multi-stakeholder network, which supports the development of CSR with collective learning, policy dialogue and partnership projects. Its basis is formed by ten principles relating to human rights, labour, the environment and anticorruption which companies are expected to adopt within their sphere of influence. In India, the UNGC is characterized by a high participation rate, although not all intended stakeholder groups, especially labour organizations, are represented. According to the empirical findings, companies and stakeholders operating in India join the UNGC mainly to benefit from knowledge-sharing and networking. However, the CSR approach of the UNGC has not yet realized its full potential in India. Many companies therefore expressed the hope of receiving more support and benefits by joining the UNGC.

17

 Corporate Social Responsibility Practices in India

Corporate Social Responsibility Practices in India sets a realistic agenda of grassroots development through alliances and partnerships with sustainable development approaches. At the heart of solution lies intrinsic coming together of all stakeholders in shaping up a distinct route for an equitable and just social order.... Corporate Social Responsibility Practices in India . Times Foundation , the corporate social responsibility wing of the Bennett, Coleman & CO. Ltd. , in partnership withTNS India and IRRAD undertook a national survey to understand the underlying dynamics of CSR and the current situation in India. CSR is not new to India, companies like TATA and BIRLA have been imbibing the case for social good in their operations for decades long before CSR become a popular cause. Inspite of having such life size successful examples, CSR in India is in a very nascent stage. It is still one of the least understood initiatives in the Indian development sector. It is followed by a handful of public companies as dictated by the very basis of their existence, and by a few private companies, with international shareholding as this is the practice followed by them in their respective foreign country. Thus the situation is far from perfect as the emphasis is not on social good but rather on a policy that needs to be implemented.

A lack of understanding, inadequately trained personnel, non availability of authentic data and specific information on the kinds of CSR activities, coverage, policy etc. further adds to the reach and effectiveness of CSR programmes. But the situation is changing. And CSR is coming out of the purview of doing social good and is fast becoming a business necessity. The business case for CSR is gaining ground and corporate houses are realising that what is good for workers - their community, health, and environment is also good for the business.

18

 Corporate Social Responsibility Practices

The survey on CSR is timely and apt. The survey is expected to facilitate formation of an alliance of CSR initiatives so that such initiatives can be further stream lined, focused and converged to a powerful force of intervention. One of the major objectives of the survey is to bring out in open the current status of CSR thereby giving both the NGOs and the common man an understanding of the various initiatives undertaken by corporates and the role that is played by the government in the field. The survey underlines the various issues - current CSR policies, major stakeholders - their current and future plans, geographical areas covered, role of civil society and government, challenges, recommendations etc. Corporate Social Responsibility Practices in India A Preview

19

4.1 ITC LTD.

History and Evolution

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. The Companys beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house.

20

In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India. In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'ChoupalSaagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'ChoupalSaagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand Paperkraft was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand Classmate in 2003. Classmate over the years has grown to become Indias largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009.

21

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of Indias fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo!in 2007. In eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
22

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills &Vivel range of soaps in February and Vivel range of shampoos in June 2008.

The ITC Way

ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems. ITCs corporate strategies are :

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITCs various businesses. Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

23

 Core Values
ITC's Core Values are aimed at developing a customer-focused, high-performance organisation which creates value for all its stakeholders:

Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all our stakeholders. We will actualise stakeholder value and interest on a long term sustainable basis.

Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction.

Respect For People

We are result oriented, setting high performance standards for ourselves as individuals and teams. We will simultaneously respect and value people and uphold humanness and human dignity. We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong team is founded on a variety of perspectives. We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through teamwork.

Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.

Innovation
We will constantly pursue newer and better processes, products, services and management practices.
24

 Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise in complying with applicable laws and regulations at all levels

Leadership in Business
An inspiring Vision. A challenging corporate strategy. World-class execution. Unmatched investments in technology, brands, people. These expressions best define ITC Limited. The result: market capitalisation of US$ 33 billion and turnover of over US$ 7 billion. ITC today is a leading FMCG marketer in India, the second largest Hotel chain, the clear market leader in the Indian Paperboard and Packaging industry and the country's foremost Agri-business player.

Additionally, its wholly owned subsidiary is one of India's fastest growing Information Technology companies in the mid-tier segment.

As each of ITC's businesses is vastly different from the other in its type, the state of its evolution and the basic nature of its activity, the challenge of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company as a whole.

ITC's diversification is powered by a robust corporate strategy designed to unleash multiple drivers of growth. Its time tested core competencies, namely unmatched distribution reach, superior brand building, effective supply chain management and acknowledged skills in hoteliering have provided ITC the springboard to create new epicenters of growth. Inspired by the overarching vision of making a contribution to the national goals of sustainable development and
25

inclusive growth, ITC has innovatively crafted unique business models that synergise long-term shareholder value creation with enhancing societal capital.

Csr activities undertaken by itc

company: ITC Ltd Income 2005-2006 = Rs 8000 Cr (rounded off) Net profit after tax (05-06) = Rs 2000 Cr (rounded off)

CSR activities:
ITC's diversified business portfolio has enabled the Company to create and nurture numerous farmer partnerships in many value chains. These cover multiple crops and geographies. Leveraging these partnerships, ITC has created a number of unique community development programmes by synergising its social sector initiatives with its business plans. ITC believes that the inter-dependence between its agri-based businesses and the farm sector constitutes a sustainable platform to enlarge its contribution to the Indian rural sector. The core principles that drive these initiatives are: Customise the development model to address the diversity of rural India. Enable even marginal farmers to access knowledge to compete on an equal footing in the market place. Empower rural communities, so that development planning and implementation are participatory. ITC's rural development initiatives embrace several critical areas: Web-enablement of the Indian farmer to help him access relevant knowledge and services to enhance farm productivity Through the e-Choupal initiative, ITC aims to confer the power of expert knowledge on even the smallest individual farmer. Thus enhancing his competitiveness in the global market.

26

The immense potential of Indian agriculture is waiting to be unleashed. The endemic constraints that shackle this sector are well known fragmented farms, weak infrastructure, numerous intermediaries, excessive dependence on the monsoon, variations between different agro-climatic zones, among many others. These pose their own challenges to improving productivity of land and quality of crops. The unfortunate result is inconsistent quality and uncompetitive prices, making it difficult for the farmer to sell his produce in the world market. ITC's trail-blazing answer to these problems is the e-Choupal initiative; the single-largest information technology-based intervention by a corporate entity in rural India. Transforming the Indian farmer into a progressive knowledge-seeking netizen. Enriching the farmer with knowledge; elevating him to a new order of empowerment. e-Choupal delivers real-time information and customised knowledge to improve the farmer's decision-making ability, thereby better aligning farm output to market demands; securing better quality, productivity and improved price discovery. The model helps aggregate demand in the nature of a virtual producers' cooperative, in the process facilitating access to higher quality farm inputs at lower costs for the farmer. The e-Choupal initiative also creates a direct marketing channel, eliminating wasteful intermediation and multiple handling, thus reducing transaction costs and making logistics efficient. The e-Choupal project is already benefiting over 3.5 million farmers. Over the next decade, the e-Choupal network will cover over 100,000 villages, representing 1/6th of rural India, and create more than 10 million e-farmers.

A digital transformation

ITC began the silent e-volution of rural India with soya growers in the villages of Madhya Pradesh. For the first time, the stereotype image of the farmer on his bullock cart made way for the e-farmer, browsing the eChoupal website. Farmers now log on to the site through Internet kiosks in their villages to order high quality agri-inputs, get information on best farming practices, prevailing market prices for their crops at home and abroad and the weather forecast - all in the local language. In the very first full season of e-Choupal operations in Madhya Pradesh, soya farmers sold
27

nearly 50,000 tons of their produce through the e-Choupal Internet platform, which has more than doubled since then. The result marks the beginning of a transparent and cost-effective marketing channel. Bringing prosperity to the farmers' doorstep. Linking farmers to remunerative markets Farmers grow wheat across several agro-climatic zones, producing grains of varying grades. Though these grades had the potential to meet diverse consumer preferences, the benefit never trickled down to the farmers, because all varieties were aggregated as one average quality in the mandis. Enter ITC's e-Choupal intervention. The e-Choupal site is now helping the farmers discover the best price for their quality at the village itself. The site also provides farmers with specialised knowledge for customising their produce to the right consumer segments. The new storage and handling system preserves the identity of different varieties right through the 'farm-gate to dinner-plate' supply chain. Encouraging the farmers to raise their quality standards and attract higher prices.

Managing risks through technology

The whats and ifs in the aqua farmers' life posed daunting odds. They were haunted by the nightmare of contaminated soil, wrong levels of salinity in the water or the killer White Spot virus, any of which could wipe out an entire shrimp crop, until the e-Choupal site provided them the support and the know-how to cope with and manage such risks. Information equips farmers with comprehensive know-how to keep abreast of food safety norms to compete in the international market. Information includes parameters for antibiotic usage, hygienic washing, sanitised dressing and air-tight packing. All these factors help to neutralise the risks involved in aqua farming. Making it economically much more attractive, benefiting hundreds of aqua farmers. A dependable knowledge partner: Coffee planters in India have for years been tossed between the highs and lows of the international coffee market. The information needed to manage
28

risks in the volatile global coffee market, price updates and prevalent trends in coffee trading were just not available to them. Launch of e-Choupal.com has equipped India's coffee planters with appropriate knowledge base and risk management tools. The site arms them with the latest prices posted on commodity exchanges like CSCE in New York and LIFFE in London. Planters have access to technical analysis by experts to help them comprehend trends, trading ranges and chart patterns in simple language. 'Parity Chart' and the 'Calculator' on the site convert the coffee prices quoted in international auctions into raw coffee equivalent for the benefit of the small growers in India. Tradersnet, a special link on the site, brings together a large number of coffee planters, traders and roasters, creating a virtual market for transparent price discovery. ITC empowers Indian coffee growers with expert knowledge in logistics and risk management, thereby enabling them to face global competition. " A quiet digital revolution is reshaping the lives of farmers in remote Indian villages. In these villages, farmers grow soyabeans, wheat and coffee in small plots of land, as they have for thousands of years. A typical village has no reliable electricity and has antiquated telephone lines. The farmers are largely illiterate and have never seen a computer. But farmers in these villages are conducting e-business through an initiative called e-Choupal, created by ITC, one of India's largest consumer product and agribusiness companies." MohanbirSawhney, McCormick Tribune Professor of Technology, Kellogg School of Management, USA.

Primary education for the rural poor to enhance employability

ITC provides poor children the greatest asset that they can aspire to: education for a brighter future.Nobel Laureate AmartyaSen has pointed out that the opportunities promised by market-based reforms are critically
29

circumscribed in a nation where large numbers cannot read or write or count. ITC's education support programmes are aimed at overcoming the lack of opportunities available to the poor. ITC believes that the extensive network of government-supported schools must be made more attractive to children. It provides critical support to state-run schools to maximise enrolment and minimise dropouts.Its initiatives include improving school buildings, constructing toilets, providing electricity connections and supplying fans and lights. ITC provides students with uniforms, satchels and books. So far, 50,260 children have benefited in 7 states. ITC has financed the establishment of Supplementary Learning Centres to help poor students cope with their lessons and improve their scholastic abilities, thereby preventing dropouts. This scheme also benefits educated local youth who serve as tutors at these centres. ITC-sponsored NGOs also conduct teacher training programmes to raise the standard of teaching in government-run primary schools. ITC helps NGOs to organise summer camps, sports and other extra-curricular activities as part of the overall development inputs for children. Social and farm forestry to generate farm incomes in tribal hinterlands while restoring ecological balance. ITC's afforestation mission goes beyond regenerating wastelands and forests. It enhances farm incomes and generates sustainable employment. ITC's afforestation project is driven by the realisation that India's poor forest cover - a meagre 11% of the geographical area of the country against a desirable 33% - has serious implications for the rural poor. Forests and common property resources constitute as much as 20% or more of the total income source of such households. ITC has effectively leveraged its need for wood fibre to provide significant opportunities to economically backward wasteland owners. The main plank of ITC's forestry projects is the building of grassroots capacities to initiate a virtuous cycle of sustainable development. In a single year- 2005-06, ITC's afforestation programme has resulted in the planting of 49 million saplings. So far, 265 million saplings have been planted in nearly 65,000 hectares, generating employment opportunities for 6,00,000 people.
30

During the next 10 years, 600 million saplings will be planted over 100,000 hectares of private wastelands, benefiting 1.2 million people.ITC, working with select NGOs, identifies poor tribals with wastelands and organises them into self-supporting forest user groups. The user group leaders are trained by ITC to follow best silvicultural practices to grow high quality timber as a viable cash crop, and other local species that meet domestic, fodder, fuel and nutrition requirements. ITC provides a comprehensive package of support and extension services to farmers - loans, land development, planting of saplings, plantation maintenance, marketing and funds management. Helping the farmer produce a quality that attracts the best price. After the first harvest, the farmer returns the loan to his forest resource user group, in the process,creating a village development fund large enough to

sponsor aspiring timber growers. Or meet other village development needs. Making sustainability a reality.

ITC also makes available high-yielding, disease-resistant clonal planting stock developed through biotechnology-based research at its Bhadrachalam unit.

The commercial viability of these clones is evident from the fact that farmers have brought nearly 41,000 hectares under such plantations. Another 8,000 hectares have been planted by the forest departments of Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra and West Bengal. At the heart of this comprehensive greening project is ITC's state-of-art research centre, consistently striving for productivity improvement of several tree species in order to give attractive land-use alternatives to traditional farmers and wasteland owners. So far 107 high-yielding, fast-growing and disease-resistant 'Bhadrachalam' clones have been produced on a commercial scale with productivity that is 6-9 times that of the normal seedlings.
31

Included in these are 23 site-specific clones adapted to problematic alkaline and saline soils. In the pipeline are research projects on casuarina, subabul, rain-fed bamboo and sustainable agro-forestry models. These strategic initiatives will, on one hand, make procurement of industrial timber exclusively from sustainable sources a reality within 10 years and on the other hand, benefit 1.2 million people
through incremental employment. Additionally, it helps forest conservation by reducing pressure on public forests. Apart from the obvious benefits of increasing the forest cover, this effort also directly contributes to in-situ moisture conservation, groundwater recharge and significant reduction in top-soil losses due to wind and water erosion. With poor households having access to their own woody biomass under ITC's social forestry programme, they can meet most of their fuelwood requirements in-house through loppings and toppings, thus further reducing pressure on public forests. As a result of the leaf-litter from multi-species plantations and the promotion of leguminous inter-crops, depleted soils are constantly enriched. Soon this will lead to a decline in fertiliser and pesticide consumption, thus reducing the pollution of groundwater sources by such chemicals. Integrated watershed development to reverse land degradation and provide critical irrigation ITC has initiated a comprehensive watershed development programme which is critical to soil-water retention and the reversal of land degradation. Some dry and despairing facts stare India in the face. The present average soil loss in the country is about 16.35 tons per hectare per year, which is at least 3 to 5 times worse than what it ought to be. Nearly 67% of the cultivated area in the country faces severe moisture stress for 5 to 10 months a year. Crop productivity in drylands is low, unstable and highly vulnerable to seasonality.

32

ITC's integrated watershed development initiative is a key intervention to reverse such moisture stress in some of the more acutely affected, droughtprone districts of the country. Currently, 1531 small and large water harvesting structures built by ITC provide critical irrigation to over 14,000 hectares of land in Andhra Pradesh, Karnataka, Madhya Pradesh, Tamil Nadu and Rajasthan. This programme will soon be extended to Bihar. ITC's watershed development seeks to achieve two critical objectives: water conservation and soil enrichment. It constitutes water user groups and trains them to plan and build water harvesting structures like contour bunds, check dams, percolation tanks and farm ponds. Trained farmers use their knowledge of the terrain to identify locations for building water structures and develop the related micro plans. ITC contributes 75% of the cost, the balance 25% being mobilised by the user groups. The rich silt excavated from percolation tanks is used to enhance soil fertility. User groups raise regular contributions from the farmers to meet the maintenance cost of these water harvesting structures.

So far ITC's Soil and Moisture Conservation Programme covers 26,704 hectares of rain fed agricultural land and generates employment during the lean season.

33

4.2

WIPRO LTD.

Company Perspectives
Wipro is an integrated corporation that offers a diverse range of products, solutions and services in systems, software, consumer care, healthcare, lighting and infrastructure technology. We are driven by our passion for quality and our commitment to customers. This drive has catapulted us among the ten most admired companies in India. Through constant innovation and a people-first attitude, we strive to assume leadership positions in all our businesses in the new millennium.

History of Wipro Limited

The third-largest company in India, Bangalore-based Wipro Limited is an ever-growing and ever-diversifying global company that manufactures and sells products and services ranging from cooking oil and soaps to healthcare instruments and information technology (IT) consulting. Although Wipro's chairman and managing director AzimHashamPremji is committed to the company's diversified business model, its future clearly lies in its continued successes in software and IT services, which make up nearly half of the company's sales and has consistently outpaced the growth of Wipro's other businesses. Wipro's world-class technologies division provides a range of high-tech services such as global IT consulting, e-business integration, and legacy systems maintenance to clients such as Cisco Systems, Thomas Cooke, and NEC. Wipro's IT efforts are so reliable that in 1998 the company became the first in the world to have been awarded the Software Engineering Institute's (SEI) coveted Level 5 Certification for quality. After an impressive debut on the New York Stock Exchange in 2000, Premji, who owns 75 percent of Wipro, became one of the top billionaires in the world.

34

 Humble Beginnings: Mid-1940s to Early1970s

Western India Vegetable Products Ltd. (Wipro Limited) was founded in 1945 by M.H. Premji. The company sold vanaspati solidified sunflower oil to retailers, who sold it in bulk, scooping 50 and 100 grams for customers who brought along their own containers. In 1947 the same year that India gained independence from British rule, 32-year-old Premji laid the foundations of a vegetable oil mill at Amalner in Maharashtra. When Pakistan's prime minister offered him a position as finance minister, Premji turned it down, citing his loyalty to India and his fledgling cooking oil business. Little did either man know that later, in the new millennium, Wipro's value would dwarf Pakistan's gross domestic product. Wipro went public in 1947 for roughly $30,000. Premji continued his political career along with his business in India. He became the first Indian chairman of Bombay Electricity Board and a board member of the Reserve Bank of India, the State Bank of India and the Life Insurance Corporation of India. But Premji's untimely demise occurred in 1966, due to a heart attack. Soon after, his 21-year-old son Azim left his unfinished studies in engineering at Stanford University in the United States and returned home to India to take over the business. What used to be a sleepy business run by various members of the family now became a highly professional one, leaving AzimPremji as the only one in the family working at Wiproa characteristic that still would hold true decades later. Premji planned to professionalize, diversify and expand his father's business, which was already valued at about $3 million. He immediately recruited top-notch managers from the renowned Indian Institute of Management (IIM), where top graduates are also courted by blue-chip firms in the West. "We were the pioneers in packaging for the mass market," explains Premji. "We went from bulk packs of vanaspati to [single-use] consumer packs." The packaging innovation took off, and the marketing and distribution network expanded into rural areas. At this
35

point, the company had no plans to go global. By 1971 business nearly doubled from when AzimPremji took over.

Going High-Tech: Mid-1970s to Late1980s

The company's first departure from its main cooking oil business came about in 1975. Drawing AzimPremji's his engineering background, and at the suggestion of one of the new IIM recruits, M. SeethapathyRao, Premji launched Wipro Fluid Power, an operation that manufactured hydraulic and pneumatic cylinders. And under the direction of P.S. Pai, Wipro's consumer care division expanded beyond oil in 1979, establishing operations in soaps, toiletries, and baby care products. Along with major expansions in distribution, Wipro's consumer care division gained so much financial strength for the company that the company was able to further diversify into IT and healthcare instruments. Wipro would diversify into computers almost as soon as India's computer industry began to develop in the mid-1970s. At the time, the Indian government was the largest purchaser of computers sold in India, and was standardized on the Unix-based platform, which helped Indian companies build a solid reputation in Unix-based software development. The growing IT industry in India attracted multinationals such as IBM, Motorola, and Texas Instruments, who took advantage of India's wealth of low-cost engineering labor. But in 1977 the Indian government decided to throw out U.S. computer giant IBM over a dispute about investment and intellectual property, creating what Premji saw as a golden business opportunity. He quickly set up an electronics unit. But instead of luring ex-IBM employees into his business, Premji hired managers from a truck maker and a refrigeration company. In 1980 Wipro launched information technology services for the domestic market, setting up in Bangalore a crack-team of R&D and marketing managers, headed by Ashok Narasimhan. Their professionalism, innovation and insistence on quality were to make Wipro the No. 1 listed information
36

technology company in the country within the next 15 years. By 1984 the company diversified into software, which it would discontinue by 1990, but it led to Wipro's foray into its growth business, software services. Wipro began manufacturing PCs and workstations in 1985, quickly building brand recognition and securing the enviable position of commanding a premium price over the competitions' cheap clones. Wipro assembled and redistributed hardware for U.S. companies like Nortel, Sun Microsystems, and Cisco Systems.

CSR activities undertaken by wipro ltd: Wipro Cares is an initiative by the Wiproites, their family members and friends to contribute in the areas of education, community and social development. Wipro Cares philosophy is to utilize the collective wisdom of volunteers to bring long term benefits and satisfaction to the community, as we believe that providing funds alone will not help the community.This is a unique corporate experiment to channelise the contributions of the Wiproites matched by Wipro, and the desires of Wiproites to make meaningful contributions to society, on a continuous basis. Wipro Cares contributes through two pronged strategy: providing rehabilitation to survivors of natural calamities and enhancing learning abilities of children from the under privileged sections of the society

Leaning enhancement : Wipro Cares has initiated Learning Enhancement Programmes at schools catering to the children from the under privileged section of the society. The main objectives of this programme is to improve the standards of learning, build confidence, ignite curiosity, broaden their awareness levels, improve their communication skills in English , build a healthy self-esteem and help them break through self imposed limits to achieve his/her greatest potential.In line with its focus, these programmes have been successfully implemented in Olcott Memorial

37

School in Besantnagar, Chennai and Government Secondary School in Viveknagar, Bangalore.

The Olcott Memorial School in Besantnagar, Chennai is a 110 years old Tamil medium school run by the theological Society. Wipro Cares volunteers work with the students of classes 4 and 5 (total strength -120 children), for about two hours on the 1st and 3rd Saturdays of every month. The Government Secondary School in Viveknagar, Bangalore in run in three different languages-Tamil, Telegu and Kannada.Volunteers who are comfortable in communicating in one of these languages take up the responsibility of each class where they devote 2 hours every Saturday. The volunteers work with children from class 2 onwards.As we go along, we plan to roll this programme in several more schools and in other cities. Wipro Cares volunteers devote 2 hours every Saturday with the ultimate desire to make learning fun for these children. Once the volunteer builds a good rapport with a group of three-four children, he or she would work on the holistic development of these children - to instill confidence among them, to build communication skills, encourage their creativity and thinking ability.

MakkalaJagriti - Wipro Cares Learning Centre: A Learning Center focused on providing enriching, exciting, safe and secure environment to children from under privileged sections of the society was inaugurated by MakkalaJagriti, and Wipro Cares in Bangalore. MakkalaJagriti is an NGO, whose focus is to work with underprivileged children in the area of education. The Learning Centre will also provide opportunities for contributing to the community to Wipro employees, their friends and families. They can get involved by interacting, involving, teaching & learning in mutually enriching way to reach quality-learning
38

environment to the economically disadvantaged children in an integrated manner through the Learning Centre..

Summer Camp for Children : The idea of interacting with the children of the school using creative and innovative ways such as arts, crafts and other fun activities appealed to the Wipro Cares volunteers. It had two fold objectives: First, to stay in touch with the children that they were involved with during the summer break. Second, to make the summer holidays enjoyable for these children, who would otherwise have to spend time playing with mud and sand outside their homes, when their parents go to work. The activities also brought forth the hidden talents of these children (and the volunteers!) be it story telling with hand puppets, painting or clay modeling. A group of volunteers took on the additional responsibility of organizing the camp, with the support of the administration. They planned out different activities every Saturday.The summer camps also helped these children develop their skills, confidence and motivation to succeed not just in classrooms but in life.

Providing Basic Infrastructure at the School

For a child to come regularly to the school and stay interested in school activities, it is necessary hat the school is equipped with proper infrastructure. Moreover, research has shown that lack of toilets facilities for girls is the main reason for the high drop out rates among students.In the Government School in Veveknagar, Bangalore-India, Wipro Cares has constructed toilet blocks to cater to e student population. Along with that, we have provided a gate, which will ensure that the kids will not run out of the school to the roads, which may be dangerous. Small but thoughtful contributions from Wipro Cares.

39

 Disaster

Wipro Cares has adopted Pushpavanam village in tsunami-ravaged belt of Tamil Nadu with a desire to rehabilitate survivors and rebuild the village. Our partner in this effort is BITsunami, a trust formed by the alumni of BITS, Pilani.

Pushpavanam, about an hour's drive from Nagapattinam, has around 1200 house holds with a population of about 6000. It lost 19 people to the tsunami which washed away 200 houses; 500 families lost their livelihood and another 250 families were affected indirectly; 35 boats supporting around 200 families, an important means of livelihood were lost or damaged and almost all cultivable land (about 100 acres) was left barren, leaving both cultivators and the agricultural labourers without a means of livelihood.

What we did earlier in Orissa and Gujarat

The damage caused by these calamities was huge; thousands of lives were lost, lakhs rendered homeless, land owners suffered incalculable losses. The calamity affected people had to begin from scratch.

Wipro Cares' contribution in both these states, which were hit by two calamities of hither-to-unseen dimensions, (Cyclone in Orissa in 1999 and earthquake in Gujarat in 2001) is unique. After mobilizing funds from Wiproites which was matched by Wipro, Wipro Cares set up a team to evaluate the damage during both these calamities. Our rehabilitation work was done after detailed discussions with the survivors and analyzing their needs.
40

4.3 SAHARA GROUP OF LTD ORGANIZATIONAL PROFILE OF THE COMPANY

COMPANYS PROFILE

Sahara India- a corporate, which believe that quality, is never an accident it is a result of planning, team work and a commitment of excellence. Sahara India Pariwar is a multi-business conglomerate with diversified business interest that includes finance, real estate, media & entertainment, tourism & hospitality, and service & trading.

Sahara India Pariwar

Year

1978 in Gorakhpur, UP,India 3 15 INR2000 1 No Trade union No owner

2010, headquarter in Lucknow,UP, India 10 lakh 50 lakh Over INR100,00,000 crore 1800

Workers Dependents Asset Establishments

41

 Important points
The employees at Sahara India Pariwar greet each other by saying Sahara Pranam Every year, Republic day and Independence day is celebrated as Bharat Parv( national festival) and Sahara India Pariwar celebrates it as the biggest event of the pariwar( family). Sahara India Pariwar has been the official sponsors of the Indian cricket team and Indian hockey team. Sahara India Pariwar in often referred as the worlds largest family 10,00,000 workers/ employees and no trade union Its five star hostel Sahara Star near Mumbai airport has the worlds largest pillar less clear-to-sky dome of its kind Holds the Guinness world record for planning 125,256 trees by 1400 volunteers in 6 hours and 35 minutes 0n 5th June 1988 at ambyvally city Hold the record in India for 25%-50% hike in the gross salary of all of its employees at one go. Conducts mass marriage ceremony of 101 underprivileged girls every year Subrato Roy Sahara is also referred as Saharasri who is the Managing worker of the Pariwar. Sahara India Pariwar had recently enterted into Indian premiarLeague(IPL) as the official sponser of Pune Team.
42

PROFIT SHARING

43

SAHARA INDIA PARIWAR

OVERVIEW

Sahara India Pariwar is a major entity on the corporate scene having diversified business interests that include Finance, Infrastructure &Housing, Media & Entertainment, Consumer Products, Manufacturing, and Services & Trading.

Qualityis our essence and we, at Sahara India Pariwar , have always stressed on the Qualitative aspect. Consequently in this run for quality, quantity has always pursued us. We look forward to reaching the zenith and reaffirm our commitment to the process of sound nation-building. We chase Quality & Quantity chase us,is the main motto of Sahara India Pariwar.

44

 CORE COMMITMENTS OF SAHARA INDIA

WE CHASE QUALITY, QUANTITY CHASES US Core Commitments Saharas Strength Emotion Emotion is in Performance of genuine duties towards the loved ones primarily in their benefit, from their point of view. EMOTION is THE KEY that generates the required energy and enthusiasm for desired quality performance. Discipline
The enthusiastic obedience of laws and orders, which are given by the rightful authority.

Duty
The enthusiastic obedience of laws and orders, which are given by our CONSCIENCE.

No Discrimination Never should we discriminate in any of our actions, reactions, attitudes, decisions, conclusions, in any of our expressions while caring for the six healths of other human beings, namely physical, material, mental, emotional, social and professional healths. Quality
Results from honouring Rules, Regulations, Commitments, Values, Fairness, Performance of Duties by honestly balancing one's own and others' reasonable point of view in the matters of Material & Emotional aspects.
45

 Give Respect
To definitely make others feel important and respected by giving sincere regard to others' feelings, reasonable wishes & thoughts with an open and receptive mind and warmth.

Self-Respect To develop a sense of respect for oneself in others' mind, i.e. to generate genuine & warm feelings for oneself among others on a continuous basis. Truth
Means total transparency in action, reaction, attitude and all other expressions and the conviction to follow the right course.

Collective Materialism
Means to progress and prosper together for collective sharing and caring and not individually or for a select group.

Religion There is a religion higher than religion itself - it is NATIONALITY. We may practise our religions in the confines of our homes, but outside, we should be Indians and only Indians. 'Bharatiyata' or Nationalism thus becomes our supreme religion. Absolute Honesty People generally manipulate and deceive for achieving their unreasonable desires and greed if others do not or can not see, hear or understand. But we firmly believe that our mind inside knows the truth and we should be absolutely honest to our mind inside and accordingly our actions, reactions, directions, decisions and all our expressions should be present in all human dealings.
46

CONCLUSION
Business houses all over the world are increasing in realizing their stake in the society and engaging in various social and environmental activities. CSR holds a very important place in the development scenario of the world today and can pose as an alternative tool for sustainable development. As companies have shown great concerns for their immediate community and the stakeholders, it can be safely concluded that much of the fate of society lies in the hands of the corporate. A successfully implemented CSR strategy calls for aligning these initiatives with business objectives and corporate responsibility across the business principles to make CSR sharper, smarter, and focused on what really matters. There are several companies in India involved in diverse issues such as healthcare, education, rural development, sanitation, microcredit, and women empowerment. Analysis of several surveys in India suggest that though many companies in India have taken on board the universal language of CSR, CSR seem to be in a confused state. Individual companies define CSR in their own limited ways and contexts. The end result being that all activities undertaken in the name of CSR are mainly philanthropy, or an extension of philanthropy. It seems that CSR in India has been evolving in domain of profit distribution. There is a need to increase the understanding and active participation of business in equitable social development as an integral part of good business practice. A long term perspective by organizations, which encompasses their commitment to both internal and external stakeholders, will be critical to success of CSR and the ability of companies to deliver on the goals of their CSR strategy. Wealth has to be created before it can be distributed. The responsibility to Maratha MandirsBabasahebGawde Institute Of Management Studiescreate wealth is of business. And responsibilities and rights must go together. Hence, the society cannot disarm business of its rights which are essential for creating value. With increasing and widespread commitment of corporate resources to CSR, attention is now shifting to the strategic formulation, implementation, and measurement of the market returns to CSR initiatives. But still a concern to companies is whether their focus on doing good, will provide positive returns to their CSR actions. This emphasize the need for better measurement models of CSR that capture and estimate clearly the effects of a companys CSR actions on its stakeholders as well as the nations in which they are operating. In this paper I
47

have tried to highlight that developing economy like India is progressing at a growth which is much higher to its social growth. It is increasing the gap between the different strata of society in the country in terms of employment, human development, capital distribution and poverty. Public sectors companies and government are continuously introducing reforms to achieve the balance but it seems that it is not sufficient to bring revolutionary changes in the social progress.

48

BIBLIOGRAPHY

WEB SITES:www.itcportal.com www.wipro.com www.sahara.in

BOOK REFRENCE:E-Government: concept & case study

Prabhu CSR

49