Topic -Corporate Social Responibility and ENVIRONMENTAL

RESPONSIBILITY

1.INTRODUCTION- The most ideal definition of CSR has been given by the World
Business council for sustained development which says - Corporate Social
Responsibility is the continuing commitment by business houses to behave ethically and
contribute to economic development while improving the quality of life of the workforce
and the local community at large. There are few common threads that connect all the
perspectives of CSR with each other, the dedication to serve the society being most
important of them.

Section 135 of the Companies Act 2013, in conjunction with The Companies (Corporate
Social Responsibility Policy) Rules, 2014, outlines the requirements for corporate social
responsibility (CSR) in India. This legislation necessitates that companies meeting
specific financial criteria allocate a minimum of 2% of their average net profits from the
preceding three fiscal years towards CSR activities annually. Notably, India stands as
one of the few countries globally to have implemented a mandatory CSR provision for
commercial entities, distinguishing itself in the realm of corporate governance and social
responsibility.

Companies that support corporate social responsibility (CSR) are usually set up in a
way that enables them to operate in a way that makes a beneficial impact on society.
This type of self-control manifests itself in initiatives or plans based on the objectives of
an organization. Corporate social responsibility reports are a common way for many
firms to inform internal and external stakeholders about their activities.

The definition of "socially responsible" varies by organization. According to the United

Nations and European Commission, Corporate Social Responsibility (CSR)
contributes to a triple bottom-line approach:
financial gains
environmental conservation and
social equity promotion.

It is anticipated that civil society organizations, advocacy groups, governmental bodies,

and the business sector should collaborate to establish suitable mechanisms and
opportunities for marginalized communities, integrating them into mainstream society.
The efficacy of CSR is contingent upon its implementation as a fundamental component
of a company's strategic development plan. It is crucial for businesses to recognize,
endorse, and execute effective policies and practices that yield positive outcomes
across all three bottom-line areas.
Firms are frequently led by the concept of the triple bottom line, which states that a
company must be devoted to monitoring its social and environmental effect,
sustainability efforts, and profitability.

1.2 CRITERIA FOR CSR

In India, a company must adhere to Corporate Social Responsibility (CSR) regulations if
it satisfies any of the listed conditions from the preceding fiscal year.
Total assets: An amount exceeding Rs. Five hundred crore
Revenue: Generating revenue exceeding Rs. one billion
Net earnings: Earnings exceeding Rs. 50 million

Companies that qualify must dedicate a minimum of 2% of their average net profit from
the last three financial years to CSR initiatives.

1.3 TYPES OF CORPORATE SOCIAL RESPONSIBILITY

CSR is typically divided into four areas:

1. Environmental
2. Philanthropic
3. Ethical, and
4. Economic Responsibility.

2.ENVIRONMENTAL RESPONSIBILITY

Environmental responsibility reflects the notion that organizations should conduct their
operations in an ecologically conscious manner. This concept is widely recognized as a
fundamental aspect of Corporate Social Responsibility (CSR). Some organizations refer
to these initiatives as "environmental stewardship."

Organizations can demonstrate their commitment to environmental responsibility

through various approaches:

1. Mitigating harmful practices:

○ Reducing pollution and greenhouse gas emissions
○ Minimizing the use of single-use plastics
○ Decreasing water consumption
○ Lowering overall waste production
 2. Managing energy consumption:
○ Increasing the use of renewable energy sources
○ Utilizing sustainable resources
○ Incorporating recycled or partially recycled materials
3. Compensating for negative environmental impacts:
○ Engaging in tree-planting initiatives
○ Providing financial support for relevant research
○ Contributing to environmental causes

2.1 What does environmental CSR entail?

Environmental Corporate Social Responsibility (CSR) seeks to mitigate the adverse

environmental impacts of an organization's operations. Such initiatives may encompass
various areas, including:

● Energy consumption optimization

● Water usage reduction
● Efficient waste management practices
● Promotion of recycling efforts
● Reduction of greenhouse gas emissions
● Implementation of environmentally conscious office policies and business travel
guidelines

It is noteworthy that several of these initiatives hold significance from both

environmental and economic perspectives.

2.3 Best practices followed by Indian Companies related to CSR wrt Environment are
as follows :-

1.INFOSYS:- The organization demonstrates a commitment to the responsible

utilization of environmental resources, recognizing the direct impact of energy
consumption on ecological systems. The Infosys Foundation's csr initiatives w.r.t
environment, encompass several noteworthy projects, including:

● The rehabilitation of aquatic ecosystems in Karnataka

● Provision of aid and support for communities affected by natural calamities in
Tamil Nadu, Karnataka, and Kerala
2.SAIL:- It has implemented effective measures in various domains, including
environmental preservation, healthcare services, educational initiatives, female
empowerment, and the provision of potable water.

3.Mahindra & Mahindra:- M&M stands out as the top Indian company in leading efforts
for climate change action and sustainable business practices in the realm of Corporate
Social Responsibility.
In the financial year 2018-19, the company invested INR 93.50 crores in CSR initiatives.
The reason stems from a focus on sustainability.

4.Tata Chemicals Ltd:- Tata Chemicals' Corporate Social Responsibility (CSR)

initiative, known as BEACON, encompasses several key areas:

1. Blossom: Promoting and developing indigenous crafts

2. Enhance: Elevating overall quality of life
3. Aspire: Advancing education and vocational skills
4. Conserve: Supporting biodiversity, managing natural resources, and addressing
climate change for enhanced environmental sustainability
5. Nurture: Providing healthcare, improving sanitation, and ensuring access to clean
drinking water

As a prominent CSR entity in India, Tata Chemicals allocates INR 12 crores annually to
CSR activities. Notably, 30% of the Tata Chemicals Society for Rural Development
(TCSRD) budget is dedicated to wildlife conservation. These initiatives serve as
examples of corporate social responsibility practices.

5.Hindustan Unilever Limited:-The initiative has demonstrated remarkable efficacy in

water conservation projects and has significantly addressed health and sanitation
issues at the community level. The USLP has established three primary objectives for
corporate social responsibility initiatives in India:

1. Reducing the ecological footprint of its products

2. Enhancing individuals' economic prospects by facilitating business growth
3. Empowering over one billion people to take steps towards improving their health
and overall well-being.
3.Challenges with Corporate’s environmental responsibility

Environmental Corporate Social Responsibility (CSR) programs encounter various

obstacles, including:

1. Accusations of greenwashing: Claims of overstating or misrepresenting eco-

friendly efforts.
2. Absence of uniform standards: Lack of universal CSR benchmarks, hindering
comparative analysis.
3. Limited resources: Constraints in financial, human, and technological assets.
4. Stakeholder doubt: Questions regarding intentions and efficacy.
5. Impact evaluation: Challenges in quantifying environmental advantages.
6. Regulatory adherence: Adapting to diverse environmental laws.
7. Reconciling profit and sustainability: Aligning financial goals with ecological
concerns.
8. Global supply chain management: Addressing environmental effects across
international networks.
9. Workforce involvement: Fostering employee participation in CSR initiatives.
10. Ongoing enhancement: Keeping pace with emerging environmental issues and
remedies.

Recognizing and tackling these challenges enables organizations to enhance their

environmental CSR programs and make substantial contributions to sustainability.

4.MOVING FORWARD

As environmental consciousness becomes increasingly crucial, organizations must

address these obstacles and enhance their corporate social responsibility (CSR)
practices. This entails:

1. Establishing precise and quantifiable environmental objectives

2. Maintaining openness in reporting and dissemination of information
3. Involving employees and stakeholders in CSR programs
4. Continuously adjusting to emerging environmental issues and remedies
5. Incorporating environmental stewardship into fundamental business approaches

By adopting these tenets, companies can make substantial contributions to

environmental preservation while reaping benefits such as enhanced reputation, greater
employee contentment, and enduring viability. As society grows more environmentally
aware, enterprises that emphasize environmental responsibility are likely to achieve a
competitive advantage in the marketplace.

The future of CSR and environmental stewardship depends on the collaborative efforts
of businesses, governments, and civil society. As society becomes increasingly
environmentally aware, enterprises that prioritize environmental responsibility are likely
to achieve a competitive advantage in the marketplace. By working together, we can
create a more sustainable and equitable world for present and future generations,
ensuring that business success goes hand in hand with environmental protection and
social progress