Corporate Social Responsibility

Caselet:

Biobeauty Ltd‘s idea of responsible business is to use only natural ingredients sourced from all over the country, it believes that this will help protect the planet and the people depending on it. It is especially recognised for not testing its products on animals, other brand values are support community, defend human rights and activate self esteem. Last year it donated Rs. 50 lac to support various human rights and women empowerment organization across India.

According to its annual report of 2015-16 it now needs to comply with section 135 of the Companies Act 2013 and spend 2 % of its net profit on CSR. Hence this year Biobeauty will have to spend Rs 10 crore on CSR as per the mandate.

Biobeauty is deeply entrenched in working with the community through its supply chain as it sources majority of its raw material through self help groups (SHG) run and managed by women from rural and tribal areas. It has partnered with multiple NGO’s to help organize these rural/tribal women set up SHG’s and co-operative societies for growing and trading in herbs / flowers/ fruits / berries etc for which it is the captive buyer.

Q1. As CSR Manager you have been asked to come up with three new initiatives/projects from those listed under schedule VII of the Companies Act 2013 that the company can spend its CSR budget on. Design and develop a business plan around these 3 areas that you have selected covering the objectives (impacts expected), goals (target set), target stakeholder, geographical area where it will be implemented, time frame. Please be very specific and relevant to the company and section 135 requirements.

Q2. The CEO at Biobeauty Ltd wants your opinion on whether to partner with an NGO or should Biobeauty work directly with the target stakeholders for the 3 new CSR initiatives /projects selected by you. Prepare a document of approx 1000 words for your CEO giving the advantages and disadvantages for Biobeauty in both the scenarios.

Q3A. Companies Act 2013 requires Biobeauty Ltd to disclose its CSR Policy on its website as well as Annual Report of the company. Based on what you know so far about Biobeauty, frame a relevant and suitable CSR Policy, what is the key purpose of the policy and what are the CSR focus areas of Biobeauty Ltd.

Q3B. As part of CSR Team you have been asked to write a report of approx 500 words, which will be published on the company’s website under “CSR at Biobeauty”, detailing the 3 new CSR initiatives/projects that Biobeauty has implemented in 2016-17. You must use the ones you shortlisted in Ans1.

Corporate Social Responsibility

Caselet:

Biobeauty Ltd‘s idea of responsible business is to use only natural ingredients sourced from all over the country, it believes that this will help protect the planet and the people depending on it. It is especially recognised for not testing its products on animals, other brand values are support community, defend human rights and activate self esteem. Last year it donated Rs. 50 lac to support various human rights and women empowerment organization across India.

According to its annual report of 2015-16 it now needs to comply with section 135 of the Companies Act 2013 and spend 2 % of its net profit on CSR. Hence this year Biobeauty will have to spend Rs 10 crore on CSR as per the mandate.

Biobeauty is deeply entrenched in working with the community through its supply chain as it sources majority of its raw material through self help groups (SHG) run and managed by women from rural and tribal areas. It has partnered with multiple NGO’s to help organize these rural/tribal women set up SHG’s and co-operative societies for growing and trading in herbs / flowers/ fruits / berries etc for which it is the captive buyer.

Q1. As CSR Manager you have been asked to come up with three new initiatives/projects from those listed under schedule VII of the Companies Act 2013 that the company can spend its CSR budget on. Design and develop a business plan around these 3 areas that you have selected covering the objectives (impacts expected), goals (target set), target stakeholder, geographical area where it will be implemented, time frame. Please be very specific and relevant to the company and section 135 requirements.

Q2. The CEO at Biobeauty Ltd wants your opinion on whether to partner with an NGO or should Biobeauty work directly with the target stakeholders for the 3 new CSR initiatives /projects selected by you. Prepare a document of approx 1000 words for your CEO giving the advantages and disadvantages for Biobeauty in both the scenarios.

Q3A. Companies Act 2013 requires Biobeauty Ltd to disclose its CSR Policy on its website as well as Annual Report of the company. Based on what you know so far about Biobeauty, frame a relevant and suitable CSR Policy, what is the key purpose of the policy and what are the CSR focus areas of Biobeauty Ltd.

Q3B. As part of CSR Team you have been asked to write a report of approx 500 words, which will be published on the company’s website under “CSR at Biobeauty”, detailing the 3 new CSR initiatives/projects that Biobeauty has implemented in 2016-17. You must use the ones you shortlisted in Ans1.

Corporate Social Responsibility

Caselet:

Roughly 20 pieces of clothing per person are manufactured each year. Growth of the multi-trillion-dollar apparel industry has been fed by “fast fashion,” which makes clothing cheaply and quickly with a low price-tag. Fast-changing trends and low prices have allowed people to consume more. The average consumer is now purchasing 60 percent more items of clothing compared to 2000 Cotton is the most common natural fibre used to make clothing, accounting for about 33 percent of all fibres found in textiles. Cotton is also a very thirsty crop, requiring 2,700 liters of water—what one person drinks in two-and-a-half years—to make one cotton shirt. In areas already facing water stress, cotton production can be particularly damaging. In Central Asia, for instance, the Aral Sea has nearly disappeared because cotton farmers draw excessively from the Amu Darya and Syr Darya rivers. Cotton farming is also responsible for 24 percent of insecticides and 11 percent of pesticides despite using about 3 percent of the world’s arable land.

The carbon footprint of a garment largely depends on the material. While synthetic fibres like polyester have less impact on water and land than grown materials like cotton, they emit more greenhouse gasses per kilogram.* (Source, National Geographic & WRI)

M/s Fine Fabrics Ltd, a listed company, manufactures cotton fabric and its multiple blended variants as per customer/client demands. Customers/clients include fashion houses, designers and large clothing manufacturers across Asia & Europe. You are the Head of CSR with the company.

Q1. As Head of CSR you have been asked to come up with a detailed plan to sensitize your employees on water as a critical resource and also initiate setting up of an innovation driven cell/campaign for saving water. Design and develop a strategic plan/roadmap involving sensitization of 100+ employees as well as setting up of the Water innovation cell/campaign with SMART goals/outcomes for M/s Fine Fabrics Ltd. Please be very specific and relevant to the company.

Q2. Your company is committed to protect, respect and remedy Framework of UN Principles on Business and Human Rights. The Head of manufacturing at M/s Fine fabrics Ltd wants to partner with the supply chain in generating similar Human Rights commitments across their businesses, which are mostly midsized. He wants your guidance on how to convince these vendors to buy in into this voluntarily. Develop a business case and a broad plan that your Head Manufacturing can use to convince the vendor businesses to come on board and adopt UN Principles for Businesses & Human Rights.

Q3A. Carbon Offset is one mechanism used to reduce the carbon footprints of a business. Suggest to your CEO at Fine Fabrics Ltd two concrete ways in which Fine Fabrics can reduce its carbon footprints, develop a convincing business benefit argument around each of the suggestion.

Q3B. An NGO has approached the CEO of M/s Fine Fabrics Ltd requesting funding for a project on cotton fabric based Traditional Crafts making workshop for girls & women from weaker socio economic background. Your company falls under the criteria of 2% spend on CSR as per Companies Act 2013. Your CEO thinks this project can be funded but wants you to do the due diligence of the NGO. Prepare a questionnaire with at least 5/five questions that you think your company should ask and receive answers to before agreeing to fund the project/ partner in the project.

Corporate Social Responsibility

Caselet:

Roughly 20 pieces of clothing per person are manufactured each year. Growth of the multi-trillion-dollar apparel industry has been fed by “fast fashion,” which makes clothing cheaply and quickly with a low price-tag. Fast-changing trends and low prices have allowed people to consume more. The average consumer is now purchasing 60 percent more items of clothing compared to 2000 Cotton is the most common natural fibre used to make clothing, accounting for about 33 percent of all fibres found in textiles. Cotton is also a very thirsty crop, requiring 2,700 liters of water—what one person drinks in two-and-a-half years—to make one cotton shirt. In areas already facing water stress, cotton production can be particularly damaging. In Central Asia, for instance, the Aral Sea has nearly disappeared because cotton farmers draw excessively from the Amu Darya and Syr Darya rivers. Cotton farming is also responsible for 24 percent of insecticides and 11 percent of pesticides despite using about 3 percent of the world’s arable land.

The carbon footprint of a garment largely depends on the material. While synthetic fibres like polyester have less impact on water and land than grown materials like cotton, they emit more greenhouse gasses per kilogram.* (Source, National Geographic & WRI)

M/s Fine Fabrics Ltd, a listed company, manufactures cotton fabric and its multiple blended variants as per customer/client demands. Customers/clients include fashion houses, designers and large clothing manufacturers across Asia & Europe. You are the Head of CSR with the company.

Q1. As Head of CSR you have been asked to come up with a detailed plan to sensitize your employees on water as a critical resource and also initiate setting up of an innovation driven cell/campaign for saving water. Design and develop a strategic plan/roadmap involving sensitization of 100+ employees as well as setting up of the Water innovation cell/campaign with SMART goals/outcomes for M/s Fine Fabrics Ltd. Please be very specific and relevant to the company.

Q2. Your company is committed to protect, respect and remedy Framework of UN Principles on Business and Human Rights. The Head of manufacturing at M/s Fine fabrics Ltd wants to partner with the supply chain in generating similar Human Rights commitments across their businesses, which are mostly midsized. He wants your guidance on how to convince these vendors to buy in into this voluntarily. Develop a business case and a broad plan that your Head Manufacturing can use to convince the vendor businesses to come on board and adopt UN Principles for Businesses & Human Rights.

Q3A. Carbon Offset is one mechanism used to reduce the carbon footprints of a business. Suggest to your CEO at Fine Fabrics Ltd two concrete ways in which Fine Fabrics can reduce its carbon footprints, develop a convincing business benefit argument around each of the suggestion.

Q3B. An NGO has approached the CEO of M/s Fine Fabrics Ltd requesting funding for a project on cotton fabric based Traditional Crafts making workshop for girls & women from weaker socio economic background. Your company falls under the criteria of 2% spend on CSR as per Companies Act 2013. Your CEO thinks this project can be funded but wants you to do the due diligence of the NGO. Prepare a questionnaire with at least 5/five questions that you think your company should ask and receive answers to before agreeing to fund the project/ partner in the project.

Corporate Social Responsibility

Caselet:

Roughly 20 pieces of clothing per person are manufactured each year. Growth of the multi-trillion-dollar apparel industry has been fed by “fast fashion,” which makes clothing cheaply and quickly with a low price-tag. Fast-changing trends and low prices have allowed people to consume more. The average consumer is now purchasing 60 percent more items of clothing compared to 2000 Cotton is the most common natural fibre used to make clothing, accounting for about 33 percent of all fibres found in textiles. Cotton is also a very thirsty crop, requiring 2,700 liters of water—what one person drinks in two-and-a-half years—to make one cotton shirt. In areas already facing water stress, cotton production can be particularly damaging. In Central Asia, for instance, the Aral Sea has nearly disappeared because cotton farmers draw excessively from the Amu Darya and Syr Darya rivers. Cotton farming is also responsible for 24 percent of insecticides and 11 percent of pesticides despite using about 3 percent of the world’s arable land.

The carbon footprint of a garment largely depends on the material. While synthetic fibres like polyester have less impact on water and land than grown materials like cotton, they emit more greenhouse gasses per kilogram.* (Source, National Geographic & WRI)

M/s Fine Fabrics Ltd, a listed company, manufactures cotton fabric and its multiple blended variants as per customer/client demands. Customers/clients include fashion houses, designers and large clothing manufacturers across Asia & Europe. You are the Head of CSR with the company.

Q1. As Head of CSR you have been asked to come up with a detailed plan to sensitize your employees on water as a critical resource and also initiate setting up of an innovation driven cell/campaign for saving water. Design and develop a strategic plan/roadmap involving sensitization of 100+ employees as well as setting up of the Water innovation cell/campaign with SMART goals/outcomes for M/s Fine Fabrics Ltd. Please be very specific and relevant to the company.

Q2. Your company is committed to protect, respect and remedy Framework of UN Principles on Business and Human Rights. The Head of manufacturing at M/s Fine fabrics Ltd wants to partner with the supply chain in generating similar Human Rights commitments across their businesses, which are mostly midsized. He wants your guidance on how to convince these vendors to buy in into this voluntarily. Develop a business case and a broad plan that your Head Manufacturing can use to convince the vendor businesses to come on board and adopt UN Principles for Businesses & Human Rights.

Q3A. Carbon Offset is one mechanism used to reduce the carbon footprints of a business. Suggest to your CEO at Fine Fabrics Ltd two concrete ways in which Fine Fabrics can reduce its carbon footprints, develop a convincing business benefit argument around each of the suggestion.

Q3B. An NGO has approached the CEO of M/s Fine Fabrics Ltd requesting funding for a project on cotton fabric based Traditional Crafts making workshop for girls & women from weaker socio economic background. Your company falls under the criteria of 2% spend on CSR as per Companies Act 2013. Your CEO thinks this project can be funded but wants you to do the due diligence of the NGO. Prepare a questionnaire with at least 5/five questions that you think your company should ask and receive answers to before agreeing to fund the project/ partner in the project.

Corporate Social Responsibility

Caselet:

Roughly 20 pieces of clothing per person are manufactured each year. Growth of the multi-trillion-dollar apparel industry has been fed by “fast fashion,” which makes clothing cheaply and quickly with a low price-tag. Fast-changing trends and low prices have allowed people to consume more. The average consumer is now purchasing 60 percent more items of clothing compared to 2000 Cotton is the most common natural fibre used to make clothing, accounting for about 33 percent of all fibres found in textiles. Cotton is also a very thirsty crop, requiring 2,700 liters of water—what one person drinks in two-and-a-half years—to make one cotton shirt. In areas already facing water stress, cotton production can be particularly damaging. In Central Asia, for instance, the Aral Sea has nearly disappeared because cotton farmers draw excessively from the Amu Darya and Syr Darya rivers. Cotton farming is also responsible for 24 percent of insecticides and 11 percent of pesticides despite using about 3 percent of the world’s arable land.

The carbon footprint of a garment largely depends on the material. While synthetic fibres like polyester have less impact on water and land than grown materials like cotton, they emit more greenhouse gasses per kilogram.* (Source, National Geographic & WRI)

M/s Fine Fabrics Ltd, a listed company, manufactures cotton fabric and its multiple blended variants as per customer/client demands. Customers/clients include fashion houses, designers and large clothing manufacturers across Asia & Europe. You are the Head of CSR with the company.

Q1. As Head of CSR you have been asked to come up with a detailed plan to sensitize your employees on water as a critical resource and also initiate setting up of an innovation driven cell/campaign for saving water. Design and develop a strategic plan/roadmap involving sensitization of 100+ employees as well as setting up of the Water innovation cell/campaign with SMART goals/outcomes for M/s Fine Fabrics Ltd. Please be very specific and relevant to the company.

Q2. Your company is committed to protect, respect and remedy Framework of UN Principles on Business and Human Rights. The Head of manufacturing at M/s Fine fabrics Ltd wants to partner with the supply chain in generating similar Human Rights commitments across their businesses, which are mostly midsized. He wants your guidance on how to convince these vendors to buy in into this voluntarily. Develop a business case and a broad plan that your Head Manufacturing can use to convince the vendor businesses to come on board and adopt UN Principles for Businesses & Human Rights.

Q3A. Carbon Offset is one mechanism used to reduce the carbon footprints of a business. Suggest to your CEO at Fine Fabrics Ltd two concrete ways in which Fine Fabrics can reduce its carbon footprints, develop a convincing business benefit argument around each of the suggestion.

Q3B. An NGO has approached the CEO of M/s Fine Fabrics Ltd requesting funding for a project on cotton fabric based Traditional Crafts making workshop for girls & women from weaker socio economic background. Your company falls under the criteria of 2% spend on CSR as per Companies Act 2013. Your CEO thinks this project can be funded but wants you to do the due diligence of the NGO. Prepare a questionnaire with at least 5/five questions that you think your company should ask and receive answers to before agreeing to fund the project/ partner in the project.

Corporate Social Responsibility

Caselet:

Roughly 20 pieces of clothing per person are manufactured each year. Growth of the multi-trillion-dollar apparel industry has been fed by “fast fashion,” which makes clothing cheaply and quickly with a low price-tag. Fast-changing trends and low prices have allowed people to consume more. The average consumer is now purchasing 60 percent more items of clothing compared to 2000 Cotton is the most common natural fibre used to make clothing, accounting for about 33 percent of all fibres found in textiles. Cotton is also a very thirsty crop, requiring 2,700 liters of water—what one person drinks in two-and-a-half years—to make one cotton shirt. In areas already facing water stress, cotton production can be particularly damaging. In Central Asia, for instance, the Aral Sea has nearly disappeared because cotton farmers draw excessively from the Amu Darya and Syr Darya rivers. Cotton farming is also responsible for 24 percent of insecticides and 11 percent of pesticides despite using about 3 percent of the world’s arable land.

The carbon footprint of a garment largely depends on the material. While synthetic fibres like polyester have less impact on water and land than grown materials like cotton, they emit more greenhouse gasses per kilogram.* (Source, National Geographic & WRI)

M/s Fine Fabrics Ltd, a listed company, manufactures cotton fabric and its multiple blended variants as per customer/client demands. Customers/clients include fashion houses, designers and large clothing manufacturers across Asia & Europe. You are the Head of CSR with the company.

Q1. As Head of CSR you have been asked to come up with a detailed plan to sensitize your employees on water as a critical resource and also initiate setting up of an innovation driven cell/campaign for saving water. Design and develop a strategic plan/roadmap involving sensitization of 100+ employees as well as setting up of the Water innovation cell/campaign with SMART goals/outcomes for M/s Fine Fabrics Ltd. Please be very specific and relevant to the company.

Q2. Your company is committed to protect, respect and remedy Framework of UN Principles on Business and Human Rights. The Head of manufacturing at M/s Fine fabrics Ltd wants to partner with the supply chain in generating similar Human Rights commitments across their businesses, which are mostly midsized. He wants your guidance on how to convince these vendors to buy in into this voluntarily. Develop a business case and a broad plan that your Head Manufacturing can use to convince the vendor businesses to come on board and adopt UN Principles for Businesses & Human Rights.

Q3A. Carbon Offset is one mechanism used to reduce the carbon footprints of a business. Suggest to your CEO at Fine Fabrics Ltd two concrete ways in which Fine Fabrics can reduce its carbon footprints, develop a convincing business benefit argument around each of the suggestion.

Q3B. An NGO has approached the CEO of M/s Fine Fabrics Ltd requesting funding for a project on cotton fabric based Traditional Crafts making workshop for girls & women from weaker socio economic background. Your company falls under the criteria of 2% spend on CSR as per Companies Act 2013. Your CEO thinks this project can be funded but wants you to do the due diligence of the NGO. Prepare a questionnaire with at least 5/five questions that you think your company should ask and receive answers to before agreeing to fund the project/ partner in the project.

Case Study:

M/s Sun Shine is in the manufacturing of best quality ISO certified Solar Panels. The company is known for the durable solar panels having best features. The government provides subsidy to the customers buying solar panels under the Jawaharlal Nehru National Solar Mission in the country. The company has been doing well consistently over the period of years. The awareness for usage of Solar as a source of energy is increasing day by day. The company sells solar panels at the lowest possible price. The company’s vision is to light every house in the rural India.

Q1. The company wants to sell Solar Panels in Sri Lanka and Bangladesh as a part of “Go Global” Initiative. Explain the benefits and demerits of Globalization for M/s Sun Shine.

Q2. The company plans to do CSR activity in rural India and hires you as a consultant to advice the organization for at least five CSR activities. Which one activity among the suggested five activities you would select for M/s Sun Shine. Explain the same with reason.

Q3. From the case above:

a) Assume you plan to implement one of the CSR activity, explain the process that you would follow for its implementation in the organization.

b) Explain any three voluntary codes in CSR that you would apply for the organization.

Explain the benefits of the same for M/s Sun Shine.