CSR FORUM REPORT

2012 to 2014, NEW DELHI

CSR FORUM REPORT

KOREA INDIA

2012 to 2014, NEW DELHI

CSR FORUM REPORT

KOREA INDIA

Printed by

FICCI – Aditya Birla CSR Centre for Excellence Federation House, Tansen Marg

New Delhi – 110001, India

Research and Compiling team

Dr.K.K.Upadhyay , Nomenita Chetia , Somyah Gupta , Usha Bhagchandani

New Delhi, 2014 Issued in Public Interest

Disclaimer:

The content of this publication may not be reproduced in whole or in part without the consent of the publisher.FICCI or the Embassy of the Republic of Korea takes no guarantee of the advice or opinion contained within the publication. Though utmost care has been taken to present accurate information, FICCI or the Embassy of the Republic of Korea makes no representation towards the information contained herein to be the exact interpretation of the advice and opinion expressed by the esteemed speakers.

2012 to 2014, NEW DELHI

CSR FORUM REPORT

KOREA INDIA

Printed by

FICCI – Aditya Birla CSR Centre for Excellence Federation House, Tansen Marg

New Delhi – 110001, India

Research and Compiling team

Dr.K.K.Upadhyay , Nomenita Chetia , Somyah Gupta , Usha Bhagchandani

New Delhi, 2014 Issued in Public Interest

Disclaimer:

The content of this publication may not be reproduced in whole or in part without the consent of the publisher.FICCI or the Embassy of the Republic of Korea takes no guarantee of the advice or opinion contained within the publication. Though utmost care has been taken to present accurate information, FICCI or the Embassy of the Republic of Korea makes no representation towards the information contained herein to be the exact interpretation of the advice and opinion expressed by the esteemed speakers.

Contents

The FICCI Aditya Birla CSR Centre for Excellence and the Embassy of the Republic of Korea in India would like to express its sincere gratitude to all the organizations and individuals who have extended their support and contributed towards making Korea- India CSR forum successful in India.

We would like to warmly acknowledge Mr. Park Kyung Jin, First Secretary and Gabin Song, CSR Researcher from the embassy of the Republic of Korean in India.

We would also like to acknowledge particularly Jyoti Vij, DSG, FICCI for helping us bring the report to its intended audience.

We deeply appreciate the support of the esteemed speakers and organisations featured in this report in helping us to better understand their work.

Embassy of the Republic of Korea in India FICCI Aditya Birla CSR Centre for Excellence

Acknowledgements

Message...01

Preface...03

Background of the CSR Forum ... 05

Overview of the CSR Forum 2012- 14...13

Discussion details of the 2012 Forum...15

Discussion details of the 2013 Forum...27

Discussion details of the 2014 Forum...39

Way forward ... 63

Contents

The FICCI Aditya Birla CSR Centre for Excellence and the Embassy of the Republic of Korea in India would like to express its sincere gratitude to all the organizations and individuals who have extended their support and contributed towards making Korea- India CSR forum successful in India.

We would like to warmly acknowledge Mr. Park Kyung Jin, First Secretary and Gabin Song, CSR Researcher from the embassy of the Republic of Korean in India.

We would also like to acknowledge particularly Jyoti Vij, DSG, FICCI for helping us bring the report to its intended audience.

We deeply appreciate the support of the esteemed speakers and organisations featured in this report in helping us to better understand their work.

Embassy of the Republic of Korea in India FICCI Aditya Birla CSR Centre for Excellence

Acknowledgements

Message...01

Preface...03

Background of the CSR Forum ... 05

Overview of the CSR Forum 2012- 14...13

Discussion details of the 2012 Forum...15

Discussion details of the 2013 Forum...27

Discussion details of the 2014 Forum...39

Way forward ... 63

I am happy to learn that the Korea-India CSR Forum Report (2012-2014) is being brought out by FICCI to signify the joint commitment and responsibility of both Korea and India towards sensitizing the business and industry on Corporate Social Responsibility (CSR). I congratulate FICCI for this laudable initiative.

CSR as a corporate strategy has been dynamically evolving both in Korea and India keeping in pace with rapid industrialization in the present era of globalization. With an aim to deepen mutual understanding of each other's CSR programs and to learn from each other's experience to promote best CSR practices, the Embassy in cooperation with FICCI took the novel joint initiative to hold an annual CSR Forum.

And, I am glad to note that over the last four years, the forum has done good work in expanding knowledge and information, programs and policies concerning CSR in both countries for mutual benefits of our corporates in building trusting relationship with the stakeholders.

This Report containing discussion details of the CSR Forum during 2012-14, I am sure, will be a ready reckoner for those who are interested in understanding in the CSR landscape in India and Korea.

I wish the publication all the success.

H.E. Mr. Joon-gyu Lee Ambassador of the Republic of Korea

December 1, 2014

Message

CSR FORUM REPORTKOREA INDIA 01

I am happy to learn that the Korea-India CSR Forum Report (2012-2014) is being brought out by FICCI to signify the joint commitment and responsibility of both Korea and India towards sensitizing the business and industry on Corporate Social Responsibility (CSR). I congratulate FICCI for this laudable initiative.

CSR as a corporate strategy has been dynamically evolving both in Korea and India keeping in pace with rapid industrialization in the present era of globalization. With an aim to deepen mutual understanding of each other's CSR programs and to learn from each other's experience to promote best CSR practices, the Embassy in cooperation with FICCI took the novel joint initiative to hold an annual CSR Forum.

And, I am glad to note that over the last four years, the forum has done good work in expanding knowledge and information, programs and policies concerning CSR in both countries for mutual benefits of our corporates in building trusting relationship with the stakeholders.

This Report containing discussion details of the CSR Forum during 2012-14, I am sure, will be a ready reckoner for those who are interested in understanding in the CSR landscape in India and Korea.

I wish the publication all the success.

H.E. Mr. Joon-gyu Lee Ambassador of the Republic of Korea

December 1, 2014

Message

CSR FORUM REPORTKOREA INDIA 01

CSR FORUM REPORTKOREA INDIA 03

I

ndia and Korea enjoys pre-historic relationships that has been rooted in the history and culture of both the countries. This old relationship between the two vibrant democracies was elevated to 'strategic partnership' level in 2010 during the visit of the then South Korean president to India.

Today, a majority of Indian customers relate to LG and Samsung as Indian brands rather than multi-national brands. Korean companies like Hyundai, LG and Samsung have become household names in India. This is indeed the recognition of the evolving strategic scenario in the region and the deepening of India- Korea comprehensive engagement. Apart from economic cooperation, India and Korea have also been getting closer in the political, security fields, and strengthening the cultural dimensions of the partnership.

While Korean companies are playing a major role in automobile and electronics sectors, this growing engagement is also creating huge opportunities for businesses but also great challenges. Most of us would agree that there is a significant role for the private sector to tackle the region's remaining challenges if we want this growing engagement to flourish.

CSR is one such powerful catalyst that contributes to the attainment of sustainable businesses along with inclusive social development. There are three key elements for CSR in the region needs of future generations, the limitations of the planet/environment and the importance of development and the over-riding needs of the poor.

Preface

CSR FORUM REPORTKOREA INDIA 03

I

ndia and Korea enjoys pre-historic relationships that has been rooted in the history and culture of both the countries. This old relationship between the two vibrant democracies was elevated to 'strategic partnership' level in 2010 during the visit of the then South Korean president to India.

Today, a majority of Indian customers relate to LG and Samsung as Indian brands rather than multi-national brands. Korean companies like Hyundai, LG and Samsung have become household names in India. This is indeed the recognition of the evolving strategic scenario in the region and the deepening of India- Korea comprehensive engagement. Apart from economic cooperation, India and Korea have also been getting closer in the political, security fields, and strengthening the cultural dimensions of the partnership.

While Korean companies are playing a major role in automobile and electronics sectors, this growing engagement is also creating huge opportunities for businesses but also great challenges. Most of us would agree that there is a significant role for the private sector to tackle the region's remaining challenges if we want this growing engagement to flourish.

CSR is one such powerful catalyst that contributes to the attainment of sustainable businesses along with inclusive social development. There are three key elements for CSR in the region needs of future generations, the limitations of the planet/environment and the importance of development and the over-riding needs of the poor.

Preface

CSR FORUM REPORT KOREA INDIA 04

We understand that dialogue with relevant stakeholders adds value to the development of companies' CSR practices and tools. As stakeholders are an integral part of a company, it is important to pay particular attention to their role their representatives and dialogue with them. The essence of CSR is such that, it gives the opportunity to engage and develop relationships with the internal and external constituents and grasp the need, fluctuating nature of values, attitudes, and behaviour of stakeholders.

Hence, we must understand the knowledge and skills of CSR deeper to analyze modern societies in a more systematic way and work towards institutionalizing CSR in the core strategic practices of our companies. We must continuously work towards strengthening the entire concept of CSR especially in the Indian context and emerge as good examples globally and promote partnerships and sustained growths.

With the growing amount of globalization and liberalization, not only Korean companies are making their presence felt in India, Indian firms too are establishing themselves in Korea.

This report has been documented for the companies and the people who are interested in the Corporate Social Responsibility landscape in India and Korea, two of the fast developing countries. It is aimed at creating awareness through a dialogue and presentation about the CSR interventions undertaken by the Indian and Korean companies in CSR.

CSR FORUM REPORTKOREA INDIA 05

S

outh Korea has been seen as an enigma in its growth. A country remains as a global case study for economic development. Known as the "Miracle on the Han," South Korea record-breaking industrialization turned it from one of the world's poorest states to a global economic power with per capita GDP of $30,000 (in purchasing power parity terms).

Background of the Forum

"In the golden age of Asia, Korea was one of its lampbearers." Nobel Laureate

- Rabindranath Tagore Trade relations between India and South Korea have

strengthened over the years. Both countries are now setting their sights on doubling their annual trade to US$40 billion by 2015. As one of the most dynamic economies of the world, South Korea is among the ten major investors in India with still huge room for further growth.

A remarkable feature of South Korea is its transformation from a developing country in 1950s to a high-income country of the world with a substantial per capita income. The economic reforms of 1990s in India

have been influenced by the East-Asian success and South Korea was among the chief countries to have an impact on Indian policy makers' thinking process. Though consular relations between India and South Korea were set up in 1962, it was in 1973 with the establishment of formal diplomatic ties that a new chapter was opened in the history of Korea-India cooperation.

With respect to CSR, the aim is to build partnerships of sustainable growth with emerging countries by strengthening our global CSR and sharing our experiences of economic development.

CSR is still evolving and is one of the most continual and indispensable terminology of this globalised world. Globalisation has been the catalyst for CSR to cross national boundaries and influencing the ways of business transactions. Globalisation is also fostering and makes manifest a range of challenges. Business are now expected to solve transboundary, environmental and climatic problems and of combating escalating international crime and terrorism. CSR has been the harbinger for addressing these development needs of nations and in promoting social inclusion, particularly in developing economies.

CSR in India is not a new concept and Indian businesses have been engaged in industrial and social welfare since late 1800s. But the growing importance of CSR in this globalised economy, which has rewritten the relationship of business with not just the shareholders, but its various stakeholders that include employees, supply chain partners, government, creditors, customers and communities. Indian companies are responding to the market expectations through responsible business practices, but CSR in India to some extent is philanthropic. It is still considered external to business as

CSR FORUM REPORT KOREA INDIA 04

We understand that dialogue with relevant stakeholders adds value to the development of companies' CSR practices and tools. As stakeholders are an integral part of a company, it is important to pay particular attention to their role their representatives and dialogue with them. The essence of CSR is such that, it gives the opportunity to engage and develop relationships with the internal and external constituents and grasp the need, fluctuating nature of values, attitudes, and behaviour of stakeholders.

Hence, we must understand the knowledge and skills of CSR deeper to analyze modern societies in a more systematic way and work towards institutionalizing CSR in the core strategic practices of our companies. We must continuously work towards strengthening the entire concept of CSR especially in the Indian context and emerge as good examples globally and promote partnerships and sustained growths.

With the growing amount of globalization and liberalization, not only Korean companies are making their presence felt in India, Indian firms too are establishing themselves in Korea.

This report has been documented for the companies and the people who are interested in the Corporate Social Responsibility landscape in India and Korea, two of the fast developing countries. It is aimed at creating awareness through a dialogue and presentation about the CSR interventions undertaken by the Indian and Korean companies in CSR.

CSR FORUM REPORTKOREA INDIA 05

S

outh Korea has been seen as an enigma in its growth. A country remains as a global case study for economic development. Known as the "Miracle on the Han," South Korea record-breaking industrialization turned it from one of the world's poorest states to a global economic power with per capita GDP of $30,000 (in purchasing power parity terms).

Background of the Forum

"In the golden age of Asia, Korea was one of its lampbearers." Nobel Laureate

- Rabindranath Tagore Trade relations between India and South Korea have

strengthened over the years. Both countries are now setting their sights on doubling their annual trade to US$40 billion by 2015. As one of the most dynamic economies of the world, South Korea is among the ten major investors in India with still huge room for further growth.

A remarkable feature of South Korea is its transformation from a developing country in 1950s to a high-income country of the world with a substantial per capita income. The economic reforms of 1990s in India

have been influenced by the East-Asian success and South Korea was among the chief countries to have an impact on Indian policy makers' thinking process. Though consular relations between India and South Korea were set up in 1962, it was in 1973 with the establishment of formal diplomatic ties that a new chapter was opened in the history of Korea-India cooperation.

With respect to CSR, the aim is to build partnerships of sustainable growth with emerging countries by strengthening our global CSR and sharing our experiences of economic development.

CSR is still evolving and is one of the most continual and indispensable terminology of this globalised world. Globalisation has been the catalyst for CSR to cross national boundaries and influencing the ways of business transactions. Globalisation is also fostering and makes manifest a range of challenges. Business are now expected to solve transboundary, environmental and climatic problems and of combating escalating international crime and terrorism. CSR has been the harbinger for addressing these development needs of nations and in promoting social inclusion, particularly in developing economies.

CSR in India is not a new concept and Indian businesses have been engaged in industrial and social welfare since late 1800s. But the growing importance of CSR in this globalised economy, which has rewritten the relationship of business with not just the shareholders, but its various stakeholders that include employees, supply chain partners, government, creditors, customers and communities. Indian companies are responding to the market expectations through responsible business practices, but CSR in India to some extent is philanthropic. It is still considered external to business as

CSR FORUM REPORT KOREA INDIA 06

opposed to an internal process. But with the release of the National Voluntary Guidelines on the Social, Environmental and Economic Responsibilities of Business in 2011 and the enactment of the Companies act 2013, India is an interesting threshold making CSR mandatory for businesses to engage.

The industry of the Republic of Korea is one of the ten largest investors in India. They are making more efforts towards achieving ethical and transparent management with respect to social concerns since the Asian crisis of 1997. According to the survey by the industrial association, Federation of Korean Industries (FKI) in 2006, 75% of the 120 largest companies in Korea are engaged in CSR projects and 87% name such involvement as a necessary company activity. According to the same survey, large Korean companies spend approximately 2% of their profits on CSR activities.

The Korea-India CSR Forum is a bilateral forum between Federation of Indian Chambers of Commerce and Industry and the Embassy of the Republic of Korea in India, funded by the Embassy of the Republic of Korea in India. The forum is organized every year. The main objectives of the forum are to: introduce CSR theories and policies of both the countries; discuss how CSR initiatives of the Indian and Korean company in India fits into the Indian context; share the best practices of CSR initiative, management in the supply chain domestically and internationally; communicate research results concerning CSR; and provide a platform to exchange and share ideas between policy- makers, academics, and businesses.

To further engage, discuss, share and understand the essence of CSR policies, its challenges, best practices and prospects, partnerships it holds for business sustainability and above all leading to future international business engagement and cooperation, the FICCI Aditya Birla CSR Centre for Excellence and the Embassy of The Republic of Korea in India formed the Korea - India CSR Forum.

This year is the fourth year of the partnership and this documentation post the forum compiles all the important inputs gathered out of the speeches delivered, the presentations made and the numerous concerns addressed at the forum.

CSR FORUM REPORTKOREA INDIA 07

K

orean firms have paid attention to CSR activities. They established CSR or ethical departments and got involved in a variety of CSR activities including donations, community involvement and the adoption of codes of conduct (FKI, 2003). Korean CSR activities especially focus on donations. For example, 79 % of the total CSR budgets were executed in the forms of cash or product donations as charity and the amount of donations increased over time (FKI, 2003).

CSR represents a departure from the traditional basis of corporate governance in law based on the fundamental duty of the corporate entity to shareholder/ enterprise Korean society recognized the importance of CSR through its financial crisis. This historic economic disaster provided a context which generated societal demands and pressures on CSR by stimulating local actors.

Korea experienced a financial crisis between October 1997 and March 1998. The first symptoms of the crisis were recognized in 1996. Korea's account deficit broadened from 2% of GNP in 1995 to 5% in 1996. The growth of exports slowed down and foreign debt increased dramatically to 100 billion dollars in 1996.

The financial crisis introduced the concepts of CSR to Korean society. For example, there was a substantial increase in references to CSR in the Korean Economic Daily.

Even though Korean firms superficially knew about CSR before the financial crisis, most CSR activities were generally limited to corporate contribution and philanthropy activities. This crisis had a great impact on local actors, such as state, corporate, unions, and consumers, who were important stakeholders in CSR.

For example, the financial crisis brought the first transition of political power from the ruling to the reformative opposition party. Moreover, the severe restructuring of companies broke lifetime employment systems, and the uncovering of firms' corruptions prompted NGOs' monitoring. Abolishing protectionist trade policies made customers seek their rights and voice their complaints against Korean companies, which had enjoyed a monopoly for decades.

Furthermore, these local actors saw the fatal consequences when companies only pursued their economic profits through the financial crisis. As a result, these bitter lessons make local actors rethink the role and responsibilities of corporations in society and stimulated them to generate considerable societal demands for improved CSR behavior in Korea.

The Republic of Korea

CSR FORUM REPORT KOREA INDIA 06

opposed to an internal process. But with the release of the National Voluntary Guidelines on the Social, Environmental and Economic Responsibilities of Business in 2011 and the enactment of the Companies act 2013, India is an interesting threshold making CSR mandatory for businesses to engage.

The industry of the Republic of Korea is one of the ten largest investors in India. They are making more efforts towards achieving ethical and transparent management with respect to social concerns since the Asian crisis of 1997. According to the survey by the industrial association, Federation of Korean Industries (FKI) in 2006, 75% of the 120 largest companies in Korea are engaged in CSR projects and 87% name such involvement as a necessary company activity. According to the same survey, large Korean companies spend approximately 2% of their profits on CSR activities.

The Korea-India CSR Forum is a bilateral forum between Federation of Indian Chambers of Commerce and Industry and the Embassy of the Republic of Korea in India, funded by the Embassy of the Republic of Korea in India. The forum is organized every year. The main objectives of the forum are to: introduce CSR theories and policies of both the countries; discuss how CSR initiatives of the Indian and Korean company in India fits into the Indian context; share the best practices of CSR initiative, management in the supply chain domestically and internationally; communicate research results concerning CSR; and provide a platform to exchange and share ideas between policy- makers, academics, and businesses.

To further engage, discuss, share and understand the essence of CSR policies, its challenges, best practices and prospects, partnerships it holds for business sustainability and above all leading to future international business engagement and cooperation, the FICCI Aditya Birla CSR Centre for Excellence and the Embassy of The Republic of Korea in India formed the Korea - India CSR Forum.

This year is the fourth year of the partnership and this documentation post the forum compiles all the important inputs gathered out of the speeches delivered, the presentations made and the numerous concerns addressed at the forum.

CSR FORUM REPORTKOREA INDIA 07

K

orean firms have paid attention to CSR activities. They established CSR or ethical departments and got involved in a variety of CSR activities including donations, community involvement and the adoption of codes of conduct (FKI, 2003). Korean CSR activities especially focus on donations. For example, 79 % of the total CSR budgets were executed in the forms of cash or product donations as charity and the amount of donations increased over time (FKI, 2003).

CSR represents a departure from the traditional basis of corporate governance in law based on the fundamental duty of the corporate entity to shareholder/ enterprise Korean society recognized the importance of CSR through its financial crisis. This historic economic disaster provided a context which generated societal demands and pressures on CSR by stimulating local actors.

Korea experienced a financial crisis between October 1997 and March 1998. The first symptoms of the crisis were recognized in 1996. Korea's account deficit broadened from 2% of GNP in 1995 to 5% in 1996. The growth of exports slowed down and foreign debt increased dramatically to 100 billion dollars in 1996.

The financial crisis introduced the concepts of CSR to Korean society. For example, there was a substantial increase in references to CSR in the Korean Economic Daily.

Even though Korean firms superficially knew about CSR before the financial crisis, most CSR activities were generally limited to corporate contribution and philanthropy activities. This crisis had a great impact on local actors, such as state, corporate, unions, and consumers, who were important stakeholders in CSR.

For example, the financial crisis brought the first transition of political power from the ruling to the reformative opposition party. Moreover, the severe restructuring of companies broke lifetime employment systems, and the uncovering of firms' corruptions prompted NGOs' monitoring. Abolishing protectionist trade policies made customers seek their rights and voice their complaints against Korean companies, which had enjoyed a monopoly for decades.

Furthermore, these local actors saw the fatal consequences when companies only pursued their economic profits through the financial crisis. As a result, these bitter lessons make local actors rethink the role and responsibilities of corporations in society and stimulated them to generate considerable societal demands for improved CSR behavior in Korea.

The Republic of Korea

CSR FORUM REPORT KOREA INDIA 08

The Korean government is accelerating the restructuring process of chaebols {Korean style conglomerates, which are family owned business groups (Cho, 1990)}

There are already several signs that the government intends to pay attention to CSR.

For instance, MOCIE (Ministry of Commerce, Industry and Energy) has a plan to legislate CSR laws to promote CSR activities. MOCIE is also developing a CSR reporting system for companies and planning to use pension investment as Social Responsibility Investment (MOCIE, 2005).

Furthermore, the Korean government established The Presidential Commission on Sustainable Development of Republic of Korea (PCSD) in 2000. PCSD is establishing a national strategy and policy for sustainable development, maintaining balance between economy, society, and environment.

Therefore, considering the historically strong influence of the government on firms and its recent support of and attention to CSR, the government might become a cornerstone of the development of CSR in Korea. Originally CSR might have been understood as originating in corporate charity, an activity at first grudgingly and then more open handed permitted under the laws of many states.

Beyond charity, CSR is now sourced in social norms- either those derived from the customs and expectations of firms or as memorialised by an increasingly large number of governance instruments developed by private or public actors. It is also impacts based, it is measured with reference to the effects of corporate activity on stakeholders in anyone of a number of fields of corporate activities.

The Korean chamber of commerce and Industry strongly evidences both a move towards regionalism in CSR and the countervailing push to global harmonization.

Though CSR can be understood as a unifying concepts grounded in this "stakeholder- impact" framework, it is not uncommon for corporate entities, and the states in which they operate, to disaggregate impacts and to arrange them vertically in some sort of order of importance. As a consequence, cultures of CSR may vary, and perhaps sometimes considerably, based on the place where CSR is meant to be applied.

Simultaneously, civil society actors and public international organizations have been working hard to develop and implement a harmonized approach to CSR in which national or regional variations in CSR is minimized and prioritization of stakeholder impacts is avoided.

The number of Korean corporations publishing CSR reports has increased in the 2000's, only a small amount of them are familiar with the concepts of CSR as described in existing international frameworks. In addition, huge amounts of donations are usually used as an impression management tool to repair the reputation of a corporation instead of a true contribution to the society.

As the Korean government desires to shift the country towards a green society, different policies and projects are launched in order to achieve "Low Carbon, Green Korea".

CSR FORUM REPORTKOREA INDIA 09 With governmental supports, the vast majority of Korean corporations has a positive

respond and focuses their CSR effort in environmental issues. Many leading corporate includes Samsung Group, LG Group, and Hyundai-Kia Automotive Group has already invested heavily in their R&D activities and manufacture in green technology.

CSR represents a departure from the traditional basis of corporate governance in law based on the fundamental duty of the corporate entity to shareholder/ enterprise Korean society recognized the importance of CSR through its financial crisis. This historic economic disaster provided a context which generated societal demands and pressures on CSR by stimulating local actors.

Korea experienced a financial crisis between October 1997 and March 1998. The first symptoms of the crisis were recognized in 1996. Korea's account deficit broadened from 2% of GNP in 1995 to 5% in 1996. The growth of exports slowed down and foreign debt increased dramatically to 100 billion dollars in 1996.

The financial crisis introduced the concepts of CSR to Korean society. For example, there was a substantial increase in references to CSR in the Korean Economic Daily.

Even though Korean firms superficially knew about CSR before the financial crisis, most CSR activities were generally limited to corporate contribution and philanthropy activities. This crisis had a great impact on local actors, such as state, corporate, unions, and consumers, who were important stakeholders in CSR.

For example, the financial crisis brought the first transition of political power from the ruling to the reformative opposition party. Moreover, the severe restructuring of companies broke lifetime employment systems, and the uncovering of firms' corruptions prompted NGOs' monitoring. Abolishing protectionist trade policies made customers seek their rights and voice their complaints against Korean companies, which had enjoyed a monopoly for decades.

Furthermore, these local actors saw the fatal consequences when companies only pursued their economic profits through the financial crisis. As a result, these bitter lessons make local actors rethink the role and responsibilities of corporations in society and stimulated them to generate considerable societal demands for improved CSR behavior in Korea.

The Korean government is accelerating the restructuring process of chaebols {Korean style conglomerates, which are family owned business groups (Cho, 1990)}

There are already several signs that the government intends to pay attention to CSR.

For instance, MOCIE (Ministry of Commerce, Industry and Energy) has a plan to legislate CSR laws to promote CSR activities. MOCIE is also developing a CSR reporting system for companies and planning to use pension investment as Social Responsibility Investment (MOCIE, 2005).

Furthermore, the Korean government established The Presidential Commission on Sustainable Development of Republic of Korea (PCSD) in 2000. PCSD is establishing a

CSR FORUM REPORT KOREA INDIA 08

The Korean government is accelerating the restructuring process of chaebols {Korean style conglomerates, which are family owned business groups (Cho, 1990)}

There are already several signs that the government intends to pay attention to CSR.

For instance, MOCIE (Ministry of Commerce, Industry and Energy) has a plan to legislate CSR laws to promote CSR activities. MOCIE is also developing a CSR reporting system for companies and planning to use pension investment as Social Responsibility Investment (MOCIE, 2005).

Furthermore, the Korean government established The Presidential Commission on Sustainable Development of Republic of Korea (PCSD) in 2000. PCSD is establishing a national strategy and policy for sustainable development, maintaining balance between economy, society, and environment.

Therefore, considering the historically strong influence of the government on firms and its recent support of and attention to CSR, the government might become a cornerstone of the development of CSR in Korea. Originally CSR might have been understood as originating in corporate charity, an activity at first grudgingly and then more open handed permitted under the laws of many states.

Beyond charity, CSR is now sourced in social norms- either those derived from the customs and expectations of firms or as memorialised by an increasingly large number of governance instruments developed by private or public actors. It is also impacts based, it is measured with reference to the effects of corporate activity on stakeholders in anyone of a number of fields of corporate activities.

The Korean chamber of commerce and Industry strongly evidences both a move towards regionalism in CSR and the countervailing push to global harmonization.

Though CSR can be understood as a unifying concepts grounded in this "stakeholder- impact" framework, it is not uncommon for corporate entities, and the states in which they operate, to disaggregate impacts and to arrange them vertically in some sort of order of importance. As a consequence, cultures of CSR may vary, and perhaps sometimes considerably, based on the place where CSR is meant to be applied.

Simultaneously, civil society actors and public international organizations have been working hard to develop and implement a harmonized approach to CSR in which national or regional variations in CSR is minimized and prioritization of stakeholder impacts is avoided.

The number of Korean corporations publishing CSR reports has increased in the 2000's, only a small amount of them are familiar with the concepts of CSR as described in existing international frameworks. In addition, huge amounts of donations are usually used as an impression management tool to repair the reputation of a corporation instead of a true contribution to the society.

As the Korean government desires to shift the country towards a green society, different policies and projects are launched in order to achieve "Low Carbon, Green Korea".

CSR FORUM REPORTKOREA INDIA 09 With governmental supports, the vast majority of Korean corporations has a positive

respond and focuses their CSR effort in environmental issues. Many leading corporate includes Samsung Group, LG Group, and Hyundai-Kia Automotive Group has already invested heavily in their R&D activities and manufacture in green technology.

CSR represents a departure from the traditional basis of corporate governance in law based on the fundamental duty of the corporate entity to shareholder/ enterprise Korean society recognized the importance of CSR through its financial crisis. This historic economic disaster provided a context which generated societal demands and pressures on CSR by stimulating local actors.

Korea experienced a financial crisis between October 1997 and March 1998. The first symptoms of the crisis were recognized in 1996. Korea's account deficit broadened from 2% of GNP in 1995 to 5% in 1996. The growth of exports slowed down and foreign debt increased dramatically to 100 billion dollars in 1996.

The financial crisis introduced the concepts of CSR to Korean society. For example, there was a substantial increase in references to CSR in the Korean Economic Daily.

Even though Korean firms superficially knew about CSR before the financial crisis, most CSR activities were generally limited to corporate contribution and philanthropy activities. This crisis had a great impact on local actors, such as state, corporate, unions, and consumers, who were important stakeholders in CSR.

For example, the financial crisis brought the first transition of political power from the ruling to the reformative opposition party. Moreover, the severe restructuring of companies broke lifetime employment systems, and the uncovering of firms' corruptions prompted NGOs' monitoring. Abolishing protectionist trade policies made customers seek their rights and voice their complaints against Korean companies, which had enjoyed a monopoly for decades.

Furthermore, these local actors saw the fatal consequences when companies only pursued their economic profits through the financial crisis. As a result, these bitter lessons make local actors rethink the role and responsibilities of corporations in society and stimulated them to generate considerable societal demands for improved CSR behavior in Korea.

The Korean government is accelerating the restructuring process of chaebols {Korean style conglomerates, which are family owned business groups (Cho, 1990)}

There are already several signs that the government intends to pay attention to CSR.

For instance, MOCIE (Ministry of Commerce, Industry and Energy) has a plan to legislate CSR laws to promote CSR activities. MOCIE is also developing a CSR reporting system for companies and planning to use pension investment as Social Responsibility Investment (MOCIE, 2005).

Furthermore, the Korean government established The Presidential Commission on Sustainable Development of Republic of Korea (PCSD) in 2000. PCSD is establishing a

CSR FORUM REPORT KOREA INDIA 10

national strategy and policy for sustainable development, maintaining balance between economy, society, and environment.

Therefore, considering the historically strong influence of the government on firms and its recent support of and attention to CSR, the government might become a cornerstone of the development of CSR in Korea. Originally CSR might have been understood as originating in corporate charity, an activity at first grudgingly and then more open handed permitted under the laws of many states.

Beyond charity, CSR is now sourced in social norms- either those derived from the customs and expectations of firms or as memorialised by an increasingly large number of governance instruments developed by private or public actors. It is also impacts based, it is measured with reference to the effects of corporate activity on stakeholders in anyone of a number of fields of corporate activities.

The Korean chamber of commerce and Industry strongly evidences both a move towards regionalism in CSR and the countervailing push to global harmonization.

Though CSR can be understood as a unifying concepts grounded in this "stakeholder- impact" framework, it is not uncommon for corporate entities, and the states in which they operate, to disaggregate impacts and to arrange them vertically in some sort of order of importance. As a consequence, cultures of CSR may vary, and perhaps sometimes considerably, based on the place where CSR is meant to be applied.

Simultaneously, civil society actors and public international organizations have been working hard to develop and implement a harmonized approach to CSR in which national or regional variations in CSR is minimized and prioritization of stakeholder impacts is avoided.

The number of Korean corporations publishing CSR reports has increased in the 2000's, only a small amount of them are familiar with the concepts of CSR as described in existing international frameworks. In addition, huge amounts of donations are usually used as an impression management tool to repair the reputation of a corporation instead of a true contribution to the society.

As the Korean government desires to shift the country towards a green society, different policies and projects are launched in order to achieve "Low Carbon, Green Korea".

With governmental supports, the vast majority of Korean corporations has a positive respond and focuses their CSR effort in environmental issues. Many leading corporate includes Samsung Group, LG Group, and Hyundai-Kia Automotive Group has already invested heavily in their R&D activities and manufacture in green technology.

CSR FORUM REPORTKOREA INDIA 11

G

iven India's long tradition starting from the ancient culture practice of charity, the CSR agenda continues to be characterized mainly by philanthropic and community development activities. CSR has been on the agenda in India for a considerable period of time. Most big Indian corporates are engaged in CSR activities.

With the new socio economic order India has witnessed that there is a growing need for CSR activities undertaken by the companies and needs to be mainstreamed in the core business practices.

As a nation India faces paradoxes and polarities. On the Human Development Index India ranks 127th and nearly 40% of the Indian population is illiterate. More than 1/3rd of the population often called as the demographic dividend lives on less than a dollar and a quarter a day.

India takes pride in the fact that it has made a mark on the intellectual world map. India boasts about possessing the world's third largest scientific and technical manpower and is reckoned as an economic power house. Indian inclusive growth is at the center of India's national agenda and is considered seriously by the Government of India.

It is estimated that 72% of India's top 50 companies undertakes CSR activities which are supported by well defined policies and strategies. The trigger for this estimate has been the global influence of business rendered by globalization, growing trade links and technological proliferation in the last century.

With the growing amount of globalization and liberalization, not only Korean companies are making their presence felt in India, Indian firms too are establishing themselves in Korea.

Indian Company like Tata Motors, have signed an agreement for acquiring Daewoo Commercial Vehicles, Kunsan (South Korea) at a cost of US$ 102 million.

While the organized sector in India is gradually steering towards understanding their social obligations it still has a long way to go. The scope and reach of CSR is further constrained especially amongst the small and medium sized enterprises due to lack of information and skills, technological gaps, financial incapacities, inadequately trained CSR personnel, unavailability of authentic data and specific information about CSR initiatives, coverage and policies.

India has become the first country in the world to mandate CSR spent. The new rules make the earmarking of funds by companies for corporate social responsibility (CSR) spending mandatory. Companies are required to spend at least 2 per cent of their net

The India

CSR FORUM REPORT KOREA INDIA 10

national strategy and policy for sustainable development, maintaining balance between economy, society, and environment.

Therefore, considering the historically strong influence of the government on firms and its recent support of and attention to CSR, the government might become a cornerstone of the development of CSR in Korea. Originally CSR might have been understood as originating in corporate charity, an activity at first grudgingly and then more open handed permitted under the laws of many states.

Beyond charity, CSR is now sourced in social norms- either those derived from the customs and expectations of firms or as memorialised by an increasingly large number of governance instruments developed by private or public actors. It is also impacts based, it is measured with reference to the effects of corporate activity on stakeholders in anyone of a number of fields of corporate activities.

The Korean chamber of commerce and Industry strongly evidences both a move towards regionalism in CSR and the countervailing push to global harmonization.

Though CSR can be understood as a unifying concepts grounded in this "stakeholder- impact" framework, it is not uncommon for corporate entities, and the states in which they operate, to disaggregate impacts and to arrange them vertically in some sort of order of importance. As a consequence, cultures of CSR may vary, and perhaps sometimes considerably, based on the place where CSR is meant to be applied.

Simultaneously, civil society actors and public international organizations have been working hard to develop and implement a harmonized approach to CSR in which national or regional variations in CSR is minimized and prioritization of stakeholder impacts is avoided.

The number of Korean corporations publishing CSR reports has increased in the 2000's, only a small amount of them are familiar with the concepts of CSR as described in existing international frameworks. In addition, huge amounts of donations are usually used as an impression management tool to repair the reputation of a corporation instead of a true contribution to the society.

As the Korean government desires to shift the country towards a green society, different policies and projects are launched in order to achieve "Low Carbon, Green Korea".

With governmental supports, the vast majority of Korean corporations has a positive respond and focuses their CSR effort in environmental issues. Many leading corporate includes Samsung Group, LG Group, and Hyundai-Kia Automotive Group has already invested heavily in their R&D activities and manufacture in green technology.

CSR FORUM REPORTKOREA INDIA 11

G

iven India's long tradition starting from the ancient culture practice of charity, the CSR agenda continues to be characterized mainly by philanthropic and community development activities. CSR has been on the agenda in India for a considerable period of time. Most big Indian corporates are engaged in CSR activities.

With the new socio economic order India has witnessed that there is a growing need for CSR activities undertaken by the companies and needs to be mainstreamed in the core business practices.

As a nation India faces paradoxes and polarities. On the Human Development Index India ranks 127th and nearly 40% of the Indian population is illiterate. More than 1/3rd of the population often called as the demographic dividend lives on less than a dollar and a quarter a day.

India takes pride in the fact that it has made a mark on the intellectual world map. India boasts about possessing the world's third largest scientific and technical manpower and is reckoned as an economic power house. Indian inclusive growth is at the center of India's national agenda and is considered seriously by the Government of India.

It is estimated that 72% of India's top 50 companies undertakes CSR activities which are supported by well defined policies and strategies. The trigger for this estimate has been the global influence of business rendered by globalization, growing trade links and technological proliferation in the last century.

With the growing amount of globalization and liberalization, not only Korean companies are making their presence felt in India, Indian firms too are establishing themselves in Korea.

Indian Company like Tata Motors, have signed an agreement for acquiring Daewoo Commercial Vehicles, Kunsan (South Korea) at a cost of US$ 102 million.

While the organized sector in India is gradually steering towards understanding their social obligations it still has a long way to go. The scope and reach of CSR is further constrained especially amongst the small and medium sized enterprises due to lack of information and skills, technological gaps, financial incapacities, inadequately trained CSR personnel, unavailability of authentic data and specific information about CSR initiatives, coverage and policies.

India has become the first country in the world to mandate CSR spent. The new rules make the earmarking of funds by companies for corporate social responsibility (CSR) spending mandatory. Companies are required to spend at least 2 per cent of their net

The India

CSR FORUM REPORT KOREA INDIA 12

profit on CSR. The companies will also have to give preference to the local areas of their operation for such spending. If they are unable to meet CSR norms, they will have to give explanations and may even face penalty.

The CSR provisions in the Act are as follows:

lClause 135 of the Companies Act 2013 provides for the expected demands towards CSR.

lIt specifies that every company having net worth of Rs. 500 crore or more, or turnover of Rs. 1000 crore or more or a net profit of Rs. 5 crore or more during any financial year shall constitute a CSR committee of the board consisting of three or more directors, out of which at least one director shall be an independent director.

l2% of average net profits of the previous three years will have to be spent on CSR activities with disclosure to shareholders about the policy adopted in the process, giving reasons on failure of implementation.

lThe CSR committee shall:

a.) Formulate and recommend to the board, a CSR policy which shall indicate the activities to be undertaken by the company as specified in schedule VII.

b.) Recommend the amount of expenditure to be incurred on the activities referred to in clause (a).

c.) Monitor the CSR policy of the company from time to time.

lIf the company fails to spend the specified amount on CSR activities, the board shall, in its report made under clause (o) of subsection (3) of section 134, specify the reasons for not spending the amount.

CSR FORUM REPORTKOREA INDIA 13

T

he main objectives of the forum are to: introduce CSR theories and policies of both the countries; discuss how CSR initiatives of the Indian and Korean companies in India fits into the Indian context; share the best practices of CSR initiative, communicate research results concerning CSR; and provide a platform to exchange and share ideas between policy-makers, academics, and businesses.

Hence, the second and the third Korea-India CSR Forum were focused on understanding the CSR policies of both the countries, challenges in implementing CSR project/programs at the grassroot level and prospects for business sustainability. The fourth Korea-India CSR forum focused on partnership models for effective implementation and impact of CSR projects, understanding the requirements under Clause 135 of the Companies Act 2013 and CSR best practices of Indian as well as Korean companies in India in the background of the Companies Act 2013.

Government officials from relevant departments and ministries, officials from foreign embassies in India, representatives of industry associations, of domestic and foreign enterprises and of international organizations and management institutions were invited to discuss on trends of CSR policies and share the best practices on CSR management from the Indian and Korean industry and enterprises. Invited speakers also had extensive and in-depth exchanges with participants so as to build a communicating and interactive platform for those who concern with India's CSR development.

Overview of the CSR Forum

2012- 14

CSR FORUM REPORT KOREA INDIA 12

profit on CSR. The companies will also have to give preference to the local areas of their operation for such spending. If they are unable to meet CSR norms, they will have to give explanations and may even face penalty.

The CSR provisions in the Act are as follows:

lClause 135 of the Companies Act 2013 provides for the expected demands towards CSR.

lIt specifies that every company having net worth of Rs. 500 crore or more, or turnover of Rs. 1000 crore or more or a net profit of Rs. 5 crore or more during any financial year shall constitute a CSR committee of the board consisting of three or more directors, out of which at least one director shall be an independent director.

l2% of average net profits of the previous three years will have to be spent on CSR activities with disclosure to shareholders about the policy adopted in the process, giving reasons on failure of implementation.

lThe CSR committee shall:

a.) Formulate and recommend to the board, a CSR policy which shall indicate the activities to be undertaken by the company as specified in schedule VII.

b.) Recommend the amount of expenditure to be incurred on the activities referred to in clause (a).

c.) Monitor the CSR policy of the company from time to time.

lIf the company fails to spend the specified amount on CSR activities, the board shall, in its report made under clause (o) of subsection (3) of section 134, specify the reasons for not spending the amount.

CSR FORUM REPORTKOREA INDIA 13

T

he main objectives of the forum are to: introduce CSR theories and policies of both the countries; discuss how CSR initiatives of the Indian and Korean companies in India fits into the Indian context; share the best practices of CSR initiative, communicate research results concerning CSR; and provide a platform to exchange and share ideas between policy-makers, academics, and businesses.

Hence, the second and the third Korea-India CSR Forum were focused on understanding the CSR policies of both the countries, challenges in implementing CSR project/programs at the grassroot level and prospects for business sustainability. The fourth Korea-India CSR forum focused on partnership models for effective implementation and impact of CSR projects, understanding the requirements under Clause 135 of the Companies Act 2013 and CSR best practices of Indian as well as Korean companies in India in the background of the Companies Act 2013.

Government officials from relevant departments and ministries, officials from foreign embassies in India, representatives of industry associations, of domestic and foreign enterprises and of international organizations and management institutions were invited to discuss on trends of CSR policies and share the best practices on CSR management from the Indian and Korean industry and enterprises. Invited speakers also had extensive and in-depth exchanges with participants so as to build a communicating and interactive platform for those who concern with India's CSR development.

Overview of the CSR Forum

2012- 14

Discussion details

of the 2 Korea-India nd

CSR Forum, 2012

Discussion details

of the 2 Korea-India nd

CSR Forum, 2012

CSR FORUM REPORT KOREA INDIA 16

T

he 2nd Korea-India CSR forum was organised at time when India's CSR agenda was changing. CSR activities in India were undergoing reform processes in line with global trends with the release of the National Voluntary Guidelines on social, environmental and economic responsibilities (NVGs) the enactment of the Companies Act 2013. To further engage, discuss, share and understand the essence of CSR, policies, its challenges, best practices and prospects it holds for business sustainability and above all leading to future international business engagement and cooperation, the FICCI Aditya Birla CSR Centre for Excellence and the Embassy of The Republic of Korea in India had come together to host the 2nd Indo-Korean CSR forum on 14th December 2012.

Objectives:

lUnderstand CSR development and challenges in India and South Korea ( policies to enhance CSR, collaboration with stakeholders- Civil Society Organisations, Academia, Government etc)

lCSR policy/guidelines in India and Korea

lSharing of best practices

CSR FORUM REPORTKOREA INDIA 17

Inaugural Session:

Hon'ble Ambassador of the Republic of Korea, Mr. Joon-gyu Lee in his inaugural speech expressed happiness about the joint forum and admitted that in this blossoming time of the bilateral ties, Korean companies have played a very important role. In the difficult times of the Indian Economic reforms, Korean companies with their unique foresightedness and confidence in the fundamentals of the Indian economy have invested in India on a large scale and contributed to the extra ordinary growth in the bilateral relations.

Hon'ble Ambassador shared that prior to 1997, the CSR practices of the Korean companies was present but was not reflected in their companies ethos, but aftermath of the East Asian financial crisis Korean companies became more conscious about their social responsibility and obligations. Hon'ble Ambassador added that, today most of the Korean companies are actually engaged in strategic CSR and Korea's large conglomerates spend around 2% of their profits on CSR activities. Hon'ble Ambassador also highlighted an initiative in India of the Korean embassy under the flagship of the new community movement of Korea by adopted a village in the state of Haryana to develop it into a modern village. The project aims to provide water supply too for 100 acres of land bringing prosperity to 800 farming populates in the village.

Secretary General FICCI, Dr. A. Didar Singh in his key note address shared the rich of lagecy of FICCI in mainstreaming CSR in India. He shared that FICCI was aware that of the importance of CSR in modern economy by establishing the FICCI Socio Economic Development Foundation in 1999 which then converted into the Aditya Birla CSR Centre for Excellence in 2010.

Dr. Singh shared linkages between CSR and progressive capitalism, a concept which is related to the business operations that came into existence post the great depression in the US. He added that social responsibility is something that we must try and distinguish from charity or philanthropy.

He concluded his speech by sharing that Social entrepreneurship as a concept may help the industry build alliances with focus on sectors, where alliances reach to sectoral work and the sectors are sometimes obvious for us. These sectors include gender, education and health. Therefore, building alliances with a focus on sectors the industry can be sure that the level of your community work is not just geographical in nature but which is sectoral in India.

Theme: Corporate Social Responsibility: Issues, Challenges, Practices and Prospects

(L-R)Dr. A. Didar Singh, Secretary General, FICCI; , Ambassador of the Republic of Korea and Mr A.K. Agarwala, Chairman, FICCI Indo-Korea Business Committee

H.E. Mr. Joon-gyu Lee

Discussion details of the 2 nd

Korea-India CSR Forum, 2012

CSR FORUM REPORT KOREA INDIA 16

T

he 2nd Korea-India CSR forum was organised at time when India's CSR agenda was changing. CSR activities in India were undergoing reform processes in line with global trends with the release of the National Voluntary Guidelines on social, environmental and economic responsibilities (NVGs) the enactment of the Companies Act 2013. To further engage, discuss, share and understand the essence of CSR, policies, its challenges, best practices and prospects it holds for business sustainability and above all leading to future international business engagement and cooperation, the FICCI Aditya Birla CSR Centre for Excellence and the Embassy of The Republic of Korea in India had come together to host the 2nd Indo-Korean CSR forum on 14th December 2012.

Objectives:

lUnderstand CSR development and challenges in India and South Korea ( policies to enhance CSR, collaboration with stakeholders- Civil Society Organisations, Academia, Government etc)

lCSR policy/guidelines in India and Korea

lSharing of best practices

CSR FORUM REPORTKOREA INDIA 17

Inaugural Session:

Hon'ble Ambassador of the Republic of Korea, Mr. Joon-gyu Lee in his inaugural speech expressed happiness about the joint forum and admitted that in this blossoming time of the bilateral ties, Korean companies have played a very important role. In the difficult times of the Indian Economic reforms, Korean companies with their unique foresightedness and confidence in the fundamentals of the Indian economy have invested in India on a large scale and contributed to the extra ordinary growth in the bilateral relations.

Hon'ble Ambassador shared that prior to 1997, the CSR practices of the Korean companies was present but was not reflected in their companies ethos, but aftermath of the East Asian financial crisis Korean companies became more conscious about their social responsibility and obligations. Hon'ble Ambassador added that, today most of the Korean companies are actually engaged in strategic CSR and Korea's large conglomerates spend around 2% of their profits on CSR activities. Hon'ble Ambassador also highlighted an initiative in India of the Korean embassy under the flagship of the new community movement of Korea by adopted a village in the state of Haryana to develop it into a modern village. The project aims to provide water supply too for 100 acres of land bringing prosperity to 800 farming populates in the village.

Secretary General FICCI, Dr. A. Didar Singh in his key note address shared the rich of lagecy of FICCI in mainstreaming CSR in India. He shared that FICCI was aware that of the importance of CSR in modern economy by establishing the FICCI Socio Economic Development Foundation in 1999 which then converted into the Aditya Birla CSR Centre for Excellence in 2010.

Dr. Singh shared linkages between CSR and progressive capitalism, a concept which is related to the business operations that came into existence post the great depression in the US. He added that social responsibility is something that we must try and distinguish from charity or philanthropy.

He concluded his speech by sharing that Social entrepreneurship as a concept may help the industry build alliances with focus on sectors, where alliances reach to sectoral work and the sectors are sometimes obvious for us. These sectors include gender, education and health. Therefore, building alliances with a focus on sectors the industry can be sure that the level of your community work is not just geographical in nature but which is sectoral in India.

Theme: Corporate Social Responsibility: Issues, Challenges, Practices and Prospects

(L-R)Dr. A. Didar Singh, Secretary General, FICCI; , Ambassador of the Republic of Korea and Mr A.K. Agarwala, Chairman, FICCI Indo-Korea Business Committee

H.E. Mr. Joon-gyu Lee

Discussion details of the 2 nd

Korea-India CSR Forum, 2012

CSR FORUM REPORT KOREA INDIA 18

Chairman, FICCI Indo-Korea Business Committee, Mr. A. K. Agarwala in is special address shared that today CSR is project and needs driven, and the government specifies very clearly through their programs. CSR has to be done mandatorily and dedicatedly and it must co-relate directly with business practices. Co-relating CSR to business activities would mean giving a direct link to share that activity with the rural sector.

He highlighted the legacy of the Aditya Birla Group, which is working in about 2,500 rural villages focussing on health, education, sustainability, infrastructure, water conservation, emission of carbon and the agricultural sector. They have about 7 million beneficiaries and are able to mobilise funds of about approximately 180 crore which is approximately 5.5 million dollars.

Recapitulating from old days he shared about Shri G.D. Birla, who was a close associate of Mahatama Gandhi, who mentioned believing that the villagers and co-workers must be treated and understood to be brothers to each other. He believed that each business must understand that despite of earning profits, how the society benefits from it.

Ultimately society should be benefitted. The meaning for doing business was there along with the objective but the target could be a small one. Building hospitals, donating food or creating schools could be the targets. The scenario is changing now and it is completely necessary for the businesses to take up CSR activities.

Further, he shared that the Aditya Birla group have developed an approach to create education and awareness in the business communities, in the industry; created/

formed a community known as the FICCI Aditya Birla CSR Centre for Excellence. At the end Mr. Agarwala requests the corporates to come together and work towards spreading the idea of CSR through business practices.

CSR FORUM REPORTKOREA INDIA 19 lBy incorporating a CSR policy, the businesses can improve their economic profits

and goodwill in the society. Rather CSR should be more of a mandatory activity and not a voluntary option for companies.

lThe normative guidelines which were mentioned during the presentation included the OECD guidelines for Multilateral Enterprises and ISO 26000 etc.

lThe companies should invest into CSR and within it should be done from a longer term strategic point of view to make it sustainable and reliable for the future.

Session I: CSR and Policy

Mr. Cheol-Kyu

Deputy Director General, MOFAT Mr. Manoj K. Arora Addl. Director General Ministry of Finance, GoI

Deputy Director General, MOFAT, Mr. Choe Cheol-Kyu demonstrated on a macro level the various areas which often are neglected with respect to CSR in Korea.

Below are the highlighted points out of his presentation:

nAccording to the definition given by the World Business Council- Corporate Social Responsibility is 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 of the local community and society at large.

nFor many companies and their members, CSR is considered to be burdensome and waste of time, however it is high time that the companies realise that it is important for the long run.

(L-R) Mr. Manoj K. Arora, Addl. Director General, Ministry of Finance, GoI and Mr. Choe Cheol-Kyu, Deputy Director General, Ministry of Foreign Affairs and Trade, Republic of Korea.