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Case Studies from India Inc Disclaimer: This Publication Does Not Constitute Professional Advice in Any Form 2015 CORPORATE SOCIAL RESPONSIBILITY AND SANITATION C a s e s t u d i e s f ro m I n d i a I n c CORPORATE SOCIAL RESPONSIBILITY AND SANITATION Case studies from India Inc Disclaimer: This publication does not constitute professional advice in any form. The information in this publication has been obtained from sources believed by Federation of Indian Chambers of Commerce & Industry (FICCI) and IPE Global Center for Knowledge and Development (IPE CKD) to be reliable but FICCI and IPE CKD does not represent that this information is accurate or complete. Readers of this publication are advised to seek their own professional advice before taking any course of action or decision, for which they are entirely responsible, based on the contents of this publication. FICCI & IPE CKD neither accepts or assumes any responsibility or liability to any reader of this publication in respect of the information contained within it or for any decisions readers may take or decide not to or fail to take. © 2015 IPE Global Center for Knowledge and Development (IPE CKD). All rights reserved. Designed by Impressions Communications. Foreword The Clean India Mission or Swachh Bharat Abhiyan was launched on October 2, 2014 by the Hon’ble Prime Minister of India with an aim to build a hygienic, healthy and sustainable environment that contributes to the social development of the nation. The Corporates are undertaking various innovative, sustainable and effective programs to translate the vision into reality. The companies worked on solutions that addressed the main causes that led to open defecation – lack of infrastructure and awareness regarding the importance of observing hygienic practices. Many of the FICCI members too came forward and pledged support to the Swachh Bharat Mission. FICCI’s Socio Economic Development Foundation (SEDF) is currently implementing Sanitation projects across six states of India and has collaborated with companies such as Abbott, Bank of Tokyo Mitsubishi UFJ (BTMU), Magma, Paul Merchant, Xpro India Ltd and others. FICCI will continue to support the Government of India’s goal of creating a Clean India by 2019. FICCI is also a partner of the India Sanitation Coalition and is serving as its project coordination office. The Coalition was launched in June 2015 to act as a common platform for all stakeholders in the sanitation space and to be an aggregator of knowledge and networks with nationwide outreach, focusing on models for achieving sustainable sanitation in alignment with the Swachh Bharat Mission and its goals. This publication is a compilation of a few initiatives undertaken by various Corporates as a part of their Corporate Social Responsibility program promoting India to become Open Defecation Free. The objective of putting together these case studies is to showcase the good work being done by several organisations and help others to emulate some of the best practices to take the Hon’ble Prime Minister’s vision forward in a positive and concrete manner. Dr. A. Didar Singh Secretary General, FICCI Corporate Social Responsibility and Sanitation: Case studies from India Inc iii Contents Foreword ..................................................................................................................................... iii Introduction ...............................................................................................................................vii 1. ACC Limited ................................................................................................................................1 2. Adani Foundation (AF) ..............................................................................................................7 3. Bajaj Auto Ltd. (BAL) ............................................................................................................... 13 4. BASF India Limited .................................................................................................................. 19 5. Bharti Enterprises .................................................................................................................... 23 6. Cairn India Limited ................................................................................................................. 29 7. Chambal Fertilisers and Chemicals Limited ...................................................................... 35 8. Essel Mining & Industries Limited (EMIL) .......................................................................... 41 9. GMR Group .............................................................................................................................. 47 10. Hindustan Coca-Cola Beverages Pvt. Ltd. ........................................................................ 55 11. Hindustan Zinc Ltd., Rajasthan ............................................................................................ 61 12. Rajashree Cements ................................................................................................................. 65 13. Sahyadri Industries Ltd (SIL) ................................................................................................. 71 14. Shree Cement Ltd ................................................................................................................... 77 15. Standard Chartered Bank ..................................................................................................... 85 16. United Technologies (UTC) ................................................................................................... 87 17. Vedanta’s SSLT Aluminum Business Unit, Lanjigarh, Odisha ....................................... 91 18. Vedanta Copper Business Unit, Tuticorin, Tamil Nadu .................................................. 95 19. IPE Global led WASH Initiatives in Odisha and Bihar ..................................................... 99 Corporate Social Responsibility and Sanitation: Case studies from India Inc v Introduction Water, Sanitation and Hygiene (WASH) are some of the most basic needs for human health and survival. More than a third of the world’s population does not have access to hygienic means of basic sanitation, and 1 out of 10 people do not have access to a safe source of drinking water. Total Sanitation in rural areas has been a focus area for successive governments at the centre in India since Independence. Sanitation in Indian cities is a neglected service; out of the one billion people in the world who have no toilet, India accounts for nearly 600 million. According to the 2011 Census, more than 67% of the rural households in India do not have access to a toilet. In absolute numbers, it is a staggering 112,997,499 rural households. In other words, more than 110 million rural households do not have access to a toilet. Within states, Jharkhand has the highest percentage of rural households without a toilet. Kerala is last on this list with only 5.6% rural households without a toilet1. “Has it ever pained us that our mothers and sisters have to defecate in the open?” With these words, Prime Minister Narendra Modi pushed sanitation up the hierarchy of national concerns this independence (2014).” Slow but steady progress has been made under the Nirmal Bharat Abhiyan (NBA) and now the Swatch Bharat Mission as the average number of toilets constructed per year has increased in the last 5 years. According to data available with the government, a total of more than 22 million toilets were constructed for individual households in the rural area from 2011-12 to 2014-15. The greatest number of toilets was built in 2011-12, about 8.8 million. The number of toilets built per year has never crossed the 5 million mark since then. Even at this pace however, the target of 100% toilets by 2019 announced under the Swachh Bharat Mission seems hard to achieve. According to UNICEF figures, full coverage across the country at the current four-year average of 5.7 million toilets per year, can only be met by 2030-31. If the target of 2019 is to be achieved, government efforts need to be supplemented. Source: UNICEF 2012 1 https://factly.in/rural-toilets-in-india-at-current-rate-it-will-take-15-more-years-to-build-toilets-for-all-rural-households/ Corporate Social Responsibility and Sanitation: Case studies from India Inc vii In this context, when state governments are struggling for resources, the Corporate Social Responsibilities (CSR) provisions of the Companies Act, 2013, provide the opportunity for industries, corporate houses, private/public limited companies to support the government’s Swachh Bharat Mission and effectively upscale planned interventions through channelised and targeted funds. The Companies Act, 2013, under Section 135, and the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014, state that Net worth of INR 500 crore every company, private limited or public limited, OR a turnover of INR 1,000 which either has a net worth of INR 500 crore OR a crore OR net profit of INR 5 turnover of INR 1,000 crore OR net profit of INR 5 crore = At least 2% of average crore, needs to spend at least 2% of its average net net profits of last 3 years profit for the immediately preceding three financial years on corporate social responsibility activities. The activities2 that can be undertaken by a company as per schedule VII of the CSR mandate mainly includes eradicating hunger, poverty and malnutrition; promoting preventive health care and sanitation & making available safe drinking water; etc. However, in determining
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