International Journal of Research ISSN NO:2236-6124

Sustainable Development through Corporate Social Responsibility: A case study of Cochin Ltd. Nimmy A. George (Research Scholar, CUSAT; Asst Prof, , Thrikkakara ) Email: [email protected]

Dr. Manoj Edward Professor School of Management Studies, CUSAT Email: [email protected]

Abstract

Sustainable development has become the core objective of any business activity. United Nations has introduced Sustainable Development Goals (SDGs) in 2016 with the objective of transforming the entire nations into a sustainable economy by 2030. CSR is found to be an effective vehicle for sustainable development ( Moon, 2007). The government of took the initiative to include the sustainable development projects such as Swachh Bharat and Skill India under Schedule VII (specifying thematic areas for CSR) of Indian Companies Act 2013. As a result, companies in India are participating more actively in the sustainable development of the country. Hence, under the new mandatory CSR rule, the Cochin Shipyard Ltd, a Mini Ratna CPSE listed company has strategised their CSR activities towards sustainable development. This paper analyses the CSR activities of Cochin Shipyard through case study methodology. The primary information about the CSR activities and its implementation strategy was collected through the interviews, with the Head of CSR and Managers in charge of CSR Cell. Secondary Data was collected from the Annual Report, newsletters of Cochin Shipyard Ltd, the website of Cochin Shipyard Limited, previous relevant studies and UN reports and website. The study reveals that the constant and stable efforts for CSR implementation enhances the sustainability of the business and inclusive growth of the society and thereby contributes to achieve the sustainable development goals by 2030. The different strategies and approaches of Cochin Shipyard Ltd for the implementation of CSR Projects are discussed.

Keywords – Sustainable Development, Corporate Social Responsibility, Millennium Development Goals, Sustainable Development Goals, Cochin Shipyard Ltd.

Introduction Earth is our common home, and every individual has an equal right to live in this world. Any sort of developmental activities makes our earth more powerful and add potentials for the growth of humankind. However, natural resources are scarce, and henceforth, if not properly utilised, it will severely affect the future generations. The developmental activities, therefore, should be guided or conducted so as to balance the socio-economic and ecological needs of the present and upcoming generations. Any development which brings long-term sustainability to the planet is rightly termed as Sustainable development. According to Brundtland Commision 1987, sustainable development is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Previous studies proved that sustainable development could be achieved through the CSR programs, even if the activities are not related to their core business (Hidayati, 2011), and CSR act as an effective vehicle for sustainable development (Hamann 2003; Moon 2007). Lesmone(2007) states that sustainable CSR projects help to build up a prosperous and independent community (Hidayati, 2011). In this regard, CSL created a prominent role in delivering sustainable development programmes through its CSR activities.

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Sustainable Development Goals

The sustainable development goals were introduced at the United Nations Conference on Sustainable Development in Rio de Janeiro, Brazil in 2012. The objective of the UN conference was to develop a set of universal goals that could meet the urgent environmental, political and economic challenges facing our world (UNDP, n.d.). SDGs replaced the Millennium Development Goals which started its universal effort in 2000 to tackle the disgrace of poverty. Millenium Development Goals was evolved through the participation of 189 countries and consists of 8 universal goals to achieve sustainable development; 1. Eradicate Extreme Poverty and Hunger 6.Combat HIV/AIDS, malaria and other 2. To achieve universal primary education, deadly diseases 3. Promote Gender Equality and Women 7.Ensure environment sustainability Empowerment 8.Global partnership for development. 4. Reduce Child mortality 5. Improve maternal health Source: (United Nations, n.d.)

Millenium development Goals era comes to an end by 2015 after its 15 years long journey to make the earth more prosperous. Even though it could bring down the poverty level, child mortality, dropping off school children and deadly diseases, it could not completely fulfil its targets. Therefore Sustainable Development Goals was launched in 2016 in place of Millenium Development Goals with 17 goals and 169 targets to be fulfilled by the year 2030. Sustainable development goals are the additions to MDGs which are formed as a part of “Transforming our World: the 2030 agenda for the Sustainable Development” adopted by 193 member states at the historic UN General Assembly Summit in September 2015 and came into effect from 1st January 2016. The SDGs also called as Global goals are the worldwide call to end poverty, protect our planet and to ensure peace and prosperity to all people.

Sustainable Development Goals include

1. No poverty 10. Reduced Inequalities 2. Zero Hunger 11. Sustainable Cities and Communities 3. Good health and Wellbeing 12. Responsible Consumption and Production 4. Quality Education 13. Climate 5. Gender Equality 14. Life below water 6. Clean Water and Sanitation 15. Life on Land 7. Affordable and Clean energy 16. Peace, Justice and Strong Institutions’ 8. Decent Work and economic growth 17. Partnership for the goals 9. Industry, Innovation and Infrastructure Source: (United Nations, n.d.) National Actions on the SDGS in India

CSR – an effective vehicle for SDGs implementation

National Institute for Transforming India (NITI) Aayog, the policy think tank of is assigned with the mission of coordinating SDGs in India. Along with NITI, the Ministry of Statistics and Programme Implementation (MOSPI) conduct discussions to develop national indicators for SDGs. Many of the Government projects such as Swachh Bharat, Skill India and Digital India also form part of sustainable development programmes (United Nations, n.d.). State Government and the local government are the key players for the implementation of India’s SDGs. State Government is entrusted with the planning, budgeting, implementation and monitoring of SDGs undertaken by the local governments. The local government has direct contact with the people,

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and they should ensure that no one is left behind while implementing the SDG agenda. Due to the lack of resources and technology, government alone cannot achieve sustainable development goals. As stated in the last SDGs, a partnership of public and private institutions and individuals are essential to achieve the SDGs by 2030. As a step towards sustainability, the Government of India introduced sustainability projects such as Swachh Bharat, Skill India and other contributions to Prime ministers fund under the CSR thematic areas towards which the company can contribute to achieve the minimum mandatory CSR target required by Section 135 of Indian Companies Act 2013 and CSR rule 2014. Sustainable development programmes are carried out by companies in India under the umbrella of Corporate Social Responsibility. CSR is made mandatory in India from April 2014 onwards in which the companies with specified net profit or networth or turnover should mandatorily spend 2 percent of their average Net Profit (before tax) of the previous three years on CSR activities. The Schedule VII of Companies Act 2013 also mentioned the areas in which the company should utilize the CSR fund to consider it as a CSR activity under Section 135 of Companies Act 2013. (Gazette of India, 2014)

SDG India Index SDG India Index was developed by NITI Aayog for the first time to measure the average performance of the State/Union Territories towards achieving the 13 SDGs out of 17 SDGs and their respective targets. A composite score ranging from 0 to 100 was computed for each State and UT of India based on the average performance of the State/UT towards achieving sustainable development goals. According to SDG India Index: Baseline report 2018 “ the SDG Index Score for Sustainable Development Goals 2030 varies between 42 and 69 for States and between 57 and 68 for UnionTerritories. Among the States, and Himachal Pradesh are the front runners with an SDG India Index score of 69. Among the UTs, Chandigarh is a front-runner with a score of 68. Kerala’s top rank in SDG index is attributed to its superior performance in providing good health, reducing hunger, achieving gender equality and providing quality education”. (NITI Aayog, 2018)

Corporate Social Responsibility “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 the local community and society at large”. World Business Council for Sustainable Development (1999).

Corporate Social Responsibility(CSR) is the term used to denote the social obligations of business while performing its activities. Corporate Social Responsibility is the responsibility of the Company towards various stakeholders comprising customers, employees, shareholders, government, community environment, future generations and society at large. The company cannot exist for a long without the support from the community who is affected by the operations of the company. The company should compensate the community for utilising the scarce natural resources and causing pollution while living amidst people. According to Archie B. Carroll (1979), “the social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that society has of organisations at a given point in time”(Carroll, 1979). Beyond charity, the contemporary approach of CSR is regarded as integrating social, environmental and ethical concerns into a company’s business models.

New CSR Rule 2014 in India – a step towards the sustainable development goals

Corporate Social Responsibility is not a novel concept in India as CSR activities were undertaken in India in the form of voluntary contributions to society by corporations. CSR has become a prominent word in the business field very recently after the enactment of new Companies Act 2013 and new CSR rule 2014. As per the CSR law 2014, the companies having a turnover of Rs. 1,000 crore or more, or net worth of Rs. 500 crore or more, or net profit of Rs. 5 crores or more, must spend at least 2 per cent of their average net profit of the preceding three years annually on CSR activities.

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Section 135 of Companies Act 2013 clearly stated the activities which come under the purview of CSR and also recommended the companies to form a CSR Committee and publish the CSR expenditure details in the Annual Report of the company. As a result of the new CSR law 2014, the Indian Inc has spent more than Rs 28000 crore in CSR activities in 3 years between 2014-15 & 2016- 17, according to the data compiled by Industry of Corporate Affairs (India CSR Network, 2018).

The Indian Companies Act 2013 made it compulsory for the companies to contribute 2 per cent of the average net profit of the last three years on CSR works. Thus Indian CSR structure has undergone a transition from the voluntary CSR to mandatory CSR. However, the new rule does not bring a burden on many companies as they were doing CSR as part of their business even before the enactment of the new rule. Cochin Shipyard Ltd belongs to such a good corporate citizen who cares about society and the environment along with its profitability.

Activities under schedule VII of Indian Companies Act 2013 include 1. Eradicating hunger, poverty and malnutrition 2. Promotion of Education and employment enhancing vocation skills 3. Gender equality and women empowerment 4. Ensuring environmental sustainability 5. Protection of National Heritage, art and culture 6. The benefit of armed forces veterans,war widows and their dependents 7. Promote rural sports, nationally recognised sports, Paralympics sports and Olympic sports 8. Contribution to the Prime Minister's national relief fund any other fund set up by the Central Govt. for socio-economic development and relief and welfare of the scheduled castes and tribes, other backward classes, minorities and women. 9. Fund to Technology incubators 10. Rural development projects. Source: (Gazette of India, 2014) When comparing CSR activities mentioned in CSR rule 2014, Millennium Development Goals and Sustainable development Goals, most of the areas of CSR are already included in the 8 MDGs and 17 SDGs. Thereby by making CSR mandatory for profitable companies, the government took the initiative to involve the companies in achieving the sustainable development goals.

From the part of companies, only the sustainable company can exist in a society in the long run. Sustainable business refers to that business which causes a very less negative impact on the economy, community and environment. Such business which takes care of the society along with their primary objective of profit-making can be called as a socially responsible business (Bapat, 2018). Sustainable Development comprises of 3 dimensions: social, economic and ecological which is called by the term triple bottom line by Elkington, 1997. Nowadays the companies focus on the triple bottom line which includes profit, people and planet rather than profit alone. CSR is a close adjunct of the triple bottom line and measures the impact of Companies CSR activities on Socio-economic and ecological development of society. Sustainable development focus on the Ecological and social upliftment of the society without compromising its economic development. Cochin Shipyard Ltd is at the forefront among other public sector companies in Kerala working for the sustainable development of the community.

Methodology The main objectives of the study are: 1. To understand the CSR initiatives being taken by the Cochin Shipyard Ltd 2. To examine the CSR Strategy and their mode of action for implementation of CSR initiatives. 3. To understand the effect of the New CSR rule on the company. 4. To understand the contribution of Cochin Shipyard Ltd towards achieving sustainable development goals

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This paper envisages to highlight the society and community-related best practices of a Mini Ratna CPSE, Cochin Shipyard Ltd and to analyse the multipronged strategies of CSR project execution of the bank. The paper adopts Case Study Methodology to elucidate the theme. Cochin Shipyard Ltd is worth to be studied due to its wide range of CSR initiatives. The Company has been undertaking CSR practices from the very year of its inception. Secondary Data was collected from Annual Report, CSR reports, previous relevant studies and the website of Cochin Shipyard Ltd and also from the reports and website of the United Nations. Annual Reports of the Cochin Shipyard Ltd for the last six years, i.e. from 2012-13 to 2017-18 are considered for the present case study.

Cochin Shipyard Ltd

Cochin Shipyard Ltd, a Mini Ratna Listed company under the Ministry of Shipping, is the largest greenfield and Ship repair yard in India. It is situated adjacent to Port of Cochin in District of Kerala. It is incorporated as the wholly owned government of India Company in the year 1972. Initially, Shipyard was involved in Ship Buiding operations and later expanded its operations to ship repair services of all types of ships in 1982. Today the Cochin Shipyard Ltd is one among the top integrated shipbuilding, repair and training services players in India and is the most esteemed commercial and defence ship and offshore structure building and repairing facility. Cochin Shipyard also provides training to 100 graduated engineers to marine engineers every year who later join ships both Indian and foreign as 5th Engineers. With its proven expertise, Shipyard provides a wide range of products such as tankers, product carriers, Bulk carriers, Passenger Vessels, High Bollard Pull Tugs and Air Defence Ship. Apart from being the one among India’s top 10 public sector undertakings and has ISO 9001 accreditation, Cochin Shipyard has been rated excellent by the Government of India, four times in a row for achieving targets set for the yard under the MOU System. Cochin Shipyard has specialised industry knowledge, superior resources and technical expertise which enable the company to excel in the field of shipbuilding and ship repair.

Cochin Shipyard, renowned for its quality products and services rendered to satisfy the customer's requirement, also considers community development and sustainable development as their inevitable business objectives. Cochin Shipyard Ltd is participating in community development and sustainable development through its mechanism of Corporate Social Responsibility. The basic philosophy behind CSR activities is to give back to the society and environment for what it is taken away from them by utilising the natural resources.

The Cochin Shipyard Ltd started its Corporate Social Responsibility activities in the year 2010-11 as per the guidelines issued by the Department of Public Sector Enterprises(DPE) applicable to government Companies. After the enactment of new CSR rule 2014, the CSL formulated the Corporate Social Responsibility and Sustainable Development Committee who recommended the CSR policy comprising the activities to be undertaken by the company was approved by the board.

CSR Vision of Cochin Shipyard Ltd “ Cochin Shipyard Ltd in consonance with its Corporate Vision looks forward to continue in the best tradition of being a responsible Corporate citizen recognised for the quality of its products and services and respected for its ethical way of conducting business. In this, it endeavours to follow the path of shared inclusive growth, thus distributing the fruits of its prosperity towards improving the quality of life of the society and contributing to environment and nature for sustainable development” (Cochin Shipyard Ltd, 2014)

CSR Implementation Mechanism in Cochin Shipyard Ltd.

The CSR machinery consists of three-tier systems in Cochin Shipyard: Tier 1 CSL Board, Tier 11 CSL Board Level CSR Committee and Tier 111 CSL CSR Executive committee consisting of 6 cross-functional senior level executives. CSL received proposals or applications for CSR support

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from various agencies like NGOs, Government agencies, District Administration, Cooperative Entities and Local Bodies etc. Each proposal received by CSL is further examined and scrutinised vide clarifications, in-situ visits, baseline survey etc. by CSL CSR Executive Committee and CSL CSR Cell. All proposals received are presented to the CSR Board Level Committee who after due analysis and evaluation recommends those identified projects for approval by the board. The Board being the ultimate responsible body accords approval for those projects duly deliberated and identified by it. The projects are generally undertaken by the respective agencies under supervision and guidance by CSL CSR team. Periodic review reports of the same are presented to Board Level Committee and through it to the Board. Recently Company has adopted a Standard Operating procedure to further streamline the procedure for identification, selection and prioritisation of the projects, in a more systematic and transparent manner.

Along with the contributing to the sustainable development of the community, the CSR also brings benefit to the company in the form of corporate reputation among the internal as well as external stakeholders. The CSR creates shared value to the community and the company. The CSR boosted the image and goodwill of the company and is the driving force for its employees who take pride in being the part of a responsible corporate organisation. The employees of Cochin Shipyard Ltd are self-motivated by the company's CSR activities and actively involved in the implementation of CSR projects. The employees are also given the opportunity to suggest the disadvantage, vulnerable, marginalised and backwards areas nearby their own houses to carry out the CSR activities. Through the regular meeting and in-house magazines, all employees are informed about the CSR activities undertaken by the CSR cell of the company (information obtained through the interviews with managers and CSR Cell ). CSR CSL is very much alive in the CSR domain, and CSR is a part of its DNA. Through its CSR activities, the Cochin Shipyard Ltd extend its hand of support to women, children and other underprivileged groups of the society. The CSL also partakes in the national and economic development of India by actively participating in the initiatives of The government of India such as Swachh Bharat and Skill India. The main focus areas of CSR initiatives undertaken by the Cochin Shipyard Ltd can be grouped under four headings, i.e., Health, Education, Community development and Swachh Bharat. Cochin Shipyard has bagged with prestigious awards in the field of CSR throughout its CSR era. Some of the recent awards in the year 2017- 2018 include KMA Excellence award, Bureaucracy Today-Excellence Award for rural development, Corporate Citizen award 2018 sponsored by Public Relations Council of India. Table 1 showing the Prescribed CSR and actual CSR spent by Cochin Shipyard Ltd Financial Year Profit before tax CSR amount to be spent as per Actual CSR spent (in (in crores) CSR rule ( in Crores) crores) 2017-18 604.86 8.54 8.57 2016-17 493.40 7.22 7.24 2015-16 419.65 6.23 6.27 2014-15 367.56 5.46 5.32 2013-14 290.96 3.60 2012-13 275.55 2.17 2011-12 252.97 3.50

From table 1, it is quite evident that the Cochin Shipyard has been fulfilling its obligation towards the society through CSR activities. The amount of CSR required to be spent in each year is calculated as 2 per cent of previous three years’ average net profit before tax. In the initial year of the CSR

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rule, i.e. 2014-15, the company spent Rs. 5.32 crores which are near to the mandatory CSR requirement Rs. 5.46 crores as per the provisions of new CSR Rule. In the following years, i.e. from 2015-16 onwards, the CSL spent more than what is required by law thereby showing its reverence towards the government and commitment towards the society Chart 1: Prescribed CSR Vs Actual CSR after the enactment of Indian Companies Act 2013

Prescribed CSR vs Actual CSR 9 8 7 6 5 4 3 2 1 0 2014-15 2015-16 2016-17 2017-18

Mandatory CSR in crores Actual CSR Spent in crores

Table 2. The epitome of CSR Spend during the past eight Years Sl No Year No of Projects 1 2010-11 17 2 2011-12 22 3 2012-13 24 4 2013-14 31 5 2014-15 30 6 2015-16 33 7 2016-17 49 8 2017-18 70 Total 276

Table 2 depicts the number of CSR projects undertaken by the Cochin Shipyard Ltd from 2010 onwards. From the table, it is evident that the Cochin Shipyard Ltd initiated 276 projects for the socio - economic and ecological development of the society in the last eight years. The number of projects undertaken has substantially increased during the last two years. CSL has categorised the CSR projects as Major Projects and Minor Projects by the cost of each project. Major projects comprise those projects which cost more than Rs 10 lakhs. Minor Projects include those CSR projects that cost less than Rs 10 lakhs. During the financial year 2017-18, the Cochin Shipyard Ltd gave more focus on Swachh Bharat, Education, Health care, skill development, rehabilitation, rural development, environmental conservation, protection and promotion of national monuments, art culture and heritage. The CSR funds are utilised directly by the company as per the guidelines of CSR Committee Budget Allocation of funds towards CSR activities The following figures presented the proportion of CSR budget allocated by Cochin Shipyard Ltd during last 3 years ie from 2015-16 to 2017-18 to different areas like Swachh Bharat, Education & Skill Building, Health Care , Gender Equality and Women empowerment, Environmental Sustainability, Rural Development activities, Sports, and National Heritage, Arts and Culture.

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Figure 1

CSR Budget (in lakhs), 2017-18 Swacch Bharat Major 36, 4% 32.85, 4% 49.44, 6% Swacch Bharat Minor(Healthcare) Healthcare 72.5, 8% Education and employment 242.5, 28% enhancement Gender Equality and Women 73.76, 9% Empowerment National Heritage , Arts and 13.5, 2% Culture Environment Sustainability 264.49, 31% 72.67, 8% Rural Development

Common to education and equality In 2017-18, the major portion of the CSR budget is allocated to education projects (31percent) and Swachh Bharat Projects (including both major and minor project)(30percent), followed by healthcare projects. Health promotion projects under Swachh Bharat accounted for 2 percent and general health care projects proportion comes to 8 percent of the total budget outlay. Hence healthcare projects together accounted for 10 percent of the CSR budget.

Figure 2

CSR budget(in lakhs), 2016-17

32.85, 5% Swacch Bharat 2.9, 0% Healthcare 95.65, 7.3, 1% 80, 14% 11% Education and employment 25, 4% enhancement Gender Equality and Women Empoerment 148.72, 21% 306.95, 44% National Heritage , Arts and Culture Rural Development

Sports promotion

Common to education and equality In 2016-17, the major portion of the CSR budget is allocated to Healthcare Projects (44percent) followed by the education projects (21 percent) and Swachh Bharat Projects (14 percent). Least CSR budget is allocated towards sports promotion and national heritage which is less than or equal to 1 percent of the total CSR budget.

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Figure 3

CSR Budget (in lakhs),2015-16 80.3, 8% Swacch Bharat 4.5, 0% Healthcare 25, 3% 90, 9% Education and employment enhancement 188.97, National Heritage , Arts and 20% Culture 428.76, 45% Education cum Gender Equality Education cum National Heritage 13, 1% Healthcare cum education 132.76, 14% Equality cum env : sustainability cum Rural development In 2015-16, the major portion of the CSR budget is allocated to Healthcare Projects (45percent) followed by the education projects. The company has undertaken certain activities which come under the clause of education projects as well as equality, healthcare, environmental sustainability and rural education, it is mentioned separately in the diagram. CSR budget allocation is least in sports promotion and National Heritage which accounted to less or equal to 1 percent of the total CSR budget CSR Projects initiated by Cochin Shipyard Ltd. Swachh Bharat 1.“ Haritha Keralam”, is a major CSR project undertaken by CSL which costs Rs 30 lakhs. Through this project, CSL could provide 100 Ponds in 50 days in , Kerala which bring benefit to entire Ernakulam district. The project is executed with the support of District Collector, Ernakulam. 2. CSL extend its support for Clean Ganga Mission activities to National Mission for Clean Ganga (NMCG) which avoids the health problem of those people who use the Ganga water and its facilities. It is a major CSR project of Cochin Shipyard Ltd which accounted for Rs.60 lakhs. 3. As a part of its CSR activities, CSL constructed toilets for the 50 families in the coastal area of Alleppey District, Kerala in cooperation with Coastal Education Society Alleppey. This initiative also comes under the major CSR projects which costs Rs. 32.50 lakhs. 4. CSL helped in restoring the sculptures in Subhash Chandra Bose Park in Ernakulam district of Kerala. This major project which cost Rs 20 lakhs will benefit the children and all the people who visit the park. 5. Another major project initiated by CSL is the construction of household toilets in to achieve ODF status to Lakshadweep. This project which costs Rs 100 lakhs is implemented with the support of Govt of India, Lakshadweep Administration Cochin Shipyard Ltd has also undertaken minor sustainable projects which costs less than Rs 10 lakhs under Swachh Bharat Mission. 6. CSL extend support for Haritharda Santhwanam –A27 days Swachatha awareness campaign conducted in all districts of Kerala State. The project costing Rs 1 lakh provides benefit to 2000 people including students. The project is implemented with the support Bodhanada Sruti Seva Trust, Vytilla

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7. CSL initiates a health-oriented project costing Rs 3 lakhs for promoting the environment-friendly items and enhances the income of marginalised women which provide a livelihood for 40 poor women and students. The project is undertaken in Ernakulam district of Kerala with the support of St Theresa's College, Ernakulam. 8. CSL initiated support for construction of new septic tank for girls hostel at VivekanandaTribal Residential school Mattilayam, Vella Munda, Wayanad District. The project costing Rs 4.5 lakhs has benefitted 100 tribal students 9. CSL provide Financial support for the publication of the Book “Njanum Ente Bhumiyum Njanum Ente Samoohavum’ in Ernakulam District which becomes beneficial for 5000 book lovers. The project costing Rs 5 lakh is implemented in partnership with the welfare service society, Ernakulam Other major projects undertaken by the Cochin Shipyard Ltd towards sustainable development through CSR are mentioned below (source: Annual report 2017-18) Table 3. CSR vs Sustainable Development Goals

CSR activities undertaken by the CSR activity as per Sustainable Beneficiaries Cost in company schedule VII of development lakhs (Annual report 2017-18) Companies Act 2013 goals Financial Support extended to Cl. (ii) Promoting Cl.(4). Quality 40 autistic 40 construct an early intervention education Education children cum sensory integration therapy unit for autistic children at Aranattukara, Thrissur

Financial support extended for Cl. (iii) setting up Cl. (3) Good 120 old and the 11.76 defending the human rights of of homes and health and sick in the the destitute, the aged and the hostels for women weel being Palluruthy mentally disabled in relief and orphans relief settlement at Palluruthy settlement Financial support provided for Cl. (x) Rural Cl(1,2,3) No 31 poor 36 completion of incomplete Indira development poverty, Zero families Avas Yojana houses at Block projects Hunger, Good of the Panchayat Veliyanad, health and well Panchayat Alleppey District being Financial Support provided for Cl. (ii) and (iii) Cl(10) 60 students 32.85 skill development in welding Livelihood Reduced technology for 60 unemployed enhancement Inequalities youth who belong to BPL projects and Families measures for reducing inequalities faced by Socially & economically backward groups Financial support provided for Cl. (i) promoting Cl(3) Good 50 Children 10 the construction of counselling health care health and well who are and rehabilitation training centre including being affected with at Aranattukara, Thrissur by preventive Cancer SOLACE Financial assistance extended to Cl.(v) protection of Cl.(11) 40 staff 60 purchase a 50 seater marine boat national heritage, Sustainable members of to Vivekananda Rock Memorial art and culture Cities and the Institute & Vivekananda Kendra, Communities Kanyakumari

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Financial support provided for Cl. (iii) setting up of Cl(1,2,3) No 40 aged 40 setting up a rehabilitation cum homes and poverty, Zero people yoga centre for the aged by hostels for women Hunger, Good Punnyam Trust at Vazhoor, and orphans health &well Kottayam District being Financial assistance for the Cl. (i) promoting Cl(3) Good Snake bitten dialysis clinic support program at health care health and well patients 28.90 LF Hospital and Research Centre including preventive being Angamaly to treat the patients bitten by a poisonous snake.

Financial assistance extended to Cl. (iv) Conservation Cl. (14) Life 500 40 conserve Whale sharks along of natural resources. below water Fishermen Kerala and Lakshadweep waters Communities by Wild Trust of India, New York Financial support for minimum Cl. (i) promoting Cl(3) Good 25 patients 25 25 joint replacement surgeries health care including health and well who suffer by Sudheendra Medical Mission, preventive being Knee Ernakulam. problems Financial assistance for Cl. (ii) promoting Cl(4) Quality 1200 School 11.54 establishing IT lab at SRV Govt. education,including Education Children (Model) High School,Ernakulam special education ‘Velicham’ educational Cl. (ii) promoting Cl(4) Quality 3000 School 10 project education,including Education Children special education Support for Nandanam Cl. (ii) promoting Cl(4) Quality 40 destitute 16 Balasadanam building education, Education children for the destitute children, including special Koovapadam, . education Support for a school bus to Cl. (ii) promoting Cl(4) Quality 75 Special 16.53 Raksha Society for the care of education,including Education Children children with special needs. special education Support for a training Cl. (ii)Employment Cl (5)Gender 50 30 and development centre for Enhancing vocational Equality Marginalised Marginalized women- skills, especially Women of Thekkumbhagam -Vizhinjam, among children, The area. Thiruvananthapuram women, elderly, and the differently-abled. Support for a computer lab and Cl. (ii) promoting Cl(4) Quality 200 15 a smart class room at Pandit education, Education Children of Karuppan Memorial Library including special the area & Reading Room at , education Cochin Support for centenary memorial Cl. (ii) Promoting Cl(4) Quality 1000 School 30 skill development block at SMV education Education Children Higher Secondary School, Poonjar, Kottayam District Support for a new school bus to Cl. (ii) promoting Cl(4) Quality 50 Special 16.62 Snehabhavan Special School for education, Education Children the Mentally Challenged, including special Ettumanoor, Kottayam education District.

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Support for vehicle and other Cl. (ii) promoting Cl(4) Quality 40 special 12 equipment for Mridulasparsham education, Education children a special school for differently including special abled persons at education Thripunithura Support for an Cl. (iii) Setting up Cl(3) Good 300 Inmates/ 12 ambulance to Ashraya old-age homes, health and well patients Charitable Society, daycare centres being Kalayapuram, Kollam and such other facilities for senior citizens Assistance for Cl. (ii) promoting Cl(4) Quality 3000 School 10 Vidyaposhanam - education Education Children Poshakasamrdham Project (Mid-Day Meals for Students Support for All Kerala Cl. (v) protection Cl.(11) 6000 12 Children’s Fest 2017 of national Sustainable Children heritage, art and Cities and culture Communities

Apart from the above mentioned major projects, CSL also initiated many minor projects which impact the socio-economic and ecological development of the community in which it exists. From the table mentioned above, it is very evident that the CSR activities undertaken by the Cochin Shipyard Ltd are contributing to the sustainable development goals introduced from 2016 January onwards. Cochin Shipyard Ltd plays a significant role in contributing towards the sustainable development of Kochi, the industrial capital of Kerala through its CSR activities. The New mandatory CSR rule is a very significant step taken by the government of India to accomplish the sustainable development goals by 2030. Discussions and Conclusions The study analyses the CSR practices and strategies of the Cochin Shipyard Ltd in implementing CSR under the new Companies Act 2013. The Cochin Shipyard Ltd started its Corporate Social Responsibility activities in the year 2010-11 as per the guidelines issued by the Department of Public Sector Enterprises(DPE). One of the most important objectives of the company is to build a ‘responsible corporate citizen image’ through CSR and sustainability projects. After the enactment of companies Act 2013, the company re-framed its courses of action by merging CSR Committee and sustainable development committee to decide the matters relating to CSR activities under new guidelines. Cochin Shipyard Ltd steered its CSR activities under four headings, i.e., Health, Education, Community development and Swachh Bharat. Table 2 discloses that the Cochin Shipyard Ltd initiated 276 CSR projects for the socio-economic and ecological development of the society from the year 2010-11 onwards which exhibits the commitment of the company towards the society. The volume of CSR projects had substantially increased during the last two years (2016-2018) which can be inferred as the positive outcome of mandatory CSR rule 2014. The study reveals that the Cochin Shipyard Ltd undertake various CSR domains based on its annual priority sets in every year. In 2017-18, the major portion of the CSR budget is allocated for Education Projects and Swachh Bharat Projects as is evidenced from Figure 1, while in 2016-17, the major portion of the CSR budget is allocated to healthcare projects, the education projects and Swachh Bharat Projects as shown in Figure 2. In 2015-16, the major portion of the CSR budget is allocated to healthcare projects and the education projects (Figure 3). In short, the major focus of CSR activities for the last three years includes health, education and Swachh Bharat.

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Environmental sustainability, a key component of sustainable development, is side-lined or lost importance when it comes to CSR fund allocation. Since Cochin Shipyard Ltd falls under manufacturing segment, it could involve more on environmental sustainability projects which is related to their core business activity and such CSR activities can rightly be called as strategic CSR (Porter and Krammer 2006). On the other hand, Table1 indicates that the company is spending more than what is required by law under new CSR rule, which shows its commitment towards the government and the society. Therefore we may say that there is a discrepancy in their selection of CSR projects which demands further discussions. However, from table 4, it can be inferred that CSL is directly engaged in fulfilling sustainability development goals established by the United Nations in 2016. Invariably, we shall derive that the CSL is committed to the socio-economic-ecological causes, in other words, sustainable development goals (SDGs 2030), in the light of CSR activities undertaken by Cochin Shipyard Ltd in last six years. It is concluded that Cochin Shipyard Ltd plays a key role in contributing towards the sustainable development of Kochi, the industrial capital of Kerala through its CSR activities.

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Hamann, R. (2003). Mining companies’ role in sustainable development: The “why” and “how” of corporate social responsibility from a business perspective. Development Southern Africa, 20(2), 237–254. https://doi.org/10.1080/03768350302957. Hidayati, N. D. (2011). Pattern of corporate social responsibility programs: A case study. Social Responsibility Journal, 7(1), 104–117. https://doi.org/10.1108/17471111111114576. Moon, J. (2007). Responsibility to Sustainable Development. Sustainable Development, 306(5), 296–306. https://doi.org/10.1002/sd.346. NITI Aayog. (2018). SDG India Index : Baseline Report. Porter, M. E., & Kramer, M. (2006). Strategy and society: the link between competitive advantage and corporate social responsibility. Harvard Business Review, 78-92. UNDP. (n.d.). Background of the Sustainable Development Goals. Retrieved from United Nations Development Programme Website: http://www.undp.org/content/undp/en/home/sustainable-development- goals/background.html United Nations. (n.d.). Sustainable development goals. Retrieved from United Nations: https://www.un.org/sustainabledevelopment/sustainable-development-goals/ United Nations. (n.d.). End Poverty : Millenium Development Goals and beyond 2015. Retrieved from United Nations: http://www.un.org/millenniumgoals/ United Nations. (n.d.). United Nations in India. Retrieved from United Nations: http://in.one.un.org/page/sustainable-development-goals/ Welcome to Cochin Shipyard Ltd: ISO 9001 Certified. (n.d.). Retrieved from Cochin Shipyard Ltd: https://www.cochinshipyard.com/coporate.htm World Commission on Environment and Development (WCED): 1987, Our Common Future (Oxford University Press, Oxford).

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