CSR and Outsourcing Industry

Description
CSR and Outsourcing Industry

CORPORATE SOCIAL RESPONSIBILITY IN OUTSOURCING INDUSTRY
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AGENDA
Industry Overview

Case Study

CSR in Outsourcing Sector

CSR Initiatives

Social Issues

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OUTSOURCING

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Definition
Outsourcing defined as the “Transfer of Control” of day-to-day business processes that could have been performed in-house by an organisation to an external service provider.

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OUTSOURCING SECTOR

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REASONS FOR OUTSOURCING

Without Outsourcing

With Outsourcing

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OUTSOURCING IN INDIA
Reasons for India being a Preferred Destination

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OUTSOURCING IN INDIA
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Outsourcing contributes to around 7% of GDP and 33% of foreign investments made in India. Outsourcing accounts for 12% of total employment in the organized private sector.

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TYPES OF OUTSOURCING

BPO

KPO LPO

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Manufacturing R&D

ACTIVITIES OF BPO

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IMPORTANCE OF CSR IN OUTSOURCING
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CSR considers the interest of the society by taking responsibility for the impact of industry activities on all the stakeholders. Outsourcing being one of the major factors of the Indian growth engine has major implications not only on the economy but also on the social aspects of the nation.

Labour Shortage

Need of CSR in Outsourcing
Sustain ability Employee Retention

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Shareholder

CSR INITIATIVES

Customer

Supplier

Employee

Company

Society

The goal of the company in decision-making should not be based only on what increases the value to the shareholders. Any major decision, the company should account for interests of all the stakeholders namely
•the •the •the •the

suppliers/vendors employees customers/clients society as a whole
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which are affected by the business.

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IMPACT ON CUSTOMERS/CLIENTS
Data Security

Association Initiatives

External Auditing

Customer

International Standards

Reporting Initiative

Proactive Compliance

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IMPACT ON EMPLOYEES

Diversity

Employment
Disabled Women

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WORKPLACE INITIATIVES
Skill Development

Security

Career Growth

Workplace

Work Environment

Employee Rights

Other welfare programs

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IMPACT ON SUPPLIERS - INITIATIVES
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Best Practices
T = Total A = Asia / Pacific B = Sub-Saharan Africa C = Latin America D = Middle East E = Developed economies F = Transition economies.

CHILD LABOUR FIGURES (millions)

• Wal-Mart • Nike

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IMPACT ON COMMUNITY
Education

Environment

Health

Community

Rural Development and Livelihood

Other community initiatives

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SOCIAL ISSUES OF OUTSOURCING INDUSTRY
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Employee Safety Safety for women Racial Abuse Attrition and Layoffs

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Data Security and Information Management
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SOCIAL ISSUES OF OUTSOURCING INDUSTRY
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Work-Life Balance & Stress E-Waste Issues in the outsourced country Clinical Trials

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Issues in Manufacturing
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CASE STUDY
HEWLETT PACKARD BPO
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Commenced India operations in 2003 Employs more than 6500 people Offices in Bangalore and Chennai Business Focus : From transaction processes to high value analytical processes

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EMPLOYEE AND WORKPLACE INITIATIVES
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Employment of women : higher than industry average

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Sensitizing employees to BPO work culture

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„Learning One’

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LEAP (Leadership Advancement Programme)

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Healthy Work like balance

HEARTS – A REASON TO SMILE
Parikrama Humanity Foundation

HelpAge India

Akshara Foundation

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Murder shocks BPO City
17 Dec 2005, 0008 hrs IST,TNN

Newlywed staffer’s killer worked as firm’s pick-up, drop-off driver: police The victim has been identified as Prathibha Srikanth Murthy (24), employed by Hewlett Packard (HP) Global Delivery Application Services in Electronic City.
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The Factories Act,1948 amended on March,2005 to allow women to work from 10 pm to 6 am Most tier 1 BPO companies already had safety rules since 2005 HP accused for allegedly showing neglect despite the driver informing the BPO of a possible threat Companies reluctant to acquire or maintain vehicles or appoint their own drivers as it is not part of their “core competence” Is the state responsible? “You can’t stop women from working at night because of such an incident. If a lady gets molested in a bus, would you stop women from travelling in a bus?”23

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IS THE PROBLEM SOLVED?
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Murder of Jyotikumari Choudhary – a Wipro BPO employee in Pune in November 2007.

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Prosecution of Som Mittal by Supreme Court in February 2008
Nasscom formulated a Companies Code of conduct in March 2008

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Wipro , Zensar, WNS, KPIT Cummins, Mphasis and Ocean Connect agreed to implement the code of conduct
BPO companies have not acknowledged some of the suggestions made by the police Failure of implementation, not of rules
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LEARNING
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Innovative Initiatives

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Intent is present implementation is lacking

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Common Focus is missing

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Will CSR be the Scapegoat?

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THANK YOU
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REFERENCES
ARTICLES ? Outlook: Frenzy by Night ? Times of India: Murder Shocks BPO City ? The Globe: New York Firm Takes on India ? The Hindu: LPO Action WEBSITES ? www.nasscom.in ? www.blog.investraction.com/search/label/Stocks ? www.finance.google.com ? www.voicendata.ciol.com ? www.downtoearth.org.in ? www.wikipedia.org ? www.outsourcing-manufacturing.com/future2003.html ? www.theinquirer.net/en/inquirer/news/2006/10/03 ? www.mphasis.com/aboutUs/community_services.asp ? http://www.answers.com/topic/outsourcing ? www.firstsource.com ? www.hp.com

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Special Thanks to Tejas M, Team Leader, Firstsource



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