Description
CSR and Outsourcing Industry
CORPORATE SOCIAL RESPONSIBILITY IN OUTSOURCING INDUSTRY
1
AGENDA
Industry Overview
Case Study
CSR in Outsourcing Sector
CSR Initiatives
Social Issues
2
OUTSOURCING
?
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.
3
OUTSOURCING SECTOR
4
REASONS FOR OUTSOURCING
Without Outsourcing
With Outsourcing
5
OUTSOURCING IN INDIA
Reasons for India being a Preferred Destination
6
OUTSOURCING IN INDIA
?
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.
?
7
TYPES OF OUTSOURCING
BPO
KPO LPO
8
Manufacturing R&D
ACTIVITIES OF BPO
9
IMPORTANCE OF CSR IN OUTSOURCING
?
?
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
10
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
11
which are affected by the business.
12
IMPACT ON CUSTOMERS/CLIENTS
Data Security
Association Initiatives
External Auditing
Customer
International Standards
Reporting Initiative
Proactive Compliance
13
IMPACT ON EMPLOYEES
Diversity
Employment
Disabled Women
14
WORKPLACE INITIATIVES
Skill Development
Security
Career Growth
Workplace
Work Environment
Employee Rights
Other welfare programs
15
IMPACT ON SUPPLIERS - INITIATIVES
?
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
16
IMPACT ON COMMUNITY
Education
Environment
Health
Community
Rural Development and Livelihood
Other community initiatives
17
SOCIAL ISSUES OF OUTSOURCING INDUSTRY
?
Employee Safety Safety for women Racial Abuse Attrition and Layoffs
?
?
?
?
Data Security and Information Management
18
SOCIAL ISSUES OF OUTSOURCING INDUSTRY
?
Work-Life Balance & Stress E-Waste Issues in the outsourced country Clinical Trials
?
?
?
?
Issues in Manufacturing
19
CASE STUDY
HEWLETT PACKARD BPO
?
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
?
?
?
20
EMPLOYEE AND WORKPLACE INITIATIVES
?
Employment of women : higher than industry average
?
Sensitizing employees to BPO work culture
?
„Learning One’
?
LEAP (Leadership Advancement Programme)
21
?
Healthy Work like balance
HEARTS – A REASON TO SMILE
Parikrama Humanity Foundation
HelpAge India
Akshara Foundation
22
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.
?
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
?
?
?
?
?
IS THE PROBLEM SOLVED?
?
Murder of Jyotikumari Choudhary – a Wipro BPO employee in Pune in November 2007.
?
?
Prosecution of Som Mittal by Supreme Court in February 2008
Nasscom formulated a Companies Code of conduct in March 2008
?
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
24
?
?
LEARNING
?
Innovative Initiatives
?
Intent is present implementation is lacking
?
Common Focus is missing
?
Will CSR be the Scapegoat?
25
THANK YOU
26
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
27
Special Thanks to Tejas M, Team Leader, Firstsource
doc_679686267.pdf
CSR and Outsourcing Industry
CORPORATE SOCIAL RESPONSIBILITY IN OUTSOURCING INDUSTRY
1
AGENDA
Industry Overview
Case Study
CSR in Outsourcing Sector
CSR Initiatives
Social Issues
2
OUTSOURCING
?
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.
3
OUTSOURCING SECTOR
4
REASONS FOR OUTSOURCING
Without Outsourcing
With Outsourcing
5
OUTSOURCING IN INDIA
Reasons for India being a Preferred Destination
6
OUTSOURCING IN INDIA
?
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.
?
7
TYPES OF OUTSOURCING
BPO
KPO LPO
8
Manufacturing R&D
ACTIVITIES OF BPO
9
IMPORTANCE OF CSR IN OUTSOURCING
?
?
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
10
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
11
which are affected by the business.
12
IMPACT ON CUSTOMERS/CLIENTS
Data Security
Association Initiatives
External Auditing
Customer
International Standards
Reporting Initiative
Proactive Compliance
13
IMPACT ON EMPLOYEES
Diversity
Employment
Disabled Women
14
WORKPLACE INITIATIVES
Skill Development
Security
Career Growth
Workplace
Work Environment
Employee Rights
Other welfare programs
15
IMPACT ON SUPPLIERS - INITIATIVES
?
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
16
IMPACT ON COMMUNITY
Education
Environment
Health
Community
Rural Development and Livelihood
Other community initiatives
17
SOCIAL ISSUES OF OUTSOURCING INDUSTRY
?
Employee Safety Safety for women Racial Abuse Attrition and Layoffs
?
?
?
?
Data Security and Information Management
18
SOCIAL ISSUES OF OUTSOURCING INDUSTRY
?
Work-Life Balance & Stress E-Waste Issues in the outsourced country Clinical Trials
?
?
?
?
Issues in Manufacturing
19
CASE STUDY
HEWLETT PACKARD BPO
?
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
?
?
?
20
EMPLOYEE AND WORKPLACE INITIATIVES
?
Employment of women : higher than industry average
?
Sensitizing employees to BPO work culture
?
„Learning One’
?
LEAP (Leadership Advancement Programme)
21
?
Healthy Work like balance
HEARTS – A REASON TO SMILE
Parikrama Humanity Foundation
HelpAge India
Akshara Foundation
22
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.
?
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
?
?
?
?
?
IS THE PROBLEM SOLVED?
?
Murder of Jyotikumari Choudhary – a Wipro BPO employee in Pune in November 2007.
?
?
Prosecution of Som Mittal by Supreme Court in February 2008
Nasscom formulated a Companies Code of conduct in March 2008
?
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
24
?
?
LEARNING
?
Innovative Initiatives
?
Intent is present implementation is lacking
?
Common Focus is missing
?
Will CSR be the Scapegoat?
25
THANK YOU
26
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
27
Special Thanks to Tejas M, Team Leader, Firstsource
doc_679686267.pdf