Corporate Social Responsibility POLICY DOCUMENT
ABSTRACT: The document outlines the Vision and Policy of Emerson Electric Company in India, towards Corporate Social Responsibility in accordance with Section 135 of the Companies Act 2013 and the Rules thereunder.
Date: 17.10.2015
EMERSON CORPORATE SOCIAL RESPONSIBILITY POLICY
INTRODUCTION & BACKGROUND
Emerson, based in St. Louis, Missouri (USA), is a global manufacturing company that brings technology and engineering together to provide innovative solutions for customers in industrial, commercial, and consumer markets around the world. In the 1950s, Emerson’s product offerings of that time, such as motors, drives and fans, began to be made available in India to support the country's first steps towards industrialization and economic growth. The company first entered India directly in 1980s through joint-venture relationships with several Indian-owned companies as a means to continue growing its business. Emerson has been investing significantly in India ever since the 1990s. In more recent years, Emerson has fully acquired several of these joint ventures and integrated these companies into its existing business platforms. Today, Emerson has a robust and growing presence in India.
EMERSON BRAND PROMISE
Emerson is where technology and engineering come together to create solutions for the benefit of its customers, driven without compromise for a world in action. As a company Emerson strives to create long-term value for its shareholders, customers, and employees through constantly seeking excellence and a disciplined management process, which together drive sustained competitive advantage in a dynamic global market. Emerson’s commitment to shareholders is manifested by a well-managed, results-oriented approach to business and corporate governance. The company’s values are deeply rooted within its corporate culture and reflect an internally disciplined character and high ethical standards. Emerson constantly strives to be better partners with their customers and to be more connected, forwardlooking, and customer-focused than its competitors.
EMERSON CORPORATE SOCIAL RESPONSIBILITY (CSR) PHILOSOPHY
Emerson in India has recently extended its brand promise and corporate vision to its Corporate Social Responsibility (CSR) philosophy in India. Emerson has defined how the company can contribute to creating long-term value for social and economic progress in India. Emerson’s commitment to India’s development is a CSR philosophy that seeks to create equal opportunity, is non-parochial in nature and is focused on the underprivileged section of society.
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EMERSON CORPORATE SOCIAL RESPONSIBILITY POLICY EMERSON CSR OBJECTIVE:
The objective of Emerson’s CSR philosophy in India is centered in ‘Making a Difference’ through the philanthropic initiatives the company undertakes. Emerson will constantly strive to be a more socially responsible company that creates forward-looking, far reaching and enduring impact on the society. CONSTITUTION OF CSR COMMITTEE
Keeping in line with section 135 of the Companies Act, 2013, the Board of Directors should form a CSR Committee headed by an independent director, to carry out the following functions among other things: 1. To formulate and recommend to the Board, a Corporate Social Responsibility Policy indicating activities to be undertaken specified in the prescribed schedule. 2. To recommend the amount of expenditure to be incurred on the activities referred to in clause (1). 3. To monitor the Corporate Social Responsibility from time to time. Emerson CSR Committee comprises of representations from Emerson India Corporate and its other legal entities (Attached as Annexure I): CSR APPLICABILITY
1. Emerson CSR Policy has been developed in consonance to Section 135 of the Companies Act 2013 on CSR in accordance with CSR rules notified by the Ministry of Corporate Affairs, Government of India in 2014. 2. The Policy shall apply to all CSR projects/programme undertaken by the Company in India as per Schedule VII of the Act. 3. The Policy shall be applicable to Emerson Electric Company India Pvt Ltd. Including all Emerson legal entities in India, and all their employees. (Attached as Annexure II): CSR BUDGET
1. CSR Budget shall be as per the contribution calculated as per the provisions of the Companies Act, 2013 and the notified rules. 2. Emerson CSR Committee will recommend the annual budgeted expenditure project/NGO wise to the Board for its consideration and approval. 3. The surplus arising out of the CSR projects or programs or activities does not form part of the business profit of a company
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EMERSON CORPORATE SOCIAL RESPONSIBILITY POLICY CSR FRAMEWORK
In keeping with the Emerson culture, the CSR framework has been developed via an inclusive and democratic process engaging all Emerson legal entities in India. Post forming a CSR Committee, comprised of nominees from various Emerson entities along with the corporate team, an Emerson CSR framework was developed that defines the focus areas and key operating principles. The Emerson CSR Committee further worked with external CSR experts to define boundaries as well as fit of individual initiatives and create a common understanding and vocabulary across group companies from onset. The CSR Committee oversees and governs all CSR activities for Emerson in India. The purpose behind bringing all the Emerson entities in India together and consolidating funds for a ‘One-Emerson’ CSR program is to ensure that all initiatives reach the scale that India offers, are sustainable in nature and truly make a difference. Emerson as an organization, through its products and solutions, business processes and community involvement, believes in continually striving towards making the world a better place to live in. CSR FOCUS AREAS
Education is viewed as the single most important factor that can improve the lives of future generations. Studies indicate that Indians are most optimistic about their future with each family firmly believing their child’s life will be better than theirs therefore demonstrating a strong willingness to invest in it to make it happen. However, the real scenario of Indian education tells a different story. The United Nations Development Programme ranks India pretty low in the education index which is the ratio of mean years of schooling to the expected years of schooling. A high national dropout rate at elementary level in government schools and reluctance to educate girls and children from marginalized communities have added on to the illetracy rate in the country. Emerson is committed to helping tackle this issue of national urgency through its CSR focus on education that prioritizes programs that specifically target women and girls, underprivileged communities, and/or communities living in rural India. The Emerson CSR Committee has agreed that the core of the company’s CSR focus will be Education, in order to create a sustainable impact on the lives of millions of young Indians, enabling them access to equal opportunities to achieve their full potential. As an organization, committed to deliver solutions, Emerson plans to work with communities and partners to deliver better outcomes in education, by: 1. Looking for more effective and innovative ways to retain students in the education system for longer. 2. Ensuring better quality inputs that lead to tangible outcomes. Page 3 of 6
EMERSON CORPORATE SOCIAL RESPONSIBILITY POLICY SELECTION CRITERIA FOR CSR PROJECTS
In order to begin to address some of India’s education challenges, Emerson works with carefully selected Non-Governmental Organizations (NGO) partners to implement our CSR vision. Through the parameters defined below, the CSR framework prioritizes the type of investments and pipeline projects with partner NGOs that the company can commit to support in providing India’s youth a platform to tap into their full potential. The Emerson CSR Committee has agreed on the following criteria to guide its CSR investment decisions: 1. Potential for making a difference: Support programs and organizations that have the ability to make the maximum tangible impact on end beneficiaries. 2. Ease of management: Select well-managed programs that have a proven model and realistic implementation plan. 3. Scalable: A key criteria to promote is scalability. The model should be inherently scalable for impact to be far reaching and beneficial at a larger scale. 4. Possibility of multiple interventions: Seek out to programs that are adaptable and will allow modification and growth to be relevant in a dynamic changing environment. 5. Ease of monitoring: Supporting tangible outcomes to constantly improve monitoring, reporting and learning what works and what doesn’t, thereby constantly pushing the benchmarks on outcome based interventions. 6. Clear definition of end-recipients: In keeping with Emerson’s endeavor to work with the underprivileged, only those programs will be selected that have a clear definition of the end beneficiary and a clear goal in sight for improving their lives. 7. Sustainable: Communities know best what they need, therefore investing in programs that work with communities to create self- sustaining frameworks that understand community needs and work on them. 8. Ethical and fair practices: Engage only with partners who conduct rigorous diligence, and practices Emerson’s values of being religion/ caste/ creed neutral and apolitical.
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EMERSON CORPORATE SOCIAL RESPONSIBILITY POLICY CSR PROCESS; MONITORING AND REPORTING FRAMEWORK
The Emerson CSR committee has a defined process flow for evaluating funding for any CSR initiative as shown in the above diagram. The CSR committee will also be responsible for periodic reporting and communication to all the Emerson stakeholders – internal as well as external. Emerson’s CSR Committee, along with its external consulting partner, shall monitor the implementation through periodic reviews of the activities of selected NGOs. In compliance with the Act and to validate and ensure the CSR funds are creating the desired impact on the ground, a proper reporting mechanism will be followed under two broad heads of Program Monitoring, Evaluation and Reporting & Documentation. Further, any or all provisions of the CSR Policy are subject to revision/ amendment by the Board of Directors of the Company based on the recommendations of the CSR Committee or else in accordance with the guidelines on the subject as may be issued, from time to time.
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EMERSON CORPORATE SOCIAL RESPONSIBILITY POLICY
Annexures: I: Emerson CSR Committee in India 1. 2. 3. 4. 5. 6. 7. 8.
Mr. Pradipta Sen, President India, Middle East & Africa Mr. Balbir Singh, Vice President India Ms. Kanika Vaish, Associate Director- Corporate HR Mr. Shiva Dhar, Assistant Director- Planning & Business Development Mr. Laxmikant Iyengar , General Counsel –Emerson India Mr. Aniruddha Khekale, Group Director- Human Resources, Emerson Process Management Mr. Vineet Duggal, Company Secretary & Director- Legal, Emerson Climate Technologies Ms. Anurupa Banerjee, Strategic Planner, Corporate India
II: Emerson-Owned Companies in India 1. ASCO Numatics (India) Private Limited 2. Control Techniques India Private Limited 3. Daniel Measurement Solutions India Private Limited 4. Emerson Climate Technologies Private Limited 5. Emerson Electric Company India Private Limited 6. Emerson Process Management Power & Water Solutions India Private Limited 7. Emerson Process Management India Private Limited 8. Emerson Process Management Chennai Private Limited 9. Emerson Industrial Automation and Power Generation India Private Limited 10. Emerson Network Power India Private Limited 11. Virgo Valves India Private Limited
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