Corporate Social Responsibility

Corporate Social Responsibility Vision, plan and commitment Meera Mishra, April 29, 2011

What is CSR? • It is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on communities. • This extends beyond the statutory obligation to comply with legislation. • It is a part of Business Ethics and commitment to “give back” to society

The evolution of CSR We are getting here Good corporate citizenship Investment in social development as part of the Business plan Strategic Community investment Strategic giving linked to business interest Philanthropy Passive donations to charities Pure self interest Corporate profit

Levels of Social responsibility Grant making Nation Building Sanitation, education, environment Immediate Community development School for staff children, sanitation in staff colonies etc. Welfare of staff families Staff welfare Occupational safety

AAI’s commitment to CSR is aligned to • AAI’s vision: “to be a world-class organization…” • Mission “to achieve highest standards of safety and quality…contributing to economic growth and prosperity of the nation” • Guidelines on CSR for Central Public Sector Enterprises issued by the Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises dated 9th April, 2010

Our CSR vision • AAI aims to achieve, consolidate and strengthen Good Corporate Governance including • socially and environmentally responsible business practices • that balance financial profit with social well being.

Assumptions • AAI acknowledges that there are or can be expected and unintended outcomes and impact of its core business which is to build and operationalise airports. • While the overall outcome of its work is a positive contribution to the economy and society at large, some of the impact could be negative. • Given the nature of its work the primary impact is on the environment and communities in the immediate vicinity of the airports.

Geographic focus • the immediate surroundings of new or existing airports which are most affected by the airports • the district, town or city as a whole where the airport is located • the country as whole for dealing with emergency situations and achieving higher national goals including the MDGs and UN Global Compact Programme on Environment.

Programme focus • Comprehensive and integrated community development focusing on but not limited to communities most directly impacted by and in the vicinity of airports. • Innovative and sustainable solutions for environmental conservation. • Prioritisation and all round integration of environmental and social issues into the planning, designing and implementation of infrastructure development. • Improved access to formal, informal and vocational education with a focus on the under privileged and marginalized communities. • Contribution to national and local efforts for relief / rehabilitation in times of natural disasters on a needs basis. • Development and promotion of sporting talent. • Ongoing promotion of healthy and safe workplaces and well being of employees, their families and contractual workers. • Active participation in disaster management initiatives for prevention and emergency response based on the comparative strength of the AAI.

Activities: sample • Integrated community development: projects to address the needs of those most affected by new airports including • potable drinking water through dug wells, handpumps etc. • rain water harvesting • sanitation • electricity using environment friendly technologies such as solar energy • skill development for livelihood and income generation • improve health situation of the communities • adopt villages for all round development • Environment: • awareness about environment conservation • waste management. • paper recycling unit to minimize paper waste and environmental damage • green belts around the airport where feasible. • promote social forestry and afforestation and greening of AAI colonies • projects for energy conservation, pollution reduction and environment protection such as use of solar energy, smokeless cookstoves etc.

Activities …cont • Education • Schools for formal education. • Educational institutions, vocational training institutes, centres for non-formal education etc. Eg. grants/ assistance to schools in rural/urban slum areas for necessary infrastructure. • Scholarships/ financial support to children of employees or affected communities who have demonstrated extra-ordinary talent in academics or other skills. • Free education for underprivileged children through existing educational systems. • Study materials to children from the poor, and underprivileged sections. • Disaster Management • Integrate disaster preparedness and related capacity building into community development plans • Contribute towards local and national efforts for disaster mitigation • Participate in government’s rescue operations utilizing the network of airports

Activities …cont • Health • Strengthen health systems with a focus on women, children and disabled persons. • Facilities (such as mobile clinics) directly or in partnership with other PSUs, corporates, government schemes etc. • Health check up camps, awareness camps, eye camps etc to raise awareness and provide outreach services for locally relevant health issues such as TB, HIV/AIDS, leprosy, cataract etc. • In partnership with other private and government providers respond to national health priorities. • Projects that address priority local needs such as drug use, alcoholism, • Design, produce and distribute relevant health related public information materials and films to propagate important messages to a large audience. • Others • Identify young talent in various sports and games and support them to achieve their full potential. • Sponsor sporting events in rural/semi urban areas to develop a sporting culture in the country • Sponsor deserving candidates for coaching and training to strengthen their sporting skills. • Respond promptly to any natural calamity and contribute to local and national rehabilitation process • Empower families of staff and encourage their participation in CSR initiatives • Sensitization programmes, lectures, workshops etc to ensure a healthy work environment • Crèches for children of staff and contractual labourers.

Proposed strategies • Build on AAI core strengths and comparative advantage • Take ownership to minimize/ address unavoidable and unintended damage • Develop customized and needs based programmes • Emphasize sustainability • Engage in-house facility for co-ordinating roll out of CSR activities • Maximize outcomes through strategic partnerships. • Mainstream CSR into the core business plan of AAI

Planning, implementing , reporting cycles Comments/ feedback and suggestions from CSR Advisor APD/RED/ others identify CSR opportunity Inform Nodal Officer, CSR Committee Implementation, Oversight Report to CHQ CSR Committee seeks approval of Member (Ops)/ Chairman Funds allocated, implementing orgs identified Decision/ Approved Plan& budget sent to APD/RED

Institutional set up • CSR opportunities will be identified by REDs, APDs and other concerned staff • Activities will be implemented by Specialist Agencies, NGOs, others. • Staff annual appraisal will include CSR initiatives undertaken • AAI has assigned core staff at the national level for co-ordination

Considerations for identifying CSR initiatives • Should be in the identified priority areas of AAI. • Assistance will be project based with clear outcomes, NOT donations • Predefined time frames and milestones. • Projects identified based on evidence and needs assessment. • Participatory processes engaging communities for planning projects. • Others: • Where needed suggestions will be sought from Kalyanmayee • Experts may be hired by AAI for technical oversight, monitoring, quality assurance, training etc. • External experts/ organizations may be engaged for an independent assessment of the impact of the AAI’s CSR activities.

Oversight mechanism • CHQ CSR Committee (reporting to ED Ops): • To prepare Annual plans; • Follow up on financial and programme targets; • Approve CSR projects; • Facilitate NGO selection; • Co-ordinate periodic monitoring and evaluation visits; • Provide feedback to the implementing organisations and • Report to the Board on progress on a quarterly basis • Regional Supervisory Committee chaired by RED • To follow up on CSR targets in the region; • Include CSR in the agenda of Regional meetings of APDs; • Ensure compliance to the recommendations of the CSR Committee ; • Request for technical assistance as appropriate; • Provide quarterly update from the region to the CSR Committee • Airport level local co-ordination Committee chaired by APD • To identify local opportunities for CSR; • Facilitate formulation of projects and identification of implementing organisations; • Regularly monitor the progress of CSR projects; • Follow up on targets; • Ensure compliance to the recommendations of the CSR Committee; • Send MIS report to regional and national level on a monthly basis. Where needed seek the support of Kalyanmayee

Fund allocation • A total allocation of upto a maximum of 2 % of the profit after tax will be earmarked every year for implementation of CSR. • The amount shall be transferred to a newly created Non-lapsable Fund of AAI. • Funds will be transferred to the account of those organizations contracted for implementation. • Unspent money will be carried forward and included in next year plan.

Let’s stop saying, something must be done And start saying, I must do something

Thank You

Corporate Social Responsibility