Transformational Leadership for Sustainability

9th NATIONAL CONVENTION
TRANSFORMATIONAL
LEADERSHIP
WAYS TO SUSTAINABILITY AND SUCCESS

1. Welcome Remarks by Sudhir Vasudeva, President, Global
Compact Network India and Chairman & Managing
Director, Oil & Natural Gas Corporation Limited
2. Setting the Agenda by Georg Kell, Executive Director,
United Nations Global Compact, New York
3. Inaugural address by Dr. M Veerappa Moily, Union Cabinet
Minister, Ministry of Petroleum & Minister Environment &
Forests (Additional Charge)
4. Vote of Thanks by Dr. Uddesh Kohli, Senior Adviser, United
Nations Global Compact, New York
5. Introduction to the “UN Global Compact – Accenture CEO
Study on Sustainability 2013: Insights from CEOs in the
Global Compact Network India” by Peter Lacy, Managing
Director- Strategy and Sustainability - Asia Pacific,
Accenture
6. CEOs Roundtable on Transformational Leadership: Ways
to Sustainability and Success
7. Session I on Embedding Sustainability in Business Strategy
to drive Transformation
8. Session II on Leveraging the 2% CSR bill to Transform
India’s Social Agenda
9. Session III on Leveraging the Public–Private Partnership
(PPP) to enable Transformation in the Social and
Environmental space
10. Summary by Dr. Serge Younes, Director – Sustainability
Service, Accenture
11. Closing Remarks by Pooran Chandra Pandey, Executive
Director, Global Compact Network India
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Table of Content
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The 9th National Convention of Global Compact Network India (GCNI), held at ITC Maurya, New Delhi on 14th
February 2014, saw the launch of The UN Global Compact – Accenture CEO Study on Sustainability 2013: Insights
from the CEOs in the Global Compact Network India and Business for Peace (B4P) initiative. The convention that
marked ten years of GCNI was attended by business leaders and experts on sustainability. Based on the theme
of “Transformational Leadership: Ways to Sustainability and Success”, the convention had the Union Minister of
Petroleum, Dr.M. Veerappa Moily as the chief guest. The day-long convention saw animated discussions on the
challenges in fostering sustainability that led to constructive solutions being suggested. Here is a report on the
proceedings of the convention.
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Inaugural Session and the Launch of “UN Global Compact-Accenture CEO
Study on Sustainability 2013: Insights from CEOs in the Global Compact
Network India” and “Business for Peace (B4P) Initiative”
Welcome Address by Sudhir
Vasudeva, President, Global
Compact Network India, and
Chairman & Managing Director,
Oil & Natural Gas Corporation
Limited
In his welcome speech, Mr.
Vasudeva spoke about the ten-year
journey of United Nations Global
Compact (UNGC) Network India,
and the milestones it has achieved
since its inception in November 2003.
He talked about the first Annual
Convention held in April 2004, and
its evolution as a discussion platform
for various stakeholders on issues
that are topical and relevant to the
prevailing context.
During this past decade, Global
Compact Network has been the
voice of advocacy of UNGC’s Ten
Universal Principles that have found
traction amongst a community
of visionary business leaders.
Admittedly, this club is small
because translating commitment
to implementation is a steep
challenge that frequently involves
charting unmarked territory. Global
templates—though certainly useful
at a conceptual level—have to be
tempered with local imperatives and
re-designed to address prevailing
ground realities. This requires
doggedly staying the course for a
“hit-and-trial” iterative process to
play out. Senior management need
to give such initiatives time and
attention—arguably the biggest
investment, Mr. Vasudeva said.
The challenge these leaders face is
in making a business case for the
sustainability agenda that justifies
allocation of additional investment
and commitment of resources,
especially when competitors remain
blithely committed only to profits,
with people and planet being
relegated to the periphery of their
business model. He stated that such
inequity in a fiercely competitive
environment places great strain on
businesses and, therefore, expressed
his appreciation to the select band
of leaders who continue to lead the
sustainability agenda in the country.
Mercifully, the scenario is changing.
More business leaders are becoming
aware of the need to include the
sustainability agenda into their
corporate portfolio, supported
by initiatives of lawmakers in
promulgating enabling laws and
providing additional incentives
that help build a business case
for investment and commitment
of resources. We can thus stay
the course and work for a gradual
movement to evolve. However,
we do not enjoy the luxury of time
in view of the immediacy of the
emerging situation.
So what exactly is this situation
that defines our context? Musings
from Davos this year, where global
business leaders congregate every
year, are a good indicator. For the
first time since the global economic
crisis, business leaders focused on
long-term challenges rather than
short-term economic crises. The
leaders expressed deep anxiety
about the risk to future global
prosperity from high unemployment,
social tensions that have sparked
riots across geographies, widening
income disparity between the rich
and the poor and the destabilizing
effects of technological change.
Business leaders found income
disparity and unemployment being
particularly detrimental as they
could undermine future demand
for consumer goods and housing,
and lead governments to impose
tighter regulations on companies.
These two factors also lead to
social unrest, further dampening
business opportunity and consumer
sentiment.
The rich are becoming richer and
the poor are becoming poorer. An
Oxfam report on political capture

and income inequality, released in
January 2014, found that:
• Almost half of the world’s wealth is
now owned by just 1 percent of the
population.
• The wealth of the 1 percent richest
people in the world amounts to
$110 trillion. That is 65 times the
total wealth of the bottom half of the
world’s population.
• The bottom half of the world’s popu-lation
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owns the same as the richest
85 people in the world.
• Seven out of ten people live in coun-tries
where economic inequality has
increased in the past 30 years.
• The richest 1 percent increased
their share of income in 24 out of 26
countries on which Oxfam had data
between 1980 and 2012.
The report concludes, “This
massive concentration of economic
resources in the hands of fewer
people presents a significant threat
to inclusive political and economic
systems. Instead of moving forward
together, people are increasingly
separated by economic and political
power, inevitably heightening social
tensions and increasing the risk of
societal breakdown.”
The world is already alive with social
unrest. Rebellion and protests are
emerging as the biggest threat to
democratically elected governments.
Regrettably, powers that are yet
to accept this new-age phenomena,
still resort to excessive force
to quell what they perceive as
rebellion to their authority, with
increasingly diminishing returns.
Trust in government institutions
is running dangerously low and
a new renegotiated balance of
power between the rulers and the
ruled appears imminent. Societal
breakdown is a logical corollary if the
root issues fuelling this social unrest
are not addressed.
Referring to the findings of the
International Labour Organization’s
report released in January 2014, Mr.
Vasudeva warned that employment
is not expanding quickly enough to
keep pace with global population
growth, raising the prospect of a
jobless economic recovery.
The connect between technological
change and unemployment was
evident in the interest business
leaders at Davos showed in the
prospect of 3D printing technology
threatening to radically alter the
traditional manufacturing practices
and the entire logistics value chain
associated with it. Mainstreaming
of such radical technology and
advances in traditional automation
processes will inevitably lead to
higher unemployment.
It is this context that places business
leaders right in the middle of the
global sustainability agenda. The
relationship status that emerges from
the discussion above is “symbiotic”.
Mr. Vasudeva said that we would
not need to prepare business cases
for each sustainability initiative if risk
registers of companies accept that
these dimensions can completely
destabilize business models unless
addressed on priority. But this
will take time. In the meantime,
what is collectively agreed upon in
meetings such as at Davos will not
automatically migrate to a company’s
board rooms and impact its business
paradigm—at least in the short term.
Mr. Vasudeva stressed that until this
maturity is achieved and this thought
translates into collective wisdom
leading to concerted action, we will
need to rely on the “Transformational
Leadership” of visionary business
leaders who will drive the
sustainability agenda forward. He
also expressed his appreciation to
Accenture, the Knowledge Partner
of the 9th National Convention,
for defining seven elements that
constitute “Transformational
Leadership”, including:
• Realism and context: Understanding
the scale of the challenge and the
opportunity
• Growth and differentiation: Turning
sustainability into an advantage and
value creation
• Value and performance: What gets
measured, gets managed
• Technology and innovation: New
models for success
• Partnerships and collaboration: New
challenges, new solutions
• Engagement and dialogue: Broad-ening
the conversation
• Advocacy and leadership: Shaping
future systems
In his address, Mr. Vasudeva also
mentioned the UNGC-Accenture
CEO Study on Sustainability: Insights
of CEOs in the Global Compact
Network India and the Business for
Peace initiative of the United Nations
Global Compact in India that were
unveiled during the event by Dr.M.
Veerappa Moily.

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Setting the Agenda by
Georg Kell,
Executive Director, United
Nations Global Compact,
New York
Mr. Kell began his speech by
providing a historical perspective
of the UNGC’s journey. The Ten
Universal Principles, he said, are
not without challenges. There are
two dark clouds in their successful
implementation, according to him.
These include:
• Willingness of governments world-wide
to actively address these
issues do not keep pace with the
urgency of the situation; and
• The serious threat to sustainability
posed by global warming, among
other global issues.
Mr. Kell stressed the importance
of social engagement amongst
various stakeholders, environmental
responsibility and good governance
as the major steps that could ensure
successful implementation of
UNGC’s Ten Universal Principles.
He also spoke about the Business
for Peace Initiative, a concept laid
down by UN Secretary General Ban
Ki-moon, which calls for expansion
and deepening of private sector
action in support of peace—in the
workplace, marketplace and local
communities. It is an initiative that
assists companies in implementing
responsible business practices
aligned with UNGC’s Ten Universal
Principles in conflict-affected and
high-risk areas, and catalyze action
to advance peace.
Mr. Kell reiterated the need for
stepping up collaborative efforts to
make a difference. Good leadership,
he said, is in demand more than ever
before.
Inaugural address by
Dr. M. Veerappa Moily,
Union Minister of Petroleum, and
Minister of Environment & Forests
(additional charge), Government
of India
Dr. Moily congratulated GCNI on
its successful completion of 10
years, and commended the initiative
launched in 2000 by Kofi Annan
in New York to accelerate the
development process worldwide.
Talking about the Indian
government’s role in emphasising
corporate social responsibility (CSR)
in the new Companies Act legislated
in 2013, he stressed the necessity of
appropriate planning and corrective
strategy to achieve the Millennium
Development Goals by 2015.
Citing the example of Bangalore
(Silicon Valley), where he introduced
a common entrance test for building
inclusive society, he said the
economy needs to be transformed to
support job creation.
Dr. Moily said that at a recent
meeting in Mumbai, investors,
business analysts and financial
consultants were “cautiously
optimistic” about government
policies. Therefore, it was decided to
adopt certain measures to remove
the word “cautious”.
To achieve a balance between
business profitability and
sustainability, he said, one needs
transformational leadership and a
change in mindset. He highlighted
the importance of transformational
leadership for smooth business
operation and fostering collaboration
among the government, private
companies and civil society
organizations to overcome barriers to
sustainability.
Considering the challenges to
sustainability, he highlighted the
need to revisit legal provisions as the
current laws were not adequate.
Vote of Thanks by
Dr. Uddesh Kohli,
Senior Adviser, UNGC, New York
In his speech, Dr. Kohli thanked
the chief guest (Dr. Moily) and
Mr. Kell for sharing their thoughts
and valuable feedback. He then
enumerated the milestones achieved
by GCNI in its ten years of existence
and discussed its future course of
action with the audience.
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Introduction of “UN Global Compact–Accenture CEO Study on Sustainability
2013: Insights from CEOs in the Global Compact Network India”
Peter Lacy, Managing Director-
Strategy and Sustainability-Asia
Pacific, Accenture
Mr. Lacy in his presentation
revealed the key findings of UN
Global Compact-Accenture CEO
Study on Sustainability 2013
that covered 27 industries in 103
countries focussing on 100 in-depth
interviews of CEOs.
Over the past years, it has been
observed that businesses are
adopting responsible practices, and
managing risks and cost are key
to successful business operations.
The study deliberated on the issue
of public-private partnership for
sustainable development, generating
value for customers, speed and
scale of transformation, speed at
which sustainability is happening,
bringing multi-lateral institutions
and stakeholders together and
the importance of sustainability in
business.
According to the study, 64 percent
of the CEOs surveyed agreed
that customers play a key role in
driving sustainable businesses and
the market should be aligned to
sustainability. CEOs of developed
countries focus on climatic change
issues, whereas CEOs of developing
countries are more concerned with
education and health issues.
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Seventy six percent of CEOs
believe in sustainability. Most
of them stressed the need for
system transformation to promote
sustainability, and said it could be
achieved by reshaping the market
and changes in government policies.
In Asia, 32 CEOs were interviewed,
and among them 10 were from
India. Indian CEOs agreed that
Indian businesses are not doing
enough to promote sustainability.
While 94 percent CEOs believe
sustainability is important,41 percent
quantifies value of transformation
leadership. Ninety seven percent
CEOs sought the government’s
intervention through regulation,
subsidies and taxation to create an
enabling environment for businesses
to act on sustainability. However,
successful companies worldwide do
not wait for government intervention.
Leading Indian and global companies
are combining sustainability with
business performance.
The divide amongst the CEOs of
the developed and developing
economies was quite evident.
Developed economy CEOs
take for granted basic facilities
and pay less attention to it, while
developing economy CEOs are more
concerned about the challenges
associated with basic facilities.
In India, the role and opinion of
communities, besides investors
and the government, also affect
sustainability targets. Poverty is
considered to be the biggest barrier
to achieve sustainability. Indian
CEOs are struggling to quantify
the business value of sustainability
and may not see the advantages in
moving faster.
The report identified seven steps to
sustainability and success, including:
• Realism & Context- systematic un-derstanding
of challenges
• Growth & differentiation
• Value and performance
• Technology and innovation
• Partnership and collaboration
• Engagement & dialogue-build multi
stakeholder engagement
• Advocacy & leadership- open to
progressive partnership with Govt.
Hard and soft policy measures.

CEOs Round Table
Transformational Leadership: Ways to Sustainability and Success
Chair
Peter Lacy, Managing Director, Strategy and Sustainability - Asia Pacific,
Accenture
Panellists
R.P. Sasmal, Chairman, Vizag Transmission Limited and Director (Operations),
Power Grid Corporation of India Limited
Lalit Kumar Gupta, Managing Director & CEO, Essar Oil Limited
Richard B. Saldanha, Executive Director, The Blackstone Group
Dr. Ramesh Kapur, Chairman & Managing Director, Radisson Blu Hotel, Delhi
Kamal Meattle, CEO, Paharpur Business Centre
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Mr. Lacy began the discussion by
raising the challenges faced by the
hotel industry—a resource-intensive
industry that faces supply chain,
procurement and community issues.
From a transformational perspective
how does this industry manage the
trade-offs needed for sustainability?
Dr. Ramesh Kapur, Chairman &
Managing Director, Radisson Blu
Hotel Delhi
Dr. Kapur provided his perspective
as a hotelier and a civil engineer
having worked in the construction
industry since the 1960s. India has
changed from being a resource-rich
country catering to the needs of a
small population to a burgeoning one
with increasingly scant resources. An
individual hotel is an entity in itself,
an industry in itself. Technology has
helped in the transformation. Ability
to provide clean water, air, food and
comfort are relatively easy as these
are internal to the business. It is an
industry that is closely aligned to
the implications of climate change
and understands what it needs
to do to address sustainability,
by how it operates and serves its
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customers. It has and continues
to play an important role in local
community development through
local employment.
One cannot wait for regulations to
mature to implement sustainable
business practices. With changing
times, new and improved regulations
will be introduced—it is a constantly
evolving process. External factors
such as unorganized procurement
and vendor management are core
issues to mitigate and address the
agenda of sustainability.
The luxury hotel industry has a very
discerning, concerned and aware
consumer base—an international and
well-travelled clientele. Consumers,
both local and international, are
increasingly expressing their concern
practically and emotionally.
• The role of employees as one of the
key stakeholders
•
Richard Saldanha, Executive
Director, The Blackstone Group
Mr. Saldanha has over 47 years
of experience in a diverse set
of industries ranging from
Consumer
logistics, media
Package Goods,
and publication, transportation and
airlines, garments and agriculture in
several geographies across the
world. “I have never run a company
for profit but only for the creation of
value,” he said.
Long before the onset of CSR and
community development initiatives
in India, he ran a company in
Ghaziabad that had constructed
high fences around its factories.
Mr. Saldanha started to spend
time outside these walls with the
villagers and this resulted in building
trust among the local communities
towards the business, and,
importantly, helping the company
understand the purpose of value
creation.
Businesses and its leaders need to
feel a close connection with their
communities to foster sustainability
transformation. The order of priority
for businesses is first understanding
the purpose of the business,
followed by having the right set of
people, the right set of processes,
then the delivery of the promise,
and finally profit. This will ensure the
value creation through sustainability.
• The role of investors in sustainability
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•
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Lalit Kumar Gupta, Managing
Director & CEO, Essar Oil Limited
Investors are highly focused on
sustainability. Essar is a company in
the resources sector and processes
85 percent of India’s crude oil.
Investors looking at the impact on
environment are keenly tracking what
cost-saving sustainable solutions
and practices are being followed.
Essar’s power requirements alone
are 8-9 percent. They have set up
a coal-fired power plant using coal
of low calorific and sulphur content,
eliminating the need to clean up
sulphate emissions resulting in
savings of over $300 million. Essar
collaborated with other oil and
gas companies in their region of

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operation to lay a common pipeline.
This move has not only saved
money, but also created a sense
of responsibility among all vested
parties in maintaining the pipeline
and in creating a platform for
ensuring proper policy structuring.
Investors like innovation and
foresightedness. Coke is extracted
from diesel and petrol. Essar has
been using this coke in cement
manufacturing. If this was not done,
then India would have to import coal
worth $40 billion every year.
Investors today are looking for
companies which use innovative
technology and have the foresight
to adapt to market changes. Essar,
for instance, uses a far more efficient
technology for extracting coke for
making cement. The use of this
improved technology alone has
resulted in offsetting the need to
import coal in excess of $40 billion
per year.
Mr. Lacy alluded to a parallel study
that is being done by Accenture in
partnership with UNGC on the role of
investors in sustainability. India faces
a dilemma in combating climate
change, development and poverty
alleviation. It will be interesting to
hear views on how Essar is preparing
for the future.
• The role of a business leader in
sustainability
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•
Kamal Meattle, CEO, Paharpur
Business Centre
The key issue is awareness.
People are not aware of the issues
and consequences related to
sustainability. Mr. Meattle stressed
the fact that we have to think of ways
of advocacy. The government needs
to take the initiative, because civil
society cannot act on the required
scale.
Transformation leaders of
organizations and civil societies
have to come up with implementable
sustainable solutions that will result
in timely interventions. Mr. Meattle
pointed out that 52 percent of
Delhi’s power is used to pump water.
Nothing has been done to address
this. Neither has energy-efficient
water pumps been introduced nor
sustainable solutions such as rain
water harvesting been implemented
as has happened in Chennai since
2001. “If Chennai can be successful
in turning around its water crisis
then what is stopping Delhi in
implementing similar legislations?”
he asked. Mr. Meattle also cited
the Delhi government’s move to
cut tariffs, instead of promoting
sustainable solutions with provable
ROI such as distribution of CFL
lamps.
Mr. Lacy also underlined the policy
requirements on issues related to
water. Climate change is leading to
losses from fooding, rising levels of
sea water, increased frequency of
storms and hurricanes, and that has
brought about new risk premiums
being underwritten by insurance
companies. Free markets will play an
interim role in highlighting the true
cost of the impact resulting from
climate change, which in turn should
bring about awareness forcing or
accelerating needed regulatory
changes.
• Transformational leadership to fool-proof
the business for the future
R.P. Sasmal, Chairman, Vizag
Transmission Limited, and Director
(Operations), Power Grid Corporation
of India Limited
The power generation and
transmission business needs to think
of tomorrow and not today. Vizag
Transmission Limited (VTL) in one of
its reports has proven the feasibility
of installing 300,000 MW of solar
power by 2050 in the four deserts in
India. Additionally, it has proposed
a plan to address the power
shortage in Delhi using roof-top solar
installations, with half of the output
being used by customers and the
other half being sold to the grid.
Innovative solutions such as
smart grid and remote energy
monitoring and control through
mobile technologies are critical
to addressing sustainability
transformation, as is evident in
Pondicherry. VTL is also focusing
on smart use of existing assets to
enable other services—it has laid
over 25,000 km of optical fibre
lines running on top of existing
transmission lines to provide data
services.
Mr. Lacy pointed out that innovations
in digital technology, social media
and sensor-aware solutions will
increasingly be used to address a
sustainable transformation over the
next four to five years.

Key takeaways from the interactive
Q&A session:
• Raising awareness by leveraging
government agencies and media is
critical. Businesses will need to con-tinue
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to scale their current initiatives.
• The existing transformative solutions
and processes to tackle climate
change are not adequate. We need
more effective solutions and pro-mote
them to expedite implementa-tion
at scale.
• Successful solutions to problems,
such as the waste-to-energy con-version
in Bihar should be replicated.
• Businesses should be driven not just
by profits but also value creation and
sustainability; these should be equal-ly
important goals for businesses.
• A closed economy such as Bang-ladesh
will not be able to usher in
competition, which will in turn force
its business leaders to address
sustainability. Mr. Meattle pointed out
similar situation in India before the
1991reforms.
• Level 1 public sector bids current-ly
looks at only the cheapest and
technologically feasible solution
without addressing sustainability
parameters.
• Mr. Saldanha cautioned that though
everything that gets measured
gets managed, there is a danger in
organizations starting to manage
metrics instead of purpose. Only by
upholding human values can
business value be measured.
In his concluding remarks, Mr.
Lacy pointed out that adoption
of corporate governance has
increased since 2006 with CEOs
stating that board room decisions
on sustainability are now common.
It is important for stakeholders to
keep the CEOs honest and to ensure
they keep their promises as the
gaps between what is stated and
implemented are sometimes wide.
The idea of “inclusive growth” is
what needs to be propagated.

Thematic Session I
Embedding Sustainability in Business Strategy to drive Transformation
Chair
Pranjal Sharma, Adviser (Corporate Strategy), Prasar Bharati
Panelists
Beroz Gazdar, Senior Vice–President, Group Sustainability, Mahindra &
Mahindra Limited
Namita Vikas, Senior President & Country Head-Responsible Banking,
YES Bank Limited
Sudhir Kumar Sinha, Corporate Head, CSR, Cipla Limited
Anand Kumar (IPS), Executive Director, (R&R, CSR & Security) , NTPC Limited
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ㄱ

Pranjal Sharma, Adviser (Corporate
Strategy), Prasar Bharati
Mr. Sharma deliberated on the
challenges and opportunities faced
by organizations in embedding
sustainability into their core business
processes. The new Companies
Act (which requires companies to
spend 2 percent of their revenues
on CSR activities) has not only met
some resistance from the business,
but also raises concerns that now
companies might not care about
their internal processes. Instead of
blaming the government for its failure
to have the correct policy framework,
he asked what the forerunners of
corporate sustainability and CSR
champions are planning to do.
Beroz Gazdar, Vice-President, Group
Sustainability, Mahindra & Mahindra
Limited
Ms. Gazdar said embedding
sustainability in Mahindra & Mahindra
is a structured process. It needs
to be looked at by addressing
internal and external challenges. The
interpretation of sustainability is a
challenge as it means different things
to different people. It is like a huge
pot with multi-dimensional issues.
Embedding sustainability should
first begin with creating awareness
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in the organization. The CEO should
monitor sustainability on her or
his balance scorecard and drive
performance management down
the entire organization. Embedding
sustainability has been a challenge
and one should use impactful case
studies to depict its value to various
stakeholders for ownership.
The moderator deliberated on the
diversity of Mahindra’s business
being a significant challenge to
standardize on a templatized
approach to engage and create
awareness amongst its employees.
M&M does not negotiate on
compliance procedures, especially
those relating to environment and
supplier engagement. The middle
management—most of whom
are profit-driven—are the ones
who resist the implementation of
sustainability.
Namita Vikas, Senior President &
Country Head, Responsible Banking,
YES Bank Limited
Banks have a very influential role
to play in sustainability because
of their influential role in capital
markets. YES Bank has incorporated
sustainability in its core operations
as well as with its stakeholder
communities by focusing on these
five areas:
• Integrating environmental, social
and governance (ESG) concerns
into their lending decisions by going
beyond the mandated needs for
environmental compliance;
• Supporting innovative solutions for
creating positive social impact to
address the needs at the bottom of
the pyramid;
• Supporting investment in green
technology through its lending
practices to bring about adoption of
renewable energy;
• Building awareness and organizing
trainings; and
• Putting in place governance norms
to support sustainability.
Though customers are well
aware that they need to disclose
environmental and social data for
banks to make informed decisions,
there is a reluctance to do so beyond
a certain point.
Sudhir Kumar Sinha, Corporate
Head, CSR, Cipla Limited
Speaking about the Indian corporate
leaders’ hesitation in incorporating
sustainability in their core operations,
Mr. Sinha cited how Cipla in 2001
addressed the need for affordable
HIV medication, by bringing down its
cost from $15,000 to $350, thereby
making a significant contribution to
the society.
He echoed Mr. Saldanha’s argument
that businesses should seek to
go beyond profit and look for
purpose. When you connect your
products and services to address
poverty and health not only in the
local communities but in the global
market place, it makes businesses
sustainable.

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Besides addressing bottom line
costs, Cipla has reaped brand
and reputation benefits in its
efforts to embed sustainability
performance management across
its manufacturing units by getting
them ISO 14000 certified, enabling
transparency across its complex
supply chain from procurement to its
patients.
Anand Kumar (IPS), Executive
Director, (R&R, CSR & Security) ,
NTPC Limited
Emphasizing NTPC employees’
sense of responsibility to adhere
to sustainability initiatives, Mr.
Kumar stated that NTPC is in the
power business and it generates
power using coal and realises its
responsibility as a polluter. NTPC has
a robust and mature sustainability
and CSR policy which is governed
by its 19-member senior executive
team on environmental friendly
approaches in waste, water, energy
and emissions management. NTPC
takes community development
around its plants seriously by
adopting a bottom-up approach
Ms. Gazdar replied that Anand
Mahindra, CEO of Mahindra &
Mahindra, is completely sold on the
business case for sustainability. The
various business groups operate
autonomously with sponsorship
from the group. The responsibility
of execution lies with mid-level
managers. She said incorporating
sustainability within a company
is a process and should not be
looked at as a launch with an end
goal. Mahindra has successfully
demonstrated the benefits of joint
value creation—by incorporating the
needs of its consumers (farmers) in
its farm equipment manufacturing
business and by netting cost savings
through retrofits in buildings and then
scaling them throughout its facilities.
YES Bank has brought in innovation
through its back-end services
by incorporating and scaling the
existing business correspondents
and “kiranas” infrastructure, through
which the migrant labour force
remits money from cities back to the
villages. This has resulted in positive
social, economic and environmental
impact.
Key concluding remarks of the
discussion were:
• Human rights are being increasingly
incorporated into a company’s sup-ply
chain considerations.
• As India goes through rapid indus-trialization,
companies should go
beyond compliance to environmental
regulations and invest in innovation.
• Reporting to standard and emerging
standards such as GRI is needed to
benchmark and to maintain healthy
governance on sustainability.
• Floating a policy is easy, but its
effective implementation is difficult.
Business leadership should be ded-icated
to the implementation of the
rules and regulations.
through forums such as
Rehabilitation
and Periphery Development Advisory
Committee
and Village Development
Advisory Council which enables it to
understand the needs of the
community. Participating in the Q&A
that followed the session, Mr. Sharma
stated that most companies act on
sustainability because of their
commitment to responsibility, not for
building a convincing business case.

ㄴ14

ㄵ15

Session II
Leveraging the 2 percent CSR Bill to transform India’s social agenda
Chair
Bharat Wakhlu, Resident Director, Tata Services Limited
Panelists
Thomas Chandy, CEO, Save the Children, India
Deepak Arora, CEO, Essar Foundation
Lt. Gen. Rajender Singh, CEO, DLF Foundation
Vandana Chanana, General Manager, Corporate Communications & CSR,
GAIL (India) Limited
16
ㄶ

17
Bharat Wakhlu, Resident Director,
Tata Services Limited
Mr. Wakhlu observed that while the
new regulation stipulates companies
to spend 2 percent of their revenues
on CSR activities, most of the Indian
companies such as the TATAs and
Birlas have already been investing in
the betterment of the communities
and the environment for the last 90
years. He emphasized that the 2
percent law should be looked at in
the spirit of an add-on to the existing
set of CSR initiatives.
The panel deliberated on the
various levers that the bill in turn
will galvanize and how each of their
companies will look to leverage it.
Vandana Chanana, General Manager,
Corporate Communications & CSR,
GAIL (India) Limited
Ms. Chanana echoed Mr. Wakhlu’s
sentiment on the Companies Act
Section 135 being an add-on to
existing CSR activities. GAIL and
other public sector units in India
have been addressing the needs
of communities in the remotest
parts of India where private sector
companies are hesitant to go. CSR
was embedded in the way in which
PSUs operated and she believed
that was also the primary reason and
philosophy guiding the formation
of PSUs in India. The law presents
a huge opportunity for the private
sector to address the last mile
connectivity needs for rural India,
especially in the communities where
they operate. Besides addressing
poverty, education and skill
development through philanthropic
and structured CSR activities, it is
now time to start incorporating them
into the core of business operations
as well.
The new bill has made sustainability
and CSR a board room discussion
topic and occupies the minds of
strategists and heads of business
functions in organizations. The role
of CSR and sustainability is now
transitioning from the hands of a few
specialists to the entire organization.
Deepak Arora, CEO, Essar
Foundation
Mr. Arora stated that there will
now be a greater engagement
between the social sector and the
corporate sector, driven by desired
“outputs”. This will help reduce the
gaps in understanding how the two
sectors can work together. This
closer collaboration model will lead
to increased movement of people
crossing over from one sector to
the other. He also felt that the social
sector will not be able to scale up to
address the scope of the work to be
delivered, and there will be a need
for additional trained resources.
The economic empowerment of rural
communities and village clusters
could lead to “development gaps”,
Mr. Arora said, which will need
government intervention.
Lt. Gen. Rajender Singh, CEO, DLF
Foundation
General Singh said that it was sad
that a country of India’ size ranked
low in human development index.
The need of the hour is to fulfil the
aspirations of the youth. He saw this
bill as an opportunity to start filling
the gap of economic development
for those who need it the most
to alleviate India from its current
dismal HDI positioning of 135. If
left unaddressed, India will see
deteriorating foreign investments and
increased economic gaps.
Thomas Chandy, CEO, Save the
Children, India
Mr. Chandy deliberated upon
whether the 2 percent rule would
result in transforming the community
development agenda significantly.
One has to be extremely patient
when working on social issues as the
money invested today may not show
results until several years later. There
is a tremendous amount of distrust

between corporates and NGOs
which needs to be overcome through
accountability and measurable
impact. With about 6,000 companies
spending Rs. 20,000 crore on CSR,
and three million NGOs, there is a
significant opportunity to collaborate
and scale efforts. Small and medium
businesses too need to participate in
addition to large private enterprises
and PSUs.
Mr. Wakhlu stressed the need of
proper governance when large sums
of monies are involved.
Mr. Chandy felt that it was imperative
to have the ability to quantify and
measure the impact of investments
in CSR activities. For this to happen,
one needs to have controlled
environments, where models need
to be built and tested. Impact
assessment needs to be auditable
to build and enhance trusting
relationships between private and
public sectors.
Ms. Chanana pointed out that the
amount of money made available
through the 2 percent rule is a mere
fraction of what is available through
government ministries such as
rural development. However, the
operating models in the government
and the private sector will be
different—the private sector will bring
in execution models and discipline
that can be governed, measured and
continuously improved.
Mr. Singh, during the discussion,
went on to say that there is a need
for balanced growth. Social projects
need be applicable to a wide area
of operation and, most importantly,
there is a need for optimum
utilization of resources.
18
On the need to identify metrics
for the impact and value of CSR,
General Singh felt it was too
early. Ms. Chanana talked about
the importance of collaborative
models between public, private
and government sectors to create
a clearly defined roadmap for
execution by identifying specific
geographies, districts and initiatives.
Mr. Chandy suggested using
metrics based on the Millennium
Development Goals. Mr. Arora
strongly felt the need to separate
internal and external governance
and talked about utilizing already
established tools such as the IFC
metrics to monitor investments
and the various available metrics to
measure social dimensions such as
education, health and poverty.
Ms. Chanana spoke about how her
company has addressed Millennium
Development Goals in its area
of operations. The company had
undertaken work in the poor and
backward area, and a slow but
steady transformation has been seen
in these areas. Mr. Chandy felt the
need to work in the already identified
set of 183+ villages along the lines
of the Millennium Development
Goals. General Singh speaking of
the role of foundations, stressed that
they operated like an NGO for the
corporation that set it up to address
social issues through fundable
projects.
Mr. Wakhlu summed up stating
that three things that stood out in
their discussion were collaboration,
outcome-orientation and stakeholder
engagement.

ㄹ
Session III
Leveraging the Public Private Partnership (PPP) to Enable Transformation in
the Social and Environmental Space
Chair
Kumara Guru DNV, Director, External Relations, Indian School of Business
Panelists
Dr. Jacques Manem, COO and Director, Suez Environnement
Biren Bhuta, Chief, CSR, Tata Steel
Brig. Rajiv Williams, Corporate Head, CSR, Jindal Stainless Limited
Dr. Ramesh Swarankar, Safeguards Specialist, Asian Development Bank
19

Kumara Guru DNV, Director, External
Relations, Indian School of Business
Achieving common goals through
the deployment of resources that
are public and private is not a new
challenge for India. There have
been significant inroads using
public-private partnerships (PPP)
frameworks in infrastructure, energy
and telecom, but we still need to
discuss how these frameworks can
enable transformational opportunities
in the environmental and social
space to address poverty, health
and education. Land issues remain a
significant challenge when it comes
to infrastructure projects and in the
social and environmental space
as well, including displacement of
population.
Dr. Ramesh Swarankar, Safeguards
Specialist, Asian Development Bank
Dr. Swarankar echoed the challenges
inherent in land acquisition, and the
totality of costs—particularly the
resettlement and rehabilitation costs,
social impact analysis costs and
litigation costs. The regulations now
require the consideration of livelihood
dependants on the land, besides the
20
ones who have the title to the land.
He felt it too early to determine the
impact of the revised Companies
Act in India on such projects.
There is increased transparency
and engagement with affected
communities which requires the
disclosure of outcomes of the project
during the design, implementation
and execution phases. This has
stretched project timelines to about
five years. Under the new Act, there
is a dedicated authority for resolving
issues arising from land acquisition,
and relief and rehabilitation has been
liberalized to provide flexibility to
states to administer expeditiously on
various issues.
Brig. Rajiv Williams, Corporate
Head - CSR, Jindal Stainless Limited
Brig. Williams addressed the
fourth ‘P’ in PPP, which is the
“People”:“Without people there is no
partnership.” There are gaps in the
implementation through government
departments and projects are not
able to reach remote areas, which
is where corporates can help by
extending support to relevant
government departments. He gave
the example of his company’s work
in Jammu and Kashmir. He stated
that Jindal Steel went on to partner
with J&K government to expedite the
business operation in the state.
Biren Bhuta, Chief CSR, Tata Steel
Mr. Bhuta stated that the Tatas have
various trusts such as the Ratan Tata
Trust and allied trusts which do not
operate as grant-giving organizations
but through partnerships with NGOs.
They not only bring about social
change but also build capacities
of NGOs in the social sector. Tata
Steel does not believe that it can
bring about large-scale social
transformation alone but through
partnerships with NGOs, government
and community-based organizations
and like-minded corporates. If money
has to go the distance, there needs
to be fruitful partnerships. He spoke
about the success of an initiative
in Jharkhand to tackle the issue of
infant mortality, through a multi-party
partnership involving Tata Steel,
American-Indian foundation,
Society
for Education, Action and Research in
Community Health
and the Jharkhand
government. The success of the
project has made the government
decide to scale it beyond the 167
villages to the entire state.

21
Dr. Jacques Manem, COO and
Director, Suez Environnement
Dr. Manem talked about the
importance of water security
and treatment of waste water in
India. Suez in its dealings with its
stakeholder for partnerships with
municipalities in India, delivers
through an investment-free PPP model.
The Suez PPP service delivery models
in India focuses on “transfer of know
how” and “improving expertise”.
In a PPP model, there is no magic
formula. It brings people with
various skill sets to the table.
Mr. Bhuta suggested that “every
stakeholder needs to be looked at
as equal partner, especially the end
consumer” to make the PPP model
sustainable.
On the need to establish trust with
the beneficiaries of a PPP project
especially in new areas, Brig.
Williams, spoke of the challenges in
dealing with changing governments
and their inability to deliver on
promises of gainful employment
at the end of skills development
programs. However, he stressed the
need to carry on with the agenda
and have the ability to “show and
tell” successful models for trust
enablement. Mr. Bhuta added that
these partnerships with governments
should be embedded in policies for
implementation at scale.
In conclusion, the PPP model
is a sustainable way to foster
transformational opportunities to
bring about social and environmental
changes to communities. It has
similar challenges intrinsic to
traditional PPP models, but at the
same time presents opportunities
for bringing in newer ideas through
entrepreneurs and new execution
models through increased private
partnerships.

Summary by Dr. Serge
Younes, Director-
Sustainability, Accenture
Summarizing the event, Dr. Younes
said companies need to move
beyond philanthropy and incremental
progress led by transformational
leadership. In India, the growth has
to be inclusive. Balancing economic
growth with sustainable development
is the key to the Indian sustainability
roadmap.
Dr. Younes also referred to the
2% allocation to CSR under
the Companies Act and urged
companies to take this as an
opportunity to come together and
work towards common goals. The
business environment in India, he
said, needs the support of a stronger
policy framework for companies
to achieve a transformational
sustainability path.
• Deep Chandra Papnoi, Programme Coordinator,
Global Compact Network India
• Jhumki Dutta, Programme Coordinator,
,
• Yashsvi Chandra, Programme Associate,
㈲
Closing by Pooran Chandra
Pandey, Executive Director,
In his closing remarks, Mr. Pandey
expressed his satisfaction at the
progress achieved at the day-long
convention. He spoke about the
partnership with Accenture and how
the journey that began a year and a
half ago with the Global CEO study
has led to the successful launch of
The UN Global Compact – Accenture
CEO Study on Sustainability 2013.
The success of the global report
and feedback received on the
need for contextualization and
localization was the reason for the
inception of the ‘The UN Global
Compact – Accenture CEO Study
on Sustainability 2013: Insights from
the CEOs in the Global Compact
Network India’.
Managing Teams
• Pooran Chandra Pandey, Executive Director,
Accenture Services Pvt. Ltd. India (Knowledge Partner)
• Vishvesh Prabhakar, Managing Director, Accenture
Sustainability Services India
• Serge Younes, Director, Accenture Sustainability Services
India
• Pankhuri Bajpai, Consultant, Accenture Sustainability
Services India
• Reshma Kulkarni, Consultant, Accenture Sustainability
Services India
• Abhishek Srivastava Consultant, Accenture Sustainability
Services India
22

23
Sponsors
Platinum Sponsor
Knowledge Partner
and Gold Sponsor
Gold Sponsor
SIlver Sponsor
Bronze Sponsor

Copyright © 2014 GCNI
All rights reserved.
Global Compact Network India Office
Scope Complex, Core 5, 6th Floor (ONGC Office)
7 Institutional Area, Lodhi Road, New Delhi
About Global Compact
Network India
(GCNI) was launched in the year
2000 and formally registered as
a non-proft society in the year
2003, to function as the Indian local
network of the United Nations Global
Compact (UNGC). One of the oldest
networks amongst it 103 peers in the
world, GCNI is the frst local network
in the world to be established with
full legal recognition. GCNI is a
country level platform for public
and private sector companies,
civil society organizations,
academic institutions and business
associations, and aids in aligning
stakeholders’ practices towards the
Ten Universally Accepted Principles
of UNGC in the areas of Human
Rights, Labour, Environment and
Anti–corruption. At present, the
India network ranks no.1 in the
Asia Oceania region, according to
the UNGC Annual Local Networks
Report 2013, and has emerged as
the largest corporate citizenship and
social responsibility organization
in the country with a pan India
membership of 179 organizations,
who have strengthened their
commitment to the UN’s Global
Compact Principles by becoming
proud signatories of the local
network, GCNI.
For more details please visit www.
globalcompact.in
Disclaimer
This Report has been published for
information and illustrative purposes
only and is not intended to serve as
advice of any nature whatsoever.
The information contained and the
references made in this Report is in
good faith, neither Accenture nor any
of its directors, agents or employees
give any warranty of accuracy
(whether expressed or implied), nor
accepts any liability as a result of
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