Moves from charity to CSR mode

Moves from charity to CSR mode

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JAKSON Group, a prominent family owned business registered in 1947 as an electrical trading company. It has come a long way and established itself as a leader in Indian power industry. As per PwC’s Family Business Survey 2012-13, 78% of Indian family enterprises support various community initiatives. Rightly so, Jakson Group has been involved in supporting various community activities since long. Sameer Gupta, CMD is personally committed to charity inspired by his life experiences. The mandatory CSR law under section 135 of The Companies Act 2013 has induced the JAKSON to shift from a Charity Mode to CSR mode.

Jakson Group is an integrated power solutions company offering a range of products and services that help customers effectively meet their diverse needs in a safe and sustainable manner. The company is driven by its core values of building enduring relationships and its vision to be a trendsetter in energy solutions. Jakson operates three key market facing businesses – Powergen& Distribution, Solar and EPC Contracting & Defence. The diverse energy solutions portfolio ensures that their customers remain at the forefront, now and into the future. The group has an extensive presence in India with 2000 employees, 4 manufacturing facilities, 1 Global Training Centre, 22 Sales Offices, 2 Service centers and a wide network of channel partners and dealers. The group has also made investments in other sectors like hospitality and education.

With employee pool from across India, Nepal, Bangladesh and Dubai, Jakson has strived over the years to manifest unsurpassed innovation and confer to the needs of its customers. With four state-of-the-art manufacturing plants in India, Jakson has an extensive countrywide presence with a wide network of dealers. Jakson has endeavoured to accomplish greater presence in new markets with customer inspired products & solutions with an international adeptness.

Jakson headquarters at Noida is a platinum rated Green Building with the all modern amenities and aesthetics. The facility spread across 1.9 acres is LEED Certified Green Building and responsibly complies to the norms laid down by Indian Green Building Council (IGBC).

The facility has been designed to efficiently manage natural resources like rain water harvesting, waste water treatment, naturally day lighted interiors, occupancy sensors & efficient lighting arrangements. The building also has a solar power enabled roof to generate electricity.

With its Environmentally compatible construction, renewable source of energy and economical use of natural resources, the headquarters further strengthens their commitment to create a greener and a cleaner future.

Core Purpose

  • Be a trusted partner for people & society, and improve quality of life by providing sustainable solutions.
  • Build strong relationships with customers by being a trusted partner
  • Improve quality of life of people and positively impact society
  • Undertake sustainable growth by building world class infrastructure

Core Values

Jakson Group is driven by values like,

  •  Build enduring relationships
  •  Be proactive
  •  Be passionate about excellence
  •  Be a trendsetter
  •  Drive execution

Businesses of JAKSON

Powergen & Distribution Business

Jakson provides a wide range of Cummins diesel & gas gensets from 7.5 KVA to 3750 KVA. The company has a solid reputation of delivering unparalleled customer service through a wide network of after sales offices spread across India, Nepal & Bangladesh. In addition to gensets, Jakson is also a distributor of Cummins products and Hyster material handling equipment in Bangladesh.

 

 

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Solar Business

Jakson Solar business is organized into four key sub-verticals. Solar Independent Power Producer, Engineering Procurement & Construction (EPC) for both land based and rooftop solar projects, solar retail products and solar components. As a Solar IPP, Jakson owns three power plants with a total installed capacity of 60MW in the states of Rajasthan and Uttar Pradesh. The power generated is being sold to state governments in a power purchase agreement. In the solar EPC segment, Jakson has engineering and execution teams for both land based as well as roof top solar projects. Jakson solar products include a wide a range of B2B and B2C products which are distributed through a wide dealer network in India and overseas. Solar components include Solar PV modules, string combiner boxes, module mounting structures boxes amongst others which are sold to other solar EPC players in the market. The company has a state-of-the-art solar manufacturing plant in Noida, Uttar Pradesh with annual manufacturing capacity of 70 MW.

 

 

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cov2EPC Contracting & Defence Business

The EPC Contracting & Defence Business includes project execution for urban and rural electrification, electrical substations, electrical transmission & distribution networks, metro rail electrification and specialised applications for the defence sector amongst others. Most of these projects are primarily in the government domain.

 

Hospitality & Education Business

Jakson Group also has investments in Hospitality and the Education sector. The company owns and operates a four star business hotel in Phaltan, Maharastra. The company is also setting up a girls residential school in Neemrana, Rajasthan and a K12 co-educational day school in Gurgaon, Haryana.

CSR Programs of JAKSON

Jakson Welfare Trust is the corporate social responsibility arm of Jakson Group. The trust operates and manages various CSR programs on behalf of the company for betterment of underprivileged sections of society.

Jakson Welfare Trust currently works in several areas like skill development, education, healthcare, environmental sustainability and women empowerment. In addition to self-run programs, the company also partners like-minded organizations working in similar realms and offers them financial and volunteering support as required from time-to-time.

Malti, a resident of Mathura, Uttar Pradesh migrated to Noida along with her husband in search of a job and a better life. Malti had studied till Class XII in her local village school and had no prior work experience. She also lacked industrial knowledge or technical skills. It was therefore difficult for her to get a job in Noida. Getting professional training from an institute meant spending money upfront which she could not afford.

A relative working at Jakson Noida plant suggested her to visit Bhawana’sAnugraha and get herself enrolled for one of its courses. Malti decided to follow the advice and enrolled herself for one of the programs imparted by Bhawana’sAnugraha, free of cost.

Malti today works in Jakson’s Noida plant in its solar module manufacturing unit. She earns a good salary and is confident and independent. She shares household expenses with her husband and also sends some money to her relatives back home.

Bhawana's Anugrah

The program provides free training to young people from underprivileged sections of society. The training modules are designed to train people on skills that are in demand in the industry so that after training, the trained resources can find meaningful employment in the industry. Some of the courses that are imparted as part of this initiative are welding, machine operations, CNC machine handling, and industrial painting, amongst others.

Smitham

Smitham is an initiative of Jakson Welfare Trust to provide quality education to children from low income groups and underprivileged sections of society. As part of this program, 12 government schools ofGreater Noida area in UP were adopted and quality of education was improved.It also helped in building supporting infrastructure & fulfilling required basic amenities to students in these schools. Jakson employees also participate in various volunteering activities in these schools.

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The objective of this initiative is to provide treatment for ailments to people suffering from vision related issues. In our society, there are several instances of people from economically weaker sections losing their eyesight due to their inability to afford treatment for eye related ailments. Jakson Welfare Trust provides financial assistance to NGOs working in this field with its Diipti initiative.

Astitva

Astitva is an initiative of Jakson welfare Trust that works in the realm of cancer care and cancer awareness. The trust provides financial assistance to people from underprivileged sections of society suffering from cancer. It also works with partners to spread awareness on cancer.

Women Empowerment

Jakson Hospitality, the hospitality arm of Jakson Group had focussed on its Karmic responsibility of “Giving Back to the Society”. At the hotel, women from the community are being trained on various skills and being absorbed by the hotel in multiple functions that include horticulture, Laundry, kitchen, stewarding, housekeeping and finance amongst others. Many of the current employees in the hotel are on a “Learn while you earn” programme.Special emphasis is being given to women empowerment. The hotel has orphaned girls, widowed women, divorcees, single mothers & house wives turned working professionals all under one roof. Many of these women are the sole earners of their families. The hotel provides them opportunities to progress and become financially independent.

 

 

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To conclude it may be said that, the backbone of CSR activities in India today is the CSR activities implemented as per Section 135 and schedule VII of the Companies’ Act 2013, which mandates CSR implementation for companies.

As per this section,

(1) Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.

(2) The Board’s report under sub-section (3) of section 134 shall disclose the

composition of the Corporate Social Responsibility Committee.

(3) The Corporate Social Responsibility Committee shall,—

(a) Formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII;

(b) Recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and

(c) Monitor the Corporate Social Responsibility Policy of the company from time to time.

(4) The Board of every company referred to in sub-section (1) shall,—

(a) After taking into account the recommendations made by the Corporate Social Responsibility Committee, approve the Corporate Social Responsibility Policy for the company and disclose contents of such Policy in its report and also place it on the company’s website, if any, in such manner as may be prescribed; and

(b) Ensure that the activities as are included in Corporate Social Responsibility Policy of the company are undertaken by the company.

(5) The Board of every company referred to in sub-section (1), shall ensure that the company spends, in every financial year, at least two per cent. of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy:

Provided that the company shall give preference to the local area and areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility activities:

Provided further that if the company fails to spend such amount, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount.

The essence of the above legal provision is to ensure that companies qualifying the above parameters manage CSR in a professional manner involving a formal CSR organisation including CSR Committee, CSR planning, CSR implementation and CSR documentation and reporting, starting with displaying on the web site.

This requirement of law, by default demands change in management approach and culture from a charity mode, where a company is not bound to record, document and report its charily activities. But, CSR law demands recording, documenting and reporting CSR activities as per a prescribed format.

Again, the fact that, CSR can be beneficial to business, is yet to be appreciated by many companies, who have walked the path of charity for too long. For them, moving over to strategic CSR mode from charity mode, poses a real challenge of change.

Many family owned businesses including Jakson are in the process of moving towards CSR mode from charity mode.

INTERVIEW OF Shri Sameer Gupta

CMD, JAKSON GROUP

sameer-sharmaSameer Gupta is Chairman and Managing Director of Jakson Group, one of the country’s leading and most diversified power companies. Sameer’s leadership and technology insight have strengthened Jakson’s culture of innovation and expanded the company into new markets with a customer inspired product portfolio; value added services and global reach. He also led the company to embrace the tenets of sustainable development and environmental protection. Sameer also serves as the Chairman for Indian Green Building Council (IGBC) Lucknow Chapter.

Indian business has entered the mandatory CSR era, wef April, 2014. What has been the response of JAKSON GROUP to the provisions of the Section 135 of the Companies Act 2013?

Jakson has been a responsible corporate citizen since its inception and always believed in giving back to society. It has been actively involved in CSR activities even before this legislation came into force. We don’t see any impact of this legislation on our company

For complying with the CSR provision of the law, is there any change in the CSR strategy of JAKSON GROUP from the pre-2014 period, if so, please elaborate?

We will comply with all the provisions of the new law

How do you align your CSR activities with your businesses?

Bhawana’s Anugrah, our skill development program for young adults not just provides free industry focused training programs to young adults but also provides them with suitable employment opportunities within Jakson. This initiative helps us align our CSR activities with our business.

You have also led the company to embrace sustainable development and environmental protection. What are the specific activities in these domains?

Sustainability and environment are core tenets of Jakson’s corporate culture and the company is constantly investing in these areas. On business side, our diversification into solar business is a testament of this belief. Our LEEDS certified Platinum rated green building, which houses our corporate headquarters and our hotel is another such example. It is designed to efficiently manage natural resources like rain waterharvesting, waste water treatment, naturally day lighted interiors, occupancy sensors &efficient lighting arrangements. The building also has a solar PV rooftop installation thatgenerates electricity to meet energy requirements of the building. We are also trying to develop a culture of socially and environmentally responsibility within the organization by regularly organizing knowledge sharing workshops for our employees in partnership with leading social and environmental NGOs.

Which are the key CSR projects of JAKSON GROUP and which one is the FLAGSHIP project?

As mentioned above, we work in the areas of skill development, education, healthcare, environmental sustainability and women empowerment. Our key CSR projects are Bhawana's Anugrah that provides free training to young people from underprivileged sections of society; Smitham works to provide quality education to children from low income groups and underprivileged sections of society; Diipti provides treatment to people suffering from vision related issues; and Astitvais an initiative that works in the realm of cancer care and cancer awareness.

About the author

CSR VISION
CSR VISION is India's (probably World's) first monthly magazine in print devoted to CSR and Sustainable Development for bringing together all stakeholders of SUSTAINABLE DEVELOPMENT at a global and local levels and act as a platform for promoting strategic CSR and sustainable development practices through dissemination of information and knowledge.