Corporate Social Responsibility

  

Preamble

Siemens has always endeavored to be an integral part of the India’s society for more than 5 decades – as an employer, customer, investor, vendor and corporate citizen. Siemens considers it as its economic, environmental and social responsibility to foster sustainable local development as well as add value to the local economy in which it operates. The initiatives in the social sphere,  generally known as Corporate Social Responsibility (CSR), are referred to as Corporate Citizenship in Siemens. Corporate Citizenship is the Company’s contribution to sustainable communities and is built on the Company Values of being Responsible, Excellent and Innovative

 

Corporate Citizenship Strategy

At Siemens we wish to sustainably improve living conditions for as many people as possible, worldwide. The Company works towards that goal with business activities that address the challenges of our time such as Demographic change, Urbanization, Climate Change, Globalization and Digitalization. Our mission is to make real what matters in the way we electrify, automate and digitalize the world around us. Ingenuity drives us and what we create is for society. Our company-wide Corporate Citizenship framework forms a part of the Sustainability & Citizenship priority area. The Company considers it as its economic, environmental and social responsibility to foster sustainable local development as well as add value to the local economy in which it operates. The Company derives its sustainability initiatives from these challenges. These initiatives, generally known as Corporate Social Responsibility (CSR), are referred to as Corporate Citizenship in Siemens. The Corporate Citizenship strategy is in line with the Company’s goal to address the three dimensions of Sustainability i.e. Economic, Environment and Social. Hence, the strategy focuses on: Education & Science, Social, and Environment. The strategy aims to address the challenges and needs that communities face by leveraging the Company’s competencies and solutions. It is oriented towards the National development agenda, UN Sustainable Development Goals and UN Global Compact principles. To identify Siemens India’s focus areas with respect to Corporate Citizenship, an extensive stakeholder survey was conducted in 2011 across various locations. The stakeholders consisted of NGOs, Government Departments, Academic and Training Institutes, Media, Vendors and Employees. The survey results were analyzed and the inputs were considered in depth to identify areas of importance for Siemens and for the Society.

 

The focus topic for Corporate Citizenship is:

  1. Support to Universities and promotion of technical and science education

Skills and knowledge are the driving forces of economic growth and development for any country. Currently, a huge gap exists between the need of the industry for an employable work force and  the capacity of the skill development programs. Siemens employs its competencies to promote science and technical education so as to produce ‘Industry ready’ engineers and technicians in India. The key initiative that has been rolled out to address the focus area is:

 

  • Dual VET at Government ITIs

Siemens supports Science and Technical Education by implementing world class German Dual VET (Vocational Education and Training) training pedagogy in Government Industrial Training Institutes (ITIs) to make technicians of these Institutes industry-ready. The project facilitates Industry exposure of trainees at local industry especially MSMEs. Reference to Companies Act 2013 Schedule VII (ii) of promoting education and employment enhancing vocation skills

 

Corporate Social Responsibility Committee

As per the requirements of recently enacted Companies Act, 2013 and rules framed thereunder, the Board of Directors at their meeting held on June 23, 2017 constituted the CSR Committee. The Board of Directors at their meeting held on 9th March 2018, further reconstituted the CSR committee to consist the following Directors:-

 

 

Name

Role in the Committee

Mr. Oleg Rakitskii

Member

Mr. Sunil Kapoor

Member

Mr. Hiren Negandhi

Member

 

The mandate of the CSR Committee is essentially to

1. Formulate and recommend to the Board of Directors, the

  • CSR policy
  • Expenditure on CSR activities

2. Monitoring of CSR policy from time to time

3. Recommend CSR projects, which are in line with the activities specified in Schedule VII, to be undertaken by the Company

4. Recommend the amount of expenditure to be incurred on CSR projects

5. Monitoring Mechanism for the implementation of the CSR Projects or programmes or activities undertaken by the Company

 

The CSR Committee shall, on an annual basis, furnish a statement that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of Siemens Financial Services Private Limited. (“the Company”).

 

Corporate Citizenship Department of Siemens Limited

At Siemens, the Corporate Citizenship activities of Siemens Limited and all Siemens Group companies / subsidiaries in India are planned, monitored and evaluated by the Corporate Citizenship Department. It prepares reports at regular intervals to be presented to the CSR Committee of the Company and applicable Group companies / subsidiaries in India.

 

Project cycle of Corporate Citizenship Project

 

1. Corporate Citizenship projects / CSR activities

The Company shall endeavor to spend on the CSR activities as prescribed under the Companies Act, 2013 and rules framed thereunder, as may be amended from time to time (“the Act”). The CSR projects and programs to be undertaken by the Company shall include activities falling within the preview of schedule VII of the Act, as may be amended from time to time. These programs will be executed by Siemens and where appropriate in partnership with local government, various NGO partners, service providers and others. The list and implementation modalities may be modified from time to time, as per recommendations of the CSR Committee of the Company.

2. Project Planning and Implementation

All projects of Corporate Citizenship will be conducted in line with the following framework:

2.1 Baseline study / Needs assessment:

A needs assessment or baseline study along with the Company’s competencies and solutions will be conducted for initiating any project/program.

2.2 Selection of the implementing partner:

For the purpose of achieving its CSR objectives, the Company may partner with organizations like NGOs, Academic and Training Institutions, companies, the Government and other stakeholders for project implementation and facilitation.

2.3 Mandatory Requirements while selecting an implementing partner:

The selection of implementing partner and the due diligence parameters shall be conducted as per the internal policies of the Company as also as per the applicable regulatory requirements from time to time.

2.4 Project definition:

Based on the findings of the baseline / needs assessment, the project is developed defining the goals, objectives, project interventions, time lines, resources, indicators and roles and responsibilities of the community and the implementing partner(s). The Corporate Citizenship Department will leverage, analyze and plan Siemens’ competencies and solutions to add value and address the project interventions.

2.5 Key Performance Indicators (KPIs)

All projects will have Key Performance Indicators (KPIs) to measure progress toward those goals and objectives set at the time of project definition. Based on the nature of the project, the KPIs will be defined and measured across various stages such as Inputs, Outputs, Outcome and Impact. A prime focus shall be to ensure self-sustainability of the initiative even after Siemens exists the specific project.

2.6 Beneficiaries

The project will define the beneficiary group as per the goal and the needs assessment / baseline study.

2.7 Project Funding

The Company can co-partner with other Siemens Group companies, subsidiaries in India and other Corporates for funding of Corporate Citizenship projects. Reporting of the contribution(s) by the respective companies will be prepared separately. In cases where the project generates surplus funds, the same will be carried forward by the implementing partner as part of the opening balance of the project for the subsequent / following year. In a situation where there is a surplus fund available at the end of the final year of the project, the same amount will remain as a corpus with the beneficiaries for the purpose of sustainability. The surplus, if any, arising out of the CSR Projects or programs or activities shall not form part of the business profit of the Company.

 

Monitoring and Evaluation

The Corporate Citizenship Department will perform a periodic assessment of the relevance, performance, efficiency and impact of the projects/programs. The Company/Committee shall from time to time determine criteria of evaluation of performance of implementing partner.

  • Implementing partner reporting

The implementing partner will report on the program(s) and the expenditure on a regular basis in addition to a yearly report which will include programs undertaken along with the expenditure incurred on it, future plan of action for the subsequent financial year and balance carried forward, if any. In cases where there is co–funding in the project or multiple partners, the implementing partner will report to all the stakeholders.

 

Corporate Social Responsibility Committee / Board reporting

  • Periodic Report - Program and Finance

The Corporate Citizenship Department will from such time to time as may be determined by the CSR Committee, prepare and present to it, for its review, Program and Finance Report of all projects as mentioned in the Corporate Citizenship Policy. The Committee can suggest changes in the project to meet the project objectives

  • Annual Report - Program and Finance

The Corporate Citizenship Department will prepare a detailed report of all projects and necessary reporting / disclosure requirements would be adhered to.

 

Annexure – List of Corporate Citizenship projects

 

Project Name
Project Description
Dual VET at Government ITIs
Deploy the German Dual VET (Vocational Education and Training) pedagogy at Government Industrial Training Institutes, promote apprenticeships and upskill MSMEs. The target groups for this program are trainees and Instructors of Government ITIs and MSMEs.