UKD Steel's Vision strikes a balance between economic value as well as ecological and societal value by aspiring to be "A Global Benchmark in Value Creation and Corporate Citizenship". Since its inception, UKD Steel's CS
CS Professional · Strategic Management and Corporate Finance · PYQS · June 2025
UKD Steel's Vision strikes a balance between economic value as well as ecological and societal value by aspiring to be "A Global Benchmark in Value Creation and Corporate Citizenship". Since its inception, UKD Steel's CSR interventions have been more of a 'provider' to society, where the community was given support for its overall needs, both for sustenance and development. Gradually, the shift in approach led to UKD Steel being an 'enabler' focusing on building community capacity through training programs. The Company supports and propagates the principles of the United Nations Global Compact as a Founder Member. It acts as a signatory to the World Steel Sustainability Charter and supports the Affirmative Action program of the Confederation of Indian Industry. UKD Steel's approach to business has evolved from the concept that the wealth created must be continuously returned to society. The responsibility of combining the three elements of society—social, environmental, and economic—is of utmost importance to the way of life at UKD Steel. Today UKD Steel's CSR activities in India encompass the Company's Steel Works, Iron ore mines, and collieries, reaching out to the cities of Jharkhand, Odisha, and West Bengal. UKD Steel's CSR Initiatives: Community involvement is a characteristic of all UKD Group companies around the world. It can take the form of financial support, provision of materials, and the involvement of time, skills, and enthusiasm of employees. The Group contributes to a very wide range of social, cultural, educational, sporting, charitable, and emergency assistance programs. The Group works in partnership with the Government, national and international development organizations, local NGOs, and the community to ensure sustainable development. The Corporate Social Responsibility Division of UKD Steel delivers these responsibilities through several institutionalized bodies: UKD Steel Rural Development Society (URDS) UKD Steel Rural Cultural Society (URCS) UKD Steel Family Welfare Foundation (UFWF) UKD Steel Skill Enhancement Federation (USEF) Recent Developments: In its recently concluded Board meeting, the directors of UKD Steel have approved the appointment of Mr. Kumar as a Consultant to the Board. Mr. Kumar has a rich experience in the field of Corporate Governance and CSR. Further, Mr. Nimeet has been appointed by UKD Steel to act as the Company Secretary. His appointment comes against the backdrop of the recent concerns pointed out by the Independent Director Mr. Shobhit about the Corporate Governance practices within UKD Steel. The Board of UKD Steel wishes to seek professional guidance and leverage the expertise of Mr. Kumar in the areas of CSR and Corporate Governance. A special board meeting was scheduled on 25th May 2025 where Mr. Kumar was invited to brief the board on certain matters. The agenda for the meeting was as under: (A) To discuss about Mr. Kumar's report to the Board on the factors influencing the CSR activities undertaken by UKD Steel. (B) To receive a briefing from Mr. Kumar on the interface between CSR and Corporate Governance. (C) To discuss the steps to be undertaken in the implementation of a robust corporate governance framework within UKD Steel. Required: (i) As a newly qualified company secretary, assist Mr. Kumar in compiling a report giving an account of the factors that shall influence the CSR activities undertaken by UKD Steel.
Answer & Explanation:
Factors that shall influence the CSR activities undertaken by UKD Steel are as under: Globalization coupled with a focus on cross-border trade, multinational enterprises, and global supply chains is increasingly raising CSR concerns related to human resource management practices environmental protection, and health and safety, among other things. Governments and intergovernmental bodies such as the United Nations, the Organization for Economic Co-operation and Development (OECD), and the International Labour Organization (ILO) have developed compacts, declarations, guidelines, principles, and other instruments that outline social norms for acceptable conduct. Advances in communications technology, such as the Internet, cellular phones and personal digital assistants, are making it easier to track corporate activities and disseminate information about them. Non-governmental organizations now regularly draw attention through their websites to business practices they view as problematic. Consumers and investors are showing increasing interest in supporting responsible business practices and environmental issues. Numerous serious and high-profile breaches of corporate ethics have contributed to elevated public mistrust of corporations and highlighted the need for improved corporate governance, transparency, accountability and ethical standards. However, being ethical and being socially responsible in making positive measurable contribution to society may not be same. There is an increasing awareness of the limits of government legislative and regulatory initiatives to effectively capture all the issues that corporate social responsibility addresses. Citizens in many countries are making it clear that corporations should meet standards of social and environmental care, no matter where they operate. CSR has become a significant part in boosting the social image of a company, particularly a listed entity. The legal mandate cast on directors under Section 166(2) of the Companies Act, 2013 is also taken care of in a way to an extent a company should take its CSR activities seriously. Businesses are recognizing that adopting an effective approach to CSR can reduce risk of business disruptions, open up new opportunities, and enhance brand and company reputation. Ethical persons shall be attracted to join the company. Effective CSR will depend on the mindset of executives of the corporate who are taking up CSR initiatives. CSR also depends on the implementing agencies with regard to their seriousness, integrity, honesty and attitude.
Topics: Corporate Social Responsibility (CSR)
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