Corporate Social Responsibility and Arcelor-Mittal company

Last three decades, we have seen an enormous change in the triangular relationship between corporate houses, society and the state; and we are observing now that companies are no longer an individual entity, they are now well encouraged by its stake holders; companies have started to realize the paramount importance of its stake holders and that is why they are now eagerly trying to make bridge between corporate , society and the state. Thus companies have started to develop Corporate Social Responsibilities (CSR) or it is also called as Corporate Citizenship.

First thing I would like to discuss what the Corporate Social Responsibilities is all about? Corporate Social Responsibilities can be defined as the concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large. World Business Council for Sustainable Development defines CSR as “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” The European Commission advocates CSR as “Being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing more into human capital, the environment and relations with stakeholders.” Thus CSR exhorts corporate to diverge from their sole aim of maximizing profits and to lay more importance on improving the economic and social standards of the community in their countries of operation. CSR can be thus be simply defined as the additional commitment by businesses to improve the social and economic status of various stakeholders involved while complying with all legal and economic requirements.
The three major elements of CSR are product use which focuses on contribution of industrial products which help in well being and quality of life of the society, business practice which focuses on good corporate governance and gives high impetus for the environmental well being and equity which tries for distribution of profits equitably across different societies especially the host community.
Therefore, we will look at Arcelor-Mittal how they are operating their CSR through out the world or its community. Lakshmi Niwas Mittal, one of the “100 Most Influential People” (Time Magazine, 2007) and the richest Indian in the world (Forbes, March, 2008), is known as the man behind Arcelor-Mittal for him good CSR is always strategic and he believes that a business has to create a win-win situation for all its stakeholders.
Arcelor-Mittal and CSR:
1. Arcelor-Mittal take a long view espouses in its brand promise of “Transforming Tomorrow”, a CSR mission in Brazil, of thinking not only of today but also the generations to come. Corporate Social Responsibility for Arcelor-Mittal, Brazil, means not only improving the qualifications of its own work force, but also investing in a junior company programme for high school students to better the quality of life for the people. Brazilian Quality of Life Association (ABQV) has given the award The Global Program Award in recognition of the “Pro-Quality of Life” program designed for improving the quality of life of employees and their dependents.

2. In Brazil itself more than $ 27 million invested over the year in community
social programs that reach more than two million people. Self-sufficient in the electricity used to produce flat steels with on-site thermoelectric generation of approximately 500 MW, and a world benchmark in recycling of waste and recirculation of fresh water are two most vital initiatives taken by Arcelor-Mittal in Brazil.

3. Arcelor-Mittal defines them as their commitment is reflected in their dedication to reduce carbon emissions (CO2) with the introduction of projects to support the United Nation's Clean Development Mechanism (MDL).

4.. Arcelor-Mittal have started the programme on ecoefficiency in all their units in order to make a pollution free world, because pollution is one of the threats for the world which results in Global Warming.

5. Their corporate governance policy is one of the most noticeable CSR activity in which they are offering independent directors the equal authority as that of the company’s executive directors, and also they are providing equal rights to its all shareholders, their improvement of transparency and dialogue with its shareholders is really appreciable.

6. They are assuring to provide the best health and safety measures to its employees and also good working environment commitment to its well worthy employees.

7. Arcelor-Mittal renewed the tramways, power plants, the hotels, the stadiums, and developed social activities such as children camps in Kazakhstan before it own and operate its steel plant there, thus they are able to positively impact the livelihood of the community more broadly while continuing to improve the plant’s efficiency.

8. Arcelor-Mittal is also now taking a initiative role in promoting games, Mr.Abhinav Bindra, India’s first ever individual gold medalist at the Beijing Olympics in 2008,was awarded a Rs.1.5 crore cheque from Mittal Champion Trust(MCT), Mr. Virdhawal Khade ,a swimmer, representing India in Olympic 2008,Beijing,was sponsored by MCT too.