OVERVIEW OF CSR GLOBAL PROFESSIONAL OPPORTUNITIES IN CSR

OVERVIEW OF CSR & GLOBAL PROFESSIONAL OPPORTUNITIES IN CSR CA. Rajkumar S Adukia Council member ICAI Chairman ind as(IFRS) implementation committee Committee on cooperatives & NPO Economics group ICAI B. Com (Hons. ) FCA, ACS, MBA, ACMA, LLB , Dip IFRS(UK) DLL& LW, Dip criminology rajkumarradukia. caaa. in 09820061049/09323061049 rajkumarradukia@caaa. in 1

CORPORATE SOCIAL RESPONSIBILITY • CSR – Also referred to as corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business • CSR is a form of corporate self-regulation integrated into a business model • The term, “corporate social responsibility” is used to envelop both social and environment issues rajkumarradukia@caaa. in 2

ORIGIN OF CSR • The fundamentals of CSR rest on the fact that not only public policy but even corporates should be responsible enough to address social issues • Known as social responsibility (SR), the modern era of CSR started in the 1930 s • The attempts to define CSR grew significantly in the 1960 s and became more specific in the 1970 s rajkumarradukia@caaa. in 3

DEFINITIONS • Howard Bowen - American economist (1953) was one of the first authors who attempted to define CSR According to Bowen - CSR is the policies, the decisions, and the actions that align with the goals and values of society • Archie B. Carroll. Professor Emeritus, University of Georgia - (1979) thought that the economic component should be included in the definition of CSR. He defined it as - “The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time” rajkumarradukia@caaa. in 4

EVOLUTION OF CSR IN INDIA The history of CSR in India has its four phases: • The First Phase: (pre-industrialization period, which lasted till 1850 - CSR motivated by charity and philanthropy) • The Second Phase: 1850 -1960(during the independence movement - CSR for India’s social development) • The Third Phase: (1960– 1980 - CSR under the paradigm of the mixed economy) • The Fourth Phase: (1980 - present) rajkumarradukia@caaa. in 5

The First Phase: (pre-industrialization period, which lasted till 1850 - CSR motivated by charity and philanthropy) • Charity and philanthropy were the main drivers of CSR • wealthy merchants shared a part of their wealth with the wider society by way of setting up temples for a religious cause • change in approach with the arrival of colonial rule in India from the 1850 s onwards rajkumarradukia@caaa. in 6

The Second Phase: (during the independence movement – CSR for India’s social development)1850 -1960 • Mahatma Gandhi introduced the notion of "trusteeship", • according to this notion - industry leaders had to manage their wealth so as to benefit the common man • Under his influence businesses established trusts for schools and colleges and also helped in setting up training and scientific institutions • The heads of the firms largely aligned the activities of their trusts with Gandhi‘s reform programmes • These programmes included activities that sought in particular the abolition of untouchability, women‘s empowerment and rural development rajkumarradukia@caaa. in 7

The Third Phase: (1960– 1980 - CSR under the paradigm of the mixed economy) • emergence of Public Sector Undertakings (PSUs) and laws relating labour and environmental standards • The policy of industrial licensing, high taxes and restrictions on the private sector led to corporate malpractices • This led to enactment of legislation regarding corporate governance, labour and environmental issues • PSUs were set up by the state to ensure suitable distribution of resources • public sector was effective only to a certain limited extent - shift of expectation from the public to the private sector and their active involvement in the socio-economic development of the country became absolutely necessary rajkumarradukia@caaa. in 8

The Fourth Phase: (1980 - present) • Indian companies started to integrate CSR into a sustainable business strategy • In the 1990 s the first initiation towards globalization and economic liberalization were undertaken which gave a boost to the economy • the increased profitability increased business willingness as well as ability to give rajkumarradukia@caaa. in 9

CSR PRACTICES AROUND THE GLOBE • www. globalreporting. org amsterdam, the netherlands • Global Reporting Initiative (GRI) Sustainability Reporting Framework by the GRI • www. iso. org geneva switzerland • ISO 14001 - Environmental management systems given by the International Organization for Standardization • ISO 26000 – Social Responsibility given by the International Organization for Standardization • www. sa-intl. org new york • SA 8000 - auditable certification standard given by Social Accountability International • www. accountability. org • AA 1000 – Series of Standards given by Account. Ability – a global NPO rajkumarradukia@caaa. in 10

CURRENT CSR SCENARIO IN INDIA: • The basic objective of CSR in these days - maximizing the company's overall impact on the society and stakeholders • CSR policies, practices and programs - comprehensively integrated throughout business operations and processes • Formation of specialised CSR teams in companies • Corporates increasingly joining hands with Non-governmental organizations (NGOs) • CSR made a part of legal framework rajkumarradukia@caaa. in 11

CSR LAWS IN INDIA • National Voluntary Guidelines for Social, Environmental and Economic Responsibilities of Business (NVG) 12 th july 2011 Given by Ministry of Corporate Affairs – India • Business Responsibility Reports (BRR) – SEBI - mandated the top 100 listed companies of BSE & NSE to report under the BRR aug 13, 2012 added clause 55 to listing agreement Section 135 wef 1 st april 2014 Companies Act, 2013 (India) rajkumarradukia@caaa. in 12

Clause 55 of listing agreement • Business Responsibility Report – Suggested Framework • Section A: General Information about the Company • Section B: Financial Details of the Company • Section C: Other Details • Section D: BR Information rajkumarradukia@caaa. in 13

Clause 55 of listing agreement Section E: Principle-wise performance • Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability • Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle • Principle 3: Businesses should promote the wellbeing of all employees rajkumarradukia@caaa. in 14

Clause 55 of listing agreement Section E: Principle-wise performance • Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized. • Principle 5: Businesses should respect and promote human rights • Principle 6: Business should respect, protect, and make efforts to restore the environment rajkumarradukia@caaa. in 15

Clause 55 of listing agreement Section E: Principle-wise performance • Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner • Principle 8: Businesses should support inclusive growth and equitable development • Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner rajkumarradukia@caaa. in 16

CSR - PROFESSIONAL OPPORTUNITIES 1. Consultancy in CSR 2. Business responsibility reports SEBI 3. Accounting for CSR 4. Taxation for CSR 5. Application of FCRA 6. Application & compliance with FEMA 7. Advising on NPO Governance 8. Grading/ Rating NPOs 9. Social Audit 10. Selection of NPOs – a. Trust b. Society c. Company d. Non Trading Corporations 11. Consultants in funding – India & outside India 12. Complying with Standards 13. Integrated Reporting 14. Internal audit of CSR rajkumarradukia@caaa. in 17

DEVELOPING WORK IN CSR • Writing articles in CSR related magazines and other publications • Participating as speaker in conferences • Communicating with people related to CSR activities • Building a CSR information website • Writing books on topics covered under CSR • Projecting oneself as a CSR Expert • Reaching out to the prospective service receivers • Using social media to reach more number of people related to CSR • Increase expertise in the field of CSR by undertaking capacity building initiatives rajkumarradukia@caaa. in 18

Questions/ Suggestions/ Comments? ? ? rajkumarradukia@caaa. in 19

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