Transcript Overview of CSR & 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 [email protected]
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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 [email protected]
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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 1930s • The attempts to define CSR grew significantly in the 1960s and became more specific in the 1970s [email protected]
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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”
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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) [email protected]
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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 from the 1850s onwards India [email protected]
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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, empowerment and rural development women‘s [email protected]
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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 [email protected]
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The Fourth Phase: (1980 - present)
• Indian companies started to integrate CSR into a sustainable business strategy • In the 1990s 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 [email protected]
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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 AccountAbility – a global NPO [email protected]
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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 [email protected]
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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)
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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
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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
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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
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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
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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 [email protected]
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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 [email protected]
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Questions/ Suggestions/ Comments???
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