A forward looking agenda on CSR in India – a CSO perspective

Rijit SenguptaCUTSGlobal Summit on CSR & TransparencyDelhi, 8-9 July, 2011

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Outline of Presentation

Confusion to Clarity …Definition & Concept What can business do – understanding, thinking &

actions What are challenges for Businesses? Types of CSR practices in India Role of Government Way forward- some thoughts

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From Confusion to Clarity…CSR/RBC/BR

Responsible Business Conduct (RBC)

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Corporate Social Responsibility (CSR)

OR

Business Responsibilities (BR)

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Definition & Concept

Responsible Business Conduct entails above all compliance with laws, such as those on respecting human rights, environmental protection, labour relations and financial accountability, even where these are poorly enforced. It also involves responding to societal expectations communicated by channels other than the law, e.g. inter-governmental organisations, within the workplace, by local communities and trade unions, or via the press (OECD, 2006)

Corporate Social Responsibility is the commitment of business to contribute to sustainable economic development—working with employees, their families, the local community and society at large to improve the quality of life, in ways that are both good for business and good for development (World Bank, 2004)

Business Responsibility involves businesses being thoroughly aware and conscious of their social, environmental and economic responsibilities, and balance these different considerations in an ethical manner (National Guidelines for Social, Economic and Environmental Responsibilities of Business, 2010)

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What should business do - Understanding, Thinking &

Actions Pro-stakeholder actions

- Communication

- Information

- Redressal

- Beneficiary Engagement How can business perform its BR actions?

- Principles and Core Elements of National Guidelines of SEE Responsibilities of Business

Collective actions Vs Individual actions by firms – ultimate benefits (lasting and measurable)

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What are the challenges for Business?

Archaic procedures Complex reporting requirements Lack of synergy in enforcement (centre, state, local) Cut-throat competition Focus on Bottomline High stakeholder expectations Etc.

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3 strands of CSR practices in India

I. Individual Philanthropy: involves individuals/businesses providing ‘funds’ to NGOs/CBOs to carry out developmental services and activities

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3 strands of CSR practices in India

II. Corporate Philanthropy: involves a business enterprise allocating its funds for undertaking developmental services through a ‘Foundation’ (or a similar non-profit/charitable entity)

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3 strands of CSR practices in India

III. Corporate Responsibility/Sustainability: involves practices where business enterprises rely on their core competence and develop inclusive/innovative business models for meeting their responsibilities

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Role of Government

Recognise the different strands of CSR practices in India – and treat each accordingly

5 key roles for the Govt. (IFC, 2003)

- Mandating & Regulating

- Enabling & Facilitating

- Recognising (incl. Standardising)

- Partnering & Collaborating

- Leading & Demonstrating Few other issues to be addressed (inter-ministerial

coordination, synergy in law enforcement, delegation between centre/state/local)

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Way forward – some thoughts

Conceptual clarity to stimulate thinking and actions Identifying ultimate benefits/beneficiaries Engaging with Stakeholders Addressing challenges (Government – Business

Interactions) Role of Government to ensure greater uptake of CSR

practice National Business Responsibility Policy…

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Thank You

rsg@cuts.org

www.cuts-ccier.org