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Can CSR be a game changer? An interactive session with NGOs, Corporate CSRs and……………………………..did I miss anybody?? 15 December 2012…..Alliance University, Bangalore
Can CSR be a game changer?
An interactive session with NGOs, Corporate CSRs and……………………………..did I miss anybody??
15 December 2012…..Alliance University, Bangalore
Where is the community?
• Does it have a voice• Do we have the depth and the empathy to
understand its pain….the hurt. Dr Acharya mentioned CSR must ‘HURT’• Are we REALLY keen to do GOOD• How often are we CONSULTING this
‘VOICELESS’ community for its ‘DEVELOPMENT’
Structure of this presentation
•Where do I come from•Who am I and why am I here•An OPPORTUNITY beckons….or is it a
mirage•Are we ready for it….either ways….
Where do I come from…..
•What is IICA•Where does the National Foundation
for CSR (NFCSR) fit in• The role of NFCSR
The NFCSR established by MCA at IICA would:Function as a national platform for the Corporate
Sector, Central and State Governments, local authorities, civil society organizations to connect, collaborate, and make effective and measurable commitments to action in the field of CSR.
Will play a FACILITATIVE, ENABLING role……so hopefully no SARKARIFICATION !!
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National Foundation for Corporate Social Responsibility (NFCSR)
Be a global gateway and Provide the following services to Corporates in the field of CSR in
a single window mode: Knowledge and informational services Assistance for formulating CSR projects Impact Assessment and Social Audit of CSR projects Preparing a cadre of Certified CSR Professionals Training and capacity building Rating of CSR performance and recognition through awards Maintaining Database for best practices Research including action research
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Who am I and why am I here
• A Civil Engineer…..to a Social Engineer!!• Founding member of an NGO –
www.reacha.org just after College - 1992• Stumbled upon teaching…..after a stint
with the corporate world• Found my calling…..and the ‘CHILD
WITHIN’ as I worked with school children• Let to Project Based Learning (PBL)• Connecting classroom teaching-learning to
REAL WORLD….sharing an example….
The NDPL Energy Club….• A Project with the Tata’s that my REACHA did – 2004-07• Was a ‘CSR’ Project to start with• Led to path-breaking developments:• Sharing with CBSE……and to CCE (Continuous &
Comprehensive Evaluation) of school children• Scaling up within the Tata’s…..as Tata Power took it up
• For Tata Power……this went from CSR to Responsible Business (fits as per NVGs….)….how? Next slide…..• Is today the internationally acclaimed Club Enerji
Children
Parents Schools Community
TATAPOWER(Corporate Social Responsibility)
CSRREACHA
(Community Mobilisation)
Energy clubs
Energy Audit by children….
A movement BEGAN in Delhi in 2004 with PBL
With Tech Mahindra Foundation • CSR of Tech Mahindra Company• TMF – A Section 25 Company• 1.5% of PAT amounted to about 9 Crores per annum• 70+ Partners across Pune-Mumbai, Delhi-NCR and
Bangalore• Domains of:• Education• Women’s Empowerment• Vocational Training• Disability
• A huge LEARNING opportunity for me
Sharing with MCD teachers…
Some learning…..next steps…• To share and collaborate:• Difficult to get NGOs to do• No better with CSR Foundations…………..!!!!
• Constant RE-INVENTING OF THE WHEEL - Resources and processes • Crying need of CSR ---- alignment with GOVERNMENT (Tax-
payers’ money) programmes• CSR executives…..are they ready to read and study:• Domain related info – education, VT, disability….RTE etc• Meaning of a ‘CONSULTATIVE PROCESS’ & NEED BASED CSR• Process of PROJECTIVIZATION….. and related activities
• How true are NGOs
An OPPORTUNITY beckons….or is it a mirage
Guiding Principles for NVGs
• Inclusive and sustainable development• Maximization of shareholder and stakeholder value• Business case and values based case • Principles based, indivisibility of principles • Supported by disclosure framework• Stakeholder engagement - as a principle, as a process • In sync with international norms and framework • Applicability to large and small businesses • Indian priorities and context
Structure: 9 principles, 48 Core elements
• Governance structures, procedures and practices to ensure ethical conduct in transparent manner
Ethics, Transparency, and Accountability
• Optimal use of resources from design to disposal of the productProduct Life Cycle Sustainability
• Maintain equal opportunities, wellbeing and skills development within business and in value chain
Employees’ Wellbeing
• Systematic and continuous stakeholder engagement in a just, fair and equitable manner
Stakeholder Engagement
• Respect and promote human rights for all concern in business and across the value chain Human Rights
• Identify environmental risk and opportunity through progressive environment management system Environment
• Represent business issue in collective and responsible mannerPolicy Advocacy
• Align policy and frameworks in line with Country’s Agenda and create value for SocietyInclusive Growth
• Product disclosure in a truthful and factual manner and create consumer awarenessCustomer and Customer Value
Core purpose and main aspects • Better performance, business competitiveness• Accountability and evidence • Progressive and enabling • Principle of Apply or Explain• Pragmatic and light • Aligned to section 135 of Companies Bill • Applicable to large and small businesses
SEBI Directive on Business Responsibility Reports
• Mandates inclusion of BR Reports as part of the annual reports for top 100 listed entities based on market capitalisation at BSE and NSE as on March 31, 2012
• Other listed entities may voluntarily disclose BR Reports as part of their Annual Reports
Related Developments: Companies Bill 2011: Business responsibility and CSR
• Section 135 : 2 percent of the net profit of a company above a threshold for CSR activities
• Explanation for non-spending • CSR a part of BR • Mechanism for monitoring to evolve
Provisions of the Company’s Bill Relating to CSR
SECTION 135
1) Every company having a net worth of rupees five hundred crore or more, or a turnover of rupees one thousand crore or more, or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.
2) The Board's report under sub-section (3) of section 134 (o) shall disclose the composition of the Corporate Social Responsibility Committee.
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SECTION 135 {CONTD.}
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3) The Corporate Social Responsibility Committee shall,
a. formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII;
b. recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and
c. monitor the Corporate Social Responsibility Policy of the company from time to time.
SECTION 135 {CONTD.}
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4) The Board of every company referred to in sub-section (1) shall,
a) After taking into account the recommendations made by the Corporate Social Responsibility Committee, approve the Corporate Social Responsibility Policy for the company and disclose the contents of such Policy in its report and also place it on the company's website, if any, in such manner as may be prescribed; and
b) ensure that the activities as are included in Corporate Social Responsibility Policy of the company are undertaken by the company.
.
SECTION 135 {CONTD.}
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5) The Board of every company referred to in sub-section (1), shall make every endeavour to ensure that the company spends, in every financial year, at least two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy;
Provided that if the company fails to spend such amount, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount.
.
Possible CSR Activities (Schedule VII)
Schedule VII of The Company’s Bill draws attention to an illustrative list of activities that can be carried out under the CSR Agenda;
They cover broadly, the areas of poverty, education, gender, health, environmental and sustainable development, employment, vocational skills, social entrepreneurship and contributions to major National Funds; (MDGs….)
However, the actual projects and programmes taken up by corporates could cover any other areas of their choice which they feel would address any aspect of the nation’s needs and challenges.
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Some Issues Arising Out of Section135
How will rupee values be assigned?In accounting terms what will qualify as debitable to
CSR expenditure?In what format would CSR Reports be prepared?Will a set of guidelines be available so that all
Corporates are on the same page?Will rules be framed under the Act for Section 135?How will CSR Plans be prepared?
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Issues Arising {Contd.} How will:
a cadre of CSR professionals be created in the country? The implementation expertise of NGOs and be harnessed? The capacity of major institutions such as NIRD, TISS, Delhi
School of Social Work, Universities and others be fully utilized in this endeavor?
Independent directors be trained for the preparation of plans and projects?
Projectivization of activities take place?What will be the provisions for monitoring and assessment so
that outcomes are ensured?
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Are we ready for this….either ways….I leave it to the house………….lets discuss….
Your inputs….invaluable• Please write to me….your thoughts…and how
you can contribute• Let me have your GOOD PRACTICES• Include the tough times, the problems….and how
you went about overcoming them• Elaborate your failures
