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
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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
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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
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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)
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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 India
from the 1850s
onwards
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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, women‘s
empowerment and rural development
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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
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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
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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
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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
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CSR LAWS IN INDIA
• National Voluntary Guidelines for Social, Environmental
and Economic Responsibilities of Business (NVG) 12th
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 1st 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
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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
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Questions/ Suggestions/
Comments???
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