GUIDELINES
on
CORPORATE
SOCIAL
RESPONSIBILITY
for
CENTRAL PUBLIC
SECTOR
ENTERPRISES
1
CHANGE IN APPROACH
With
the
rapidly
changing
corporate
environment,
more
functional autonomy, operational
freedom etc., CPSEs today are
required to adopt CSR as a strategic
tool for sustainable growth.
CSR in the present context, means
not only investment of funds for
social activities but also integration
of business processes with social
processes.
2
Need for Linkage with
Community
An Enterprise needs to address the
concerns of the society in which the
enterprise is operating. There should be
free interaction between enterprises and
community leaders.
In order to address the social needs of
the community, viable projects need to
be identified to meet its requirements.
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Overarching Concept
CPSEs may approach Corporate Social
Responsibility
as
a
professional
management process with a long-term
strategy integrating it with corporate
strategies.
CSR activities may be planned in parallel
to the business plan, looking at every
possible opportunity to link and integrate
business plans with the social and
environmental concerns available.
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Planning the CSR Initiative
A
long-term
Corporate
Social
Responsibility Plan needs to be prepared
matching with the long-term business
plan;
 This may be broken down into short-term
and medium term plans, specifying
activities to be undertaken, budgets
allocated, responsibilities and authorities
defined,
and
measurable
results
expected.
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Implementation
The Plan must clarify implementation
guidelines involving:
 Participation of Voluntary Organizations,
Specialist Organisations and Community
Based Organizations;
 Base-line Surveys
 Documentation of the experience;
 Setting Up a CSR Hub with participation
of Deptt of PE, SCOPE and CP Sector
Enterprises;
 Monitoring and Evaluation
 Lessons learnt for future use.
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Thrust Areas




Areas related to the business of the PSE
as a natural corollary to the business.
Assistance to be mostly project based
rather than donation, so as to generate
community
goodwill,
create
social
impact and visibility.
Finalizing of time-frames and various
milestones before commencement of a
project.
Involving of suppliers in order to ensure
that the supply- chain also follows the
CSR principles.
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Thrust Areas



contd…
Emphasis on principles of Sustainable
Development, based on the immediate
and long-term social and environmental
consequences
of
the
activities
undertaken;
Improvement of the existing ecological
conditions;
Ensuring
skill
enhancement
and
employment generation by co-creating
value with local institutions and people.
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ACTIVITIES THAT WILL
NOT
COUNT AS CSR
 BENEFITS
TO STAFF;
 GRANTS
TO
ORGANIZATIONS/INSTITUTIONS;
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IMPLEMENTATION MODALITIES

CSR Activities to be carried out by Specialist
Agencies;

Such activities generally not to be conducted
by CPSE employees/staff;

Specialist Agencies to include NGOs, Institutes,
Academic
Organizations,
Civil
Society/Community-based
orgns.,
Trusts,
Missions etc., who have requisite expertise.
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IMPLEMENTATION MODALITIES Contd…
 Utmost
efforts to be made to find out the
reliability, and track record of the
NGOs/Orgns
entrusted
with
CSR
activities.
 Initiatives of State Governments as well
as Central Government Departments
/Agencies
could be dovetailed/
synergised with CSR activities.
 Avoidance of any duplication of CSR
activities by the CPSEs, the State
Governments
and
local
level
Programmes.
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Funding
CSR budget to be mandatorily created
through a Board Resolution as a percentage
of net profit in the following manner:-
 The
Type of CPSEs
Net Profit
(Previous Year)
Expenditure range for CSR
in a Financial Year
(% of profit)
(i) Less than Rs. 100 crore
(ii)
100 crore to Rs. 500 crore
3% – 5%
2% – 3%
(Subject to a Min. of 3 cr)
(iii) 500 crore and above
0.5% – 2%
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Funding Contd..
 The
CSR Budget to be fixed for each
financial year. This funding not to lapse
– must be transferred to a CSR Fund,
which will accumulate – as in the case
of non-lapsable pool for North East.
 In case CPSEs have different Profit
Centers like Factories / Plant locations,
they may be allocated separate CSR
budgets to be spent by them under the
Annual CSR Budget allocations.
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Monitoring
 Monitoring
of the CSR projects is very
crucial and needs to be a periodic activity
of the Enterprise.
 The Board of CPSEs should discuss the
implementation of CSR activities in their
Board meetings.
 The CPSE should bring a separate
paragraph/chapter in the Annual Report
on
the
implementation
of
CSR
activities/projects including the facts
relating
to
physical
and
financial
progress.
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Monitoring contd…
 The
implementation of CSR guidelines to
form a part of the Memorandum of
Understanding to be signed between
CPSE and the Government;
 The performance of CSR should be
monitored by the Ministry/Department on
regular basis.
 In
MoU
Guidelines
from
2010-11
onwards, 20% has been earmarked out
of the non-financial parameters for
performance under CSR.
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Monitoring & Evaluation
 For
proper monitoring of CSR
activities, companies may appoint a
CSR committee or a Social Audit
Committee or a suitable, credible
agency to critically assess fulfillment
of social obligations.
 CSR
projects
should
also
be
evaluated by an independent
external agency. This evaluation
should be both concurrent and final.
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Baseline Surveys and Documentation
 Impacts
made may be quantified to the
best possible extent with reference to
base line data, which need to be created
by the CPSEs before the start of any
project. Hence Base-line Surveys
mandatory.
 The
documentation relating to CSR
approaches,
policies,
programmes,
expenditures, procurement, etc. to be
put in the public domain, particularly
through the internet.
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CSR HUB

The Deptt. Of Public Enterprises, in conjunction with
SCOPE and the CPSEs will create a CSR Hub which will
undertake/facilitate the following activities:

Nation-wide compilation, documentation, and
creation of database;

Advocacy;

Research;

Preparation of Panels of Implementing Orgns.;

Promotional activities, including production of
short films, printing of brochures, pamphlets etc.;

Conferences, Seminars, Workshops – both
national and international;

Act as a Think Tank;

Any other matter as entrusted to it from time to
time by the DPE
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CSR HUB Contd…
The Hub will begin operations with funding
provided by Deptt. PE;
 It will, however, be free to receive funds from;

 SCOPE and both Central as well as State CPSEs;
 UN Agencies, reputed international agencies such as
World Bank, EU and other multilateral bodies and
orgns.;
 Reputed National and State Bodies;
 Govt. Deptts., Autonomous Orgns., Planning
Commission, Attached and Subordinate Offices,
Corporations etc.
 Philanthropic Missions, Trusts, etc. of national and
international repute.
 Decisions relating to the location and functioning of the
HUB will be taken by DPE. SCOPE will be kept informed
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of such decisions and will be free to offer suggestions,
inputs etc.
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