Professional Documents
Culture Documents
&
Changing Paradigm of
Corporate Social Responsibility in India
IIFT | New Delhi
16th
Jan
2015
Agenda
1
Drivers
for
CSR
in
India
Social
Compliance
2
CSR
PROVISIONS
in
Companies
Bill
Social Compliances
Standards - Scope
* Child Labor
* Working conditions - Health & Safety, Discrimination,
Working hours, Gender Equity, Wages and benefits,
Forced Labor, Employee Grievance handling proceedure
* Environment- protection and minimization of impact of
the organization.
* Others
* SA 8000
* BSCI
SA
8000
requirements
*1. Child Labour
*2. Forced or Compulsory Labour
*3. Health and Safety
*4. Freedom of Association & Right to
*5. Collective Bargaining
*5. Discrimination
*6. Disciplinary Practices
*7. Working Hours
*8. Remuneration
*9. Management System
Jalandhar,
April
2012
Shital Fibers: Toll in Jalandhar Factory Accident Rises to 23:
April 22 (IANS): The death toll in the blanket factory collapse in
Jalandhar has risen to 23. A majority of those killed in the 4 storey
factory collapse were migrant workers from Bihar and Uttar Pradesh.
:
Primark's
fashion
sweatshops
that
pay
children
just
60p
a
day!
Daily
Mail
23rd
June
2008
* Low-cost
clothes
come
at
a
high
price
for
young
children
toiling
in
the
store's
Indian
sweatshops.
An
investigation
revealed
that
children
as
young
as
9
were
working
in
squalid
conditions,
sewing
tiny
beads
and
sequins
onto
cheap
t-shirts
by
candle-light.
* The
revelations
were
highly
embarrassing
for
a
company
that
has
always
claimed
it
is
possible
to
sell
T-shirts
for
as
little
as
2
without
compromising
its
ethics.
by Ben Doherty
THE footballs used in are stitched by India's poorest children who work
in appalling, dangerous and illegal conditions for as little as seven cents
a ball.Two of Australia's most well-known football brands, Sherrin and
Canterbury, have operations in India that use banned child labour.
DHAKA, Bangladesh A fire at a 10 story garment factory north of Dhaka, the capital,
killed at least 20 people and injured dozens others.
About 5,000 people worked in the building producing pants for customers in the United
States and Europe,
Earlier, three people were killed in labor protests because some factories had not carried
out a government-mandated 80 percent increase in the minimum wage, to 3,000 taka a
month or about $43.
Karachi
Sept
12:
The
death
toll
stands
at
289,
making
it
the
largest
number
of
casualties
in
a
single
industrial
incident
in
Pakistan's
history.
Attention
is
turning
to
lax
labour
laws
and
the
culture
of
corruption
that
allows
regulations
to
be
flouted.
Workers
were
said
to
be
unable
to
escape
because
the
doors
were
locked.
It
is
thought
that
this
was
to
prevent
them
from
leaving
their
shifts
early.
Allegedly,
there
was
no
emergency
exit,
with
other
doors
blocked
by
piles
of
finished
clothes.
CSR Equation
CSR
Equation
* Reputational
Capital
comes
from
acting
ethically
* Human
Capital
comes
from
inspiring
your
employees
to
achieve
levels
of
high
performance
* Social
Capital
comes
from
good
company
management,
intelligent
leadership
stewardship
values
* Financial
Capital
comes
from
trust
that
your
business
will
deliver
as
expected
and
as
promised
* Physical
Capital
(Land,
Building,
Plant
and
Machinery)
comes
from
Financial
Capital
NaConal
Voluntary
Guidelines
on
CSR
(MCA
in
Corporate
governance
for
Dec09
listed
companies
emphasized
the
Philanthropy
(Part
of
religious
belief
system,
which
corpora<ons
followed)
role
of
business
in
(Clause
49
of
the
lis<ng
agreement
achieving
business
sustainability)
introduced
in
2000-01,
emphasis
on
transparency
&
Corp.
Gov.)
BR
reporCng
for
top
100
listed
companies
(Mandatory
based
on
market
cap.
March
31
2012,
it
is
public
disclosure
of
steps
around
ESG)
SecCon
135
of
New
Companies
Bill
ISO 26000
Index
6 Clauses
6 Chapters
Principle
Core Elements
Focus
Reference
No reference as such
Integration
CSR
PROVISIONS
C l a u s e
1 3 5
( u n d e r
Chapter
IX
Accounts
of
C o m p a n i e s )
o f
t h e
Companies
Bill
2012
deals
with
Corporate
Social
Responsibility.
Clause 135
CSR
Committee
Every
company
having
*
net
worth
of
rupees
ve
hundred
crore
or
more
or
*
turnover
of
rupees
one
thousand
crore
or
more
or
*
net
prot
of
Rupees
ve
crore
(625k
euros)
or
more
during
any
nancial
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.
Thus,
apart
from
audit
committee
and
such
other
committees,
a
new
committee
called
CSR
Committee
proposed.
CLAUSE
135
(
5)
CSR
Expenditure
/
Mandatory
CSR
Spending
COMPLIANCE
* INABILITY
TO
SPEND
AND
TO
GIVE
COGENT
REASON
FOR
THIS
AMOUNTS
TO
DEFAULT
OF
COMPANIES
ACT
AND
WILL
HAVE
LEGAL
CONSEQUENCES
* U/S
134(8),
IF
THERE
IS
VIOLATION
OF
S.134(3)(O),
THEN
THE
COMPANY
WILL
BE
FINED
BETWEEN
50K
TO
2500K
AND
THE
OFFICER
IN
CHARGE
WILL
ALSO
BE
FINED
BETWEEN
50K
AND
500K
AND
ALSO
WILL
BE
IMPRISONED
UPTO
THREE
YEARS
SWOT
Analysis
of
the
Companies
Bill
STRENGTHS
WEAKNESSES
The schedule VII is broad based, details on what will be covered and what will not,
is
missing
Even
smaller
companies
will
need
committee
of
3
directors
There
are
no
specic
principles
of
CSR
as
it
is
still
evolving
Skill
gaps
in
the
companies
to
understand
and
implement
CSR
projects
Lot
of
inputs
on
what
&
how
to
do
and
CSR
and
what
to
report.
Enough
confusions
and
inspections
fatigue
Scope
of
litigations
will
increase
OPPORTUNITIES
Moving
away
from
philonthophy
to
strategic
CSR
Competitive
advantage
Treat
CSR
spend
as
social
invest
rather
than
cost
centre
Expanding
business
volume
by
becoming
a
responsible
co.
Work
on
bottom
of
the
pyramid
market
by
developing
value
products
for
this
segment,
it
is
win
win
for
both
Gaining
social
respect
and
media
attention
Creating
brand
value
Increased
business
by
joining
supply
chain
for
big
corporations
as
responsible
partner
THREATS
CSR
may
fall
under
RTI
trap
indirectly
Legal
action
by
regulators
Disinvestment
by
overseas
investors
Pressure
from
NGOs/
Politicians/authorities
Bad
exposes
from
media
gps.
/
activists
Manipulations/
misrepresentations
Lack
of
expertise
in
the
organisations
on
CSR
policy
formulations
and
implementations
Way
forward
* Companies
will
have
to
formalise
their
processes
around
CSR
* Form
the
committee
* Make
formal
CSR
policy
* Choose
the
causes
judiciously
and
align
with
the
schedule
vii
Way
forward
* Structure
the
programmes
better
* Device
matrix
to
measure
the
impacts
of
spending
* Bring
in
professional
who
understands
the
imperatives
and
can
articulate
the
vision
of
management
* Select
partners
carefully
to
ensure
that
CSR
spend
is
relevant
and
achieves
desired
outcome
Way
forward
* The
time
of
cheque
book
philonthrophy
is
over
* CSR
will
now
become
part
of
core
strategy
of
the
company.
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