LEADERSHIP AND CORPORATE SOCIAL RESPONSIBILITY

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LEADERSHIP AND CORPORATE SOCIAL RESPONSIBILITY

• Dr. Bhaskar Chatterjee
• 11th January, 2013, Mumbai

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• Defining Corporate Social Responsibility (CSR)
  (Wikipedia)

Corporate social responsibility (CSR, also called
corporate conscience, corporate citizenship,
social performance, or sustainable responsible
business/ Responsible Business)is a form of
corporate self regulation integrated into a
business model CSR policy functions as a
built-in, self-regulating mechanism whereby a
business monitors and ensures its active
compliance with the spirit of the law, ethical
standards, and international norms. CSR is a
process with the aim to embrace responsibility
for the company's actions and encourage a
positive impact through its activities on the
environment, consumers, employees, communities,
stakeholders, and all other members of the public
sphere who may also be considered as stakeholders.
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Corporate India Drivers of Economic Growth

• The Indian economy has gained a lot from the role
  that corporates have been playing. In recent
  years they have become
• Key drivers of economic growth
• Delivery mechanisms for change
• Agents of innovation.
• Indian corporate houses today are pervasive and
  have tremendous reach cutting across geographies,
  ethnicities, culture, languages etc.

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Already a Track Record for Corporates in CSR

• There are many outstanding examples of corporate
  CSR activity
• Indian entrepreneurs and business enterprises
  have a long tradition of working within the
  values that have defined our nations character
  for millennia
• Indian businesses have engaged in philanthropic
  and charitable activities even from pre-colonial
  days
• However, in recent times, organizations in India
  have shown both innovation and business acumen in
  taking up CSR initiatives and integrating them
  into their business processes.

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Development-Centric Agenda for Indian CSR

• Our CSR Agenda should be ours. What we do in CSR
  should have a strong Indian orientation and we
  must use our CSR initiatives to address our
  particular Social, Economic and Environmental
  challenges
• Quite clearly the challenges of the nation should
  not and cannot be borne by government alone
• Mitigation strategies will have to include
  businesses with their resources which can be
  channeled into a diverse array of programmes to
  address these problems and to bring about a
  sustainable future for all.

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Synergy among Corporates

• There are a large variety of activities/programmes
  to which corporates may direct their energies
  and indeed many corporates have developed a great
  deal of momentum in areas of their choice
• However, these efforts are largely individual
• There should be a greater synergy among
  corporates to address some areas unitedly, for a
  greater impact - otherwise resources would be
  spread too thin for tangible outcomes to emerge
• Combined efforts will lead to results that will
  be both demonstrable and measurable.

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The Purpose of Inclusion of CSR in the Companies
Bill

• The CSR provisions of the Bill seek to create an
  enabling environment
• They will allow corporates to harness and
  channelise their core competencies as well as
  develop effective business models
• They will promote and facilitate far better
  connect between businesses and communities.

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The Purpose of Inclusion of CSR in the Companies
Bill Contd.

• They will facilitate deeper thought and longer
  term strategies for addressing some of our most
  persistent social, economic and environmental
  problems
• They will assist in synergizing partnerships
  between Corporates, Governments and Civil Society
  Organizations.

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Catalytic Role of the Bill

• The Bill also provides great flexibility to
  business and industry for strategising and
  conducting their CSR initiatives
• Intention of government and purpose of bill is
  not to make a rigid structure which will
  constrain the creativity and imagination of the
  corporates
• It will actually enhance their efforts, provide
  an even broader platform and re-energize their
  efforts.

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Possible CSR Activities (Schedule VII)

• Schedule VII of The Companies Bill draws
  attention to an illustrative list of activities
  that can be carried out under the CSR Agenda
• It could be worthwhile to concentrate our
  energies on some aspects of development where
  tangible results can be achieved within a
  relatively short period of time
• Some of these areas could be
• Toilet and Sanitation Facilities in rural
  schools, particularly for girls
• Education Projects
• Provision of Health Facilities
• Combating Malnutrition
• Skill Development.

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Project Mode

• Since the Bill contemplates measurability in
  rupee terms, corporates may well adopt the
  Project Mode to execute their Corporate Social
  Responsibility programmes. This would involve
• Specific Allocation of Financial Resources
• Baseline Survey
• Project Preparation
• Corporate CSR Plan
• Project Monitoring
• Impact Assessment
• Third Party Evaluation.

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National Foundation for Corporate Social
Responsibility (NFCSR)

• Although there is a growing consciousness in
  the area of CSR among the Indian companies,
  there is a need to bring all the actors together
  so that they can collaborate to make a
  significant impact towards the national goal of
  inclusive growth and development
• The NFCSR has been established at the IICA to
  help create a national platform for the corporate
  sector to work in partnership with the
  Government, Non-Governmental, Civil Society and
  local community organizations.

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National Foundation for Corporate Social
Responsibility (NFCSR) Contd.

• Would be a global gateway and would 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 a Database of good practices
• Research, including action research.

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THANK YOU