Mj csr hp

“ ROLE OF ASSOCIATION FOR IMPLEMENTATION

OF CORPORATE SOCIAL RESPONSIBILITY”

 DR (MS) MANJULA JAGATRAMKA

“ACCELERATE TO EXCEL ”L”

ALL INDIA HPCL SC/ST EMPLOYEES WELFARE ASSOCIATIONIIND ALL INDIA CONFERENCE OF OFFICE BEARERS ON 21 & 22 JANUARY

2015 AT THE TAJ GATEWAY –VIZAG (AP)

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Basic concepts of

C S R

CATEGORIES OF ORGANIZATIONS

For profits: Seek gain for their owners, i.e. financial returns to keep the company running.

Governments: Exist to define rules and structures within which all organizations must operate.

Non profits: Emerge to do social good when political will or the profit motive is insufficient to address society’s needs.

Preliminary definitions of CSR

The impact of a company’s actions on society

Requires a manager to consider his acts in terms of a whole social system, and holds him responsible for the effects of his acts anywhere in that system

"the continuing commitment by business to behave

ethically and contribute to economic development while improving the quality of life of

the workforce and their families as well as of the local

community and society at large".

Corporate Social Responsibility is concerned with treating the

stakeholders of a company or institution ethically or in a

responsible manner. ‘Ethically or responsible‘, simply put, means treating key stakeholders in a manner deemed acceptable

according to international norms

Corporate social responsibility emphasizes obligation and

accountability to society

Corporate social responsiveness emphasizes action, activity

Corporate social performance emphasizes outcomes, results

Corporate Citizenship Concepts

"People, planet and profit" succinctly describes the

triple bottom lines and the goal of sustainability. The phrase, "people, planet,

profit", was coined by John Elkington in 1995

KEY ISSUES IN CSR

Labour rights child labour forced labour right to organize safety and health

Environmental conditions water & air

emissions climate change

Human rights cooperation with

paramilitary forces complicity in extra-

judicial killings

Poverty Alleviation job creation public revenues skills and

technology

SUSTAINABLE DEVELOPMENT

Development that meets the needs of the

present without compromising the ability of

future generations

to meet their own needs

CARROLL’S FOUR PART DEFINITION

Philanthropic Responsibilities :-Be a good corporate citizen.

Ethical Responsibilities : Be ethical

Legal Responsibilities : Obey the law

Economic Responsibilities :-Be profitable

CSR IN EQUATION FORM IS THE SUM OF….

Economic Responsibilities -(Make a profit)

Legal Responsibilities - (Obey the law)

Ethical Responsibilities - (Be ethical)

Philanthropic Responsibilities (Good corporate citizen)

CSR IN THE PUBLIC SECTORGUIDELINES, MARCH 2010

Corporate Social Responsibilityis a concept whereby organisations

serve the interests of society by taking responsibility for the impact of

their activities on customers, employees, shareholders,

communities, and the environment in all aspects of their operations

”CSR spending”

According to voluntary guidelines;Identification of

projects/activitiesPhysichal targets with

time frameImplementation and monitoring

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.

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.

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.

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.

IMPLEMENTATIONThe 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.

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.

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.

ACTIVITIES THAT WILL NOT COUNT AS CSR

BENEFITS TO STAFF;

GRANTS TO ORGANIZATIONS/INSTITUTIONS;

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.

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.

FUNDING The CSR budget to be mandatorily created through a Board Resolution as

a percentage of net profit in the following manner:-

Type of CPSEs Expenditure range for CSR

Net Profit in a Financial Year

(Previous Year) (% of profit)

(i) Less than Rs. 100 crore 3% – 5%

(ii) 100 crore to Rs. 500 crore 2% – 3%

(Subject to a Min. of 3 cr)

(iii) 500 crore and above 0.5% – 2%

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.

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.

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.

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.

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.

CSR HUBThe 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

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 of such decisions and will be free to offer suggestions, inputs etc.