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PPTonCSR

Apr 04, 2018

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Mohit Agarwal
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    GUIDELINESonCORPORATESOCIALRESPONSIBILITYAndSustainabilityforCENTRAL PUBLICSECTORENTERPRISES

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    CHANGE IN APPROACH

    With the rapidly changingcorporate environment, morefunctional autonomy, operational

    freedom etc., CPSEs today arerequired to adopt CSR as a strategictool for sustainable growth.

    CSR in the present context, means

    not only investment of funds forsocial activities but also integrationof business processes with socialprocesses.

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    Need for Linkage withCommunity

    An Enterprise needs to address theconcerns of the society in which theenterprise is operating. There should be

    free interaction between enterprises andcommunity leaders.

    In order to address the social needs of

    the community, viable projects need tobe identified to meet its requirements.

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    Overarching Concept

    CPSEs may approach Corporate SocialResponsibility as a professionalmanagement process with a long-term

    strategy integrating it with corporatestrategies.CSR activities may be planned in parallel

    to the business plan, looking at everypossible opportunity to link and integratebusiness plans with the social andenvironmental concerns available.

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    Planning the CSR Initiative

    A long-term Corporate SocialResponsibility Plan needs to be preparedmatching with the long-term business

    plan; This may be broken down into short-termand medium term plans, specifying

    activities to be undertaken, budgetsallocated, responsibilities and authoritiesdefined, and measurable results

    expected.5

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    ImplementationThe Plan must clarify implementationguidelines involving: Participation of Voluntary Organizations,

    Specialist Organisations and CommunityBased Organizations; Base-line Surveys Documentation of the experience;

    Setting Up a CSR Hub with participationof Deptt of PE, SCOPE and CP SectorEnterprises;

    Monitoring and Evaluation

    Lessons learnt for future use.6

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    Thrust Areas

    Areas related to the business of the PSEas a natural corollary to the business. Assistance to be mostly project based

    rather than donation, so as to generate

    community goodwill, create socialimpact and visibility.

    Finalizing of time-frames and various

    milestones before commencement of aproject. Involving of suppliers in order to ensure

    that the supply- chain also follows the

    CSR principles.7

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    Thrust Areas contd

    Emphasis on principles of SustainableDevelopment, based on the immediateand long-term social and environmentalconsequences of the activitiesundertaken;

    Improvement of the existing ecologicalconditions;

    Ensuring skill enhancement andemployment generation by co-creatingvalue with local institutions and people.

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    ACTIVITIES THAT WILL NOT

    COUNT AS CSR

    BENEFITS TO STAFF;

    GRANTS TOORGANIZATIONS/INSTITUTIONS;

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    IMPLEMENTATION MODALITIES

    CSR Activities to be carried out by SpecialistAgencies;

    Such activities generally not to be conductedby CPSE employees/staff;

    Specialist Agencies to include NGOs, Institutes,Academic Organizations, CivilSociety/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 thereliability, and track record of theNGOs/Orgns entrusted with CSRactivities.

    Initiatives of State Governments as wellas Central Government Departments/Agencies could be dovetailed/synergisedwith CSR activities.Avoidance of any duplication of CSRactivities by the CPSEs, the StateGovernments and local level

    Programmes.11

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    Funding

    The CSR budget to be mandatorily createdthrough a Board Resolution as a percentageof net profitin the following manner:-

    Type of CPSEs Expenditure range for CSRNet 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% 12

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    Funding Contd..

    The CSR Budget to be fixed for eachfinancial year. This funding not to lapse must be transferred to a CSR Fund,which will accumulate as in the caseofnon-lapsable poolfor North East.

    In case CPSEs have different ProfitCenters like Factories / Plant locations,

    they may be allocated separate CSRbudgets to be spent by them under theAnnual CSR Budget allocations.

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    Monitoring Monitoring of the CSR projects is verycrucial and needs to be a periodic activityof the Enterprise.

    The Board of CPSEs should discuss the

    implementation of CSR activities in theirBoard meetings.

    The CPSE should bring a separateparagraph/chapter in the Annual Reporton the implementation of CSRactivities/projects including the factsrelating to physical and financial

    progress.14

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    Monitoring contd

    The implementation of CSR guidelines toform a part of the Memorandum ofUnderstanding to be signed betweenCPSE and the Government;

    The performance of CSR should bemonitored by the Ministry/Department onregular basis.

    In MoU Guidelines from 2010-11onwards, 20% has been earmarked outof the non-financial parameters for

    performance under CSR.15

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    For proper monitoring of CSRactivities, companies may appoint aCSR committee or a Social Audit

    Committee or a suitable, credibleagency to critically assess fulfillmentof social obligations.

    CSR projects should also beevaluated by an independentexternal agency. This evaluationshould be both concurrent and final.

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    Monitoring & Evaluation

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    Baseline Surveys and Documentation

    Impacts made may be quantified to thebest possible extent with reference tobase line data, which need to be createdby the CPSEs before the start of any

    project. Hence Base-line Surveysmandatory.

    The documentation relating to CSR

    approaches, policies, programmes,expenditures, procurement, etc. to beput in the public domain, particularly

    through the internet.17

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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, andcreation 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 DPE18

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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 theHUB will be taken by DPE. SCOPE will be kept informed

    of such decisions and will be free to offer suggestions,inputs etc.19

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