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Presented by:
CHARLES V. VICTOR
Sr. No.- 11861
Aerospace Dept
CONTENTS
Benefits of CSR
Enhanced
Relationship with
stakeholders
Saving money
on energy and
operating cost
Benefits
of CSR
Differentiating
yourself from the
competitor
Enhancing your
influence in the
industry
Attracting,
Retaining and
Maintaining a happy
workforce
Media interest
and good
reputation
Access to funding
opportunities
Increase in
customer retention
Be
ne
fit
Be
ne
fi
ts
Winning new
businesses
Dimensions of CSR
Internal
Dimension:
This
focuses
on
organizational
practices with respect to
internal
stakeholders
that
should be aligned to corporate
social responsibility standards.
External
Dimension:
This
focuses on an organizations
practices towards external
stakeholders which should be
in
accordance
with
international
standards
of
Consumer
Confidence
Interes
t Rates
Regulation/Polic
y
Economic
Corruption
Environment
Biodiversit
y
Resour
ce Use
Social
Human
Rights
Communitie
s
Labour/
Workplac
e
sustainable development.
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
All such companies shall spend, in every financial year, at least 2% of the
average net profits of the company made during the three immediately
preceding financial years,.
Audit Committee of
Board
Board of Directors
Group
Presidents
Chief
Financial
Officer
VP of Human
Resources
General
Counsel
Corporate
Responsibility
Officer
Steering
Committee
Allocation of Funds
Every year, with the approval of its Board of Directors a
budgetary allocation is to be made for CSR and Sustainability
activities / projects for that year.
The budgetary allocation will be based on the profitability of the
company, ie, Profit After Tax (PAT) of the company in the
previous year as shown
PAT of CPSE
in the previous year
(i)
2% - 3%
1% - 2%
Points to Remember
The CSR projects or programs undertaken only in India shall
amount to CSR Expenditure
The CSR projects that benefit only the employees of the
company and their families shall not be considered as CSR
activities in accordance with Section 135 of the act
Contributions of any amount directly of indirectly to any
political party shall not be considered as CSR activities
Implementation
Activities planned under CSR are to be implemented by
Specialized Agencies and generally NOT by staff of the
organization.
Such specialized agencies would include:
Reporting of CSR
Rule 8 of the CSR Rules provides that the companies, shall be
required to incorporate in its Board's report an ANNUAL REPORT on
CSR containing the following particulars:
Brief outline of the company's CSR Policy, including overview of projects or
programs proposed to be undertaken
The composition of the CSR Committee;
Average net profit of the company for last three financial years;
Prescribed CSR Expenditure
Details of CSR Spent during the financial year;
In case the company has failed to spend the 2% of the average net profit of the
last three financial year, reasons thereof;
The approved CSR Policy for the company are to be disclosed and displayed on
the companys website, if any , as per the norms.
Code of Conduct:
Issue emphasis varies by industry
Lack of vision
Scale of change
Sub-strategic management
Risk/opportunity roles
Selective hearing
Maintaining old structures
One World approaches
Uneven approaches
Non-participative management
Failure to see CSR as innovation
CASE STUDIES
In conclusion:
In this session we have looked at:
What is CSR
Why CSR is likely to be come more widely
adopted
The business case for CSR
The Value Statement (Customer,
Employee, Stakeholder and Social focus)
Reporting and Accountability options for
CSR including the Triple Bottom Line
concept
CSR and social criticism of international
organisations
Compliance Management:
Management by certification
Introduced 1995
By 2002: 37,000 factories,
112 countries
Introduced 1998
By 2005: 763 factories,
47 countries