Village boy with indian flag

The Companies Bill of 2009 and the latest Companies Bill of 2011 mandate that companies falling in a certain category allocate at least 2 per cent of their average profits over the previous three years to corporate social responsibility initiatives. These initiatives include eradicating extreme hunger and poverty; promotion of education; promoting gender equality and empowering women; reducing child mortality and improving maternal health; combating the human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases; ensuring environmental sustainability; employment enhancing vocational skills; social business projects; contribution to the Prime Ministers National Relief Fund or any other fund set up by the Union Government or the State governments for socioeconomic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women. The CSR initiatives have to be mentioned in the financial statements. The Companies Bill 2011 has proposed that the disclosure of the financial statements contain inter alia the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year [Clause 136 (6) (o)] Do all companies have to do CSR? Every company having a net worth of Rs 500 crore or turnover of Rs 1,000 crore has to constitute a CSR Committee of the Board consisting of at least three directors and out of these three, one has to be an independent director. This is a fool-proof provision ensuring that the committee is not just a quasi-committee addressing the whims of the board, but is in fact, taking up an initiative. These companies have to spend minimum 2 per cent of net profits (average of last three years) towards CSR policy. If not spent, the board has to give detailed reasons for not spending on CSR in the Directors Report.
Duties of the committee as per Clause 135

The main role of the committee is to formulate and recommend to the board a Corporate Social Responsibility Policy which should indicate the activities to be undertaken by the company.

Additionally, the committee has to also recommend the quantum of expenditure to be incurred on these activities. Finally, the committee has to monitor the Corporate Social Responsibility Policy of the company from time to time.
A critical look

This provision has come in for some serious criticism. First, it has been said that this provision is very taxing. Adding another committee to an already complex set of requirements is not going to make life any easier for companies. Second, there is no clarity on the taxation angle. Will this amount (invested towards CSR) be eligible for tax deduction? From a public policy angle, this is tantamount to the Government trying to outsource its responsibility towards our people. When the Government is already severely taxing us for its social spending, why additionally burden corporations? Why not let them focus on benefitting their stakeholders? And many companies already do immense amounts of CSR without a debilitating regulation of this nature. The best criticism is that there were simpler ways to incentivise companies to contribute to CSR than to add bureaucratic mechanisms such as CSR committees and mandatory CSR. A simple tax-based incentive scheme might have worked much better. Martin Luther King said that there was never a wrong time to do a right thing. As India Inc is finally finding its feet, this is a classic case of the wrong thing being done at the wrong time. (To be continued) (This column has been contributed by vakilsearch (www.vakilsearch.com), an online legal guidance and legal solutions provider.) (sourced from Business Line)

NEW DELHI: To have quasi-judicial powers, levy penalty for misconduct; may clash with ICAI. The government proposes to establish a National Financial Reporting Authority (NFRA) for better monitoring of corporate financial management, going by the revised Companies Bill, 2011. NFRA is, in fact, the renamed version of the earlier proposed National Advisory Committee on Accounting and Auditing Standards. Such an authority, says the Bill which the Cabinet cleared yesterday, will have the mandate to ensure scrutiny and compliance of accounting and auditing standards. It will also ascertain the quality of the service of professionals associated with the compliance. COMPANIES KEY * * Financial reporting for body for better monitoring of corporate financial and Provisions speedy mergers, amalgamations, BILL, 2011 FEATURES management liquidation

* Concept of dormant companies to facilitate inactive companies to have minimum compliance requirements * * * * Norms Enabling Nomination for key CSR of managerial with director by provisions small personnel to (KMPs) for enhanced including social of class action accountability arrest responsibility suits SFIO wide-ranging inculcate shareholders; powers corporate recognition

* Databank of independent directors maintained by central government notified body NFRA will have quasi-judicial powers. It can order investigation, levy penalty and bar professionals from practice in case of their indulgence in professional or other misconduct. The creation of this body may create a problem with the Institute of Chartered Accountants of India (ICAI), a senior expert associated with a leading CA firm pointed out on condition of anonymity. The Bill also has provisions for a short form of merger and summary liquidation so as to ensure speedier action in certain cases. It has outlined simplified procedure, through confirmation by the central government, for compromise or arrangement, including for merger or amalgamation of holding companies and wholly-owned subsidiary/subsidiaries, between two or more small companies and for other class of companies prescribed. This is expected to ensure faster decisions on approvals for mergers and amalgamations. For other companies, these matters would be approved by the Company Law Tribunal. The Bill, to be tabled in the ongoing winter session of Parliament, has also introduced the concept of dormant companies, to facilitate inactive companies to have minimum compliance requirements and to keep track of vanishing companies. It has also brought in the idea of key managerial personnel (KMP) for enhanced accountability in corporate functioning. The Bill has provisions for the bigger companies to have whole-time KMPs. Further, there will be a serious fraud investigation office, or SFIO. It will be a statutory body with enforcement powers, including arrest, focus on protection of investors with recognition of class action suits and provision for nomination of directors by small shareholders and stricter role for auditors including rotation.

The investigation report of SFIO, filed with the court for framing of charges, would be treated as a report from a police officer. Also, it is as enabling provisions that corporate social responsibility (CSR) norms have been introduced in the Bill. So, they are not mandatory. Thus, every eligible company one having net worth of Rs 500 crore or more, or turnover of Rs 1,000 crore or more or net profit of Rs 5 crore or more during any financial year will have to constitute a CSR committee of the board to formulate any companys CSR policy. The policy will have be included in the boards report; it would be placed on the companys website. The company board will ensure that activities included in the CSR policy are undertaken. At least two per cent of the companys average during three immediately preceding financial years will have to be spent in every financial year on the policy. In case the company fails to comply, it will give suitable reasons in its boards report. The Bill, in a bid to ensure independence and protection of interests of non-promoter shareholders, has provided specific attributes, numbers, tenure and liability of the independent directors. A data bank has been proposed to be maintained by a body or institute notified by the central government to facilitate appointment of such directors. (Business Standard)

GUWAHATI: The Confederation of Indian Industries (CII) organized a conference cum business platform on Corporate Social Responsibility (CSR) the emerging agenda to promote social inclusiveness on 23th September 2010. In his welcome address, Dr Bhupati Kumar Das, chairman of CII Assam State Council and Managing Director of Numaligarh Refinery Limited said that the existing CSR initiatives are practiced largely by the Central PSUs and a handful of private sectors whereas the scope is enormous in this field. The public sector companies have played a stellar role in this context and they have gone beyond a narrow perspective of business that was confined to mere profitability, to encompass initiatives that are for the social good, he said. The key objective of the conference was to bring the stakeholders-industry, NGOs, civil societies and government on a common platform to sensitize and create awareness on the new and emerging scenario of CSR. Another important objective of the conference was to arrive at an action plan to make CSR practices more visible so that more and more companies can come forward to make CSR a part of their board room agenda. The Assam State Council of the CII has been working on a comprehensive agenda focusing on trade and investment promotion and policy advocacy. One of our special focuses of work relates to entrepreneurship creation and helping the MSME sector to become more competitive, Das said. The participants also shared their experience on successful business model where CSR is integrated and internalized into core business philosophy.

By Suresh Kr Pramar

Though

voluntary

the

recently

issued

National

Voluntary Guidelines on Social, Environmental & Economic Responsible Business are likely to place Corporate Social Responsibility in India on a firmer footing. The Nine Principles and Core Elements included in the Guidelines are old hat, well known to practitioners. The stress on implementation indicated in the Guidelines will force Business to revisit their present CSR practices. Three important issues included in the Guidelines, if taken up with the seriousness they deserve, will make CSR in India more meaningful and wholesome. These have been embedded into the Guidelines prominently. However there is still strong doubt whether desired results can be achieved without mandatory provisions. The Guidelines has said all Principles are equally important and non-divisible. They are to be adopted comprehensively. It lays down that Business aspiring to be responsible will have to adopt each of the nine Principles in their entirety rather than pick and choose what might suit them. Reading through the Principles and the Core Elements it is clear that the Guidelines cover the whole gamut of CSR. They cover not only community service but also corporate governance, customer relationships, environment, supply chain management etc. Business will now have to look at all these aspects with greater seriousness to qualify to be called responsible business. Most Corporates in India, even the much awarded and widely recognized responsible units, have been concentrating on one or two aspects of CSR while ignoring other issues. Most popular among Corporates are Community Development Projects and Environment. This, because they offer the possibilities of PR and Brand Building. Issues like supply chain management, customer relations, corporate governance have been largely ignored. There are companies in India, both in the private and public sector, which can be faulted in these areas of CSR. A glaring example is Satyam, which boasted of an excellent community service programme but fell because of its lack of above board corporate governance.

The lack of seriousness is evident in the recent survey which revealed that less than one-third of Indias top firms file reports on their corporate responsibilities and only 16 percent actually have a strategy on this. The survey also found that there is lack of clarity on how companies arrive at decisions to invest in these. Very few engage stakeholders, including suppliers, customers, regulators, employees and contractors in establishing their CSR initiatives. The Guidelines have placed considerable emphasis on the issue of Supply Chain management. Repeatedly in all the Nine Principles and Core Elements Business has been advised to promote these principles across the value chain. Distortions along the supply chain have in the past spelt disaster to well known international bands like Nike. In India the larger enterprises sourcing their supplies and even finished goods, from SMEs have paid little attention to the working conditions in these units. They have knowingly and unknowingly ignored the irresponsible production methods adopted by SMEs.

The larger units are in many ways responsible for the poor working conditions available in SMEs. In an effort to enhance their own profitability the larger units squeeze SMEs into providing goods and services at rock bottom prices which sometimes is well below the cost of production. This reduces the margins available to SMEs forcing them to further cut production costs. This cut is very often in the salaries and wages of the workers who are forced to work in sweat shop conditions. The Guidelines have set out a separate chapter for SMEs in the Guidelines. It points out that SMEs impact the environment and society in is own way, despite the small number of employees. It points out that globalization has exposed these units to global competition. Global buyers are basing their sourcing decisions not only on traditional commercial consideration, such as price, quality and delivery schedules but also on compliance with social and environmental norms in the work place Health and safety, social equity in employment and production and ecological compatibility of products and services have become strong considerations for foreign buyers. Even Indian buyers are incorporating these requirements into their purchasing decisions. Another issue of importance is the emphasis on Consumer Rights. The Guidelines have indicated that the responsible company will be responsible for the goods and services they produce from the designing to the final disposal of the product/service after use. It points out that all stages of the products life cycle, right from design to final disposal of the goods and services after use, have an impact on society and the environment. It exhorts business to extend their processes to cover the entire value chain, from the sourcing of raw materials or process inputs to distribution and disposal. It says that everyone connected with

the product or services designers, producers, value chain members, customers and recyclersare aware of their responsibilities. To protect the customers the Guidelines asks companies to raise consumer awareness of their rights through product labeling, helpful marketing communications and customer education. Business will have to promote safe usage and disposal of its products or services. They will also be responsible to promote sustainable consumption, including the recycling of resources. While recognizing that the basic aim of a business entity is to provide goods and services to its customers in a manner that creates value for both it says no business can exist or survive in the absence of its customers. Enterprises will strive to make available goods that are safe, competitively priced, easy to use and safe to dispose off for the benefit of their customers. Businesses have an obligation to mitigating the long term adverse impacts that excessive consumption may have on the over all wellbeing of individuals, society and the planet. With Nine Dos and several Core Elements attached to these Dos expecting business to deliver on their CSR responsibility seems a pipe dream. Surveys have shown that Business has yet to take their responsibilities seriously. Even the Minister has said that the response from business on voluntary CSR has been well below the mark. (Suresh Kr Pramar, is Managing Trustee, Global Gandhian Trusteeship & Corporate Responsibility Foundation and the Executive Director, Centre for Training & Research in Responsible Business. A veteran journalist he is presently actively involved in promoting CSR through his publication CRBiz and by conducting workshop on Corporate Social Responsibility. He can be reached at suresh.pramar@gmail.com)

NEW DELHI: In response to the overwhelming concerns shown by the Standing Committee of Parliament on Finance (SCF), which thoroughly examined The Companies Bill, 2009, on the extent of Corporate Social Responsibility (CSR) being undertaken by corporates and the need for a comprehensive CSR policy, the Ministry of Corporate Affairs have agreed that the Bill may now include provisions to mandate that every company having [(net worth of Rs.500 crore or more, or turnover of Rs.1000 crore or more)] or [a net profit of Rs.5 crore or more during a year] shall be required to formulate a CSR Policy to ensure that every year at least 2% of its average net profits during the three immediately preceding financial years shall be spent on CSR activities as may be approved and specified by the company. The Directors shall be required to make suitable disclosures in this regard in their report to members. In case any such company does not have adequate profits or is not in a position to spend prescribed amount on CSR activities, the directors would be required to give suitable disclosure/reasons in their report to the members. While welcoming the Ministrys acceptance of the Committees suggestion to bring Corporate Social Responsibility (CSR) in the statue itself, the Committee feels that separate disclosures required to be made by companies in their Annual Report by way of CSR statement indicating the company policy as well as the specific steps taken thereunder will be a sufficient check on noncompliance.

New Delhi: Indian Express reported that in a move that aims to guide or direct India Incs resources towards affirmative action, the ministry of corporate affairs has suggested that funds spent on training and skills enhancement can be counted as corporate social responsibility. The new Companies Bill, to be tabled in Lok Sabha, proposes that companies voluntarily spend 2 per cent of their profits in CSR activities and report these to their shareholders in annual reports. With an increasing feeling among a section of the political class that the industry is doing precious little for the scheduled castes and the scheduled tribes, the government has been impressing upon India Inc to improve their employability prospects through skilling. Even as the Prime Ministers Office periodically reviews the progress on affirmative action by the industry, the MCAs new plan will also prompt India Inc to put its money where it is needed most today. We are looking at a structured regime where India Inc may execute certain measures and be considered compliant with CSR activities, said an official in the MCA. These activities have to be reported in a particular format by companies in their annual reports. The information they need to provide include money spent on CSR, details on vocational training provided, institutions and NGOs engaged for extending training, number of people trained and/ or absorbed, or self employed, the official added. The MCA has sought to blend the demands of affirmative action and CSR such that companies are better guided in their social responsibility spending. Both these aspects have come under intense scrutiny by both the shareholding community and political class. In the long run, it is expected that such expenditure will not only enhance a companys value and economic performance, it also adds tremendously to its goodwill, brand and reputation. Recently, at a conference organised by the Bombay Chamber of Commerce and Industry, Chief Election Commissioner SY Qureshi had said, CSR is not charity but a question of your very survival We need a Warren Buffet and Bill and Melinda Gates to teach our corporates the need for CSR. What you do is not CSR but corporate social compulsion. In December 2009, the ministry had announced voluntary CSR norms on how firms can deal with the expectations of stakeholders and society. A Parliamentary standing committee had proposed

later that the new Companies Bill must require companies with a networth of Rs 500 crore and above or turnover of Rs 1,000 crore or above mandatorily spend 2 per cent of their profits towards CSR activities. The ministry, however, plans to make such CSR spend voluntary.

NEW DELHI: The Government today introduced the new Companies Bill, retaining some contentious provisions like 2 per cent yearly spend on CSR activities and a fix term for independent directors. According to the Companies Bill 2011, every company with a networth of Rs 500 crore or more, or turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more in a financial year will have to form a Corporate Social Responsibility (CSR) Committee, consisting of three or more directors, of which at least one director should be an independent director. The Board of every company shall make every endeavour to ensure that the company spends, in every financial year, at least two per cent of the average net profits of the company made during the three immediately preceding years in pursuance of its CSR Policy, the Bill said. It added that in case the company fails to spend such amount, the board shallspecify the reasons for spending the amount. The Bill also limits the term of independent director in a company to five consecutive years. The independent director can be reappointed on the board after passing of a special resolution by the company and disclosure of such appointment on the boards report. Further, regarding appointment of auditors, the Bill said that a company will have to rotate an audit firm or an auditor every five years. Introduced in the wake of the Rs 14,000-crore Satyam fraud, the fresh bill proposes to enhance the accountability of companies, seeking greater disclosure and protection of investors and minority shareholders, the Statement on Objects and Reasons of the Bill said. In view of changes in the national and international economic environment and growth in the economy, the need was felt to enact a new law, it said. (PTI)

NEW DELHI: The Companies Bill 2011, introduced in Parliament, has strict expenditure and disclosure guidelines for CSR activities of companies though it falls short of punishing noncompliance. The Bill makes disclosure of CSR spend mandatory for companies with a net worth of Rs 500 crore or more, or turnover of Rs 1,000 crore or more, or a net profit of Rs 5 crore or more during any fiscal. It asks these companies to earmark two per cent of their three years average profit for CSR and disclose the manner in which it was carried out. Mandatory disclosure but no penalty Companies that fail to spend this much will not be penalised in any way, though they will have to provide sufficient reasons for non-compliance. Reactions to the CSR guidelines were positive. Its two cheers for the government on CSR, said Manoj Kumar, managing partner of corporate law firm Hammurabi& Soloman. While making a budget for CSR is mandatory, the two per cent norm is not mandatory for corporates. CSR by corporates can only be achieved through making incentives to corporates more attractive. More than half of the Bombay Stock Exchange (BSE) listed companies would qualify for making mandatory disclosures of CSR activities undertaken by them during the financial year 2010-11, an analysis by Business Standard Research Bureau using Capitaline data shows. A huge kitty Business Standard analysis of the 2010-11 performance of 3,150 BSE listed companies show that 1,519 firms would have qualified for governments new CSR directive, if the law was in place on Wednesday. The total money these companies would have put together for CSR would be Rs 7,384.15 crore. The Bill prescribes 10 broad categories of activities as CSR that include poverty eradication, promotion of education, and women empowerment. Financial donations are accepted as CSR, provided the amount goes to the Prime Ministers National Relief Fund or funds set up by the Central Government or the State Governments for socio-economic development and relief. The director boards of companies that fall in the mandatory disclosure criteria will need to constitute a CSR committee of three or more directors, one of them compulsorily being an independent director. This group will formulate and recommend a CSR policy to the board of directors which shall indicate the activities the company has chosen to undertake from the government notified list of CSR activities. Among activities, companies can also choose from reduction of child mortality, improving maternal health, fights diseases such as AIDS and malaria, environment protection, skill development programmes and social business projects. Contributions to such government funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women will qualify for CSR. (Business Standard)

Companies and the Government in India appear to be squaring off over CSR provisions in a bill before parliament that could see business paying a two per cent levy to be spent on socially and environmentally responsible practices. At the heart of the debate is Salman Khurshid, the Minister of Corporate Affairs, who has consistently indicated that the Companies Bill, 2009 will incorporate provisions for CSR. In October last year, Khurshid said the objective of incorporating CSR in the Companies Bill, 2009 was to guide corporate India on how to make money in a way that helps inclusive growth. The Bill, he said, would make CSR an integral part of corporate governance and both corporate governance and CSR would come under the Act. In February this year, at the launching of the FICCI-Aditya Birla CSR Centre for Excellence, he indicated that CSR should be made quantifiable and urged companies to debate the idea of establishing a CSR exchange to deal in CSR credits on the lines of carbon credits. His comments were interpreted in the media that this would mean that a company failing to be socially or environmentally responsible would need to purchase CSR credits from other companies that have earned them. Khurshid urged companies to ponder over conflicts of interest where a company produces consumer products that are deemed harmful to health. If there is a business that is inherently destructive and unwholesome, a way has to be found to offset the negativity of that business, he said. At a conference in March this year, Khurshid again spoke about the importance of CSR and corporate governance. He stated that corporate governance can be a laboratory for good political governance in India, and added that government can be the catalyst when society sets expectations on various aspects of corporate governance. He noted that making development sustainable should be a priority, and that this was only possible through CSR. He also said that the Government does not want to police companies on CSR, and they should therefore take the initiative to transform CSR from a philosophy into real deliverables. In October, it was reported that Khurshid was not keen on making CSR compulsory, and would not have any mandate on it in the new Companies Bill. He said, I think CSR is a way of doing business. It is not just setting aside a certain amount, but is a part of the business itself. All such issues must be reflected in the formulation on CSR when the bill finally gets passed by parliament. This is what we are working on. By October, a parliamentary standing committee on finance had vetted the Companies Bill, 2009 and had reportedly agreed to the suggestion that some Indian companies might have to set aside two per cent of their average net profits during the preceding three years to meet CSR spending requirements. The standing committees report indicated that the Ministry of Corporate Affairs had agreed to the suggestion. The committee, headed by former finance minister Yashwant Sinha, suggested that companies with a net worth of around US$112 million or more (or those that have an annual turnover of at least US$125 million, or with net profits of US$1 million or more) be covered by the norms. As the Business Standard reported on 8 September, if the proposal was accepted by the Government and

Parliament approved, based on performance over the last three financial years (up to March 2010), 3,434 companies would have to set aside nearly US$1 billion for CSR. As might be expected, all this has led to concern from the business community, particularly over the fact that that bill had not listed activities that would be qualified to meet CSR spending requirements. Industry chambers have opposed the proposed move to make it binding upon companies to set aside two per cent of their profits for philanthropic activities. In early November, Khurshid reassured companies that CSR provisions in the new Companies Bill will not be mandatory. He stated that it would not be compulsory for companies to set aside two per cent of their profits for CSR purposes, but added that the government would seek an explanation if they failed to do so. What we are doing is not a directive. We are working on a target. It will have to be explained to the board of directors, shareholders why the target has not been met. Its an aspirational target 2 per cent, 3 per cent, whatever it is, its not directional. First it was purely voluntary. Now it is going to be subject to non-compliance. Next it could be something more. Right now explanations will have to be given in the directors report (about) why the CSR target was not met, he said. The Ministry of Corporate Affairs (MCA) is now awaiting expert comments on the feasibility of setting up a CSR credit exchange, on the same lines as commodity and stock exchanges. We are holding consultations with ministries and different sectors on how this (CSR credit exchange) can be worked out. We are still to receive report from economists, industry, Planning Commission and others. Once they give their report, we will hold further consultations, he said. This appears to be a back down from an MCA press statement in September that said: The ministry of corporate affairs has agreed that the Bill may now include provisions to mandate that every company shall be required to formulate a CSR policy to ensure that every year, at least 2% of its average net profits during the three immediately preceding financial years shall be spent on CSR activities as may be approved and specified by the company. Time will tell what happens, but the legislating of various aspects of CSR in India is not new. The UK Companies Act and Hong Kongs draft Companies Ordinance both incorporate aspects of CSR into company law. India is following suit. It will be interesting to see what happens in India, and whether other countries in Asia follow suit. My guess is that they will.

SHINGHAI: Chinas Ministry of Environmental Protection on 20 December launched the HCFC Phase-out Management Plan (HPMP), a US$270 million project to cut consumption of Hydrochlorofluorocarbons (HCFCs) by 1 January 2015. The HCFC-phaseout in China is impacting chemical production, foam, industrial and commercial refrigeration, air conditioners, refrigeration servicing and solvent sectors, whose total output amounts to billions of Renminbi and will involve tens of thousands of enterprises and millions of workers. At the launch, Chinas central governmental Ministries, industrial associations, local environmental protection bureaus, research institutes and universities as well as over 100 large companies, which produce and use HCFCs, guaranteed their support to the programme. In addition 12 selected companies representing the PU, XPS, room air conditioning, industrial and commercial refrigeration sectors signed the voluntary pledge to join hands for the conversion of their production lines as specified under the approved HPMP plan. China is the largest producer, consumer and exporter of HCFCs in the world: more than 70% of global HCFC production, and 50% of total consumption of developing countries. Therefore, the phaseout of HCFCs in China will play an essential role for the successful implementation of the Montreal Protocol. In addition, it will also positively affect the mitigation of the global climate change due to their high GWP. However, in the past three years, the HCFCs in China has been increasing at 11% annually, said Mr. Lijun Zhang, Vice Minister of Environmental Protection of China. Mr. Zhang added that as a responsible developing country, China will earnestly live up to her promises and meet her commitments. In his speech, Mr. Zhang requested that industry comply with the HPMPs target, and urged the local Environmental Protection Bureau (EPBs) to strengthen their capacity for effectively enforcing the HCFC production and consumption control measures. HCFCs are mainly used in China as refrigerants for air-conditioners and industrial and commercial refrigeration, as well as a blowing agent for foam and as solvent. Under the Montreal Protocol on Substances that Deplete the Ozone Layer, all Parties must gradually reduce and eventually phaseout their production and consumption of ozone-depleting substances (ODS), including HCFCs. Labeled as the Factory of the World, Chinas phase-out of HCFCs is an ambitious mission, impacting industries which will have to convert hundreds of assembly lines to meet Chinas obligations as a signatory to the Montreal Protocol. Based on Decision XIX/6 of the Meeting of the Parties in 2007, China must achieve a freeze in baseline consumption (2009-2010 average) by 2013 and a 10% reduction by 2015. The countrys State Council enforced the ODS Management Regulations on 1 June 2010 to provide legal basis for the ODS phase-out work. The China HPMP has been well developed and has set the roadmap to meet these targets. We are therefore optimistic that the government, industries, relevant international organizations, and other key stakeholders will work together to ensure the success of this programme, said Mr. Christophe Bahuet, United Nations Development Programme (UNDP) Country Director of China, the lead implementing agency for Chinas HPMP initiative.

Through the HPMP, 45,000 metric tons of HCFCs, or about 17% of Chinas total amount of controlled HCFCs use, will be eliminated. In addition, as part of the project, the new technologies to replace the HCFC technologies currently used by the industries will significantly reduce Greenhouse Gas (GHG) emissions in the country. The funding for the HPMP was approved by the Executive Committee of the Multilateral Fund for the implementation of the Montreal Protocol in July 2011 to assist China in their historic commitment on environmental protection. UNDP, the UN Environment Programme (UNEP), the UN Industrial Development Organization (UNIDO), the World Bank and the Governments of Germany and Japan are assisting China in their HPMP, and all participated in the launching event to lend their support. The Chairman of the Executive Committee and the Chief Officer of the Multilateral Fund Secretariat, representatives of donor member from Australia, the Netherlands, Switzerland and the United States were also invited to the meeting. We at UNEP are very enthusiastic in assisting the government of China in their capacity-building and public awareness campaign on the phase-out of HCFCs. We very much appreciate the strong political commitment made by the Government of China in the implementation of the Montreal Protocol, and we are also very pleased to witness the pledge made by the industry said Mr. Zhang Shigang, UNEP Coordinator in China in his address to participants at the launch. Several Chinese celebrities have also expressed their support in the advocacy of ozone layer protection, including UNEP Goodwill Ambassador and Chinese actress Li Bingbing and worldrenowned artist and UNEP Patron for Arts and Environment Profressor Yuan Xikun, who are both involved in voluntary projects for this cause.

Seasons of autumn, winter & spring are the seasons of festivals and festivities for different Indian communities. Starting from Ganesh chaturthi, through Durga Puja, Diwali, and until Holi, we celebrate a trail of a wide spectrum of rituals and celebrations as part of our rich cultural heritage.

There is no doubt that celebration o these traditions and festivals play great role in maintaining religious and spiritual reinforcement the midst of naturs rhythm, seasonal changes and the cycle of life and death. This also helps in maintaining unity and integrity in the society. We begin the celebrations in the name of culture and then make them so much commercial and artificial that we ignore the far reaching consequences of air, water and soil pollution caused by these celebrations and the impacting economic burden on our society. Water Pollution We are careless about how we are polluting our limited drinking water resources, through the practice of idol immersion in various ponds and lakes. According to a study approximately 1.5 lakhs of Ganesh idols are immersed in Mubai sea beaches, whereas in West Bengal, about 50,000 idols are immerged in the Ganges after Durga puja. The problem is spread throughout the country and due to use of many non-biodegradable substances for making such idols the natural aquatic ecological balance is totally destroyed. It is found that after immersion of idols, the concentration of substances like calcium, magnesium, molybdenum, silicon and heavy metals like arsenic, lead and mercury increases after immersion of idols into the water bodies. Metals like lead and mercury are hazardous to our health as they can damage the heart, kidney, liver, circulatory system and central nervous system. A joint survey by the Indian Toxicology Research Institute and the West Bengal Pollution Control Board found that one gram of color used for painting the idols has a high quantity of lead, ranging from 6 to 10 micrograms. Heavy metals like lead, cadmium and chrome used in the paints are not easily assimilated in an aquatic environment, leading to contamination of water bodies thereby affecting various fish and prawn species. They reach human body through food chain, affecting heart, kidney, liver and nervous system and causing memory loss, allergic reactions, hypertension, depression, mood swings, irritability, poor concentration, fatigue, sleep disorders, vascular occlusion, neuropathy, auto immune diseases and many other deadly diseases. They also massively affect the flora and fauna of river, pond, lake and coastal areas. Another major pollutant is plaster of paris, which is based on Calcium sulphate hemihydrates and is now replaced clay for making bigger and colorful idols. When idols made of plaster of paris are immersed in water, they change their form to gypsum slowly, adding hardness to the water. As this is insoluble in water, it contaminates water bodies by forming an impermeable layer on the bottom of pond or lake. Along with idols decoration materials viz: clothes, polish, paint, ornaments, cosmetic items, flower garlands, bamboo sticks, polythene bags etc. also goes in to water bodies resulting in alarming increase in pollution levels. Studies also show that oxygen level of water bodies falls by about 50% immediately after massive immersion of idols. Air Pollution The air pollution level in our big cities is always a growing cause of concern, with the Respiratory Suspended Particulate Matter (RSPM) in dust, fumes, smoke and gases, a way above permissible limits. This level further takes a quantum jump during festivals, the main culprit being crackers,

inflammable substances and artificial colors/fumes. The main toxins which are discharged in to the atmosphere are oxides of Nitogen, oxides of Sulphur, acidic gases, hydrocarbons, oxides of nitrogen, oxides etc. Crackers manufactured using barium suphate, sodium nitrate, sulphur and potassium chlorate, and sometimes using cheap materials like mica, acids, alkalis and pieces of glass, when burnt during Diwali and other festivals, emit gases such as sulphur dioxide, oxides of nitrogen, oxides of heavy metals and particulates that pollute air and cause eye irritation, abrasion, respiratory disorders, allergies and even cancer. These air pollutants impacts widely the human vision, health, and can lead to lung cancer, cardiovascular complications etc. and also can affect vegetation. Due to lack of a strict enforcement of environmental laws, pollution of various types is generated in large amounts all across the country, a majority of which is due to the unnecessary pompous celebration of religious festivals and which coupled with poor knowledge of waste disposal management, not only leading to devastating consequences but also have irreversible and far reaching consequences of environmental degradation. Economic Burden In India where 37.3% of rural and 22.5% urban population are below poverty line, do we justify the money spent on ceremonies and festivals as a worthy expense? Where people do not have enough money to get food twice daily, but still they are saving something for ceremonies. In a survey conducted by some professional microfinance institutions, households were asked about the types of loss or unexpected spending they have experienced in the last one year. 42% have claimed to have experienced crop loss & 38.5% claimed to have livestock loss but, surprisingly, 81.5% of the households responded that they have spent some money on marriage, funeral & ceremony expenses in the last year. Despite of the recent devastating flood situation in different states, the festivals did not lose their luster and tempo. This is seen that on an average Rs. 5-10 lakh is spent on a Durga Pandal, which involves use of bamboo, wooden planks, clothes and lots of labor and architect. This way we spend crores of Rupees lavishly for the sake of satisfying our pseudo-religious sentiments. Because of the above reasons our rich culture has turned into a vulture biting us physically, socially and economically. The readers must think, whether should we celebrate at the cost of our environment and economy or should we proceed towards making our celebrations eco-friendly and take development issues at the priority. Remedies We need to have strict laws enforcing prevention of air and water pollutions. The Puja committees should get registered under legal framework of Govt. and should follow strict guidelines to use ecofriendly methods of celebration and cases may be fought to prevent any misuse of the laws during festivals. The youth and puja committees who enjoys the pride and privilege of collecting chanda and celebrating various pujas, should come forward to think of infrastructure and development issues at the priority, for example: they can minimize the decorum of Puja in a season and take responsibility

to develop a nearby poor infrastructure like bus stop, or a toilets inside bus stop, which shall be permanent in nature. Instead of temporary idols, we should think of stone or metal idols which are permanent and can be worshipped every year. If Idols are to be immersed, make sure they are made with clay and natural colors and not with chemical colors and non-biodegradable materials like plastics, thermocol etc. Flowers and other biodegradable materials used in worship may be used for composting. Lets not celebrate festivals blindly, lets be spiritual and religious in true sense. (Dr. Debadutta Mishra Currently working in CSR of Jindal Steel and Power Limited, Raigarh, Chhattishgarh and looking after disability rehabilitation and development issues. Earlier worked at Jewels International, Bhubaneswar and Byrraju Foundation, Hyderabad and having total experience of more than 10 years. Academic background: MBA, MDRA (Masters of Disability Rehabilitation Administration), Bachelor in Occupational Therapy)

Tech giant Google announced on Wednesday it is donating $11.5 million to several coalitions fighting to end the modern-day slavery of some 27 million people around the world. In what is believed to be the largest ever corporate grant devoted to the advocacy, intervention and rescue of people being held, forced to work or provide sex against their will, Google said it chose organizations with proven records in combating slavery. Many people are surprised to learn there are more people trapped in slavery today than any time in history, said Jacquelline Fuller, director of charitable giving and advocacy for Google. The good news is that there are solutions. The Washington, D.C.-based International Justice Mission, a human rights organization that works globally to rescue victims of slavery and sexual exploitation, was chosen by Google to lead the efforts. It will partner with Polaris Project and Slavery Footprint and a handful of smaller organizations for the multi-year effort to rescue the enslaved, push for better infrastructure and resources for antislavery enforcement agencies overseas, as well as raise awareness here in the United States and help countries draft anti-slavery legislation. Each year we focus some of our annual giving on meeting direct human need, Fuller said. Google chose to spotlight the issue of slavery this year because there is nothing more fundamental than freedom. Gary A. Haugen, president of the International Justice Mission, said the coalition would focus on three initiatives: A $3.5 million intervention project to fight forced labor in India; a $4.5 million advocacy campaign in India to educate and protect the vulnerable; and a $1.8 million plan to

mobilize Americans on behalf of the millions currently at risk of slavery or waiting for rescue around the world. The remaining $1.7 million will go to several smaller organizations working to combat slavery. Its hard for most Americans to believe that slavery and human trafficking are still massive problems in our world, said Haugen. Googles support now makes it possible for IJM to join forces with two other leading organizations so we can bring to bear our unique strengths in a united front. Those leading the U.S. efforts will meet in Washington on Wednesday to kick off the joint initiative. The project will focus on improved legislation to protect vulnerable children and adults in the United States, as well as a push for more accountability and transparency in the U.S. supply chain by retailers and manufacturers to make sure their products are slave-free. The trafficking of women for the sex trade is common in big American cities. Some illegal immigrants find themselves forced to work in sweatshops, in private homes as domestic servants or on farms without pay under the threat of deportation. The new effort will launch initiatives that ordinary Americans can take to help abolish modern-day slavery, such as understanding how their own clothing or smart phones might contain fabrics or components manufactured by forced labor.
Whether its by calling the national human trafficking hotline, sending a letter to their senator, or using online advocacy tools, millions of Americans will be able to use their voices to ensure that ending this problem becomes a top priority, said Bradley Myles, executive director of Polaris Project.

Google.org the philanthropy arm of the Silicon Valley firm announced the anti-slavery effort as part of its $40 million in end-of-year giving that brings its charitable donations to more than $100 million in 2011. The grants will also support science, technology, engineering and math education; girls education in the developing world; and the use of technology for social good. Justin Dillon, the founder of Slavery Footprint, said the Google grant would allow the movement to move from anecdote and emotion, to tangible action that could make a dent in history. Having a company like Google recognize the value of our work marks a major turning point for the anti-slavery movement, said Dillon, whose nonprofit gives consumers some tools to determine whether slaves were used in the making of their goods and teaches them to use social media to sound off about slavery and engage with corporations about their supply chains. (AP)

EXPLANATORY COMMISSION Background

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PROVIDEF O R T H E E S T A B L I S H M E N T O F T H E C O R P O R A T E S O C I A L RESPONSIBILITY

T h e B i l l s e e k s t o e s t a b l i s h t h e C o r p o r a t e S o c i a l R e s p o n s i b i l i t y Com mission for the control and regulation of the activities of CorporateOrganizations in Nigeria. It is

entitled A Bill For An Act To Provide For The Establishment Of The Corporate Social Responsibility Commission. Corporate Social responsibility refers to the obligation of an organizationto seek actions that protect and improve the welfare of the society along with its interest. Otherwise referred as organizational social responsibility,it is a term often used in reference to the concept of social responsibility asapplied to business organizations to Corporate Social Responsibility as the continuing the host commitment community. T h e W o r l d B u s i n e s s C o u n c i l f o r S u s t a i n a b l e D e v e l o p m e n t ( W B C S D ) defines by b u s i n e s s t o b e h a v e e t h i c a l l y a n d c o n t r i b u t e t o e c o n o m i c d e v e l o p m e n t while improving the quality of life of the workforce and their families aswell as the local community and the society at large. The Objective of the Proposed Bill Organizational Social Responsibility movement started in the 1960s and witht h e e m e r g e n c e o f v a r i o u s s o c i a l m o v e m e n t s e . g . c i v i l r i g h t s , w o m e n liberation

environment-protection association in the United States of America. These bodies helped to enlighten the public that organizationshave social responsibility to the host communities. In modern times, the dire need to solve the problems of organizations andtheir host communities brought in a new perspective in Corporate SocialResponsibility. should The make generally profit accepted through expectation legal means, now and is at that the corporateorganizations

samet i m e i d e n t i f y h u m a n r i g h t s , e m p l o y e e r i g h t s , a n d t h e c h a l l e n g e s o f envir onmental protection and community development as core values incorporate social responsibility. It is also generally accepted that society is b e s t s e r v e d b y t h e r e g u l a t o r y h a n d s o f t h e l a w a n d p o l i t i c a l process in