CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

Course Code: 2T6

Module 4

Identifying Key Stakeholders

of CSR & their Roles
CO4

▪ Given the details pertaining to government and

non government organizations, the future
manager will be able to ascertain the role of
various stakeholders in CSR activities and
incorporate the guidelines issued by regulatory
guidelines in CSR policy.
Introduction

▪ Stakeholders can be broadly described as any

individual or a group who is affected or may give
an impact on the achievement of an organization’s
objectives.
▪ Stakeholders can affect or be affected by the
actions, policies, strategies, and objectives of the
organization in a direct or indirect manner.
Role of Public Sector in
Corporate

▪ Role of Public Sector in Indian Economy:-

– Generation of Income
– Capital Formation
– Employment
– Infrastructure
– Strong Industrial Base
– Export Promotion and Import Substitution
– Contribution to Central Exchequer
– Checking Concentration of Income and Wealth
– Removal of Regional Disparities

▪ The above guidelines form the basis of all policies of

the government to regulate the private sector.
Public Sector & CSR

▪ Department of Public Enterprises (DPE) Guidelines on CSR

and Sustainability for CPSEs
– CSR is mandatory for all profit making CPSEs.
– It is also mandatory that CPSEs must have their Board approved CSR
Policy.
– The amount of expenditure on CSR should be as prescribed in that Act
& CSR Rules.
– CSR should look for and achieve Sustainable Development needed for
society.
– CSR should be focusing on the local area need & concerns.
– Annual reporting is also mandated in the annual report of the
company.
– Baseline/need survey should be done prior to taking up CSR activities.
– All CPSEs are expected to act in a socially, economically and
environmentally sustainable manner at all times.
Programs for Voluntary Action
1/3

▪ Programs related to the following points:-

– Eradicating hunger, poverty and malnutrition, promoting health
care including preventive health care and sanitation
– Promoting education, including special education and employment
enhancing vocation skills especially among children, women,
elderly, and the differently-abled and livelihood enhancement
projects
– Promoting gender equality, empowering women, setting up homes
and hostels for women and orphans; setting up old age homes,
daycare centers and such other facilities for senior citizens and
measures for reducing inequalities faced by socially and
economically backward groups
– Ensuring environmental sustainability, ecological balance,
protection of flora and fauna, animal welfare, agro-forestry,
conservation of natural resources and maintaining quality of soil, air
and water
Programs for Voluntary Action
2/3

– Protection of national heritage, art and culture including

restoration of buildings and sites of historical importance
and works of art; setting up public libraries; promotion and
development of traditional arts and handicrafts;
– Measures for the benefit of armed forces veterans, war
widows and their dependents
– Training to promote rural sports, nationally recognized
sports, Paralympics sports and Olympic sports
– Contribution to the Prime Minister’s National Relief Fund
or any other fund set up by the Central Government for
socio-economic development and relief and welfare of the
Scheduled Castes, the Scheduled Tribes, other backward
classes, minorities and women;
Programs for Voluntary Action
3/3

– Contributions or funds provided to technology incubators

located within academic institutions which are approved by
the Central Government
– Rural development projects
– Slum area development
– Disaster management, including relief, rehabilitation and
reconstruction activities

▪ This introduced a novel and momentous definition

of the role of business in society and improved the
manner in which the CSR activities could be carried
out.
Role of Nonprofit & Local Self-
Governance in Implementing CSR

▪ Many companies simply do not have the bandwidth

(employees, consultants and supervision) to
undertake consistent CSR implementation.
▪ These companies not only  need to spend on CSR,
but also on CSR training for their employees, or
adding manpower dedicated to CSR capability.
NGO’s in India pitch a streamlined, customized
solution to these corporations.
▪ For NGOs, corporate houses are not only a source
of consistent funding but also access to strategic
resources.
Critical Parameters for
Partnership

– Years in Operation (Experience does matter)

– Geography (Operate within ambit)
– Reputation (Lack of Controversies)
– Certification (Exemption documentation)
– Relevant Experience (Ex. Coca-Cola and Water
sustainability)
– Leadership (Who is in-charge?)
– Credentials (CII, Chamber of Commerce)

▪ Only after taking such relevant points into

consideration does a viable partnership between
NGO and Corporate form.
Millennium Development Goals

▪ Eradicate extreme Poverty and Hunger,

▪ Achieve Universal Primary Education,
▪ Promote Gender Equality and empower women, Reduce
Child Mortality,
▪ Improve Maternal Health,
▪ Combat HIV/AIDS,
▪ Malaria and other diseases,
▪ Ensure Environmental Sustainability and
▪ Develop a Global Partnership for development
 Current Status of MDGs in
India 1/4

Goal Target Status

ERADICATE EXTREME Halve, between 1990 and On -track
POVERTY AND HUNGER 2015, the proportion of
people whose income is less
than one dollar a day

Halve, between 1990 and Slow or almost off-track

2015, the proportion of
people who suffer from
hunger

ACHIEVE UNIVERSAL Ensure that, by 2015, Moderately on-track

PRIMARY EDUCATION children everywhere, boys
and girls alike, will be able
to complete a full course of
primary schooling
 Current Status of MDGs in
India 2/4

Goal Target Status

PROMOTE GENDER Eliminate gender disparity in On-track
EQUALITY AND EMPOWER primary and secondary
WOMEN education, preferably by
2005, and in all levels of
education no later than 2015

REDUCE CHILD MORTALITY Reduce by two-thirds, Moderately on – track due to

between 1990 and 2015, the the sharp decline in recent
Under- Five Morality Rate years

IMPROVE MATERNAL Reduce by three quarters, Slow or off-track

HEALTH between 1990 and 2015, the
maternal mortality ratio
 Current Status of MDGs in
India 3/4
Goal Target Status
COMBAT HIV/AIDS, MALARIA Have halted by 2015 and begun On-track as trend reversal in
AND OTHER DISEASES to reverse the spread of HIV prevalence has been
HIV/AIDS achieved
Have halted by 2015 and begun Moderately on-track as trend
to reverse the incidence of reversal has been achieved for
malaria and other major Annual Parasite Incidence of
diseases Malaria and for prevalence of
TB
ENSURE ENVIRONMENTAL Halve, by 2015, the proportion Moderately on-track
SUSTAINABILITY of people without sustainable
access to safe drinking water
and basic sanitation
By 2020, to have achieved a The pattern not statistically
significant improvement in the discernible
lives of at least 100 million slum
dwellers
 Current Status of MDGs in
India 4/4

Goal Target Status

DEVELOP A GLOBAL In cooperation with the On-track
PARTNERSHIP FOR private sector, make
DEVELOPMENT available the benefits of
new technologies,
especially information and
communications
UN Global Compact Self-
Assessment Tool

▪ The UN Global Compact seeks to promote responsible

corporate citizenship so that business can help realise the
United Nations Secretary-General’s vision: a more
sustainable and inclusive global economy. Joining the UN
Global Compact is a commitment to the initiative’s ten
universal principles in the areas of human rights, labor, the
environment and anti-corruption.

▪ The UN Global Compact is the world’s largest voluntary

corporate citizenship initiative. With several thousand
participants from 130 countries, the UN Global Compact
has emerged as a truly global initiative with a strong
presence globally.
The UN Global Compact IS…

▪ A voluntary initiative to promote sustainable

development and good corporate citizenship
▪ A set of values based on universally accepted
principles
▪ A network of companies and other stakeholders
▪ A forum for learning and exchange of experiences
The UN Global Compact is NOT…

▪ Legally binding
▪ A means of monitoring company behavior and
enforcing compliance
▪ A standard, management system, or code of
conduct
▪ A regulatory body
▪ A public relations channel
The UN Global Compact Helps…

▪ Companies identify due diligence processes

needed at the level of each right, including tailored
key performance indicators (KPIs) for evaluating
company policy, company procedures and
company performance.
▪ The assessment tool unpacks the substantive
content of what it means for a business to respect
each human right through business relevant
questions and indicators.
The UN Global Compact Model
National Voluntary Guidelines
by Govt. of India 1/2
 National Voluntary Guidelines
by Govt. of India 2/2
Businesses should conduct and govern themselves with ethics, transparency and accountability

Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

Businesses should promote the wellbeing of all employees

Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalised

Businesses should respect and promote human rights

Businesses should respect, protect, and make efforts to restore the environment

Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner

Businesses should support inclusive growth and equitable development

Businesses should engage with and provide value to their customers and consumers in a responsible manner