CSR Basics

THE CONTEXT
1. DPE Guidelines on Corporate Social
Responsibility and Sustainability for
Central Public Sector Enterprises
2. Company Bill
3. Global compact
4. SA 8000
5. ISO 26000
6. Global Reporting Initiative (GRI 3.1 or
GRI G4)
 The Context
1. Guidelines on
Corporate Social Responsibility and Sustainability
For Central Public Sector Enterprises
(These shall come into effect on 1st
April 2013)
2. Company Bill 2012

• Board is mandated to ensure that the company

will spend on the CSR.

• If not, they have to give explanation.

• Companies with net worth more than 500 crore

or a turn over of Rs 1000 crore or net profit of 5
crore and above have to spend 2% of profits on
CSR mandatorily
 Schedule VII
 Eradicating extreme hunger and poverty

 Promotion of education

 Promoting gender equality and empowering women 

 Reducing child mortality and improving maternal health

 Combating 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 Minister’s National Relief Fund or any other fund set-up by
the central government or the state governments for socio-economic development
and relief, and funds for the welfare of the scheduled castes and Tribes, other
 backward classes, minorities and women

 Such other matters as may be prescribed

 
3. Global Compact
 4. SA 8000 and SA 8001,
• SA 8000 is an auditable standard
• Certifiable social accountability standard
• Developed by Social Accountability International
(SAI) in 1997
• Ensures ethical sourcing of goods and services
• Based on:
– Universal declaration of Human Rights
– UN Convention on the Rights of the Child
– 11 Conventions of the International Labour
Organization (ILO)
• Modelled after the established ISO 9001 and
ISO 14001 standards
SA 8000 stipulates nine requirements:

1. Minimum age
2. Forced Labour
3. Occupational Health and Safety
4. Freedom of Association and Right to organise
5. Discrimination
6. Disciplinary Practices
7. Hours of Work
8. Compensation
9. Management Systems
 5. ISO 26000

- a guideline document
- not certifiable
- not a management standard
 Fundamental principles
Each business entity should formulate a CSR policy to guide its strategic planning and

provide a roadmap for its CSR initiatives, which should be an integral part of overall

business policy and aligned with its business goals. The policy should be framed with the

participation of various level executives and should be approved by the Board.

Core elements

1.Care for all stakeholders

2.Ethical functioning
3.Respect for workers rights and welfare
4.Respect for human rights
 How did the ISO 26000 effort get started?

Industry Stds Committee

for Petroleum and Gas

Env. Mgt Consultants of CV

COPOLCO Swedish Industry Association

AG
Report Report

May 2001 Jun 2002 Sept. 2002 April 2004 June 2004

MoUs established

11
Work begins
 Co re s ubje c ts and is s ue s Addre s s e d in s ub-c laus e

Core subject: Organizational governance 6.2

Core subject: Human rights 6.3
Issue 1: Due diligence 6.3.3
Issue 2: Human rights risk situations 6.3.4
Issue 3: Avoidance of complicity 6.3.5
Issue 4: Resolving grievances 6.3.6
Issue 5: Discrimination and vulnerable groups 6.3.7
Issue 6: Civil and political rights 6.3.8
Issue 7: Economic, social and cultural rights 6.3.9
Issue 8: Fundamental rights at work 6.3.10
Core subject: Labour Practices 6.4
Issue 1: Employment and employment relationships 6.4.3
Issue 2: Conditions of work and social protection 6.4.4
Issue 3: Social dialogue 6.4.5
Issue 4: Health and safety at work 6.4.6
Issue 5: Human development and training in the workplace 6.5
Core subject: The environment 6.5.3
Issue 1: Prevention of pollution 6.5.4
Issue 2: Sustainable resource use 6.5.5
Issue 3: Climate change mitigation and adaptation 6.5.6
Issue 4: Protection and restoration of the natural environment 6.5.7
Core subject: Fair operating practices 6.6
Issue 1: Anti–corruption 6.6.3
Issue 2: Responsible political involvement 6.6.4
Issue 3: Fair competition 6.6.5
Issue 4: Promoting social responsibility in the sphere of influence 6.6.6
Issue 5: Respect for property rights 6.6.7
Core subject: Consumer issues 6.7
Issue 1: Fair marketing, information and contractual practices 6.7.3
Issue 2: Protecting consumers’ health and safety 6.7.4
Issue 3: Sustainable consumption 6.7.5
Issue 4: Consumer service, support, and dispute resolution 6.7.6
Issue 5: Consumer data protection and privacy 6.7.7
Issue 6: Access to essential services 6.7.8
Issue 7: Education and awareness 6.7.9
 IS O/DIS 2

Table 2 (c o ntinue d)

Co re s ubje cts and is s ue s Addre s s e d in s ub-c laus e

Core subject: Community involvement and development 6.8

Issue 1: Community involvement 6.8.3
Issue 2: Education and culture 6.8.4
Issue 3: Employment creation and skills development 6.8.5
Issue 4: Technology development 6.8.6
Issue 5: Wealth and income creation 6.8.7
Issue 6: Health 6.8.8
Issue 7: Social investment 6.8.9

Two fundame ntal practic e s o f s o c ial re s po ns ibility Claus e 5

Claus e 4 Re c o gnizing s o c ial S take ho lde r ide ntific atio n

re s po ns ibility and e ng ag e me nt
S e ve n princ iple s
o f s o c ial
S o c ial Claus e 6
re s pons ibility re s po ns ibility Org anizatio nal g o ve rnanc e
c o re s ubje c ts
Co mmunity
The Fair
 1. Due diligence
2. Human rights risk situations
3. Avoidance of complicity
Community 4. Resolving grievances
Organizational 5. Discrimination and vulnerable groups
involvement and 6. Civil and politics rights
governance
development 7. Economic, social and cultural rights
8. Fundamental principles and
rights at work Labour
Decision-making
1. Community involvement
processes
practices
2. Education and culture
and structures
Human
3. Employment creation and skills 1. Employment and
development
rights employment relationships
4. Technology development and 2. Conditions of work and
access social protection
5. Wealth and income creation 3. Social dialogue
6. Health 4. Health and safety at work
7. Social investment 5. Human development and
training in the workplace

1. Fair marketing, factual and unbiased information and 1. Prevention of pollution

fair contractual practices 2. Sustainable resource use
2. Protecting consumers’ health and safety 3. Climate change mitigation and
1. Anti-corruption adaptation
3. Sustainable consumption 2. Responsible
4. Consumer service, support and dispute resolution 4. Protection of the environment
political involvement and restoration of natural
5. Consumer data protection and privacy 3. Fair competition
6. Access to essential services habitats
4. Promoting social
7. Education and awareness responsibility in the The
Consumer issues
sphere of influence environment
5. Respect for property rights
Fair
NOT ALL ISSUES operating
WILL BE RELEVANT practices 16
FOR EVERY ORGANIZATION