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Can CSR be a game changer?

Can CSR be a game changer?. An interactive session with NGOs, Corporate CSRs and……………………………..did I miss anybody?? 15 December 2012…..Alliance University, Bangalore. Where is the community ?. Does it have a voice

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Can CSR be a game changer?

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  1. Can CSR be a game changer? An interactive session with NGOs, Corporate CSRs and……………………………..did I miss anybody?? 15 December 2012…..Alliance University, Bangalore

  2. Where is the community? • Does it have a voice • Do we have the depth and the empathy to understand its pain….the hurt. DrAcharya mentioned CSR must ‘HURT’ • Are we REALLY keen to do GOOD • How often are we CONSULTING this ‘VOICELESS’ community for its ‘DEVELOPMENT’

  3. Structure of this presentation • Where do I come from • Who am I and why am I here • An OPPORTUNITY beckons….or is it a mirage • Are we ready for it….either ways….

  4. Where do I come from…..

  5. What is IICA • Where does the National Foundation for CSR (NFCSR) fit in • The role of NFCSR

  6. National Foundation for Corporate Social Responsibility (NFCSR) The NFCSR established by MCA at IICA would: • Function as a national platform for the Corporate Sector, Central and State Governments, local authorities, civil society organizations to connect, collaborate, and make effective and measurable commitments to action in the field of CSR. • Will play a FACILITATIVE, ENABLING role……so hopefully no SARKARIFICATION !!

  7. Be a global gateway and • Provide the following services to Corporates in the field of CSR in a single window mode: • Knowledge and informational services • Assistance for formulating CSR projects • Impact Assessment and Social Audit of CSR projects • Preparing a cadre of Certified CSR Professionals • Training and capacity building • Rating of CSR performance  and recognition through awards • Maintaining Database for best practices • Research including action research

  8. Who am I and why am I here

  9. A Civil Engineer…..to a Social Engineer!! • Founding member of an NGO – www.reacha.org just after College - 1992 • Stumbled upon teaching…..after a stint with the corporate world • Found my calling…..and the ‘CHILD WITHIN’ as I worked with school children • Let to Project Based Learning (PBL) • Connecting classroom teaching-learning to REAL WORLD….sharing an example….

  10. The NDPL Energy Club…. • A Project with the Tata’s that my REACHA did – 2004-07 • Was a ‘CSR’ Project to start with • Led to path-breaking developments: • Sharing with CBSE……and to CCE (Continuous & Comprehensive Evaluation) of school children • Scaling up within the Tata’s…..as Tata Power took it up • For Tata Power……this went from CSR to Responsible Business (fits as per NVGs….)….how? Next slide….. • Is today the internationally acclaimed Club Enerji

  11. Community Energy clubs Schools Parents Children TATAPOWER (Corporate Social Responsibility) CSR REACHA (Community Mobilisation)

  12. Energy Audit by children….

  13. A movement BEGAN in Delhi in 2004 with PBL

  14. With Tech Mahindra Foundation • CSR of Tech Mahindra Company • TMF – A Section 25 Company • 1.5% of PAT amounted to about 9 Crores per annum • 70+ Partners across Pune-Mumbai, Delhi-NCR and Bangalore • Domains of: • Education • Women’s Empowerment • Vocational Training • Disability • A huge LEARNING opportunity for me

  15. Sharing with MCD teachers…

  16. Some learning…..next steps… • To share and collaborate: • Difficult to get NGOs to do • No better with CSR Foundations…………..!!!! • Constant RE-INVENTING OF THE WHEEL - Resources and processes • Crying need of CSR ---- alignment with GOVERNMENT (Tax-payers’ money) programmes • CSR executives…..are they ready to read and study: • Domain related info – education, VT, disability….RTE etc • Meaning of a ‘CONSULTATIVE PROCESS’ & NEED BASED CSR • Process of PROJECTIVIZATION….. and related activities • How true are NGOs

  17. An OPPORTUNITY beckons….or is it a mirage

  18. Inclusive and sustainable development Maximization of shareholder and stakeholder value Business case and values based case Principles based, indivisibility of principles Supported by disclosure framework Stakeholder engagement - as a principle, as a process In sync with international norms and framework Applicability to large and small businesses Indian priorities and context Guiding Principles for NVGs

  19. Structure: 9 principles, 48 Core elements

  20. Core purpose and main aspects • Better performance, business competitiveness • Accountability and evidence • Progressive and enabling • Principle of Apply or Explain • Pragmatic and light • Aligned to section 135 of Companies Bill • Applicable to large and small businesses

  21. SEBI Directive on Business Responsibility Reports • Mandates inclusion of BR Reports as part of the annual reports for top 100 listed entities based on market capitalisation at BSE and NSE as on March 31, 2012 • Other listed entities may voluntarily disclose BR Reports as part of their Annual Reports

  22. Related Developments: Companies Bill 2011: Business responsibility and CSR • Section 135 : 2 percent of the net profit of a company above a threshold for CSR activities • Explanation for non-spending • CSR a part of BR • Mechanism for monitoring to evolve

  23. Provisions of the Company’s Bill Relating to CSR SECTION 135 • Every company having a net worth of rupees five hundred crore or more, or a turnover of rupees one thousand crore or more, or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director. • The Board's report under sub-section (3) of section 134 (o) shall disclose the composition of the Corporate Social Responsibility Committee.

  24. SECTION 135 {CONTD.} • The Corporate Social Responsibility Committee shall, • formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII; • recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and • monitor the Corporate Social Responsibility Policy of the company from time to time.

  25. SECTION 135 {CONTD.} • The Board of every company referred to in sub-section (1) shall, • After taking into account the recommendations made by the Corporate Social Responsibility Committee, approve the Corporate Social Responsibility Policy for the company and disclose the contents of such Policy in its report and also place it on the company's website, if any, in such manner as may be prescribed; and • ensure that the activities as are included in Corporate Social Responsibility Policy of the company are undertaken by the company. .

  26. SECTION 135 {CONTD.} • The Board of every company referred to in sub-section (1), 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 financial years, in pursuance of its Corporate Social Responsibility Policy; Provided that if the company fails to spend such amount, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount. .

  27. Possible CSR Activities (Schedule VII) • Schedule VII of The Company’s Bill draws attention to an illustrative list of activities that can be carried out under the CSR Agenda; • They cover broadly, the areas of poverty, education, gender, health, environmental and sustainable development, employment, vocational skills, social entrepreneurship and contributions to major National Funds; (MDGs….) • However, the actual projects and programmes taken up by corporates could cover any other areas of their choice which they feel would address any aspect of the nation’s needs and challenges.

  28. Some Issues Arising Out of Section135 • How will rupee values be assigned? • In accounting terms what will qualify as debitable to CSR expenditure? • In what format would CSR Reports be prepared? • Will a set of guidelines be available so that all Corporates are on the same page? • Will rules be framed under the Act for Section 135? • How will CSR Plans be prepared?

  29. Issues Arising{Contd.} • How will: • a cadre of CSR professionals be created in the country? • The implementation expertise of NGOs and be harnessed? • The capacity of major institutions such as NIRD, TISS, Delhi School of Social Work, Universities and others be fully utilized in this endeavor? • Independent directors be trained for the preparation of plans and projects? • Projectivizationof activities take place? • What will be the provisions for monitoring and assessment so that outcomes are ensured?

  30. Are we ready for this….either ways….I leave it to the house………….lets discuss….

  31. Your inputs….invaluable • Please write to me….your thoughts…and how you can contribute • Let me have your GOOD PRACTICES • Include the tough times, the problems….and how you went about overcoming them • Elaborate your failures

  32. Thank you nikhil.nfcsr@gmail.com

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