http://www.mca.gov.in/Ministry/latestnews/CSR_Voluntary_Guidelines_24dec2009.pdf
Fundamental Principle
Core Elements:
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.
The CSR Policy should normally cover following core elements:
1. Care for all Stakeholders:
The companies should respect the interests of, and be responsive
towards all stakeholders, including shareholders, employees,
customers, suppliers, project affected people, society at large etc. and
create value for all of them. They should develop mechanism to actively
engage with all stakeholders, inform them of inherent risks and mitigate
them where they occur.
2. Ethical functioning:
Their governance systems should be underpinned by Ethics,
Transparency and Accountability. They should not engage in business
practices that are abusive, unfair, corrupt or anti-competitive.
GUIDELINES
Ministry of Corporate Affairs3. Respect for Workers' Rights and Welfare:
Companies should provide a workplace environment that is safe,
hygienic and humane and which upholds the dignity of employees.
They should provide all employees with access to training and
development of necessary skills for career advancement, on an equal
and non-discriminatory basis. They should uphold the freedom of
association and the effective recognition of the right to collective
bargaining of labour, have an effective grievance redressal system,
should not employ child or forced labour and provide and maintain
equality of opportunities without any discrimination on any grounds in
recruitment and during employment.
4. Respect for Human Rights:
Companies should respect human rights for all and avoid complicity
with human rights abuses by them or by third party.
5. Respect for Environment:
Companies should take measures to check and prevent pollution;
recycle, manage and reduce waste, should manage natural resources
in a sustainable manner and ensure optimal use of resources like land
and water, should proactively respond to the challenges of climate
change by adopting cleaner production methods, promoting efficient
use of energy and environment friendly technologies.
6. Activities for Social and Inclusive Development:
Depending upon their core competency and business interest,
companies should undertake activities for economic and social
development of communities and geographical areas, particularly in the
vicinity of their operations. These could include: education, skill building
for livelihood of people, health, cultural and social welfare etc.,
particularly targeting at disadvantaged sections of society.
Implementation Guidance:
1. The CSR policy of the business entity should provide for an
implementation strategy which should include identification of
projects/activities, setting measurable physical targets with timeframe,
organizational mechanism and responsibilities, time schedules and
monitoring. Companies may partner with local authorities, business
associations and civil society/non-government organizations. They
may influence the supply chain for CSR initiative and motivate
employees for voluntary effort for social development. They may evolve
a system of need assessment and impact assessment while
undertaking CSR activities in a particular area. Independent evaluation
may also be undertaken for selected projects/activities from time to
time.
2. Companies should allocate specific amount in their budgets for CSR
activities. This amount may be related to profits after tax, cost of
planned CSR activities or any other suitable parameter.
3. To share experiences and network with other organizations the
company should engage with well established and recognized
programmes/platforms which encourage responsible business
practices and CSR activities. This would help companies to improve on
their CSR strategies and effectively project the image of being socially
responsible.
4. The companies should disseminate information on CSR policy,
activities and progress in a structured manner to all their stakeholders
and the public at large through their website, annual reports, and other
communication media.
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