http://www.mca.gov.in/Ministry/latestnews/National_Voluntary_Guidelines_2011_12jul2011.pdf
Introduction to guidelines
The Guidelines presented herein are a refinement over the Corporate Social
Responsibility Voluntary Guidelines 2009, released by the Ministry of Corporate
Affairs in December 2009. Significant inputs, received from diverse stakeholder
groups across the country have been duly considered, and based on these inputs;
appropriate changes have been made in the original draft Guidelines produced by the
Guidelines Drafting Committee. This document therefore represents the consolidated
perspective of vital stakeholders in India, and accordingly lays down the basic
requirements for businesses to function responsibly, thereby ensuring a wholesome
and inclusive process of economic growth.
Mandate and process: These Guidelines have been developed through an extensive
consultative process by a Guidelines Drafting Committee (GDC) comprising
competent and experienced professionals representing different stakeholder groups.
The GDC was appointed by the Indian Institute of Corporate Affairs (IICA) with a
clear brief that the Guidelines must provide a distinctively 'Indian' approach, which
will enable businesses to balance and work through the many unique requirements
of our land. The process that was followed in developing these Guidelines relied
heavily upon developing a consensus on various ideas that emerged from various
stakeholder groups. Leading trade and industry chambers, who were represented in
the GDC as well as actively engaged in the consultative process, have been key
partners in the development of this consensus.
Applicability: The Guidelines are designed to be used by all businesses
irrespective of size, sector or location and therefore touch on the fundamental
aspects – the 'spirit' - of an enterprise. It is expected that all businesses in India,
including multi-national companies that operate in the country, would consciously
work towards following the Guidelines. The Guidelines also provide a framework
for responsible business action for Indian MNCs planning to invest or already
operating in other parts of the world. Businesses are encouraged to move beyond
the recommended minimum provisions articulated in the document.
For business leaders and managers entrusted with the task of deploying the
principles of Responsible Business, it is worthwhile to understand that business
boundaries today extend well beyond the traditional walls of a factory or an
operating plant and all the way across the value chain. Businesses are therefore
encouraged to ensure that not only do they follow the Guidelines for areas directly
within their immediate control or within their sphere of influence, but that they
encourage and support their vendors, distributors, partners and other collaborators
across their value chains to follow the Guidelines as well.
The Guidelines are applicable to all such entities, and are intended to be adopted
by them comprehensively, as they raise the bar in a manner that makes their valuecreating operations sustainable. It needs to be emphasized that all Principles are
equally important and non-divisible – this implies that if a business endeavours to
function responsibly, it would have to adopt each of the nine (9) principles in their
entirety rather than picking and choosing what might suit them.
Saturday, July 16, 2011
CORPORATE SOCIAL RESPONSIBILITY VOLUNTARY GUIDELINES 2009
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.
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.
Wednesday, July 6, 2011
Why Corporate Governance is So Important to China - Eric Jackson - Tech and China - Forbes
Why Corporate Governance is So Important to China - Eric Jackson - Tech and China - Forbes: "Corporate governance has to do with how organizations are run.� Organizations with proper corporate governance have accountability and transparency.� People in authority at those organizations know that their actions will be seen and judged by others.� Therefore, those leaders are more likely to act in ways that benefit the organization’s stakeholders.� They are also less inclined to act in ways that benefit themselves personally at the expense of the organization.
China has always been a country that celebrates hard work and success in business.� To succeed in China, the winning companies face enormous competition domestically to get to the top and stay there.� They are generally not able to be incompetent or corrupt and succeed in the long-term.
But there is a growing crisis in China involving bad corporate governance that needs to be addressed immediately in order to prevent a major economic crisis in the future."
China has always been a country that celebrates hard work and success in business.� To succeed in China, the winning companies face enormous competition domestically to get to the top and stay there.� They are generally not able to be incompetent or corrupt and succeed in the long-term.
But there is a growing crisis in China involving bad corporate governance that needs to be addressed immediately in order to prevent a major economic crisis in the future."
Monday, July 4, 2011
Compact Disc investors disappointed over delisting plan; bank serves recovery notice - Moneylife Personal Finance site and magazine
Compact Disc investors disappointed over delisting plan; bank serves recovery notice - Moneylife Personal Finance site and magazine: "Compact Disc India (CDI) has left its retail investors fuming over its delisting plans. The shareholders are questioning the company's motives, as it has not paid the dividends it announced over the past two years, but it now seems to have the funds to buy back shares.
Interestingly, the company has been restrained from initiating any process of delisting of shares by the Debts Recovery Tribunal-II, Delhi, after its banker, HSBC, filed a suit for recovery. This is again strange, that the company does not have funds to pay its banker, but apparently has money to undertake a share buyback.
The stock reacted negatively to these developments, losing 16% since 6th June till the close of trading on Friday."
Interestingly, the company has been restrained from initiating any process of delisting of shares by the Debts Recovery Tribunal-II, Delhi, after its banker, HSBC, filed a suit for recovery. This is again strange, that the company does not have funds to pay its banker, but apparently has money to undertake a share buyback.
The stock reacted negatively to these developments, losing 16% since 6th June till the close of trading on Friday."
Suspended animation of scrips: Investors suffer and errant companies are let off the hook - Moneylife Personal Finance site and magazine
Suspended animation of scrips: Investors suffer and errant companies are let off the hook - Moneylife Personal Finance site and magazine: "After Moneylife wrote earlier about some 1,500 scrips being in suspended animation, even as the Securities and Exchange Board of India (SEBI) is set to tweak the takeover and delisting rules, intermediaries and investors are writing to protest the lack of action.
Suspension of scrips, or delisting them, punishes investors and helps companies who want to ditch their retail shareholders after raising funds from them. Companies merely need to violate the listing rules by refusing to pay the fees or making correct disclosures. Meanwhile, investors are stuck. They continue to pay the annual depository charges and cannot even close the DP account without transferring the shares; re-materialising them involves a further cost on what could be a worthless share."
Suspension of scrips, or delisting them, punishes investors and helps companies who want to ditch their retail shareholders after raising funds from them. Companies merely need to violate the listing rules by refusing to pay the fees or making correct disclosures. Meanwhile, investors are stuck. They continue to pay the annual depository charges and cannot even close the DP account without transferring the shares; re-materialising them involves a further cost on what could be a worthless share."
BSE finds Compact Disc India non- compliant with SEBI Listing Agreement - Moneylife Personal Finance site and magazine
BSE finds Compact Disc India non- compliant with SEBI Listing Agreement - Moneylife Personal Finance site and magazine: "It is reliably learnt that the Bombay Stock Exchange (BSE) has found multimedia and animation company Compact Disc India non-compliant with several provisions of Clause 49 of the SEBI Listing Agreement. It has sought clarification and explanation from the company on this matter.
Apparently, the stock exchange has observed that the company has only a single independent director out of a total of three directors and is thus non-compliant with the requirements under Clause 49 (i) (a) of the Listing Agreement. As per the guidelines, at least 50% of the company’s board should be independent directors.
Further, the company has also failed to constitute its audit committee under clause 49(ii) (a) as per which two-thirds of the members should be independent directors."
Apparently, the stock exchange has observed that the company has only a single independent director out of a total of three directors and is thus non-compliant with the requirements under Clause 49 (i) (a) of the Listing Agreement. As per the guidelines, at least 50% of the company’s board should be independent directors.
Further, the company has also failed to constitute its audit committee under clause 49(ii) (a) as per which two-thirds of the members should be independent directors."
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