CSR IN INDIA. SIMON HARRISON Of Counsel Squire Patton Boggs & Adjunct Professor University Of Queensland. July 2014
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1 CSR IN INDIA SIMON HARRISON Of Counsel Squire Patton Boggs & Adjunct Professor University Of Queensland July 2014
2 PRESENTATION OUTLINE What do we mean by C.S.R. International responses to C.S.R The Indian context Corporate examples in India Schedule VII activities Schedule VII activities (contd.) Opportunities through partnerships 2
3 What do we mean by C.S.R? CSR is a process by which an organization thinks about and evolves its relationships with stakeholders for the common good, and demonstrates its commitment in this regard by adoption of appropriate business processes and strategies. Thus CSR is not charity or mere donations. CSR is a way of conducting business by which corporate entities visibly contribute to the social good. Socially responsible companies do not limit themselves to using resources to engage in activities that increase only their profits. They use CSR to integrate economic, environmental and social objectives with the companies operations and growth Quotation from Dr. Bhaskar Chatterjee - Director General & CEO, Indian Institute of Corporate Affairs, Ministry of Corporate Affairs 3
4 CSR globally International responses to C.S.R. Australia 2001 Corporation Act 2010Financial Services Reform Act ASX Canada China E.U. The focus internationally is generally related to sustainability. The international emphasis is on encouragement and strong encouragement Japan Malaysia 4
5 The Indian Context 4 phases of CSR development The First Phase 19 th Century charity The Second Phase - Independence The Third Phase the mixed economy The Fourth Phase economic liberalization Narendar Modi Development should be a mass movement. We need to integrate the people and make it a mass movement the coming decade belongs to the oppressed, the backward, the Marginalised Mahatma Ghandi The best way to find yourself is to lose yourself in the service of others 5
6 Some Indian examples To disclose or not to disclose Tata Consultancy Services Ltd. Jindal Steel and Power Limited Ramky Infrastructure Limited Indian Oil Corporation Reliance Industries Jindal Steel: The objective of our CSR initiatives is to improve quality of life of the community and achieve sustained business excellence and inclusive growth of all stakeholders 6
7 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 immune deficiency virus, acquired immune deficiency syndrome, malaria and other diseases Ensuring environmental sustainability Dr. Chaterjee : The developing world now looks to India to provide leadership on how corporates can integrate their efforts with the developmental processes in the country in a seamless manner. The synergy is critical if any nation intends to leverage the strengths of its corporate sector for nation building 7
8 Schedule VII (contd.) Employment enhancing vocational skills Social business projects Contribution to the Prime Ministers National Relief Fund or any other fund to set up by the Central Government or the State Government for social- economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, and other backward classes, minorities and women, and Such matters as may be prescribed In a way, the dawn of a new era in Indian CSR is just around the corner and this is a reason for all of us to be excited about the prospect of joining hands and making it work Dr. Chaterjee 8
9 Opportunities through partnership Capacity building intellectual and practical Off the shelf projects Applied consulting and research Technology Program Management Finance and Investment Direct access to major Corporations Strategic Partnerships: TERI/CII etc. Australia and India 8000 COMPANIES CAUGHT BY THE ACT 100 COMPANIES LIABLE FOR AU$100 BILLION OF CSR SPEND BILATERAL AUSTRALIAN INDIA TRADE TO REACH AU$40 BILLION BY THE END OF 2016 WITHOUT CSR 9
10 Contacts Sonia Barber Partner squirepb.com Simon Harrison Of Counsel squirepb.com 10
11 Worldwide Locations 11
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