CU_SEM_III_MCOM-CSR-Second draft-converted

this way, companies can get accurate and insightful data which will help them improve their processes and have a more positive impact in society and in the world. • On the other hand, a CSR or sustainability report also allows companies to externally communicate with their stakeholders what are their goals regarding sustainable development and CSR. This permits stakeholders (employees, investors, media, NGOs) among other interested parties, to be aware of what are the short, medium and long-term objectives of organizations and make more calculated decisions. These decisions can spread from investing in a business, buying its products, writing positive (or negative) reviews, protesting in the streets against the intentions or actions of an organization… Definition of CSR report: According to the Global Reporting Initiative, a CSR report can be defined as: “A sustainability report is a report published by a company or organization about the economic, environmental and social impacts caused by its everyday activities. A sustainability report also presents the organization’s values and governance model, and demonstrates the link between its strategy and its commitment to a sustainable global economy.” The Internal Organizational Benefits of a Sustainability Report: Internally speaking, CSR reports are important because they allow companies to estimate the impact their operations have on the environment, society, and the economy. Through the (supposedly) detailed and meaningful data collected (or simply gathered) for the sustainability report, companies have a chance to improve their operations and to reduce operational costs. Not only do they become better prepared to optimize and reduce their energy consumption; as a result of reviewing their waste cycles product innovation strategies or circular economy opportunities can be found. At the same time, collecting this data requires joint efforts from different departments. As a result of the hype that’s created, employees often end up becoming more conscious the company is focusing on CSR and sustainability, which leaves them proud – increasing employee retention and decreasing turnover (and its costs). It’s good news for employer branding. The External Organizational Benefits of a Sustainability Report:

When it comes to external benefits, a CSR and sustainability report can help companies engage better with their interested parties. By making their stakeholders aware of the company’s short, medium and long-term project strategies, organizations can be better understood which may have optimistic financial results. For instance, a sustainability report helps stakeholders become aware of whether a company is positively contributing to minimizing the negative impacts of an environmental hazard or that it is only focused on growing profits for its managers and investors. Silence is also a way of communication and if no sustainability report is found the odds are people will focus on the second option just mentioned. In this way, consumers can decide whether they want to buy from a brand that protects orang- utans by sourcing sustainable palm oil or one that produces clothes locally with little environmental harm and paying fair wages. Investors can anticipate if companies are becoming more resilient to face consequences of climate change and decide whether to invest in them or not. Journalists can share best case practices from companies leading the way on topics such as microplastics pollution or ocean acidification. NGOs can exert pressure and expose irresponsible practices… It isn’t (at least yet) mandatory for all companies to make their own CSR or sustainability reports. Yet, directive 2014/95 from the European Union demands large companies to reveal certain non-financial information about how they operate and run their social and environmental challenges. This means it is mandatory for large public interest entities to disclose non-financial information. Specifically, it’s mandatory that these organizations give insights about how they’re taking care of environmental, social and personnel concerns. Diversity and inclusion, respect for human rights, and the fight against corruption and bribery inside businesses and within value chains are issues that must be contextualized too. Consequently, specific organizational data needs to be provided about the policies being pursued, as well as their outcomes. The main organizational risks identified and how they’re being managed, together with the financial indicators used must be presented as well.

This kind of information helps consumers, investors, policymakers and other stakeholders to evaluate the non-financial performance of large companies and encourages organizations to develop sustainable business strategies that can be up to the expectations. Due to the benefits mentioned earlier, many companies choose to report their CSR and sustainability information. But how do they know what or how to report? One of the ways for companies to share their CSR and sustainability policies, both internally, but above all, externally, is comply with strong standards and apply for certifications such as the ISO 26000, the Global Reporting Initiative (GRI), the Integrated Reporting, the B-Corp Certification or the FTSE4GOOD Index. They are great in terms of the truly impactful changes they demand and the reputation that comes along. Nonetheless, the sustainability proof or report submitted to get these certifications, sometimes used as a sustainability report, is usually very long and exhaustive and therefore, it might not be the best way to share sustainability practices with common, environmentally-worried consumers, who just want to get to know some sustainability highlights. In this way, another approach organization can take is to create a personalized sustainability report template. In this way, they can summarize their stakeholders with the important ideas of their sustainability strategies, so that they are aware of the risks and opportunities involved, the policies that are being undertaken and the outcomes achieved so far. Nevertheless, since it doesn’t respect any specific structure, this approach has the downside that readers must the more critical about the information they are offered. Because if companies present data without showing how they got their numbers, or talk about random eco-friendly initiatives that don’t seem to be integrated within a global strategy, they might be trying to show that they have CSR and sustainability concerns, when in fact, they are mostly showing off and green washing. Face with this, many companies end up doing both types of reports. They write a standardized report following the guidelines of, for instance, the global reporting initiative integrated with the SDGs (sustainable development goals). After finishing it, they extract the main points of these long reports and create an appealing design on which they advertise their sustainability practices. In some cases, the most curious people can find links in the short CSR report that redirects them to the online version of the long report – which is positive as it allows a deeper dive into an organization’s specific actions, data, or processes.

11.6 SUMMARY • It is now documented that poverty decline and sustainable development will not be achieved through government action alone. • Policy makers are concentrating ever-increasingly to the prospective involvement of the private sector to the strategy objectives. • The idea of CSR is sometimes applied as shorthand for organization’s role to development that is sustainable. A number of core improvement issues are already central to the international CRS agenda. • These consists of labour standards, human rights, education, health, child labour, poverty reduction, conflict and environmental impacts. • Ministry of Corporate Affairs published the Guidelines 2009 for the formulation of CSR policy for the corporates • Each business entity should prepare a CSR policy to guide its strategic planning and provide a roadmap for its CSR initiatives, which should be an integral part of the 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. • CSR Policy should consist of core values like care for stakeholders, ethical functioning, respect for workers’ rights, respect for human rights, respect for environment and social development. • The CSR policy of the business entity should provide for an functioning strategy, which should include identification of projects/activities, setting measurable physical targets with timeframes, organizational mechanism and responsibilities, time schedules, and monitoring. • Corporates have to play a practical part to achieve this inclusive growth by ensuring the prosperity of the poorer section of the population. • Government reforms have to be complemented with corporate social responsibility activities. Businesses have to ensure more transparency and accountability in their

activities, which have to encompass their core business as well as community development projects. • A great way to measure the impact of CSR funding is by setting up a 'Monitoring Committee'. This committee would ensure that everything is perfect, right from the planning of the initiative to its maintenance. Periodic visits to the project site and routine reviews would eradicate any flaws or issues. • Corporate Social Responsibility (CSR) suggests that the responsibility of the for- profits operating within society is to also contribute towards its economic, social and environmental development and well-being. The core objective of enforcing a CSR mandate is that businesses cannot succeed in isolation, especially when society at large fails to flourish. • The information used for measuring social and environmental performance is very diverse in kind and comes from a variety of sources. • The Ministry of Corporate Affairs has also stepped up its effort to encourage corporates to comply with the CSR provisions by setting up various portals. • A CSR, corporate social responsibility or sustainability report is a periodical (usually annual) report published by companies with the goal of sharing their corporate social responsibility actions and results. 11.7 KEYWORDS / APPREVIATIONS • Balance sheet (BS): A financial report that abridge a company's assets (what it owns), liabilities (what it owes) and owner or shareholder equity, at a given time. • Capital: An amount of finance provided to enable a business to obtain assets and sustain its operations. • Financial stability: state in which the financial system, i.e. the key financial markets and the financial institutional system is opposed to economic shocks and is fit to smoothly fulfil its basic functions • Net income (NI): A company's total earnings, also called net profit. Net income is calculated by subtracting total expenses from total revenues

• Revenue: Created by a transaction or event arising during the ordinary activities of the business which causes an increase in the ownership interest? 11.8 LEARNING ACTIVITY Analyse the challenges of community development and empowerment of the ‘unincluded’ sectors in society ________________________________________________________________ ________________________________________________________________ 11.9 UNIT END QUESTIONS A. Descriptive Questions (Long Answers) 1. Explain CSR policy? Explain the purpose and rationale of the CSR policy? 2. What are CSR models? Explain the diverse types of models of Corporate social responsibility? 3. Explain in detail Monitoring and Evaluation OF CSR activities. 4. What is corporate social responsibility? Explain the CSR reporting procedure? 5. What is CSR report? Explain the internal and External Organizational Benefits of a Sustainability Report? Descriptive Questions (Short Answers) 1. Give few CSR related initiatives undertaken by Government of India. 2. Discuss the relationship between CSR and empowerment of community. 3. Define inclusive growth. 4. Suggest certain measures that the corporate need to take to achieve inclusive growth. 5. Briefly trace the history of CSR in Indian corporates. B. Multiple Choice Questions 1. What does the term Corporate Social Responsibility recount to? a) Environmental practice.

b) Moral conduct c) Individual rights and employee associations. d) All of the above. 2. Which is the standard of corporate responsibility? a) Trusteeship principle b) Principle of stewardship c) Principle of charity d) All of the above 3. CSR IS: a) One-time process b) Yearly process c) Continuous process d) None of these 4. All definitions of Corporate Social Responsibility recognize that: a) The ordinary environment should be the main focal point of CSR activities. b) Companies have a responsibility for their impact on society and environment. c) business ethics is a multifaceted issue. d) Companies must pay equivalent consideration to business ethics and sustainability. 5. What is the traditional view of management's social responsibility? a) To maximize profits b) To generate explicit environment in work place c) To defend and advance society's welfare d) All of these Answers: 1 - (d), 2 - (d), 3 – c, 4 – b, 5 – d

11.10 REFERENCES Reference Books 1. Sanjay Agarwal K., Corporate Social Responsibility in India, Response Books, 2008 2. Hawkins David, E, (2006), “Corporate Social Responsibility: Balancing tomorrow’s sustainability and today’s profitability.”, Palgrave McMillan, ISBN 978-1-895536-97-3. Textbooks 1. Business Ethics and Corporate Social Responsibility by Michael Vas and Aurora Vaz. 2. Corporate Social Responsibility by Madhumita Chatterjee.

UNIT – 12: REPORTING FRAMEWORK Structure 12.0 Learning Objectives 12.1 Introduction 12.2 CSR Audit 12.3 Social Impact Assessment 12.4 Role of Government / Regulatory Agencies in India 12.5 Summary 12.6 Keywords/Abbreviations 12.7 Learning Activity 12.8 Unit End Questions 12.9 References 12.0 LEARNING OBJECTIVES After studying this unit, you will be able to understand: • Comprehend that CSR is fundamental to the development process • Understand the role of major institutions of civil society in CSR • Create an consciousness of certain institutional initiatives in progress 12.1 INTRODUCTION A reporting framework is a self-governing instrument intended to assist companies in preparing sustainability reports and ESG information. They facilitate all organisations universally to measure their sustainability performance and reveal the results in a similar way to financial reporting.

A reporting framework is a harmonised system for constantly reporting CSR management systems and CSR performance. Generally, such frameworks should allow for public exposure, although that would not usually be a requirement. The description does not include rating indexes (such as Dow Jones Sustainability Index or FTSE Group’s FTSE4Good Index) nor inspirational frameworks (such as the Global Compact and the Millennium Development Goals), although inspirational frameworks may be agreeable to use as reporting frameworks with some interpretation or modification. The Global Compact’s Communication on Progress framework is an instance of such a revision, although that framework is of limited use in relation to corporate reporting because of its limited scope and intensity of metrics. The definition may include frameworks stemming from the ISO 26000 standard, although that standard in and of itself does advocate its use. A corporate social audit is an evaluation of your company's presentation on corporate social responsibility objectives. It evaluates quantifiable goals intended to help your business meet the opportunities your stakeholder groups have regarding your social and environmental responsibilities. Balancing social responsibility with business performance is crucial in the early 21st-century business arena. Corporate social responsibility, or CSR, has been around since the mid-1900s. However, it has evolved considerably in the early 21st century as consumer watch groups and the public in general have begun to demand more principled and responsible behavior from companies. CSR includes various social and environmentally responsible guidelines that relate to the way companies treat no shareholder stakeholders such as customers, communities, employees and business partners. Meeting these guidelines is indispensable for companies that want to maintain a strong connection to the marketplace. Community development, diversity, environment, international relationships, marketplace practices, fiscal responsibilities, and accounting and financial monitoring are commonly assessed social responsibility components. Social responsibility includes the way a company treats and proactively contributes to its community, promotes fair working conditions and a fair-minded environment, conveys translucent and honest accounting reports, and generally earns a status of trust and truthfulness in the markets it serves.

12.2 CSR AUDIT Figure 12.1: CSR Management The auditor should develop a general perception of the social responsibility issues that have an effect on their organization and industry. The dispute of developing a socially responsible organization is creating the equilibrium between profitability and other public goods. Management must bring together these sometimes-contrary needs. On one hand, management is accountable to shareholders and investors to deliver a financial return. Conversely, management is accountable to the society that invests the modern corporation with control over its resources and employees. Developing a CSR Audit Program: A CSR audit program can cover all or any of the following risks: • Efficiency of the operating structure for CSR implementation • Effectiveness of implementation of specific, large CSR projects • Sufficiency of internal control and review mechanisms • Dependability of measures of performance • Management of risks related with external factors like regulatory compliance, management of probable adverse NGO attention, etc. An organization’s social responsibility initiative may include many component programs addressing both internal and external considerations including:

1. Donating Funds & Resources – management should make sure that contributions are carefully reviewed and based upon sound verdict. Although this is a very common type of community involvement the timing, amount of funds, and type of gifts should be considered. Some companies allow personnel to volunteer in the community on paid time. 2. Project Implementation – companies often go on board on large CSR projects that are intended at delivering high Brand or business force. These projects may typically run over a long-time sphere and involve significant investment of time and resources, both financial and people. Setting of clear objectives, sufficient resourcing, successful monitoring and independent review of project performance are critical to success. 3. Communications – Set up efficient plans to converse to employees and the public to describe the organizations actions and the related impact to the community. Evaluate public relations and the adequacy of the PR function in addressing social issues. 4. Social Responsibility Analysis – organizations can assign committed resources to recognize, evaluate, and research social responsibility issues. Establishing liaisons with community groups and functioning with those responsible for public welfare or the environment will help the organization understand and address appropriate issues. 5. Managerial Policies & Decision Support – all organizational levels and objectives should include social responsibility plans. These intentions may be included in policy and measures, statements to the public, marketing campaigns, and made translucent to the public. Management decisions should integrate social responsibility considerations especially those that directly impact the community. For example, operations or plants that create noise, traffic, or pollution, or that impinge on any part of the community should include a social responsibility component. 6. Research & Development – organizations can carry out research into alternative methods or approaches to operations or products that reduce or take away undesirable impacts or byproducts. For example, mechanized companies can sustain reprocessing programs for printer ink cartridges and additional products to make sure proper discarding or use again. 7. Government Program Participation – companies work in partnership with government agencies to provide study on issues often along with their industry competitors. Organizations that better recognize the problems at issue and the governments responsibilities can help ensure they are part of the solution rather than part of the problem. Companies can also ensure

related legislation and regulatory mandates are sound, efficient and incorporate common welfare. CSR: General Concerns for Audit Coverage: CSR programs can function at different levels according to the policy adopted by the organization. At the basic level, organizations have some level of society awareness, public service, or charitable charity as part of superior corporate citizenship. Examples include scholarships for students, acceptance of parks or highways, support of charity events, and gifts to the arts. Such initiatives are also subject to in-house controls and should be considered for periodic review of their accounting and oversight processes. At the superiority level, CSR activities consist of variety of additional issues including: • Protection of Human Rights – defiance or anticipation of legal or social rights of workers. Examples include fair wages for factory workers with sensible work conditions, including restrictions on child labor. • Destruction of Natural Habitat or Resources – depletion of normal habitats, wildlife, and land surfaces. Examples consist of strip mining, protection of endangered species, deforestation and pollution. • Free Market Development – the mega corporations that considerably impact developing market economies are under fire regarding fair trade policies. Less developed countries and their marketplace communities should be having opportunities for strong economic growth that do not aggravate wealth disparities or exploit people. Examples include exploitation of poor country labor or agricultural markets. At the highest level, the CSR strategy is closely incorporated with the business objectives, creating a ‘righteous circle’ for all the stakeholders. This is a highly sustainable model as the success of the business is incorporated with the CSR initiatives and there is high commitment from the business at all levels. The CSR audit is an instrument for decision making and for strategic management. Just like a financial audit, there are various CSR standards against which a CSR Audit can take place such as: - Global Compact - Global Reporting Initiative

- Good Business Framework CSR issues that a CSR Audit should cover? 1. Human Rights: Fundamental Human Rights, Freedom of association and Collective bargaining, Nondiscrimination, Forced labor, Child labor 2. Business Behavior: Relations with clients, suppliers and sub-contractors, Prevention of corruption and anti-competitive practices 3. Human Resources: Labor relations, Working conditions, health and safety, career development and training, Remuneration system 4. Corporate Governance: Board of Directors, Audit and internal controls, Treatment of shareholders, Executive remuneration. 5. Environment: Incorporation of environmental considerations into the manufacturing and allocation of products, and into their use and disposal. 6. Community Involvement: Impacts on local communities, contribution to social and economic development, General interest causes. 12.3 SOCIAL IMPACT ASSESSMENT AND SOCIAL AUDIT The social audit is a method. It consists of reassessing all credentials and official accounts associated to a corporate social responsibility program and its performance. The audit assist in establishing if all accounted expenses are actually reflecting the amount of money spent on site only for the project. The social impact assessment is a methodology and process which consists of reviewing the social effects of activities and interventions implemented under the CSR program in terms of development or progress Social Research plays a fundamental role in offering the required tools and methodologies to efficiently and effectively execute CSR programs. Social research ensures the best utilization of efforts and capital besides keeping CSR effort on the right track. The implication of social research is still not rightly understood by the CSR professionals in India. Social Impact Assessment (SIA) is one of the most influential social research studies. “Interventions without Impact Assessment are presentation without significant results.”

Performance assessment is to be done after desires are appraised and funds and resources are devoted to keep track and to make certain the progress. Hence, SIA assist in understanding: 1. Whether the programs were designed in line with the needs of the community and organization’s mission/vision. 2. Whether the right mechanism was adopted for implementing the interventions. 3. Whether the goals and objectives decided at the beginning of the programs were achieved. 4. Whether there are any unexpected changes or negative effects in the lives of the target community. Thus, SIA can play a significant part in estimating the alignment of goals, project development and accomplishment to make certain maximum Social Return on Investment (SROI). 12.4 ROLE OF GOVERNMENT / IMPLEMENTING AGENCIES OF INDIA The public sector undertakings (PSUs) in India are supported by socialistic model and therefore have a high rank of public accountability attached to them. This obviously requires socially responsible reporting by PSUs. To facilitate this process, the Committee of Public Undertakings (COPU) was entrusted in 1992 to review the issue relating to social obligation of Central Public Sector Enterprises. It reported that 'being part of the \"State\", every Public Sector Enterprise (PSE) has an ethical accountability to play a vigorous role in observing the communal commitment gifted on a welfare state, subject to the financial health of the enterprise.' In keeping with the suggestion of the COPU, the Department of Public Enterprises (DPE) issued general guidelines in November 1994. These guidelines relied entirely on the board of directors of the PSEs to devise socially responsible business practices in accordance with their articles of association, under the general guidance of their respective administrative ministry/department. In an effort to create a synergy in the socio-economic scenario, the government is aware that CSR has to play a very significant role. The government understands that 'CSR is at heart a course of overseeing the overheads and settlement of business activity to both in-

house (employees, shareholders, investors) and outdoor (institution of public governance, community members, civil society groups, other enterprises) stakeholders.' To understand the enormity of the problems and apprehensions, the Government of India conducted a limited review of selected sectors and their CSR proposals. The main focus of the review was on the following facets: 1. CSR policy 2. System of planning for CSR activities. 3. System of fixation of targets for CSR activities 4. Budget allotment and budget consumption for CSR activities. 5. Scrutinizing the functioning of CSR activities. The further enhance the implementation of CSR processes to fill the time-gap between the growth and distribution; the government has created a framework for CSR initiatives. The preamble revolves around the crux that with the unprecedented growth in economic activities worldwide, a number of challenges and opportunities has emerged. This approach also 'reaffirms the view that businesses are an important part of society, and have a significant and vigorous role to play in the nourishment and enhancement of healthy ecosystems, in nurturing social completeness and equity, and in preserving the fundamentals of moral practices and high-quality governance'. Government has expressed a strong belief in the ancient wisdom of India promoting welfare for all. Therefore, the government is confident that these sound in globalized world of today as 'organizations grapple with the challenges of modern-day enterprise, the aspirations of stakeholders and of citizen’s eager to be active participants in economic growth and development'. To provide companies supervision in dealing with the above-mentioned expectations, while working closely within the structure of national ambitions and policies, the Voluntary Guidelines for CSR have been formulated. Though the guidelines basically relate to the Indian context, even multi-national and trans-national enterprises can benefit from using these guidelines for their overseas operations. Since the strategies are charitable and not prepared in the nature of a prescriptive road map, they are not proposed for regulatory or contractual use. The government has faith that more and more companies would make a sincere effort to adhere as closely as possible to the guidelines. It is hoped that 'India Inc. ' would respond to these guidelines with keen interest.

12.4.1 Role of NGOs And International Agencies in CSR A non-governmental organization (NGO) is any non-profit, charitable organisation which is controlled on a local, national or international level. NGOs perform a variety of social welfare activities and also undertake CSR activities. The corporate firms may tie up with NGOs to undertake their CSR activities. Some NGOs are organized around specific issues, such as human rights, environment or health. They offer investigation, knowledge and skill, serve as early caution mechanisms and help observe and execute international agreements. Over the years, NGOs have played an important role in CSR activities. Business firms may set up their own foundations or NGOs to undertake CSR activities or they may undertake CSR initiatives through a friendly neighbourhood NGO. Apart from NGOs, there are international agencies that have increasingly become involved in CSR activities. Several Inter Governmental Organizations (IGOs) address CSR issues. The IGOs include the UN Industrial Development Organization (UNIDO), the UN development Program (UNDP), the UN Commission of Human Rights (UNCHR), and the World Bank. Role of International Agencies: 1. ISO 26000 – Social Responsibility: ISO 26000 was released in November 2010 by International Organisation for Standardization. ISO 26000 provides guidance on how businesses and organizations can operate in a socially responsible way. It means acting in a morally and translucent way that contributes to the well-being of the society. ISO 26000 is the international standard developed to aid companies efficiently measure and deal with those social responsibilities that are applicable and noteworthy to their mission and vision; operations and procedures; consumers, employees, communities, and other stakeholders; and environmental impact. 2. Instituting Awards: Several national and international agencies institute awards for CSR excellence. For instance, Institute of Directors, India has instituted Golden Peacock Awards – 13 National Awards and 3 Global Awards relating to CSR. The CST awards recognize the efforts of national and global firms in the area of CSR. 3. Contribution to Trade and Development: International agencies like WTO aims at expanding world trade and development with special emphasis on environmental

protection.WTO insists on its member nations to reduce or remove trade barriers. Removal or reduction in trade barriers to expand trade among member nations. Increase in trade helps firms of member nations to increase profits. Firms may use a part of the profits towards CSR activities. 4. Environmental Programmes: International agencies undertake environmental programmes. For instance, The United Nations Environment Programme (UNEP) is an organization of United Nations that coordinates its environmental actions, supporting budding countries in putting into practice environmentally sound policies and practices. UNEP has also been vigorous in providing required funds and executing environmentally - development projects. The recent UNEP report states that with smart public policies, governments can nurture their economies, produce decent employment and speed up social progress in a way that keeps humanity’s ecological footprint within the planet’s carrying capacity. 5. Environmental Audit: International agencies such as US Environmental Protection Agency (UEPA), International Chambers of Commerce (ICC) and others encourage environmental audit. Environmental audit is a systematic, documented, periodic and objective review by a regulated entity of facility, operations and practices related to meeting environmental requirements. Role of NGOs 1. Formulating Code or Principles: International agencies formulate code or principles to be followed by corporations for the purpose of ensuring social responsibilities towards consumers,, UN Global Compact has laid down 10 principles for social responsibility of corporate firms. By incorporating the Global Compact principles into strategies, policies and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to planet, but also setting the stage for long-term success. 2. Children Rights: NGOs work to support children rights. For instance, NGO called “Save the Children” has been preventing child labour through lobbying for policy reform and stronger legislation while undertaking grassroots mission to free children from bonded labour.

This NGO empowers the saved children with education, job skills, giving India’s marginalised children, a new lease of life. Apart from this, the NGO works to provide healthcare, education and life-saving aid during emergencies to children. 3. Expansion and function of Infrastructure: Society based companies and cooperatives can obtain, subdivide and enlarge land, build houses, endow with infrastructure and function and preserve infrastructure such as wells or public toilets and solid waste collection services. They can also develop building material supply centers and other community-based economic enterprises. In many cases, they will require technical help or guidance for governmental agencies or higher –level NGOs. 4. Supporting Innovation, Demonstration and Pilot Projects: NGO have the benefit of choosing respective areas for innovative projects and identify in advance the length of time they will be supporting the project – overcoming some of the short comings that governments face in this respect. NGOs can also be pilots for larger government projects by virtue of their capability to act more rapidly than the government administration. 5. Communication: NGOs can ease communication upward from people to the government and downward from the government to the people. Communicating upward involves communicate government about what general people are thinking, doing and feeling while communication downward involves communicating general people about what the government is forecasting and acting upon. NGOs are in a special position to dispense information horizontally, connecting between other organizations doing similar work. 6. Technical Assistance and Training: Training institutions and NGOs build up a technical support and training capability and employ this to aid both CBOs (Community Based Organizations) and the governments. 7. Research, Monitoring and Evaluation: Innovative activities need to be carefully documented and shared – effective participatory monitoring would permit the sharing of results with the people themselves as wells as with the project staff. 8. Encouragement to the Poor: In some cases, NGOs become spokesperson for the poor and endeavor to persuade government policies and programmes on their behalf. This may be done through various means starting from manifestation and pilot projects to contribution in public medium and the formulating the government policy and strategy, to broadcast research results and case studies of the poor.

9. Women Empowerment: NGOs also work for women empowerment. Some NGOs are formed specially to work for women rights. Some NGOs are formed specially to work for women rights. At times, NGOs act as a link between the Government agencies and women groups. For instance, the Government of India introduced the TREAD (Trade Related Entrepreneurship Assistance and Development) scheme which aims at economic empowerment of women through trade related training, information and counselling. Under this scheme, the NGOs get financial assistance from the Government, and the NGOs then provide the financial assistance to women entrepreneurs for entrepreneurship developmental activities. 10. Sustainable Development: NGOs have played a major role in pushing for sustainable development at the national and international level. Demonstration groups have been important drivers of dangerous wastes to a universal ban on land mines and the abolition of bonded labour. 11. Rural Development: NGOs either by themselves or in partnership with government agencies undertake rural development activities. They work towards alleviating poverty, generation of employment, infrastructure facilities, training to the unemployed in rural areas, provision of education, health and sanitation facilities. All these activities are undertaken in rural areas with the main focus on improving the lives of rural people. The principles laid down by UN Global Compact enable corporations to assemble primary tasks in the areas of individual rights, employment, environment and anti-corruption. 12.5 SUMMARY The subject of corporate social responsibility (CSR) continues to attract social scientists. The core concern is: do companies have duties toward stakeholders beyond shareholders? The CSR standard propose that as an alternative of targeting on increasing shareholders' wealth, corporations should be familiar with their responsibilities to a wider set of people and therefore devote a part of these rents for their welfare. Nevertheless, CSR is not restricted to the voluntary redeployment of company rents; it raises critical issues about company responsibilities in modern societies beyond their regular legal obligations. Because the limited liability corporation was formed to serve a communal purpose, CSR proponents consider it to

be just to anticipate that corporations will judge themselves as social actors, rooted in social interactions and responding to societal expectations and concerns. CSR perpetually entails that corporations dedicate a portion of their rents to stakeholders other than shareholders. Hence, CSR is primarily a political issue. Following Lass well (1958), we can envisage politics as a battle about who will get what, when, and how. Arguably, along with costs, CSR also has a payoff for firms and, ultimately, therefore for shareholders: it bestows legitimacy and provides the firm with the \"social license to operate\" (Gunning ham, Kagan, and Thornton 2004). In the long run, this is expected to interpret into enhanced access to resources required for firms' operations and concluding profitability. Yet, the division of rents that CSR entails remains an imperative source of concern. It opens a Pandora's box of similar issues: what portion of rents should be allocated for non-shareholders? Even among these stakeholders, whose preferences should take preference? Should the firms invest in labour issues, environmental issues, or community issues, known that the firm cannot persuade every electorate? CSR has its allocation of critics, both traditional and liberals. The traditional critics view CSR as dazzling \"agency conflict\": managers (as agents) are expected to capitalize on profits and allocate them to shareholders (their principals) instead of deciding how these profits might be spent by the corporation on charity. 12.6 KEYWORDS / APPREVIATIONS • Specialization: Devoting oneself to earn training in a particular branch of interest, skill or profession. • Autocracy: complete government by one being. • Risk: A measure of uncertainty about the value of an asset or the benefits of some economic activity. • Services: People or companies who perform tasks for others. Example – water company providing you with water in exchange for money • Enforcement: Insist or oblige on following action. 12.7 LEARNING ACTIVITY Analyse how CSR can be impacted by different forms of political ideology.

________________________________________________________________ ________________________________________________________________ 12.8 UNIT END QUESTIONS A. Descriptive Questions (Long Answers) 1. What is corporate social responsibility? Explain the different types of corporate social responsibility? 2. What is CSR audit? Explain the growth of CSR audit programme? 3. Explain in detail about Role of government and regulatory in CSR. 4. Explain the social impact on Corporate social responsibility audit. 5. Explain the implementation agencies of corporate social responsibility? Descriptive Questions (Short Answers) 1. Explain CSR audit. 2. Discuss in brief the role of international agencies in CSR. 3. List the steps for developing CSR programme. 4. What are general concerns for CSR audit coverage? 5. Name and detail few government agencies which play an important role in promoting CSR? B. Multiple Choice Questions 1. The following are the four different types of corporate social responsibility? a) Philanthropy, environment conservation, diversity and labour practices, and volunteerism. ethical, moral, social, and economic b) philanthropic, justice, economic, and ethical c) legal, moral, ethical, and economic d) Legal, philanthropic, economic and unethical.

2. The ____________ dimension of social responsibility refers to a business's societal contribution of time, money, and other resources. a) Philanthropic b) Ethical c) Volunteerism d) Strategic 3. Which of the thing mentioned below does the term Corporate Social Responsibility relate to? a) Ethical conduct b) Human rights and employee relations c) All of these d) None of these 4. Social sustainability refers to the following. a) Sharing benefits reasonably and justifiably and respecting the quality of life of communities and of human rights b) The concept of the venture supporting jobs and delivering income to communities in the short term c) Stewardship of resources and managing and conserving the environment d) The concept of the enterprise following jobs and distributing income to communities in the long term 5. Social, economic and ecological equity is the essential situation for achieving a) Sustainable development b) Social development c) Economic development d) Ecological development Answers: 1 - a, 2 - a, 3 – c, 4 – a, 5 – a 12. 9 REFERENCES Reference Books 1. Sanjay Agarwal K., Corporate Social Responsibility in India, Response Books, 2008

2. Hawkins David, E, (2006), “Corporate Social Responsibility: Balancing tomorrow’s sustainability and today’s profitability.”, Palgrave McMillan, ISBN 978-1-895536-97-3. Textbooks 3. Business Ethics and Corporate Social Responsibility by Michael Vas and Aurora Vaz. 4. Corporate Social Responsibility by Madhumita Chatterjee.