1. Companies have a responsibility to act in a way that benefits the people whilst protecting the environment. Corporate Social Responsibility (CSR) is a hot topic now, in India as well as international businesses. India is going to be the first county in the world that will have corporate social responsibility as law. This will bring good responsible corporate governance and will be having vigilant department and the eco system will not foster such event.( The Economic Times)
2. The new Companies bill passed in the Parliament mention that this year onwards the companies bill made it mandatory for firms to spend 2% of their average net profit on Corporate Social Responsibility (CSR) activities. If the companies that are not able to meet the norms will have to give explanation or face action including penality. (The Economic Times)
3. The National Voluntary Guidelines on Social, Environmental and Economical Responsibilities of Business .The importance of businesses in improving the quality of life is well recognized. New corporate social responsibility (CSR) guidelines for public sector companies emphasize on ethics and sustainability rather than on financing external projects. Reducing the carbon and bring in ethics and transparency in business. Enclosing the NVG website for you more information.
4. Currently, in most companies, CSR activities are a part of other management areas, mainly HR, marketing and corporate communication. Some companies undertake activities, including education, environment and housing, with the subtler objective of gaining business by establishing a relationship with communities.( the economic times)
CSR is much more than occasional support for development projects or projects in the local community. CSR relates to the actual business operations of companies: how do those operations impact on people and the environment? Companies should be held accountable for the consequences of their operations. The voluntary guidelines for the social, environmental and economic responsibilities of business (IICA-GTZ CSR Initiative, 2010), emphasize that responsible businesses alone will be able to help India meet its ambitious goal of inclusive sustainable development while becoming a powerful global economy by 2020.
The guidelines contain nine guiding principles, business should;
1. conduct and govern themselves with ethics, transparency and accountability,
2. provide goods and services that are safe and contribute to sustainability throughout their life cycle,
3. promote the wellbeing of all employees,
4. respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged,
5. respect and promote human rights,
6. respect, protect, and make efforts to restore the environment,
7. when engaged in influencing public and regulatory policy, should do so in a responsible manner,
8. support inclusive growth and development,
9. engage with and provide value to their customers and society at large, in a responsible manner.
Engage with businesses
Prakruthi seeks to promote responsible practices across different value chains, based on the understanding of the role businesses can play in sustainable development and poverty alleviation. Prakruthi enables marginalised stakeholders to engage meaningfully with businesses, creating new opportunities and access to markets.
In pursuing these goals, Prakruthi cooperates with companies to develop sustainability strategies. It seeks to promote CSR frameworks and develop tools to involve Small and Medium Enterprises (SMEs) in its sustainable value chain projects. Prakruthi provides support to companies in designing long-term sustainable supply chain transformation strategies.
Prakruthi plays a crucial role in enhancing the capacity of civil society organizations (CSOs) for developing, monitoring and implementing the various codes of conduct and standards systems adopted by businesses. Furthermore, Prakruthi is developing the capacity of smallholder farmers, improving their position in the supply chain with fairer terms of trade and market access.