While we still await more detailed rules and instructions on the implementation of the new Corporate Social Responsibility code as laid out in the Companies Bill, 2012, listed below is a short summary of the guidelines issues by the Ministry of Corporate Affairs of India in December 2009.
The Government of India released guidelines to assist companies in India to understand the new voluntary Corporate Social Responsibility Code. As per these guidelines, the core elements that one must consider while establishing such a CSR policy are as follows:
- Care for Stakeholders – Respect the interests of all your stakeholders such as shareholders, customers, suppliers, society at large
- Ethical functioning – Ensure that your Company maintains the highest levels of standards in ethics, transparency and accountability.
- Respect for Workers’ Rights and Welfare – Ensure fair treatment of all employees by instituting policies covering key aspects such as safety, hygiene, training, healthcare, grievance redressal, anti-discrimination etc.
- Respect for Human Rights – Ensure that there are no Human Rights violations in the operations – either with employees, customers, society, production, labour etc.
- Respect for Environment – Ensure sustainability of key natural resources and optimal utilisation of land, water, energy to minimize the impact on the environment.
- Social and Inclusive Development – Respect the area that you work in and the people that work for you. Include the community through economic and social improvement activities.
We will update you with further details on implementation assistance shortly.