CSR Legislation .pptx

CSR Legislations
Dr. Madhavi V. Peddada
©Dr. Madhavi Peddada 2022 All rights reserved

CSR: GLOBAL
• CSR activities are part of business strategy and corporate policy
CSR activities had been conducted since decades in USA, UK,
Australia, Canada, UAE on voluntary basis
For CSR activities larger corporates had floated NGO/Trust
HCL Technologies Foundation Hindustan Unilever Foundation
CSR activities in Africa are at its infancy stage
World Business Council for Sustainable Development (WBCSD, 2000)

COUNTRY WBCSD, 2000
USA CSR is about taking personal responsibility for your actions and the impact that you have on society.
Companies and employees must undergo a personal transformation, re-examine their roles, their
responsibilities and increase their level of accountability
Netherland CSR is about making a leadership commitment to core values and recognizing local and cultural
differences when implementing global policies. It’s about companies endorsing the UN Convention
on Human Rights and the ILO Rights at Work
Taiwan CSR is the contribution to the development of natural and human capital, in addition to just making
a profit
Thailand CSR must be locally relevant and meaningful only if backed up by action
Philippines CSR is about business giving back to society
Brazil CSR is about commitment to strive for the best economic development for the community, to
respect workers and build their capacities, to protect the environment and to help create
frameworks where ethical business can prosper

COUNTRY WBCSD, 2000
Argentina CSR is about a corporation’s ability to respond to social challenges. It starts with developing good
relations with neighbours. Companies should make a strong commitment to education, worker
rights, capacity building, and job security. CSR is stimulating the economic development of a
community
Ghana CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds
the business opportunities in building the skills of employees, the community and the government
COUNTRY MCA, Government of India, 2011
India CSR urges businesses to embrace the “triple-bottom-line” approach whereby its financial
performance can be harmonized with the expectations of society, the environment and the many
stakeholders it interfaces with in a sustainable manner
REGION European Commission 2011-14
Europe CSR is the responsibility of enterprises for their impact on society’. The Commission believes in CSR
being company led with public authorities playing a supportive role through a mix of voluntary
policy measures and regulations

Europe CSR Voluntary Government,
NGOs & TUs demanding regulation
and compulsory reporting of social &
Env. impact of business
Austria CSR Cos Act, 1996 Sustainable Strategy,
2002 Govt adopted. Social, Ecological, Ethical.
Reporting CSR Guiding Vision, 2009 Eco-
efficiency & sustainable consumption
UK leader in CSR; 1 to
½ of the Cos per-tax
profits; Ministry of
CSR which pass
regulations, encourage
and compliment
voluntary services
France CSR moderately developed Laws
affecting CSR i.e., The Law on
Employment & Saving Plan, 2001 directs
fund managers to take into account
social, env, ethical consideration in
investment The Law of New Economic
Regulation May 2001 – requires listed
cos to introduce env. Social inf within
their yearly reports to shareholders;
Diversity Charter signed 1700 cos
launched to fight discrimination
Germany Federal
Ministry for Labour and
Social Affairs – est
National CSR Forum to
bring stakeholders to
work towards social
responsibility and provide
needed support to govt
to develop national CSR
Strategy

Scandinavian Countries Global leader in CSR & sustainability
Denmark; Norway; Sweden; Finland countries
CSR stems from the notion that companies sometimes must pursue a social issue not based on
the risk of cost involved or on the feasibility but for the simple reason that it is the right thing
to do. The key driver is the long-term vision of shared value creation.
Case Study of CSR activities of : Novo Nordisk, Ikea, H&M, Norsk Hydrom Novozymes and Statoil
Dow Jones Sustainability Index (DJSI); The Global 100 Index; The Adjusted Global Competitiveness Index; The
annual Transparency International Corruption Perceptions Index; & lead in most of the CSR and sustainability
performance indicators
Factors influencing CSR
Stakeholders engagement & corporate reputation
Creating Shared Values
Institutional Influence
Cultural Influence
Issues like climate change, fair trade,
consumer protection, socially
responsible production, green
marketing etc. drive CSR activities

LATIN AMERICA
Drivers of CSR
1. Altruism: Selfless concern for the wellbeing of others (catholic philanthropic is part of religion)
2. Utilitarianism: Considers best action to be one that maximizes utility (managing risk & image building)
USA Milton Friedman – social resp of business is to increase its profit
87 percent consumers purchased a product because co advocated for an issue they care
76 percent consumers refuse to purchase a product of the Co who supported issues contrary
to their beliefs
consumer expectations and behaviour in support of CSR can be called as the key driver
Education, health, community issues are taken up in CSR activities
Business houses are obliged to engage in economic, legal, ethical, and philanthropic activities

CSR: Developing Countries
India traditional philanthropy,
moral principles, business ethics &
community push
Africa philosophy of ‘Ubuntu’/ African humanism
foundation for inclusive approach
Nigeria religious beliefs, charitable traditions,
communalism South Africa movement of democracy &
reform towards justice
Drivers
1. Governance Gaps
2. Crisis Response
3. Market Access
4. International Standardization
5. Investment Incentives
6. Stakeholder Activism
7. Supply Chain
Country's socio-economic challenges like
poverty alleviation, education, infrastructure
development & health care drive CSR activities

All around the world CSR activities are undertaken and mostly indirectly promoted
through legislative text
CSR activities differ from developed countries to developing to underdeveloped
countries
Europe CSR is voluntary action; China CSR activities are driven by multiple
stakeholders; Japan pressure of foreign investors promote CSR activities which are
mainly focused on environment; philanthropy drive middle East and Africa CSR
activities; USA consumer awareness forced companies to undertake CSR activities;
India the Government compels the companies to undertake CSR activities
CSR

INITIATIVES RELATED TO CSR
1. United Nations Global Compact
2. United Nations Guiding Principles on Business and Human Rights
3. ISO 26000 Guidance Standard on Social Responsibility
4. International Labour Organization Tripartite Declaration of Principles
Concerning Multinational Enterprises on Social Policy
5. OECD Guidelines for Multinational Enterprise

Aim is to mobilize a global movement of sustainable companies and stakeholders to
create the world we want.
UN Global Compact is a on-binding United Nations pact to encourage businesses
and firms worldwide to adopt sustainable and socially responsible policies, and to
report on their implementation.
12 social issues like child labour, children’s right, education, forced labour, human
rights, indigenous people, labour, migrant workers, persons with disabilities, poverty,
gender equality, women’s empowerment; five environmental issues like biodiversity,
climate change, energy, food and agriculture, water and sanitation and three issues
related to governance like anti-corruption, peace and rule of law

International Organisation for Standardization is a NGO founded on 23
Feb, 1947
To develop & publish worldwide technical, industrial & commercial
standards
Headquarters at Geneva, Switzerland
English, French & Russian official languages
165 countries are its members

ISO 26000 Standard
Due to lack of recognition to the importance of corporate social
responsibility International Organisation for Standardization introduced
the ISO 26000 standard
ISO 26000 is an International Standard giving guidance/recommendations about how any
organization can improve its Social Responsibility and thus contribute to sustainable
environmental, social and economic development.
The core content of the standard comprises of
i) Seven principles;
ii) Seven core subjects and their related issues;
iii) Stakeholder engagement

International Labour Organization Tripartite Declaration of Principles Concerning Multinational Enterprises on Social Policy

OECD is an intergovernmental economic
organization to stimulate economic progress
and world trade. Countries work together to
address the economic, social and
environmental challenges of globalization.

OECD Guidelines for Multinational Enterprises
Provide voluntary principles and standards for responsible business
conduct consistent with applicable laws.
The Guidelines aim to ensure that the operations of these enterprises
are in harmony with government policies, to strengthen the basis of
mutual confidence between enterprises and the societies in which
they operate, to help improve the foreign investment climate and to
enhance the contribution to sustainable development made by
multinational enterprises

CSR Legislation .pptx

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