Corporate Sustainability AY 2022-23: Nmims

Corporate Sustainability
AY 2022-23
NMIMS
Program Learning Objectives
Group Number Company Sustainability / ESG Report (H Division)

1 3i_sustainability-reports 2021 / 2022
2 Aarti Industries_sustainibility-report-2020-2021
3 Aditya Birla Fashion and Retail Limited
4 Alok-Business Responsibility Report 2019-20
5 Arvind SR 2019_final
6 Balmer-Lawrie-Sustainability-Report-2020
7 Birla Carbon Sustainability Report 2021
8 CESC Ltd. SR 20-21 (RP-Sanjeev Goenka Group)
9 Gujarat Fluorochemicals Limited 20 -21 (GFL)
10 Glenmark-Sustainability-Report-FY-2019-20
Upload before the completion of the 17th Session

Program Learning Objectives
Group Number Company Sustainability / ESG Report ( J Division)

1 GMR
2 Godrej Industries Chemicals 18-19 / 19-20 / 20-21
3 HCC Sustainability Report 2019-20
4 Indorama Ventures
5 JSW Energy Integrated Annual Report 2021
6 Jubilant Pharmova Limited | Sustainability Report 2020-21
7 L&T Finance Holdings Limited Sustainability Report - 2020
8 Mahindra lifespaces
9 Mahindra logistics-Sustainability-Report-2019-20
10 Maruti Suzuki Sustainability Report
Upload before the completion of the 17th Session

Global risks to business & its
impact on Corporate Sustainability
Session 1
Global risks to business & its impact on
Corporate Sustainability
• Corporate sustainability strategy-from risk to opportunities
• Corporate transition towards sustainability
• Operationalize corporate sustainability

“Choices have consequences,
that, in all probability extend beyond
intended outcomes.”
ESG Proficiency: Your choice to Survive or Thrive or Perish, the default choice is ‘Perish’.
ESG is already impacting business.
Tesla
S&P removed Tesla from its S&P 500 ESG Index
Tesla’s stock price fell by more than 7% on May 18, the day its removal was announced.
Tesla
S&P removed Tesla from its S&P 500 ESG Index
“Pushed further down the ranks relative to its global industry group peers,” said Maggie Dorn,
Senior Director and Head of ESG Indices, North America at S&P Dow Jones Indices.
(fell in the bottom 25% of its global GICS® industry group peers)
Major reasons include lack of low carbon strategy, codes of business conduct and rise in
racial discrimination cases.
Tesla’s stock price fell by more than 7% on May 18, the day its removal was announced.
Adani Ports and Logistics
Dow Jones officially removes the company from its Sustainability Index
Adani Ports and Special Economic Zone (Adani Ports) was dealt a major blow as it is officially removed
from S&P’s Dow Jones Sustainability Index. The removal comes in the wake of global giant State Street and
seven major Scandinavian and Dutch financiers either divesting from or banning/restricting further
investment in Adani Ports.
Adani Ports’ share price fell 5% on the day the exclusion was announced, the flood of exits from
investors is a cause for concern for the company’s executives.
Summary of investor backlash;
1. PIMCO banned future investment in Adani Ports bonds and clarified that it did not participate in the
January 2021 bond issue, due to links to the Carmichael coal project - March 2021
2. Deutsche Bank backed out of participating in an Adani Ports bond issue in January 2021.
3. State Street included Adani Ports in its ESG exclusion list. April 2021
4. SEB states that it sold its holding in Adani Ports in March 2021 and have since then made no investments
in the two companies [with links to Myanmar’s military] (footnote in Fair Finance article)
5. Nordea: “Regarding Adani Ports, we will sell that entire holding and we have already sold just over 80
percent” (provided by Fair Finance here on April 1 and linked to in the above article.)
6. Swedbank has excluded Adani Ports due to its connection to fossil fuels (reported on April 1 by Fair
Finance in footnote 13, page 2).
7. SPP’s January 2021 Excluded companies as of Q4 2020 “The following companies are excluded from all
SPP Fonder's funds in agreement with SPP's sustainability criteria - Serious environmental and climate
damage”. List includes Adani Ports and Special Economic Zone.
8. Carnegie 2020 Half year report; “An example of a company that has been avoided for environmental
reasons is Adani Ports & Special Economic Zone”.
9. DNB states that they divested at the end of March.
10. Danske Bank set restrictions prohibiting investment in Adani Ports and Adani’s Abbot Point coal port in
September 2020 due to the company’s “climate change contribution and harmful environmental practices”.
Adani to scrap its massive port development in Myanmar
"The company’s risk management committee, after a review of the situation, has decided to work on a plan on
exiting company’s investment in Myanmar, including exploring any divestment opportunities," Adani Ports
informed the stock exchanges.
Numerous news outlets reported on Adani's decision, which means the scrapping of a US $290-million new
port development on the Yangon River in Myanmar's biggest city. The reports said the decision could
result in the writing down of US $127 million.
Deutsche Bank
The U.S. Department of Justice (DOJ) has chastised Deutsche

Bank for dragging its feet on reporting a whistleblower complaint
alleging the bank overstated its investments in environmental,
social and governance (ESG) initiatives by hundreds of billions of
dollars, with the relatively muted penalty of extending its current
monitor and monitorship for nearly a full year, according to the
bank’s just-released annual report.
https://youtu.be/Eyuyx7jnitk
“Choices have consequences”
They manufacture shoes… and chose differently…
Starting from the beginning.
How did it all begin?
What is sustainable development?
• The first definition given was: “a development that meets the needs of
the present, without compromising the ability of future generations to
meet their own needs” (“Our Common Future”).
Sustainable Development is also a development that:

•Achieves and maintains economic development
•Enhances environmental protection
•Promotes social justice and equity
What is Sustainability Reporting?
• A sustainability report is an organizational report that gives information
about economic, environmental, social and governance performance.
• Sustainability reporting is not just generating a report from collected data;
instead it is a method to internalize and improve an organization’s
commitment to sustainable development in a way that can be demonstrated
to both internal and external stakeholders.
• Non-financial reporting, such as sustainability and CSR reporting, is a fairly
recent trend which has expanded over the last twenty years.
• Many companies now produce an annual sustainability report and there is a
wide array of ratings and standards around.
What is Sustainability Reporting?
• There are a variety of reasons why companies choose to produce these

reports:
• Transparency and accountability about risks and opportunities
• Improve internal processes
• Engage stakeholders
• Persuade investors
What is a Sustainability Report?
Impact
Business Continuity
Impact
ess E n Im
sin y vir pa
Bu lit on ct
ct a bi Practitioner’s Scorecard me
p a fit How How
nt
Im Pro Da
r ks an ta fr
ewo d r am
ep ew
a m Plan to address or o
Fr them tin rk
g
sk Ac
Ri es What What to
E SG niti nt
u he
tify port p la
en p
Id O n
&
The 4 Pillars of a Report?
4. Stakeholder
Communication
3. Targets,
metrics & Data
2. Stakeholder (Practitioners
Mapping and Scorecard)
1. Materiality inclusion Sustainability
Map Report
Frameworks - GRI
GRI Sustainability Reporting Principles
The GRI STANDARDS provide a set of principles which an organization should follow throughout the reporting process in order to have the best
possible outcome. These principles relate to the content of the report and to the quality of the information included in the report.
There are “tests” an organization can perform in order to ensure that each principle has been applied in the best possible way.
Content Quality
Reliability Balance
Stakeholder
Completeness Inclusiveness
Clarity Timeliness
Sustainability
Materiality Context
Comparability Accuracy
31
Frameworks - SASB
SAASB
Frameworks – Value Reporting
Frameworks - SDG
Frameworks - SDG
The Sustainable Development Goals
UNGC - Principles
Human Rights
• Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
• Principle 2: make sure that they are not complicit in human rights abuses.
Labour
• Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to
collective bargaining;
• Principle 4: the elimination of all forms of forced and compulsory labour;
• Principle 5: the effective abolition of child labour; and
• Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment
• Principle 7: Businesses should support a precautionary approach to environmental challenges;
• Principle 8: undertake initiatives to promote greater environmental responsibility; and
• Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
• Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Task Force on Climate-Related Financial
Disclosures (TCFD)
Disclosures (TCFD)
Disclosures (TCFD)
Net Zero – Science Based Targets
Green Washing
• Going green is becoming a profitable business strategy seeing the

environmental scenario today. Green business practices not only open a
new market of environment lovers, but also enjoy a favourable public
sentiment among existing customers, and supportive government policies
to help the company grow more.
• According to a report by Nielsen, 66% of global consumers say they’re

willing to pay more for sustainable brands. This, even though is good
news, has led to the creation of an atmosphere of suspicion among the
customers as according to a report by TerraChoice Environmental
Marketing, 98% of green-labelled products are actually greenwashed.
Green Washing
• What Is Greenwashing?
• Hsf f ox bt i joh!)bm t p!dbmm
f e!hsf f o!t i f f o*!sf gf st !up!ui f !bdu!pg!qpsusbzjoh!
cp"qti cpk| cvkqpκu"r tqf wev"qt"ugtxkegu"cu"gpxktqpo gpvcnn{ "htkgpf n{ "qpn{ "
hqt"vj g"ucmg"qho ctmgvkpi 0"Kp"vtwvj ."vj g"r tqf wev"qt"ugtxkeg"f qgupκv"
j cxg"qt"j ctf n{ "j cu"cp{ "gpxktqpo gpvcn"dgpghkvu0
• Kp"hcev."vj g{ "o c{ "dg"qr gtcvkpi "kp"f co ci kpi "y c{ u"vq"vj g"gpxktqpo gpv"
y j kng"o cmkpi "vj g"qr r qukvg"encko 0
Green Washing
Vj gtg"ctg"dcukecnn{ "vy q"v{ r gu"qh"i tggpy cuj kpi <
• C"eqo r cp{ "y j kej "encko u"etgf kv"hqt"cp"gzkuvkpi "r tqf wevkqp"
o gvj qf "cu"kh"vj g{ "y gtg"kphnwgpegf "d{ "cp"geq/htkgpf n{ "f ktgevkxg0"
Hqt"gzco r ng."c"eqo r cp{ "o c{ "gnko kpcvg"vj g"wug"qh"uj tkpm"y tcr u"
hqt"r cemci kpi "vq"ewv"equvu"dwv"r qtvtc{ "kv"cu"c"i tggp"kpkvkcvkxg0
• C"eqo r cp{ "o ki j v"nkg"cdqwv"vj g"geq/htkgpf nkpguu"qh"c"r tqf wev"d{ "
wukpi "r j tcugu"uwej "cu"νDguv"kp"encuu"geqnqi { ξ."r cemci gu"
uj qy kpi "i tggp"hkgnf u"cpf "hnqy gtu."egtvkhkecvkqpu"htqo "
wptgeqi pk| gf "ci gpekgu0"Vj ku"ku"c"o qtg"gzvtgo g"hqto "qh"
i tggpy cuj kpi 0
Green Washing
Green Washing - Volkswagen
Paris Agreement
COP
COP
NMIMS
Global Reporting Initiative (GRI)
• GRI Guidelines for Reporting

• GRI: Non-profit organization, Amsterdam based.
• GRI: a multi-stakeholder network of thousands based globally.
• They use and contribute to developing the Reporting Framework both
formally and informally.
• Promote change towards a sustainable economy by helping organizations to
set goals, measure performance and manage change.
• GRI Vision: “A sustainable global economy where organizations manage their
economic, environmental, social and governance performance and impacts
responsibly and report transparently.”
• GRI Mission: “To make sustainability reporting standard practice by providing
guidance and support to organizations”.
2
GRI Standard Structure
• GRI Standards are structured in a set of interrelated
modules, that can be referenced and used together. There
are three core modules, known as GRI’s 100 series. This
GRI 100 series are universal standards that apply to every
organization preparing a sustainability report, and are as
follows:
• GRI Standards 101: Foundation

• GRI Standards 102: General Disclosures
• GRI Standards 103: Management Approach
On referencing these universal GRI Standards, an

organization then look at the topic-specific GRI
Standards, to report on what is known as material topics.
A material topic is a topic that reflects a reporting
organization’s significant economic, environmental and
social impacts; or that substantively influences the
assessments and decisions of stakeholders – GRI 101:
Foundation 2016, Key Terms.
These topic-specific Standards are organized into three
series: 200 (Economic topics), 300 (Environmental topics)
and 400 (Social topics).
3
Structure
The GRI STANDARDS provide a set of principles which an organization should follow throughout the reporting process in order to have the best
possible outcome. These principles relate to the content of the report and to the quality of the information included in the report.
Content Quality
Reliability Balance
Stakeholder
Completeness
Inclusiveness
Clarity Timeliness
Sustainability
Materiality
Context
5
GRI Reporting Principles: Content
• Stakeholder Inclusiveness: The organization should
identify its stakeholders and explain how it has
responded to their reasonable expectations and
interests.
• Sustainability Context: The report should present the Stakeholder
Completeness
organization’s performance in the wider context of Inclusiveness
sustainability.
• Materiality: The report should cover Aspects that
reflect the organization’s significant economic,
environmental and social impacts; or substantively
influence the assessments and decisions of Sustainability
Materiality
stakeholders. Context
• Completeness: The report should include coverage
of material Aspects and their Boundaries, sufficient
to reflect significant economic, environmental and
social impacts, and to enable stakeholders to assess
the organization’s performance in the reporting
period.
6
GRI Reporting
Principles: Quality
Balance: the report should reflect positive and Reliability Balance
negative aspects of the organization’s
performance to enable a reasoned assessment of
overall performance.
Timeliness: the organization should report on a
regular schedule so that information is available Clarity Timeliness
in time for stakeholders to make informed
decisions.
Accuracy: the reported information should be
sufficiently accurate and detailed for stakeholders
to assess the organization’s performance.
Comparability: the organization should select, Comparability Accuracy
compile and report information consistently. The
reported information should be presented in a
manner that enables stakeholders to analyze
changes in the organization’s performance over
time, and that could support analysis relative to
other organizations.
7
GRI Reporting
Principles: Quality
Clarity: the organization should make

information available in a manner that is Reliability Balance
understandable and accessible to
stakeholders using the report.
Reliability: the organization should gather,
record, compile, analyze and disclose Clarity Timeliness
information and processes used in the

preparation of a report in a way that can
be subject to examination and that
establishes the quality and materiality of Comparability Accuracy
the information
8
UNGC - Principles
The Ten Principles of the United Nations Global Compact are derived
from: the Universal Declaration of Human Rights, the International
Labour Organization’s Declaration on Fundamental Principles and Rights
at Work, the Rio Declaration on Environment and Development, and the
United Nations Convention Against Corruption.
UNGC - Principles
Human Rights
• Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
• Principle 2: make sure that they are not complicit in human rights abuses.
Labour
• Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to
collective bargaining;
• Principle 4: the elimination of all forms of forced and compulsory labour;
• Principle 5: the effective abolition of child labour; and
• Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment
• Principle 7: Businesses should support a precautionary approach to environmental challenges;
• Principle 8: undertake initiatives to promote greater environmental responsibility; and
• Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
• Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
The Sustainable Development Goals
SAASB
TCFD
https://vimeo.com/473093899
TCFD
TCFD
Triple Bottomline
Triple Bottomline
The journey from Philanthropy-
CSR to Corporate Sustainability
Learning Session 5
Understanding Corporate Social
Responsibility (CSR)
• As a concept, CSR has been around much longer than sustainable development or the
other concepts discussed in this paper. A 1973 article by Nicholas Ebserstadt traced the
history of CSR back to ancient Greece, when governing bodies set out rules of conduct
for businessmen and merchants (Managing Corporate Social Responsibility, Little,
Brown and Company, 1977). The role of business in society has been debated ever
since. According to Archie B. Carroll, one of the most prolific authors on CSR, the
modern era of CSR began with the publication of the book Social Responsibilities of
the Businessman by Howard Bowen in 1953. Since then, many authors have written on
the topic. For the first few decades after 1953, the main focus of these writings was
whether corporate managers had an ethical responsibility to consider the needs of
society. By 1980 it was generally agreed that corporate managers did have this ethical
responsibility, and the focus changed to what CSR looked like in practice.
• The term corporate social responsibility (CSR) refers to practices and policies
undertaken by corporations that are intended to have a positive influence on the world.
The key idea behind CSR is for corporations to pursue other pro-social objectives, in
addition to maximizing profits.
• As important as CSR is for the community, it is equally valuable for a company. CSR
activities can help forge a stronger bond between employees and corporations, boost
morale, and help both employees and employers feel more connected with the world
around them.
• For a company to be socially responsible, it first needs to be accountable to itself and its
shareholders. Often, companies that adopt CSR programs have grown their business to
the point where they can give back to society.
• Corporate social responsibility (CSR) refers to managerial practices focused on welfare
creation (ML, Barnett, 2007) as per Brown the definition of CSR is the obligations of
businessmen to pursue those policies, to make those decisions, or to follow those lines
of action which are desirable in terms of the objectives and values of our society
(Bowen, H. R, 1975).
• Modern definition of corporate social responsibility (CSR) is a self-regulating business

model that helps a company be socially accountable—to itself, its stakeholders, and the
public.
The Global Story
• 1950- 1960s
• The focus was on general good deeds for society at large. The drivers of change were events, people, and
ideas who were instrumental in shaping the emerging social changes.
• 1970s
• Thinkers such as Archie Carroll propagated the change in thought which argued that 'firms have
responsibilities towards societies including economic, legal, ethical and discretionary.
• 1980s
• Thomas Donaldson and Thomas W. Dunfee highlighted the 'tactic social contract between the firm and
society' characterised by an enhanced responsiveness towards stakeholders.
• 1990s
• CSR became a strategic argument that focused on Freeman's stakeholder theory. It started correlating with
the definition that viewed it as a concept 'whereby companies integrate social and environmental concerns
in their business operations and interactions with their stakeholders'.
The India Story
• CSR in India has travelled through different phases, such as community engagement,
socially responsible production and socially responsible employee relations. Initially, it
was more about philanthropic endeavors that were performed but not deliberated and
documented.
• Prior to Independence, it had a national character encapsulated within it that extended
support to India's freedom movement. CSR in India now appears to be thoughtful and it
incorporates global knowledge of CSR in its discourse.
The India Story
• Before 1947
• The concept of charity was carried out by businessmen and philanthropists with a strong religious sentiment. CSR was deeply influenced by
family values, traditions, culture, and religion, as also by industrialization. The wealth of businessmen was spent on social welfare, by setting up
religious, educational and healthcare institutions.
• Post 1947
• The Gandhian philosophy of trusteeship became popular. Industrialists set up trusts for colleges, and research and training institutions. These
trusts were also involved in social reform like rural development, education, and empowerment of women.
• Post 1991
• Economic liberalisation opened the floodgates for foreign investment. Entry of global players kick-started competition in the market and the
global CSR standards motivated the local players to enhance their brand values and meet consumer satisfaction.
• Post 2000
• Global information sharing allowed the Indian government to incorporate the best practises that gradually made India the first country to
mandate CSR. In addition to financial resources, the undertone has been focused on partnership and the triple-bottom-line of engagements.
• Post 2014
• After the enforcement of the new Companies Act, we can see a significant inflow of contributions by businesses towards socio-economic and
environmental initiatives. Education, healthcare, livelihood and skill development remain the areas receiving a majority of the CSR funds.
• Post 2020
• The Ministry of Corporate Affairs in the year 2021 introduced Amendment Rules making significant changes to section 135 of the Act and the
Rules thereunder. The Amendment Rules makes it mandatory for every corporate entity falling within the definition of “Corporate Social
Responsibility” to have a Corporate Social Responsibility Committee to formulate and recommend to the Board a CSR Policy and ensure
implementation of the CSR and other compliances prescribed thereunder.
The journey from Philanthropy-
CSR to Corporate Sustainability
Learning Session 6
CSR Rules
• CSR Rule 1: Companies with Annual Profit of Rs 5 Crore or Annual Turnover of Rs 1000 Crore or Net Worth of Rs 500
Crore must spend on CSR activities 2% of their average profit over the last three years.
• CSR Rule 2:Every company falling in the ambit of CSR laws must form a CSR policy document and make it public
• CSR Rule 3: The companies with prescribed CSR amount of more than Rs 50 lakh must constitute a CSR committee
consisting of 3 or more directors, to plan, monitor and assess the impact of company’s CSR activities
• CSR Rule 4:The CSR activities undertaken by the companies must be included in their annual report and also in their
Business Responsibility Report (BRR).
• CSR Rule 5: As per the CSR Rules, the provisions of CSR are not only applicable to Indian companies, but also applicable
to branch and project offices of a foreign company in India.
CSR Rules
• CSR Rule 6: Expenditure on CSR does not form part of business expenditure.
• CSR Rule 7: For undertaking Corporate Social Responsibility activities, the company shall not limit itself to local area or
areas around it where it operates but shall select areas across the country.
• CSR Rule 8: The CSR Committee shall also prepare the CSR Policy in which it includes the projects and programmes
which is to be undertaken, prepare a list of projects and programmes which a company plans to undertake during the
implementation year and also focus on integrating business models with social and environmental priorities and process in
order to create shared value.
• CSR Rule 9: In the annual CSR report the companies must include the prescribed CSR expenditure and also report total
spend amount and non-spent amount in separate headers.
• CSR Rule 10: In case, a company is unable to spend the minimum required expenditure, it has to give the reasons in the
Board Report for non-compliance so that there are no penal provisions are attracted by it.
Section 135 of Companies Act - CSR
Committee and Policy Formulation
• The Section 135 of Companies Act makes provision for formation of CSR Committee for the
companies who need to mandatorily spend on CSR. However, the company with prescribed
CSR budget of Rs 50 lakh or less do not necessarily need to form such a committee
• Further, the Section 135 also specifies that every company must have a CSR policy which
shall indicate the activities to be undertaken and recommend the amount of expenditure to be
incurred on the activities and monitor the CSR Policy of the company.
• The Board shall take into account the recommendations made by the CSR Committee and
approve the CSR Policy of the company.
Areas to spend your CSR money -
Section VII of Companies Act 2013
• Section VII of the Companies Act 2013 prescribes the area in which companies can do
their CSR activities. Thus, Section VII also broadly defines the scope of CSR activities
in India. Below are the specific CSR areas as prescribed in Section VII of the
Companies Act 2013:
(i) Hunger: Eradicating hunger, poverty and malnutrition, promoting health care including
preventive health care and sanitation including contribution to the ‘Swachh Bharat Kosh’
set up by the Central Government for the promotion of sanitation and making available
safe drinking water.
(ii) Education and Livelihood: Promoting education, including special education and
employment enhancing vocational skills especially among children, women, elderly, and
the differently abled and livelihood enhancement projects;
(iii) Health: Promotion of healthy practices, activities related to enhancing health in

communities, Setting-up clinics and camps for health check-ups, providing sustainable
health support to community
(iv) Gender and Social Equality:Promoting gender equality, empowering women, setting
up homes and hostels for women and orphans; setting up old age homes, day care centres
and such other facilities for senior citizens and measures for reducing inequalities faced
by socially and economically backward groups
(v) Environment: Ensuring environmental sustainability, ecological balance, protection of flora
and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining
quality of soil, air and water including contribution to the ‘Clean Ganga fund’ set up by the
Central Government for rejuvenation of river Ganga
(vi) Art & Culture: Protection of national heritage, art and culture including restoration of
buildings and sites of historical importance and works of art; setting up public libraries;
promotion and development of traditional arts and handicrafts
(vii) Army: Measures for the benefit of armed forces veterans, war widows and their dependents
(viii) Sports: Training to promote rural sports, nationally recognised sports, paralympic sports
and Olympic sports;
(ix) PM Relief Fund: Contribution to the Prime Minister’s National Relief Fund or any other
fund set up by the Central Government for socio-economic development and relief and welfare
of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women;
(x) Incubators: Contributions or funds provided to technology incubators located within
academic institutions which are approved by the Central Government;
(xi) Rural development: Projects related to rural development
(xii) Slum Development: Slum area development in urban areas
Besides the above-mentioned areas, the Companies Act, 2013 also includes a few other
important areas where the CSR money can be utilised.
Contribution to a Corpus as a CSR
spend
• As per the CSR rules, the Contribution to Corpus of a Trust/ society/ section 8
companies etc. qualifies as CSR expenditure. However, the Contribution to these
Corpus will qualify only when the Trust/ society/ section 8 companies etc is created
exclusively for undertaking CSR activities or where the corpus is created exclusively
for a purpose mentioned in the areas as defined in above-mentioned Schedule VII of the
Act.
Important Questions
• Q: How is the prescribed CSR budget • Q: Whether the ‘average net profit’
calculated for a company? criteria is ‘Net profit before tax’ or ‘Net
• A: The prescribed CSR budget for a profit after tax’?
company is calculated as 2 % of the • A: Computation of net profit for calculation
‘average net profit’ of the company over of prescribed CSR budget is required to be
last three years. Thus, the companies can done on ‘Net Profit Before Tax’.
exactly calculate how much they need to
spend on CSR activities in a particular
financial year.
Important Questions
• Q: Which companies fall in the ambit of • Q: What is meaning of ‘any financial

mandatory CSR provisions? year’ for CSR obligation?
• A: Any company with net worth of Rs 500 • A: To check whether a company falls in the
Crore or more, or Turnover of Rs 1000 ambit of mandatory CSR provisions, "Any
Crore or more; or net profit of Rs 5 Crore financial year",means any of the three
or more in ‘any financial year’ is required preceding financial years.
to spend 2 % of their average profit of last
year on CSR activities.
Important Questions
• Q: From which Financial Year the • Q: Is the amount spent on salaries of

Corporate Social Responsibility (CSR) company employees who are exclusively
compliance was made mandatory in appointed to carry out CSR activities be
India? counted as CSR spend?
• A: The compliance of the provisions of • A: As per the CSR provisions, salary paid
CSR under the Companies Act, 2013 i.e. by the companies to regular CSR staff as
constitution of CSR Committee, well as employees, who render their
formulation of CSR Policy, the spending of services for CSR will be part of
requisite amount on CSR activities came Administrative overheads and should not
into force from April, 2014. exceed 5% of the total CSR expenditure.
Important Questions
• Q: Whether CSR expenditure of a • Q: Is there any tax benefits that can be

company can be claimed as business availed under CSR provisions?
expenditure? • A: No. There are no specific tax exemptions for
CSR expenditure as CSR related expenses do
• A: The amount spent by a company not form part of business expenditure. While no
towards CSR cannot be claimed as business specific tax exemption has been extended to
expenditure. expenditure incurred on CSR, spending on
several activities like contributions to Prime
Minister’s Relief Fund, scientific research,
rural development projects, skill development
projects, agricultural extension projects, etc.,
which are considered CSR activities find place
in Schedule VII, already enjoy exemptions
under different sections of the Income Tax Act,
1961.
Important Questions
• Q: Which activities would not qualify as CSR Expenditure?

• A: Below are the CSR programs/activities which are not considered as part of mandatory CSR
provisions in India.
• CSR programmes that benefit only the employees of the company and their families are not considered as CSR
activitiesin accordance with section 135 of the Act
• One-off events such as marathons/ awards/ charitable contribution/ advertisement/sponsorships of TV
programmes etc don’t qualify as part of CSR expenditure
• Expenses incurred by companies for the fulfilment of any Act/ Statute of regulations (such as Labour Laws,
Land Acquisition Act etc.) are not count as CSR expenditure under the Companies Act
• Any direct or indirect funding or contribution made to any political party or group is not considered as a CSR
activity
• Activities undertaken by the company in pursuance of its normal course of business are not counted as CSR
activity.
Important Questions
• Q: Can donation of money to a trust by a company be treated as CSR expenditure of the

company?
• A: Yes. Contribution to Corpus of a Trust, Society or a Section 8 companies will qualify as CSR
expenditure as long as :
(a) the Trust/ Society/ Section 8 company etc. is created exclusively for undertaking CSR activities or
(b) where the corpus is created exclusively for a purpose directly relatable to a subject covered in Schedule
VII of the Act
• --------------------------------------------------------
• Q: Is it mandatory for foreign Companies also to give reporting of their CSR activity?
• A: Yes. In case of a foreign companies need to add an Annexure on CSR report while filing their balance
sheet under the relevant section of Companies Act in India.
Important Questions
• Q: Whether expenditure incurred on disaster relief qualifies for CSR or not?

• A: The following disaster relief programmes are covered under CSR provisions:
• Medical aid can be covered under ‘promoting health care including preventive health care.’
• Food supply can be covered under eradicating hunger, poverty and malnutrition.
• Supply of clean water can be covered under ‘sanitation and making available safe drinking water’
• Q: What are the special provisions made to incorporate COVID related work under
CSR provisions?
• A: Considering the large-scale support needed to fight COVID pandemic, corporates have been
allowed to spend their CSR money on COVID related relief work.
Important Questions
• Q: Treatment of surplus arising out of CSR activities(CSR Rule)
• Any surplus arising out of the CSR activities shall not form part of the business profit of a
company. Such surplus shall be ploughed back into the same project or shall be transferred to the
Unspent CSR Account and spent in pursuance of CSR policy / Annual action plan of the
company or transfer such surplus amount to a Fund specified in Schedule VII, within a period of
six months of the expiry of the financial year
Important Questions
• Q: CSR Reporting(CSR Rule)

• From financial year starting on or after April 01, 2020 CSR report shall be in Annexure – II,
previous years Annexure I shall continue.
• Annexure II mandates additional disclosures regarding: Impact assessment Amount available for
Setoff CSR amount spent against ongoing project/other than ongoing project Administrative
overhead Unspent amount against ongoing project/other than ongoing project Details regarding
capital assets
Important Questions
• Q: Impact Assessment(CSR Rule)
• A company having the obligation of spending average CSR amount of Rs 10 Crore or more in the
three immediately preceding financial years in pursuance of Section 135(5) of the Act, shall
undertake impact assessment.
• Impact assessment to be done by an independent agency.
• Impact assessment to be done in respect of CSR projects having outlays of one crore rupees or
more, and which have been completed not less than one year before undertaking the impact study.
• The impact assessment reports shall be placed before the Board and shall be annexed to the
annual report on CSR.
• Impact assessment expenditure for a financial year shall not exceed five percent of the total CSR
expenditure for that financial year or fifty lakh rupees, whichever is less.
ISO 26000
ISO 26000
• In 2010, the International Organization for Standardization (ISO) released ISO 26000, a
set of voluntary standards meant to help companies implement corporate social
responsibility. Unlike other ISO standards, ISO 26000 provides guidance rather than
requirements because the nature of CSR is more qualitative than quantitative, and its
standards cannot be certified. ISO 26000 clarifies what social responsibility is and helps
organizations translate CSR principles into practical actions. The standard is aimed at
all types of organizations, regardless of their activity, size, or location. And, because
many key stakeholders from around the world contributed to developing ISO 26000,
this standard represents an international consensus.
CSR Theories
Multiple perspectives on CSR
Theories
Economic Politics
•Instrumental
•Political
Social
Integration
Ethics
•Integrative
•Ethical
Instrumental Theories:
Strategies for achieving competitive
• CSR Focus: means to the earn advantages
profits/ Maximizing shareholder • Social investments in competitive context ( e.g
Employees of IT companies engaged in building
value computer literacy skills among children)
• Undertaking social activity if it is • Natural resource-based view of the firm and its
consistent with wealth creation dynamic capabilities (e.g Creating water
positive status, investment in circular economy)
• Example: Agri companies • Strategies for the bottom of the economic
creating water resources pyramid ( e.g Use of SHGs to market products,
disruptive innovations)
• Cause-Related Marketing: Jago Re Campaign
Create Win-Win Situation

Corporate constitutionalism
Political Theories • Social responsibility of business arises from the
amount of social power they have ( Social Power of
equation & Iron Law of Responsibility)
CSR focus: Responsible use of • Public values and political ideas of various
Social Power of the Corporation constituency groups/ stakeholders) impacts and
influences the decisions of managers ( example:
• Relationship of Business with Society Affirmative Actions)
• Social Duties & Rights of Corporation
Integrative Social Contract Theory
• Social Contract between business & Society:
Sub theories Business has obligations towards society ( Macro &
Micro Contract)
• Corporate Constitutionalism
Corporate citizenship
• Integrative Social Contract
• Businesses have duties to execute social and
• Corporate Citizenship environment responsibilities in the community
Integrative Theories Stakeholder management
• Solicit cooperation from various
stakeholder groups
CSR Focus: Integration of Social Demands by • Design strategies to manage diverse range
Business of stakeholders
• Need for stakeholder dialogues
• Issues management: How do business
organizations become socially responsive Corporate social performance
to social issues. Why & how do they
manage these social issues? • Principles & practices adopted by
businesses’ to respond to stakeholder
• The principle of public responsibility: demands (social and environmental) to
Adherence to law & public policy to seek legitimacy
satisfy societal expectations
• Strategies adopted by Business in
influencing public policy
Ethical Theories
CSR Focus: Right thing for Universal Rights- Framework based on

human rights, labour rights &
creating sustainable society environment
• Universal Declaration of Human Rights 1948,
• Global Sullivan Principles
Normative stakeholder theory • SA 8000 Certification
• UN Global Compact
• Managerial relationships with
stakeholders: Based on normative/ moral Business incorporating social &
commitments rather than on a desire to economic dimension to attain the
use them solely to maximize profits goals of Sustainable Development
Businesses to follow principle of

Creating Common Good
Carroll’s CSR Pyramid
Models of CSR
Robert Ackerman’s model
(strategy) of CSR
• Responsiveness, not responsibility
should be the goal of corporate social
endeavors.
• Corporate response to social issues has
a life cycle: Corporate recognition of the
problem, Analyzing the problem,
Source: Carroll, A.B. (1991). The pyramid of corporate social
Seeking solutions to solve the problem, responsibility: Toward the moral
and implementing solutions management of organizational stakeholders. Business
Horizons 34: 39-48.
The Concentric Circles Model of CSR
Models of CSR
Intersecting Circles Model of CSR
Source: Committee for Economic Development (CED).

(1971). Social responsibilities of business corporations.
New York: Committee for Economic Development
Source: Schwartz, M. S., & Carroll, A. B. (2003).

Corporate social responsibility: A three-domain
approach. Business Ethics Quarterly, 13(4), 503–
530
Models of CSR: 3C-SR Model
Source: Meehan, J., Meehan, K., & Richards, A. (2006). Corporate social responsibility: 3C-
SR model. International Journal of Social Economics, 33(5–6), 386–398.
Models of CSR
Liberal Model of CSR
Stakeholder Model ( Edward
( Friedman 1971) Freeman 1984)
• It is sufficient for a business to • Managers are responsible for
obey the law and generate corporate decisions since they
wealth. influence various stakeholders.
• Through taxation and private • Managers should balance costs
charitable choices social ends and benefits for the wide range of
can be met people affected by the decisions
Indian Models of CSR
Ethical Model- Gandhian Statist Model

Trusteeship Theory
• Elements of corporate
• Business men are Trustees of wealth
• ‘Trusteeship’ emphasizes on rule of
responsibility, especially those
equity. Capitalists should ‘voluntarily’ relating to community and worker
surrender significant portion of relationships are enshrined in
private wealth to meaningfully labour laws, environmental laws
establish trust between the rich and
the poor.
and management principles.
• Principle of Frugality • Incorporation of Section 135 in
• Village Development Companies Act 2013
Integration of CSR in Business
Model - Workplace CSR
& Business
Growing Importance of CSR
1. Stakeholders are demanding it - Customers/ Employees/ Investors/ NGO’s/ government
2. Increased Role of Business - Size/ influence of business vs. governments
3. Globalisation: New CSR issues
• Diverse cultures/ norms/ jurisdictions
• Need to achieve consistency globally
4. Complexity and risks
• Increasing complexity, likelihood and significance of risk and wrongdoing
• New laws and regulations
• Greater influence of NGO’s and other stakeholders
• Increased merger and acquisitions
5. Greater likelihood of discovery
• 24 hour global news, media more aggressive
• High speed info access and dissemination
6. Greater cost of misconduct
• Fines, penalties, reputation damages
• Growing interest on softer CSR issues- social and environmental
Business and Society Relationship
Community
Stakeholders Government
Business
Consumers Planet
Definition
• CSR has been defined in several ways. A good definition refers to a company's
commitment to operating in an economically, socially and environmentally sustainable
manner, while recognizing the interests of its stakeholders, including investors,
customers, employees, business partners, local communities, the environment and
society at large.
Definition
• Despite the lack of a single definition, by examining different definitions from around
the world, it is clear that there are commonly held understandings about what
constitutes CSR.
• CSR is now a mainstream approach to business: “The movement for CSR has won the
battle of ideas …CSR commands the attention of Executives Everywhere.” (Economist
2005)
CSR Components
Leadership
Commitment
Integration into
business
WORKPLACE COMMUNITY ENVIRONMENT MARKETPLACE

CSR Components
Leadership
Commitment • Equal Opportunity
• Working Hours
• Staff Training and Development
• Health and Safety
• Freedom of Association and Human Rights
Integration into • Bribery and Corruption
business

CSR Components
Leadership
Commitment • Community Investment (cash/in-kind/
volunteering)
• Community protection
Integration into
business

CSR Components
Leadership
Commitment • Environmental protection
• Impact on air, water, biodiversity etc
Integration into
business

CSR Components
Leadership
Commitment • Suppliers
• Customers
Integration into
business

Key Issues in CSR
• Labour rights: • Human rights
• child labour • cooperation with paramilitary forces
• forced labour • complicity in extra-judicial killings
• right to organise • Poverty Alleviation
• safety and health • job creation
• Environmental conditions • public revenues
• water & air emissions • skills and technology
• climate change
Corporate Social Responsibility is
thus only about two aspects
Increasing the Positive Contributions: Further steps
taken using its resources, core competence, skills,
location and funds for the benefit of people and the
environment
Reducing the Negative Effects: Steps taken by a

company to neutralise, minimise or offset the
harmful effects caused by its processes and
product-usage
Four Dimensions of business
strategy implied by CSR
CSR
The foundation of To be a good
Society also Expects it to act in
a responsible corporate citizen in
demands the an ethical manner
company is to be the communities in
company obey the toward all
profitable, but not which it lives and
law, stakeholders
at any cost. operates
Examples of Corporate Social
Responsibility…
No Type of Examples of socially responsible activities
Organisation
1 Movie Theatres / -Screening of social message films
Multiplexes / Malls -Special shows for underprivileged groups
-Offering table space for NGOs
-Adopting a nearby garden / open space and maintaining it
2 Petrol Pumps -Promoting accident awareness, pedestrian safety

-Checking and offering fuel efficiency tips
3 Shops -Awareness posters of symptoms of different diseases
e.g.: Chemists -Collecting & donating old medicines to charitable hospitals
-Offering discounted medicines for poor patients
4 Private Hospitals -Creating a Patients’ Information Centre & Library

-Encouraging citizens to help accident victims by taking care of legal
aspects of accidents / emergency cases
Examples of Corporate Social
Responsibility…
No. Type of Organisation Examples of socially responsible activities
5 Private Schools & Colleges -Getting Alumni to institute scholarships & prizes
-Offering space for training / classes / sports, etc.
-Adopting a local garden
6 Housing Societies -Suggesting solutions for local problems to govt & media
-Maintaining nearby public spaces, including footpaths
-Offering space in society (garage, etc.) for use for
training/classes. etc. and as a material collection centre
7 Hotels and Restaurants -Donating excess food responsibly

-Composting food waste
8 Media (TV, print, radio) -Featuring profiles and achievements of NGOs / citizens
-Spreading social service messages
Examples
CSR at TATA Group
Principles first
An implicit sense of ethical business conduct has been the cornerstone of the Tata
way in the corporate governance sphere. On issues ranging from customer care and
business excellence to financial propriety and more, explicit rules and regulations
supplement the traditional values on which the Tata Group companies has been
shaped.
A feel for people

With some 2,46,000 members in its diverse and widespread family, the Tata Group is more
than just another employer. The Group's many pioneering initiatives to benefit and empower
employees have few parallels anywhere in the world, and it has blended its traditional
benevolence with evolving human resource methodologies to deliver a whole lot beyond mere
jobs
CSR at TATA Group
Green at heart
The Tata ethos places a special emphasis on environmental and ecological issues.
The Group's efforts to preserve and regenerate the environment find expression in
the slew of projects and programmes in has undertaken in and around its facilities
and operations.
Caring and sharing

From health and education to livelihoods and women-children welfare, from tribal hamlets in
Jharkhand and the rural outback of Gujarat to the high ranges of Kerala and disadvantaged
villages in Andhra Pradesh — the community work being undertaken by the companies and
trusts of the Tata Group touches a multitude of Indians across the land. Beyond purely social
work, this support extends to individuals and institutions pursuing artistic and sporting
excellence.
CSR at BRITANNIA
Bai Jerbai Wadia who single mindedly and committedly set out to construct low cost baugs or housing
colonies in Bombay for lower and middle-class Parsis.
Health care facilities was another area close her heart . With her inspiration, her sons Ness and Cusrow set
about building much needed hospitals in Bombay.
The Sir Ness Wadia Foundation, a charitable trust set up in 1969. The trustees have disbursed funds to a
broad spectrum of causes from scholarships for the disabled to drought relief in Bombay.
Their income was Rs1700 cr. Spent 3.4% on CSR. Net profit was Rs.150 cr. Karmayog CSR rating – 2/5
Principal CSR activity done in :- healthcare, disaster, general donations

CSR at AMUL
three tier co-operative organization.
1st tier :- Co-operative society at the village, of which; milk producers are voluntary members. They
purchase milk form member & sell it to the district level co-operative.
2nd tier :- The district co-operative that processes milk into milk products, markets locally & sells surplus to
the state co-operative for national & international marketing. There are 12 district co- operatives managed by
a 15 member board elected by nominated representatives or chairmen of the village co-operatives.
3rd tier :- The state level co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF)
responsible for national and international marketing of milk and milk products produced and sold to it.
Implementation,
Monitoring &
Measurement
Implementation:
(Simplifying ESG)
What is sustainable development?
• The first definition given was: “a development that meets the needs of the present,
without compromising the ability of future generations to meet their own needs” (“Our
Common Future”).
• Sustainable Development is also a development that:

•Achieves and maintains economic development
•Enhances environmental protection
•Promotes social justice and equity
What does ‘Building’ ESG Practice
entail for a company?
Reporting
‘Building’
ESG Practice
Simplifying Sustainability
Impact
Business Continuity
Impact
Im
s s pa c
e tE
u sin ty nv
t B ili Practitioner’s Scorecard iro
p c
a fitab How How n me
Im Pro nt
Da
s ta
r k fra
ew
o rep mew
m ort ork
Fra Plan to address them ing an
d
is k& What What Ac
R t
SG ities on
E the
tify ortun pla
n p
Ide Op n
The 4 Pillars of a good Sustainability
Practice
3. Targets,
2. Stakeholder metrics & Data
1. Materiality 4. Stakeholder Sustainability
Mapping and
Map (Practitioners Communication Practice
inclusion
Scorecard)
What does a Sustainability Report
look like?
• Review Sustainability Reports
Materiality
Stakeholder Mapping
Weighted Average
IMPACT
Stakeholder Engagement: Priotixe
Impact of Venerability of
Stakeholder Group Impact of Success Resilience
Failure relationship
Owners High High Low High

Customers High Medium Low Low
Employees
Industry
Community
Environment
Government
Society organizations
9/4/20XX Presentation Title 12

Monitoring & Measurement
(ESG KPIs)
(Practitioner’s Scorecard)
The Practitioner’s
Scorecard
The Practitioner’s Scorecard
It is a scorecard that describes It is a tool that defines how will

the Sustainability Strategy. the strategy be implemented.
How will the results be The actions that needs to be

measured & taken.
• Sample
Prosperity
To succeed financially, how should we appear to
our shareholders (Corporate Management)?
Customer Process
To achieve our mission, how To satisfy our shareholders & customers, what
should we appear to our customers? business processes must we excel at?
People
(Staffing / Skills / Roles /
Responsibilities)
To achieve our mission, how will we sustain our
ability to change & improve?
Prosperity ROCE
Customer Loyalty
Customer
On-time Delivery
p l e
a m
Ex Process
Process Quality Process Cycle Time
People
Employee Skills
(Staffing / Skills / Roles /
Responsibilities)
National Voluntary Guidelines on Social,
Environmental, and Economic Responsibilities of
Business
&
International Voluntary Codes for Sustainability
Relevance of voluntary codes / Sustainability Certifications

National Voluntary Guidelines on Social, Environmental, and Economic Responsibilities of Business
UN Global Compact | ISO 26000 | Equator Principles | SA8000
Lec 13 & 14
Environmental, and Economic
Responsibilities of Business
• The National Voluntary Guidelines (NVGs) on Social, Environmental and Economic
Responsibilities of Business released by the Ministry of Corporate Affairs (MCA) in July
2011, is essentially a set of nine principles that offer Indian businesses an understanding and
approach to inculcate responsible business conduct.
• However, taking into account the national and international developments in the arena of
sustainable business since 2011, the NVGs have been updated and released as ‘National
Guidelines on Responsible Business Conduct’ (NGRBC) in March 2019 to reveal alignments
with the United Nations Guiding Principles on Business & Human Rights (UNGPs), UN
Sustainable Development Goals (SDGs), Paris Agreement on Climate change etc. The
NGRBC provides a framework for the companies to grow in an inclusive and sustainable
manner while addressing the concerns of stakeholders.
• These guidelines urge businesses to actualize the principles in letter and spirit. These
principles are:
1. Businesses should conduct and govern themselves with integrity in a manner that is Ethical, Transparent
and Accountable
2. Businesses should provide goods and services in a manner that is sustainable and safe
3. Businesses should respect and promote the well-being of all employees, including those in their value
chains
4. Businesses should respect the interests of and be responsive to all their stakeholders
5. Businesses should respect and promote human rights
6. Businesses should respect and make efforts to protect and restore the environment
7. Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent
8. Businesses should promote inclusive growth and equitable development
9. Businesses should engage with and provide value to their consumers in a responsible manner
Principle 1: Businesses should conduct and
govern themselves with Ethics , Transparency
and Accountability
Brief Description: Core Elements
• The principle recognizes that ethical conduct in all 1. Businesses should develop governance structures, procedures and
practices that ensure ethical conduct at all levels; and promote the
its functions and processes is the cornerstone of adoption of this principle across its value chain
responsible business. The principle acknowledges 2. Businesses should communicate transparently and assure access to
that business decisions and actions, including those information about their decisions that impact relevant stakeholders
required to operationalize the principles in these 3. Businesses should not engage in practices that are abusive, corrupt, or
Guidelines should be amenable to disclosure and be anti-competition
visible to relevant stakeholders. The principle 4. Businesses should truthfully discharge their responsibility on financial
emphasizes that businesses should inform all and other mandatory disclosures.
relevant stakeholders of the operating risks and 5. Businesses should report on the status of their adoption of these
address and redress the issues raised. The principle Guidelines as suggested in the reporting framework in this document.
recognizes that the behavior, decision making styles 6. Businesses should avoid complicity with the actions of any third party
and actions of the leadership of the business that violates any of the principles contained in these Guidelines
establishes a culture of integrity and ethics
throughout the enterprise
Principle 2: Businesses should provide goods
and services that are safe and contribute to
sustainability throughout their life cycle
The principle emphasizes that in order to function 1. Businesses should assure safety and optimal resource use over the life-cycle of the
product – from design to disposal – and ensure that everyone connected with it-
effectively and profitably, businesses should work to designers, producers, value chain members, customers and recyclers are aware of
their responsibilities.
improve the quality of life of people.
2. Businesses should raise the consumer's awareness of their rights through education,
The principle recognizes that all stages of the product product labelling, appropriate and helpful marketing communication, full details of
contents and composition and promotion of safe usage and disposal of their
life cycle, right from design to final disposal of the products and services.
goods and services after use, have an impact on society 3. In designing the product, businesses should ensure that the manufacturing processes
and technologies required to produce it are resource efficient and sustainable.
and the environment. Responsible businesses,
therefore, should engineer value in their goods and 4. Businesses should regularly review and improve upon the process of new
technology development, deployment and commercialization, incorporating social,
services by keeping in mind these impacts. ethical, and environmental considerations.
5. Businesses should recognize and respect the rights of people who may be owners of
The principle, while appreciating that businesses are traditional knowledge, and other forms of intellectual property.
increasingly aware of the need to be internally efficient 6. Businesses should recognize that over-consumption results in unsustainable
and responsible, exhorts them to extend their processes exploitation of our planet's resources, and should therefore promote sustainable
consumption, including recycling of resources.
to cover the entire value chain – from sourcing of raw
materials or process inputs to distribution and disposal.
Principle 3: Businesses should promote the
wellbeing of all employees

The principle encompasses all policies and 1. Businesses should respect the right to freedom of association, participation, collective bargaining,
and provide access to appropriate grievance redressal mechanisms.
practices relating to the dignity and wellbeing 2. Businesses should provide and maintain equal opportunities at the time of recruitment as well as
during the course of employment irrespective of caste, creed, gender, race, religion, disability or
of employees engaged within a business or in sexual orientation.
its value chain. 3. Businesses should not use child labour, forced labour or any form of involuntary labour, paid or
unpaid.
The principle extends to all categories of 4. Businesses should take cognizance of the work-life balance of its employees, especially that of
women.
employees engaged in activities contributing 5. Businesses should provide facilities for the wellbeing of its employees including those with special
needs. They should ensure timely payment of fair
to the business, within or outside of its 6. living wages to meet basic needs and economic security of the employees.
boundaries and covers work performed by 7. Businesses should provide a workplace environment that is safe, hygienic humane, and which
individuals, including sub-contracted and upholds the dignity of the employees. Business should
8. communicate this provision to their employees and train them on a regular basis.
home based work. 9. Businesses should ensure continuous skill and competence upgrading of all employees by providing
access to necessary learning opportunities, on an equal and non-discriminatory basis. They should
promote employee morale and career development through enlightened human resource
interventions.
10. Businesses should create systems and practices to ensure a harassment free workplace where
employees feel safe and secure in discharging their responsibilities.
Principle 4: Businesses should respect the
interests of, and be responsive towards all
stakeholders, especially those who are
disadvantaged, vulnerable and marginalised
The principle recognizes that businesses 1. Businesses should systematically identify their stakeholders,
understand their concerns, define purpose and scope of
have a responsibility to think and act engagement, and commit to engaging with them
beyond the interests of its shareholders to 2. Businesses should acknowledge, assume responsibility and be
include all their stakeholders. transparent about the impact of their policies, decisions, product &
services and associated operations on the stakeholders
The Principle, while appreciating that all
3. Businesses should give special attention to stakeholders in areas
stakeholders are not equally influential or that are underdeveloped.
aware, encourages businesses to 4. Businesses should resolve differences with stakeholders in a just,
proactively engage with and respond to fair and equitable manner
those that are disadvantaged, vulnerable
and marginalized.
Principle 5: Businesses should respect and
promote human rights
The principle recognizes that human rights are the codification and 1. Businesses should understand the human rights content of the
agreement of what it means to treat others with dignity and respect. Constitution of India, national laws and policies and the content of
Over the decades, these have evolved under the headings of civil, International Bill of Human Rights. Businesses should appreciate that
political, economic, cultural and social rights. This holistic and human rights are inherent, universal, indivisible and interdependent in
widely agreed nature of human rights offers a practical and nature
legitimate framework for business leaders seeking to manage risks,
seize business opportunities and compete in a responsible fashion. 2. Businesses should integrate respect for human rights in management
The principle imbibes its spirit from the Constitution of India, systems, in particular through assessing and managing human rights
which through its provisions of Fundamental Rights and Directive impacts of operations, and ensuring all individuals impacted by the
Principles of State Policy, enshrines the achievement of human business have access to grievance mechanisms.
rights for all its citizens. In addition, the principle is in consonance 3. Businesses should recognize and respect the human rights of all
with the Universal Declaration of Human Rights, in the formation relevant stakeholders and groups within and beyond the workplace,
of which, India played an active role.
including that of communities, consumers and vulnerable and
The principle takes into account the “Corporate Responsibility to marginalized groups.
Respect Human Rights”, as referred in the United Nations “Protect,
Respect, Remedy” Framework. 4. Businesses should, within their sphere of influence, promote the
awareness and realization of human rights across their value chain.
5. Businesses should not be complicit with human rights abuses by a
third party
Principle 6: Business should respect, protect,
and make efforts to restore the environment
The principle recognizes that environmental responsibility is a 1. Businesses should utilize natural and manmade resources in an optimal and
prerequisite for responsible manner and ensure the sustainability of resources by reducing,
reusing, recycling and managing waste.
sustainable economic growth and for the well being of society. 2. Businesses should take measures to check and prevent pollution. They should
The principle emphasizes that environmental issues are assess the environmental damage and bear the cost of pollution abatement with
due regard to public interest.
interconnected at the local, regional and global levels which makes
it imperative for businesses to address issues such as global 3. Businesses should ensure that benefits arising out of access and
warming, biodiversity conservation and climate change in a commercialization of biological and other natural resources and associated
comprehensive and systematic manner. traditional knowledge are shared equitably.
4. Businesses should continuously seek to improve their environmental
The principle encourages businesses to understand and be performance by adopting cleaner production methods, promoting use of energy
accountable for direct and indirect environmental impacts of their efficient and environment friendly technologies and use of renewable energy
operations, products and services and to strive to make them more 5. Businesses should develop Environment Management Systems (EMS) and
environment friendly. contingency plans and processes that help them in preventing, mitigating and
The Principle urges businesses to follow the precautionary controlling environmental damages and disasters, which may be caused due to
their operations or that of a member of its value chain
principle and not go ahead with a particular action if it is unsure of
its adverse impacts. 6. Businesses should report their environmental performance, including the
assessment of potential environmental risks associated with their operations, to
the stakeholders in a fair and transparent manner.
7. Businesses should proactively persuade and support its value chain to adopt this
principle
Principle 7: Businesses, when engaged in
influencing public and regulatory policy,
should do so in a responsible manner
The principle recognizes that businesses operate within the 1. Businesses, while pursuing policy advocacy, must ensure that their
specified legislative and policy frameworks prescribed by the advocacy positions are consistent with the Principles and Core
Government, which guide their growth and also provide for certain
desirable restrictions and boundaries. Elements contained in these Guidelines.
The principle acknowledges that in a democratic set-up, such legal 2. To the extent possible, businesses should utilize the trade and
frameworks are developed in a collaborative manner with industry chambers and associations and other such collective
participation of all the stakeholders, including businesses.
platforms to undertake such policy advocacy.
The principle, in that context, recognizes the right of businesses to
engage with the Government for redressal of a grievance or for
influencing public policy and public opinion.
The principle emphasizes that policy advocacy must expand public
good rather than diminish it or make it available to a select few.
Principle 8: Businesses should support
inclusive growth and equitable development
The principle recognizes the challenges of social and economic 1. Businesses should understand their impact on social and economic
development faced by India and builds upon the development development, and respond through appropriate action to minimise
agenda that has been articulated in the government policies and
priorities. the negative impacts.
The principle recognizes the value of the energy and enterprise of 2. Businesses should innovate and invest in products, technologies
businesses and encourages them to innovate and contribute to the and processes that promote the wellbeing of society.
overall development of the country, especially to that of the
disadvantaged, vulnerable and marginalised sections of society. 3. Businesses should make efforts to complement and support the
The principle also emphasizes the need for collaboration amongst development priorities at local and national levels, and assure
businesses, government agencies and civil society in furthering this appropriate resettlement and rehabilitation of communities who
development agenda. have been displaced owing to their business operations.
The principle reiterates that business prosperity and inclusive
growth and equitable development are interdependent. 4. Businesses operating in regions that are underdeveloped should be
especially sensitive to local concerns.
Principle 9: Businesses should engage with
and provide value to their customers and
consumers in a responsible manner
This principle is based on the fact that the basic aim of a 1. Businesses, while serving the needs of their customers, should take into account
business entity is to provide goods and services to its the overall well-being of the customers and that of society.
customers in a manner that creates value for both. 2. Businesses should ensure that they do not restrict the freedom of choice and free
competition in any manner while designing, promoting and selling their
The principle acknowledges that no business entity can exist products.
or survive in the absence of its customers.
3. Businesses should disclose all information truthfully and factually, through
The principle recognizes that customers have the freedom of labelling and other means, including the risks to the individual, to society and to
choice in the selection and usage of goods and services, and the planet from the use of the products, so that the customers can exercise their
that the enterprises will strive to make available goods that freedom to consume in a responsible manner. Where required, businesses
are safe, competitively priced, easy to use and safe to should also educate their customers on the safe and responsible usage of their
products and services.
dispose off, for the benefit of their customers.
4. Businesses should promote and advertise their products in ways that do not
The principle also recognizes that businesses have an mislead or confuse the consumers or violate any of the principles in these
obligation to mitigating the long term adverse impacts that Guidelines.
excessive consumption may have on the overall well-being 5. Businesses should exercise due care and caution while providing goods and
of individuals, society and our planet. services that result in over exploitation of natural resources or lead to excessive
conspicuous consumption.
6. Businesses should provide adequate grievance handling mechanisms to address
customer concerns and feedback.
• The Securities and Exchange Board of India (SEBI) through its ‘Listing Regulations’
in 2012 mandated the top 100 listed entities by market capitalisation to file Business
Responsibility Reports (BRRs) from an environmental, social and governance
perspective. These BRRs enabled business to demonstrate the adoption of the NVG
principles and the attendant core elements with the intent of engaging businesses more
meaningfully with their stakeholders going beyond regulatory financial compliance.
This was extended to top 500 companies in FY 2015-16. This, for the first time,
introduced voluntary sustainability reporting among companies in India which is still in
a nascent stage.
• Currently, TOP 1000 Companies by market cap are required to report on the BRSR.
UN Global Compact &
ISO 26000
About UN Global Compact &
ISO26000
• The United Nations Global Compact and the ISO26000. They are usually used in
conjunction with the GRI Standards, thus the links between them and GRI.
• These standards are usually used in conjunction with the GRI Reporting Guidelines,
and publications exist, which help organizations make connections between the
standards and incorporate them in their GRI Sustainability (CSR) Reports.
16
17
About UN Global Compact
• The United Nations Global Compact is a United Nations initiative to encourage

businesses worldwide to adopt sustainable and socially responsible policies, and to
report on their implementation.
• The UN Global Compact is a principle-based framework for businesses, stating ten
principles in the areas of human rights, labor, the environment and anti-corruption.
Under the Global Compact, companies are brought together with UN agencies, labor
groups and civil society.
• The UN Global Compact was announced by the UN Secretary-General Kofi Annan in
an address to the World Economic Forum on January 31, 1999 and was officially
launched at UN Headquarters in New York on July 26, 2000.
18
About UN Global Compact &
ISO26000
• The Global Compact Office is supported by seven UN agencies: the United Nations
Framework Convention on Climate Change; the United Nations High Commissioner for
Human Rights; the United Nations Environment Programme; the International Labor
Organization; the United Nations Development Programme; the United Nations
Industrial Development Organization and the United Nations Office on Drugs and
Crime.
• The UN Global Compact is a founding member of the United Nations Sustainable
Stock Exchanges (SSE) initiative along with the Principles for Responsible Investment
(PRI), the United Nations Environment Programme Finance Initiative (UNEP-FI), and
the United Nations Conference on Trade and Development (UNCTAD).
19
UN Global Compact
• The United Nations Global Compact is a strategic initiative that supports global companies
that are committed to responsible business practices in the areas of human rights, labor, the
environment, and corruption. This UN-led initiative promotes activities that contribute to
sustainable development goals to create a better world.
• The UN Global Compact is based on 10 principles that should define a company’s value
system and approach to doing business. These principles were collectively founded in the
Universal Declaration of Human Rights, the International Labor Organization’s Declaration
on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and
Development, and the UN Convention Against Corruption.
• Member companies are expected to engage in specific business practices that benefit the
people and the planet while pursuing profitability with integrity.
20
UN Global Compact
The 10 principles for businesses, as stated on the UN Global Compact’s website, are the following:
• Principle 1: Support and respect the protection of internationally proclaimed human rights.
• Principle 2: Ensure that business practices are not complicit in human rights abuses.
• Principle 3: Uphold the freedom of association and the effective recognition of the right to collective bargaining.
• Principle 4: Eliminate all forms of forced and compulsory labor.
• Principle 5: Abolish child labor.
• Principle 6: Eliminate discrimination in employment and occupation.
• Principle 7: Adopt a precautionary approach to environmental challenges.
• Principle 8: Conduct environmentally responsible activities.
• Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
• Principle 10: Fight corruption in all its forms including extortion and bribery.
21
Incentives for Businesses to Support
the UN Global Compact
Companies might choose to join the compact because of the importance of corporate
codes of conduct for developing and maintaining positive relationships with customers,
employees, and other stakeholders, and to avoid regulatory and legal problems.
Businesses may support the compact for the greater good but also because operating in
environments associated with poverty and inequality where the rule of law is weak can
harm the company’s reputation and bottom line.
Further, companies that commit to sustainability may have an advantage in accessing

untapped markets, attracting and retaining business partners, developing innovative new
products and services while operating in a lower-risk environment, and encouraging
employee satisfaction and productivity.
22
UN Global Compact &
ISO26000
24
About ISO 26000
• is intended as guidance, not for certification

• Presents a comprehensive documentation of social responsibilities including core subjects and
issues related to those subjects
• Was published in 2010 by the International Organization for Standardization (ISO), a
specialized international agency for standardization composed of the national standards bodies
of more than 160 countries
• Was written by a unique multi-sectoral group representing governments; non-governmental
organizations (NGOs); industry; consumer groups; labor; and academic, consulting, and other
organizations around the world
• More than 400 experts and 200 observers from 99 countries and 42 international organizations
contributed to the development effort
• Last reviewed for possible revision in 2014
25
ISO 26000 standard provides
guidance on:
• Recognizing social responsibility and engaging stakeholders

• Ways to integrate socially responsible behavior into the organization
• The seven key underlying principles of social responsibility:
• Accountability
• Transparency
• Ethical behavior
• Respect for stakeholder interests
• Respect for the rule of law
• Respect for international norms of behavior
• Respect for human rights
• The seven core subjects and issues pertaining to social responsibility:
• Organizational governance
• Human rights
• Labor practices
• The environment
• Fair operating practices
• Consumer issues
• Community involvement and development
26
WHO SHOULD USE ISO 26000?
• Organizations in the private, public, and nonprofit sectors, whether large or small, and
whether operating in developed or developing countries, use ISO 26000. All of the core
subjects of social responsibility are relevant in some way to every organization.
• Since the core subjects cover a number of issues, organizations will benefit when they
identify which issues are most relevant and significant for them through examination of
their own considerations and dialogue with stakeholders.
27
What does ISO 26000 accomplish?
• ISO 26000 aims to:
• Assist organizations in addressing their social responsibilities while respecting cultural, societal, environmental, and
legal differences and economic development conditions
• Provide practical guidance related to making social responsibility operational
• Assist with identifying and engaging with stakeholders and enhancing credibility of reports and claims made about
social responsibility
• Emphasize performance results and improvement
• Increase confidence and satisfaction in organizations among their customers and other stakeholders
• Achieve consistency with existing documents, international treaties and conventions, and existing ISO standards
• Promote common terminology in the social responsibility field
• Broaden awareness of social responsibility
• This standard is not intended to reduce government’s authority to address the social responsibility of organizations.
28
CORE SUBJECTS OF SOCIAL
RESPONSIBILITY
• The ISO 26000 standard defines the core subjects of social responsibility. Core subjects
comprise a number of issues, but it is each organization's responsibility to identify
issues are relevant and significant to their stakeholders and/or need to be addressed.
29
• Decisions are to be made in consideration Core subject: Human rights, • 6.4.3 Employment and employment
of the expectations of society. relationships Coré subject: Environnent,
subclause 6.3
Accountability, transparency, ethics, and • 6.4.4 Conditions of work and social subclause 6.5
stakeholders should be factors in the protection
organization’s decision-making process. • 6.3.3 Due diligence • 6.4.5 Social dialogue
• 6.3.4 Human rights risk situations • 6.5.3 Prevention of pollution
• 6.4.6 Health and safety at work • 6.5.4 Sustainable resource use
• 6.3.5 Avoidance of complicity • 6.4.7 Human development and training in
• 6.3.6 Resolving grievances • 6.5.5 Climate change mitigation and
the workplace adaptation
• 6.3.7 Discrimination and vulnerable groups
• 6.5.6 Protection of the environment,
• 6.3.8 Civil and political rights Core subject: Labor practices, biodiversity, and restoration of natural
Core subject: Organizational • 6.3.9 Economic, social, and cultural rights
governance, subclause 6.2 subclause 6.4 habitats
• 6.3.10 Fundamental principles and rights at work
• 6.6.3 Anti-corruption Core subject: Consumer issues, • 6.8.3 Community involvement

• 6.6.4 Responsible political involvement subclause 6.7 • 6.8.4 Education and culture
• 6.6.5 Fair competition • 6.8.5 Employment creation and skills development
• 6.6.6 Promoting social responsibility in the • 6.7.3 Fair marketing, factual, and unbiased information and fair contractual practices • 6.8.6 Technology development and access
value chain • 6.7.4 Protecting consumers' health and safety • 6.8.7 Wealth and income creation
• 6.6.7 Respect for property rights • 6.7.5 Sustainable consumption • 6.8.8 Health
• 6.7.6 Consumer service, support, and complaint and dispute resolution • 6.8.9 Social investment Core subject: Community
• 6.7.7 Consumer data protection and privacy
involvement and development,
• 6.7.8 Access to essential services subclause 6.8
Core subject: Fair operating • 6.7.9 Education and awareness
practices, subclause 6.6
30
Equator Principles &
SA8000
Equator Principles
• The Equator Principles (EP) are intended to serve as a

common baseline and risk management framework for
financial institutions to identify, assess and manage
environmental and social risks when financing Projects.
Equator Principles
• In 2020, the fourth (and latest) iteration of the Equator

Principles was released.
Equator Principles - Principle 1:
Review and Categorisation
• The first step EPFIs must take is carefully reviewing and putting a proposed project into categories. These categories
are based on the International Finance Corporation’s (IFC) recommendations, and they determine the level of
environmental and social risk of the project. The Equator Principles mention three categories which are:
• Category A: projects with high environmental and social risks

• Category B: projects with limited, often easily addressable risks
• Category C: projects with minimal or no risks
The EPFI takes action based on the nature, scale and stage of the project.
Environmental and Social Assessment
• To help categorise, the client (anyone applying for funding) must assess and declare the environmental and social
risks of the proposed project. The proposal should include a project assessment document that complies with ESIA or
a similar framework. It should suggest solutions that minimise, mitigate, and compensate for the risk to the climate or
human rights due to the project.
Applicable Environmental and Social
Standards
• The EPFI works around the world in a range of diverse markets. Whether the project operates in a designated or a
non-designated country, environmental and social legislation should be considered. The client should address the
country’s laws, regulations and permits in their assessment document.
Environmental and Social Management
System and Equator Principles Action Plan
• Every category A and B project must have an Environmental and Social Management Plan (ESMP). The plan should
contain standard-compliant action points that address the risks mentioned in the assessment. The client can use the
Equator Principles Action Plan (EPAP), which outlines the EPFI’s standards.
• The client should also develop and maintain an Environmental and Social Management System (ESMS) that tracks
and evaluates the risk in a project’s sustainability standards.
Equator Principles - Principle 5: Stakeholder
Engagement
• It is important to continue mitigating any risks for the duration of the project. The EPFI requires the client to show an
ongoing stakeholder engagement process. The process should be structured, culturally sensitive, and involve the local
communities, workers, and other stakeholders.
• Projects that affect more vulnerable indigenous people require active consultation and participation from the affected
communities in their preferred language. The consultation should follow the local and global legislation, the IFC’s
Performance Standards, and it should remain free of manipulation, interference, coercion, and intimidation.
Equator Principles - Principle 6: Grievance
Mechanism
• The established ESMS should also make provisions for grievances. The mechanism must be scalable to receive and
resolve any concerns that arise as the project progresses. Again, any concerns should be resolved through a
transparent and sensitive consultation.
Independent Review
• An independent environmental and social consultant should then review the compliance of the assessment document
with the Equator Principles. The independent review should evaluate the ESMPs, the ESMS, and the stakeholder
engagement process and propose changes where needed.
Equator Principles - Principle 8: Covenants
• The Equator Principles are only effective if they are enforced. When the client’s proposal fails to comply with the
covenants of the Equator Principles, the EPFI needs to propose remedial actions within a grace period. If the client
still fails to comply, the EPFI reserves the right to take action.
Independent Monitoring and Reporting
• Compliance is never a one-time deal. The project should continue to comply with the sustainability standards for the
loan duration. The client should retain an independent environmental and social consultant to generate objective and
regular reports. The EPFI then verifies these reports through established processes.
Equator Principles - Principle 10: Reporting
and Transparency
• The Equator Principles require that both the clients and the EPFI remain accountable for the impact of the projects
undertaken. For the client, it includes project-specific sustainability reports. On the other side, the EPFI must publicly
report completed transactions (without violating confidentiality agreements).
SA8000
SA8000
• The SA8000 Standard is an auditable certification standard that encourages

organizations to develop, maintain, and apply socially acceptable practices in the
workplace.
• It was developed in 1989 by Social Accountability International, formerly the Council
on Economic Priorities, by an advisory board consisting of trade unions, NGOs, civil
society organizations and companies.
• The SA8000's criteria were developed from various industry and corporate codes to
create a common standard for social welfare compliance.
• The current (2014) version of the standard is built on earlier 2001, 2004 and 2008
versions.
SA8000
• SA8000 certification is a management systems standard, modeled on ISO standards. The

criteria require that facilities seeking to gain and maintain certification must go beyond simple
compliance to the standard.
• Prospective facilities must integrate it into their management practices and demonstrate
ongoing compliance with the standard. SA8000 is based on the principles of international
human rights norms as described in International Labour Organization conventions, the
United Nations Convention on the Rights of the Child and the Universal Declaration of
Human Rights.
• It measures the performance of companies in eight areas important to social accountability in
the workplace: child labour, forced labour, health and safety, free association and collective
bargaining, discrimination, disciplinary practices, working hours and compensation.
SA8000
• Child Labor: No use or support of child labor; policies and written procedures for remediation of children found to be
working in situation; provide adequate financial and other support to enable such children to attend school; and
employment of young workers conditional.
• Forced and Compulsory Labor: No use or support for forced or compulsory labor; no required 'deposits' - financial or
otherwise; no withholding salary, benefits, property or documents to force personnel to continue work; personnel right to
leave premises after workday; personnel free to terminate their employment; and no use nor support for human trafficking.
• Health and Safety: Provide a safe and healthy workplace; prevent potential occupational accidents; appoint senior manager
to ensure OSH; instruction on OSH for all personnel; system to detect, avoid, respond to risks; record all accidents; provide
personal protection equipment and medical attention in event of work-related injury; remove, reduce risks to new and
expectant mothers; hygiene- toilet, potable water, sanitary food storage; decent dormitories- clean, safe, meet basic needs;
and worker right to remove from imminent danger.
• Freedom of Association and Right to Collective Bargaining: Respect the right to form and join trade unions and bargain
collectively. All personnel are free to: organize trade unions of their choice; and bargain collectively with their employer.
A company shall: respect right to organize unions & bargain collectively; not interfere in workers’ organizations or
collective bargaining; inform personnel of these rights & freedom from retaliation; where law restricts rights, allow
workers freely elect representatives; ensure no discrimination against personnel engaged in worker organizations; and
ensure representatives access to workers at the workplace.
SA8000
• Discrimination: No discrimination based on race, national or social origin, caste, birth, religion, disability,
gender, sexual orientation, union membership, political opinions and age. No discrimination in hiring,
remuneration, access to training, promotion, termination, and retirement. No interference with exercise of
personnel tenets or practices; prohibition of threatening, abusive, exploitative, coercive behavior at workplace
or company facilities; no pregnancy or virginity tests under any circumstances.
• Disciplinary Practices: Treat all personnel with dignity and respect; zero tolerance of corporal punishment,
mental or physical abuse of personnel; no harsh or inhumane treatment.
• Working Hours: Compliance with laws & industry standards; normal workweek, not including overtime, shall
not exceed 48 hours; 1 day off following every 6 consecutive work days, with some exceptions; overtime is
voluntary, not regular, not more than 12 hours per week; required overtime only if negotiated in CBA.
• Remuneration: Respect right of personnel to living wage; all workers paid at least legal minimum wage; wages
sufficient to meet basic needs & provide discretionary income; deductions not for disciplinary purposes, with
some exceptions; wages and benefits clearly communicated to workers; paid in convenient manner – cash or
check form; overtime paid at premium rate; prohibited use of labor-only contracting, short-term contracts, false
apprenticeship schemes to avoid legal obligations to personnel.
SA8000
• Certification is granted by independent certification bodies that are accredited and

overseen by Social Accountability Accreditation Services (SAAS).
• There are 23 accredited certifications bodies worldwide. Statistics are reported quarterly
and posted on the SAAS website.
Sustainability Reporting
Frameworks
Global Reporting Initiative (GRI)
• GRI Guidelines for Reporting
• GRI: Non-profit organization, Amsterdam based.
• GRI: a multi-stakeholder network of thousands based globally.
• They use and contribute to developing the Reporting Framework
both formally and informally.
• Promote change towards a sustainable economy by helping
organizations to set goals, measure performance and manage change.
• GRI Vision: “A sustainable global economy where organizations
manage their economic, environmental, social and governance
performance and impacts responsibly and report transparently.”
• GRI Mission: “To make sustainability reporting standard practice by
providing guidance and support to organizations”.
2
GRI Standard Structure
• GRI Standards are structured in a set of
interrelated modules, that can be referenced and
used together. There are three core modules,
known as GRI’s 100 series. This GRI 100 series are
universal standards that apply to every
organization preparing a sustainability report, and
are as follows:
• GRI Standards 101: Foundation

• GRI Standards 102: General Disclosures
• GRI Standards 103: Management Approach
On referencing these universal GRI Standards, an

organization then look at the topic-specific GRI
Standards, to report on what is known as material
topics. A material topic is a topic that reflects a
reporting organization’s significant economic,
environmental and social impacts; or that
substantively influences the assessments and
decisions of stakeholders – GRI 101: Foundation
2016, Key Terms.
These topic-specific Standards are organized into
three series: 200 (Economic topics), 300 3
(Environmental topics) and 400 (Social topics).
Structure
The GRI STANDARDS provide a set of principles which an organization should follow throughout the reporting process in order to
have the best possible outcome. These principles relate to the content of the report and to the quality of the information included in
the report.
Content Quality
Reliability Balance
Stakeholder
Completeness Inclusiveness
Clarity Timeliness
Sustainability
Materiality Context
5
GRI Reporting Principles: Content
• Stakeholder Inclusiveness: The organization
should identify its stakeholders and explain
how it has responded to their reasonable
expectations and interests.
• Sustainability Context: The report should Stakeholder
Completeness
present the organization’s performance in the Inclusiveness
wider context of sustainability.
• Materiality: The report should cover Aspects
that reflect the organization’s significant
economic, environmental and social impacts;
or substantively influence the assessments and Sustainability
Materiality
decisions of stakeholders. Context
• Completeness: The report should include
coverage of material Aspects and their
Boundaries, sufficient to reflect significant
economic, environmental and social impacts,
and to enable stakeholders to assess the
organization’s performance in the reporting
period. 6
GRI Reporting
Principles: Quality
Balance: the report should reflect positive Reliability Balance
and negative aspects of the organization’s
performance to enable a reasoned assessment
of overall performance.
Timeliness: the organization should report on
a regular schedule so that information is
available in time for stakeholders to make Clarity Timeliness
informed decisions.
Accuracy: the reported information should be
sufficiently accurate and detailed for
stakeholders to assess the organization’s
performance.
Comparability: the organization should
select, compile and report information
consistently. The reported information
should be presented in a manner that enables
stakeholders to analyze changes in the
organization’s performance over time, and
that could support analysis relative to other
organizations. 7
GRI Reporting
Principles: Quality
Clarity: the organization should
make information available in a Reliability Balance
manner that is understandable and
accessible to stakeholders using the
report.
Reliability: the organization should Clarity Timeliness
gather, record, compile, analyze and

disclose information and processes
used in the preparation of a report in
a way that can be subject to Comparability Accuracy
examination and that establishes the

quality and materiality of the
information 8
GRI
SAASB
SASB
TCFD
Triple Bottomline
Triple Bottomline

Corporate Sustainability AY 2022-23: Nmims

Uploaded by

Document Informationclick to expand document information

Document Informationclick to expand document information

Copyright:

Available Formats

Corporate Sustainability AY 2022-23: Nmims

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Corporate Sustainability AY 2022-23: Nmims

Uploaded by

Copyright:

Available Formats

Corporate Sustainability

Group Number Company Sustainability / ESG Report (H Division)

Upload before the completion of the 17th Session

Group Number Company Sustainability / ESG Report ( J Division)

Upload before the completion of the 17th Session

• Corporate transition towards sustainability

• Operationalize corporate sustainability

Adani to scrap its massive port development in Myanmar

The U.S. Department of Justice (DOJ) has chastised Deutsche

Sustainable Development is also a development that:

• There are a variety of reasons why companies choose to produce these

• Going green is becoming a profitable business strategy seeing the

• According to a report by Nielsen, 66% of global consumers say they’re

Vj gtg"ctg"dcukecnn{ "vy q"v{ r gu"qh"i tggpy cuj kpi <

• GRI Guidelines for Reporting

• GRI Standards 101: Foundation

On referencing these universal GRI Standards, an

Clarity: the organization should make

information and processes used in the

• Modern definition of corporate social responsibility (CSR) is a self-regulating business

(iii) Health: Promotion of healthy practices, activities related to enhancing health in

(xi) Rural development: Projects related to rural development

(xii) Slum Development: Slum area development in urban areas

• Q: Which companies fall in the ambit of • Q: What is meaning of ‘any financial

• Q: From which Financial Year the • Q: Is the amount spent on salaries of

• Q: Whether CSR expenditure of a • Q: Is there any tax benefits that can be

• Q: Which activities would not qualify as CSR Expenditure?

• Q: Can donation of money to a trust by a company be treated as CSR expenditure of the

• Q: Whether expenditure incurred on disaster relief qualifies for CSR or not?

• Q: Treatment of surplus arising out of CSR activities(CSR Rule)

• Q: CSR Reporting(CSR Rule)

• Q: Impact Assessment(CSR Rule)

Create Win-Win Situation

CSR Focus: Right thing for Universal Rights- Framework based on

Businesses to follow principle of

Source: Committee for Economic Development (CED).

Source: Schwartz, M. S., & Carroll, A. B. (2003).

Ethical Model- Gandhian Statist Model

WORKPLACE COMMUNITY ENVIRONMENT MARKETPLACE

WORKPLACE COMMUNITY ENVIRONMENT MARKETPLACE

WORKPLACE COMMUNITY ENVIRONMENT MARKETPLACE

WORKPLACE COMMUNITY ENVIRONMENT MARKETPLACE

WORKPLACE COMMUNITY ENVIRONMENT MARKETPLACE

Reducing the Negative Effects: Steps taken by a

2 Petrol Pumps -Promoting accident awareness, pedestrian safety

4 Private Hospitals -Creating a Patients’ Information Centre & Library

7 Hotels and Restaurants -Donating excess food responsibly

A feel for people

Caring and sharing

Principal CSR activity done in :- healthcare, disaster, general donations

• Sustainable Development is also a development that:

Owners High High Low High

9/4/20XX Presentation Title 12

It is a scorecard that describes It is a tool that defines how will

How will the results be The actions that needs to be

Relevance of voluntary codes / Sustainability Certifications

Brief Description: Core Elements