Industry Empowered to decide on their CSR

CII, in partnership with the National Foundation for Corporate Governance (NFCG), organized a
National Summit on CSR, Embedding CSR into Business Strategy on 30 September in Delhi. Held
against the backdrop of the inclusion of Clause 135 in the recently passed Companies Bill 2012,
which makes CSR a core function within industry and emphasizes the role of the corporate sector
beyond profit, this summit enabled varied stakeholders to come together to discuss and deliberate on
critical issues.
In his inaugural address, Mr Sachin Pilot, Minister for Corporate Affairs, Government of India said that
this new policy would see both the community and organizations benefit. Mr Pilot emphasized that the
Government was keen to adopt a very flexible approach. Industry would be free to choose
programmes and strategies best aligned to their corporate philosophy and businesses. He assured
industry that the Government would not apply any rules with retrospective effect. He also promised
industry to take up a request that the CSR spend be given a tax break with the Finance ministry.
In a special address, Mr M J Joseph, Additional Secretary, Ministry of Corporate Affairs, Government
of India, said that when it came to embedding CSR into business strategy, the execution and
mainstreaming of strategy was of paramount importance. He also urged industry members to give any
suggestions on the subject to the Government. Mr. Rakesh Bharti Mittal, Chairman, CII National
Council on Development Initiatives in his address, reiterated the countrys development challenges:
poverty, low levels of literacy, limited access to basic services like water, health, sanitation etc., low wages
and income insecurity in the unorganized sectors and stressed on the imperative for inclusive growth in the
context of India's long-term growth prospects. While thanking the Government for the flexibility accorded to
corporates to decide on CSR programmes and strategies, he also requested that the provision that
mandates the three-year track record required for an NGO or Foundation to receive funding be relaxed in
the event that a Foundation belongs to a reputed industry organization. Mr Chandrajit Banerjee, Director
General, CII said that this CSR Summit will truly prove to be a pivot for government and industry in
meeting our joint objectives of economic growth and
development.


The summit saw excellent participation from all stakeholders. Experts in their field, shared
experiences and insights on how to arrive at a new path for structured engagement with stakeholders,
with a multifaceted approach spread across intersecting economic, social, and environmental
dimensions. The challenges posed in this pursuit have implications for virtually every aspect of a
firms strategy and business model. Arriving at a holistic view on how the new legislation will assist
corporates in arriving at a structured CSR engagement as also lead to new paradigms for equitable
and sustainable development at the national level. In monetary terms, it is estimated that the new
provision will lead to anything from 19,000 to around Rs 25,000 crores annually. This money could
make a significant difference if the proper delivery systems are put in place to translate them into
meaningful programmes to reach out the communities.
This summit focused renewed attention on the need to start building capacities, not only of the CSR
practitioners but also of Civil Society Organizations / Non Government Organizations etc that will
enable structured engagement of the industry with the communities in further stimulating the
developmental process in India. It will also encourage organizations to take a look at their CSR
programmes and assess their impact to ensure equitable and sustainable national growth in the long
term.