bussiness law assignment

7/25/2019 Bussiness Law Assignment

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Name :- Panchal Nitin Gopal

Class :- F.Y.Bms

Division :- A

Roll No. :- 24

Su!ect :- Bussiness la"

Sumite# to$

P%o&. '(oti


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-: )n#e* :-

S%. No. +opic Pa,e No. hat is CSR /

2 Companies "ho actuall( &ollo"in,

CSR

0 1o#e%n outloo to"a%#s CSR

41en#ato%( p%ovision un#e%

companies Act - 230

1(th o& CSR


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5 hat is CSR /

Co%po%ate social %esponsiilit( 6CSR$ also calle# co%po%ate conscience$ co%po%ate

citi7enship o% %esponsile usiness5 is a &o%m o& co%po%ate sel&-%e,ulation inte,%ate# into

a usiness mo#el. CSR polic( &unctions as a sel&-%e,ulato%( mechanism "he%e( a usiness

monito%s an# ensu%es its active compliance "ith the spi%it o& the la"$ ethical stan#a%#s an#

national o% inte%national no%ms. ith some mo#els$ a &i%m8s implementation o& CSR ,oes

e(on# compliance an# en,a,es in 9actions that appea% to &u%the% some social ,oo#$ e(on#

the inte%ests o& the &i%m an# that "hich is %eui%e# ( la".9CSR aims to em%ace

%esponsiilit( &o% co%po%ate actions an# to encou%a,e a positive impact on the envi%onment

an# staehol#e%s inclu#in, consume%s$ emplo(ees$ investo%s$ communities$ an# othe%s.

+he te%m 9co%po%ate social %esponsiilit(9 ecame popula% in the ;


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an# mo%al o% ethical p%olems that can a%ise in a usiness envi%onment. )S= 2nite# Nations

&o% e*ample5 a#he%e to the t%iple ottom line 6+B?5. )t is "i#el( accepte# that CSR a#he%es to

simila% p%inciples$ ut "ith no &o%mal act o& le,islation.

Business #ictiona%( #e&ines CSR as 9A compan(@s sense o& %esponsiilit( to"a%#s the

communit( an# envi%onment 6oth ecolo,ical an# social5 in "hich it ope%ates. Companies

e*p%ess this citi7enship

65 th%ou,h thei% "aste an# pollution %e#uction p%ocesses$

625 ( cont%iutin, e#ucational an# social p%o,%ams an#$

605 ( ea%nin, a#euate %etu%ns on the emplo(e# %esou%ces.9

A %oa#e% #e&inition e*pan#s &%om a &ocus on staehol#e%s to

inclu#e philanth%op( an# voluntee%in,.

+he Fou% Phases o& CSR Development in )n#ia

+he histo%( o& CSR in )n#ia has its &ou% phases "hich %un pa%allel to )n#ia8s histo%ical

#evelopment an# has %esulte# in #i&&e%ent app%oaches to"a%#s CSR. o"eve% the phases a%e

not static an# the &eatu%es o& each phase ma( ove%lap othe% phases.

1. +he Fi%st Phase

)n the &i%st phase cha%it(an#philanth%op("e%e the main #%ive%s o& CSR. Cultu%e$

%eli,ion$ &amil( values an# t%a#ition an# in#ust%iali7ationha# an in&luential e&&ect on

CSR. )n the p%e-in#ust%iali7ation pe%io#$ "hich laste# till 3$ "ealth( me%chants

sha%e# a pa%t o& thei% "ealth "ith the "i#e% societ( ( "a( o& settin, up temples &o% a

%eli,ious cause. 1o%eove%$ these me%chants helpe# the societ( in ,ettin, ove% phases

o& &amine an# epi#emics ( p%ovi#in, &oo# &%om thei% ,o#o"ns an# mone( an# thus

secu%in, an inte,%al position in the societ(.ith the a%%ival o& colonial %ule in )n#ia&%om the 3s on"a%#s$ the app%oach to"a%#s CSR chan,e#. +he in#ust%ial &amilies


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o& the ;th centu%( such as +ata$ Go#%e!$ Ba!a!$ 1o#i$ Bi%la$ Sin,hania "e%e st%on,l(

incline# to"a%#s economic as "ell as social consi#e%ations. o"eve% it has een

ose%ve# that thei% e&&o%ts to"a%#s social as "ell as in#ust%ial #evelopment "e%e not

onl( #%iven ( sel&less an# %eli,ious motives ut also in&luence# ( caste ,%oups an#

political o!ectives =% stu#ies.

2. +he Secon# Phase

)n the secon# phase$ #u%in, the in#epen#ence movement$ the%e "as inc%ease# st%ess on )n#ian

)n#ust%ialists to #emonst%ate thei% #e#ication to"a%#s the p%o,%ess o& the societ(. +his "as

"hen 1ahatma Gan#hiint%o#uce# the notion o& 9t%usteeship9$ acco%#in, to "hich the

in#ust%( lea#e%s ha# to mana,e thei% "ealth so as to ene&it the common man. 9) #esi%e to en#

capitalism almost$ i& not uite$ as much as the most a#vance# socialist. But ou% metho#s

#i&&e%. 1( theo%( o& t%usteeship is no mae-shi&t$ ce%tainl( no camou&la,e. ) am con&i#ent that

it "ill su%vive all othe% theo%ies.9 +his "as Gan#hi8s "o%#s "hich hi,hli,hts his a%,ument

to"a%#s his concept o& 9t%usteeship9. Gan#hi8s in&luence put p%essu%e on va%ious )n#ust%ialists

to act to"a%#s uil#in, the nation an# its socio-economic #evelopment. Acco%#in, to Gan#hi$

)n#ian companies "e%e suppose# to e the 9temples o& mo#e%n )n#ia9. >n#e% his in&luence

usinesses estalishe# t%usts &o% schools an# colle,es an# also helpe# in settin, up t%ainin,

an# scienti&ic institutions. +he ope%ations o& the t%usts "e%e la%,el( in line "ith Gan#hi8s

%e&o%ms "hich sou,ht to aolish untouchailit($ encou%a,e empo"e%ment o& "omen an# %u%al

#evelopment.

0. +he +hi%# Phase

+he thi%# phase o& CSR 6;n#e%tain,s6PS>s5 an# la"s %elatin, laou% an# envi%onmental

stan#a%#s. Du%in, this pe%io# the p%ivate secto% "as &o%ce# to tae a acseat. +he pulic

secto% "as seen as the p%ime move% o& #evelopment. Because o& the st%in,ent le,al %ules an#

%e,ulations su%%oun#in, the activities o& the p%ivate secto%$ the pe%io# "as #esc%ie# as an 9e%a

o& comman# an# cont%ol9. +he polic( o& in#ust%ial licensin,$ hi,h ta*es an# %est%ictions on

the p%ivate secto% le# to co%po%ate malp%actices. +his le# to enactment o& le,islation %e,a%#in,

co%po%ate ,ove%nance$ laou% an# envi%onmental issues. PS>s "e%e set up ( the state to

ensu%e suitale #ist%iution o& %esou%ces 6"ealth$ &oo# etc.5 to the nee#(. o"eve% the pulic


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secto% "as e&&ective onl( to a ce%tain limite# e*tent. +his le# to shi&t o& e*pectation &%om the

pulic to the p%ivate secto% an# thei% active involvement in the socio-economic #evelopment

o& the count%( ecame asolutel( necessa%(. )n ;


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+heevolution o& co%po%ate social %esponsiilit( in )n#ia%e&e%s to chan,es ove% time in )n#ia

o& the cultu%al no%ms o& co%po%ations en,a,ement o& co%po%ate social %esponsiilit( 6CSR5$

"ith CSR %e&e%%in, to "a( that usinesses a%e mana,e# to %in, aout an ove%all positive

impact on the communities$ cultu%es$ societies an# envi%onments in "hich the( ope%ate. +he

&un#amentals o& CSR %est on the &act that not onl( pulic polic( ut even co%po%ates shoul#

e %esponsile enou,h to a##%ess social issues. +hus companies shoul# #eal "ith the

challen,es an# issues looe# a&te% to a ce%tain e*tent ( the states.

Amon, othe% count%ies )n#ia has one o& the ol#est t%a#itions o& CSR. But CSR p%actices a%e

%e,ula%l( not p%actice# o% #one onl( in namesae speciall( ( 1NCs "ith no cultu%al an#

emotional attachments to )n#ia. 1uch has een #one in %ecent (ea%s to mae

)n#ian nt%ep%eneu%s a"a%e o& social %esponsiilit( as an impo%tant se,ment o& thei% usiness

activit( ut CSR in )n#ia has (et to %eceive "i#esp%ea# %eco,nition. )& this ,oal has to e

%ealise# then the CSR app%oach o& co%po%ates has to e in line "ith thei% attitu#es to"a%#s

mainst%eam usiness- companies settin, clea% o!ectives$ un#e%tain, potential investments$

measu%in, an# %epo%tin, pe%&o%mance pulicl(.


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25 Compan( "ho actuall( &ollo"in, CSR

Fo% )n#ia the nee# to chan,e &%om usiness st%ate,ies to EResponsile usiness st%ate,ies is

u%,ent i& it is to tacle issues such as health$ nut%ition$ e#ucation$ "ate% sca%cit( an# climate

chan,e$ pa%ticula%l( "ith its population o& ove% .2 illion people.

234 sa" the Companies Act "ith the man#ato%( CSR p%ovision come into e&&ect 6see

CSR"i%e : +he Bi%th o& a Ne" cos(stem: )n#ia8s 1an#ato%( CSR Rule Becomes a Realit(5.

+he Act maes it man#ato%( &o% companies meetin, ce%tain th%eshol#s to spen# 2 o& its net

p%o&its in CSR.

+his has le# to man( #iscussions on ho" these p%ovisions an# the ne"l( noti&ie# %ules impact

co%po%ate )n#ia. conomic +imes$ Futu%escape an# ))1 >#aipu% &elt it "as an oppo%tune time

to stu#( "hat )n#ian Companies have een #oin, as pa%t o& CSR an# the implications &o%

them ,oin, &o%"a%# on the path to social %esponsiilit(. +he stu#( - )n#ia@s +op Companies

&o% CSR 234 6""".%esponsile&utu%e.in5 sco%e# companies ase# on &ou% p%incipal c%ite%ia:

- o" "ell is the ,ove%nance &o% CSR st%uctu%e#/

- o" &o%thcomin, a%e companies "ith %espect to CSR activities an# pe%&o%mance

- o" "ell a%e e( staehol#e%s 6emplo(ees$ communit($ custome%s an# supplie%s5 inte,%ate#

"ithin a compan(@s CSR &%ame"o%/

- o" pe%vasive a%e sustainailit( p%actices o& companies/

+op Sta%s

=u% stu#( loos at un#e%stan#in, ho" companies a%e st%ate,icall( investin, in a multi

staehol#e% app%oach to %euil# usinesses that can "ithstan# the challen,es o& the 2st

centu%(.
http://www.responsiblefuture.in/http://www.responsiblefuture.in/


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Basis ou% e*tensive anal(sis "e &in# that the top sco%in, Companies in CSR a%e +ata Steel$

+ata Chemicals$ 1ahin#%a H 1ahin#%a$ 1a%uti Su7ui an# +ata 1oto%s. +he same set o&

companies a%e top in oth the 1anu&actu%in, cate,o%( as "ell as P%ivate cate,o%(.

Ran Compan(

+ata Steel ?t#

2 +ata Chemicals ?t#.

0 1ahin#%a H 1ahin#%a ?t#

4 1a%uti Su7ui

+ata 1oto%s ?t#

+op Pulic companies

e have also sho%tliste# the top Pulic secto% companies$ "hich a%e


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Ran Compan(

SA)?

2 GA)? )n#ia

0 N+PC

4 )n#ian =il Co%po%ation

=NGC

+he top Se%vice secto% companies a%e

Ran Compan(

)n&os(s


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Ran Compan(

2 ip%o

0 Bha%ti Ai%tel ?t#

4 C? +echnolo,ies

+ata Consltanc(

hile the ove%all %ans tal o& a comp%ehensive app%oach to"a%#s CSR - "e also nee# to

un#e%stan# ho" the e( pa%amete%s o& ,ove%nance$ #isclosu%e$ staehol#e% en,a,ement an#

sustainailit( stac up.


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Gove%nanc

e

Disclosu%

e

Staehol#e%

s

Sustainailit

(

=ve%al

l

Ave%a,e

sco%e &o%

all

companies

;.; 0.; .< I. 0;.;

+op companies uni&o%ml( sco%e "ell aove ave%a,e sco%es. +his in#icates that the( #o "ell

not !ust on one o% t"o pa%amete%s ut pe%&o%m consistentl( "ell on all pa%amete%s.

Some Je( Fin#in,s a%e:

- +ata Steel ?t# tops CSR %anin,. SA)? lea#s the pac in pulic companies an# )n&os(s in

se%vice companies. +he Dive%si&ie# in#ust%( is the top pe%&o%me%.

- 1anu&actu%in, companies &a%e ma%,inall( ette% than Se%vice companies. Pulic companies

a%e ette% than p%ivate companies.

- Companies a%e %easonal( st%on, on ,ove%nance$ "ea in #isclosu%e$ "ea on staehol#e%

ase# CSR an#$ su%p%isin,l($ "ea on sustainailit(.

- )+ companies a%e %elativel( st%on, in ,ove%nance an# #isclosu%e. Dive%si&ie# companies a%e

st%on, in staehol#e% ase# CSR an# sustainailit(. Automoile companies an# telecomcompanies a%e st%on, on sustainailit(. Disclosu%e p%actices a%e "ea ac%oss all in#ust%ies.

- +he Companies Act 230 6an# its %ules5 p%esc%ie 3 a%eas in "hich companies "ill e

%eui%e# to invest. Cu%%entl( companies &ocus least on a%me# &o%ces vete%ansK"a% "i#o"sL

p%otect national he%ita,eL suppo%t a%tists$ spo%tsmen an# musicians$ e%a#icatin, hun,e% an#

pove%t($ an# initiatives &o% senio% citi7ens.


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- P%esentl( onl( 3 co%po%ate a%e compl(in, "ith these no%ms "ith a spen#in, o& 2 o% mo%e.

1ost co%po%ates a%e not meetin, "ith the p%opose# 2 CSR no%m the ave%a,e CSR spen#

as a pe%centa,e o& PA+ &o% I4 companies is .32.

:) 1o#e%n outloo to"a%#s CSR

me%,ence o& 1o#e%n Mie" o& CSR: Ru%al an# Social Development )n#ia@s socialist

app%oach to economic polic( until the ;;3 %eui%e# )n#ian usinesses to ,o e(on#

philanth%opic app%oaches an# cont%iute si,ni&icantl( to societ(. +he polic( mae%s an#

societ( at la%,e e*pecte# companies to pla( i,,e% %ole "ithin the la%,e% communit(. But #ue

to lac o& a#euate un#e%stan#in,$ &o%esi,ht an# st%ate,( most o& the co%po%ate initiatives

tu%ne# into eithe% conventional o% pate%nalistic p%o,%ams. 1ost o& thei% initiatives have een

6)5communit( "el&a%e$ 6ii5 pove%t( e%a#ication K %u%al #evelopment$ 6iii5 e#ucation$ 6iv5 health

ca%e$ 6v5 vocational t%ainin,$ 6vi5 "omen empo"e%ment$ 6vii5 envi%onment$ 6viii5 #isaste%

%elie&$ 6i*5 ene%,( conse%vation etc. )n 'une 233$ a su%ve( "as ca%%ie# out ( +NS )n#ia 6a%esea%ch o%,ani7ation5 an# the +imes Foun#ation "ith the aim o& un#e%stan#in, o& the %ole o&

co%po%ations in CSR. +he %esults %eveale# that most o& CSR ventu%es "e%e #one as inte%nal

p%o!ects "hile a small p%opo%tion "as as #i%ect &inancial suppo%t to volunta%( o%,ani7ations o%

communities. 1ostl($ CSR ha# een vie"e# as a p%ocess ( "hich the usiness coul#

mana,e its %elationships "ith va%iet( o& in&luential staehol#e%s "ho coul# have a %eal

in&luence on its license to ope%ate an# hence usiness inte%est "as the inhe%ent motive.

Conseuentl( co%po%ations ha# little o% no inte%est in %epo%tin, #evelopment p%o!ects. AJP1G 62335 stu#( amon, 2I )n#ian companies sho"e# that a me%e mentione# thei%

social e*pen#itu%es in thei% annual %epo%ts an# onl( 2 &ile# CSR %epo%ts. 1an( o& those

companies a%e si,nato%ies o& the Gloal Repo%tin, )nitiative$ a movement sta%te# ( an NG=

calle# Coalition &o% nvi%onmentall( Responsile conomies 6CRS5 an# the >N

nvi%onment P%o,%am. CSR as a volunta%( initiative ma( lose its essence i& co%po%ations

cannot come out o& thei% mental loc@ an# app%op%iatel( #isclose thei% #evelopmental

initiatives. ven a&te% ein, the si,nato%ies o& la%,e% ,loal &o%um$ the( ha# een %eluctant to

e t%anspa%ent an# accountale. Such a min# set an# attitu#e has &u%the% "i#ene# the ,ap


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et"een co%po%ations an# NG=s K civil societ(. 1o%eove%$ in man( instances the %epo%te#

cases have een %e&e%%e# as ,loss( %epo%ts@ "ith un!usti&ie# claims ( co%po%ate 6CSR$ Govt.

o& >J$ 23345. +he scena%io maes it ve%( clea% that still co%po%ations coul# not a#euatel(

come out o& thei% a,e ol# cha%it( min# set 6Jotle% an# ?ee$ 2335. ence$ #espite seve%al

e&&o%ts co%po%ations coul# not %eali7e thei% #evelopmental o!ectives. )t has een %eveale#

&%om the aove #iscussion that the%e is no #ea%th o& CSR initiatives ut un&o%tunatel( most o&

those initiatives &aile# to t%ans&o%m thei% p%o!ects in to sustainale p%o,%ams. +he%e mi,ht e

#i&&e%ent %easons %esponsile &o% such &ailu%es. Acco%#in, to a %epo%t ( F)CC) an#

accountin, &i%m %nst an# Youn,$ I pe% cent o& )n#ian companies &oun# it u%,ent to a##%ess

thei% %esponsiilities to societ( an# the envi%onment$ (et onl( pe% cent ha# "ell-#e&ine#

policies. 0 Social %esponsiilit( %emains a top-#o"n a&&ai% in )n#ia. Nea%l(


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volunta%( o% shoul# ecome compulso%(/ 6))5 Shoul# it e mi*e# "ith usiness o% e

in#epen#ent to usiness/ Ce%tain a%,uments a,ainst CSR a%e the%e an# in a #emoc%ac( the%e

is no ha%m in #eatin, on such issues. Fo% the pu%pose o& &u%the%in, aca#emic an# %esea%ch

inte%ests$ the &ollo"in, a%,uments ma( e e*plo%e# an# stu#ie#. Businesses a%e o"ne# (

thei% sha%ehol#e%s. 1one( spent on CSR ( mana,e%s is a the&t o& the %i,ht&ul p%ope%t( o& the

o"ne%s. +he lea#in, companies "ho %epo%t on thei% social %esponsiilit( a%e aset cases

the most e&&ective usiness lea#e%s #on@t "aste time "ith this stu&&. +he compan( is too us(

su%vivin, ha%# times to #o this. )t can@t a&&o%# to tae its e(e o&& the all it has to &ocus on

co%e usiness. )t@s the %esponsiilit( o& the ,ove%nment an# politicians to #eal "ith all this

stu&&. )t@s not the %ole o& usiness to ,et into it. *ecutives can@t spa%e thei% time &o% thisL the(

have to concent%ate on %evenue ea%nin,. 4 +he eme%,in, t%en#s in#icate that usinesses have

to #evelop a clea% lin et"een usiness values an# cultu%eL a st%on, lea#e%ship &%om the topL

an# a s(stem o& e&&ective en,a,ement o& staehol#e%s. +hus$ the nee# o& the hou% is to e*plo%e

ho" ette% "e can c%eate a s(ne%,( an# inte,%ate# e&&o%t to"a%#s a##%essin, &utu%istic social$

usiness$ ene%,( an# envi%onmental issues an# challen,es. +he )n#ian co%po%ate secto% spen#s

mo%e than >S O 23 illion$ up &%om >S O SO 22 million eve%( (ea%. +ata Steel ?t#

spen#s a%oun# >S O 02 million as pa%t o& its annual %evenue e*pen#itu%e. ?ooin, into the

volume o& thei% CSR spen#in, an# its &utu%e scope$ it is e*pecte# that the sustainale

#evelopment secto% nee#s to e a##%esse# ve%( p%o&essionall($ "he%e the staehol#e%s o&

usiness "ill have enou,h space &o% pa%ticipation an# involvement. +he ne" Companies Bill

has man#ate# that o%,ani7ations "ith a net "o%th o& Rs. 33 c%o%e o% tu%nove% o& Rs.333

c%o%e o% net p%o&it o& Rs. c%o%e have to spen# 2 o& thei% ave%a,e net p%o&it in last th%ee (ea%s

on CSR. >n#oute#l( "hen CSR spen#in, ecomes man#ato%($ the companies a%e oun# to

&o%mali7e thei% p%ocesses$ inclu#in, polic( main,$ plannin, an# e*ecution mechanism an#

%epo%tin,. +he t%en# #i%ecte# ( )n#ia ,ove%nment@s CSR #i%ective #eman#s mo%e

p%o&essionalism$ collao%ative an# o%,ani7e# e&&o%ts$ sha%in, o& %esou%ces an# e*pe%tise to

tae in#ivi#ual an# p%o!ect ase# CSR initiatives to the ne*t level$ i.e. uil#in, a p%ospective

an# sustainale ve%tical. Such e&&o%ts "ill have a##itional impeccale impact on the &ollo"in,

a%eas 6B%oomhill$ 233I5. uman Resou%ces +he ve%tical "ill c%eate eno%mous oppo%tunit(

&o% !os an# consultanc( assi,nments. )t can e an impo%tant ai# to %ec%uitment an# %etention$

pa%ticula%l( "ithin the competitive ,%a#uate ma%et. CSR can also help to uil# a &eel ,oo#@

atmosphe%e amon, e*istin, sta&& an# ma( lea# %evampin, the cou%se content$ e#ucation an#

%esea%ch in &iel#s o& social an# ehavio%al sciences$ especiall( in Social o% an# Business


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#ucation. Ris 1ana,ement 1ana,in, %is an# %eputations is an inevitale pa%t o&

co%po%ate st%ate,ies. +he al%ea#( uilt %eputations ma( e %uine# th%ou,h inci#ents such as

co%%uption$ scan#als o% envi%onmental #isaste%s. Such events can also #%a" un"ante#

attention &%om %e,ulato%s$ cou%ts$ ,ove%nments an# me#ia. Buil#in, a ,enuine cultu%e o&

#oin, the %i,ht thin,@ "ithin a co%po%ation can o&&set these %iss. 1o%eove%$ "e nee# to st%ie

a alance et"een economic value@ an# social capital@. B%an#in, an# )ma,e Buil#in, )n a

hi,hl( competitive an# c%o"#e# ma%etplace companies p%a( &o% some mi%acles@ to happen

o% st%ive &o% Q Facto%s@ "hich can ,ive them some e*t%a e#,e ove% thei% competito%s an#

c%eate a lastin, imp%ession in the min#s o& custome%s an# consume%s. Socio-political

en#o%sement to continue Co%po%ations a%e een to avoi# inte%&e%ence in thei% usiness

th%ou,h ta*ation o% %e,ulations. B( tain, sustantive volunta%( steps$ the( can pe%sua#e

,ove%nments an# the civil societ( that the( a%e een to ente% into p%ivate-pulic pa%tne%ship to

cont%iute sustantiall( to issues lie e#ucation$ sill-uil#in,$ "omen an# chil# health$

climate chan,e$ ca%on c%e#its an# othe% %elevant issues lie e%a#ication o& chil# lao% an#

pove%t( etc. +hat ma( help them to avoi# inte%vention. Dive%tin, Attention 1a!o%

co%po%ations "hich have e*istin, %eputational p%olems #ue to thei% co%e usiness activities

ma( en,a,e in hi,h-p%o&ile CSR p%o,%ams to #%a" attention a"a( &%om thei% pe%ceive#

ne,ative impacts. +hus )+C "ill tae pa%t in e#ucational initiatives$ Amu!a Cement in health

an# %u%al #evelopment$ Coca-Cola in eJ= mana,ement s(stem etc. Conclusion Co%po%ate

social %esponsiilit( 6CSR5 is o&ten vie"e# as an option &o% ima,e uil#in, e*e%cise o%

&ashion to e in ne"s o% &o##e% &o% co%po%ates in semina%s an# pulic ,athe%in,s. o"eve%$

Resea%ch sho"s that emplo(ees #o &eel ,oo# aout "o%in, in o% !oinin, a sociall(

%esponsile compan(.CSR maes usiness sense. >n&o%tunatel($ man( companies use CSR as

a pulic %elations tool an# en,a,e in one-o&& oppo%tunistic p%o!ects that mae them loo ,oo#.

+he( commit to p%o,%ams an# #o not &ollo" up a&te% one o% t"o (ea%s. But the%e a%e ,oo#

nume%s o& companies out the%e "ho #o CSR in a s(stematic manne%. )t coul# e th%ou,h a

voluntee% p%o,%am$ #e#icatin, ce%tain pe%centa,e o& %evenue o% p%o&it eve%( (ea% &o% cha%it($

suppo%tin, i#enti&ie# p%o,%ams in thei% local societ( in a sustaine# manne% an# so on. Some

o& them #o it uietl(L some mae a noise aout it. CSR e&&o%ts cannot e sustainale i& it is

onl( an option &o% ima,e uil#in,$ &o##e% &o% R$ etc. +he %eason is ecause "hen CSR

e&&o%ts a%e initiate# o% use# in this manne%$ people inva%ial( see th%ou,h them an# so the

ima,e uil#in, o% %eputation uil#in, aspect &ails. Fo% CSR e&&o%ts to e success&ul$ the( nee#

to e &ull( a#opte# ( the o%,ani7ation8s lea#e%ship. 1ost o%,ani7ations that happen to have a

success&ul %eputation in te%ms o& CSR have een #oin, it since the o%,ani7ation "as &oun#e#.


17/26

)t is much %a%e% to see o%,ani7ations$ once &inanciall( success&ul$ move in the #i%ection o&

CSR. )t can e #one$ ut it nee#s a #%amatic %ethinin, o& the pu%pose o& the o%,ani7ation (

lea#e%shipKo"ne%ship. uite o&ten the i,,est &ailin, o& CSR is ho" companies miss the ma%

th%ou,h poo% %esea%ch into the nee#s o& thei% communit(. +his$ un&o%tunatel($ can appea% as

thou,h CSR is an ima,e uil#in, e*e%cise instea# o& a ,enuine oa%#-level #esi%e to help the

communit(. +he usiness as in %ealit( can@t have islan#s o& "ealth an# e*cellenceL it nee#s to

uil# the ecos(stem that "ill move "ith the usiness in its ,%o"th sto%( 6Ghosh$ 2305.

Responsiilities o& co%po%ations a%e e*pecte# to ,o e(on# cha%it( to achieve an inte,%ation

o& economic$ envi%onmental an# social impe%atives. CSR shoul# not e vie"e# me%el( as a

ta* ene&it@ #%ives ut as an inte,%al pa%t o& co%po%ate st%ate,( "ith an a#euate space &o%

staehol#e%s@ pa%ticipation. As pe% %ecent #evelopments the CSR activities "ill have to e

ca%%ie# "ithin )n#ia$ an# the ne" %ules "ill also appl( to &o%ei,n companies %e,iste%e# he%e.

o"eve%$ &un#s ,iven to political pa%ties an# the mone( spent &o% the ene&it o& the

compan(@s o"n emplo(ees 6an# thei% &amilies5 "ill not < count as CSR. ?istin, out the

pe%mitte# CSR activities$ the ,ove%nment sai# that the( nee#e# to e un#e%taen as pe%

app%oval o& the compan(@s oa%# in acco%#ance "ith its CSR Polic( an# the #ecision o& its

CSR Committee. +he CSR polic( o& a compan( shoul# also speci&( that su%plus a%isin, out o&

the CSR p%o!ects o% p%o,%ammes o% activities shall not &o%m pa%t o& the usiness p%o&it o& a

compan(. A compan( can also ca%%( out CSR "o%s th%ou,h a %e,iste%e# t%ust o% societ( o% a

sepa%ate compan(. As pe% the %ecent %ules$ a compan( ma( also collao%ate "ith othe%

companies &o% CSR activities$ p%ovi#e# the( have to sepa%atel( %epo%t aout spen#in, on such

p%o!ects p%o,%ammes. +he CSR activities must e cohe%ent "ith the pulishe# CSR polic( o&

an o%,ani7ation an# it must implemente# th%ou,h "ell planne# p%o!ects o% p%o,%ammes$

eithe% in#epen#entl( o% in collao%ation "ith NG=s o% simila% o%,ani7ations. Acco%#in, to a

%ecent noti&ication ( the Co%po%ate A&&ai%s 1inist%( 6+he in#u$ 2345$ CSR activities

shoul# neve% e an ope%ational component o& an( no%mal cou%se o& usiness.


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45 1an#ato%( p%ovision un#e% companies Act - 230

Co%po%ate Social Responsiilit( 6CSR5$ a te%m "i#el( use &o% #e&inin, the %esponsiilities o&

Co%po%ate "o%l# to"a%#s the societ( H envi%onment. Althou,h the te%m is not ne" in this

Co%po%ate "o%l# ut its scope H meanin, has un#e%,one ma!o% chan,es &%om t%eatin, it as a

me%e cha%it( in compa%ison "ith the %esponsiilitiesK#uties o& the Co%po%ate to"a%#s the oute%

"o%l#.

+he%e a%e man( i, entities "ho have een activel( en,a,e# in the CSR activities ut

un&o%tunatel( the nume% is %elativel( less. )n o%#e% to encou%a,e mo%e entities to pa%ticipate

in the p%ocess o& #evelopment o& the societ( via- CSR$ the Gove%nment o& )n#ia has actuall(

implemente# the concept o& CSR in the ne" Companies Act 230$ =n 2I thFe%ua%($ 234$

the Gove%nment o& )n#ia has noti&ie# the %ules &o% CSR spen#in, uKs 0 o& the Ne"

Companies Act 230 alon, "ith Companies 6Co%po%ate Social Responsiilit( Polic(5 Rules$

234 e&&ective &%om stAp%il 234. +u%nin, the CSR &%om volunta%( activities to the

man#ate# %esponsiilities$ also ,ove%ne# ( the un#le o& %e,ulations as &ollo"s:

li,iilit( C%ite%ia:

Compan( 6inclu#es &o%ei,n compan( "ith %anches o% p%o!ect in )n#ia5 havin,:

1inimum net "o%th o& %upees 33 C%o%e.

+u%nove% up to 9333 C%o%e9

havin, a net p%o&it o& at least 8c%o%e8.

#u%in, an( &inancial (ea%$ a%e cove%e# ( this p%ovision

.

Composition o& CSR Committee

+he Compan( shoul# constitute a Co%po%ate Social Responsiilit( Committee as &ollo"s:

. +he Committee shall consist o& minimum 0 6th%ee5 inclu#in, 6one5 )n#epen#ent

Di%ecto%$ ho"eve% in case o& P%ivate Compan( o% the Compan($ "hich is not %eui%e#


19/26

to appoint )n#epen#ent Di%ecto% on oa%#$ o% Fo%ei,n Compan( the committee can e

&o%mulate# "ith 625 t"o #i%ecto%s.

2. +he CSR Polic( shall e &o%mulate# in acco%#ance "ith Sche#ule M)) an# the CSR

Committee "ill e %esponsile &o% &%amin, the polic($ &inali7in, the amount to e

spent on CSR$ monito%in, H implementation o& the Scheme.

0. )& Compan( ceases to &ul&ill the eli,iilit( c%ite%ia &o% th%ee consecutive (ea%s$ then the

compan( is not %eui%e# to compl( until the compan( "ill meet the eli,iilit( c%ite%ia

once a,ain.

+he CSR Rules p%ovi#es the manne% in "hich CSR committee shall &o%mulate$ monito% the

polic( an# manne% o& un#e%stan#in, &o% CSR activities.

>n#e% the %ules$ the Gove%nment has also &i*e# a th%eshol# limit o& 2 o& the 9Ave%a,e8 Net

P%o&its o& the loc o& p%evious th%ee (ea%s on CSR activities an# i& Compan( &ails to spen#

such amount$ #isclosu%es a%e to e ma#e &o% the same. But an e*emption has een ,iven to

the Companies that #o not satis&( the aove th%eshol# &o% th%ee consecutive (ea%s.

B%ie& on CSR Activities as p%esc%ie# un#e% Sche#ule M)) o& CA$ 230

. =!ective to e&&ace the #ail( li&e se,ments inclu#in, pove%t($ malnut%ition an# hun,e%

"hile enhancin, the stan#a%# o& livin, an# p%omotin, the &acets o& ette% health ca%e

an# sanitation.

2. )nitiative to p%omote the #i&&e%ent se,ments o& e#ucation inclu#in, special e#ucation

an# p%o,%ams to enhance the vocation sills &o% all a,es lie chil#%en$ "omen$ el#e%l(

an# con#uctin, othe% livelihoo# enhancement p%o!ects.

0. Aim to %in, the uni&o%mit( in %espect o& #i&&e%ent sections o& the societ( to p%omote

,en#e% eualit( an# othe% &acilities &o% senio% citi7ens an# #evelopin, hostels &o%

"omen an# o%phans an# tain, initiative &o% empo"e%in, "omen an# lo"e%in,

ineualities &ace# ( sociall( an# economicall( ac"a%# ,%oups.


20/26

4. levate the se,ment o& &lo%a an# &auna to %in, the ecolo,ical alance an#

envi%onmental sustainailit( in %espect o& animal "el&a%e$ conse%vation o& natu%al

%esou%ces an# a,o &o%est%( "hile maintainin, the ualit( o& ai%$ "ate% an# soil.

. nhancement o& C%a&tsmanship "hile p%otectin, a%t an# cultu%e an# measu%es to

%esto%e sites o& histo%ical impo%tance an# national he%ita,e an# p%omotin, the "o%s o&

a%t an# settin, up o& pulic li%a%ies.


21/26

o& its no%mal cou%se o& usiness. +he Boa%# o& Di%ecto%s ma( #eci#e to un#e%tae its CSR

activities app%ove# ( the CSR Committee$ th%ou,h a %e,iste%e# t%ust o% a %e,iste%e# societ(.

Yea%l( Compliances:-

. +he Annual Repo%t o& the Compan( shall inclu#e a comp%ehensive Repo%t on CSR in

the &o%mat as p%esc%ie# in the Companies (Corporate Social Responsibility Policy)

Rules, 2014$ containin, pa%ticula%s on =ve%vie" o& CSR Polic($ Composition o& the

Committee$ Av,. Net P%o&it$ p%esc%ie# e*pen#itu%e an# #etails o& its spen#in,$ %eason

in case o& &ailu%e etc.

2. +he #isclosu%e on CSR in Boa%# Repo%t shoul# also e availale on the Company's

Website.

0. +he activities inclu#e# in the CSR Polic( an# the p%esc%ie# e*pen#itu%e ein,

un#e%taenK spent shall e ensu%e# ( the Boa%#$ in the %espective manne%.

+his means all the Companies &allin, in the a&o%esai# c%ite%ia nee#s to ensu%e CSR

compliance ut it is #eatale to sa( that the same isfor welfare of the society or the

companies are doing it just to avoid penalties . CSR stan#s to suppo%t the Compan(8s Misionas "ell as #i%ections to "hat =%,ani7ation stan#s &o% an# "ill sustain its clients. An )S=

2


22/26

5 1(th o& CSR

Co%po%ate social %esponsiilit( ne" mo%als &o% usiness/ 1o%e an# mo%e companies thin

that Eco%po%ate social %esponsiilit( is ,oo# &o% usiness. But is it ,oo# &o% "o%e%s/ e

ase# Philip 'ennin,s. e hea#s >N)$ the inte%national sills an# se%vices union %ep%esentin,

mo%e than million "o%e%s "o%l#"i#e. e also cu%%entl( chai%s the Gene%al Con&e%ence o&

the secto%-(-secto% Gloal >nion Fe#e%ations$ o& "hich >N) is one. ?aou% #ucation:

Co%po%ate social %esponsiilit( 6CSR5 is a ma!o% ne" usiness t%en#$ cent%in, on the Et%iple

ottom line o& companies@ economic$ social an# envi%onmental pe%&o%mance P%o&its$

People an# Planet. )s this a ,oo# #evelopment &o% o%,ani7e# laou%/

)t@s a ,oo# thin, &o% o%,ani7e# laou% that companies$ ecause o& thei% o"n t%ans,%essions$

have &inall( een oli,e# to tae co%po%ate social %esponsiilit( se%iousl(. Business lea#e%s

a%e looin, to CSR ecause$ as one commentato% sai#$ the( Ehave lost thei% o"n mo%al

compass. e have !ust een th%ou,h a melt#o"n o& co%po%ate ethics. Gove%nments$

%e,ulato%s$ consume%s$ investo%s an# t%a#e unions a%e all insistin, that the companies clean up

thei% act. nvi%onics$ a %esea%ch ,%oup on ,loal issues$ %ecentl( su%ve(e# 23$333 people in 0

count%ies on t%ust in lea#e%ship an# institutions. +he( &oun# that national an# multinational

companies "e%e at the ottom en# o& the tale. CSR can e a positive &o%ce &o% chan,e. )t is

impo%tant that t%a#e unions a%e involve# in estalishin, CSR stan#a%#s$ not least ecause

union meme%s have a tho%ou,h no"le#,e o& the companies "he%e the( "o%. e have

plent( o& insi,hts to o&&e%. Fo% instance$ "hen o%l#Com "ante# to me%,e "ith Sp%int to

&o%m the "o%l#@s i,,est telecoms compan($ >N) ,ave evi#ence to the u%opean

Commission@s hea%in, on the me%,e% plan. e a#vise# them that o%l#Com coul#n@t e

t%uste#. +he Commission loce# the me%,e%. Soon a&te%"a%#s$ o%l#Com "as at the cent%eo& the i,,est co%po%ate collapse in histo%(. )s CSR a viale sustitute &o% %e,ulation/ No. +he

&act that usiness is su##enl( p%epa%e# to tae all these volunta%( initiatives in no "a(

!usti&ies less %e,ulation. =n the cont%a%($ the %ecent co%po%ate scan#als su,,est that "e nee#

mo%e. An# "e nee# to %e%e,ulate the %e,ulato%s$ man( o& "hom "e%e &oun# "antin,. )n the

>nite# States$ &o% e*ample$ the Secu%ities an# *chan,e Commission has ne" po"e%s an#

Con,%ess int%o#uce# a %a&t o& ne" compan( la" le,islation. e nee# ti,hte% le,al cont%ol not

!ust o& non-e*ecutive #i%ecto%s ut also o& au#ito%s$ mana,e%s an# consultants. +hat is in the


23/26

"i#e% pulic inte%est. =u% conce%n is that #e%e,ulation &uelle# a la* attitu#e to ensu%in,

usinesses #o the %i,ht thin,. Recent e*pe%ience sho"s that the( &aile# the Evolunta%( test.

So is CSR the ne" pate%nalism/ )s it liel( to encou%a,e o% #iscou%a,e the si,nin, o&

&u%the% ,loal a,%eements o% &%ame"o% a,%eements et"een in#ivi#ual companies an#

the Gloal >nion Fe#e%ations/ Ne" pate%nalism/ No$ it@s mo%e lie a ne" %ealism. ) thin

that one test o& a ,oo# CSR polic( is to e*amine the compan(@s %eco%# on union

%eco,nition$ an# loo at ho" that p%ocess o& CSR is ein, mana,e# insi#e the compan(.

o"eve%$ "ooll( statements on CSR a%e no sustitute &o% positive laou% %elations

policies. Fo% e*ample$ is the compan( mainst%eamin, the )?= stan#a%#s an# the =CD

Gui#elines &o% multinationals "ithin its ove%all in#ust%ial %elations polic(/ )& companies

a%e looin, &o% stan#a%#s upon "hich to ase thei% CSR polic($ then the( shoul# use the

ones that al%ea#( e*ist. +he( shoul# appl( the )?= +%ipa%tite Decla%ation an# ecome

&amilia% "ith the =CD Gui#elines. A "o%# o& a#vice to investo%s: i& (ou@%e thinin, o&

puttin, mone( into a multinational compan($ as them i& the( have a ,loal a,%eement

"ith the Gloal >nion Fe#e%ations. )& not$ "h( not/ But the ,loal a,%eements cove% onl(

a ve%( small p%opo%tion o& the "o%l#@s "o%&o%ce. A%en@t the( !ust a #%op in the ocean/ At

the moment$ the ,loal a,%eements cove% a%oun# 2 million "o%e%s. ) thin that@s al%ea#(

uite imp%essive$ ut all %i,ht$ ) a,%ee the%e@s still a lon, "a( to ,o. hat "e u%,entl(

nee# these #a(s is some enchma%in, o& companies@ %espect &o% ,loal t%a#e union

%i,hts. Gloal &%ame"o% a,%eements help to meet that nee#. )& a lea#in, compan( sa(s

it@s p%epa%e# to sit #o"n an# si,n an a,%eement "ith unions at the "o%l# level$ it is settin,

a ,oo# e*ample to othe% companies in its secto% an# e(on#. )@m con&i#ent that man(

mo%e o& these a,%eements "ill e si,ne# in the nea% &utu%e$ an# the(@ll no lon,e% e seen

as a novelt(. )t@s sometimes sai# that the initial impetus ehin# CSR came &%om the

envi%onmental movement$ %athe% than o%,ani7e# laou%. Do the ,loal unions have somecatchin, up to #o/ +he unions a%e ce%tainl( not 'ohnn(-comelatelies in all o& this. )&

an(o#( thins that$ )@m su%p%ise#. +he "hole point o& t%a#e unions@ "o% an# st%u,,les

ove% the past centu%( has een to instil some social %esponsiilit( into emplo(e%s. )&

an(thin,$ some o& the NG=s "e%e %athe% slo" to %eco,ni7e the impo%tance o& the t%a#e

union a,en#a$ an# its close %elationship "ith othe% cu%%ent conce%ns. ho achieve# le,al

%e,ulation o& "o%place health an# sa&et( an# then "ent on to emphasi7e the close lin

et"een the envi%onment insi#e the "o%place an# the envi%onment outsi#e/ ho

champione# "omen@s eualit( at "o%/ ho secu%e# ne" u%opean"i#e %i,hts &o%


24/26

"o%e%s$ to in&o%mation an# consultation "he%e "e can %aise the CSR a,en#a/ But in an(

case$ this is a %athe% ste%ile #iscussion. +he impo%tant thin, is that the NG= communit(

an# the t%a#e unions have %eali7e# that "e have inte%ests in common$ an# that to,ethe% "e

&o%m an alliance &o% %eal ,loal chan,e. +his 'anua%($ (ou an# othe% ,loal union lea#e%s

too pa%t in the o%l# conomic Fo%um in Davos. At the same time$ the ,loal t%a#e

union movement "as euall( "ell %ep%esente# at the o%l# Social Fo%um in Po%to Ale,%e.

+he unions #elive%e# i#entical messa,es to the t"o events. Do ,loal unions occup( the

mi##le ,%oun# et"een a Davos-st(le Eclassic ,loali7ation an# Po%to Ale,%e@s Eothe%

,loali7ation/ hat #o (ou thin o& the %esults o& the t"o &o%ums/ hat "e "e%e t%(in,

to #o "as to %in, the same ,loal union messa,e to oth meetin,s. )t "as ce%tainl( ette%

%eceive# in Po%to Ale,%e than in Davos$ ut that@s !ust too a#. =u% vie"s a%e ou% vie"s$

"he%eve% "e ,o. e still thin the%e@s a use&ul plat&o%m &o% us in Davos$ an# "e inten# to

,o on usin, it. )n &act$ the a,en#a o& the o%l# conomic Fo%um has chan,e# e(on#

%eco,nition ove% the past ten (ea%s$ la%,el( 00 #ue to p%essu%e &%om the unions an# the

NG=s. )t@s a #i&&e%ent in# o& #eate no". +he%e@s a mo%e se%ious attempt to e*amine

emplo(ment$ human %i,hts$ t%a#e an# #evelopment$ co%po%ate ,ove%nance$ "o%l# health

an# so on. +he Davos &o%um is still &un#e# ( the p%ivate secto%$ ut the%e@s no #out that

its a,en#a has chan,e#. As &o% the o%l# Social Fo%um$ the%e have een oth %e,ional an#

national initiatives to consoli#ate its o%,ani7ation an# its %ole. )@m su%e that it "ill e an

impo%tant &o%ce &o% ,oo#. You %ecentl( c%itici7e# Ame%ican-hea#ua%te%e# multinationals

&o% thei% &ailu%e to si,n up to the >N@s Gloal Compact. h( a%e the( so "a%( o& it/

Because so man( Ame%ican companies a%e anti-union. >nioni7e# Ame%ican "o%e%s ea%n

2< pe% cent mo%e than thei% non-union collea,ues$ acco%#in, to &i,u%es pulishe# this

Fe%ua%( ( the >S Gove%nment@s Bu%eau o& ?ao% Statistics. An# (et$ the >nite# States

has one o& the lo"est union meme%ship %ates in the in#ust%iali7e# "o%l#. h( shoul#

that e/ ell$ let me uote to (ou &%om a p%ess %elease sent out ( the Ame%ican national

laou% &e#e%ation AF?-C)=$ on the same #a( as the Gove%nment %elease# those statistics:

Ne" %esea%ch ( Pete% D. a%t Resea%ch Associates in#icates that Ame%ica@s "o%e%s

nee# an# "ant unions hal& o& >S "o%e%s sa( the( "oul# &o%m a union tomo%%o" i&

,iven the chance. +hat t%anslates into 03 to 43 million "o%e%s "ho "oul# !oin a union i&

,iven a &%ee choice ut too &e" eve% ,et that chance. mplo(e%s %outinel( violate

"o%e%s@ &%ee#om to imp%ove thei% lives th%ou,h unions. Ninet(-&ive pe%cent o& p%ivate-

secto% emplo(e%s &i,ht thei% "o%e%s@ e&&o%ts to &o%m unions$ inclu#in, a thi%# "ho

ille,all( &i%e union suppo%te%s$ acco%#in, to Co%nell %esea%che% Jate B%on&en%enne%


25/26

)n#epen#ent %esea%ch sho"s that the Ame%ican pulic #oes not no" "hat "o%e%s must

en#u%e !ust to e*e%cise thei% %i,ht to a union. Because the &%ee#om to imp%ove one@s li&e

"ith a union is a asic civil an# human %i,ht$ the laou% movement "ill involve

communit( an# electe# lea#e%s in #eman#in, a &%ee choice &o% "o%e%s. So the%e (ou a%e.

Basic laou% %i,hts$ inclu#in, &%ee#om o& association$ a%e at the hea%t o& the Gloal

Compact. )@m not at all su%p%ise# that so &e" Ame%ican-hea#ua%te%e# companies have

si,ne# up. A nume% o& ,ui#elines &o% companies@ CSR %epo%tin, a%e no" availale$ some

o& "hich a%e uite #etaile# an# p%ecise. Do the ,loal unions have an( vie"s conce%nin,

the va%ious &o%mats p%opose#/ ) %ea# some"he%e that the%e a%e no" seve%al hun#%e# CSR

%epo%tin, &o%mats on o&&e% in va%ious pa%ts o& the "o%l#. +hat@s oviousl( &a% too man($

an# most o& them a%e unliel( to su%vive. e in the t%a#e unions a%e involve# in the

Gloal Repo%tin, )nitiative 6GR)5$ "he%e "e a%e %ep%esente# alon,si#e the companies$ the

accountants$ the NG=s an# so on. So "e@%e &ull( involve# in #%a"in, up GR)@s main

,ui#elines an# its secto%al supplements. As lon, as it sta(s that "a($ as lon, as the unions

have thei% &ull sa($ then ) thin it@s an impo%tant initiative. Simila%l($ "e a%e on the insi#e

o& the SA 333 p%ocess &o% stan#a%#-settin, in social au#itin,. e@%e on the SA 333

Boa%#$ an# that helps to ,ive le,itimac( to the "hole p%ocess. An# unions a%e pa%t o&

campai,ns lie the thical +%a#in, )nitiative an# Clean Clothes. F%anl($ )@m %athe% mo%e

conce%ne# aout the %ole o& the )nte%national =%,ani7ation &o% Stan#a%#i7ation 6)S=5 in all

o& this. )t seems to us that the )S= has een ,ettin, involve# in this issue "ithout p%ope%

consultation "ith the unions an# the )?=. Stan#a%#-settin, on CSR has mo%e to #o "ith

the )?=@s competencies an# e*pe%ience than "ith those o& the )S=. CSR pe%&o%mance

oviousl( has to e monito%e# ( someone. Social %atin, a,encies a%e e,innin, to

mush%oom. oul# (ou see a %ole &o% the )?= in ve%i&(in, the ve%i&ie%s/ 04 +he )?= is the

,loal %atin, a,enc( &o% social stan#a%#s. Full stop. )t has een settin, an# monito%in,

inte%national stan#a%#s &o% a ve%( lon, time no". )t has mo%e e*pe%ience than an(o#(

else in that &iel#. =& cou%se$ the )?= must move "ith the times. o%l# mechanisms &o%

monito%in, multinational co%po%ations still leave much to e #esi%e#. +he =CD

Gui#elines &o% multinationals have %ecentl( een st%en,thene# to help ensu%e ,%eate%

co%po%ate t%anspa%enc(. +he )?= shoul# also %evisit this issue$ in a sensile "a(. )t al%ea#(

monito%s ,ove%nments@ compliance "ith its stan#a%#s. h( not tae the ne*t step in

%elation to "hat the co%po%ate communit( is #oin,/ 1onito%in, o& CSR &its in "ell "ith

the )?=@s e*pe%ience. A%e (ou sa(in, that the )?= shoul# e ale to hol# in#ivi#ual

companies to account/ )t al%ea#( hol#s ,ove%nments to account. 1ultinationals a%e no


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less po"e%&ul than ,ove%nments. +he )?= shoul# also e e*plo%in, "a(s o& main, the

companies accountale &o% thei% social pe%&o%mance.

bussiness law assignment

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