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Ms Punam Singh
Institute of Public Enterprise
Dr Shulagna Sarkar
Institute of Public Enterprise
Considering the strategic importance of CSR that permeates into the society through various business processes of companies and the potential implication, the Ministry of Corporate Affairs have come up with voluntary guidelines for firms to follow. The Department of Public Enterprises (DPE) has also issued guidelines on CSR for Central Public Sector Enterprises (CPSEs). It is mandatory for the profit making CPSEs in India to have their CSR budget as per the stipulations in the guidelines and their performance on their CSR activities gets assessed in their MoU. The latest Companies Bill 2012 which was approved in the Lok Sabha on 18 December 2012 reflects on the importance of CSR as part of a firm's business strategy.
DPE guidelines on CSR and Sustainability, Social, Environmental & Economic Responsibilities of Business, MCA, July, 2011 and CSR Provisions as per the latest Companies Bill, 2012 as discussed in this report.
Definition of CSR
"CSR is a company's commitment to operate in an economically, socially and environmentally sustainable manner, while recognizing the interests of its stakeholders."
- DPE Guidelines on CSRfor CPSEs in India, 2010
"CSR can be defined as the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time."
- Carroll and Buchholt^ 2003
"CSR can be defined as the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life."
World Business Council for Sustainable Development, 2000
DPE Revised Guidelines on CSR and Sustainability (for CPSEs only
to come into effect on 1 April 2013)
The DPE has come up with its comprehensive guidelines on CSR in March 2010 vide F.No.l5(3)/2007 -DPE(GM) GL 99 dated 9 April 2010 for the CPSEs in India with respect to the concept, planning, research, documentation, advocacy, promotion, funding aspects, documentation and monitoring the CSR activities. The Department of Public enterprise has further revised the guidelines which shall come into effect on 1 April 2013. In line with the international practice, in the revised guidelines CSR and Sustainable Development have been clubbed together in one set of guidelines for CSR and Sustainability.
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