GUIDELINES

on
CORPORATE SOCIAL
RESPONSIBILITY
for
CENTRAL PUBLIC SECTOR
ENTERPRISES
1
CHANGE IN APPROACH
With the rapidly changing
corporate environment, more
functional autonomy, operational
freedom etc., CPSEs today are
required to adopt CSR as a strategic
tool for sustainable growth.
CSR in the present context, means
not only investment of funds for
social activities but also integration
of business processes with social
processes. 2
 Need for Linkage with
Community
An Enterprise needs to address the
concerns of the society in which the
enterprise is operating. There should be
free interaction between enterprises and
community leaders.
In order to address the social needs of
the community, viable projects need to
be identified to meet its requirements.

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Overarching Concept
CPSEs may approach Corporate Social
Responsibility as a professional
management process with a long-term
strategy integrating it with corporate
strategies.
CSR activities may be planned in parallel
to the business plan, looking at every
possible opportunity to link and integrate
business plans with the social and
environmental concerns available.
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Planning the CSR Initiative
A long-term Corporate Social
Responsibility Plan needs to be prepared
matching with the long-term business
plan;
This may be broken down into short-
term and medium term plans, specifying
activities to be undertaken, budgets
allocated, responsibilities and authorities
defined, and measurable results
expected. 5
Implementation
The Plan must clarify implementation
guidelines involving:
 Participation of Voluntary Organizations,
Specialist Organisations and Community
Based Organizations;
 Base-line Surveys
 Documentation of the experience;
 Setting Up a CSR Hub with participation
of Deptt of PE, SCOPE and CP Sector
Enterprises;
 Monitoring and Evaluation
 Lessons learnt for future use. 6
Thrust Areas
 Areas related to the business of the PSE
as a natural corollary to the business.
 Assistance to be mostly project based
rather than donation, so as to generate
community goodwill, create social
impact and visibility.
 Finalizing of time-frames and various
milestones before commencement of a
project.
 Involving of suppliers in order to ensure
that the supply- chain also follows the
CSR principles. 7
Thrust Areas contd…
 Emphasis on principles of Sustainable
Development, based on the immediate
and long-term social and environmental
consequences of the activities
undertaken;
 Improvement of the existing ecological
conditions;
 Ensuring skill enhancement and
employment generation by co-creating
value with local institutions and people.
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 ACTIVITIES THAT WILL NOT

COUNT AS CSR

BENEFITS TO STAFF;

GRANTSTO
ORGANIZATIONS/INSTITUTIONS;
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 IMPLEMENTATION MODALITIES

CSRActivities to be carried out by Specialist

Agencies;

Such activities generally not to be conducted

by CPSE employees/staff;

SpecialistAgencies to include NGOs, Institutes,

Academic Organizations, Civil
Society/Community-based orgns., Trusts,
Missions etc., who have requisite expertise.
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IMPLEMENTATION MODALITIES Contd…
Utmost efforts to be made to find out the
reliability, and track record of the
NGOs/Orgns entrusted with CSR
activities.
Initiatives of State Governments as well
as Central Government Departments
/Agencies could be dovetailed/
synergised with CSR activities.
Avoidance of any duplication of CSR
activities by the CPSEs, the State
Governments and local level
Programmes. 11
 Funding
The CSR budget to be mandatorily created
through a Board Resolution as a percentage
of net profit in the following manner:-
Type of CPSEs Expenditure range for CSR
Net Profit in a Financial Year
(Previous Year) (% of profit)

(i) Less than Rs. 100 crore 3% – 5%

(ii)100 crore to Rs. 500 crore 2% – 3%

(Subject to a Min. of 3 cr)

(iii) 500 crore and above 0.5% – 2% 12

 Funding Contd..
The CSR Budget to be fixed for each
financial year. This funding not to lapse
– must be transferred to a CSR Fund,
which will accumulate – as in the case
of non-lapsable pool for North East.
In case CPSEs have different Profit
Centers like Factories / Plant locations,
they may be allocated separate CSR
budgets to be spent by them under the
Annual CSR Budget allocations.
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 Monitoring
Monitoring of the CSR projects is very
crucial and needs to be a periodic activity
of the Enterprise.
The Board of CPSEs should discuss the
implementation of CSR activities in their
Board meetings.
The CPSE should bring a separate
paragraph/chapter in the Annual Report
on the implementation of CSR
activities/projects including the facts
relating to physical and financial
progress. 14
 Monitoring contd…
The implementation of CSR guidelines to
form a part of the Memorandum of
Understanding to be signed between
CPSE and the Government;
The performance of CSR should be
monitored by the Ministry/Department on
regular basis.
In MoU Guidelines from 2010-11
onwards, 20% has been earmarked out
of the non-financial parameters for
performance under CSR. 15
 Monitoring & Evaluation
For proper monitoring of CSR
activities, companies may appoint a
CSR committee or a Social Audit
Committee or a suitable, credible
agency to critically assess fulfillment
of social obligations.
CSR projects should also be
evaluated by an independent
external agency. This evaluation
should be both concurrent and final.16
Baseline Surveys and Documentation
Impacts made may be quantified to the
best possible extent with reference to
base line data, which need to be created
by the CPSEs before the start of any
project. Hence Base-line Surveys
mandatory.
The documentation relating to CSR
approaches, policies, programmes,
expenditures, procurement, etc. to be
put in the public domain, particularly
through the internet. 17
 CSR HUB
 The Deptt. Of Public Enterprises, in conjunction with
SCOPE and the CPSEs will create a CSR Hub which will
undertake/facilitate the following activities:
 Nation-wide compilation, documentation, and
creation of database;
 Advocacy;
 Research;
 Preparation of Panels of Implementing Orgns.;
 Promotional activities, including production of
short films, printing of brochures, pamphlets etc.;
 Conferences, Seminars, Workshops – both
national and international;
 Act as a Think Tank;
 Any other matter as entrusted to it from time to
time by the DPE
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 CSR HUB Contd…
The Hub will begin operations with funding
provided by Deptt. PE;
It will, however, be free to receive funds from;
 SCOPE and both Central as well as State CPSEs;
 UN Agencies, reputed international agencies such as
World Bank, EU and other multilateral bodies and
orgns.;
 Reputed National and State Bodies;
 Govt. Deptts., Autonomous Orgns., Planning
Commission, Attached and Subordinate Offices,
Corporations etc.
 Philanthropic Missions, Trusts, etc. of national and
international repute.
 Decisions relating to the location and functioning of the
HUB will be taken by DPE. SCOPE will be kept informed
of such decisions and will be free to offer suggestions,
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inputs etc.
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