BRIEF NOTE ON LEGAL STATUS OF CSR IN INDIA BROADLY COVERING VOLUNTARY GUIDELINES Corporate Social Responsibility (CSR) is viewed

d as a comprehensive set of policies, practices and programs that are integrated into business operations, supply chains, and decision-making processes throughout the organization -- wherever the organization does business -- and includes responsibility for current and past actions as well as future impacts. CSR involves addressing the legal, ethical, commercial and other expectations society has for business, and making decisions that fairly balance the claims of all key stakeholders. Effective CSR aims at achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment. LEGAL STATUS IN INDIA:

The Ministry of Corporate Affairs (MCA), issued a set of voluntary CSR guidelines at the end of year 2009 known as Corporate Social Responsibility Voluntary Guidelines, 2009. Sh. Salman Khurshid, the then minister provided the context for the guidelines and wrote that "We have seen the business sector generating wealth and value for the shareholders in the last sixty years, but simultaneously we also have the problems of poverty, unemployment, illiteracy, malnutrition etc., facing the nation. The corporate growth is sometimes seen as widening the gap between the India and Bharat through its income - skewing capability. This gap needs to be bridged. While the Government undertakes extensive developmental initiatives through a series of sectoral programmes, the business sector also needs to take the responsibility of exhibiting socially responsible business practices that ensures the distribution of wealth and well-being of the communities in which the business operates." The intent of the guidelines is to add company value, focus on long-term sustainability contributions and provide benefit to stakeholders and society. The said Corporate Social Responsibility Voluntary Guidelines, 2009 covers the following core elements: (1) Care for all statekholders; (2) Ethical functioning; (3) Respect for workers' rights and welfare; (4) Respect for human rights; (5) Respect for the environment; and (6) Activities for social and inclusive development. After a long debate and discussions over the same, the MCA had recently, in 2011 had came up with a new guideline to strengthen and enable the Indian corporate sector to

evolve into a global leader in responsible business (RB) named National Voluntary Guidelines on Social, Environmental and Economic responsibilities of Business. Shri Murli Deora, the then Minster, said that the beginning of industrialization marked the transition from merchant charity to industrial philanthropy in India which was more secular, more inclusive in terms of caste, creed and community and more oriented to bringing progress to society through western style modern institutions. These guidelines were formulated keeping in view the diverse sectors within which businesses operate, as well as the wide variety of business organizations that exist in India today from the small and medium enterprises to large corporate organizations. Reading through the Principles and the Core Elements it is clear that the Guidelines cover almost the whole gamut of CSR. They cover not only community service but also corporate governance, customer relationships, environment, supply chain management etc. Business will now have to look at all these aspects with greater seriousness to qualify to be called responsible business (RB). National Voluntary Guidelines on Social, Environmental and Economic responsibilities of Business comprises of the following NINE principles of CSR: 1. Business to conduct and govern themselves with Ethics, Transparency and Accountability. 2. The provision of goods and services that are safe and contribute to sustainability through out their life cycle. 3. Wellbeing of all employees 4. Business to respect the interest of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized. 5. Business to respect and promote Human Rights. 6. Business should respect, protect and make efforts to restore the environment. 7. Business, when engaged in influencing public and regulatory policy, should do so in a responsible manner. 8. Business to support inclusive growth and equitable distribution. 9. Business should engage with and provide value to their customers and consumers in a responsible manner. They are the principles, which if applied diligently would make Corporate Social Responsibility more meaningful and beneficial for both business and society. As on date, activities pertaining to CSR in India are not governed or made mandatory on Indian Corporate under legislation except Corporate Governance.