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CSR Assignment -2

Submitted By – DIKSHA YADAV

Roll Number – 03512303918

Q 1:Define Social Audit and explain briefly how it helps in good governance. Explain the steps to be
undertaken for social audit in any of the government programmes.

Ans 1- A social audit is a way of measuring, understanding, reporting and ultimately improving an
organization’s social and ethical performance. A social audit helps to narrow gaps between vision/goal
and reality, between efficiency and effectiveness. It is a technique to understand, measure, verify, report
on and to improve the social performance of the organization.

Social auditing creates an impact upon governance. It values the voice of stakeholders, including
marginalized/poor groups whose voices are rarely heard. Social auditing is taken up for the purpose of
enhancing local governance, particularly for strengthening accountability and transparency in local
bodies.

Objectives of social audit

 Assessing the physical and financial gaps between needs and resources available for local
development.
 Creating awareness among beneficiaries and providers of local social and productive services.

Advantages of social audit:

The social audit offers the following advantages:

 Trains the community on participatory local planning.

 Promotes collective decision making and sharing responsibilities.
 Develops human resources and social capital

To be effective, the social auditor must have the right to:

 Seek clarifications from the implementing agency about any decision-making, activity, scheme,
income and expenditure incurred by the agency;
 Consider and scrutinize existing schemes and local activities of the agency; and
 Access registers and documents relating to all development activities undertaken by the
implementing agency or by any other government department.

This requires transparency in the decision-making and activities of the implementing agencies. In a way,
social audit includes measures for enhancing transparency by enforcing the right to information in the
planning and implementation of local development activities.

Public documents for social audit

 All budget allocations, beneficiary lists, muster rolls, bills, vouchers, accounts, etc. must be
available for public scrutiny.
  Public assessment of tax, exemptions, grants, etc., to ensure there are no complaints of undue
preferential treatment.

Social audit committees

Social audit can also be used for auditing the performance ofall three PRI tiers with a social audit
committee at each level. These committees should not be permanent, but can be set up depending on the
nature of programmes/schemes to be audited.

Social audit committee members can be drawn from among programme stakeholders. It is advisable to
use the services of retired functionaries of different organizations, teachers or persons of impeccable
integrity living in the Zilla Panchayat/Block Panchayat/Gram Panchayatjurisdiction. Both facilitators and
social audit committee members can be trained by social audit experts.

The Steps to be Undertaken in Social Audit of Government Programme are:

1.Social Audit Calendar: The Social Audit Unit (SAU) prepares the social audit calendar for the Gram
Panchayat in the State.

2.Selection of Village Resource Persons (VRPs): The VRPs are identified by the Social Audit Unit in
each state. The VRPs should be drawn from the following groups:

3.Training of VRPs: The identified VRPs will attend the training programme on key aspects of
MGNREGA, social accountability and social audit.

4.Consolidation of records: The Block Office will provide all the required documents and the social audit
team will cross check and verify these documents. They will ensure that all the records against the total
expenditure are made available.

5.Verification: The social audit team will cross verify the records with the beneficiaries and worksite as
follows:

7.Social Audit Gram Sabha: After the report preparation, the next step in social audit is to conduct a
Social Audit Gram Sabha. The social audit team presents the findings from the verification stage to the
people in the presence of an independent observer. The implementing agency needs to respond to the
issues raised in front of the Gram Sabha.
8.Public Hearing: The purpose of the public hearing is to ensure that the orders are issued on a public
platform and actions are taken on the social audit findings. The officials from the implementing agencies
need to be present and respond to the social audit findings, as well as the queries raised by people.

9.Village Resource Persons: The Village resource persons serve as the most important link in the chain of
the social audit process. They are the ones who perform the role of providing assistance to the community
members enabling them to conduct a social audit of their Gram Panchayat.

Q 2:What is BRR and how is it beneficial for a company? Prepare and elaborate BRR for the year 2019-
2020 for any IT company of your choice.

Ans 2- Business Responsibility Report (BRR) has been outlined as a tool to help companies understand
the principles and core elements of responsible business practices and start implementing improvements
which reflect their adoption in the manner the company undertakes its business.

ITC Limited is a FMCG Company and an abstract of its Business Responsibility Report for financial year
2018-2019 is as follows:

Business Responsibility Report

The Directors present the Business Responsibility Report of the Company for the financial year ended on
31st March 2019 pursuant to Regulation 34 (2)(f) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. The Company also publishes annually, a comprehensive Sustainability
Report, based on the Global Reporting Initiative (GRI) guidelines. The details on the aspects discussed in
this Report are available in the Company’s Sustainability Report. The Company’s Board approved
Sustainability Policies, ITC Code of Conduct

General Information

1. Corporate Identity Number (CIN) of the L16005WB1910PLC001985

Company:

2 Name of the Company: ITC Limited

3 Address of the Registered Office: Virginia House, 37 Jawahar Lal Nehru Road,
Kolkata 700 071
4 Website: www.itcportal.com
5 E-mail id: enduringvalue@itc.in
6 Financial Year reported: 2019-2020
7 Key products / services:
Businesses Products / Services
FMCG: Branded Packaged Foods Businesses (Staples,
 Snacks and Meals; Dairy and Beverages;
Confections); Apparel; Education and
Stationery Products; Personal Care Products;
Safety Matches and Agarbattis; Cigarettes,
Cigars, etc.
Hotels: Hoteliering
Paperboards, Paper & Packaging: Paperboards, Paper including Specialty Paper
& Packaging.

: Agri-commodities such as soya, spices,

Agri Business. coffee and leaf tobacco

8 Locations where business activities are The Company’s businesses and operations are
undertaken by the Company: spread across the country. Details of plant
locations, hotels owned / operated by the
Company, are provided in the section,
‘Shareholder Information’, in the Report and
Accounts.
9 Markets served by the Company: ITC’s products and services have a national
presence and several products are exported.
10 Subsidiary companies and their BR The Company has 25 subsidiaries, including
initiatives: 10 subsidiaries outside India as on 31st March
2016. The subsidiary companies define their
own initiatives based on their specific context
whilst having access to information and
expertise residing with the parent company

List of CSR activities in which expenditure has been incurred:

Areas listed under Schedule – VII to the ITC’s interventions (including through Trusts
Companies Act, 2013 established by the Company)
Eradicating hunger, poverty and malnutrition, Health & Sanitation, Drinking Water and
promoting health care including preventive health Eradicating Poverty
 care and sanitation including contribution to the
Swachh Bharat Kosh set-up by the Central
Government for the promotion of sanitation and
making available safe drinking water.
Promoting education, including special education Education, Vocational Training, Livestock
and employment enhancing vocation skills Development and generation of Livelihoods
specially among children, women, elderly, and the
differently abled and livelihood enhancement
projects.
Promoting gender equality, empowering women, Women Empowerment
setting up homes and hostels for women and
orphans; setting up old age homes, day care
centres and such other facilities for senior citizens
and measures for reducing inequalities faced by
socially and economically backward groups.

Q 3:Critically comment on the following with relevant example:

 UN Global Compact
 Caux Round Table
 ISO 26000

ANS 3- (A) UN Global Compact

• The UN Global Compact is the world's largest corporate sustainability ( corporate social responsibility)
initiative with 13000 corporate participants and other stakeholders over 170 countries.

• The UN Global Compact was announced by then UN Secretary-General Kofi Annan in an address to the
World Economic Forum on 31 January 1999 and was officially launched at UN Headquarters in New
York City on 26 July 2000.

About India

• The Global Compact Network (GCN) India was formed by organizations from India who participate in
the Global Compact. It was registered on 24 November 2003, with Registrar of Societies, NCT, Delhi, as
a non-profit body. The main objective of the Network is to provide a forum to various Indian Companies/
Organizations to exchange experiences, network and work together on activities related to CSR. This is
expected to promote sustainable growth besides encouraging good corporate citizenship
The Ten Principles of the United Nations Global Compact are derived from:

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human
rights; and

Principle 2: make sure that they are not complicit in human rights abuses.

Labour

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right
to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective
abolition of child labour; and

Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8:

undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

(d) Caux Round Table (CRT)

• In a world which is experiencing profound transformation, the Caux Round Table of business leaders
from Europe, Japan and the United States is committed to energizing the role of business and industry as
a vital force for innovative global change.

• The Round Table was founded in 1986, as a means of reducing escalating trade tensions. It is concerned
with the development of constructive economic and social relationships between the participants'
countries, and with their urgent joint responsibilities toward the rest of the world.
• The Caux Round Table believes that the world business community should play an important role in
improving economic and social conditions. As a statement of aspirations, this document aims to express a
world standard against which business behavior can be measured.

The Seven Principles of the CRT are derived from:

• Principle 1. The Responsibilities of Businesses: The value of a business to society is the wealth and
employment it creates and the marketable products and services it provides to consumers at a reasonable
price commensurate with quality.

• Principle 2. The Economic and Social Impact of Business: Businesses established in foreign countries to
develop, produce or sell should also contribute to the social advancement of those countries by creating
productive employment and helping to raise the purchasing power of their citizens.

• Principle 3. Business Behavior: While accepting the legitimacy of trade secrets, businesses should
recognize that sincerity, candor, truthfulness, the keeping of promises, and transparency contribute not
only to their own credibility and stability but also to the smoothness and efficiency of business
transactions, particularly on the international level.

• Principle 4. Respect for Rules: To avoid trade frictions and to promote freer trade, equal conditions for
competition, and fair and equitable treatment for all participants, businesses should respect international
and domestic rules.

• Principle 5. Support for Multilateral Trade: Businesses should support the multilateral trade systems of
the GATT/World Trade Organization and similar international agreements.

• Principle 6. Respect for the Environment: A business should protect and, where possible, improve the
environment, promote sustainable development, and prevent the wasteful use of natural resources.

• Principle 7. Avoidance of Illicit Operations: A business should not participate in or condone bribery,
money laundering, or other corrupt practices: indeed, it should seek cooperation with others to eliminate
them. It should not trade in arms or other materials used for terrorist activities, drug traffic or other
organized crime

(b) ISO 26000

ISO 26000 is defined as the international standard developed to help organizations effectively assess and
address social responsibilities that are relevant and significant to their mission and vision; operations and
processes; customers, employees, communities, and other stakeholders; and environmental impact.

The seven key underlying principles of social responsibility:

 Accountability
 Transparency
 Ethical behavior
 Respect for stakeholder interests
 Respect for the rule of law
 Respect for international norms of behavior
 Respect for human rights

The seven core subjects and issues pertaining to social responsibility:

 Organizational governance
 Human rights
 Labour practices
 The environment
 Fair operating practices
 Consumer issues
 Community involvement and development

In addition to providing definitions and information to help organizations understand and address social
responsibility, the ISO 26000 standard emphasizes the importance of results and improvements in
performance on social responsibility. Organizations in the private, public, and nonprofit sectors, whether
large or small, and whether operating in developed or developing countries, use ISO 26000. All of the
core subjects of social responsibility are relevant in some way to every organization.

ISO 26000's aims are to:

 Assist organizations in addressing their social responsibilities while respecting cultural, societal,
environmental, and legal differences and economic development conditions.
 Provide practical guidance related to making social responsibility operational.
 Assist with identifying and engaging with stakeholders and enhancing credibility of reports and
claims made about social responsibility.