An overview of CSR | Towards achieving the UN’s SDGs
Sustainability has been a top priority for companies and organizations across the Globe in recent years. And rightfully so - how we currently produce and consume goods and services is not sustainable in the long run. But what exactly is sustainability? The United Nations define it as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." In other words, sustainability is about meeting our current needs without sacrificing the ability of future generations to do the same. But how can we achieve this? Well, one approach is through Corporate Social Responsibility (CSR). CSR is a term used to describe the voluntary actions taken by a company to improve society in some way. Typically this includes environmental protection, human rights, philanthropy, and workplace practices. Here, we will explore CSR and how it relates to the United Nations' Sustainable Development Goals (SDGs). We will also see how some companies are already taking steps to implement CSR into their business models and what impact this is having.
What is CSR?
Corporate social responsibility (CSR) is a company’s commitment to operating ethically and sustainably. It includes taking into account the impact of its business activities on employees, suppliers, communities, and the environment.
The United Nations Sustainable Development Goals (SDGs) are 17 goals that member states have committed to achieving by 2030. The SDGs cover a range of issues like poverty, hunger, health, education, gender equality, water, sanitation, energy, climate change, and peace and justice.
Businesses play a critical role in achieving the SDGs. “The private sector is not only essential to ending poverty and boosting shared prosperity; it is also indispensable to tackling climate change and ensuring that no one is left behind as we move toward a more sustainable future for all.” - Ban Ki-moon, former UN Secretary-General, 2007-2016
There are numerous ways businesses can contribute to the SDGs. For example, they can develop products and services that help address specific goals; can engage in responsible sourcing practices; promote gender equality; can invest in renewable energy, and reduce their environmental impact.
In short, CSR is about how companies integrate responsible practices into their business operations to create positive social and environmental impacts. And the UN’s SDGs provide a framework for businesses to guide their CSR efforts.
What are the UN's SDGs?
The United Nations Sustainable Development Goals (SDG) are 17 goals adopted by all United Nations Member States in 2015. The SDGs cover sustainable development topics, including poverty, hunger, health, education, climate change, gender equality, water, sanitation, energy, environment and social justice.
The UN's SDGs are:
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
10. Reduce inequality within and among countries?
11. Make cities and human settlements inclusive, safe, resilient and sustainable?
12. Ensure sustainable consumption patterns?
13. Take urgent action to combat climate change and its impacts?
14 Conserve ocean life with a particular focus on marginalized communities?
15 protect terrestrial ecosystems and safeguard mountain ecosystems and sustainably manage forests, & combat desertification, halt and reverse land degradation, and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development
17. Strengthen the means of implementation and revitalize the Global Partnership for sustainable development
The Companies Act, 2013
The Government of India has been working on various fronts to operationalize the CSR provisions of the Companies Act of 2013. The Ministry of Corporate Affairs (MCA) released the Companies (Corporate Social Responsibility Policy) Rules in 2014 and amended them in April 2016.
As per the rules, certain classes of profitable companies are required to spend, in every financial year, at least 2% of their average net profits made during the three immediately preceding financial years on CSR activities. The activities undertaken by companies must fall within the ambit of Schedule VII of the Companies Act, 2013.
It is also important to note that earlier companies could use up to 5% of the CSR funds, or 50 lakhs, whichever is less, for impact assessments. The 2022 amendment has reduced this percentage to 2% or 50 lakhs, whichever is higher. The amendment does permit more impact assessment spending in the event of substantial CSR projects.
领英推荐
The government has also set up a National Foundation for Corporate Governance (NFCG) to promote good corporate governance practices among Indian companies. The foundation will develop and disseminate knowledge on corporate governance, undertake research, facilitate capacity building and promote best practices.
CSR Committee Requirements
The Ministry of Corporate Affairs has issued guidelines on CSR that provide further details on the scope and implementation of CSR activities by companies.
To establish a CSR Committee, a company must have
-A board resolution approving the establishment of the CSR Committee;
-At least three directors on the committee, with at least 1 being an independent director;?
-For companies which are not required to appoint an independent director, CSR Committee is to consist of 2 or more directors
The Guidelines also specify that "The Board’s Report and company’s website must display CSR details in a predefined layout prescribed as per the particulars specified in Annexure to the Companies (CSR Policy) Rules, 2014."
Challenges of CSR
India is the first country in the world to make it a law to implement CSR for companies that meet the criteria. While this is great for achieving results and having a structure to work within, there are challenges too.
Following are some of the challenges corporates today face:
Recruitment agencies like Alp Consulting, with their 25+ years of expertise, come in handy here, with their connections with a network of reliable NGOs and a great deal of experience in helping shape the CSR activities of corporates.
An Example of CSR Goals
The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. They recognize that ending poverty must go hand-in-hand with strategies that build economic growth and address social needs like education, health, social protection, and job opportunities while tackling climate change and environmental protection.
As part of their commitment to the SDGs, companies are working to increase access to clean water and sanitation, promote gender equality, reduce inequality, combat climate change, and more. Here is an example of ambitious targets set by a company across its operations, to help achieve these goals include:
- Zero emissions in the company’s operations by 2030?
- Deforestation-free supply chain in palm oil, paper and board, tea, soy and cocoa by 2023
- Take action through our brands to improve health and well-being and advance equity and inclusion, reaching 1 billion people per year by 2030.?
- Achieve an equitable and inclusive culture by eliminating any bias and discrimination in our practices and policies
- Help equip 10 million young people with essential skills by 2030
- Halve the greenhouse gas impact of products across the lifecycle by 2030?
- Purchase 100% renewable electricity by 2030?
Partnering with NGOs and CSR service providers
In many cases, companies also work with partners to help achieve these goals. For example, some have partnered with WaterAid to provide clean water and sanitation to communities in need; some with The Nature Conservancy to plant trees and restore forests, some with CARE International to empower women through economic opportunities, and some with the Climate Group’s RE100 initiative to switch to renewable electricity.
Companies like Alp Consulting, among others, help companies maximize the efficiency of CSR activities with its network of reliable NGOs and its expertise in providing CSR services to corporates for years.
Businesses partnering with the right organizations working to achieve similar goals is a step in the right direction. For example, organizations that work in environmental sustainability, poverty alleviation, or human rights can be great partners for businesses that have selected these areas as their areas of contribution. These partnerships help companies effectively use their resources to make a difference.?
Another example is - A business with goals of reducing deforestation could partner with other NGOs and organizations working to reduce deforestation. They could then provide financial support or donate products that help the organizations and NGOs to achieve their goal. Partnering with other organizations is one of the effective ways to support the UN’s SDG.?
There are many other ways businesses can get involved, such as through employee volunteering, responsible supply chain management, or sustainable product development.
Conclusion
Corporate social responsibility (CSR) has become increasingly important in recent years, as businesses have come under fire for their negative impact on society and the environment. The UN's Sustainable Development Goals (SDGs) provide a framework for businesses to operate responsibly and contribute to the global effort to improve the planet. Here, we have provided an overview of CSR and the UN SDGs, and how businesses can use these goals to guide their efforts to be more sustainable. We hope this information has helped with tips that can make the world a better place. We are always open to discussing new CSR strategies and possible implementation methods. Get in touch with us to take CSR to the next level.
Process Specialist
2 年??