National Foundation for Corporate Social Responsibility (NFCSR)

National Foundation
for Corporate Social
Responsibility (NFCSR)

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The Vision

Corporate Social Resposibility: From Philanthropy to Sustainable
Business Growth & Development





The Mission

The National Foundation for Corporate Social Responsibility (NFCSR) would help build an enabling environment for the corporate sector to work in partnership with the Government, Non-Government and Civil Society Organizations, as well as local community organizations for effective contribution towards sustainable growth and development.

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National Foundation for Corporate Social Responsibility (NFCSR)

Introduction

Corporate Social Responsibility (CSR) is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. It is infact a concept whereby companies integrate social, environmental and economic concerns in their business operations and interaction with their stakeholders on a voluntary basis.
The Ministry of Corporate Affairs along with the Indian Institute of Corporate Affairs has been making efforts to mainstream the adoption of responsible governance practices by the corporate sector and had released the National Voluntary Guidelines on CSR in 2009 as a step in this direction. Although there is a growing consciousness in the area of CSR among the Indian Companies, there is a need to bring all the actors – governments, corporate sector, civil society and other stakeholders – together so that they can collaborate to make a significant impact towards the national goal of inclusive growth and development establish a national platform which can function as such an enabler. Such a platform also needs to have the commitment of the government, the professional practitioners and the trade and industry chambers.
Therefore, the Indian Institute of Corporate Affairs (IICA) has established the

National Foundation for Corporate Social Responsibility (NFCSR)


Indian Institute of Corporate Affairs (IICA):

IICA has been established by the Indian Ministry of Corporate Affairs as a think tank, service delivery, policy advisory and capacity building institution in various subjects and matters relevant to corporate regulation and governance such as corporate and competition law, accounting and auditing issues, compliance management, corporate governance, business sustainability through environmental sensitivity and social responsibility, e-Governance and enforcement etc. The Institute has been designed with an eye on the future to provide a platform for dialogue, interaction and partnership between governments, corporate, investors, civil society, professionals, academicians and other stake holders in the emerging 21st century environment.
One of the major objectives of IICA as per its Memorandum of Association is to developm a dynamic and institutionalised platform for collective thinking and action by Government, corporates and NGOs etc. Also the society is supposed to promote inclusive growth and encourage socially and environmentally reponsible enterprises.
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The overall mission of the Foundation is to help create a national platform for the corporate sector to work in partnership with the Government, Non-Governmental and Civil Society Organizations and local community organizations and to work together in the field of CSR. The foundation will have an independent governing structure, managed on a day-to-day basis by a Secretariat. The Foundation will be housed in the Indian Institute of Corporate Affairs (IICA).

The main objective of this foundation shall be:


  1. To provide a strong, independent, neutral and credible platform to corporate sector, Central and State Government, Local Authorities, Civil Society Organizations etc. engaged in CSR good Practices to advocate and capture issues relating to CSR as the key to sustainable business;
  2. To stimulate and to facilitate exchange of experiences and ideas between corporate leaders, policy makers, regulators, law enforcing agencies, non government organizations and voluntary agencies with a view to developing a framework for CSR reforms in the context of liberalization and globalization;
  3. To provide research, training, practice, capacity building, standard setting, advocacy, rating, monitoring, recognition and related support in the field of CSR.
  4. To facilitate any other assistance directly or indirectly for activities which seek to promote CSR practices including research and training.
  5. To develop strategies that enhances value for all stakeholders and ensure long term benefits to the shareholders and the society at large;
  6. To establish and deepen links with organizations in various parts of the world which promote CSR practices for exchange of ideas and for collaborative actions, and programs;
  7. To collaborate and to support, directly or indirectly, the initiative of any individual, group, organization or institution in promoting good practices in CSR;
  8. To prepare, print and publish any papers, periodicals or newspapers, books or leaflets either on its own or in collaboration with other persons/entities through print or other media and to contribute to any papers or periodicals to disseminate information and knowledge in the area of CSR;
  9. To provide advice, consultancy and technical and managerial support to the beneficiaries of the Foundation programs through a network of advisors drawn from the industry and institutions of excellence;
  10. To establish a database of credible civil society organizations with whom the government organizations, the corporate entities as well as the donor organizations can work and collaborate.
  11. To do exploratory and descriptive research to get insight into the current situation of selected industry and to find possible ways of developing strategies with a focus on CSR initiatives to survive the globalization process etc.
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Activities of the Foundation


The Foundation during the initial founding phase, would focus on the following critical activities and functions. The activities and programs would evolve over a period and the Steering Committee and the Advisory Board will guide this evolution.

  • Outreach and Communications: Undertaking large scale outreach and strategic communication to raise awareness on Corporate Social Responsibility and more importantly the potential CSR has to contribute to sustainable and inclusive growth in India.
  • Conferences/workshops: working through partners in India and internationally, the Foundation would organize conferences/workshops to discuss/share key CSR concepts, engage stakeholders in policy dialogue, disseminate policy notes and research papers based on domestic and international best practices.
  • Networking: developing a virtual network that brings together all stakeholders and partners in the CSR space.
  • Undertaking Research to conduct research and studies to explore the current situation and developing strategies with a focus on CSR.
  • Establishment of a Centre for Sustainability to prepare the guidelines for Sustainable development and reporting
  • Building a credible database establishing a database of credible civil society organizations with whom the government organizations, the corporate entities as well as the donor organizations can work and collaborate.
  • Building a credible database of best CSR Practices
  • Publishing a biennial National Compendium of CSR which would contain, inter-alia, a CSR survey, essays by thought leaders and CSR resources.
  • Building a credible index and/or rating system in CSR
  • Sensitizing thought leaders, public representatives and other stakeholders to the evolving needs and perspectives of CSR/Sustainability.
  • Instituting the “National awards for best practices in CSR” in the country
  • Any other activity as decided by the Foundation
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Working Partners of the Foundation

The NFCSR would therefore work with a range of actors. These include:

  • Corporate and business entities that are already undertaking activities in the area of Corporate Social Responsibility as well as those which are keen to take up future programs and acquire knowledge from Indian and international experience on possible CSR activities.
  • International organisations operating out of India that that have a rich and credible name in working in the field of CSR.
  • Ministries, Departments of Central Goverrnment, State and local governments who will gain over a period of time the experience necessary to work with corporate partners and facilitative agents for CSR.
  • Sub-national, state, district and sub-district level institutional structures engaged in developmental initiatives of the country.
  • NGOs, Community organizations, NGO networks and service providers that would acquire knowledge on how best to provide quality services with a results- based framework.
  • Community and Community based organizations established in different segments of society at the local level.

Structure of the Foundation

In order to effectively execute the policies and programs, NFCSR will have a sound internal governance structure capable of delivering the intended outcomes. It will have a STEERING COMMITTEE consisting of 8 members which will be chaired by DG & CEO, IICA. The members of the Steering Committee will be nominated by the Governing Body of IICA in consultation with DG & CEO, IICA. The members shall be drawn from:

  • Civil Society Organisations
  • Chamber of Commerce and Industry
  • Professional Institutes
  • Corporate Sector
  • National/reputed academic institutes

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The terms of the selected members of the committee will be 2 years renewable by one more term at the discretion of the Chairman, Steering committee.

  • The Chairman of the Committee would have the discretion to coopt other members as and when required. Such co-opted members may include representatives of Government, Local Government, Corporate, NGOS and anyone who has made substantial contribution to the foundation.
  • The Steering committee should meet preferably twice a year.

The functions of the Steering Committee shall include:-

  1. To establish, equip, maintain and operate all administrative functions, directly or indirectly, as may be necessary or deemed expedient for fulfilling the objects of the Foundation.
  2. To cooperate and/or collaborate with, afford financial assistance to or otherwise assist in any work of any foundation, agency, association or institution or any other Steering Committee having objects similar to those of the Foundation.
  3. To publish and disseminate information about the objects and achievements of the Foundation and the information, knowledge, experience and results received or gained by the Foundation in pursuing its objects.
  4. To convene, organize and sponsor conferences, congresses, colloquia, working group, lectures, courses, study trips, training programmes and seminars at such places and at such times as may be determined to promote the objects of the Foundation.
  5. To organize, conduct and/or participate in national and international conferences, seminars etc. to promote the objects of the Foundation.
  6. To accept contributions (as corpus or otherwise) from industry associations, professional institutions, philanthropic organizations, multi-lateral international organizations for pursuing the objects of the Foundation.
  7. To invest in instruments, as prescribed by regulations, and deal with funds and moneys of the Foundation consistent with the activities and requirements of the Foundation and as permissible in law particularly under the Income Tax Act and/ or Income Tax Rules or any other applicable legislation for the time being in force and to vary, alter or to transpose or sell/recall such investments from time to time.
  8. To help create a corpus fund and to help open and operate bank accounts and to draw, make, accept, endorse, discount, negotiate, execute and issue bills of exchange, promissory notes and other negotiable or transferable instruments or securities.
  9. To engage advisers, consultants and research scholars as per the regulations of the Society for all or any of the purposes of the Foundation.
  10. To frame Regulations, to carry out the objects of the Foundation and for managing the affairs of the Society and otherwise for giving effect to the objects and purposes of the Society and to amend the Regulations from time to time as deemed fit.
  11. To undertake any other activity as and when need arise and to formulate any other rules governing the functioning of the Foundation.

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Notices

Every notice calling a meeting of the Steering Committee shall state the agenda, date, time and place at which such meeting will be held and such notice shall be sent to every member not less than a week before the day appointed for such meeting.

Quorum

The quorum for the meetings shall be a minimum of 3 members of the Steering Committee with the meeting being presided over by the Chairman.
The NFCSR will also have an ADVISORY GROUP which will have around 15 to 20 members. Advisory Group will be chaired by DG & CEO, IICA.

  1. The Advisory Group will comprise members who are thought leaders in the field of CSR and Corporates.
  2. The Chairman of the Advisory Group would have the discretion to coopt other members as and when required. Such co-opted members may include representatives of Government, Local Government, Corporate, NGOS and anyone who has made substantial contribution to the foundation.
  3. When any of the first members from institutional members retire or for any other reason steps down from their respective position, he/she shall automatically cease to be a Member of the Group.
  4. In the event of the Chairman not being able to attend a meeting, the members present may decide as to which member should chair the meeting.
  5. The Advisory Group should meet preferably twice a year.

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Staffing and HR

The IICA would provide the internal support to NFCSR activities and implement the decisions of the Steering Committee and Advisory Group.


Finance, Accounts and Audit

  1. The funds of the Foundation shall come from endowments and the grants made by or through the Central or any State Government, founding partners, return on investment, donations and contributions from other sources, fees collected from the participants for imparting training, Chairs created by donors, Corpus created by the Foundation out of its funds, research work, consultancy charges, publications, investments etc.
  2. NFCSR may have an independent bank account and would maintain its own books of account. But ultimately the accounts of NFCSR will consolidate with IICA. Any surplus or deficit will be to the accounts of IICA.
  3. The income of the Foundation shall be utilized for the promotion of its objectives and no part shall be distributed among its members in any form whatsoever.
  4. Moneys forming part of the funds of the Foundation shall be deposited in banks approved by the Board and surplus funds invested in a manner as prescribed by the Steering Committee.
  5. No portion of the income and property of the Foundation shall be paid or transferred, directly or indirectly, by way of dividends, bonus, or otherwise howsoever by way of profit to any institutions/persons who any time are or have been members of the Foundation or any of them, provided that nothing herein contained shall prevent the payment in good faith of remuneration to any member thereof or other persons in return for any services rendered to the Foundation.
  6. The Advisory Group shall cause proper Books of Accounts to be maintained and kept in respect of all sums of money received and expended by the Foundation and the matters in respect of which income and expenditure takes place and of the assets and liabilities of the Foundation. The financial accounts of the foundation shall be completed within three months of the close of the year. The financial year of the Foundation shall be from April to March.
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