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Global CSR Reporting StandardsGroup 8 Section CAsif Hussain 13P132Chirag Nepalia 13P137Prabudh Jain 13P155Raman Mahajan 13P160Rochak Mathur 13P163Tarush Baldhi 13P178

Table of ContentsBefore the UN Global CompactUNGCGlobal Compact Network IndiaCase Study - TataUN GLOBAL COMPACT, 1999

ReasonsMr. Kofi Anan, ex-UN General SecretaryWays to implement itContinued.Code of Conduct Contd..UN Global CompactUN Global CompactA policy framework and a practical framework for companies that are committed to sustainability and responsible business practicesSeeks to align business operations and strategies everywhere with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruptionWhat is it?AIMMainstream the ten principles in business activities around the worldCatalyze actions in support of broader UN goals, including the Millennium Development Goals (MDGs)Complimentary ObjectivesIt is not a regulatory instrument, but rather a voluntary initiative that relies on public accountability, transparency and disclosure.UNGC Fact SheetOffice of the High Commissioner for Human Rights (OHCR)ILOUNODCUNDPUNIDO UNIFEM8000 corporate participants140 countries101 local networksSupporting UN institutionsThe Ten Principles of UN Global Compact (1/2)

LabourPrincipal 1: RESPECT and supportthe protection of internationally proclaimed human rights

Principal 2: ENSURE that they are not complicit in human rights abusesPrincipal 3: SUPPORT freedom of association and recognize to open collective bargaining

Principal 4: ELIMINATE all forms of forced and compulsory labour

Principal 5: ABOLISH all forms of child labour effectively

Principal 6: ELIMINATE discrimination in respect of employment and occupationThe Ten Principles of UN Global Compact (2/2)Principal 7: SUPPORT a precautionary approach to environmental challenges

Principal 8: DEVELOP initiatives to promote greater environmental responsibility

Principal 9: PROMOTE the development and diffusion of environmentally friendly technologiesPrincipal 10: FIGHT corruption in all of its forms including extortion and bribery

EnvironmentAnti-CorruptionBenefits of ParticipationParticipation in UN Global CompactMake its principles an integral part of business strategy, day-to-day operations and organizational cultureIncorporate its principles in the decision-making process of the highest level governance bodyEngage in partnerships to advance broader development objectivesIntegrate in its annual report a description of the ways in which it implements the principles and supports broader development objectivesAdvance responsible business practices through advocacy and active outreach to stakeholdersCorporate CommitmentSends a letter signed by the chief executive to the Secretary-General of the UN, expressing support for the Global Compact and its principlesComplete the online registration form on its website and uploads a digital copy of chief executives letter of commitmentMethod of JoiningFinancial ContributionsAnnual Sales/RevenueSuggested Contribution>= USD 1 billionUSD 10,000USD 250 million USD 1 billionUSD 5,000< USD 250 millionUSD 500Maximizing EngagementAmsterdam Declaration and ISO 26000Amsterdam Declaration on Transparency and Reporting, 2009Adopted by the Board of the Global Reporting InitiativeAsks governments to introduce policies on reporting on ESG performance by companies (environmental, social and governance) or explain why companies have not done soMr. Kishor A Chaukar, MD, Tata Industries, was a director on the board

GRI promotes the use of sustainability reportingThe Framework proposed by GRI (which includes the Reporting Guidelines, Sector Guidance and other resources) enables greater organizational transparency and accountability

ISO 26000It is an offer, voluntary in use, and encourages organizations to discuss their social responsibility issues and possible actions with relevant stakeholdersSustainability can be targeted by either legislation or complete freedom; ISO 26000 is like a middle pathIt promotes respect and responsibility based on known reference documents without stifling creativity and development

Its a guideline, not a requirement standard; hence it cant be certifiedNoteUNGC The Indian Context UNGC IndiaGlobal Compact Network India (GCNI) is a platform, for businesses, private sector organizations, civil society organizations public sector and institutionsTimeline for local ChaptersObjectiveTo expand and extend the Global Compact Movement in India and scaling up of the efforts to bring together the organizations, companies and corporate on a platform to facilitate mutual sharing and learningIt is a platform to display commitment to CSR nationally and internationally

GCNI InitiativesIndia CEO forum on Human Rights, Women Empowerment PrinciplesNational ConventionMonthly meetingsLecturesEthical Corporate Governance projectThe UNGC Collective Action Project was launched in five countries, Nigeria, South Africa, Brazil, Egypt and India

UNGC Collective Action ProjectRoad map to increase awareness on anti-corruption strategies among key stakeholders in IndiaThe project activities include research study, seminars, workshops, and national and stakeholder consultations.StructureGoverning Council elected every two years by membersThe Governing Council members include President, Vice Presidents representing four regions (North, South, East, West), Treasurer, Secretary, co-opted members and special invitees.GC meets in practice once every four months, in a meeting convened by the SecretaryGoverning CouncilAdministration CommitteeMeets six times a year or as the need may be.Council Representatives fromCoal India, EIL, M&M, JSW, BHEL, IOCL, SAIL, TCS, CII, FICCI, AIMACurrent PresidentMr. Sudhir VasudevaChairman & MD, ONGCReporting by GCNI to UNGCAchievements are reported to the UNGC on an annual basis to through the report on Communication of Progress (CoP). It contains:A measurement of outcomes and the results that have been achievedExpressing continuous support to the initiative and the principles of the Global CompactDescription of actions taken by the company to implement the Global Compact principles in the areas of human rights, labor, environment, anti-corruptionMembership FeesMembership CategoryEntrance fees (inRs.)Annual Fees (inRs.)Lifetime Membership (inRs.)1CorporateMembersUptoRs.500Crores inthe precedingyear25,000250002,50,0002Above ` 500 Crores50,00050,0005,00,0003SME Members10,00010,0001,00,0004Institutional Members10,00010,0001,00,0005NGO Members10,00010,0001,00,000Source: Global Compact India Website

Some members of GCNICritique of UNGCLow level of monitoring and enforcementNo mechanism to issue sanctions against non-compliant organisationsMembership is based on money paid and not deedsAdmission of companies with questionable human rights recordsResult MNCs can use the image of UN for PR purposesBarrick Gold, the Canadian mining giant joined the Global Compact in 2005Violated human and environmental violations in Papua New Guinea and TanzaniaAdditionally, Barrick Gold was fined for USD 16 million for environmental violations in the Chilean-Argentinean border region.ExampleCase Study - TataLet industry established in the countryside adopt villages in its neighbourhood. It is clearly in its interests that the surrounding areas be healthy, prosperous and peaceful.J.R.D. TataI believe that the Tata Group has long held the view that our companies are not in existence just to run our businesses and make profits, but that we are responsible and good corporate citizens over and above our normal operations.Ratan TataFounders VisionCarried Forward Even Today

Group companies are encouraged to:

Demonstrate responsibility and sensitivity to biodiversity and the environment in which they operate

Comply with regulations relating to environment

Apply state-of-the-art processes to comprehensively address larger issues of climate change and global warming

Continually illustrate performance in preventing pollution, ensure the optimum use of resources, and minimise harmful impacts of products and production processes throughout the supply chain

Create sustainable livelihoods and build community outreach programmes in health, education, empowerment of women and youth, employee volunteering, that can be measured in terms of their having more lasting benefits, serving a larger national or regional purpose, and also making it more meaningful to all involved in the endeavourGroup CSR Policy

TATA Code of Conduct- Mandates good governance and ethical behaviour by organisations and employees

TATA Council for Community Initiatives- Provides the superstructure for CSR efforts across the group

First signatory of the UN Global Compact

Founder-Member of the Global Business Coalition on HIV/AIDS

Member of the Global Reporting Initiative Board- First Indian Company to publish a CSR report as per GRI guidelinesGroup CSR Policy- Implementation

Source: TCCI, Feb 2008Tata Corporate Sustainability Leadership Profile: Process of Deployment

Climate change incorporated as an area of emphasis in the Tata Business Excellence Model (TBEM) assessment

100% treatment of waste water, discharged it from the point of collection

Thousand Trees for Thousand Days- Millennium gift for future generations, resulted in 1.6mn trees being planted

Significant reduction in raw material consumption

All production units, town services certified to ISO:14001 Environment Management StandardsSustainable Business StrategiesExtrasInteresting ReadsThe UN Global Compact-Accenture CEO Study on Sustainability 2013Anti corruption guidance material UNGC websiteGCNI Annual Report, 2012-13Tata Council for Communities Initiative

Questions to the classHow can UNGC impose sanctions in its current state?How can GCNI work with the government to efficiently use the opportunity provided by the New Companies Act?Should MDI be a part of it? - Xavier Institute of Management and Entrepreneurship is.

Thank You!