VIDYALANKAR INSTITUTE OF TECHNOLOGY

MMS 1ST YEAR

Government Regulations For Corporate Social Responsibility &

Corporate Social Responsibility Trends

CHANAKYA (2013-2015)
Prof. Smita Mukharjee

Group Members

Roll No.

Pratik Kitlekar

Harshal Patil

14

Ajinkya Sawant

24

Mahesh Jagdale

34

Prasad Tarkar

44

Index
Sr No.

Topic

Page No.

Introduction

Evolution of CSR in India

Phases of CSR Development in India

Current Stage Of CSR In India

Regulation of CSR

Trends Of CSR

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INTRODUCTION OF CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility Is A Form Of Corporate Self-Regulation Integrated Into A
Business Model. CSR Policy Functions As A Built-In, Self-Regulating Mechanism Whereby
Business Monitors And Ensures Its Active Compliance With The Spirit Of The Law, Ethical
Standards, And International Norms. The Goal Of CSR Is To Embrace Responsibility For The
Company's Actions And Encourage A Positive Impact Through Its Activities On The
Environment, Consumers, Employees, Communities, Stakeholders And All Other Members Of
The Public Sphere. Furthermore, CSR-Focused Businesses Would Proactively Promote The
Public Interest By Encouraging Community Growth And Development, And Voluntarily
Eliminating Practices That Harm The Public Sphere, Regardless Of Legality. CSR Is The
Deliberate Inclusion Of PI Into Corporate Decision-Making That Is The Core Business Of The
Company Or Firm, And The Honoring Of A Triple Bottom Line: People, Planet, and Profit.
The Term "Corporate Social Responsibility" Came In To Common Use In The Late 1960s And
Early 1970s, After Many Multinational Corporations Formed. The Term Stakeholder, Meaning
Those On Whom An Organization's Activities Have An Impact, Was Used To Describe Corporate
Owners Beyond Shareholders As A Result Of An Influential Book By R. Edward Freeman,
Strategic Management: A Stakeholder Approach In 1984. Proponents Argue That Corporations
Make More Long Term Profits By Operating With A Perspective, While Critics Argue That CSR
Distracts From The Economic Role Of Businesses. Others Argue CSR Is Merely WindowDressing, Or An Attempt To Pre-Empt The Role Of Governments As A Watchdog Over Powerful
Multinational Corporations.
CSR Is Titled To Aid An Organization's Mission As Well As A Guide To What The Company
Stands For And Will Uphold To Its Consumers. Development Business Ethics Is One Of The
Forms Of Applied Ethics That Examines Ethical Principles And Moral Or Ethical Problems That
Can Arise In A Business Environment. ISO 26000 Is The Recognized International Standard For
CSR (Currently A Draft International Standard). Public Sector Organizations (The United
Nations For Example) Adhere To The Triple Bottom Line (TBL). It Is Widely Accepted That
CSR Adheres To Similar Principles But With No Formal Act Of Legislation. The UN Has
Developed The Principles For Responsible Investment As Guidelines For Investing Entities.

Evolution Of Corporate Social Responsibility In India

CSR In India Has Traditionally Be Seen As A Philanthropic Activity. And keeping with the Indian
Tradition, It Was an Activity That Was Performed but not deliberated. As A Result, There Is
Limited documentation On Specific Activities Related to This Concept. However, What Was
Clearly Evident That Much of This Had a National character encapsulated within It, Whether
It Was Endowing Institutions to Actively participating In Indias Freedom Movement And
embedded In The Idea Of Trusteeship .As Some Observers Have Pointed Out, The practice Of
CSR In India Still Remains Within the Philanthropic Space, But Has Moved From institutional
Building (Educational, Research and Cultural) To Community Development Through Various
Projects. Also, With Global influences And With Communities Becoming More Active And
Demanding, There Appears to Be A Discernible Trend, That While CSR Remains Largely
Restricted To Community development, It Is Getting More Strategic In nature (That Is, Getting
Linked With Business) Than Philanthropic, And A Large Number Of companies Are Reporting
The Activities They are Undertaking In This Space In Their Official Websites, Annual Reports,
Sustainability reports And Even Publishing CSR Reports.
The Companies Act, 2013 has introduced the Idea Of CSR To The Forefront And through Its
Disclose-Or-Explain Man date, Is Promoting Greater Transparency And disclosure. Schedule VII
of the Act, Which lists Out the CSR Activities, Suggests communities To Be the Focal Point. On
The other Hand, By Discussing a Companys relationship To Its Stakeholders and integrating
CSR into Its Core Operations, The Draft Rules Suggest That CSR Needs to Go beyond
Communities and beyond the Concept of Philanthropy. It Will Be interesting To Observe The
Ways In Which This will Translate Into Action At The Ground level and How The Understanding
Of CSR Is Set A Change. The Evolution Of Corporate Social Responsibility In India Refers To
Changes Over Time In India Of The Cultural norms Of Corporations' Engagement Of Corporate
Social Responsibility (CSR), With CSR Referring To Way That businesses Are Managed To
Bring About An Overall Positive Impact On The Communities, Cultures, Societies And
environments In Which They Operate. The Fundamentals Of CSR Rest On the Fact That Not
Only Public Policy But even Corporates Should Be Responsible Enough To Address Social
Issues. Thus Companies Should Deal With The challenges And Issues Looked After To a certain
Extent by The States.
Among Other Countries India Has One of The Most Richest Traditions Of CSR. Much Has Been
Done In Recent Years To Make Indian Entrepreneurs Aware Of Social Responsibility As An
Important Segment Of Their business Activity But CSR In India Has Yet To Receive Widespread
Recognition. If This Goal Has To Be Realised Then the CSR Approach Of Corporates Has To Be
In Line With Their Attitudes Towards Mainstream Business- Companies setting Clear Objectives,
Undertaking Potential Investments, Measuring And Reporting Performance Publicly.

The Four Phases Of CSR Development In India

The History Of CSR In India Has Its Four Phases Which Run Parallel To India's Historical
Development And In Different Approaches Towards CSR. However The Phases Are Not Static
And The features Of Each Phase may Overlap Other Phases.

The First Phase

In The First Phase Charity And Philanthropy Were The Main Drivers Of CSR. Culture, Religion,
Family Values And tradition And Industrialization Had An Influential Effect On CSR. In The PreIndustrialization Period, Which Lasted Till1850, Wealthy Merchants Shared A Part Of Their
Wealth With The Wider Society By Way Of Setting Up Temples For A Religious cause
.Moreover, These Merchants Helped The Society In Getting Over Phases Of Famine And
Epidemics By Providing Food From Their Go down And Money And Thus Securing An Integral
Position In The Society With The Arrival Of Colonial Rule In India From 1850s Onwards, The
Approach Towards CSR Changed. The Industrial Families Of The 19th Century Such As Tata,
Godrej, Bajaj, Modi , Birla, Singhania3/25/2014 Evolution Of Corporate Social Responsibility In
India - Wikipedia, The Free Encyclopaedia were Strongly Inclined Towards Economic As Well
As Social Considerations. However It Has Been Observed That their Efforts Towards Social As
Well As Industrial Development Were Not Only But Also The Driven By Selfless And religious
Motives But Also Influenced By Caste Groups And Political Objectives.

The Second Phase

In The Second Phase, During The Independence Movement, There Was Increased Stress On
Indian Industrialists To demonstrate Their Dedication Towards The Progress Of The Society. This
Was When Mahatma Gandhi Introduced the Notion Of "Trusteeship", According To Which The
Industry Leaders Had To Manage Their Wealth So As To Benefit the Common Man. "I Desire To
End Capitalism Almost, If Not Quite, As Much As The Most Advanced Socialist .But Our
Methods Differ. My Theory Of Trusteeship Is No Make-Shift, Certainly No Camouflage. I Am
Confident That It Will Survive All Other Theories." This Was Gandhi's Words Which Highlights
His Argument towards His Concept Of "Trusteeship". Gandhi's Influence Put Pressure on Various
Industrialists to Act towards building The Nation and Its Socio-Economic Development,
According To Gandhi, Indian Companies Were supposed To Be The "Temples Of Modern India".
Under His Influence Businesses Established Trusts for Schools And colleges And Also Helped in
Setting up Training and Scientific Institutions. The Operations of the Trusts Were Large lying
Line With Gandhi's Reforms Which Sought to Abolish Untouchability, Encourage Empowerment
Of Women And Rural Development.

The Third Phase

The Third Phase Of CSR (196080) Had Its Relation To The Element Of "Mixed Economy",
Emergence Of Public-sector Undertakings (PSU) And Laws Relating Labour And Environmental
Standards. During This Period The Private Sector Was Forced To Take A Backseat. The Public
Sector Was Seen As The Prime Mover Of Development. Because Of The Stringent Legal Rules
And Regulations Surrounding The Activities Of The Private Sector, The Period Was Described
As An "Era Of Command And Control". The Policy Of Industrial Licensing, High Taxes And
Restrictions On The Private Sector Led To Corporate Mal practices. This Led To enactment Of
Legislation Regarding Corporate Governance, Labour And Environmental Issues. Psu Were Set
Up By the State To Ensure Suitable Distribution Of Resources (Wealth, Food Etc.) To The Needy.
However The Public Sector was Effective Only To a Certain Limited Extent. This Led To Shift
Of Expectation From The Public To The Private Sector and Their Active Involvement In The
Socio-Economic Development Of The Country Became Absolutely Necessary. In 1965 Indian
Academicians, Politicians And Businessmen Set Up A National Workshop On CSR Aimed At
Reconciliation. They Emphasized Upon Transparency, Social Accountability And regular
Stakeholder Dialogues. In Spite Of Such Attempts The CSR Failed To Catch Steam.

The Fourth Phase

In The Fourth Phase (1980 Until The Present) Indian Companies Started Abandoning Their
Traditional Engagement with CSR And Integrated It Into A Sustainable Business Strategy. In
1990s The First Initiations Towards Globalization and Economic Liberalization Were
Undertaken. Controls And Licensing System Were Partly Done Away With Which gave A Boost
To The Economy The Signs Of Which Are Very Evident Today. Increased Growth Momentum Of
The economy Helped Indian Companies Grow Rapidly And This Made Them More
Willing{Gajare, R.S. (2014). A conceptual Study Of CSR Development In India. In D.B. Patil &
D.D. Bhakkad, Redefining Management practices And Marketing In Modern Age Dhule, India:
Atharva Publications (P. 152-154).} And Able To Contribute Towards Social Cause.
Globalization Has Transformed India Into An Important Destination In Terms Of production And
Manufacturing Bases Of Tncs Are Concerned. As Western Markets Are Becoming More And
more Concerned About And Labour And Environmental Standards In The Developing Countries,
Indian Companies who Export And Produce Goods For The Developed World Need To Pay A
Close Attention To Compliance With The international Standards.

Current Stage Of CSR In India

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As Discussed Above, CSR Is Not A New Concept In India. Ever Since their Inception,
Corporates Like The Tata Group, The Aditya Birla group, And Indian Oil Corporation, To Name
A Few, Have Been Involved In Serving The Community. Through Donations And Charity events,
Many Other Organizations Have Been Doing Their Part For The society. The Basic Objective Of
CSR In These Days Is To Maximize The companys Overall Impact On The Society And
Stakeholders. CSR policies , Practices And Programs Are Being Comprehensively Integrated by
An Increasing Number Of Companies Throughout Their Business operations And Processes. A
Growing Number Of Corporates Feel that CSR Is Not Just Another Form Of Indirect Expense
But Is Important For protecting The Goodwill And Reputation, Defending Attacks And increasing
Business Competitiveness. Companies Have Specialised CSR Teams That Formulate Policies,
Strategies And Goals For Their CSR Programs and Set Aside Budgets To Fund Them.
For Example, A More Comprehensive Method Of Development Is Adopted By Some
Corporations Such As Bharat petroleum Corporation Limited, Maruti Suzuki India Limited, And
Hindustan Unilever Limited. Provision Of Improved Medical And Sanitation Facilities, Building
Schools And Houses, And Empowering The Villagers And In process Making Them More SelfReliant By Providing Vocational Training And A Knowledge Of Business Operations are The
Facilities That These Corporations Focus On .Many Of The Companies Are Helping Other
Peoples By Providing them Good Standard Of Living. On The Other Hand, The CSR Programs
of Corporations like GlaxoSmithKline Pharmaceuticals Focus On The health Aspect Of The
Community. They set up health Camps in Tribal Villages Which Offer Medical Check-Ups And
treatment And Undertake Health Awareness Programs. Some Of The Non-Profit Organizations
Which Carry Out health And Education Programs In Backward Areas Are To A Certain Extent
Funded By Such Corporations. Also Corporates Increasingly Join Hands With NonGovernmental Organizations (Ngos) And Use Their Expertise in Devising Programs Which
Address Wider Social Problems.
CSR Has Gone Through Many Phases In India. The Ability To Make A Significant Difference
In The Society And improve The Overall Quality Of Life Has Clearly Been Proven By The
Corporates. Not One But All Corporates Should try And Bring About A Change In The Current
Social Situation In India In Order To Have An Effective And Lasting solution To The Social
Woes . Partnerships Between Companies, Ngos And The Government Should Be Facilitates
That A Combination Of Their Skills Such As Expertise, Strategic Thinking, Manpower And
Money To Initiate extensive Social Change Will Put The Socio-Economic Development Of
India On A Fast Track.

Proposed Draft Corporate Social Responsibility Rules

Under Section 135 Of The Companies Act, 2013
Guiding Principle
CSR Is The Process By Which An Organization Thinks About And Evolves Its Relationships
With Stakeholders For The Common Good, And Demonstrates Its Commitment In This Regard
By Adoption Of Appropriate Business Processes And Strategies. Thus CSR Is Not Charity Or
Mere Donations.
CSR Is A Way Of Conducting Business, By Which Corporate Entities Visibly Contribute To The
Social Good. Socially Responsible Companies Do Not Limit Themselves To Using Resources To
Engage In Activities That Increase Only Their Profits. They Use CSR To Integrate Economic,
Environmental And Social Objectives With The Companys Operations And Growth.
In Exercise Of The Powers Conferred Under Clause (O) And Clause (Q) Of Sub-Section 3 Of
Section 134 Read With Section 135 And Sub-Sections (1) And (2) Of Section 469 Of The
Companies Act, 2013 The Central Government Hereby Makes The Following Rules Namely:

PART I
1. Short Title And Commencement
1) These Rules May Be Called The Corporate Social Responsibility Rules, 2013.
2) They Shall Come Into Force On The Date Of Their Publication In The Official
Gazette And Shall Be Applicable From The Financial Year 2014-15.
2. Definition:
In These Rules, Unless The Context Otherwise Requires:(a) Act Means Companies Act, 2013;
(b) Corporate Social Responsibility Means Corporate Social Responsibility
(CSR) As Defined In Section 135 Of The Companies Act 2013;
(c) Ministry Means The Ministry Of Corporate Affairs;
(d) Net Profit For The Section 135 And These Rules Shall Mean, Net Profit Before Tax As
Per Books Of Accounts And Shall Not Include Profits Arising From Branches Outside
India.

(e) 2% CSR Spending Would Be Computed As 2% Of The Average Net Profits Made By The
Company During Every Block Of Three Years. For The Purpose Of First CSR Reporting
The Net Profit Shall Mean Average Of The Annual Net Profit Of The Preceding Three
Financial Years Ending On Or Before 31 March 2014.
(f) Reporting Will Be Done On An Annual Basis Commencing From FY 2014-15.
(g) Tax Treatment Of CSR Spend Will Be In Accordance With The IT Act As May Be
Notified By CBDT.
(h) Words And Expressions Used In These Rules And Not Defined Herein But Defined In
The Act Shall Have The Meaning Respectively Assigned To Them In The Act.

PART II
Operating Provisions Of The Rules
1. CSR Activities May Generally Be Conducted As Projects Or Programs (Either New Or
Ongoing) Excluding Activities Undertaken In Pursuance Of The Normal Course Of Business Of
A Company. The CSR Committee Constituted Under Sec. 135(1), Shall Prepare The CSR Policy
Of The Company Which Shall Include The Following:
a) Specify The Projects And programmers That Are To Be Undertaken.
b) Prepare A List Of CSR Projects/programs Which A Company Plans To Undertake During
The Implementation Year , Specifying Modalities Of Execution In The Areas/Sectors
Chosen And Implementation Schedules For The Same.
c) CSR Projects/ Programmes Of A Company May Also Focus On Integrating Business
Models With Social And Environmental Priorities And Processes In Order To Create
Shared Value.
d) CSR Policy Of The Company Should Provide That Surplus Arising Out Of The CSR
Activity Will Not Be Part Of Business Profits Of A Company.
e) CSR Policy Would Specify That The Corpus Would Include The Following: A. 2% Of
The Average Net Profits, B. Any Income Arising Therefrom C. Surplus Arising Out Of
CSR Activities.

2. The CSR Committee, Shall Prepare A Transparent Monitoring Mechanism For Ensuring
Implementation Of The Projects / programs / Activities Proposed To Be Undertaken By
The Company.
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3. Where A Company Has Set Up An Organization Which Is Registered As A Trust Or

Section 8 Company, Or Society Or Foundation Or Any Other Form Of Entity
Operating Within India To Facilitate Implementation Of Its CSR Activities In
Accordance With Its Stated CSR Policy, The Following Shall Apply
a) The Contributing Company Would Need To Specify The Projects/programs To Be
Undertaken By Such An Organization, For Utilizing Funds Provided By It;
b) The Contributing Company Shall Establish A Monitoring
Mechanism To Ensure That The Allocation Is Spent For
The Intended Purpose Only;

4. A Company May Also Conduct/Implement Its CSR programs Through Trusts,

Societies, Or Section 8 Companies Operating In India, Which Are Not Set Up By The
Company Itself.
5. Such Spends May Be Included As Part Of Its Prescribed CSR Spend Only If Such
Organizations Have An Established Track Record Of At Least Three Years In Carrying
On Activities In Related Areas.
6. Companies May Collaborate Or Pool Resources With Other Companies To Undertake
CSR Activities And Any Expenditure Incurred On Such Collaborative Efforts Would
Qualify For Computing The CSR Spending.
7. Only Such CSR Activities Will Be Taken Into Consideration As Are Undertaken
Within India.
8. Only Activities Which Are Not Exclusively For The Benefit Of Employees Of The
Company Or Their Family Members Shall Be Considered As CSR Activity.
9. All Companies Falling Under The Provision Of Section 135 (1) Of The Act Shall Report, In
The Prescribed Format, The Details Of Their CSR Initiatives In The Directors

SCHEDULE VII (See Sections 135)

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Activities Which May Be Included By Companies In Their Corporate Social Responsibility

Policies
Activities Relating To:
(i) Eradicating Extreme Hunger And Poverty;
(ii) Promotion Of Education;
(iii) Promoting Gender Equality And Empowering Women;
(iv)Reducing Child Mortality And Improving Maternal Health;
(v) Combating Human Immunodeficiency Virus, Acquired Immune Deficiency Syndrome,
Malaria And Other Diseases;
(vi)Ensuring Environmental Sustainability;
(vii) Employment Enhancing Vocational Skills;
(viii)

Social Business Projects;

(ix)Contribution To The Prime Minister's National Relief Fund Or Any Other Fund Set Up
By The Central Government Or The State Governments For Socio-Economic
Development And Relief And Funds For The Welfare Of The Scheduled Castes, The
Scheduled Tribes, Other Backward Classes, Minorities And Women; And
(x) Such Other Matters As May Be Prescribed.

Trends of Corporate Social Responsibility

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Trend 1: Governments Are Back!

One Of the Basic Tenets of the CSR Movement in Business Has Been It Being Voluntary and
Meeting Social expectations Above And Beyond The Law. Well, That Sounded Good And No
Doubt Many Companies Have Done well In This Regard. But After Four Years Of Ongoing (And
New) Financial Crises All Over The World And Some Of The more Recent Scandals It Is Also
Fair To Say That Business Has Enjoyed A Rather Long Leach Over The Last Decades,
Thanks To Deregulation And Globalisation. The Fallout Of The Tax Evasion Scandal In The UK
Or The BP Disaster In the US However Have Shown That Governments Are No Longer All That
Happy To Just Take Ethical Business behaviour On Trust Alone. Its No Longer Just Carrots
The Sticks Are Back Out. After Four Years Of Virtually No prosecution Of Any Wall Street
Bankers Responsible For The Financial Crisis, Obama Has Just Appointed A Former star
Prosecutor As The Head Of The SEC For Many A Sign Of A More Ambitious Control Of Wall
Street. And It Is not Just In The US Where A Second Term President Can Now (Hopefully)
Govern Without Too Much Concern For special Interests. At This Weeks Davos Meetings UK
Prime Minister David Cameron The Self Declared Mostre Business Leader You Could Find
Announced More Coordinated Efforts Within The G8 To Clamp Down On The blatant Tax
Evasion We Have Witnessed In The Past.

Trend 2: Make-Or-Break On Climate Change!

Cancun, Copenhagen, Durban, Doha The Spate Of UN Climate Change Conferences Aimed At
Finding A Successor Of The Kyoto Protocol Have So Far Led To Nothing And Are Considered
By Many As A Sick Joke. Much Of It To The Credit Of Business Hampering And Obstructing
Progress In Many Ways, As A Recent Study Exemplifies. This Said Though, It Does Not Mean
That Climate Change Is Off The Agenda For Business. On The Opposite, In
Accordance With Trend 1 Above, We See That Many National (I.E. Australia), Regional (I.E.
California) Or Even Municipal (I.E. The C40) Jurisdictions Are Moving On The Topic With, Yes,
Regulatory Systems, Be It Cap-And-Trade, Carbon Tax Or Other Approaches.
For Business This Is Not Necessarily The Best Outcome. While Global Agreements Provide A
Long Term Framework For Adapting To The Issue Business Now Is Confronted With A
Patchwork Of Approaches, Systems And Jurisdictions. With Considerable Regulatory Activism
In The Area This Enhances Uncertainty And Risk. This Will Be Exacerbated By The Fact That
Events Like Hurricane Sandy (Causing Even Mike Bloomberg To Acknowledge Climate Change
As Real!) Make The Effects Of Climate Change More Palpable. This Area Of CSR Is Just Going
To Be A Major Issue On The 2013 Agenda.

Trend 3: Beware Of CSR Fatigue!

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In A Recent Book Just Published Some Of Our Colleagues Talk About The End Of CSR. While
We Are Not Buying This Line Totally, It Cannot Be Overlooked That CSR Fatigue Is Spreading
Far And Wide. Not Only Has CSR Been Totally Incorporated And Has Become A Mainstream
Practice For Most Large Businesses, It Has Also Not Prevented The Scandals We Had The
Opportunity Of Talking About. After All, Most Of The Culprits In Those Incidents,
Including The Major Banks At The Heart Of The Financial Crisis, All Have Very Much To Tell
Us On Their Websites About The Wonderful Things They Are Doing In The CSR, Sustainability
Or Corporate Citizenship Area. One Trend Then We Can Observe And Which Will Continue To
Shape CSR Practices Is A Move Towards The Core Value Creation Of Business. This May Not
Be As Comprehensive As Unilevers Sustainable Living Plan But It Will Certainly Shape CSR
Instruments. The Latest G4 Revision Of The Reporting Guidelines By The GRI, For Instance,
Will Move CSR Related Reporting Away From Being A Separate Side Show To Becoming An
Integrated Part Of The Financial Reporting Of Companies. This Trend Will Also Be Exacerbated
From The Regulatory Side (See Trend 1 Above): The SEC Has Recently Adopted A Rule To
Disclose The Use Of conflict Minerals For Companies, Which Given The Track Record Of This
Type Of SEC Rulings, Will Have Significant Impacts On The Way Companies Implement
Responsible Supply Chain Practices. While We Dont Necessarily Expect An Avalanche Of
Regulation Here The Trend Is Likely To Become Stronger In 2013.

Trend 4: The Action Is Moving South!

In The 2013 Ranking Of Global 100 Most Sustainable Companies In The World, Launched In
Davos This Week, The Number Two Is The Brazilian Natura cosmeticos. And They Are Just One
Of Five Brazilian Companies Who Made It Into The Top 100. For Us This Is Indicative Of A
Trend. The So-Called Developing World Is No Longer Just An Awkward Backwater Whose
Role In The CSR Arena Was At Best To Cause Many Companies In The Global North To
Clean Up Their Supply Chains. It Is Increasingly Where The Action Is. Entire New Areas Of
CSR, Such As Social Innovation Or Social Entrepreneurship Have Been Initiated From The
Global South. Think Only Of Mohammad Yunus And The Grameen Bank, Which Can Be Seen
As A Symbol Of This Movement. But We Also See It At Other Levels. Indian And Chinese
Governments Have Long Moved Into Initiatives To Regulate And Incentivize CSR For Their
Companies. And We Have Also Seen In 2012 That The Story Of Chinese Multinationals Moving
Into Africa As The New Robber Barons Is Likely Not To Go On Forever: Chinese Companies
Are Facing Exactly What Western companies Were Exposed To Some Years Ago With The
Chinese Government Issuing The First Guidance For Social Responsibility for Chinese
Companies Abroad In 2012.

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Trend 5: Watch Social Media!

OK, Somehow Social Media Has Come Of Age A Little And We Would Be The Last To Pull That
Rabbit Out Of The Hat In 2013 And Sell It As The Hottest New Thing In Town. In Some
Quarters The Cacophonic Ubiquity Of Social Media Has Led To Its Self Defeat To The Degree
That Some Have Even Lamented In The Past Year Its Ineffectiveness In Drawing Attention To
Corporate Scandals Such As Apple In China. The Biggest Change Then Is Not The That Social
Media Is Used In The CSR Context, But That As A Tool It Has Now Passed The Hump On The
Adoption Curve: It Is No Longer Just For Youngsters; Rather 57% Of Those 50 To 64 Years
Of Age And Even 38% Of Those Over 65 Are Now Engaged On At Least One Social Network.
From A CSR Perspective This Means That No Longer A Little Blog Or Discussion Forum To
Engage With The Usual Suspects Of Young Activists, Journalists Or Students Is The Future.
Rather, The Main Channels Of Engagement And Communication For Business Are Changing.
We Talked About CSR Fatigue Above, And It Is Here Where We Will See The Most Significant
Changes In The Way Companies Communicate. It Is Moving From Stats To Stories. Rather
Than Putting Out The Annual Alibi Report Document, Social Media Amplifies The
Communication Of Real Life Impacts, Of How People Are Affected, The Need For Discussion
Rather Than One-Way Information, And The Absolute Imperative Of Time. CSR Communication
Is Not Just Putting Out A Report Once A Year, But It Is About Informing On
A Regular Basis, Close To Events, With Responses And Updates In Real Time. The Good News
Then Is That Social Media Will Be Less Linked To Activism Or Campaigns But Beware: The
Thirst For Information Facilitated By Social Media Asks For More Ongoing And Regular
Engagement In CSR And Will Expose Business To A Much More Direct And Visible Scrutiny By
The General Public.

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