1. asserting on the increasing importance of effective
corporate governance in India at the 4th Subir
Raha Memorial Lecture organised by Global
Compact Network India on 1st July 2013. The
Subir Raha Memorial Lecture is an annual event
held to honour Late Mr. Subir Raha, Founder
President, Global Compact Network India (GCNI)
and Former CMD, ONGC. Mr. Raha set up the
GCNI in November 2003 and led it till May 2006.
His vision and foresight, has led GCNI to establish
itself as a legal entity, the first one among the
many networks initiated by the United Nations
Global Compact since 2000. The event is a solemn
occasion where we pay our respect and homage
to a great leader and visionary, whose initiatives
have led to the thinking on responsible business
practices in India. In his memory, an annual
lecture series was started by Global Compact
Network India (GCNI) in 2010 and since then, three
memorial lectures have been organised by GCNI.
Mr. Sinha in his lecture on‘Expanding Paradigm
of Corporate Governance’highlighted that the
practice of transparency, effectiveness and
ethical operations are the keys to win trust of
4th
Subir Raha Memorial Lecture
President’s Desk
Dear Members
Welcome to GCNI’s new
tri-annual Newsletter,
‘NUTSHELL’.
As we near completing a
decade of operations, Global
Compact Network India
is steadily engaging with
‘Corporate India’towards
adopting responsible
and sustainable business
practices. The progress has
admittedly been rather
modest; but we realise that
such radical change is slow
and gradual and persist
with our outreach agenda
of disseminating relevant
information and hand –
holding early believers.
While we have a year – long
agenda, a few prominent
activities during this period
are mentioned below.
nutShellVol. 5
Issue 1
April-July 2013
T he G C N I n d i a T ri - annual N ewsletter
“Both in social and political life
demands for good governance
are being made from completely
unexpected quarters. You will find that
questions are being raised from corners
which nobody could have imagined,
even 5 years earlier,” said Mr. U.K. Sinha,
Chairman, SEBI
in the News in focus Meetings
2nd India CEO Forum Meeting | 2
12th Working Group Meeting | 3
Launch of Bangalore Chapter | 3
Publication on Fraud and
Bribery | 4
UNGC’s ALNF Meeting and Training
Programme | 6
9th Annual General Body Meeting | 6
Strengthening Ethical and Transparent
Corporate Governance | 6
Companies Act 2013
An Interview with Mr. Ashok Kumar Pavadia,
Joint Secretary, Department of Public
Enterprises, Ministry of Heavy Industries &
Public Enterprises, Ministry of Industry, GoI | 7
Monthly Meetings | 11
Inthisissue
Contd. on page 2...
Contd. on page 2...

2. 2 | Vol. 5 | Issue 1 | April-July 2013
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newsin the
The forum was organised in Bangalore at the
Infosys Campus and was attended by CEOs/
CMDs and Senior Managerial Personnel from
the leading companies such as Infosys, TCS, JSL,
Mahindra and Mahindra, Elcomponics Ltd., Tata
Steel, GBI, Coca Cola Ltd., IHRB, Tata Chemicals,
ACC Limited, ITC, Total Oil Limited, academicians
from Welingkar Institute of Management, Xavier’s
Institute of Management and Entrepreneurship
and O.P. Jindal Global University and UN Women.
The Forum reconvened this year and based
its discussions on the theme of ‘Growth with
Dignity, Respect and Accountability’. The
meeting was an attempt to initiate a dialogue
among Indian business leaders on exploring
the implementation of the United Nations
‘Protect, Respect, Remedy’ framework within
the Indian context. It focused on discussing
around how the companies and businesses
through their commitment and action
oriented strategies for promoting human
rights could foresee gaining the trust of
people and a competitive position in the
corporate world. The meeting included
presentations and sharing by the business
leaders about their attempts at forwarding
the human rights principles in their respective
workspaces and a panel discussion facilitated
by Mr. Mark Hodge, Executive Director, Global
Business Initiatives on Human Rights, with
Mr. Salil Tripathi, Director of Policy, IHRB,
Prof. J Philip, President, XIME, Prof. Raj Kumar,
Vice-Chancellor, O.P. Jindal Global University
and Mr. Kris Gopalakrishnan, Executive Vice
Chairman, Infosys, on Shared Responsibility
– ‘Protect, Respect, Remedy’ in the Indian
context. The event also witnessed the release
of the year one report of the India CEO forum
on Business and Human Rights.
the investors. He asserted that through effectual
corporate governance the company can win
economic advantages in the medium to long
term, which not only is rewarding to the company
but also the shareholders. Mr. Sinha elaborated
on the laws and guidelines that are being
drafted by SEBI to provide companies with the
necessary guidance to ensure that good corporate
governance norms and culture is followed and
that investors, especially the small investors, are
provided due credit. The event also witnessed
a welcome speech by Mr. Sudhir Vasudeva,
President, GCNI and CMD, ONGC, theme setting
4th Subir Raha Memorial Lecture
2nd India CEO Forum Meeting
“Respect for human rights in business leads to expansion of our democratic values
into the realm of economics and business,” said Mr. Narayana Murthy, Chair, India
CEO Forum on Business and Human Rights and Chairman Emeritus, Infosys Limited,
speakingattheSecondCEOForumonBusinessandHumanRightson2ndApril2013.
...Contd. from page 1
speech by Ms. Lise Grande, UN Resident
Coordinator and UNDP Resident Representative
in India and vote of thanks by Dr. Uddesh Kohli,
Senior Adviser, UNGC and Executive Member,
GCNI. The event was well attended by CMDs
and CEO and Senior Managerial Personnels like
Dr. S.P.S. Bakshi, CMD, EPIL; Mr. Bharat Wakhlu,
Resident Director, Tata Services - Tata Group; Mr.
B.P. Tayal, CMD, Konkan Railways Corporation
and Dr. A.K. Balyan, MD & CEO, Petronet LNG
including 250 other participants from private
and public sector companies, non-governmental
organisation and academic institutions.
President’s Desk
... Contd. from page 1
We had the pleasure of hosting
Mr. U.K. Sinha, Chairman, SEBI at the
4th Annual Subir Raha Memorial
Lecture on 1st July 2013. He
addressed over 300 participants on
the subject‘Expanding Paradigm
of Corporate Governance’, in which
he emphasised the increasing need
for transparency and accountability
from corporate and business
houses.
GCNI launched its 5th chapter
in Bangalore recently to engage
more effectively with companies
located in the Southern States
to bring them into the GCN
fold. Considering India’s vast
geographical spread, it will be
necessary to open – up more
chapters to engage effectively with
Indian business houses.
Collective Action Project (CAP)
launched its second publication –
‘Understanding the Demand and
Supply Equations of Corruption
and Fraud’to help understand
push and pull factors leading to
fraud and to suggest practical
preventive solutions. We are also
pleased to report that GCNI won
the Foreign and Commonwealth
Office’s Prosperity Fund India
Programme bid for the new project
on‘Strengthening Ethical and
Transparent Corporate Governance’
for a period of 18 months.
The Global Compact Network
India’s elections brought together a
new Governing Council (GC) for the
term 2013-2015. It is mix of the old
guard and new incumbents and
will enhance diversity in thought
and perspective in implementing
our ambitious strategic plan.
The future holds great promise
as initiatives such as the recently
enacted new Companies Bill
and enhanced emphasis of
agencies such as SEBI toward
transparency and protecting the
right of minority shareholders
will encourage Indian business
entities toward adopting global
management and compliance
templates. This will surely enhance
opportunities for us to engage
with our partners, patrons and
members on the ten principles of
the compact movement.
I look forward to your continued
support in implementing GCNI’s
agenda.

3. 3 | Vol. 5 | Issue 1 | April-July 2013
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Launch of Bangalore Chapter
Taking place in New Delhi, India, the
12th Meeting of the UN Global Compact
Working Group on the 10th Principle
was held in collaboration with the Global
Compact Network India on 9-10 April
2013. Approximately 125 executives of
international and local businesses, high-
level officials from the Government of India,
representatives of business organisations,
civil society, and academia were convened
to discuss best ways to advance the fight
against corruption through collective
action, and identify challenges and
opportunities for businesses to scale up
existing anti-corruption corporate action.
On the first day, participants reflected
upon ways in which corporations can
contribute to advance anti-corruption
efforts. Specifically, companies, government
officials, and civil society in India showcased
their efforts, and discussed what incentives
can be offered to further strengthen the
existing efforts. Additionally, participants
also reviewed the role of collective action
in tackling corruption risks in various
countries, and Global Compact Local
Networks from Germany, India and Nigeria
as well as the Egyptian Junior Business
Association highlighted their efforts. The
meeting also examined a crucial role
that Information and Communications
Technology (ICT) can play in combating
corruption, and showcased how the ICT
can be better used to increase access to
information and transparency.
Furthermore, Call to Action, a year-long
global campaign, was launched during the
12th Meeting. The Call to Action invites
companies to express their support of anti-
corruption in relation to the UN Post-2015
Development Agenda. The Call to Action
urges governments to promote incentive
mechanisms for corporate anti-corruption
action.
12th Working Group Meeting
Mr. Amar Patnaik, Accountant General (General and Social Sector Audit) set the tone of proceedings of the
day by saying “Sustainable development has to take place on the plank of good governance.”
On the second day, working group
participants engaged in the interactive
session where they discussed some of
the challenges in implementing anti-
corruption compliance programmes
throughout their value chain. The group
also identified priorities for the Working
Group to advance the anti-corruption and
business agenda.
The 12th meeting concluded with a
joint session with the World Economic
Forum’s Partnering Against Corruption
Initiative – WEF PACI. The joint session
provided an opportunity to update the
latest developments that each initiative
is focusing on, and reinforce the spirit of
collaboration towards the common goal of
advancing in the fight against corruption.
The 13th Meeting of the UN Global Compact
Working Group will be held in New York City
at UN Headquarters in December 2013.
Global Compact Network India launched its fifth local chapter in
Bangalore on 2nd April 2013. The launch marked the expansion
and extension of the Global Compact Movement in India.
Mr. Narayana Murthy, Chairman Emeritus, Infosys Limited launched
the chapter along with Mr. Salil Tripathi, Director Policy, IHRB;
Mr. Mark Hodge, Executive Director, GBI; Prof. J. Philip, President, XIME;
Prof. C Raj Kumar, Vice-Chancellor, O.P. Jindal Global University;
Mr. Kris Gopalakrishnan, Executive Vice Chairman, Infosys Limited;
Ms.SushmaKapoor,DeputyRepresentative,UNWomenandMr.Pooran
Chandra Pandey, Executive Director, GCNI. The launch document
was also signed by CMDs/CEOs and Senior Managerial Personnel from
reputed corporates, business houses and academic institutes.

4. 4 | Vol. 5 | Issue 1 | April-July 2013
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The publication was first showcased on
20th June 2013 at the high level B20
Summit in St. Petersburg, Russia. Thereafter
it had a media launch in New Delhi and was
covered by 18 newspapers/magazines, with
more promising to do a follow-up story in
coming weeks. Some major newspapers
and magazines that covered the report
were The Economic Times, Business
Standard, Financial Express, First Post, The
Indian Express, Governance Now, Zee Biz,
among others.
Both qualitative information and
quantitative data were considered at
the data collection stage to obtain a
holistic understanding of the underlying
information. The overall objective of
the analysis was to gain an insight into
the nature of fraud, type of companies
involved, the trends in corporate fraud, the
underlying characteristics and techniques
used, factors motivating the fraudsters
etc., and to present the data and its
interpretations in a meaningful manner.
The report included a sample of over 100
companies indicted by the Serious Fraud
Office, over a period of 15 years from
April 1997 to March 2012. In the event
that an investigation has been conducted
by multiple agencies, all the available
Publication on Fraud and Bribery
CollectiveActionProjectIndiareleaseditssecondpublicationtitled‘UnderstandingtheDemandandSupply
EquationsofCorruptionandFraud’inJune2013.ThispublicationwasdevelopedinpartnershipwithThought
ArbitrageResearchInstitute.
information from each such agency was
considered.
Information was obtained from charge
sheets, court orders, filings with stock
exchanges, specific databases supplemented
by web searches, searches of newspapers
and journals, Lok Sabha questions and
answers etc.The report is an attempt to
look at the evidence available and compile
facts and nuances surrounding this complex
issue. It is an attempt to move away from
the emotive appeal of the anti-corruption
and anti-fraud stand to explore the subject
dispassionately so that a platform of dialogue
and possible solutions can be created.
In the words of Georg Kell, Executive
Director of United Nations Global Compact,
“The Indian private sector has shown
immense potential to foster a transparent
and sustainable economic environment.
I am optimistic that we can collectively
triumph against corruption and fraud
by forging a collaborative relationship
between government and business.”
Mr. Kell emphasised that collective action is
the way forward, as businesses cannot grow
in isolation as well as their fight against
corruption and fraud will not be impactful if
they don’t work together.

6. 6 | Vol. 5 | Issue 1 | April-July 2013
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The 9th Annual General Body Meeting
was held on 1st July 2013 at Scope
Convention Centre, Scope Complex, Lodhi
Road, New Delhi. The AGM witnessed the
announcement of the new Governing
Council headed by President, Mr. Sudhir
Vasudeva, CMD, ONGC. The member
companies and organisations of GCNI met
to deliberate on issues with regard to the
plan of action for the next 1 year including
the consideration on the annual report and
audited accounts.
Strengthening Ethical and Transparent Corporate Governance
9th Annual General
Body Meeting
newsin the
Mr. Pooran Chandra Pandey, Executive
Director, GCNI attended Annual Local
Network Forum (ANLF) and special
training conducted by UNGC on
Partnership during 21st -26th April,
2013. The Annual Local Network Meeting
discussed various issues, in particular,
about more engagement between
UNGC and Local Networks including
joint programmes, new ways to attract
more membership for both UNGC & local
networks, finding strategies and rolling
out a new strategy by the UNGC for the
year 2014-2016. UNGC also proposed that
India Network should work closely with
the UNGC both in India and outside as it is
one of the fastest growing networks in the
UNGC family and proposed joint projects
and programme on sustainability, social
enterprises, and other UNGC initiatives
UNGC’s ALNF meeting and Training Programme
besides proposed regional meeting in
India in the first quarter of 2014.
Mr. Pandey also at the ANLF meeting in
Geneva interacted with senior people
from the corporate, other local networks
and senior members of the management
at the ILO. He also met Sir Mark Moody
and Mr. Georg Kell of the UNGC and
discussed with them key issues and areas
of mutual interest and understanding.
Global Compact Network India worked on
a Project Proposal titled‘Strengthen Ethical
and Transparent Corporate Governance
Practices and Further Responsible
Development’which was submitted
to the Foreign and Commonwealth
Office’s Prosperity Fund India Programme
disbursed by the British High Commission.
We are happy to inform that Global
Compact Network India won the bid for
the Project and began work in earnest from
July 2013.
This Project is part of a wider goal of
mainstreaming Anti-corruption Collective
Action in the development agenda of India.
At GCNI this work began with Siemens
Integrity Initiative supporting the Collective
Action Project from January 2011, and with
this Ethical Corporate Governance project
coming in, the agenda has gotten further
strengthened.
The purpose of this new project is to build
a national collective action platform for
responsible and sustainable development
through informed partnerships with the
business community, bureaucrats, civil
society and parliamentarians. This will be
done by facilitating constructive dialogue
and bridging the gap in knowledge of how
public and private businesses can engage
with government, and set a collective
agenda.
Indian businesses are already witnessing a
rise in ethical and transparent governance
practices. The proposed Project will further
strengthen this initiative by bringing
together senior stakeholders, in business
and bureaucracy, to take forward the
collective agenda of transparency and
responsible development forward. A
tangible output will be that at least 8-10
companies based in India will sign the
United Nations‘Call for Action: Anti-
corruption and the post-2015 Development
Agenda’.
http://www.unglobalcompact.org/Issues/
transparency_anticorruption/call_to_
action_post2015.html

7. 7 | Vol. 5 | Issue 1 | April-July 2013
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focusIN
Q.1
The Act is the first of its
kind to make Corporate
Social Responsibility (CSR) a
mandatory provision. Do you
see this as an effective step in
ensuring that the CSR activities
are actions undertaken beyond
cheque book philanthropy?
Ans.1
The provisions of the new Companies
Act per se do not ensure that corporate
enterprises would not indulge in
philanthropy in the garb of discharging
their corporate social responsibility.
The new Companies Act only makes
it mandatory for companies beyond a
particular threshold of profit, net worth, or
turnover, to ensure that 2% of their profits
are spent on CSR activities. How the money
is to be spent is not specified in the Act.
This will have to be spelt out in the rules to
be framed under this Act by the Ministry
of Corporate Affairs. Schedule – VII of the
new Companies Act gives an indicative list
of activities which may be taken up under
CSR by companies. The rules formulated
under the Act will have to specify that the
companies cannot simply donate money
to charitable institutions which engage in
such activities.
DPE‘s present guidelines on `CSR and
Sustainability’, which are effective since
1st April 2013, however, clearly advise
the CPSEs not to spend CSR funds on
philanthropy. The guidelines make it very
clear that at least 80% of the CSR and
Sustainability funds have to be spent
on activities in a project mode, which
entails advance planning, mobilisation
of resources, allocation of budget,
fixed timelines for different stages of
implementation, and accountability
of officials / agencies entrusted with
execution of different tasks. Since CSR
activities are to be implemented in
a project mode by CPSEs with close
involvement of their management in
planning, implementation, monitoring and
impact assessment stages, the chances
of CSR getting relegated to cheque book
philanthropy gets drastically reduced, if
not completely eliminated.
I would like to clarify here that DPE’s
present guidelines on CSR and
Sustainability would now have now to
be reviewed and slightly modified in
the light of the provisions of the new
Companies Act and the rules framed
thereunder.
Q.2
How would you respond to
the criticism regarding CSR
being made a mandatory
requirement as per the Act? Do
you feel there is a difference of
reaction between public and
private reaction?
Ans.2
Under the Companies Act, it is not
mandatory for all companies to undertake
CSR activities. Section 135 of the new
Companies Act states that only those
companies which have a net profit of over
Rs. 5 crores, or a net worth of over
Rs. 500 crores, or a turnover of over
Rs. 1000 crores in any financial year shall
ensure that at least two per cent of their
average net profits of the preceding three
years is spent on CSR activities. In case
they are unable to spend that amount, the
Companies Act 2013
“Under the Companies Act, it is not
mandatory for all companies to
undertake CSR activities. Section
135 of the new Companies Act
states that only those companies
which have a net profit of over
Rs. 5 crores, or a net worth of over
Rs. 500 crores, or a turnover of over
Rs. 1000 crores in any financial year
shall ensure that at least two per
cent of their average net profits of
the preceding three years is spent
on CSR activities.”
“Essential that the philosophy of CSR is infused in the
DNA of the companies”
An interview with Mr. Ashok Kumar Pavadia, Joint Secretary, Department of
Public Enterprises, Ministry of Heavy Industries & Public Enterprises,
Ministry of Industry, GoI
reason thereof would have to be explained.
Thus, all companies are not covered under
the provision of mandatory spending on
CSR; the coverage of companies is limited
by the prescribed thresholds of profit,
net worth or turnover. Moreover, even for
those companies which are covered in the
Act, the approach seems to be of `comply
or explain’. But we will have to wait for the
formulation of rules under the Act to be
clear about the mandatory aspect of CSR
spending by companies.
Unfortunately, some Companies still
perceive CSR as a drain on their resources,
as something which nibbles on their
profits, or which drills a hole in their
pocket. Therefore, I personally feel that
some private companies may not react
very enthusiastically to the CSR provisions
of the Companies Act, largely because they
may not fully understand the concept and
philosophy of CSR and its relevance and
importance in the contemporary world
of business. They may perhaps fail to
understand that what is good for society
and environment can also be good for
business.

8. 8 | Vol. 5 | Issue 1 | April-July 2013
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Q.3
Coming back to the legal
provisions, while making CSR a
mandatory legal requirement,
it does not establish penalties
for non-compliance. Do you
believe this would hamper the
implementation of the clause
on CSR?
Ans.3
I do not subscribe to the view that the
threat of penalties alone can ensure
sincere compliance. I am personally not in
favour of penalties. Perhaps incentives may
produce better results. More importantly,
we should attempt to change the mind-
set of the management of the companies.
Only when they realise the relevance
of CSR and its enormous benefits for
business, society and environment, will
they take up CSR activities voluntarily,
with full passion, and in right earnest. It
is essential that the philosophy of CSR is
infused in the DNA of the companies. Once
CSR is internalised in the organisation’s
culture, ethos, operations and processes,
its sincere implementation by companies
would be assured.
Q.4
What do you envisage would
be the role of Independent
Directors with regards to the
CSR policy of the company?
Ans.4
The inclusion of an independent director
as a member of the Board level committee
on CSR is a welcome step. The presence
of independent directors on the Board is
widely acknowledged as enhancing their
efficiency, enriching their deliberations,
and thus, improving corporate
governance. It is a general perception
that at times Boards are under pressure
to take up activities which are either not
valid CSR activities, or are not aligned with
the business policies and strategies of the
company. Independent Directors can assist
the Boards in resisting such pressures.
Besides, they can enrich the quality of
decisions taken by the Board by bringing
in outsiders’vision and perspectives on
CSR.
DPE’s present guidelines on `CSR and
Sustainability’are in consonance with
the provisions of the new Companies Act
in that the presence of an Independent
Director on the Board level committee
on CSR and Sustainability has been made
mandatory for CPSEs. We have, in fact,
gone a step further by stipulating that
in case an Independent Director is not a
member of the Board level committee on
CSR and Sustainability, the entire amount
allocated for such activities would be
transferred to a Sustainability Fund which
is contemplated to be created separately
for CSR and Sustainability activities. This
provision is meant to bring pressure on
the CPSEs to ensure that an Independent
Director is definitely inducted as a member
of the Board level committee on CSR and
Sustainability.
Q.5
The Companies Act, currently
excludes large number of
Small and Medium Enterprises
(SMEs) from its purview. Given
that these SMEs contribute
around 17 per cent of the total
GDP and employ around 40
per cent workforce in India,
do you think the current Act
needs to include them?
Ans.5
I personally think that all companies
regardless of their size or profit margins
have a duty to discharge their corporate
social responsibility. Small and Medium
Enterprises (SMEs), and even the loss
making companies are expected to
conduct their business in a socially,
economically and environmentally
sustainable manner. Companies with small
or no profit may not be able to take up
CSR projects and activities due to financial
and resource crunch. But, surely, they can
“More importantly, we should
attempt to change the mind-
set of the management of the
companies. Only when they
realise the relevance of CSR
and its enormous benefits
for business, society and
environment, will they take up
CSR activities voluntarily, with
full passion, and in right earnest.
It is essential that the philosophy
of CSR is infused in the DNA
of the companies. Once CSR is
internalised in the organisation’s
culture, ethos, operations
and processes, its sincere
implementation by companies
would be assured.”
The present DPE guidelines on `CSR
and Sustainability’are to a very
large extent in consonance with the
provisions of the Companies Act in
this regard. And, in my opinion, public
sector enterprises in comparison to the
private companies better understand
the concept and philosophy of CSR.
One, because for quite some time now
they are used to spending a portion
of their profits on CSR activities. DPE
guidelines on CSR issued in 2010, and
the revised guidelines issued in 2013
make it mandatory for Central Public
Sector Enterprises (CPSEs) to undertake
CSR activities. Of course, many CPSEs
have been willingly doing a lot of
commendable work under CSR even
prior to the issue of DPE guidelines.
More importantly, the extensive
campaign carried out by DPE in the
last couple of years to engage all the
key stakeholders in a dialogue on CSR
and Sustainability to sensitise them,
especially the management of CPSEs
on the relevance and importance of
CSR has apparently paid rich dividends.
Due to the persistent efforts of DPE,
there is a widespread awareness of CSR
and Sustainability in the public sector,
and CSR initiatives taken by CPSEs
have acquired the dimensions of a big
movement in the corporate world.

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“I also feel that by simply confining
CSR to just spending 2% of the
profits of a company, we may be
taking a moribund view of the
scope, dimensions, and potential
of CSR, and severely restricting the
space in which it can operate.”
imbibe the philosophy and spirit of CSR
in their organisational culture, and adhere
to the principles of UN Global Compact in
their internal functioning.
I also feel that by simply confining
CSR to just spending 2% of the profits
of a company, we may be taking a
moribund view of the scope, dimensions,
and potential of CSR, and severely
restricting the space in which it can
operate. According to DPE guidelines,
even in their internal operations, their
mainstream activities, and in their routine
budgetary spending, CPSEs are expected
to be conscious of their corporate social
responsibility and reflect it in the goods
and services which they produce.
Q.6
How do you look at the
leadership of the Global
Compact, one of the largest
CSR initiatives, with regarding
to enforcing the clause of the
new Companies Act?
Ans.6
I think UN Global Compact principles
are very pragmatic and useful for
Businesses of all types. As a part of their
CSR, Corporates should implement
these principles in their internal
organisational structure and in dealing
with externalities, including all providers
in the supply chain. However, this aspect
will have to be mentioned in the rules
which are framed under the provisions
of the new Companies Act. As far as
DPE’s present guidelines on CSR and
Sustainability are concerned, it has been
very clearly mentioned therein that CPSEs
can seek guidance from the principles of
UN Global Compact in formulating their
CSR and Sustainability policies.
Q.7
What are the major challenges
that you feel would be
pertinent from the point of
view of the corporates and
their compliance with CSR
provisions of the act?
Ans.7
The real challenge would be in the
implementation of CSR provisions of
the Act. The devil always lurks in the
implementation part. The resistance
which may emanate from the companies
would mainly arise due to their lack
of understanding of the concept and
philosophy of CSR and its relevance in
the business world. A lot will also depend
on how the rules are framed under
the provisions of the new Companies
Act. Framing of rules itself would be a
challenge.

10. 10 | Vol. 5 | Issue 1 | April-July 2013
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Secretary
Mr. S. Satish Rao
Additional General Manager
Bharat Heavy Electricals
Limited
President
Mr. Sudhir Vasudeva
Chairman & Managing
Director
Oil & Natural Gas
Corporation
Treasurer
Mr. H. D. Gandhi
Chief Manager – HR
Indian Oil Corporation
Limited
Special Invitee
Mr. Chandrajit Banerjee
Director General
Confederation of Indian
Industry
Vice President
Northern Region
Dr. S. P. S. Bakshi
Chairman-cum-Managing
Director, Engineering
Projects India Limited (EPIL)
Co-opted Member
Mr. C. S. Verma
Chairman
Steel Authority of India
Special Invitee
Dr. A. Didar Singh
Secretary General
Federation of Indian
Chambers of Commerce
and Industry
Vice President
Eastern Region
Mr. R. Mohan Das
Director - Personnel & IR,
Coal India Limited
Co-opted Member
Dr. A. K. Balyan
Managing Director & CEO
Petronet LNG
Special Invitee
Mr. D. S. Rawat
Secretary General
The Associated Chambers
of Commerce and Industry
of India
Vice President
Western Region
Ms. Beroz Rumie Gazdar,
Sr. Vice President -
Group Sustainability
Mahindra & Mahindra Limited
Member
Dr. Uddesh Kohli
Chairman Emeritus,
Construction Industry
Development Council
Member
Mr. Anoop Kumar Mittal
Chairman-cum-Managing
Director, National Buildings
Construction Corporation
Limited
Member
Dr. Vinod Singh
Vice Chairman
CCLP Worldwide India
Member
Brig. Rajiv Williams
Corporate Head – CSR
Jindal Stainless Limited
Co-opted Member
Dr. Joy Deshmukh
Global CSR Head
Tata Consultancy Services
Special Invitee
Ms. Rekha Sethi
Director General
All India Management
Association
Vice President
Southern Region
Mr. N. K. Nanda
Director (Technical)
NMDC Limited
Special Invitee
Dr. U. D. Choubey
Director General,
Standing Conference of
Public Enterprises
Governing Council of Global Compact
Network India 2013-2015

11. 11 | Vol. 5 | Issue 1 | April-July 2013
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June 2013
Role on Affirmative Action through
Corporate Action: Role of India Inc. in
Inclusive Growth
Global Compact Network India jointly with NACDOR organised
the round table conference on‘Role on Affirmative Action through
Corporate Action: Role of India Inc. in Inclusive Growth’on 28th
June. The meeting witnessed a theme setting speech by Mr. Bharat
Wakhlu, Resident Director, Tata Services - Tata Group and discussion
on the role of corporates in affirmative action. Some key speakers
at the event included Dr. Uddesh Kohli, Senior Adviser, UNGC;
Mr. Ashok Bharti, Chairman, NACDOR; Dr. Serge Younes, Senior
Consultant, Accenture and Mr. Pooran Chandra Pandey, Executive
Director, GCNI.
July 2013
The Strategic Necessity of
Corporate Social Responsibility and
Business Sustainability
Indian Oil Corporation hosted the July Monthly Meeting
on the theme‘The Strategic Necessity of Corporate Social
Responsibility and Business Sustainability’on 30th July
2013. The meeting included a presentation on‘The Strategic
Necessity of Corporate Social Responsibility and Business
Sustainability’by Mr. Bibhuti Pradhan, CM (HR), Indian Oil
Corporation Limited, and on Business Sustainability by
Mr. Vinod Pandey, General Manager - Government Affairs,
BMW India Pvt Ltd. The presentations focussed on the
necessary importance of CSR and sustainability in business
operations. Some eminent dignitaries at the event included
Mr. Lee Bee Sen, Executive Director (HR & CSR), Indian Oil
Corporation Limited, Dr. S .P. S. Bakshi, Vice President (Northern
Region), GCNI & CMD, Engineering Project India Limited (EPIL)
and Mr. Ashok Kumar Pavadia, Joint Secretary, Department of
Public Enterprises, Government of India.
meetingsMonthly
May 2013
Advancing Social Integration and
Intergenerational Solidarity
Global Compact Network India jointly with SERFAC organised the
book launch and panel discussion on the theme‘Advancing Social
Integration and Intergenerational Solidarity’on 15th May 2013.
At the event, the book titled‘Family: Heart of Humanity’was
launched by Honourable Justice Leila Seth, who in her address drew
the attention towards the importance of the book to scholars and
development practioners. The event also included a panel discussion
on the theme‘Advancing Social Integration and Intergenerational
Solidarity’and was informed by dignitaries and experts such as
Mr. Soli Sorabjee, Former Attorney General of India; Prof. Dr. Reeta
Sonawat, Professor and Head Human Development, SNDT Women’s
University; Dr. Lalit Kumar, Adviser, Voluntary Action & Youth Affairs,
Planning Commission; Dr. Uddesh Kohli, Senior Adviser, UNGC; and
Col. Prakash Tiwari, Head CSR, Jindal Steel & Power Ltd.
April 2013
Women Empowerment Initiative in
India - Gender Equality Means Business
Global Compact Network India organised its April Monthly
Meeting on 20th April on the theme‘Women Empowerment
Initiative in India – Gender Equality Means Business’. The event
witnessed a key note address by Ms. Tine Staermose, Director,
ILO Decent Work Team for South Asia and Country Office for
India, and presentations on‘WEPs Initiative in India’by Ms.
Subhalakshmi Nandi, Women’s Economic Empowerment
Specialist, UN Women, on‘Women’s Empowerment Principles’
by Ms. Rashmi Singh, Executive Director, Gender Equity and
Diversity CARE India and by Dr. Manju Karla Prakash, Executive
Director, FICCI Ladies Organization (FLO).

13. 13 | Vol. 5 | Issue 1 | April-July 2013
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eventsUpcoming
Global Compact Network India jointly with Deloitte, has conceived a significant training
programme on Sustainability and Corporate Governance for the member companies. The training
programme has been designed to train the members on key sustainability and CSR frameworks
and sharing of best practices across sustainability and CSR, value chain and its linkages with the
UNGC principles. The training would also enable informing the CSR and sustainability mandate
of the organisation and mapping and aligning it with the UNGC principles’ requirements. The
training would be carried out in 6 Indian cities namely; Delhi, Mumbai, Kolkata, Bangalore,
Hyderabad and Chennai during September and October 2013 and will be facilitated by trainers
from Deloitte with considerable experience in sustainability domain.
Held every three years, the Leaders Summit is the premier UN-business event – bringing together chief
executives with leaders from civil society, Government and the United Nations. The largest gathering of
its kind, the Leaders Summit represents a unique opportunity for Global Compact participants to discuss
corporate sustainability strategy at the highest level, and produce strategic recommendations and action
imperatives for the future of the initiative. The Leadership Summit for the year 2013 is scheduled to be
held on 19th and 20th of September 2013 in NewYork. Chaired by UN Secretary-General Ban Ki-moon,
the Leaders Summit –‘Architects of a Better World’– will link the enduring, universal values of the United
Nations with a new global architecture for corporate sustainability. As the Millennium Development Goals
2015 deadline approaches, the Summit will set the stage for business to shape and advance the post-
2015 development agenda – putting forward architecture for business to contribute to global priorities at
unprecedented levels.
Global Compact Network India jointly with expert advisers and specialists, from the United Nations
Global Compact and Pacific Institute, New York has conceptualised the India Collaboration Lab with
the aim to convene social entrepreneurs, NGOs, corporations, investors and policy-makers in an
action-oriented event to identify and design initiatives to scale innovations that increase the access to
quality water and sanitation services in India. The collaboration lab has been designed to concentrate
and deliberate on themes highlighted in India’s 2012 National Water Policy, build upon the strategies
advanced at the March 2013 CEO Water Mandate Corporate Water Stewardship Conference, develop
engagement strategies and demonstrate multi-stakeholder collective action. The programme to be
organised in New Delhi during 22nd and 23rd October 2013, is a 1 ½ day event for Chief Executive
Officers, Executive Directors, Chief Sustainability Officers, Founders, Managing Directors, policy-makers
and others who are ready to align with a diverse set of stakeholders and act in collaboration to increase
the effectiveness and reach of water and sanitation projects in India.
The Rio+20 Conference in Rio de Janeiro, Brazil outcomes have brought in renewed focus on the
imperative for the business fraternity to channelise their resources and integrate sustainability concepts
across the value chain. It also offers a unique opportunity for a concerted effort in creating a sustainable
future. GCNI and BMW in line with this agenda are organising the India Sustainability Dialogue on 15th
November 2013 in New Delhi. The event intends to create a platform to engage key stakeholders in
constructive deliberations on sustainability related challenges and recommendations to solve it. The
platform will provide for sharing of good practices followed across various sectors.
Sustainability
and Corporate
Governance
Training in
Partnership with
Deloitte
Mumbai, Bangalore, Hyderabad,
Chennai, Kolkata and New Delhi
UN Global
Compact Leaders
Summit
New York, USA
India
Sustainability
Dialogue
New Delhi
India
Collaboration
Lab
New Delhi

14. 14 | Vol. 5 | Issue 1 | April-July 2013
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• 4th Subir Raha Memorial Lecture – Post event release
• Annual Report
• Yearbook on Monthly Knowledge and Sharing Meeting
• A situation Paper on Strengthening Transparent and Ethical Corporate Governance to Further Responsible Development
publicationsUpcoming
eventsUpcoming
International Symposium on ‘Business Ethics, Transparency and Compliance: Need for Responsible
Management Approach’ would be organised by Collective Action Project at Global Compact
Network India, in partnership with United Nations Principles of Responsible Management
Education. The Symposium will be hosted by Canara Bank of Management School, Bangalore
University on their campus in Bangalore on October 30, 2013.
The symposium would explore following sub themes
• Rethinking Business Ethics in wake of emerging regulatory framework across different
contexts
• Experiences in managing transparency and anti-corruption in the organisations (2008
onwards)
• Small and Medium Enterprises (SME’s) in the contemporary Anti-Corruption discourse
• Transparency and ethics interface with corporate strategy
• The nexus between Corporate Strategy and Business Responsibility
• Beyond Compliance: Expanding the canvas of business responsibility in emerging India
• Conflict of interest and its’ impact on transparent management of business functions
• Whistle-blowing and loyalty issues in the organisations.
Global business is vastly more complex than the simple act of selling a product or service to a
consumer. Business is accomplished through the elaborate networks of the supply chain – the
persons, entities and infrastructure that transform materials and human capital to intermediate and
finished products and services for customers and consumers. The problem of corruption affects
every business in the supply chain, so all must work together to tackle this problem. As the news
media regularly reports, the misdeeds of suppliers can directly affect a customer’s product and
service quality. At the same time, suppliers who may themselves be large MNCs. Thus all businesses
need to attune themselves to the problems of corruption in order to protect their own products,
services and reputations.
A National Consultation on Supply Chain Transparency and Sustainability would be held in
Mumbai in November 2013 to deliberate on the above issues and come up with basic guidelines.
This National Consultation would be in partnership with mJunction and run concurrently with
Intermodal India, a logistics tradefair.
UNGC working group on the 10th Principle against Corruption is a multi-stakeholder issue
specific body which steers anti-corruption activities globally. The group on the 10th UNGC
principle on anti-corruption was launched after the introduction of this principle in 2004. This
Multi-Stakeholder working group facilitates a discussion amongst businesses, provides guidance
to the Global Compact and most importantly it ensures alignment of various anti-corruption
initiatives. The 12th Working Group Meeting was held in New Delhi on April 2013. CAP India will
actively engage with the 13th Anti-Corruption Working Group Meeting to be held in New York on
International Anticorruption Day i.e. December 9, 2013.
International
Symposium on
‘Business Ethics,
Transparency
and Compliance:
Need for
Responsible
Management
Approach’
Bangalore
National
Consultation on
Supply Chain
Transparency and
Sustainability
Mumbai
13th Working
Group Meeting
New York, USA

15. 15 | Vol. 5 | Issue 1 | April-July 2013
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Membership Benefits
KEY BENEFITS OF JOINING
GLOBAL COMPACT NETWORK INDIA
• Global Ethical Framework: Any stakeholder joining
GCNI enters into a Global Ethical Framework by
embracing universal principles on Human Rights, Labour,
Environment and Anti-corruption long recognised by
governments all over the world but not yet universally
implemented.
• Induction, Training and Communication of Progress:
Companies are provided by way of briefing and training
activities to the key staff on what it means to be part of the
UNGC and how they can contribute to their organisation’s
CSR activities and other initiatives which cover broadly
the ten principles of UNGC. Assistance is also provided
to companies in preparing their annual Communication
of Progress (COP) as part of their commitment to the
principles of UNGC.
• Integrated Platform: The network provides a high-
impact collective action platform by way of Knowledge
Sharing and Network Meetings; Regional Conclaves and
National Convention in which leaders from all over the
country representing various sectors meet to address and
explore how collective action can create incentives for
ethical business performance and on some of the most
urgent social and environmental challenges of our times.
It also strengthens corporate citizenship and develops
partnership projects to the achievement of the Millennium
Development Goals.
• Publication and Communication: Create a window
of opportunity for the stakeholders to share their good
practices to a larger global audience by way of publishing
in Annual UNGC documents and through electronic
communication by means of UNGC & GCNI websites.
• Participation in the Governance of the Network, including
election to the Governing Council or becoming member
of subject sub-committees which would bring in varied
stakeholders on board and add vibrant leadership,
visibility and credibility to the organisation.
• Collective Action Project on Anti-corruption and Green
Economy provides an enabling platform at the country
level where different stakeholders address various issues
related to corruption. Further, it acts like a forum to share
information and experiences and find way and means
to collectively fight against corruption and mitigate
challenges related to environment.
• Representation through State, National and
International Forums: GCNI is a pan India membership
driven network, state chapters bring in not only the
existing but potential stakeholders to actively take part
in the activities and initiatives of GCNI. Stakeholders are
provided with opportunities to represent GCNI in National
and International Forums.
Global Compact Network India
One of the key elements of the UNGC initiatives is the existence
of business led multistakeholders platforms of local networks
which provide an opportunity for members to share experiences,
innovative practices and collaborates for furtherance of responsible
business values within country specific contexts. The Global
Compact Network India was formed by the UNGC participant
companies from India. It was registered in New Delhi in November
2003 as a Non-Profit Society to function as the Indian Local Network
of the Global Compact Programme, functioning within a globally
recognised and established initiative with a pan India
membership base.
Global Compact Network (GCN) provides an extremely relevant
vehicle for Indian Companies- Large & SME, Academic institutions
and Civil Society organisations to join hands towards strengthening
responsible business initiatives in India and internationally.
Why Join Global Compact
Network India
Today when the most progressive companies are focusing on CSR,
Global Compact is the right platform to demonstrate nationally and
internationally the commitment to CSR and ethical working of the
companies. Voluntary guidelines on CSR by Ministry of Corporate
Affairs lay emphasis on almost the same core issues as advocated by
UNGC. Department of Public Enterprises has also issued guidelines
on CSR for CPSEs which make a reference to UNGC.
There are four categories of members in the network:
1. Corporate Members (Companies / Corporations)
2. SME Members (Small & Medium Enterprises)
3. Institutional Members
a) Non-Profit Making Societies
b) Trusts
c) Educational and Research Institutes
d) Govt. Departments
4. NGO Members
a) Civil Society
b) Non-Government or Labour Organisations
Membership fees
Membership
Category
Entrance
fees
(in Rs.)
Annual
Fees (in
Rs.)
Lifetime
Membership
(in Rs.)
1 Corporate Members
Upto ` 500 Crores in
the preceding year
25,000 25000 2,50,000
2 Above ` 500 Crores 50,000 50,000 5,00,000
3 SME Members 10,000 10,000 1,00,000
4 Institutional
Members
10,000 10,000 1,00,000
5 NGO Members 10,000 10,000 1,00,000
*A service tax of 12.36% would be applicable on the above mentioned fees structure.

16. About Global Compact Network India
The Global Compact Network India was formed in November 2003 and was registered as a non-profit society to function as the Indian local
network of the UN Global Compact programme. It is the first local network in the world to be established with full legal recognition. Global
Compact Network India (GCNI) is a country level platform for businesses, civil society organisations, public sector and aids in aligning
stakeholders’ practices towards the Ten Universally Accepted Principles of UNGC in the areas of Human Rights, Labour, Environment and
Anti – corruption. At present, the India network ranks among the top 3, out of the 101 local networks in the world, and has emerged as the
largest corporate citizenship and social responsibility organisation in the country with a pan India membership of 126 organisations, who have
strengthened their commitment to the UN’s Global Compact Principles by becoming proud signatories of the local network, GCNI.
The Global Compact Network India Office
Scope Complex, Core 5,
6th Floor (ONGC Office),
7 Institutional Area,
Lodhi Road, New Delhi
Email: gcnindia@gmail.com
www.globalcompact.in
Disclaimer: This publication is intended strictly for learning purposes. The inclusion of company names and/or examples does not constitute an
endorsement of the individual companies by the Global Compact Network India Office. The material in this publication may be quoted and used
provided there is proper attribution.
DesignedandPrintedby:RootsAdvertising
The Ten Principles of the United Nations Global Compact
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.