INTRODUCTION

WHAT IS CSR ?

Corporate social responsibility (CSR) is a form

of business self-regulation to incorporate social and environmental concerns. It
represents a business model that adheres to laws, ethical standards, and
international norms.
As part of the business model, businesses have to take into account the impact
of their activities on the environment, employees, communities, stakeholders,
and other members of the public. In short, CSR represents the deliberate
inclusion of the public’s interest in a business’ decision making to ensure a
triple bottom line that considers the planet, people, and profits.
In general, CSR involves some kind of standardized reporting that allows the
business to collect information on how it is making progress on various fronts.
Businesses that engage in CSR typically focus on some or all of the following:
 Environment: This requires a look at the environmental impacts of
products and services, as well as what the business does outside the
company to improve the environment.

 Employees: It’s important to ensure that all employees are cared for
adequately. Businesses usually focus on workplace conditions, benefits,
living wages, and training.

 Communities: Engaging the surrounding communities is an important

part of not just creating good human capital that can serve the business,
but also securing a reputation that can further establish the business.

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  Regulations: Respecting regulations to the fullest and often exceeding
them is part of being socially responsible.

Crisis Preparedness: Being ready to address business crises and ensure safety
for employees and surrounding communities is critical. Having plans ready and
tried are important in ensuring minimal losses during times of crises.

Meaning and Definition

CSR is about how companies manage the business processes to produce an
overall positive impact on society.

Take the following illustration:

Companies need to answer to two aspects of their operations.

1. The quality of their management - both in terms of people and processes (the
inner circle).

2. The nature and quantity of their impact on society in the various areas.

Outside stakeholders are taking an increasing interest in the activity of the

company. Most look to the outer circle - what the company has actually done,
good or bad, in terms of its products and services, in terms of its impact on the
environment and on local communities, or in how it treats and develops its
workforce. Out of the various stakeholders, it is financial analysts who are
predominantly focused - as well as past financial performance - on quality of
management as an indicator of likely future performance.

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 IMPORTANCE OF CSR?

Corporate social responsibility (CSR) plays a major role in developing the

economy of a country. It can be defined as the way in which a company manages
various business entities to produce an impact on the society. Companies with
high CSR standards are able to demonstrate their responsibilities to the stock
holders, employees, customers, and the general public. Business organizations
that have high corporate social responsibility standards can attract staff thereby
reducing employee turnover and cost of recruitment. What is the importance of
corporate social responsibility? Anyone can give a clear answer to this question.
Companies voluntarily contribute a large sum of money to make a better society
and a clean environment.
Corporate social responsibility is a process in which all companies come together
as one and take part in the welfare of the society. Many organizations conduct
campaigns to create awareness among corporate, civic bodies, and government
bodies about the importance of corporate social responsibility. Many national and
multinational firms are booming in various developing countries. But at the same
time, these countries suffer social challenges such as poverty, corruption,
population growth, etc. Therefore, it is important for all companies to strive
together and adapt corporate social responsibility standards to make the society
better than before. An organization can exhibit a better image in the society if it
cares for its employees and involve them in social activities. The responsibilities
of an organization may range from providing small donations to executing bigger
projects for the welfare of the society. Many business houses around the world
show their commitment to corporate social responsibility.
What is the importance of corporate social responsibility? The answer lies in
two things:
1) organizations understanding their role in developing a society
2) awareness among business houses, corporate bodies, and the people.
Versatile, profitable, and dynamic businesses are the driving forces that build
the economy of the country. We must remember that the growth of a country
purely depends on the growth of the society and the people in the society.

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 SCOPE OF CSR

Business is the creation of society and must give back to society what it wants.
Management should set examples by developing values towards society. The
society comprises of various stakeholders like shareholders, employees,
customer government etc.
Business organizations are responsible to the following groups:
 Shareholders
 Employees
 Customers
 Community
 Organizations
 Government

1. Shareholders:
Shareholders bring capital for the business enterprise and facilitate its smooth
functioning.
The business enterprise, in turn, owes the following responsibilities to
shareholders:
a. Payment of fair and regular dividends:
Shareholders give money to the company in return for dividends. The
companies must, therefore, ensure regular payment of dividends to them.
b. Increase in the value of investment:
Shareholders not only want regular dividends, they also want increase in
the rate of dividends. The companies must, therefore, attempt to increase
the dividends each succeeding year.
c. Safety of investment:
Equity shareholders are the last claimants of assets in the event of
winding up. Companies must maintain sufficient assets to ensure safety
of their investment during winding up.

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d. Disclosure:
Companies must disclose their financial position in the annual reports so
that shareholders know the progress of the company and the extent to
which their interests are secured.

2. Employees:
Employees help in smooth administration of business and effective conversion
of inputs into outputs.
The business organizations must, therefore, discharge the following obligations
towards employees:
a. Proper working conditions:
They should ensure proper working conditions for their employees. Basic
facilities like lighting, ventilation and sanitation should be provided as
good and healthy working conditions promote industrial productivity.
b. Financial benefits:
Financial benefits like pension, provident fund and perquisites like
medical and recreational facilities must be provided in the organization
for fulfillment of their physiological needs and a secured future.
c. Participation in decision-making processes:
Workers should be allowed to participate in managerial decision-making
processes and express their views on organizational matters. This
develops their thinking and provides management with useful and
constructive suggestions.
d. Training and motivation:
Training programmes should be regularly conducted to update their
knowledge and motivators (financial and non-financial) should be
provided to increase their individual output.
e. Recognition of rights:
Management should recognize the right of workers to form trade unions
and bargain with managers about the wages, working hours and working
conditions.

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f. Obey the labour laws:
Management should obey labour laws with respect to wages, settlement
of industrial disputes; payment of bonus, gratuity, compensation etc.
Adherence to legislative measures ensures protection of workers’ rights.
g. Job security:
Not only should organizations protect workers’ rights; they must also
provide them job security. Secured jobs promote satisfaction and greater
output.

3. Customers:
“Customer is the king” in the marketing world. Unless the customer buys goods,
the company cannot exist.
Business firms owe the following responsibilities to customers:
a. Provide quality goods:
Firms should provide goods of the right quality, at the right price, in the right
quantity and the right place. This will satisfy customers’ needs, and provide
regular clientele to the firms.
b. Complete information:
Complete information about use and quality of goods should be given in the
advertisement. The advertisement must express both, positive and negative
features of the product.
c. Customer service:
After-sales services like installation, repair, warranty etc. promote goodwill
and sale in the market.
d. Need-based products:
Companies should produce goods that satisfy needs of the customers rather
than those that maximize their profits.
e. Regular supply of goods:
Business firms should avoid practices like hoarding and black marketing and
ensure steady supply of goods in the market. Customers should be able to
buy the goods when needed.

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f. Safety of products:
The products should conform to health and safety standards. Their
consumption should be safe and not lead to health hazards.

4. Community:
Various resources (financial and non-financial) are provided by the
community and, therefore, their interests should be protected by the business
organisations:
a. Pollution-free environment:
The industrial machinery may produce noise and air pollution against health
and safety of the community. Business firms should conform to pollution
standards and provide clean and healthy environment to the community at
large.
b. Promote art and culture:
Firms should donate funds for artistic and cultural development of
community.
c. Urban and rural planning and development:
Business enterprises should assist the Government in urban and rural
planning and development to raise the standard of the community and the
nation.
d. Support local health-care programmes:
Business support for healthcare programmes will result in a healthy society.
Healthy society will provide healthy workers and developed organisations.
e. Employment opportunities:
Though capital-intensive technology develops an organization, it must also
ensure enough employment opportunities for the people of its community.
f. Optimum utilization of resources:
Physical and financial resources are provided by the community members. It
becomes the duty of business enterprises to optimally utilize these resources
to produce maximum output at minimum cost.

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g. Social programmes:
Business organizations should conduct social programmes like career
counselling and provide career opportunities to people.
h. Solve social problems:
Business enterprises can solve social problems like untouchability, poverty,
racism etc. as much as non-business organization can.
i. Conform to business ethics:
Business houses should conform to business ethics and a socially acceptable
code of conduct. Unfair practices like hoarding, speculation and adulteration
should be avoided.

5. Organizations:
Organizations of the same trade compete for scarce resources.
They should be responsible towards each other in the following areas:
a. Healthy competition:
Firms should avoid cut-throat competition. Healthy competition will
promote interests of firms in the same industry.
b. Sharing of resources:
The resources being scarce, organizations should share them to carry their
productive and administrative processes smoothly.

6. Government:
Government provides numerous facilities to business enterprises like
transportation, electricity, water and sewerage, police and fire protection etc.
Business organizations should also be responsible towards the Government.
a. Pay taxes:
Firms should submit their yearly returns of income and pay taxes
judiciously. Taxes are a source of revenue for the Government used for
promoting business interests.

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b. Obey the law:

Government has introduced a number of legislative measures to smoothen

the business operations. The firms should obey the legislative machinery
(income-tax law, company law, labour laws etc.) and support the
Government.

c. Contribute to national goals:

Business objectives should contribute to national goals to promote industrial
image of the country in the international market. This will also strengthen
the foreign exchange reserves.

Compromise between Conflicting Groups:

Different groups want their returns to be maximised from business enterprises.
While owners want maximum profits, shareholders want maximum dividends,
workers want high wages, consumers want.

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 CSR in Today’s World

CSR as a strategy is becoming increasingly important for businesses today

because of three identifiable trends:
• Changing social expectations
Consumers and society in general expect more from the companies whose
products they buy. This sense has increased in the light of recent corporate
scandals, which reduced public trust of corporations, and reduced public
confidence in the ability of regulatory bodies and organizations to control
corporate excess.

• Increasing affluence
This is true within developed nations, but also in comparison to developing
nations. Affluent consumers can afford to pick and choose the products they
buy. A society in need of work and inward investment is less likely to enforce
strict regulations and penalize organizations that might take their business and
money elsewhere.

• Globalization
The growing influence of the media sees any ‘mistakes’ by companies brought
immediately to the attention of the public. In addition, the Internet fuels
communication among like-minded groups and consumers—empowering them
to spread their message, while giving them the means to co-ordinate collective
action (i.e. a product boycott).
These three trends combine with the growing importance of brands and brand
value to corporate success (particularly lifestyle brands) to produce a shift in the
relationship between corporation and consumer, in particular, and between
corporation and all stakeholder groups, in general.
The result of this mix is that consumers today are better informed and feel more
empowered to put their beliefs into action. From the corporate point of view, the
market parameters within which companies must operate are increasingly being
shaped by bottom-up, grassroots campaigns. NGOs and consumer activists are
feeding, and often driving, this changing relationship between consumer and
company.
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CSR is particularly important within a globalizing world because of the way
brands are built—on perceptions, ideals and concepts that usually appeal to
higher values. CSR is a means of matching corporate operations with
stakeholder values and demands, at a time when these values and demands are
constantly evolving.
CSR can therefore best be described as a total approach to business. CSR creeps
into all aspects of operations. Like quality, it is something that you know when
you see it. It is something that businesses today should be genuinely and
wholeheartedly committed to. The dangers of ignoring CSR are too dangerous
when it is remembered how important brands are to overall company value;
how difficult it is to build brand strength; yet how easy it can be to lose brand
dominance.
CSR is, therefore, also something that a company should try and get right in
implementation.

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 Implementing Corporate Social Responsibility

CSR is about common-sense policies that represent a means of integrating a

complete ‘social perspective’ into all aspects of operations. The goal is to
maximize true value and benefit for an organization, while protecting the huge
investments corporations make today in their brands.
CSR asks companies to ensure their business operations are clean and equitable,
and contribute positively to the society in which they are based. Otherwise, they
leave themselves open to too much danger from a potential consumer backlash.
CSR is good business sense, and a total approach to doing business, in a
globalizing world where companies are increasingly relying on brand strength
(particularly global lifestyle brands) to add value and product differentiation,
and where NGO-driven consumer activism is increasing.
Many believe the issue of how corporations integrate CSR into everyday
operations and long-term strategic planning will define the business
marketplace in the near future. It will become a key point of brand
differentiation, both in terms of corporate entities and the products that carry
their brands.

Key steps on the road to integrating CSR within all aspects of operations
include:
• Ensure the commitment of top management, and particularly the CEO, is
communicated throughout the organization
• Appoint a CSR position at the strategic decision-making level to manage the
development of policy and its implementation
• Develop relationships with all stakeholder groups and interests (particular
relevant NGOs)
• Incorporate a Social or CSR Audit within the company’s annual report
• Ensure the compensation system within the organization reinforces the CSR
policies that have been created, rather than merely the bottom-line
• Any anonymous feedback/whistle-blower process, ideally overseen by an
external ombudsperson, will allow the CSR Officer to operate more effectively

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Corporations today are best positioned when they reflect the values of the
constantly shifting and sensitive market environment in which they operate. It is
vital that they are capable of meeting the needs of an increasingly demanding
and socially-aware consumer market, especially as brands move front and
center of a firm’s total value. Global firms with global lifestyle brands have the
most to lose if the public perception of the brand fails to live up to the image
portrayed.
Integrating a complete ‘social perspective’ into all aspects of operations will
maximize true value and benefit for an organization, while protecting the huge
investments companies make in corporate brands.

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 Corporate Social responsibility in India

• Most companies are not doing any CSR

• Many companies are only making token gestures towards CSR in
tangential ways such as donations to charitable trusts or NGOs, sponsorship of
events, etc.
• Most companies believe that charity and philanthropy equals to CSR;
very few companies are using their core competence to benefit the community.
• Most companies use CSR as a marketing tool to further spread the word
about their business. For instance, donation of a token amount to some cause on
purchase of a particular product. The fact that companies are hiring advertising
agencies for their CSR further highlights this.
• Only Few Indian companies (from this study) publish a Corporate
Sustainability Report to measure and assess the impact of their business on the
environment.
• Very few companies openly state the processes followed by them, the
damage caused by these processes, and the steps taken to minimize this damage.
• Very few companies state how much they spend on CSR. There is no
mention of the amount spent in any of their balance sheets or annual reports.
Most companies just list and describe their CSR activities and seem to be
spending minimal amounts on CSR.
• Very few companies are engaged in CSR activities in the local
communities where they are based.
• Very few companies have a clearly defined CSR philosophy. Most
implement their CSR in an ad-hoc manner, unconnected with their business
process.
• Most companies spread their CSR funds thinly across many activities,
thus somewhere losing the purpose of undertaking that activity.
• Most companies appear reluctant to themselves fulfill their CSR unless it
is mandatory by law.
• Generally speaking, most companies seem either unaware or don’t care
about CSR. However, all companies can be considered to be an upward learning
curve with respect to CSR and it is expected that the situation will improve.

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 Measure for applying Corporate Social Responsibility
 Sustainability reporting
It is recommended that every company should publish a separate Corporate
Sustainability Report (as per the Global Reporting Initiative (GRI) framework)
along with their Annual Report. At the very least, every company must include
a Corporate Sustainability section in its Annual Report (similar to the
mandatory section on Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo).
 CSR philosophy to be defined and articulated
Every company must clearly define its own CSR philosophy and objectives,
stating which issues it intends working on or contributing to. It is recommended
that a company first takes up areas that directly concern its business processes,
and thereafter any other related or unrelated issues. These can also yield
strategic benefits to the company.
 Minimum annual CSR expenditure
Every company must spend a minimum of 0.2% of its annual income on CSR
activities. The CSR spending of a company should not be linked to the profit
made by the company because this would vary from year to year and the CSR
activities would thus not be consistently maintained.
The scale of operations of a company and its impact is connected with its sales,
and not with its profits. The larger the company, the greater is the damage it is
doing to the environment. Conversely, the greater is the company's ability to do
good.
 Protection and restoration of the environment
Every company must be engaged in CSR activities that minimise its harm to the
environment, and which help restore damage done to the environment because
of the company. For example, all companies should use energy-efficient
technologies for their factories and offices, and adopt rainwater harvesting
irrespective of the production process they are engaged in.
 Employment for marginalized groups
Every company should provide inclusive employment opportunities and include
the physically-challenged and marginalized groups in their workforce. The
number of employment opportunities offered to such groups should be stated in
the Annual Reports as is done by Public Sector Undertakings.

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  Local community development
It is recommended that a company first undertakes projects in the places where
it functions, and helps those local communities and environments that are
affected by its work.
 Use of core competence
Every company should use its core competence to benefit its stakeholders and
society. For instance, banks can use their expertise to identify and counsel
debtors who are likely to run into financial trouble
 Extending profile and area of businesses
A company should attempt to stretch its business beyond its existing profile and
into areas where it does not normally work so as to reach out to under-served
groups and populations. While this may sometimes mean smaller profit margins
or marginal losses for the company, it will invariably result in valuable business
learning's as well as effective CSR for the company.
 Developing internal CSR implementation systems
A company may choose to develop an in-house CSR team or division that
undertakes the CSR activities for the company. This is desirable as it leads to
greater sensitization and awareness within the company about it's processes,
responsibilities, role, etc. and leads to the internalization of the company's CSR
philosophy.
Instead of contributing to the trust of the CEO or the promoter family, a
company should set up its own trust/foundation as a matter of proper business
ethics.
It is recommended that a company set up a committee that includes an external
Director, an NGO and local stakeholders for selecting, monitoring and
evaluating its CSR activities.
 Focused CSR activities for greater impact
It is recommended that a company identifies a few issues for it's CSR activities
and works on these areas for a sustained period of time so that measurable
results and improvements can be achieved, rather than undertaking or
supporting several small initiatives across several areas thereby reducing
effective impact.

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 Arguments of CSR

Arguments offered in favor of CSR can be broadly split into two camps—moral
and economic.
1. A moral argument for CSR
While recognizing that profits are necessary for any business entity to exist, all
groups in society should strive to add value and make life better. Businesses
rely on the society within which they operate and could not exist or prosper in
isolation. They need the infrastructure that society provides, its source of
employees, not to mention its consumer base. CSR is recognition of that inter-
dependence and a means of delivering on that obligation, to the mutual benefit
of businesses and the societies within which they are based:
CSR broadly represents the relationship between a company and the wider
community within which the company operates. It is recognition on the part of
the business that ‘for profit’ entities do not exist in a vacuum, and that a large
part of any success they enjoy is as much due to the context in which they
operate as factors internal to the company alone.
Charles Handy makes a convincing and logical argument for the purpose of a
business laying beyond the goals of maximizing profit and satisfying
shareholders above all other stakeholders in an organization:
The purpose of a business is not to make a profit, full stop. It is to make a profit
so that the business can do something more or better. That “something”
becomes the real justification for the business….It is a moral issue. To mistake
the means for the end is to be turned in on oneself, which Saint Augustine called
one of the greatest sins….It is salutary to ask about any organization, “If it did
not exist, would we invent it?” Only if it could do something better or more
useful than anyone else” would have to be the answer, and profit would be the
means to that larger end.
Advocates of CSR believe that, in general, the goal of any economic system
should be to further the general social welfare. In advanced economies, the
purpose of business should extend beyond the maximization of efficiency and
profit. Increasingly, society expects businesses to have an obligation to the
society in which they are located, to the people they employ, and their
customers, beyond their traditional bottom-line and narrow shareholder
concerns.

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At a minimum, businesses operating in a community benefit from the
infrastructure of that community (tangible, practical elements such as the roads,
other transport infrastructure, the police, firefighters, etc) as well as more
intangible benefits, such as a safe or clean environment.
But, in most cases, businesses also draw their most important resource, its
employees, largely from the local community. Any business will be more
successful if it employs a well-educated workforce that can attend good
hospitals if they become sick, and who have grown up in a positive
environment. This is not to mention consumers, also often members of the local
community, without whom no business could survive.
CSR advocates point out that no organization exists in isolation. They believe
that businesses, without exception, have an obligation to contribute as well as
draw from the community, on which they rely so heavily.

2. An economic argument for CSR

An economic argument in favor of CSR can also be made. It is an argument of
economic self-interest that there are very real economic benefits to businesses
pursuing a CSR strategy—and is designed to persuade those business managers
who are not persuaded by the moral case. Proponents of this argument believe
that CSR represents an holistic approach to business.
Therefore, an effective CSR policy will infuse all aspects of operations. They
believe the actions corporations take today to incorporate CSR throughout the
organization represent a real point of differentiation and competitive market
advantage on which future success can hinge:
CSR is an argument of economic self-interest for a business. In today’s brand-
driven markets, CSR is a means of matching corporate operations with
stakeholder values and demands, at a time when these parameters can change
rapidly. One example is a company’s customers: CSR adds value because it
allows companies to better reflect the values of this important constituent base
that the company aims to serve.
CSR covers all aspects of a business’ day-to-day operations. Everything an
organization does in some way interacts with one or more of its stakeholder
groups, and companies today need to build a watertight brand with respect to all
stakeholders. Whether as an employer, producer, buyer, supplier, or investment,
the attractiveness and success of a company today is directly linked to the
strength of its brand.

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CSR affects all aspects of all operations within a corporation because of the
need to consider the needs of all constituent groups. Each area builds on all the
others to create a composite of the corporation (its brand) in the eyes of all
stakeholder groups.

3. Arguments against corporate social responsibility

If the arguments for a socially responsible approach were widely accepted,
nobody would even using the label "CSR" because everyone would be doing it.
Those of us who spend our time marshalling the case for would do well to
spend a little time hearing the case against, and considering what should be the
response.
Of course, one of the challenges in considering cases "for" and "against" CSR is
the wide variety of definitions of CSR that people use. We assume here we are
talking about responsibility in how the company carries out its core function -
not simply about companies giving money away to charity.
Below are some of the key arguments most often used against CSR and some
responses.
• Businesses are owned by their shareholders - money spent on CSR by
managers is theft of the rightful property of the owners
• The leading companies who report on their social responsibility are
basket cases - the most effective business leaders don't waste time with this stuff
• Our company is too busy surviving hard times to do this. We can't afford
to take our eye off the ball - we have to focus on core business

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 Role of NGOs in Corporate Social Responsibility

Along with social enterprises, microfinance institutions and donors,

corporations play a large role in raising money and resources for NGOs. Many
international corporations can today rival entire nations when it comes to raising
resources and influence in both India and international territories.
In the last four years, Corporate Social Responsibility (CSR) in India has
acquired new impetus with the Companies Act 2013. The Act defines that
companies with a net worth of Rupees 500 crores or more, or a turnover of
Rupees 1,000 crores or more, or earning a net profit of Rupees 5 crores or more
must spend a minimum amount on corporate social responsibility.
CSR: support charities to fulfil legal obligation while generating goodwill
For many of India's most loved brands, 'giving back' is not about fulfilling this
legal obligation of having to donate to charity, but generating goodwill in their
respective communities. These are times when CSR and NGOs go hand-in-
hand. Companies, therefore, must spend in areas like literacy, women
empowerment, environment, water, sanitation, child rights etc. Most companies
around the world allocate 100% of their resources before they consider the need
of CSR. The same holds true for India, and even after allocating CSR funding,
and engaging employees with a mission of social good, companies struggle with
their project's sustainability.

NGO intervention in corporate social responsibility -

Many companies simply do not have the bandwidth (employees, consultants
and supervision) to undertake consistent CSR implementation. These companies
not only need to spend on CSR, but also on CSR training for their employees,
or adding manpower dedicated to CSR capability. NGO’s in India pitch a
streamlined, customised solution to these corporations. For NGOs, corporates
are not only a source of consistent funding but also access to strategic resources.
An IT giant, for example, can provide technology, processes, and support for
educational initiatives.

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A look at India's NGO sector -
India possibly is home to the world's largest number of active not-for-profit
NGOs. At last count, India had 31 lakh NGO - one NGO for about 400 Indians.
With the boom in CSR funding, this number can cross 40 lakh - considering that
there are thousands of public and private sector companies worth Rs.15,000 to
18,000 crores annually. This number doesn't even include India's actual number
of NGOs, as many aren't formally registered under the Societies Registration
Act 1860, or any other Acts pertaining to non-profit organisations.

How does a company identify the right NGO for CSR intervention?
With this veritable ocean of NGOs, it isn't easy to pick the right one for a
company to engage in CSR intervention. Companies not only must allocate
funds, but also work with the NGO on CSR interventions. This requires the
need for effective monitoring and evaluation mechanisms in place. Many large
corporates, like Godrej, Reliance, Wipro, Infosys, Tata, and the Birlas have
their established their own Foundations and Trusts to achieve this.

It is critical for a company to rate an NGO on parameters while shortlisting one

for CSR implementation.
i. Years in operation
It is important for a corporate to work with an NGO that has demonstrated years
of experience and reliability. During this time, it must have mobilised resources,
infrastructure and people for a social cause.
ii. Geography
Companies should preferably look for an NGO near the project area. This not
only ensures easier logistics, but also an intimate understanding of the local
needs, geography, language, culture etc. The NGO preferably must situate
offices or centres with connectivity and other resources in these locations, to
efficiently execute projects.
iii. Reputation
Transparency, accountability and measurable change in a social welfare context
are how an NGO's reputation can be measured. This gives an NGO credibility,
making it trustworthy of using corporate assets and funding for CSR goals.

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iv. Certification (e.g. filing for donation tax return)
Certification allows corporates to assess if an NGO complies with legal norms,
as legal issues can compromise CSR implementation. Certification includes
Income Tax exemption, FCRA, service tax, and also proper internal
documentation in case an audit is requested.
v. Relevant experience
An NGO must have shown work in projects relevant to the corporate's CSR
goals. Coca-Cola India, for example, devotes a substantial amount of CSR
efforts to water sustainability, conservation, and sanitation. These projects must
be corroborated with completion certificates from clients.
vi. Leadership
The NGO's leadership must be well-known promoters, with no legal
proceedings or controversies to their name.
vii. Credentials
An NGOs credentials can also be ascertained via certificates, awards, news
coverage, and membership of NGO and corporate bodies like CII, Chamber of
Commerce etc.
Save the Children: a recognized NGO for CSR initiative
With reference to child rights NGO, Save the Children enjoys a well-earned
reputation, as it is a global pioneer in the field ever since its founder, Eglantyne
Jebb's wrote what would become the blueprint of UN Convention on the Rights
of the Child. The NGO has been preventing child labour through lobbying for
policy reform and stronger legislation while undertaking grassroots missions to
free children from bonded labour. Instead, it empowers these children with
education, job skills, giving India's marginalized children, a new lease of life.
Apart from this Save the Children works to provide healthcare, education and
life-saving aid during emergencies to children.
Today, Save the Children India is a favored partner for India's biggest
corporates. Not only does the NGO have decades of experience in working with
children, but it is also known for transparency and accountability in managing
corporate resources allocated for children's rights.

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Conclusion
The role of NGOs in CSR today cannot be gainsaid. Many corporate donors,
convinced of Save the Children's demonstrated commitment to the cause of
child rights also assist the NGO in further fundraising. Today, Save the Children
is supported by 1,15,000+ individual supporters, 35 corporate and 38
institutional (National and International) supporters. With this new model of
CSR, corporations no longer act as entities which are detached from society but
established mutual support relationships so that both corporations and
communities benefit from each other.

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