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T h e G C N I N d I a T r I - A N N u A l N e w s l e T T e r

The objectives of the series are to promote exchange of innovative ideas and experiences and thereby build a broad-based perspective on addressing some of the key social and environmental challenges of our times. The series is proposed as a platform that will offer alternative public policy pathways besides intensifying our engagements with key stakeholders regionally.

The inaugural was organised in collaboration with Prin. l.N.welingkar Institute of Management

Development & research on the theme ‘how can Csr transform lives? Insights and Practices from India Inc’. The discussions during the session focused on innovative ways in which key stakeholders can provide momentum for effective implementation of the new Csr policies. role of academic institutions, in particular, was discussed that can act as a bulwark in providing curriculum support and sensitisation of its faculty on corporate citizenship issues. some of the experts participating in the panel included P.s. Narayan of wipro ltd, Babu rangaswamy of hewlett Packard, Dr. Anil subba rao Paila of welingkar, Manoj Chakravarti of IIM Bangalore, lopamudra Bhattacharya of Deutsche Bank India and Pooran Chandra Pandey of GCNI. The meeting was attended by 140 participants.

‘Cross over series’, a nationwide advocacy effort of the GCNI to promote the debate around uNGC Principles, will soon be hosted across major cities in India.

Cross-Over Series launched in Bengaluru

President’s Desk

with the rising demand for convergence between societal aspirations and economic objectives from businesses, we find ourselves increasingly being part of an order where businesses are expected to shun their outright profit motives and be guided by the objectives of social and environmental good. such an order highlights the importance of developing and building an ecosystem embedded within ethical and responsible corporate culture, thus making the principles of Global Compact even more relevant in today’s context.

Global Compact Network India, with the moral convening power of the uN

Serving as a platform for networking, knowledge exchange, policy advocacy, cutting edge action research and ‘glocal’ alliances, Global Compact Network India (GCNI) launched its new initiative- ‘Cross-Over Series: Towards Inclusive Learning and Enlightened Leadership’ on 16th September 2014 in Bengaluru.

in the newS in fOCuS MeetingSBusiness Case for Anti-corruption: Call for Collective Action | 6GCNI frames Public Policy Curriculum, lucknow university to teach uNGC principles | 7

GCNI launches Asia Cooperation Project during the Asia/oceania local Network regional Meeting in Dhaka on December 10, 2014 | 7

Interview with Alexandra wrage, President, Trace International | 8

Monthly Meetings | 13in th

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seriesCross-over‘how can CSR transform the world? invest to educate the excluded: insights and Practices from india’

‘Paradigm Shift in Corporate Social Responsibility: india-eu experiences and learning’

people, especially those from the marginalised communities are brought into mainstream education. The meeting also witnessed a special address by Gunilla Bjorner and ravi Pratap singh of Aide-et-Action International and Pooran Chandra Pandey, GCNI. It was attended by 100 participants.

The discussions during the event centered on the theme of ‘how can Csr transform the world? Invest to educate the excluded: Insights and Practices from India’, highlighted the need to mainstream the excluded and marginalised communities by addressing the gaps and challenges in the education sector. The panel comprised of experts from the industry, uN and NGo and included ruchira Gujral of uNICeF India Country office; Kumar Anurag Pratap of Capgemini India and umi Daniel of Aide-et-Action International. Amitabh Behar of NFI moderated the panel discussion. The proceedings of the day focused on the important role of the corporate in taking forward the education agenda among the excluded section of society through their Csr activities and other programmatic interventions. During the discussion the panel members highlighted that companies have a greater role to play in today’s context to take forward development agenda. The experts emphasised that through their innovative Csr activities, the companies can ensure that education programmes are expanded to include the excluded and that more and more

The panel discussed on issues of how can Csr help companies effectively serve the society and what are the good practices across India and european union that can effectively be learned and leveraged by each other. Moderating the discussion, lalit Kumar Gupta, Managing Director & Ceo, essar oil limited emphasised on the need of individual and company level efforts to make Csr more widespread and inclusive and included senior experts such as Marina stefanova of Global Compact Network Bulgaria, Dr. Yogendra saxena of The Tata Power Company limited, rufina Fernandes of GTl limited, Kumar Anurag Pratap of Capgemini India, srinath Komarina of Yes Bank and Chitra Pandit of The Akanksha Foundation. Pooran Chandra Pandey of GCNI introduced the theme and set the agenda for the meeting. 75 participants from various stakeholder groups attended the meeting.

The second edition of the ‘Cross-Over Series: Towards Inclusive Learning and Enlightened Leadership’ was held on 18th September 2014 in collaboration with Aide-et-Action International in New Delhi.

The third edition of the ‘Cross-Over Series: Towards Inclusive Learning and Enlightened Leadership’ was concluded in Mumbai on 26th September 2014 in collaboration with Essar Foundation on the theme ‘Paradigm Shift in Corporate Social Responsibility: India - EU Experiences and Learning’.

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seriesCross-overtransforming education through CSR

The speakers and experts at the fourth edition of the Cross-over series in Chennai on 30th october 2014 included srimathi shivashankar, Associate Vice President, Diversity and sustainability, hCl Tech; Dr. Catherine Bernard – Founder, serFAC; rajashree Natarajan, Coo, Cognizant Foundation; Amruth. B.r Co-founder, Ceo, Vita Beans & Guru-g learning labs and Pooran Chandra Pandey, executive Director, Global Compact Network India. The experts deliberated on the role of key stakeholders in propagating education in the society. Pandey in his opening address quoted that education can bring a revolution and transform the entire world. Therefore, it is important to bring together key stakeholders to bring about fundamental changes that helps build a new future. he also reiterated that companies through Csr can play an important role in supporting the cause and taking education to the excluded.

During the meeting the panel deliberated on various strategies that could be adopted to ensure that children from all economic and social backgrounds have effective access to mainstream education. The meeting discussed on the probable role that Corporate could assume to take forward this agenda through their Csr activities.

some of the observations made in the panel discussion included;

• Initiatinge-learningandutilisingtraditionalmethodslikeTherukutth–(street Theater) for creating awareness on social issues, environmental issues, health and hygiene practices to the children.

• Valuesandimportanceofeducationcanbetaughttochildrenthroughstory telling – inculcating the habit of planning their ambitions and love for learning at their young age.

• TheneedfornetworkingwithNGOsforgreateroutreachwiththecommunity.

The panel highlighted that the innovations around Csr initiatives are key to advance inclusion of communities and it is through these innovations that companies can play a vital role in transforming India.

Global Compact Network India jointly with Aide-et-Action International organised the fourth edition of the Cross-Over Series in Chennai on 30th October 2014 on the theme of ‘Transforming Education Through CSR’.

and mandate to take forward the Ten universal Principles, has over these 4 months innovated around interventions to meet the demands of the key stakeholders in the society. some of the most significant steps in this regard include the launch of Asia Pacific resource Centre on responsible Business Practices and strategic engagement with the Academic Institution. These two initiatives mark the beginning of a new phase of engagement by GCNI with key stakeholders, through innovative programmes and knowledge delivery mechanisms.

During the intervening period, GCNI also began its engagement with key stakeholders on contemporary issues through the ‘Cross-over series’, a platform towards inclusive learning and enlightened leadership. The series was launched in Bengaluru in september and since then has been organised in the other cities, including New Delhi, Chennai and Mumbai. It also organised a workshop on Anti-Bribery, examining the need to strengthen compliance programme in companies operating in India. To celebrate the successful completion of the first phase of the Collective Action Project (CAP) in India, GCNI held a conference on the theme of ‘Business Case for Anti-corruption: Call for Collective Action’, during which the learnings and findings of the project were shared with key stakeholders. I am also pleased to announce that during this period Global Compact Network India jointly with IICA and GIZ organised a three city ‘seminar on Corporate social and Business responsibility’ in hyderabad, New Delhi and Jaipur.

I am also delighted to inform GCNI launched a pioneering regional co-operation project in Dhaka on December 10, 2014 on the sidelines of uNGC’s annual regional meeting. The regional co-operation project titled ‘regional leadership through uNGC Principles: Cases and Practices of Nine local Networks in Asia’ highlights the key initiatives of 9 uNGC Networks in Asia, i.e., Bangladesh, China, India, Japan, Korea, Maldives, Nepal, Pakistan and sri lanka, to take forward the uNGC mandate and build future co-operation in Asian region, through such Asia wide intervention led by our own India local Network.

The future holds good promise for us and GCNI is working towards leveraging the opportunity to drive and create momentum around the ten universal principles not only in India but also at the regional and global levels, driving next generation of collaborations and partnerships in the run up to post 2015 global development regime.

I would also like to wish members and well-wishers of GCNI a very happy new year and look forward to your continued support to GCNI, as we move ahead in strengthening this global movement in the country.

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Companies Act, 2013

Apart from the provisions requiring mandatory rotation of auditors [§139], appointment of independent directors and placing great emphasis on their integrity, impartiality and autonomy [§149], the Act also makes ‘fraud’ a ground for winding-up a company. Thus, if it is found that a company was formed for a fraudulent or unlawful purpose or its affairs are found to be conducted in a fraudulent manner, it may be wound up [§271].

The term ‘fraud’ in relation to affairs of a company has been explained in §447 of the new Act rather broadly and includes ‘any act, omission, concealment of any fact or abuse of position committed by any person or any other person with the connivance, in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholder or its creditors or any other person, whether or not there is any wrongful gain or loss’. while the provision is yet to take effect, it is being seen as a robust measure to check, among others, acts of corruption.

Auditors found to have acted in a fraudulent manner or abetting / colluding in a fraud can be removed [§140] and if they contravene any provisions of the Act to deceive a company they can be punished with imprisonment or imposition of a hefty fine [§147].

transparency and accountability in operations, listed companies (and other companies, as prescribed) are required to constitute an Audit Committee, which would, among others, be required to evaluate internal financial controls and risk management systems [§177]. Further, if it is found that the accounts of a company were prepared in a fraudulent manner or that the affairs of a company were mismanaged during a particular period – casting a doubt on the reliability of financial statements – the accounts may be reopened [§130]. Investigations relating to frauds pertaining to a company shall be undertaken by the serious Fraud Investigation office [§211].

These are only some of the several provisions which have been introduced in the new Act for placing special statutory emphasis on ethics, integrity and governance in corporate conduct. Quite a few of these provisions are being seen as aimed at combating corruption and fraud. If imbibed and followed in the right earnest, these provisions would also help companies protect and nurture their corporate reputations and the interests of their shareholders. one also hopes that once these provisions take effect, a strong enforcement mechanism is put in place to combat corporate corruption.

Priyanka Sharma Goswami is a Partner with dua associates, a leading full service law firm in India. She is based at the Firm’s offices in New delhi and practices in the field of Litigation & arbitration. Her practice focuses on matters relating to constitutional and administrative law, contract, specific relief, environmental law, white collar crimes and anti-corruption.

Echoing the new Government’s focus on ‘maximum governance’ and the 10th principle of the UN Global Compact, the new Companies Act of 2013 in India has introduced several provisions that focus on improving internal process of companies, good governance and combating corrupt conduct. In a departure from the days of the License Raj however, the new Act does not make the regulatory framework too cumbersome or unduly restrictive.

with the aim of improving internal financial controls, the Act stipulates that the making of false statements in any return, report, financial statement etc. is punishable with imprisonment and imposition of fine [§448]. For ensuring

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Global Compact Network India and TRACE International jointly organised a half day Anti-Bribery workshop on November 5, 2014 in New Delhi.

TrACeAnti-Bribery workshop

event

The focus of the Anti-Bribery workshop, organised jointly by Global Compact Network India and TrACe International, on November 5, 2014 in New Delhi was to discuss the merit for businesses to be compliant. The workshop was designed to bring forth some of the anti-corruption best practices adopted by corporate houses worldwide which hold relevance in the Indian context. some of the eminent speakers in the workshop were eileen radford, Director, Advisory services, TrACe International, Parul Nanabhai, Ashok Pratap & Co. Barristers & Advocates, Priyanka sharma Goswami, Partner, Dua Associates, Kumar Bantesh, regional head-legal, ACC limited, Pradnya shinde, regional, Csr Coordinator, holcim ltd. and Inder Mohan singh, Director-legal, honeywell Automation India ltd.

The introductory session focused on some of the issues faced by multinational companies trying to establish their businesses in India. During the session eileen radford, Director, Advisory services, TrACe International highlighted the importance of u.s. Foreign Corrupt Practices Act and united Kingdom Bribery Act and why they matter to companies doing business in India. Parul Nanabhai, Ashok Pratap & Co. Barristers & Advocates and Priyanka sharma Goswami, Partner, Dua Associates in their presentations highlighted the anti-bribery regulatory and enforcement environment in India and the

recent developments under the Companies Act 2013 in India, u.s. Foreign Corrupt Practices Act and uK Bribery Act. Goswami in her presentation stressed on the key aspects of the new Companies Act 2013 and the provisions within the Act that provide for stricter anti-corruption and anti-bribery measures.

This session was followed by a session on ‘why Companies in India Must strengthen their Compliance Programs’, during which some of the good practices followed by companies to overcome graft and bribery were brought to the forefront. The companies, which participated in this discussion, were ACC limited, holcim limited and honeywell Automation India ltd. They listed their internal ethical code of conduct, anti-graft employee training initiatives and value chain management, which has a direct impact on transparent

business operations. During the session the presenters elaborated on the key tools adopted by the companies in ensuring compliances in their operations.

This session was followed by an introductory session on ‘how TrACe Tools and services Can help Companies Meet International Compliance standards’. During the session eileen radford, Director, Advisory services, TrACe International elaborated in the various tools and services that Trace provides to ensure compliance by companies. The session also included presentation by sidharth Bhatia, Three D Integrated solutions ltd., who spoke at length about the Trace Certifications and how it enabled his company to strengthen compliance measures.

Ashok Kumar Pavadia, Joint secretary, Department of Public enterprises, Ministry of heavy Industries and Public enterprises in his valedictory address spoke about the changing legal landscape in India pertaining to anti-corruption. he resounded the need of clean business and said that the government was committed to achieve this goal. The event ended with a vote of thanks by Pooran Chandra Pandey, executive Director, GCNI, who in his address spoke at length about the ‘role of uN Global Compact Network India in Anti-Corruption efforts’ and highlighted the initiatives being undertaken by Global Compact Network to take forward anti-corruption in India.

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Business Case for Anti-corruption: Call for Collective ActionTo celebrate the successful completion of one of its Anti-corruption projects in India, Global Compact Network India held a conference on 28th November, 2014 at The lalit, New Delhi titled ‘Business Case for Anticorruption: Call for Collective Action’. The Conference shared the learnings and findings of the Collective Action Project (CAP) in the past four years and was attended by business leaders from both public and private sector companies, as well as representatives from civil society. stakeholders shared challenges, dilemmas and importance of developing a Business Case for Anti-corruption and linking transparency initiatives to profits. The Conference marked a way-forward by scaling up the Anti-corruption Collective

Action Agenda through the launch of GCNI Center of excellence for Transparency and ethics in Business in India.

Post the plenary session which linked global anti-corruption initiatives to the anti-corruption collective action agenda in India, the mantle was taken over by Ceos of prominent national and multinational companies, on the non-negotiables vis-à-vis transparency in business. The Ceo roundtable was enlightening, candid and appreciated by all stakeholders present.

Post lunch the conference moved into specific sessions, which were tailored around the initiatives that the Collective Action Project in India had taken up in its

four years of operation. Panel discussions deliberated on strengthening Anti-corruption efforts in Indian Policy regime in light of uNCAC; explored Business Case for Transparency in Value Chain & supplier Code of Conduct and finally deliberated on the issue of Procurement and developing a Business Case for it, since there seems to exist a policy paralysis around the issue in India.

The consensus emerging from the Conference was that more concrete forms of organic Anti-corruption Collective Action Initiatives need to emerge from India, and these initiatives have to be directly linked to business profits to be of any serious reckoning.

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gCni frames Public Policy Curriculum, lucknow university to teach ungC principlesIn its unique contribution to strengthen academics in the country and advance ten universally accepted principles of the united Nations Global Compact, GCNI has taken yet another thought leadership to set up an interdisciplinary curriculum for Public Policy programmes both at the undergraduate and post-graduate levels for lucknow university, one of the oldest and leading universities in India. These programmes aim at opening doors of public policy issues and concerns to the students who can subsequently learn and embrace among other things value based practices and responsible conduct in transforming institutions that they would go on to serve in future. The university through these programmes will also teach a module on principles of Global Compact and its relevance in a fast evolving and globalised workplace, market place and community in a bottom up policy influence approach.

The Public Policy programmes both at the graduate and post graduate levels have been launched by the lucknow university and have been well received, which is reflected in enrollments across these two levels and continue to gain traction bringing businesses, academic, government and non-governmental organisations together on intersection of public policy and other disciplines of academic pursuits.

speaking on the development, Dinesh K sarraf President GCNI and Chairman & Managing Director, oil and Natural Gas Corporation limited said, “Academic Institutions are key to expand Ten universal Global Compact Principles and values across the value chain, and I along with my industry colleagues invite you to join the world’s largest corporate citizenship movement, as its member”.

The curriculum on Public Policy has been duly vetted by academic council of the university and other viable options are being explored for seeking out partnerships and collaborations with leading institutions in the country to provide a well structured teaching, research and practice through the public policy programme.

GCNI has also recently announced its strategic engagement with universities, management institutes and academic institutions with offerings of unique value propositions in the country in a bid to make them partners and collaborators in championing the ethos and spirit of the Global Compact principles through teaching, research, training and practice approaches.

gCni launches Asia Cooperation Project during the Asia/Oceania local network Regional Meeting in Dhaka on December 10, 2014Global Compact Network India launched its Asia Collaboration Project titled ‘regional leadership Through uNGC Principles: Cases and Practices of Nine local Networks in Asia’ during the Asia/oceania local Network regional Meeting in Dhaka, Bangladesh on December 10, 2014. The project was launched in the presence of Dr. Gowher rizvi, International Affairs Adviser to the Prime Minister of Bangladesh, Dr. Atiur rahman, Governor of Bangladesh Bank, h. e. hanne Fugl eskjær, Ambassador, embassy of Denmark, Bangladesh, Farooq sobhan, Former Deputy Permanent representative of Bangladesh to the united Nations and representative, Global Compact Network Bangladesh, walid Nagi, head - local Networks, uNGC, New York, shahamin Zaman, Contact Person of Global Compact Network Bangladesh and Pooran Chandra Pandey, executive Director, GCNI.

Asia cooperation is the first such unique

exercise involving nine local Networks of Bangladesh, China, India, Japan, Korea, Maldives, Nepal, Pakistan and sri lanka in Asia capturing past, present and future of their leadership through uNGC principles.

expressing his views on the regional project, Dinesh K sarraf, President GCNI and Chairman & Managing Director, oil and Natural Gas Corporation limited said, “The cases from the regional local Networks are unique and diverse and yet bring out a common approach to their work at their country levels. each of the participating Networks in the regional cooperation project has focused its work on a broad range of issues including sustainability, Csr, human rights, CoP and good governance. Therefore the deeper engagement of the regional peers would not only strengthen them by multiplying their mutual strengths but would also bring in a greater synergy

of purpose and common understanding of uNGC principles at the entire Asia Pacific level’.

The Asia cooperation has been implemented under GCNI’s latest initiative ‘Asia Pacific resource Centre on responsible Business Practices’ and further efforts are currently underway to work at the Asia Pacific level, leveraging interface between businesses and local Networks in the region of strategic importance.

The meeting also discussed on various issues including governance structure, challenges and opportunities faced by the regional networks and exploring how the Global Compact hQ and local Networks can better collaborate in their efforts to engage companies for taking forward the ten universal principles.

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What is your view from the global perspectives on India Inc. complying with the anti-graft law? are there adequate safeguards to protect against bribery and corruption risks?

The Indian legislation does not provide sufficient safeguards to prevent or even to discourage bribery. The Prevention of Corruption Act does not expressly seek to punish corrupt acts of private parties, except to a limited extent, through section 9 (dealing with persons accepting gratification to use their influence to sway a public servant in the conduct of an official act) and section 12 (dealing with abetment, pursuant to which a person offering a bribe could be punished).

There is nothing that directly prohibits a private person from offering a bribe or engaging in other corrupt practices. The PC Act has no provision to deal with cases where Indian citizens engage in corrupt activities with a foreign public official.

The Act also overlooks the recovery of proceeds of corruption or withholding of assets of those who bribe.

What are your thoughts on anti-corruption business risks and the unique role of civil society in addressing this issue?

TrACe’s core mission is to advance commercial transparency and to provide companies with practical anti-bribery tools and resources. Civil society plays a unique role in advancing commercial transparency as it includes entities that stand between the people who are affected by corruption and the actors who commit unlawful acts. without civil society oversight government officials can make bribe demands with relative impunity. Civil society plays two roles in addressing corruption – it becomes the voice of the people and also monitors leaders and companies who may be engaging in corrupt acts. TrACe supports civil society by developing partnerships with organisations worldwide that provide a wider audience with access to our tools and resources.

India along with many countries have ratified United Nations Convention against Corruption, do you believe there has been a visible change in the global corporate attitude towards corruption post this convention.

Yes, the uNCAC has been in force for over a decade and, during this time, there has been a significant improvement in the private sector’s

alexandra Wrage, President, Trace International. She holds numerous committee positions, including Chair of the anti-Corruption Committee of the aBa’s International Section and Chair of the International Legal affairs Committee of the association of Corporate Counsel. She was also named one of the ‘Canadians Changing the World’ by the Toronto Globe and Mail and received a Women in Compliance ‘Lifetime achievement award for Service to the Compliance Industry.’ Prior to founding TRaCE, Wrage was international counsel at Northrop Grumman where she was responsible for managing and improving the company’s FCPa programme.

attitude toward bribery. That is, corporations are heavily investing in anti-bribery compliance and third party due diligence, and we are seeing a top-level commitment from senior management and Ceos. Many multinational companies now have robust compliance programmes in place and view anti-bribery as a top corporate priority. Nevertheless, I would say that the main catalyst for corporate compliance has been enforcement of the us Foreign Corrupt Practices Act and, more recently, similar other domestic laws. uNCAC and the oeCD Anti-Bribery Convention, however, have nevertheless played a critical role in making anti-corruption a global issue and in encouraging countries to take a more serious stance against bribery.

Members of the United Nations Global Compact in their CoPs have to report on the internal compliance practices and processes of 10th Principle on anti-corruption. do you think compliance reporting can be an essential preventive step in mitigating corruption risks and identifying red flags in company operations?

Absolutely. Compliance reporting keeps companies honest and supports a more thoughtful approach to compliance which results in more effective compliance programmes and procedures. Companies who are willing to report on internal compliance practices are more likely to detect and respond to compliance gaps and possible misconduct as the reports will be viewed by several

“”

Together, GCni and TrACe are well positioned to help both multinational and local companies uphold Principle 10 of the Un Global Compact.

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parties. In this sense the reports provide for accountability and encourage companies to implement swift remedial measures.

do you think that India has a conducive environment for due diligence and compliance? What are the important aspects of this process?

India is not a signatory to the oeCD Anti-Bribery Convention. since this Convention speaks specifically to business corruption, India should be a signatory as a first step and to announce to the outside world that it does have an environment that is conducive to due diligence and compliance.

while India has ratified the united Nations Convention Against Corruption (uNCAC), and has committed to implementing it through necessary national legislation, the business environment continues to presents substantial bribery risks. In the TrACe Matrix, which measures business bribery risk, India has a score of 80 which indicates a very high risk of bribery. The overall risk score is mainly driven by a high score in domain one (business interactions with government). In other words the number of government touchpoints to register a business or to obtain a building permit/license are very high and make companies vulnerable to bribe demands. To address this issue, the government could work to reduce regulatory burdens and cut red tape. It is also very important that India enforce laws to protect whistleblowers. If people have the courage to step forward with information about serious corruption, they should know that they will not suffer retaliation.

Is there a synergy between the International Norms on compliance and Indian norms on compliance? do the differences and similarities pose any challenges and opportunities to the companies?

we can look to the uNoDC, oeCD, world Bank, and other NGos for international norms on compliance. Broad principles such as tone of the top, internal controls and record keeping, developing an anti-corruption programme with oversight, are all international norms espoused in documents drafted by these organisations. Although there are country-specific compliance challenges, come companies operating in India are indeed following these best practices.

In India, University Grants Commission (UGC) has sent directive to Vice Chancellors of Universities to consider inclusion of anti-corruption studies in curriculum. do you think integration of ethical studies like principles of responsible management (PRME) in education system is of paramount importance in sustaining a robust anti-corruption initiative?

Absolutely, and I am not alone. The united Nations office of Drugs and Crime (uNDoC) and Anti-Corruption Academic Initiative earlier this year organised a conference to address this specific point. our Director of Global strategy and Communications attended, along with professors who have taught anti-corruption courses, or who wish to introduce it to their institutions. The attendees at the conference, who came from all over the world, made it very clear that the interest and motivation is present at many universities across the globe. Teaching anti-corruption has a huge impact on political, economic and social structure. students are future policy makers and business executives and can play a first hand role in shaping social, economic and political structures and values. last year TrACe introduced the TrACe scholar programme, which sponsors three law students from emerging countries to attend renowned universities in the us and uK to obtain a masters of law in anti-corruption studies, for this very reason. our first class of TrACe scholars is studying in the us now – and one scholar is from India!

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India has recently passed the Whistleblower Protection Bill. What are your thoughts on the Whistleblower mechanism and its importance today? What are your thoughts on the issue of ‘whistleblower anonymity’?

whistleblowing procedures and protections are a critical component of effective compliance. In the u.s., many companies self-report or go to prosecutors voluntarily to report possible misconduct which has been discovered through an internal whistleblower report. without whistleblower mechanisms, bribery can go undetected for years. As for anonymity, cultural and political factors influence whether or not whistleblowers really trust that their identity will be protected after they have disclosed misconduct. Many companies have toll free numbers, websites, all of which promise anonymity, but employees will not use them if they don’t have confidence in the system.

What are the key learnings of Trace International, especially the unique country specific experience in working on anti-corruption? What do you think are the unique challenges in emerging markets like India?

over the years TrACe has worked with hundreds of multinational corporations and thousands of sMes worldwide to develop compliance and due diligence best practices. what we have learned is that companies will only implement and embrace compliance if it makes good business sense and this is increasingly true as multinationals want to partner with local companies committed to transparency. The tools developed by TrACe and others have played a critical role in advancing commercial transparency by helping companies address a very complex compliance challenge with practical tools that ultimately provide a competitive advantage.

In emerging markets with high levels of corruption, a company must invest more heavily in compliance and take extra precautions to detect and prevent bribery. As a result of the additional investment in compliance, the profit margin may be slightly lower, but if companies are realistic, these investments can be good for them and good for the community, that deserves quality products and transparent business practices.

What is the synergy that you foresee between Trace International and Global Compact Network India (GCNI) to promote the uptake of anti-corruption in the corporate sector in India?

Together, GCNI and TrACe are well positioned to help both multinational and local companies uphold Principle 10 of the uN Global Compact. The localised knowledge and experience of GCNI in the areas of ethics, corruption, and corporate governance, coupled with TrACe’s subject matter expertise in compliance and best practices creates, I believe, a formidable partnership. Together we can provide companies with anti-bribery tools and resources based on international best practices and local support. What role do you foresee for TRaCE in India and what efforts have you made to realise it?

we are reaching out to both private sector and public sector companies in India to provide them with anti-bribery tools and resources and to help them raise their compliance standards. we are also attempting to work with sMes who are seeking to do business with multinational companies and are thus required to implement international compliance standards. we are also focused on introducing TrACe due diligence services to policy makers who can aid in institutionalising anti-bribery compliance which will create an environment more conducive to due diligence and compliance.

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Based on the recommendations of the sustainability Alliance Partners’ Consultation, held on 27th June 2014, members of the group were invited to form a part of a cohesive working group on sustainability. The working group would set the deliverables and the objectives of the sustainability Alliance Partners and work together towards the achievement of the stated objectives. Around 15 members from Public and Private sector Companies, Academic Institutes, Civil society organisations and Think Tanks, including NTPC, Bhel, sandvik Asia, Indian Institute of Corporate Affairs, Paharpur Business Centre, Novozymes, GAIl, Inesa, BMw Group India, Nokia-Microsoft India, Praxis, Accenture, IsB Mohali, Jindal steel and Power limited, and world energy Council India were invited to form this working group that would identify and tackle specific areas of priority in sustainability.

Global Compact Network India convened the first meeting of the Sustainability Alliance Partner’s Working Group on 15th September 2014.

Sustainability alliance partners’ working group meeting

During the meeting it was felt by the members that the working group should develop the framework of its activities with specific timelines, actions and deliverables—to make the group result-oriented. Pranjal Goswami, head of sustainability, Novozymes was appointed as the Convenor during this meeting, to lead the working group and its activities. The group at the meeting agreed on a common minimum programme that brings together members and stakeholders on a single platform. The components of this programme would leverage the existing strengths of GCNI in research, knowledge management and advocacy to develop an actionable agenda for taking forward the sustainability mandate.

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taster Session workshop on Action and learning

Global Compact Network India and the Partnering Initiative organised the Taster session workshop on Action and learning on 7th November 2014 in New Delhi. The event was an outcome of the shared efforts of Global Compact Network India and The Partnering Initiative to explore partnering good practice in the Indian context and to build capacity to collaborate, continue with an experiential learning session in Action learning. The workshop began with a welcome address by Ashok Chakravorty, Additional

General Manager, NTPC and an opening address by Pooran Chandra Pandey, executive Director, GCNI. Joanna Pyres, senior Associate, The Partnering Initiative in her address gave an introduction about the collective problem solving and partnerships technique and talked about the benefits of the technique both for the organisation and the stakeholders involved. The workshop was facilitated by Matthew Farmer, Managing Director, emerging world, who through an innovative methodology involved the participants in an interactive session to understand a new problem-solving tool that allows organisations to harness the power of collective action and address challenges whilst developing their leadership qualities.

During the event the participants experienced of the power of Action learning by observing and participating in the Action learning group and working together on a real problem presented by shekhar Ambati from Aide et Action on the attrition rate in his organisation. In the session the some key stakeholders representing the NGo sector and companies were invited to form a group and discuss on the issue through a question and answer mode to arrive at a solution for the problem presented. The event concluded with a vote of thanks by Pooran Chandra Pandey, executive Director, GCNI.

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Global Compact Network India in partnership with Ceo water Mandate and DlF Foundation organised the ‘Building the Impact and Integrity of water stewardship Initiatives workshop’ on 13th November 2014 in Gurgaon. The meeting was a part of an international learning initiative led by the Ceo water Mandate and the water Integrity Network with the support of Partnerships in Practice, water witness International, Pegasys and GIZ.

An informal gathering of water experts, the event witnessed the sharing of experiences and insights on how multi-stakeholder water stewardship Initiatives (wsIs) can be improved – to lever greater positive impact for society, and to reduce the risks for stakeholders involved. The workshop focused on sharing the resulting draft integrity framework that emerged from country assessments of water stewardship Initiatives (wsIs) in Africa and latin America. A particular focus was put on understanding what proactive steps and integrity measures could be taken by practitioners to ensure wsIs have a long-term positive impact. The meeting aimed to share and garner feedback on the initial draft of a wsI integrity management

GCNI and service and research Institute on Family and Children (serFAC) jointly organised a three-day mini conference titled ‘Intercepting and Preventing Violence to women/ Girls’ from 8th - 10th August 2014 in Chennai and 28th- 30th August 2014 in hyderabad and a National seminar on ‘Impact of Violence on social Institutions (Family, education and Community) in India’ on 26th and 27th september 2014 in Chennai.

The events included paper presentations and interactive sessions on various critical sub-themes by experts drawn from academia and other professionals, which included assessing the nature of violence at different levels: family, community, work places/businesses and in governments, the need for preventive strategies and prioritising

Global Compact Network India convened the ‘Building the Impact and Integrity of Water Stewardship Initiatives Workshop’ on 13th November 2014 in partnership with CEO Water Mandate and DLF Foundation.

Building the impact and integrity of water Stewardship initiatives workshop

Conference on ‘Violence on women’ with SeRfAC

framework, solicit input on prospective mitigation measures to assure integrity of wsIs and garner feedback on the relative usefulness (and possible omissions) regarding the suite of integrity management support tools for wsI practitioners. The inputs and feedback generated throughout the workshop were incorporated into the wsI integrity management good practice guidelines and supporting tools under development, in order to improve their utility.

The discussions at the meeting were facilitated by Jason Morison, Technical Director, Ceo water, Mandate and witnessed an address by Dr. uddesh Kohli, senior Advisor, uNGC, New York. ritesh Kumar sinha, Associate Director, DlF Foundation welcomed the guests at the event and the closing remarks were delivered by Pooran Chandra Pandey, executive Director, Global Compact Network India. The meeting witnessed the participation of practitioners representing public institutions, communities, civil society, private sector and others who are involved in the development and management of wsIs, and have expertise on water related issues in Bangladesh and India.

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intervention, domestic violence, violence and its psycho-social impacts on family and environments, media & IT violence and its Impact on family and community, poverty and violence – its intergenerational transmission and preventive and protective measures.

some of the experts at the event included Dr. sandra, Ph.D, Associate Professor, Department of social work, stella Maris College, Chennai; Dr. V. swaminathan, Ph.D, Professor in Psychology, head, Department of social work, university of Madras, Chennai and Dr. C. hilda Devi, Ph.D, Professor in sociology, Mother Teresa women’s university, Kodaikanal. The event was attended by representatives from NGos, businesses, government and professionals.

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Global Compact Network India (GCNI), keeping its commitment to support its peers across the world, has been supporting the Kenya local Network of the united Nations Global Compact in rejigging its governance structures and putting a new framework to effectively administer and govern its operations in a more structured and inclusive manner. The Kenya local Network is currently working toward establishing itself as a legal entity and setting in place a new governance mechanism in its bid to take forward an ambitious operational plan and a working agenda going forward.

In a meeting held between contact points of India and Kenya Networks during Annual local Network Forum held in Addis in June 2014, GCNI agreed to guide the Kenya Network with its knowledge, experience and a well functional governance structure. India local Network has been providing support by sharing common areas of concerns, issues, challenges and opportunities about

Global Compact Network India, IICA and GIZ jointly organised a three city ‘seminar on Corporate social and Business responsibility’ on 19th December in hyderabad, 22nd December in New Delhi and 23rd December 2014 in Jaipur. The seminar included two insightful presentations by experts on National Voluntary Guidelines and Csr clauses in the Compact Act 2013.

The presentation on the National Voluntary Guidelines outlined the overview of the development of the National Voluntary Guidelines (NVGs) and dwelt on its overarching nine principles and concepts of economic, social and environmental responsibility on a sustainable and inclusive basis. The presentation emphasised on the content, process and principles of business responsibilities. These were directed towards the capacity building initiatives in field. The presentation also highlighted the holistic approach from cradle to grave theory of the NVGs and the seBI Mandate on the Brr reporting structure and the benefits of reporting.

gCni guides Kenya local network in its governance Process

Seminar on Corporate Social and Business Responsibility

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The presentation on Csr focused extensively on the multi- dimensional aspects relating to section 135 of Indian Companies Act 2013, dealing with Csr. The presentation provided for a clear understanding of the corporate scenario in the country vis-à-vis the new Act and also offered a glimpse of Csr rules governing the clauses.

The dignitaries and experts during the three city seminar included Dr. uddesh Kohli, senior Advisor, uNGC, Chetna Kaura, Chief Programme executive, National Foundation for Csr, IICA, Nandini sharma, Programme Advisor, GIZ, rajan Kumar, DGM(BD), NMDC limited, Atul Dev sarmah, head, Centre for Institutional Partnerships and Corporate Communications, IICA, rijit sengupta, Member, expert Group, IICA-GIZ Business responsibility Initiative, Dr. Pramila sanjaya, hon’ Advisor, society for Integrated Developmental Activities research & Training, Nikhil Pant, Chief Programme executive, National Foundation for Csr, IICA, s s Prasada rao, Director, GITAM university and Pooran Chandra Pandey, executive Director, GCNI.

governance systems and effective structures that lead to Network’s sustainability and generate more confidence among stakeholders who then are more pliable to support the Network by contributing to its functioning and long-term support.

Kenya is the second local Network after Maldives that GCNI has been supporting by sharing its experiences and collective wisdom.

India local Network, the oldest Network of the uNGC, a leader in Asia oceania region contributing 330 signatories to the uNGC from India and with a local membership of over 190 members, is a fast growing Network in the region.

GCNI also recently worked on an Asia regional cooperation project launched in Dhaka on December 10, 2014 involving nine Networks from Asian region.

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meetingsMonThlyCorporate Sustainability Standards and Reporting: Towards Higher Transparency, Compliance and accountability

Sustainable Value Chain Linkages with CSR and PPP

• ‘SustainabilityPracticesofLeadingIndianCompanies:sectoral Initiatives and experiences’

• AnnualReport2013-2014

• 5thSubirRahaMemorialLecture

• StrategicPlanning2015-2020

• ImpactAssessmentofIntegrityPactinIndia

• BusinessCaseforAnti-corruption

publicationsUPCoMinG• 3rdNationalCSRSummit,NewDelhi

• LaunchofPuneChapter,Pune

• CrossOverSeries,NewDelhi

• WorkshoponCSRandSustainability–Thewayforward through uNGC Principles, Bhubaneshwar

• 10thNationalConvention,Bengaluru

• AnnualGeneralBodyMeeting,NewDelhi

• 5thSubirRahaMemorialLecture,NewDelhi

* For more information, kindly visit www.globalcompact.in

eventsUPCoMinG

The monthly knowledge sharing and networking meeting was organised on 28th August 2014. The meeting centered on the theme of ‘Corporate sustainability standards and reporting: Towards higher Transparency, Compliance and Accountability’ and was hosted by Centre for responsible Business (CrB). The presentations at the meeting were given by Dr. Bimal Arora, Chief executive Director, Centre for responsible Business and ritwik Bhaumik, Deputy General Manager – sustainability, Jubilant life sciences limited. Dr. Arora in his presentation traced the history of sustainability standards and reporting—emphasising on voluntary sustainability standards to GrI reporting. ritwik Bhaumik in his presentation highlighted sustainability reporting practices of Jubilant life sciences and how systems and processes have helped business performance. he also highlighted the challenges faced by Jubilant life sciences in the reporting process.

Global Compact Network India in collaboration with Indian society of Agribusiness Professionals (IsAP) organised the monthly knowledge sharing and networking meeting on 20th october 2014. The meeting was based on the theme of ‘sustainable Value Chain linkages with Csr and PPP’, the meeting included a presentation by Dr. sudarshan suryavanshi, Ceo and Dr. satish Chandra, Director – Agriculture, Indian society of Agribusiness Professionals and Poonam Madan, Founder & Managing Director, Inesa Advisory services Private limited. The presentation by IsAP emphasised on the various initiatives undertaken by IsAP to improve the livelihood pattern of small & marginal farming communities by enhancing their access to appropriate and affordable technologies, market related information and linkages. Poonam Madan in her presentation stressed on the how cross sectoral linkages and partnership can have a positive impact on sustainability.

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About National ConventionThe National Convention is a flagship event of the Global Compact Network India, organised for the first time in 2004. The National Convention is the largest platform conceptualised by the GCNI to bring together opportunities for learning and sharing between the member companies and organisations. A one of its kind initiative, the National Convention brings forth diverse companies and dignitaries on one platform to critically discuss the themes of Corporate leadership.

The Convention represents collaboration and wide participation from the various sectors – Public, Private, Non-Profit and Government. The prime focus is to showcase the respective ideologies, methodologies and most importantly, case studies depicting the wide implementation of sustainable innovations and leaderships that is taken up by the various companies and organisations in India.

The National Convention is the actualisation of the GCNI mandate to create platform for demonstrating substantive efforts made by the business communities towards realising the vision of sustainable development in India. It aims at initiating brainstorming among the Indian Companies towards an action oriented strategy for engagement among companies for realisation of a sound corporate sustainable leadership in India. The first meeting of the National Convention committee would be organised soon in Bengaluru.

Date: 14th February 2015

Venue: ITC windsor, Bengaluru

About ITC windsorsituated in a charmed spot, in a serendipitous combination of location and climate, ITC windsor offers a spectacular experience of 5 star luxury hospitality in the city of Bengaluru. Perched at the edge of a promontory in the heart of the city, overlooking the lush expanse of the Bangalore Golf Club, this 5 star luxury business hotel cuts a fine figure against Bengaluru’s city skyline.

A stately manor built during the raj era, ITC windsor’s colonial architecture, its elegant colonnades and balustrades, fluted pillars, Georgian windows, its magnificent chandeliers and period furniture create a stirring ambience of unhurried luxury and old world leisure.

The hotel offers a rich glimpse into the city’s past. It’s hushed corridors, priceless art décor paintings of the Georgian and edwardian eras complemented by the regal splendor of the Manor suites evoke the grandeur of a bygone era.

gCni to hold its 10th national Convention in Bengaluru on february 14, 2015

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Key Benefits of Joining Global Compact Network India• GlobalEthicalFramework

• Induction,TrainingandCommunicationofProgress

• IntegratedNetworkingPlatform

• PriorityAccesstoPracticeForums

• PublicPolicySupporttotheNationalGovernment

• Publications,CommunicationandGlobalGoodPractices

• ParticipationintheGovernanceoftheNetwork

• CollectiveActionProjectonAnti-corruptionandGreeneconomy

• RepresentationinNationalandInternationalForums

• Opportunitytoparticipateinlocalchapteractivitiesatstate and regional levels

why Join Global Compact Network IndiaToday 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

Our Recent Publications:

Membership FeesMembership 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 25,000 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.

human rights labour environment anti-corruption

Regional Leadershipthrough UNGC Principles

CASES & PrACtiCES of NiNE LoCAL NEtworkS iN ASiAGlobal Compact Network India OfficeScope Complex, Core 5, 6th Floor (ONGC Office), 7 Institutional Area, Lodhi Road, New Delhi, IndiaEmail: gcnindia@globalcompact.in • Website: www.globalcompact.in

This report has been published for information and illustrative purposes only and is not intended to serve as an advice of any nature whatsoever. The information contained has been supplied by the individual country Networks and are in good faith. Neither Global Compact Network India (GCNI) nor any of its employees and governing board members give any warranty of accuracy, nor accept any liability as a result of reliance upon the content. The report also contains some information available in the public domain, created and maintained by the individual country Networks and United Nations Global Compact. GCNI does not control or guarantee the accuracy, relevance, timelines or completeness of such information. GCNI does not warrant or solicit any kind of act or omission based on this report. GCNI owns the copyright of this report and in case any part of the report is to be used by a third party in any manner whatsoever, they would need to provide proper attribution.

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About global Compact network india Global Compact Network India (GCNI) was launched in the year 2000 and formally registered as a non-profit society in the year 2003, to function as the Indian local network of the United Nations Global Compact (UNGC). One of the oldest networks amongst its 103 peers in the world, GCNI is the first local network in the world to be established with full legal recognition. GCNI is a country level platform for public and private sector companies, civil society organisations, academic institutions and business associations, 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 no.1 in the Asia Oceania region, according to the UNGC Annual Local Networks Report 2013, and has emerged as the largest corporate citizenship and social responsibility organisation in the country with a pan India membership of 184 organisations, who have strengthened their commitment to the UN’s Global Compact Principles by becoming proud signatories of the local network, GCNI.

Global Compact Network India OfficeScope Complex, Core 5, 6th Floor (ONGC Office), 7 Institutional Area, Lodhi Road, New Delhi 110 003Phone: 011-24306486, 011-64690653Fax: 011-24368269Email: gcnindia@globalcompact.inwww.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.

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the ten Principles of the united nations global Compact Human RightsPrinciple 1: Businesses should support and respect the protection of internationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.

LabourPrinciple 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; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.

EnvironmentPrinciple 7: Businesses should support a precautionary approach to environmental challenges;Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.

anti-CorruptionPrinciple 10: Businesses should work against corruption in all its forms, including extortion and bribery.

membersneWDuring the past four months, 5 organisations have joined GCNI showcasing their commitment towards the Ten universal Principles of the Global Compact. GCNI welcomes its new members and looks forward to having a long term partnership in the future. These members are:

Organisation Category Membership

society for Integrated Developmental Activities research & Training (sIDArT)

NGo Annual

earth Foundation NGo Annual

sandvik Asia Pvt ltd Corporate Annual

Jindal steel and Power limited Corporate lifetime

CMr university & CMr Group of Institutions Institutional Annual