Harnessing CSR, Sustainable Development Goals & Social Audit Standards for Societal Betterment
“Explore the harmonious interplay of Corporate Social Responsibility (CSR), Sustainable Development Goals (SDGs), and Social Audit Standards for global sustainable growth. Learn about CSR mandates, SDG contributions, and Social Audit guidelines, with a focus on achieving sustainable development by 2030. Align your business strategies with these interconnected approaches for societal betterment.”
In a world increasingly cognizant of the need for sustainable development, three distinct sectors or approaches are working in harmony towards achieving this common objective. Corporate Social Responsibility (CSR), Sustainable Development Goals (SDGs), and Social Audit Standards are each contributing to sustainable growth, their paths intertwined in a global effort.
Incorporated in Section 135 of the Companies Act, CSR provisions mandate certain companies to allocate funds towards social enterprises. These enterprises operate in sectors that align with the UN’s Sustainable Development Goals, a blueprint for future prosperity and planetary well-being. Meanwhile, Social Audit Standards issued by the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI) serve as guidelines for auditors to identify and report non-compliance or misrepresentations.
Sustainable Development Goals (SDGs)
Member states of the United Nations adopted the 2030 Agenda for Sustainable Development in the year 2015. It is pegged as the blueprint for peace and prosperity for the people and the planet, now and into the future. The said Agenda has identified 17 Goals for the developed as well as developing countries. It urges all the nations to respond to this on an urgent basis and “recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.”
Corporate Social Responsibility
Every company having
– Net worth of Rs. 500 crore or more, or
– Turnover of Rs. 100 crore or more, or
– Net profit of Rs. 5 crore or more
During the immediately preceding financial year shall have to spent 2% of the average profit as Corporate Social Responsibility as per the provisions of section 135 of the Companies Act 2013. Schedule VII Activities may be included by companies in their Corporate Social Responsibility Policies Activities.
Social Audit Standards
The Social Audit Standard more or less covers all the Schedule VII activities. The Social Audit standards has to be followed by the social auditor while conducting social audit.
| Sr no | Schedule VII activities | Social Audit standards | SDG Goals to be achieved by 2030- 17 Goals |
| 01 | Eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water. | SAS 100– Eradicating hunger, poverty, malnutrition, and inequality.
SAS 200: -Promoting health care (including mental health) and sanitation; and making available safe drinking water |
1. No Poverty
2. Zero Hunger 3. Good Health and well being 6. Clean Water and sanitation |
| 02 | Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently abled and livelihood enhancement projects. | SAS 300: -Promoting education, employability, and livelihoods | 4. Quality Education |
| 03 | Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups | SAS 400: Promoting gender equality, empowerment of Women and LGBTQIA+ communities | 5. Gender Equality |
| 04 | Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga. | SAS 500: Ensuring environmental sustainability, addressing climate change including mitigation and adaptation, forest, and wildlife conservation | 7. Affordable and Clean Energy
10. Reduced Inequalities 12. Responsible Consumption and Production 13. Climate Action 14. Life below water 15. Life on land |
| 05 | Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional art and handicrafts; | SAS 600: Protection of national heritage, art, and culture | |
| 06 | Measures for the benefit of armed forces veterans, war widows and their dependents, Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widow; | ||
| 07 | Training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports | SAS 700: Training to promote rural sports, nationally recognised sports, Paralympic sports, and Olympic sports | |
| 08 | Contribution to the prime minister’s national relief fund 8[or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)] or any other fund set up by the central govt. for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women; | SAS 1300: Promotion of financial inclusion
SAS 1400: Facilitating access to land and property assets for disadvantaged communities |
8. Decent work and economic growth
9. Industry Innovation and Infrastructure |
| 09 | (a) Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and
(b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organization (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs) |
SAS 800: Supporting incubators of social enterprises
SAS 900: Supporting other platforms that strengthen the non-profit ecosystem in fundraising and capacity building communities SAS 1500: Bridging the digital divide in internet and mobile phone access, addressing issues of misinformation and data protection SAS 1600: Promoting welfare of migrants and displaced persons |
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| 10 | Rural development projects | SAS 1000: Promoting livelihoods for rural and urban poor including enhancing income of small and marginal farmers and workers in the non-farm sector | |
| 11 | Slum area development.
Explanation. – For the purposes of this item, the term `slum area’ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force. |
SAS 1100: Slum area development, affordable housing, and other interventions to build sustainable and resilient cities | 11. Sustainable cities and communities
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| 12 | Disaster management, including relief, rehabilitation and reconstruction activities | SAS 1200: Disaster management, including relief, rehabilitation, and reconstruction activities | 16. Peace, justice, and strong institutions
17. Partnerships for the goals |
Conclusion: By investing in social enterprises, companies fulfil their CSR obligations while indirectly contributing to the SDGs. Simultaneously, social auditors ensure that these investments are used appropriately, verifying compliance with Social Audit Standards. These three sectors – CSR, SDGs, and Social Audit Standards – although distinct, are united in their mission to achieve sustainable development by 2030.
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