Stricter CSR norms worry Korean Cos; KOTRA comes to their help
India is the only country in the world that has not only made CSR compulsory for certain class of companies, its law also provisions for penalty and imprisonment for the defaulters.
NEW DELHI: South Korea’s apex trade body the Korea Trade-Investment Promotion Agency (KOTRA) has lined up a series of Corporate Social Responsibility (CSR) awareness seminars for its companies operating in India as well in Korea.
The move aims at helping the Korean companies understand the complexities of recently amended Indian Companies (Amendment) Act 2019, especially Section 135 that has made the CSR norms stricter in India.
India is the only country in the world that has not only made CSR compulsory for certain class of companies, especially the large and medium enterprises, its law also provisions for penalty and imprisonment for the defaulters.
The focus of compliance has now shifted from earlier “Comply or explain” to now “Comply or explain and comply”.
On Tuesday, KOTRA South West Asia, Head office organized a CSR seminar at the Korea SMEs and Startup Centre, New Delhi, where the representatives of 25 Korean companies came to listen to the CSR experts delivering tips on how to implement CSR projects under new policy guidelines in India.
“Next week we are going to have another CSR program in South Korea where it will be organized by our head office there. Korean embassy in India too may organize another CSR seminar in Noida for the Korean companies which are there based,” said Moon Young Kim, President, KOTRA Southwest Asia, Head office.
“Unlike other countries, the Indian CSR version is very cumbersome. Many Korean companies are worried about how to approach the new CSR act. Therefore, we have invited the CSR specialists like Ms. Jeehye You who is a specialist in CSR. She delivered her opinion and experience to the audience. We also introduced one case of LG Electronics on CSR. We also invited a CSR expert from FICCI. These experts introduced new information and guidelines as well as CSR practices to the Korean companies, who want to get a new approach to CSR,” the KOTRA chief told Asian Community News (ACN) Network.
Most of the Korean company representatives participating in the CSR seminar on Tuesday looked concerned about the newly amended law, the meaning of law and how to follow and comply with and its impacts on them.
Jeehye You, Managing Partner, Buddtree Management and adviser to KOSMA (Korea Small & Medium Entreprises Association in India) made a detailed PPT presentation for the benefit of the participating Korean companies.
“India has a very specific regulation in terms of CSR implementation. And it is not only compulsory, but it is also the first time ever in the world and very unique. Today, I introduced the recent amendment in the CSR law of Companies Act, especially Section 135. The Korean companies have big concerns about how to implement and what to do about the new changes,” Jeehye You told Asian Community News (ACN) Network.
When asked about the type of questions asked by the participants, Jeehye You said the main challenges was ‘how’ to implement, whether it was a one-time event and how to make it sustainable program on a long-term basis.
Other participants asked whether to do CSR projects themselves or through NGOs.
Sung Chang Hong, MD, NongHyup Bank Representative Office said that It was a great opportunity to understand how the meaning of CSR is different in India.
“The speakers explained well about the background of section 135 of the Companies Act and what the follow-up measures could be expected in the near future. I can catch the Indian government intentions for a soft landing on the linkage between the cooperations’ profit-earning activities and the contribution to society. Yes! it could be very unfamiliar to the foreign companies as well as national companies,” said Sung Chang Hong.
However, if the cooperations maintained their genuine will on the CSR, it was not hard to follow the law because there were various authentic ways to implement CSR projects, added NongHyup Bank’s MD.
Aditya Bhasin, Team Leader – Business Strategy, LG Electronics shared the CSR projects implemented by the company. He introduced Kar Saalam – a Tribute to brave soldiers of India, Karein Roshni, Global IT challenge for youth with disabilities in India and Kumbh Mela projects.
Uma Seth, Director and Team Lead – Corporate Social Responsibility, FICCI made a detailed presentation giving outline on how FICCI could help Korean companies not only implement CSR projects but also help them in design CSR policy, in assessment survey, CSO partner selection, capacity building, CSR reporting, monitoring & evaluation, implementation and impact assessment of the projects.
Hanna Kim, Deputy Director, KOTRA Southwest Asia compared the CSR event.
Chris Lee (Changyong), MD, Samwha Indian energy Savings Pvt. Ltd. said that he participated in the CSR seminar to understand the changes implemented in the CSR laws in India.
