1. 8thmarch 2014
CMA. G.Ramkumar
MA,M.com,MBA,ACMA,ACA,M.Phil,NET,SLET
Asst Professor
Dept of Business Economics
D G Vaishnav College.
Corporate Social Responsibility in Primary Education Sector.
Introduction :
A Continuing Commitment to behave ethically and contribute to Sustainable Economic
Development while improving the Quality of life of Work force and their families as well
as of the Local Community and Society – World Business Council. This Definition
makes it clear that Corporate Social Responsibility is serving the Society at large.
India is the Third Largest Economy regarding Education system. India ranks 105th
in the
ranking of 129 countries having low educational Development Index.The 11th
plan has a
spending of about 30 million on education. ( Out of this nearly 70 % were paid towards
Teachers Salary) The 7th
survey of NCERT has Identified nearly 10.31 Lakhs Schools
where in 8.53 Lacs were of Rural Schools and 1.78 lacs schools were Urban. Out of this
63.15 % were Primary sector, 23.79% were Upper Primary Sector , 8.8% were Secondary
and 4.26 were Higher Secondary.There are 14874 girls schoolscwere in the country out
of which 91% were under Private hands.The Gross Enrolment Ratio for 2010 regarding
Primary education is 54.84%(2010) as of Secondary education is 48%.(2010).
Table 1 Inter-country comparison of education spending and attainments
Country Public Spending
on Education as
% of GDP
Estimated Average
Years of Education
of Citizens
Gross
Enrollment
up to
Tertiary
Health
Budget as %
of GDP
USA 5.9 16-17 93% 6.8
UK 5.5 16-17 93% 6.9
Canada 5.2 16-17 93% 6.9
India 3.7 6-7 62% 1.2
China 2.2 > 9 70% 2.0
Singapore 3.1 >9 87% 1.6
Philippines 3.2 … 82 % 1.4
Source: World Development Report (2004)
We see from the above table that the Government in spending for Education is only
around 4% of the total Budgets. This will not be enough for the Government helping the
educational sector. Government needs help from private hands. Corporate Social
Responsibility is a way for building Revenue for these Commitment.

2. Indian schools were Controlled by :-
1)CBSE ( Central Board of Secondary Education , Ministry of Human Resources a
Body of Central Government) where in .Students from all over india were admitted
in various state affliation
2) State Board where in the education were controlled by relevant state
Governments
3) National Institute of Open Schooling
4) Indian Certificate of Secondary Education (ICSE)
5) Council for Indian School Certificate for Education (CISCE)
6) Accredition Council as NCERT
7) National Centre on Education and Economy.
One of the major significant indicator of social progress is education which always makes
a decisive role in self sustainable development.with an increase in global scenario
corporate can concentrate more on society and education deserves more percentages than
any other. With the bulk of India’s population residing in rural areas, access to quality
primary education in non-urban areas is vital to unlock the country’s vast economic
potential. Good primary education is likely to provide a solid foundation to the rural poor
for acquiring higher education, professional skills and employment, thereby reducing
poverty for them and enabling sustained economic growth for the country
India is a Growing Economy on the one hand as important player in emerging world
order on the other hand it is impoverished as a home of largest number of peoples with
Poverty and Unnourished. Government Machinery reaching to them has figuratively
failed and with growing largest Population in the world it is becoming more difficult
daybyday. This Wide gap between the Have and the Havenots made a tendency to the
Corporates to look into the Unserved peoples.
Corporates of India as previously a few companies were reacting to the society with
minimum transferred benefits.But later the Opening of Gates as Liberalisation and
Globalisation Corporates were trying hard for creating Brand Image.This Concept made
corporates to look into Longer added value for the product. CORPORATE SOCIALO
RESPONSIBILITY is a way for the image building of their Companies.Corporates Look
into ecuation sector as a two way commitment ,one way fulfilling CSR rules and on the
other building the society for Future.
Particulars
Primary
(Class 1-5)
Middle
(Class 6-8
Elementary
(Class 1-8)
Child
Population
(Mlln)
119 73 192

3. Enrol (Mlln) 137 62 199
Gross
Education(%) 119 81 104
NER (%) 100 62 81
School(Lacs) 8.3 5.3 13.6
Teachers(Lacs) 43.3 19.7 63.0
Trained
Teachers(%) 86 87 86
Table 2 Indicates the Childs Enrolment and Teachers which we can understand that the
enrolment were not a satisfactory one. When the secondary education comes nearly 45%
of the Students drop out of schools . This is very high in Rural villages.
Ojectives of the Study
This study entails with growing commitment by the Corporate sector towards the Primary
educational sector and Projects with schemes framed by them.In this juncture it is correct
to mention that the Government has also made report as mandatory from the Corporates
regarding their involvement and Investment in the society.
1. To Study on Corporate interest in Primary education sector
2. To Highlight Corporrates investments in Primary Sector
3. To Specify the major stake holders
4. To Study on the Enrolment
5. To Specify the Teachers Development Training etc
6. To Access on Quality of Education
CSR needs a proper and step by step implementation. Andrew (1980) 11
has developed an approach to the question of strategic choice. His four key questions
suggest the approach that companies may follow in determining their level of CSR
activity.
Those four questions are following :
a. Determining Organizational Competencies: what can we do?
b. Looking at Industry threats and opportunities: what might we do?
c. Examining the values of key implementers: what do we want to do?
d. Determining the social responsibility: what ought we to be doing?
Corporates Methods of Commitment :-

4. 1. Financial Aid Initiatives and Donationas
2. School Adoption and aiding Management Programmes
3. Skill Enhancement PRogrammes
4. Educational Awareness and Activity Based Learning
5. Health and Nutritional Camps
6. Medical and Growth awareness Programmes
7. Infrastructure and Facilities enhancement
8. Library,Computers and Scholarship Funding
Corporates Commitment ( A few case aspects)
1)Aditya Birla Group has committed 130 Crore Annually to reach out to 3000
Villages such as Model Villages , Balwadis for Rurals, Aditya Bal Vidya Mandir and
more activities were done in Adity Birla Centre for Community Initiatives and Rural
Development.Aditya is Committed to More intakes of Femal Children in Primary and
Elementary Education. Aditya also gave assurance to check out the dropout from schools
in these villages.
2)Tata Group has committed nearly 3 Primary Schools, Six highschools and One
College were under its management.Tata Steel Took over 312 Schools and 172
Balwadis in Jamshedpur.Nearly 142 Crores were invested in Primary Sectors.
3)Reliance has Pivotal role in Gujrat ‘Kanya Kelvani’ for Girl child Education.
Reliance has take rural village school as platform for Computer literate.initiative.
Reliance Industries has committed 357 Crores.
4)SBI 123 Crores
5)ICICI 116 Crores were funded for nearly 100 Government schools in Chattisgarh
and Teachers Educational Reforms in Rajastan. Adoption of Schools for Computer
literacy.
6)HDFC 89.85 Crores were invested to bring educational literacy for Slum Dwelling
Students and also literacy to 600 schools in Odisha and Andrapradesh.
7. Infosys has Committed for setting up 40000 School libraries in Karnataka
8. NAlCo Spent 146 crores for Mobile Medical Units, Hospital and Regional Schools
and Higher secondary units with scholarships.
Legal Concepts of Compnay Amendment Bill 2013
Ministry of Corporate affairs which made the Company Law amendment Bill 2013
specifically introducing Provisions which would regulate Corporate to make spending on
Society at large.The Amended Law -- CLAUSE 135 of the 2013 Act states :-
- that every company having:
- net worth of Rs 500 crore or more, or
- turnover of Rs 1000 crore or more ,or
- net profit of Rs 5 crore or more during any financial year

5. shall constitute a Corporate Social Responsibility Committee of the Board.The committee
would comprise of three or more directors, out of which at least one director shall be an
independent director
A mandatory CSR committee to formulate and recommend to the Board, a Corporate
Social Responsibility Policy, which shall indicate the activities to be undertaken by the
company as specified in Schedule VII; - to recommend the amount of expenditure to be
incurred on the activities referred to above;- to monitor the Corporate Social
Responsibility Policy of the company from time to time.
The Law is Quite Concious about the spending- Public sector enterprises declaring profits
shall allocate as follows :
Upto Rs 100 crores – 3-5%
From Rs 100 to Rs 500 Crores – 2-3%
Above 500 croes 1 – 2 %
Out of the Total allocation made –
80 % is to be for Community Projects
5% for Natural Calamities
Balance 15% is for Educational Infrastructure.
The draft rules (as of September 2013) provide a number of clarifications and while these
are awaiting public comment before notification, some the highlights are as follows:
Surplus arising out of CSR activities will have to be reinvested into CSR initiatives, and
this will be over and above the 2% figure The company can implement its CSR activities
through the following methods: Directly on its own Through its own non-profit
foundation set- up so as to facilitate this initiative Through independently registered non-
profit organisations that have a record of at least three years in similar such related
activities Collaborating or pooling their resources with other companies
Only CSR activities undertaken in India will be taken into consideration Activities meant
exclusively for employees and their families will not qualify A format for the board
report on CSR has been provided which includes amongst others, activity-wise , reasons
for spends under 2% of the average net profits of the previous three years and a
responsibility statement that the CSR policy, implementation and monitoring process is in
compliance with the CSR objectives, in letter and in spirit. This has to be signed by either
the CEO, or the MD or a director of the company
Save as Otherwise Schedule VII of the bill prescribes 9 Specific and 1 Provincial Generic
Category of Activities such as :-
1) Eradicating Extreme Hunger and Poverty
2) Promotion of Education
3) Promote Gender Equality
4) Reducing Child Mortality
5) Combating Immunodeficiency
6) Environmental Sustainablity
7) Employment Enhancement
8) Social Business Projects

6. 9) Contribution to Priministers National Relief Fund.
Government Identified NGO’s
1) CRY – Supporting Government Schools and Grass Root Education
2) Smile Foundation – Childhood Education and Women Literacy
3) Pratham – K-12 Education – Laying Model Schools at low Cost
4) SEED Foundation – Donate Uniforms and Books to Libraries
5) Give India – Provide education to Physically Challenged
6) Akshara Foundation – Pre School Foundation and Library for Elementary
7) HOPE - Foundation for Vocational Training
Conclusion of the Study :
1) Corporates Social Responsibility has generated a Fund Mobility in Rural
Educational service
2) Corporates inorder to fulfill Compnay Reports have to contribute Compulsorily
3) Primary and Elementary Education is slowly picking up with Corporate
Commitment
4) This CSR should be an Addition to Government Initiative and Not make the
Government Relieved from their duty.
5) Advisory boards were set up with NGOs and with direction from NCERT the
CSR policies could be framedup.
6) Company should commit more funds rather than looking to the limits specified by
Companies Amendment Bill.
7) Teachers were to be more Trained and Faculties should have development
Programme
8) Setup a National Resource Knowledge Bank for Primary sectors
9) Establishing a Coordination with state and Central Committes and engage in
various Projects and Programmes.
10) Government ,NGO and Schools should make a Good coordinating setup for the
Corporates to invest in PRogrammes freely.
11) A Proprer Administrative board should be setup to look into the corporates
commitment fulfillment. Liky National Foundation for Corporate Social
Responsibility was setup by Government – Ministry of Industrial Affairs with
Indian Institute of Corporate affairs to stimulate Government,NGO and Corporate
for CSR Policy Framework.
12) Finally a Future Buildup for better educational society with Right to Education
Act which is a commitment by government can be fulfilled by CSR.
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