The Following Presentation is a class project at Gems B School for class of "Principles of Management".

1. Corporate
Social
Responsibility
Presented by
Venkatesh C
MBA Batch 03
For “Principles of Management Course”
taught by
Prof Subramanian.
Created by Venkatesh Chittarvu1

2. Corporate Social Responsiblity
 Its a form of Corporate Self Regulation
inducted into a business model
 It’s a way a business monitors and ensures
its active compliance with law,ethics of
India.
 CSR activities are performed for the sake
of social good and are beyond the
business of any organization.
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3. CSR History
 The Term became popular in Late 1960s
 The term became popular through
theories of Late Capitalism,Neoliberalism
and Globalization.
 Many Sociologists equate CSR to
Capitalist Legitimacy and as a Social
movement towards Unregulated
Capitalist power.
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4. CSR Definition.
 "A company’s sense of responsibility towards
the community and environment (both
ecological and social) in which it operates.
Companies express this citizenship”
 (1) through their waste and pollution
reduction processes,
 (2) by contributing educational and social
programs and
 (3) by earning adequate returns on the
employed resources."
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5. Benefits of CSR for Businesses
 Created Share Value(CSV)
 It’s a tradeoff between profits and creating
social value.Most times Good CSR enhances
Brand Value
 CSR also proves to consumers that they(The
Consumers are more important than the
shareholders who hold the company
 CSR ensures the social importance of business
in India.
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6. CSR for Businesses-2
 Businesses should ensure that their CSR model
should not be copied by competitors.
(Reinhard-1998)
CSR should be within HR or Business
Development or PR Department or can be an
Independent department by itself
The Goals and objectives of CSR have to be
planned like any business activity and
responsible Social Auditing is part of providing
Good CSR.
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7. CSR-Social Accounting and
General CSR Activities in India.
 Social accounting is the communication of social
and environmental effects of a company's
economic actions to particular interest groups
within society and to society at large.
CSR Activities include
 Environmental Sustainability:Green Earth and
Recycling
 Community Involvement:Involving in charity and
religious activity such as Annadanam or Zaakat.
 Ethical Marketing:Such as proper value ethics in
Advertising.
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8. 3Ps of CSR
 People-Fair Labor practices in community
and country.
 Planet-For Greener Earth
 Profit-Economic value of CSR after
deducting the costs of all inputs and
capital investment.
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9. CSR-How it helps Businesses
 Risk Management-Helps in reducing the risk
of scandals of Company Activities.
Brand Differentiation:
Eg:Starbucks sources its Coffee beans from
Karnataka
Reduced Scrutiny:
More Compliance with the Government
Supplier Relations:
Increase the attractiveness of the company to
supplier firms
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10. Criticisms of CSR
Critics say CSR imposes outside values into
Local Communities in Countries.
Critics say that CSR is used as camouflage
to hide actual profits by unethical social
accounting.
Eg:Satyam Case
Critics say Government should regulate
unbridled Corporate power for profits and a
balance should be maintained.
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11. CSR-Motives
 Some believe that CSR activities are
perfomed in a way to distract attention of the
consumers to the actual activities of the
Businesses.
 Some Believe that it’s a window dressing
activity to satisfy the Government’ ego that
indeed it’s the government that’s controlling
the Corporation and not the other way but
the truth is Global MNCs control many
nations.
Eg:Reliance in India.
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12. CSR-Indian Companies Act
2013
 Ministry of Corporate Affairs has recently notified Section
135 and Schedule VII of the Companies Act as well as the
provisions of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 (CRS Rules) which has
come into effect from 1 April 2014.
 Applicability: Section 135 of the Companies Act provides
the threshold limit for applicability of the CSR to a Company
 i.e. (a) net worth of the company to be Rs 500 crore or more;
 (b) turnover of the company to be Rs 1000 crore or more;
 (c) net profit of the company to be Rs 5 crore or more.
Further as per the CSR Rules, the provisions of CSR are not
only applicable to Indian companies, but also applicable to
branch and project offices of a foreign company in India.
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13. CSR-Indian Companies Act
2013 Contd
 CSR Committee and Policy: Every qualifying company
requires spending of at least 2% of its average net profit
for the immediately preceding 3 financial years on CSR
activities.
 Further, the qualifying company will be required to
constitute a committee (CSR Committee) of the Board
of Directors (Board) consisting of 3 or more directors.
 The CSR Committee shall formulate and recommend to
the Board, a policy which shall indicate the activities to
be undertaken ; recommend the amount of
expenditure to be incurred on the activities referred and
monitor the CSR Policy of the company. The Board shall
take into account the recommendations made by the
CSR Committee and approve the CSR Policy of the
company.
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14. CSR-Definition-Indian
Companies Act 2013
 Definition of the term CSR: The term CSR has
been defined under the CSR Rules which
includes but is not limited to:
 Projects or programs relating to activities
specified in the Schedule; or
 Projects or programs relating to activities
undertaken by the Board in pursuance of
recommendations of the CSR Committee as
per the declared CSR policy subject to the
condition that such policy covers subjects
enumerated in the Schedule.
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15. CSR-Activities India
 Activities under CSR: The activities that can be done by the
company to achieve its CSR obligations include eradicating
extreme hunger and poverty, promotion of education, promoting
gender equality and empowering women, reducing child mortality
and improving maternal health, combating human
immunodeficiency virus, acquired, immune deficiency syndrome,
malaria and other diseases, ensuring environmental sustainability,
employment enhancing vocational skills, social business projects,
contribution to the Prime Minister's National Relief Fund or any
other fund set up by the Central Government or the State
Governments for socio-economic development and relief and funds
for the welfare of the Scheduled Castes, the Scheduled Tribes, other
backward classes, minorities and women and such other matters as
may be prescribed. Created by Venkatesh Chittarvu
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16. CSR-India Local Area
 Local Area: Under the Companies Act, preference should be given to
local areas and the areas where the company operates. Company may
also choose to associate with 2 or more companies for fulfilling the
CSR activities provided that they are able to report individually. The
CSR Committee shall also prepare the CSR Policy in which it includes
the projects and programmes which is to be undertaken, prepare a list of
projects and programmes which a company plans to undertake during
the implementation year and also focus on integrating business models
with social and environmental priorities and process in order to create
share value.
 The company can also make the annual report of CSR activities in
which they mention the average net profit for the 3 financial years and
also prescribed CSR expenditure but if the company is unable to spend
the minimum required expenditure the company has to give the reasons
in the Board Report for non compliance so that there are no penal
provisions are attracted by it.
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17. Conclusion
 CSR can be powerful way of causing a social change in a
Developing country like India
 Many Businesses involve in unethical CSR and it is job of
Govt of India to curtail malpractices.Corruption is an
important issue and Red Tape should be reduced so that it
becomes easier for more businesses to operate in India.CSR
Act can be used as a weapon by corrupt politicians to curtail
freedom of Young Entrepreneurs.
 CSR Should not be Window Dressing Activity and its people
of India who can judge whether the business is ethical or
not.The Role of Judiciary,Media and Legislature is equally
important to curb unethical practices and businesses which
indulge in open skullduggery should be punished .
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18. Thank You
Presented
By
Venkatesh C.
MBA Batch 03
For “Principles of Management”
taught by Dr.Subramanian.
Created by Venkatesh Chittarvu18

19. CSR-Basics for Businesses
 Resource Based View
 Formulation of RBV for performing CSR
would require Businesses to depend on
 Value
 Rare
 Inimitable
 Non Substitutable
 (Barney-1990)
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