CORPORATE SOCIAL RESPONSIBILITY

2. INTRODUCTION
 Corporate social responsibility (CSR) is a self-regulating
business model that helps a company be socially
accountable — to itself, its stakeholders, and the public.
 The way a corporation achieves a balance among its
economic, social, and environmental responsibilities in
its operations so as to address shareholder and other
stakeholder expectations.
 It is a type of international private business self-regulation
that aims to contribute to societal goals of a activist, or
charitable nature by engage in or support volunteering or
ethically-oriented practices.

3. Role Of Corporate Social
Responsibility
 The present-day CSR (also called corporate
responsibility) is a concept
whereby business organizations consider the interest
of society by taking responsibility for the impact of
their activities on customers, suppliers, employees.

4. Importance of Corporate Social
Responsibility
 CSR demonstrates that you're a business that takes an
interest in wider social issues, rather than just those
that impact your profit margins, which will attract
customers who share the same values. Therefore, it
makes good business sense to operate sustainably.

5. CSR in Action — Starbucks
 Long before its initial public offering (IPO) in
1992, Starbucks was known for its keen sense of
corporate social responsibility, and commitment to
sustainability and community welfare.
 Starbucks has achieved CSR milestones such as
reaching 99 percent ethically sourced coffee; creating a
global network of farmers; pioneering green building
throughout its stores; contributing millions of hours of
community service; and creating a groundbreaking
college program for its partner/employees.
 Going forward, Starbucks’ goals include hiring 10,000
refugees across 75 countries; reducing the
environmental impact of its cups; and engaging its
employees in environmental leadership.

6. 4 corporate responsibility types
your business can practice
 Environmental efforts: One primary focus of
corporate social responsibility is the environment.
 Philanthropy: Businesses can practice social
responsibility by donating money, products or services
to social causes and nonprofits. Larger companies tend
to have a lot of resources that can benefit charities and
local community programs. It is best to consult with
these organizations about their specific needs before
donating.

7.  Ethical labor practices: By treating employees fairly
and ethically, companies can demonstrate their social
responsibility. This is especially true of businesses that
operate in international locations with labor laws that
differ from those in the United States.
 Volunteering: Attending volunteer events says a lot
about a company's sincerity. By doing good deeds
without expecting anything in return, companies can
express their concern for specific issues and
commitment to certain organizations.

8. What Benefits Does CSR Offer to
Businesses?
 Increase employee loyalty: Treating your employees
fairly and generously is a part of corporate social
responsibility. By providing good jobs and encouraging
high professional and moral standards, you increase
employee loyalty.

9.  Maintain a positive reputation: Demonstrated consciousness
in a variety of areas can garner publicity and give a business
tangible proof of their conduct, which can be proudly displayed
on a company website. These consciousness: Reducing waste,
recycling, minimizing carbon footprint, and other best practices
can . Using or producing only sustainable products, lowering
energy usage, and supporting environmental causes will boost a
business's "green reputation" among environmentally concerned
clients.
 Social Concern: Donating to humanitarian causes that fight
persistent poverty, help the victims of epidemics like AIDS or
Ebola, or assist those displaced by earthquakes shows concern
for issues that consumers are more.
 Local Community: Involvement in local community projects,
either through financial donations, employee participation,
connecting your customers with promotion of the project
through advertising and enhances your CSR credentials with
clients in the given location.

10. CSR Committee
 The CSR Committee will consist of four Directors, who
shall meet at least twice in a year to discuss and review
the CSR activities and policy. The Chairperson and
members of the committee are as follows:
Scope And functions of CSR Committee:
 The CSR committee will recommend a formal CSR
Policy, this document and will recommend particular
CSR activities, set forth a budget, describe how the
company will implement the project, and establish a
transparent means to monitor progress.

11. ROLE OF CSR COMMITTEE
 The CSR Committee constituted in pursuance of
Section 135 of the Companies Act, 2013 shall be
required to carry out the following activities:
a) 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;
b) Recommend the amount of expenditure to be
incurred on the activities referred to;
c) Monitor the Corporate Social Responsibility Policy of
the company from time to time.

12. CSR Activities
 Eradicating hunger, poverty, promoting preventive health care
& sanitation & making available safe drinking water;
 Promoting education, employment enhancing vocation skills
especially among children, women, elderly & the differently
unable & livelihood enhancement projects;
 Promoting gender equality, empowering women, setting up
homes & hostels for women & orphans, setting up old age
homes, day care centers & such other facilities for senior
citizens & measures for reducing inequalities faced by socially
& economically backward groups;
 Ensuring environmental sustainability, ecological balance,
protection of flora & fauna, animal welfare, agro forestry,
conservation of natural resources & maintaining quality of soil,
air & water;

13.  Protection of national heritage, art & culture including
restoration of buildings & sites of historical
importance & works of art; setting up public libraries;
promotion & development of traditional arts &
handicrafts;
 Training to promote rural sports, nationally
recognized sports, sports & Olympic sports;
 Contribution to the Prime Minister‘s National Relief
Fund or any other fund set up by the Central
Government for socio-economic development & relief
& welfare;

14. Implementation
 The investment in CSR should be project based and for
every project time framed periodic mile stones should be
finalized at the outset.
 a) Project activities identified under CSR are to be
implemented by Specialized Agencies and generally NOT
by staff of the organization. Specialized Agencies could be
made to work singly or in tandem with other agencies.
 b) Such specialized agencies would include:
i)Community based organization whether formal or
informal.
ii)Voluntary Agencies (NGOs)
iii) Trusts
iv) Self-help groups
v)Government

15. FUNDING :
1. As per the regulations the company will set aside, for
annual CSR activities, an amount equal to 2% of the
average net profits of the Company made during the
three immediately preceding financial years. Any
unutilized CSR allocation fund of a particular year,
will be carried forward to the next financial year i.e.
the CSR budget will be non lapsable in nature.
2. The tax treatment of CSR spent will be in accordance
with the Income Tax Act, 1961 as may be notified by
the central board of Direct taxes.

16.  Budget:
 The Company Board of Directors shall ensure that in
each financial year the Company spends at least 2% of
the average Net Profit made during the three
immediate preceding financial years
 As per section 135 of the Companies Act, the Company
will report reasons for under spending of the allocated
CSR budget of the current financial year in the
template . This reporting will be done Annual Report
and signed off by the Board of Directors.
 The Company may collaborate or pool resources with
other companies to undertake CSR activities, through
any non-profit organization, if required.