The document discusses adopting a corporate social responsibility (CSR) initiative. It provides an overview of CSR including its definition, importance, and relevance today due to changing social expectations, increasing affluence, and globalization. It outlines the CSR requirements for qualifying companies under the Companies Bill in India, including constituting a CSR committee and spending at least 2% of profits on CSR activities in areas like education, healthcare, and environment sustainability. Non-compliance can result in penalties.

1. Your CSR Agency
Adoption of a CSR initiative
An ap p roach p res entation

2. Your CSR Agency
What is Corporate Social Responsibility
Adoption of a CSR Initiative – An approach presentation
Corporate social responsibility (CSR, also called corporate conscience, corporate
citizenship or sustainable responsible business/ Responsible Business) is a form of
corporate self-regulation integrated into a business model.
CSR policy functions as a self-regulatory mechanism whereby a business monitors and
ensures its active compliance with the spirit of the law, ethical standards and
international norms.
In some models, a firm's implementation of CSR goes beyond compliance and engages in
"actions that appear to further some social good, beyond the interests of the firm and
that which is required by law.“
CSR aims to embrace responsibility for corporate actions and to encourage a positive
impact on the environment and stakeholders including consumers, employees, investors,
communities, and others.

3. Your CSR Agency
The Pyramid of CSR
Philanthropic
(Be a good corporate citizen)
Ethical
(Be ethical)
Legal
(Obey the law)
Economic
(Be profitable)
Contribute resources to the
community, improve quality of life
Obligation to do what is right, just
and fair
Law is society’s codification of right
and wrong
The foundation upon which all
others rest
Adoption of a CSR Initiative – An approach presentation

4. Your CSR Agency
CSR Development in India
First Phase
(1850-1914)
Driven by noble deeds
of philanthropists and charity
Second Phase
(1914-1960)
Largely influenced by Mahatma Gandhi’s
theory of trusteeship. Industrialists
pressurized to show their dedication
towards the benefit of the society
Third Phase
(1960 – 1980)
CSR influenced by the emergence of
Public sector undertakings to ensure
proper distribution of wealth
Fourth Phase
(1980 until the present)
Indian companies integrated CSR into a
sustainable business strategy. What
started as charity is now understood and
accepted as responsibility.
Four Phases of
CSR Development in
India
Adoption of a CSR Initiative – An approach presentation

5. Your CSR Agency
And Now – The Companies Bill and CSR – Clause 135
Every Company
With
Net Worth of
Rs. 500 Crores
or more
Turnover of Rs.
1000 Crores or
more
Net Profit of
Rs. 5 Crores or
more
During any Financial Year
Shall constitute a Corporate Social Responsibility Committee of the
Board consisting of three or more directors, out of which at least one
director shall be an independent director.
Adoption of a CSR Initiative – An approach presentation

6. Your CSR Agency
CSR Importance and its Relevance Today
1.
Changing
social
expectations
Consumers and society in general expect more from the companies whose products they
buy. This sense has increased in the light of recent corporate scandals, which reduced
public trust of corporations, and reduced public confidence in the ability of regulatory
bodies and organizations to control corporate excess.
2.
Increasing
affluence
While this is especially true in developed nations, it is also becoming a trend in developing
nations. Affluent consumers can now afford to pick and choose the products they buy.
There is a gradual shift to buying products and services from organisations that are eco-
friendly as well as those that contribute back to the society by way of their involvement is
social sector initiatives.
3.
Globalization
and free flow
of Information
Growing influence of media sees any mistakes’ by companies brought immediately to the
attention of the public. In addition, the Internet fuels communication among like-minded
groups and consumers - empowering them to spread their message, while giving them the
means to co-ordinate collective action.
CSR as a strategy is becoming increasingly important for businesses today because of three identifiable trends
Adoption of a CSR Initiative – An approach presentation

7. Your CSR Agency
Companies Bill and CSR
Allow corporates to harness and
channelize their core
competencies as well as develop
effective business models
Promote and facilitate far better
connect between businesses and
communities
Facilitate deeper thought and
longer term strategies for
addressing some of our most
persistent social, economic and
environmental problems
Assist in synergizing partnerships
between Corporates, Governments,
Civil Society Organizations,
Academic Institutions and Social
Entrepreneurs
Purpose of
Inclusion of CSR in
the Companies Bill
Adoption of a CSR Initiative – An approach presentation

8. Your CSR Agency
Activities required for Qualifying Companies
Adoption of a CSR Initiative – An approach presentation
DUTY OF THE BOARD
Disclose the composition of the CSR Committee in its report
Approve the Company’s CSR policy after considering the
recommendations of the committee
Disclose the CSR policy in its report and on Company Website
Ensure the implementation of the policy
To spend at least 2% of the Company’s average profit for the
last 3 financial years for this purpose
Give preference to spending in local areas where it operates
Specify reasons in report in case of failure
DUTY OF THE CSR COMMITTEE
Formulate and recommend a CSR Policy to
the Board indicating the activities to be
undertaken by the Company
Recommend the amount of expenditure
to be incurred on CSR related activities
Monitor the Company’s CSR policy from
time to time.

9. Your CSR Agency
Consequences for non-compliance
Adoption of a CSR Initiative – An approach presentation
A Company is not liable to pay any penalty for failing to meet the mandatory CSR
expenditure directly, but any company, which does not report non-compliance towards
the CSR rule is liable as such.
The annual financial statements of the company must have attached a report by the
Board of Directors which needs to include details of the CSR policy developed and
implemented by the company. Incase this is not included the company must specify
reasons for not the spending the mandatory amount on CSR activities. Incase, the
company and its officers fail to provide such explanation they will be liable for penalties.
Such failure can result in a penalty of upto Rs. 25 lac for the company (minimum fine of
Rs. 50,000). The board of directors may also be fined upto Rs. 5 lac and/or
imprisonment for 3 years (minimum fine of Rs. 50,000).

10. Your CSR Agency
Permissible Activities
Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making
available safe drinking water;
Promoting education, including special education and employment enhancing vocation skills especially among
children, women, elderly, and the differently abled and livelihood enhancement projects;
Promoting gender equality, empowering women, setting up homes and hostels for women and orphans;
setting up old age homes, day care centers and such other facilities for senior citizens and measures for
reducing inequalities faced by socially and economically backwards groups;
Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro
forestry, conservation of natural resources and maintaining quality of soil, air and water;
Protection of national heritage, art & culture including restoration of buildings & sites of historical importance
and works of art; setting up public libraries; promotion & development of traditional arts & handicrafts;
Measures for the benefit of armed forces veterans, war widows and their dependents;
Training to promote rural sports, nationally recognised sports, Para-olympic sports and 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 and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other
backward classes, minorities and women;
Contributions or fund provided to technology incubators located within academic institutions which are
approved by the Central Government;
Rural development projects.
Adoption of a CSR Initiative – An approach presentation

11. Your CSR Agency
A few pre-conditions
CSR projects / programs / activities are required to be undertaken in India only
CSR projects / programs / activities benefitting only the employees of the Company
and their families will not be considered as CSR activities
Contribution of any amount directly or indirectly to any political party will not be
considered as CSR activity
Adoption of a CSR Initiative – An approach presentation

12. Your CSR Agency
Six reasons companies should embrace CSR
INNOVATION
In the context of CSR, innovation is a huge benefit to a company and society. For example, Unilever was
able to innovate new products such as a hair conditioner that uses less water. Without sustainability, the
company’s research and development efforts possibly wouldn’t have led to such a product
COST SAVINGS
One of the easiest places for a company to start engaging in sustainability is to use it as a way to cut
costs. Whether it’s using less packaging or less energy, these savings add up quickly.
BRAND
DIFFERENCIATION
Brand differentiation is one of the primary reasons companies embrace CSR. Companies such as
Timberland were able to find their voice and incorporate the company’s values into their business model.
LONG TERM
THINKING
CSR is an effort to look at the company’s long-term interest and ensuring that the company’s future is…
well… sustainable. It is a shift from worrying about the next fiscal quarter’s financial results to the impact
business decisions today have on financial (and social) results ten years from now.
CUSTOMER
ENGAGEMENT
What’s the point of doing CSR if no one knows about it? Using CSR can help you engage with your
customers in new ways. Since the message is about something “good,” it can often be an easier way to
talk to your customers. This is an underused tool for business-to-business company communication.
EMPLOYEE
ENGAGEMENT
Along similar lines, if your own employees don’t know what’s going on within your organization, you’re
missing an opportunity. Companies like Sara Lee created a cross-functional, global Sustainability Working
Team to help create a strategy for sustainability.
Adoption of a CSR Initiative – An approach presentation

13. Your CSR Agency
Key potential benefits of implementing CSR
Better anticipation and management
Improved reputation management
Enhanced ability to recruit, develop
and retain staff
Improved innovation, competitiveness
and market positioning
Enhanced operational efficiencies
and cost savings
Improved ability to attract and build effective
and efficient supply chain relationships
Enhanced ability to address change
More robust “social license” to
operate in the community
Access to capital
Improved relations with regulators
A catalyst for responsible consumption
Adoption of a CSR Initiative – An approach presentation

14. Your CSR Agency
Some other positive outcomes
Benefits to Community and General Public
Charitable contributions
Corporate involvement in community
education, employment and
homelessness programs
Employee volunteer programs
Product safety and quality
Environmental Benefits
Greater material recyclability
Integration of environmental
management tools into business plans,
including life-cycle assessment and
costing, environmental management
standards, and eco-labeling
Better product durability and
functionality
Greater use of renewable resources
Adoption of a CSR Initiative – An approach presentation

15. Your CSR Agency
Key factors for a successful CSR implementation
Better
communication
between top
management
and organisation
Appoint for CSR
position
Good
relationship with
customer,
supplier,
stakeholder
Annual CSR audit Feedback Process
1 3 5
2 4
Adoption of a CSR Initiative – An approach presentation

16. Your CSR Agency
Constitution of a CSR committee
Even before the start of the CSR implementation – there is a
mandatory need for the constitution of a CSR committee.
CSR committee should consist of 3 director out of which at least one director should be independent director.
However as per clause 5 (1) of Companies (CSRP) Rules, 2014 private company which is not required to
appoint an independent director on the Board, shall have CSR committee without independent director.
Composition of the CSR committee shall be disclosed in the Board of Directors Report. Hence it is mandatory
for the Company to form the CSR committee before finalization of the Board of Directors Report, if applicable.
CSR committee has to formulate CSR Policy, whereby the detailed activities viz. detail project, duration of
project, amount to be spent on project, location etc. to be undertaken should find their place in policy and
recommend the Board of such policy.
Members of CSR committee are individually liable for monitoring and implementation of the policy.
Board Resolution required for constitution of CSR committee and approval of CSR policy
Adoption of a CSR Initiative – An approach presentation

17. Your CSR Agency
Nine steps to an effective CSR implementation
Adoption of a CSR Initiative – An approach presentation
Developing a CSR Strategy
Operationalising the institutional mechanism
Due diligence of the implementation partner
Project Development
Project approval
Finalising with the implementation agency
Progress Monitoring & approval
Impact measurement
Report Consolidation & communication

18. Your CSR Agency
PROGRAM MANAGMENT
Our Services
Developing a CSR Strategy
Operationalising the
institutional mechanism
Due diligence of the
implementation partner
Project Development
Project approval
Finalising with the
implementation agency
Progress Monitoring & approval
Impact measurement
Report Consolidation &
communication
PROGRAM DEVELOPMENT
PROGRAM IMPLEMENTATION
PROGRAM MONITORING
REPORTING & COMMUNICATION
PROJECT CONSOLIDATION
VISION & PROGRAM STRUCTURE
CSR COMMITTEE FORMULATION
CSR STRATEGY FORMULATION
CSR ASSESSMENT REPORT
CAPACITY DEVELOPMENT
SKILL DEVELOPMENT
FINALISING AN IMPLEMENTATION PARTNER
LEGAL &FINANCIAL TERMS & AGREEMENTS
EXTERNAL AUDITS
INTERNAL AUDITS
INTERNAL REPORTING
EXTERNAL REPORTING
SOCIAL MEDIA EXPERIENCE
LEGAL SERVICES
FINANCIAL SERVICES
PERIODIC PROJCT REVIEWS
Adoption of a CSR Initiative – An approach presentation

19. Your CSR Agency
CLIENT ORGANISATIONS
SERVICES OFFERED
PROGRAM
MANAGEMENT
COMMUNICATION
PROGRAM MONITORING
LEGAL FINANCIAL
PROGRAM
DEVELOPMENT
PROGRAM AUDITS
REPORTING
CONSULTANTS
Our Structure
ADVISORS
SERVICES CAN BE
ENGAGED EITHER
INDIVIDUALLY
OR AS A BOUQUET
NGO’S AND
IMPLEMENTATION
AGENCIES
Adoption of a CSR Initiative – An approach presentation

20. Your CSR Agency
We address ALL your needs.
Adoption of a CSR Initiative – An approach presentation
Developing a CSR Strategy
Operationalising the institutional mechanism
Due diligence of the implementation partner
Project Development
Project approval
Finalising with the implementation agency
Progress Monitoring & approval
Impact measurement
Report Consolidation & communication

21. Your CSR Agency
Why US
• Our team of consultants bring to you:
– On ground experience of more than 150 man-years
– Working in Social sector since 2001
– Implemented more than 25 state or country level projects
– Wealth of international exposure and experience
– Pan India Reach for implementation
– Complete range of services to address all your CSR needs
Adoption of a CSR Initiative – An approach presentation

22. Your CSR Agency
Connect with us
807, MADHUBAN BUILDING
55 NEHRU PLACE
NEW DELHI – 110 076 (INDIA)
+91 96548 89815
+91 98711 52277
+91 11 41401529
STEPHANIE SIMONS
CSR – COORDINATOR
stephanie@scg.org.in
www.scg.org.in
Adoption of a CSR Initiative – An approach presentation