Presentation prepared based on the Section 135 of the Companies Act, 2013 , Companies (Corporate Social Responsibility Policy) Rules, 2014 and Revised Schedule VII of the CA 2013.
Corporate social responsibility | 2015 - Recent TrendsAadhit B
ย
This paper predominantly enumerates the role of Corporate Social responsibilities in the present scenario, its evolution, impact of Clause 135 of Companies Act, 2013, Role of CSRs in SMEs and also its Global Impact.
|Clause 135, Companies Act, 2013 | Companies (CSR policies) Rules, 2014 |
The Companies Bill 2012 was passed in the Lok Sabha on 18 December 2012. The bill seeks to consolidate and improve corporate governance and further strengthen the regulations for the corporates. One of the noticeable features of the bill is introduction of the most debated concept of Corporate Social Responsibility (CSR). The attached presentation by Ms Gayatri Subramanian, Program Coordinator - CSR & Corporate Governance, Indian Institute of Corporate Affairs, New Delhi, presents a clear picture on the new CSR Bill.
A Handbook on Corporate Social Responsibility in India developed by CII and PWC has been released at the CII National CSR- CSO Bridge 2013. The Handbook, brought out against the backdrop of the recently passed Companies Bill, which necessitates the provision of 2 percent spend on CSR, is a guidance document for industry for (a) Facilitate development of CSR mandate within organisations and help streamline dialogue within the industry (b) Provide a framework that companies can use to plan and implement CSR activities by addressing the โwhy CSRโ and โHow to put CSR into action.โ (c) Help industry in identifying NGO partners for CSR implementation.
Presentation prepared based on the Section 135 of the Companies Act, 2013 , Companies (Corporate Social Responsibility Policy) Rules, 2014 and Revised Schedule VII of the CA 2013.
Corporate social responsibility | 2015 - Recent TrendsAadhit B
ย
This paper predominantly enumerates the role of Corporate Social responsibilities in the present scenario, its evolution, impact of Clause 135 of Companies Act, 2013, Role of CSRs in SMEs and also its Global Impact.
|Clause 135, Companies Act, 2013 | Companies (CSR policies) Rules, 2014 |
The Companies Bill 2012 was passed in the Lok Sabha on 18 December 2012. The bill seeks to consolidate and improve corporate governance and further strengthen the regulations for the corporates. One of the noticeable features of the bill is introduction of the most debated concept of Corporate Social Responsibility (CSR). The attached presentation by Ms Gayatri Subramanian, Program Coordinator - CSR & Corporate Governance, Indian Institute of Corporate Affairs, New Delhi, presents a clear picture on the new CSR Bill.
A Handbook on Corporate Social Responsibility in India developed by CII and PWC has been released at the CII National CSR- CSO Bridge 2013. The Handbook, brought out against the backdrop of the recently passed Companies Bill, which necessitates the provision of 2 percent spend on CSR, is a guidance document for industry for (a) Facilitate development of CSR mandate within organisations and help streamline dialogue within the industry (b) Provide a framework that companies can use to plan and implement CSR activities by addressing the โwhy CSRโ and โHow to put CSR into action.โ (c) Help industry in identifying NGO partners for CSR implementation.
Corporate social responsibility - Aadhit B Balaji Aadhit B
ย
This paper predominantly enumerates the role of Corporate Social responsibilities in the present scenario, its evolution, impact of Clause 135 of Companies Act, 2013, Role of CSRs in SMEs and also itโs Global Impact.
- Clause 135, Companies Act, 2013
- Companies (CSR Policy) Rules, 2014
India's ancient wisdom, which is still relevant today, inspires people to work for the larger objective of the well-being of all stakeholders. For example, our Rushees, Munees and Saints preached us to serve the society. The idea of CSR first came up in 1953 when it became an academic topic in HR Bowenโs โSocial Responsibilities of the Businessโ. Since then, there has been continuous debate on the concept and its implementation. Although the idea has been around for more than half a century, there is still no clear consensus over its definition. Post 1991, there is increasingly a receding role of the state in the economic and social sphere. An increasing acceptance of CSR by large number of corporate, post liberalization can thus be seen in the context of the larger role being consciously carved for the private sector in an economy which was earlier largely controlled and managed by the State. The corporate world is keen to exploit the opportunities that are being provided by the new economic outlook of the State. Today, 93% of the worldโs largest 250 companies now publish annual corporate responsibility reports, almost 60% of which are independently audited.
Corporate social responsibility - Aadhit B Balaji Aadhit B
ย
This paper predominantly enumerates the role of Corporate Social responsibilities in the present scenario, its evolution, impact of Clause 135 of Companies Act, 2013, Role of CSRs in SMEs and also itโs Global Impact.
- Clause 135, Companies Act, 2013
- Companies (CSR Policy) Rules, 2014
India's ancient wisdom, which is still relevant today, inspires people to work for the larger objective of the well-being of all stakeholders. For example, our Rushees, Munees and Saints preached us to serve the society. The idea of CSR first came up in 1953 when it became an academic topic in HR Bowenโs โSocial Responsibilities of the Businessโ. Since then, there has been continuous debate on the concept and its implementation. Although the idea has been around for more than half a century, there is still no clear consensus over its definition. Post 1991, there is increasingly a receding role of the state in the economic and social sphere. An increasing acceptance of CSR by large number of corporate, post liberalization can thus be seen in the context of the larger role being consciously carved for the private sector in an economy which was earlier largely controlled and managed by the State. The corporate world is keen to exploit the opportunities that are being provided by the new economic outlook of the State. Today, 93% of the worldโs largest 250 companies now publish annual corporate responsibility reports, almost 60% of which are independently audited.
Companies Act 2013 Key Aspects Related to Corporate Social ResponsibilityAnil Chawla
ย
Corporate Social Responsibility or CSR is a statutory liability for some companies in India under Companies Act 2013. This presentation discusses the legal aspects related to CSR. It is of interest to corporate houses as well as legal professionals.
Assessment of CSR Law in Companies Act, 2013 โ An Analysis of the Performance...inventionjournals
ย
Introduction: The new law making CSR expenditure and reporting mandatory for certain companies is a new chapter in the Indian corporate world and has provided a necessary boost to the status of companiesโ responsibility towards the stakeholders, and transparency and accountability of their actions. Need: The mandatory 2% spending of profits on CSR activities got mixed reaction from corporate executives. To ensure that the enforcement of the law isnโt limited to the term โcheque-book CSRโ, regular exploration of the companiesโ CSR expenditures and their consequent outcomes is absolutely essential. Objective: The paper aims to assess the outcome of Section 135 of the Companies Act, 2013, in the first year of its implementation among the BSE-SENSEX companies. Research methodology: Secondary sources were utilized for collecting profits and CSR expenditure figures of the selected 30 companies for conducting an ex-post analysis for the year 2014-15. Key findings of the study: Less than 15% of the BSE-SENSEX companies had spent on CSR activities an amount that is equal to or greater than the stipulated 2% of the average profits of the preceding 3 years as per Section 135 of Companies Act, 2013. Implications: Immediate attention of regulatory bodies is desired towards companies failing to dispense the funds earmarked for CSR as stipulated by the law to ensure compliance.
Corporate Social Responsibility and its alignment with Business needs and Soc...Rupak Ghosh
ย
Ministry of Corporate affairs is encouraging the companies to have some CSR activities. The companies are taking some Social Welfare activities to show that they have CSR activities. However a proper CSR policy should not merely some social welfare activities but a holistic responsibility of business organization towards its shareholders, employees, consumers, related communities and environment however itโs sometime neglected. Companies may have sound HR, Marketing, Operation policies etc. but somehow they are confused regarding their CSR policies. They are sometime depending on some social welfare organizations who have very limited knowledge toward the need and responsibility of business organizations. Unoptimized CSR Activities is not creating any value addition to the company as well as to the society in true sense. A proper structure for CSR policy is required to be developed so that companies can exercise its responsibility towards 3Pโs (Profit, People and planet) effectively.
This study is done by combining primary data with secondary data related to CSR Activity of some major companies, in order to move forward in designing road map for future CSR activities.
CSR Activities of Companies having manufacturing Infrastructure like SAIL, Indian Oil, Power Sectors like NTPC, Adani Power, Tata Power etc. focused on defensive CSR Activities such as, Activities related to Environment, Care and Development of local community. Companies of Service Sector like Banking Sector like SBI, IDBI, HDFC etc are not focused to any fixed area.
Despite of some limitations the study addressed a scientific approach in this aspect.
CSR or Corporate Social Responsibility is a well-known concept and a globally recognized practice today. Though the term was coined first in 1953, it has gained momentum in the last one or two decades. India is leading the way if we analyze the current scenario. While CSR is a voluntary activity or is fragmented across multiple statutory requirements worldwide, India is the first nation to mandate it through the provisions of Companies Act 2013 and Companies (CSR Policy) Rules, 2014. India is also among the first few nations to establish a Social Stock Exchange which is expected to facilitate utilization of CSR funds in a more effective and disciplined manner.
Changing Dimensions of Corporate Social Responsibility in Indiaprofessionalpanorama
ย
philanthropy to a broader set of activities and integrates the practice of CSR into
the core strategy of the organisation. CSR is evolving in response to profound external
forces, including meeting legal and regulatory obligations and responding to the broader
public opinions. For many developing countries, a major limitation to CSR studies
has been the difficulties associated with proper legislative measures and measuring
CSR practices. CSR index can be used to calculate the level of a companyโs CSR
practices. Developing countries need a suitable CSR structure to implement CSR practices
in order to be able to identify the advantages for their stakeholders. Companies need
to identify the importance of cultivating a new set of CSR practices in order to compete
successfully in a global market. CSR is gradually metamorphosing from a mere philosophy
to a strong business case for Indian industry.
Changing dimensions of corporate social responsibility in indiaTapasya123
ย
Corporate Social Responsibility is gradually moving from its historical focus on business
philanthropy to a broader set of activities and integrates the practice of CSR into
the core strategy of the organisation. CSR is evolving in response to profound external
forces, including meeting legal and regulatory obligations and responding to the broader
public opinions. For many developing countries, a major limitation to CSR studies
has been the difficulties associated with proper legislative measures and measuring
CSR practices. CSR index can be used to calculate the level of a companyโs CSR
practices. Developing countries need a suitable CSR structure to implement CSR practices
in order to be able to identify the advantages for their stakeholders. Companies need
to identify the importance of cultivating a new set of CSR practices in order to compete
successfully in a global market. CSR is gradually metamorphosing from a mere philosophy
to a strong business case for Indian industry.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Concept of Corporate social responsibility
2. Types of CSR
3. Advantages
4. Concept of CSR under Indian law
5. Companies involved in CSR
6. Concept of CSR under English law
7. Conclusion
Social Enterpreneurship: A Form of Social Responsibility in Indiaprofessionalpanorama
ย
The social and economic hardships in India can be overcome through the innovation and
promotion of best practices and positive models as well as by spreading good examples of
social entrepreneurship and social responsibility. A major future challenge is not the proper
implementation of 2% Corporate Social Responsibility mandate but to ensure contribution of
businesses to reduce the problems and work for the betterment of the society by sustainable
means. The paper highlights the importance of social entrepreneurial ideas for improving the
business climate in the country. Social entrepreneurship is becoming a popular form of social
responsibility and a way to solve a variety of urgent social problems. In order for a society to
boost social entrepreneurship, it needs a specific environment where such ideas can emerge
and develop into an active business models. This paper aims to provide a comprehensive
literature review of terms social responsibility and social entrepreneurship. It also examines
the current social entrepreneurship activities in India. The paper concludes that social
entrepreneurship has a better impact and more desirable than Corporate Social
Responsibility.
In India from ancient time social responsibility is known as social duty or
charity, which is changing its nature in broader aspect, known as
Corporate Social Responsibility. Corporate Social Responsibility is defining
as a concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis. Now a dayโs organisations have realised
that ultimate goal is not profit making besides this trust building is viable
and assert able with societal relationship. Many of the leading companies
had realised the importance of being associated with social relevant causes
as a means of promoting their brand. Though, Indian companies are
practicing the Corporate Social Responsibility for decades but still it is at
its growth. A lack of understanding, inadequately trained personnel, policy
etc further adds to the reach and effectiveness of Corporate Social
Responsibility programs. This paper tries to focuses on the present status of
Corporate Social Responsibility in India.
Keywords: Corporate Social Responsibility, Organisations, Companies Act, Charity.
Corporate social responsibility status in indiaTapasya123
ย
In India from ancient time social responsibility is known as social duty or
charity, which is changing its nature in broader aspect, known as
Corporate Social Responsibility. Corporate Social Responsibility is defining
as a concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis. Now a dayโs organisations have realised
that ultimate goal is not profit making besides this trust building is viable
and assert able with societal relationship. Many of the leading companies
had realised the importance of being associated with social relevant causes
as a means of promoting their brand. Though, Indian companies are
practicing the Corporate Social Responsibility for decades but still it is at
its growth. A lack of understanding, inadequately trained personnel, policy
etc further adds to the reach and effectiveness of Corporate Social
Responsibility programs. This paper tries to focuses on the present status of
Corporate Social Responsibility in India.
Provisions for Corporate Social Responsibility in Companies Act, 2013RHIMRJ Journal
ย
CSR as a concept has attracted worldwide attention and acquired a new resonance in the global economy Heightened
interest in CSR in recent years has stemmed from the advent of globalisation and international trade, which has reflected in
increased business complexity and new demands for enhanced transparency and corporate citizenship. Moreover, while
Governments have traditionally assumed the sole responsibility for the improvement of the living conditions of the population,
societyโs needs have exceeded the capabilities of Governments to fulfill them. In this context, the spotlight is increasingly
turning to focus on the role of business in society and progressive companies are seeking to differentiate themselves through
engagement in what is referred to as CSR. The Companies Act, 2013 has taken one step ahead and introduced mandatory
provisions in the field of CSR. Though many believe that concerns on the new company law are manifold and it is a bold yet
not beautiful step. For instance, India Inc is concerned that the cost of board performance evaluation may outweigh the
benefits for many small companies in this regard. Also, it has concerns about the prospect of an over regulated regime and the
attendant scourge of corruption. Given the advantages and concerns on the new regulations introduced by the new Companies
Act, we all need to wait and watch once the companies start implementing the new provisions and therefore, the practical
aspects and implications will be evaluated thereafter.
These slides are for teachers and researchers to know how to address student-centered learning
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Critical thinking , these three dimensions are addressed in the slides. Please do share your thoughts.
This presentation is provide introduction to research design with focus on distinction between different strategies' of Research. Especially qualitative, quantitative and mixed methods. .
One question that always works in the mind of the research scholar is what are the likely questions by examiners for evaluation as well a viva. Here are some guidelines.
What is the significance of p value while reporting statistical analysis. Is there an alternate approach for Fisher, if so what is that approach. These are some of the issues addressed here.
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Here different concepts you come across in the research methodology are discussed. It is applicable to social sciences to a large extent. The definitions are explained in a way that will be understood by social scientists.
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Business Valuation Principles for EntrepreneursBen Wann
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This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Memorandum Of Association Constitution of Company.pptseri bangash
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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This article provides a comprehensive guide on how to
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Companies Act 2013 and Corporate Social Responsibility
1. Companies Act 2013 and CSR
Opportunity or Quibble?
Dr.K.Prabhakar,
Professor,
SRM University
1
Centre for Social Initiatives and Management
1/11/2014
2. Some Questions
๏ What kind of economic growth is needed for the
2
country -Developmental Growth or Welfare Based
Growth?
๏ 66.33% of Profits is given for philanthropic
activities by an organization. Is it possible to rate
the organization as most CSR sensitive
organization?
๏ Why legislation when companies in India are
already doing a lot for education (Wipro; Reddy
Labs; Tata), Vedanta (Girl Child )?
๏ Legislation is good or dysfunctional as companies
may try to quibble rather than to meet the sprit of
Centre for Social Initiatives and Management
1/11/2014
law.
3. Opportunity- the first legislation in the
world
๏ The new Companies Act 2013, which lays down
that 2% of profits earned by a certain class of
companies must be spent on corporate social
responsibility activities, would mean an estimated
Rs. 27,000 crore (estimates) will flow into
grassroots development and social enterprise
sectors every year.
๏ According to the Indian Institute of Corporate
Affairs, of the 1.3 million companies in India, about
6,000-7,000 companies are covered under the new
CSR rule.
3
Centre for Social Initiatives and Management
1/11/2014
4. Development Growth vs. Welfare
Based Growth
๏ India is a country of myriad contradictions. On the
one hand, it has grown to be one of the largest
economies in the world, and an increasingly
important player in the emerging global order, on
the other hand, it is still home to the largest number
of people living in absolute poverty (even if the
proportion of poor people has decreased (?) and
the largest number of undernourished children.
What emerges is a picture of uneven distribution of
the benefits of growth which many believe, is the
root cause of social unrest.
Ref: Handbook on Corporate Social Responsibility
in India (www.pwc.in)
Question marks introduced by author
4
Centre for Social Initiatives and Management
1/11/2014
5. Definitions and Operationalization
CSR is โthe responsibility of enterprises
for their impacts on societyโ.
To completely meet their social
responsibility, enterprises โshould have in
place a process to integrate social,
environmental, ethical human rights
and consumer concerns into their
business operations and core strategy
in close collaboration with their
stakeholdersโ .
5
Ref:
(http://ec.europa.eu/enterprise/policies/sustainableCentre for Social Initiatives and Management
1/11/2014
business/corporate-social-responsibility/index_
6. Definitionsโฆ
6
โCorporate social responsibility is a management
concept whereby companies integrate social and
environmental concerns in their business operations
and interactions with their stakeholders.
CSR is generally understood as being the way
through which a company achieves a balance of
economic, environmental and social imperatives
(Triple-Bottom-Line Approach), while at the same time
addressing the expectations of shareholders and
stakeholders. In this sense it is important to draw a
distinction between CSR, which can be a strategic
business management concept, and
charity, sponsorships or philanthropy.
Ref: (http://www.unido.org/en/what-wedo/trade/csr/what-is-csr.html)
Centre for Social Initiatives and Management
1/11/2014
7. CSR in Indian Context
๏ CSR in India has traditionally been seen as a
7
philanthropic activity. And in keeping with the
Indian tradition, it was an activity that was
performed but not deliberated. As a result, there is
limited documentation on specific activities related
to this concept. However, what was clearly evident
that much of this had a national character
encapsulated within it, whether it was endowing
institutions to actively participating in Indiaโs
freedom movement, and embedded in the idea of
trusteeship.
Ref: Handbook on Corporate Social Responsibility
in India (www.pwc.in)
Centre for Social Initiatives and Management
1/11/2014
8. Philosophy of Business and Charity
๏ As water collected in a tank gets pure by
filtration, so accumulated wealth is preserved
by being employed in charity- CHANAKYA,
Vridda-Chanakya
8
Centre for Social Initiatives and Management
1/11/2014
9. CSR in Indian Context
๏ Sustainability (corporate sustainability) is derived
9
from the concept of sustainable development.
๏ โ Sustainable development is meeting the needs
of the present without compromising the ability of
future generations to meet their own needsโ Brundtland Commission.
๏ Corporate sustainability essentially refers to the
role that companies can play in meeting the
agenda of sustainable development and entails a
balanced approach to economic progress, social
progress and environmental stewardship.
For a discerning reader: History of CSR in India
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(http://soulace.in/blog/)
10. The Missing Link
๏ CSR in India tends to focus on what is done with
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profits after they are made.
๏ Sustainability is about factoring the social and
environmental impacts of conducting business, that is,
how profits are made.
๏ Hence, much of the Indian practice of CSR is an
important component of sustainability or responsible
business, which is a larger idea, a fact that is evident
from various sustainability frameworks. National
Voluntary Guidelines for social, environmental and
economic responsibilities of business (issued by the
Ministry of Corporate Affairs in June 2011) principle
eight relating to inclusive development encompasses
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most of Initiatives and Management
11. Context
โThe Companies Act, 2013 aims to improve
corporate governance by simplifying
regulations, enhance the interests of minority
investors and for the first time legislates the role of
whistle-blowers. The new law will replace
Companies Act, 1956โ.
โ The corporate regulations are made
contemporary and made as a model for other
economies with similar characteristics. It is a rule
based legislation with more than 180 sections
prescribing rules. CSR which was voluntary is
legislated for the first timeโ.
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12. Principles VS Rule Based
Legislations
๏ Principles-based legislation focuses on accountability
and outcomes (for example, service delivery, financial
statements and annual reports). This approach
provides senior management with greater flexibility to
determine the processes and functions to be used in
the delivery of an agencyโs objectives and services.
๏ Rules-based legislation contains detailed legislative
requirements demanding agency compliance and
tends to be detailed in content, complex in
interpretation, and prescriptive in application. It
attempts to address the current social, economic and
legal environment in which the legislation has been
framed, and results in the legislation requiring
constant revision as these factors change.
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Ref:(http://www.treasury.qld.gov.au/office/knowledge/docs/fina
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ncial-accountability-handbook/1-3-principles-based- 1/11/2014
14. CSR Legislation-Quibble?
๏ In terms of fiction, a quibble is a plot device, used
to fulfill the exact verbal conditions of an
agreement in order to avoid the intended meaning.
Typically quibbles are used in legal bargains
and, in fantasy, magically enforced ones.
๏ In one of the best known examples, William
Shakespeare used a quibble in The Merchant of
Venice. Portia saves Antonio in a court of law by
pointing out that the agreement called for a pound
of flesh, but no blood, and therefore Shylock can
collect only if he sheds no blood.
(Wikipedia)
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15. Initiatives of State
๏ผ PMโs Ten Point Social Charter
๏ผ Voluntary Guidelines on CSR, 2009
๏ผ From the year 2010-11, the Department of Public
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Enterprises, India has substantially incentivised
Sustainable Development & CSR for Public Sector
Enterprises (PSEs);
๏ผ National
Voluntary
Guidelines
on
Social,
Environmental
and
Economic
Responsibilities
2011
(NVGs:
the
revised, elaborated version of 2009 CSR
Guidelines )
๏ผ Planning Commission and Task Force on Business
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Regulation
16. UN Global Compact
๏ Human Rights
๏ Principle 1: Businesses should support and respect the protection of
๏
๏
๏
๏
๏
๏
internationally proclaimed human rights; and
Principle 2: make sure that they are not complicit in human rights abuses.
Labour
Principle 3: Businesses should uphold the freedom of association and the
effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect of employment and
occupation.
๏ Environment
๏ Principle 7: Businesses should support a precautionary approach to
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environmental challenges;
๏ Principle 8: undertake initiatives to promote greater environmental responsibility;
and
๏ Principle 9: encourage the development and diffusion of environmentally friendly
technologies.
๏ Anti-Corruption
๏ Principle 10: Businesses should work against corruption in all its forms, including
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extortion and bribery.
17. Principles of NVG
๏ Principle 1: Ethics, Transparency and Accountability
๏ Principle 2: Providing Goods and Services that are
๏
๏
๏
๏
๏
๏
๏
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Sustainable over entire Life Cycle
Principle 3: Well-being of Employees
Principle 4: Being Responsive towards Stakeholders,
especially the disadvantaged
Principle 5: Respecting and Promoting Human Rights
Principle 6: Protecting and Restoring the Environment
Principle 7: Responsible Policy Advocacy that enhances
Public Good
Principle 8: Supporting Inclusive Growth and Development
Principle 9: Providing Value to Customers responsibly
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18. Application and Constitution of Committee
(Sec 135 of the Companies Act 2013)
Every company
- 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
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 .
๏ The Board of every company referred to above
shall after taking into account the
recommendations made by CSR Committee.
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19. mandate of the said CSR
committee
๏ To formulate and recommend to the Board, a Corporate Social
19
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
๏ To monitor the Corporate Social Responsibility Policy of the
company from time to time
๏ To approve the CSR Policy for the company and disclose
contents of such Policy in its report and also place it on the
companyโs website, and
๏ To ensure that the activities as are included in CSR Policy of the
company are undertaken by the company, and - ensure that the
company spends, in every financial year, at least two per cent of
the average net profits
๏ โข If the Company fails to spend such amount, the Board shall, in
its report specify the reasons for not spending the amount.
๏ โAverage net profitโ shall be calculated in accordance with the
provisions of section 198 of the 2013 Act. It is profit before tax
and not including profits made outside country.
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20. Schedule VII- An inclusive definition
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CSR activities to include:
1. 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.
2. 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.
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3. The 2013 Act provides that the company shall give
21. Draft CSR rules
๏ โข โNet Profitโ for the section 135 and these rules
shall mean, net profit before tax as per books of
accounts and shall not include profits arising from
branches outside India.
๏ โข Reporting will be done on an annual basis
commencing from FY 2014-15
๏ โข Tax treatment of CSR spend will be in accordance
with the IT Act as may be notified by the Central
Board of Direct Taxes (CBDT)
๏ โข CSR activities may generally be conducted as
projects or programmes (either new or ongoing)
excluding activities undertaken in pursuance of the
normal course of business of a company
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22. What CSR Committee Should do?
๏ โข The CSR Committee shall prepare the CSR Policy of the
๏
๏
๏
๏
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company which shall include the following:
Specify the projects and programmes to be undertaken
Prepare a list of CSR projects/programmes which a
company plans to undertake during the implementation
year, specifying modalities of execution in the areas/sectors
chosen and implementation schedules for the same
CSR projects/programmes of a company may also focus on
integrating business models with social and environmental
priorities and processes in order to create shared value surplus arising out of the CSR activity will not be part of
business profits of a company and should be credited to
CSR initiative.
Would specify that the corpus would include 2 percent of
the average net profits, any income arising there from, and
surplus arising out of CSR activities need to be credited to
CSR Corpus.
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23. โฆ
๏ Where a company has been set up with a
charitable objective or is a
Trust/Society/Foundation/any other form of entity
operating within India to facilitate implementation of
its CSR activities, the following shall apply:
๏ Contributing company would need to specify the
projects/ programs to be undertaken by such an
organization, for utilizing funds provided by it;
๏ Contributing company shall establish a monitoring
mechanism to ensure that the allocation is spent
for the intended purpose only
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29. Clarifications already given
๏ Surplus arising out of CSR activities will have to be reinvested
29
into CSR initiatives or corpus, and this will be over and above the
2% figure.
๏ The company can implement its CSR activities through the
following methods:
๏ Through its own non-profit foundation set- up so as to facilitate
this initiative
๏ Through independently registered non-profit organizations
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 Social Initiatives and statement
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implementation and monitoring process is in compliance with the
30. Clarity is needed and some
thoughts
๏ There is a debate as to whether any penal
consequences will emanate on failure to spend, or
an explanation in the directorsโ report. "serious
offenceโ says Sachin Pilot.
๏ There may be reluctance in compliance for loss
making companies.
๏ It is not clear what all constitutes CSR activities as
the list specified under Schedule VII of the Act
seems is an inclusive list and not exhaustive. It is
narrow. But it cannot be so broad for practical
reasons.
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31. Business responsibility reporting
๏ The other reporting requirement mandated by the government of
India, including CSR is by the SEBI which issued a circular on 13
August 2012 mandating the top 100 listed companies to report
their Environmental, Social and Governance initiatives.
๏ These are to be reported in the form of a BRR as a part of the
annual report.
๏ Business responsibility reporting is in line with the NVG
published by the Ministry of Corporate Affairs in July 2011.
Provisions have also been made in the listing agreement to
incorporate the submission of BRR by the relevant companies.
๏ The listing agreement also provides the format of the BRR. The
BRR requires companies to report their performance on the nine
NVG principles. Other listed companies have also been
encouraged by SEBI to voluntarily disclose information on their
ESG performance in the BRR format.
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32. References
Comments and Information
http://www.safrg.org/uploads/getready4csr.pdf
http://the4thwheel.com/Blog/companiesbill2011/
http://www.indiacsr.in/en/
๏ Research on NGOshttp://www.indiacsr.in/en/ Perception
(http://samhita.org/voices-from-the-field-social-sectors-feedback-andpreparedness-on-section-135/)
๏ Sanjay Kumar Sharma(2013),A 360 degree analysis of Corporate Social
Responsibility (CSR) Mandate of the New Companies Act, 2013
๏ National Voluntary Guidelines on SEE Responsibilities of Business
(http://www.mca.gov.in/Ministry/latestnews/National_Voluntary_Guidelines_2011
_12jul2011.pdf )
๏ Global Compact
http://www.unglobalcompact.org/
๏ SEBI Guidelines for BRR
(http://www.sebi.gov.in/cms/sebi_data/attachdocs/1344915990072.pdf)
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