Corporate Social Responsibility is a new and untouched phinomina for Indian Companies and introduction of it from Financial Year 2014-15 as compliance for selective categories of companies, there is going to be a far reaching impact of it into the society and economy
Corporate social responsibility (CSR) refers to how businesses negotiate their role in society, while business ethics examines morally appropriate behaviors. While related, CSR does not guarantee ethical behavior. Interest in CSR is growing as companies are increasingly rated on social criteria. Companies engage in CSR to meet public expectations, hire and retain employees, and improve performance. Activities range from profit-maximizing to integrating social objectives into business goals. Businesses are developing global ethics through codes of conduct, certification, and following global standards to create consistent rules and reduce uncertainties in interconnected markets. Challenges include rules reflecting powerful interests and inhibiting innovation and adaptation to globalization.
Corporate Social Responsibility, CSR amendments under the Companies (Amendment) Act, 2019, Benefits of CSR, Management of Socially Responsible Business, Pyramid of CSR, Economic Responsibility, Legal Responsibility
Ethical Responsibility, Philanthropic Responsibility, discretionary responsibility, Section 135 and Schedule VII of Companies Act, Entries in Schedule VII, Types of CSR activities under Schedule VII of the Companies Act 2013, Business Ethics, CSR of Business Towards Stake Holders, Social Responsibilities of Business Towards Different Stakeholders-SHAREHOLDERS, GOVERNMENT, CUSTOMERS, EMPLOYEES, SOCIETY, Reasons for Businesses to Engage in CSR, Social Responsibility ----
Arguments for/ in favour of Social Responsibility of Business, Social Responsibility ----
Arguments Against Social Responsibility of Business, CSR Activities of Companies
The document discusses the concepts of corporate social responsibility (CSR), social responsiveness, and social performance. It provides definitions and frameworks for understanding a company's responsibilities and obligations to society beyond profit and legal compliance. Carroll's four-part definition of CSR as encompassing economic, legal, ethical, and discretionary expectations is discussed.
Corporate Social Responsibility (CSR) refers to voluntary actions that businesses take to operate in an economically, socially, and environmentally sustainable manner. CSR acknowledges that companies have a responsibility to various stakeholders, including employees, customers, investors, communities, and the environment. CSR involves businesses integrating social and environmental concerns into their operations and interactions with stakeholders on a voluntary basis.
The document discusses the key aspects of corporate social responsibility (CSR) requirements for companies according to the Companies Act 2013 in India. It defines CSR and outlines the applicability to companies with a net worth of 500 crore rupees or more, turnover of 1000 crore rupees or more, or net profit of 5 crore rupees or more. It specifies that applicable companies must spend 2% of their average net profits of the previous three years on CSR activities related to issues like poverty, education, healthcare, environment and more.
This document discusses corporate social responsibility (CSR). It defines CSR as a business's commitment to behave ethically and contribute to economic development while improving quality of life for employees, local communities, and society. The document notes that while some business practices like misleading ads or poor working conditions may increase profits, they have adverse societal effects. For long term success, businesses must act in socially responsible and ethical ways. It provides examples of companies implementing CSR programs around environmental protection, community development, and more.
Meaning & definition of CSR
History & evolution of CSR
Motives of CSR
Benefits and internal scope of CSR
Enterprise social responsibility
Concept of sustainability & stakeholder management
CSR through triple bottom line and sustainable business
Environmental aspect of CSR
Chronological evolution of CSR in India
Syllabus as prescribed by RTM Nagpur University for the course 'CSR and Sustainability, for MBA Programme
Corporate social responsibility (CSR) refers to how businesses negotiate their role in society, while business ethics examines morally appropriate behaviors. While related, CSR does not guarantee ethical behavior. Interest in CSR is growing as companies are increasingly rated on social criteria. Companies engage in CSR to meet public expectations, hire and retain employees, and improve performance. Activities range from profit-maximizing to integrating social objectives into business goals. Businesses are developing global ethics through codes of conduct, certification, and following global standards to create consistent rules and reduce uncertainties in interconnected markets. Challenges include rules reflecting powerful interests and inhibiting innovation and adaptation to globalization.
Corporate Social Responsibility, CSR amendments under the Companies (Amendment) Act, 2019, Benefits of CSR, Management of Socially Responsible Business, Pyramid of CSR, Economic Responsibility, Legal Responsibility
Ethical Responsibility, Philanthropic Responsibility, discretionary responsibility, Section 135 and Schedule VII of Companies Act, Entries in Schedule VII, Types of CSR activities under Schedule VII of the Companies Act 2013, Business Ethics, CSR of Business Towards Stake Holders, Social Responsibilities of Business Towards Different Stakeholders-SHAREHOLDERS, GOVERNMENT, CUSTOMERS, EMPLOYEES, SOCIETY, Reasons for Businesses to Engage in CSR, Social Responsibility ----
Arguments for/ in favour of Social Responsibility of Business, Social Responsibility ----
Arguments Against Social Responsibility of Business, CSR Activities of Companies
The document discusses the concepts of corporate social responsibility (CSR), social responsiveness, and social performance. It provides definitions and frameworks for understanding a company's responsibilities and obligations to society beyond profit and legal compliance. Carroll's four-part definition of CSR as encompassing economic, legal, ethical, and discretionary expectations is discussed.
Corporate Social Responsibility (CSR) refers to voluntary actions that businesses take to operate in an economically, socially, and environmentally sustainable manner. CSR acknowledges that companies have a responsibility to various stakeholders, including employees, customers, investors, communities, and the environment. CSR involves businesses integrating social and environmental concerns into their operations and interactions with stakeholders on a voluntary basis.
The document discusses the key aspects of corporate social responsibility (CSR) requirements for companies according to the Companies Act 2013 in India. It defines CSR and outlines the applicability to companies with a net worth of 500 crore rupees or more, turnover of 1000 crore rupees or more, or net profit of 5 crore rupees or more. It specifies that applicable companies must spend 2% of their average net profits of the previous three years on CSR activities related to issues like poverty, education, healthcare, environment and more.
This document discusses corporate social responsibility (CSR). It defines CSR as a business's commitment to behave ethically and contribute to economic development while improving quality of life for employees, local communities, and society. The document notes that while some business practices like misleading ads or poor working conditions may increase profits, they have adverse societal effects. For long term success, businesses must act in socially responsible and ethical ways. It provides examples of companies implementing CSR programs around environmental protection, community development, and more.
Meaning & definition of CSR
History & evolution of CSR
Motives of CSR
Benefits and internal scope of CSR
Enterprise social responsibility
Concept of sustainability & stakeholder management
CSR through triple bottom line and sustainable business
Environmental aspect of CSR
Chronological evolution of CSR in India
Syllabus as prescribed by RTM Nagpur University for the course 'CSR and Sustainability, for MBA Programme
CSR refers to the economic, ethical, legal, and discretionary responsibilities of organizations to society. Firms have moral obligations along with earning profits and following laws. CSR policies aim to integrate public interest into decisions and balance stakeholders, planet, and profits. CSR involves various voluntary efforts to address societal and environmental issues in a responsible manner that benefits both society and the company. The history of CSR began in the 18th century but the concept gained prominence in the 1960s-1970s as societal expectations of businesses increased regarding civil rights, consumerism, and environmentalism.
This document discusses trends and opportunities in corporate social responsibility (CSR). It begins with an overview of increasing CSR expenditures in India from 2014-2019. Next, it outlines five CSR trends for 2020 according to Forbes, including addressing fake news, achieving carbon neutrality, supporting employees, pursuing long-term purpose, and exploring emerging issues. It then characterizes CSR as a strategic business tool that can satisfy diverse stakeholders. The document also notes challenges for traditional CSR due to COVID-19, such as reduced budgets and priorities shifting to pandemic relief. It concludes with instructions for accessing case studies of major CSR initiatives on the Indian government's CSR portal.
Identifying key stakeholders of CSR & their roles
Role of Public Sector in Corporate government programs that encourage voluntary responsible action of corporations
Role of Nonprofit & Local Self Governance in implementing CSR
Contemporary issues in CSR & MDGs
Global Compact Self Assessment Tool
National Voluntary Guidelines by Govt. of India
Understanding roles and responsibilities of corporate foundations
This document provides an introduction to corporate social responsibility (CSR), including a definition, reasons for adopting CSR programs, potential objections to CSR, and how CSR programs can be communicated and reported. It discusses the business advantages of CSR in areas like human resources, risk management, and brand differentiation. It also presents alternative viewpoints on CSR and considers frameworks for CSR reporting, including using triple bottom line accounting and standards from organizations like the Global Reporting Initiative.
This document discusses corporate social responsibility (CSR) in detail. It provides meanings and definitions of CSR, outlines the responsibilities of businesses towards various stakeholders like society, government, shareholders, employees and consumers. It also discusses various CSR principles and strategies, models of CSR like Friedman model and Carroll model, best practices, and the need for CSR. The document is a comprehensive overview of the topic of CSR.
Corporate Social Responsibility - An OverviewVineet Murli
This document discusses the concept of corporate social responsibility (CSR). It defines CSR as companies taking responsibility for their environmental and social impacts and engaging in activities that benefit society beyond legal requirements. The document outlines the basic principles of CSR, including that businesses are interconnected with society and have responsibilities beyond profit and shareholders. It also provides examples of CSR initiatives in India and discusses approaches companies take to CSR.
1) The document discusses corporate social responsibility (CSR) in Colombia. It outlines four key things for investors to know about CSR in Colombia.
2) CSR is voluntary for businesses and commitments derived from CSR are generally not legally binding. However, there are international and domestic tools that can help companies incorporate CSR.
3) Colombia has adopted the OECD Guidelines for Multinational Enterprises, which establish voluntary principles and standards for responsible business conduct consistent with domestic and international law.
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.
CSR in Global Context and in International BusinessNiña Mae Alota
This topic is composed of two topics - CSR in Global Context and CSR in International Business. The two topics have subtopics that discussed in the following slides. This will help you to know more on the welfare a corporation or business must have in order to preserve the dignity of humanity, living things, and the environment. It also discussed the effects of CSR both in globally and internationally.
Corporate social responsibility (CSR) is defined as businesses behaving ethically and contributing to economic development while improving quality of life for employees, local communities, and society. Businesses depend on society for infrastructure, workforce, consumers, and more, so they have a responsibility to give back. CSR can be implemented through adopting strong values, generating stakeholder intelligence, and responding positively to stakeholder issues. It provides benefits like improved reputation, sales, employee retention, and risk management. CSR addresses issues like community assistance, health/welfare, education, human rights, and the environment. Responsibilities include product quality, reasonable prices, ethical advertising, and supporting community programs.
Corporate social responsibility (CSR) explores businesses' responsibilities to society beyond legal and economic obligations. While having no set definition, CSR generally involves balancing economic, environmental, and social imperatives. It addresses how companies manage their relationships and impacts on stakeholders like employees, customers, investors, and local communities. Debate around CSR concerns whether businesses' sole purpose is maximizing shareholder value or if they have broader duties. The concept has evolved from early 20th century critiques of large corporations' power and influences to today's focus on sustainability and managing social and environmental risks for long-term success.
Corporate social responsibility: How economic is it to be socially responsible??kirmanialika
This document discusses corporate social responsibility (CSR). It defines CSR as companies managing business processes to have an overall positive social impact, and embracing responsibility for actions to encourage positive environmental, consumer, employee, community, and stakeholder impacts. CSR involves balancing economic, legal, ethical, and philanthropic responsibilities. The document outlines the historical development of CSR and key CSR issues. It discusses arguments for and against CSR, and provides an example of CSR practices at ITC Limited in India. In conclusion, it argues that while CSR limits profits, businesses impact many people and have a social responsibility to consider people and the planet, not just profits.
1) The document discusses the history and evolution of corporate social responsibility (CSR) in India, from ancient texts to modern laws.
2) It outlines the four phases of CSR in India and examines the Companies Act of 2013 which mandates that large companies spend 2% of profits on CSR activities.
3) While CSR spending has increased, challenges remain around a lack of transparency, clear guidelines, and ensuring activities benefit marginalized groups as intended by the law.
Corporate social responsibility (CSR) refers to business initiatives that benefit society. CSR aims to balance economic, social and environmental interests with shareholders. In India, the Companies Act of 2013 mandates that large companies spend 2% of their net profits on CSR activities. Some key CSR activities done by ITC Ltd include empowering small farmers through education, social and farm forestry projects, integrated watershed development, and programs to empower and educate rural women. While CSR can improve reputation and attract investors, it also risks shifting focus from profit objectives and damaging company reputation if not implemented continuously. Both economic development and CSR are important, with CSR needing to be deeply ingrained in an organization's culture.
Needs and importance of corporate social responsibilityAngelinDafni
Corporate social responsibility is important for several reasons:
1) It helps solve social problems by allowing organizations to allocate resources to issues. For example, companies addressed concerns about aerosol sprays or job satisfaction.
2) It improves a firm's public image and reputation, which can increase goodwill and profits. Initiatives like limiting political involvement or donating to charities reflect positively on brands.
3) Addressing social and environmental issues through CSR helps attract and retain customers, investors, and talented employees while strengthening communities. This benefits businesses in the long run.
This document discusses corporate social responsibility (CSR), including its definition, evolution over time, drivers, and examples in India. CSR is defined as how companies manage business processes to have an overall positive social impact. It has evolved from social stewardship in the 1950s-60s to global citizenship today. Key drivers of CSR include shrinking government roles, disclosure demands, investor pressure, and competitive markets. Major Indian companies like Tata, Infosys, and Mahindra have established CSR programs in areas like community health, education, and the environment. New legislation in India will require large companies to spend at least 2% of profits on social initiatives.
This document discusses CSR legislation in India according to Section 135 of the Companies Act 2013. It mandates that companies meeting certain profit thresholds must spend 2% of their average net profits of the previous three years on CSR activities focused on areas like poverty alleviation, education, gender equality, healthcare, environment sustainability and others. Companies are required to form a CSR committee to devise and monitor CSR strategies. While there are no penalties for failing to spend on CSR, companies can be fined for failing to report on CSR activities or explain why spending was not done. The top CSR performing companies in India are also mentioned.
The water area presents its annual report that reflects the activity of the company and its actions during 2014, both social and economic and environmental, within the framework of the organization's internal rules, the Global Compact principles (Abengoa is a member) and the laws of the countries in which Abengoa Water works.
Presentation 9Apr2010 at Lokey Graduate School of Business, Center For Socially Responsible Business conference "Three Ps: People, Planet, Profit." Suzanne Fallender, Director, CSR Strategy & Communications, Intel
View the video:http://vimeo.com/11330604
CSR refers to the economic, ethical, legal, and discretionary responsibilities of organizations to society. Firms have moral obligations along with earning profits and following laws. CSR policies aim to integrate public interest into decisions and balance stakeholders, planet, and profits. CSR involves various voluntary efforts to address societal and environmental issues in a responsible manner that benefits both society and the company. The history of CSR began in the 18th century but the concept gained prominence in the 1960s-1970s as societal expectations of businesses increased regarding civil rights, consumerism, and environmentalism.
This document discusses trends and opportunities in corporate social responsibility (CSR). It begins with an overview of increasing CSR expenditures in India from 2014-2019. Next, it outlines five CSR trends for 2020 according to Forbes, including addressing fake news, achieving carbon neutrality, supporting employees, pursuing long-term purpose, and exploring emerging issues. It then characterizes CSR as a strategic business tool that can satisfy diverse stakeholders. The document also notes challenges for traditional CSR due to COVID-19, such as reduced budgets and priorities shifting to pandemic relief. It concludes with instructions for accessing case studies of major CSR initiatives on the Indian government's CSR portal.
Identifying key stakeholders of CSR & their roles
Role of Public Sector in Corporate government programs that encourage voluntary responsible action of corporations
Role of Nonprofit & Local Self Governance in implementing CSR
Contemporary issues in CSR & MDGs
Global Compact Self Assessment Tool
National Voluntary Guidelines by Govt. of India
Understanding roles and responsibilities of corporate foundations
This document provides an introduction to corporate social responsibility (CSR), including a definition, reasons for adopting CSR programs, potential objections to CSR, and how CSR programs can be communicated and reported. It discusses the business advantages of CSR in areas like human resources, risk management, and brand differentiation. It also presents alternative viewpoints on CSR and considers frameworks for CSR reporting, including using triple bottom line accounting and standards from organizations like the Global Reporting Initiative.
This document discusses corporate social responsibility (CSR) in detail. It provides meanings and definitions of CSR, outlines the responsibilities of businesses towards various stakeholders like society, government, shareholders, employees and consumers. It also discusses various CSR principles and strategies, models of CSR like Friedman model and Carroll model, best practices, and the need for CSR. The document is a comprehensive overview of the topic of CSR.
Corporate Social Responsibility - An OverviewVineet Murli
This document discusses the concept of corporate social responsibility (CSR). It defines CSR as companies taking responsibility for their environmental and social impacts and engaging in activities that benefit society beyond legal requirements. The document outlines the basic principles of CSR, including that businesses are interconnected with society and have responsibilities beyond profit and shareholders. It also provides examples of CSR initiatives in India and discusses approaches companies take to CSR.
1) The document discusses corporate social responsibility (CSR) in Colombia. It outlines four key things for investors to know about CSR in Colombia.
2) CSR is voluntary for businesses and commitments derived from CSR are generally not legally binding. However, there are international and domestic tools that can help companies incorporate CSR.
3) Colombia has adopted the OECD Guidelines for Multinational Enterprises, which establish voluntary principles and standards for responsible business conduct consistent with domestic and international law.
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.
CSR in Global Context and in International BusinessNiña Mae Alota
This topic is composed of two topics - CSR in Global Context and CSR in International Business. The two topics have subtopics that discussed in the following slides. This will help you to know more on the welfare a corporation or business must have in order to preserve the dignity of humanity, living things, and the environment. It also discussed the effects of CSR both in globally and internationally.
Corporate social responsibility (CSR) is defined as businesses behaving ethically and contributing to economic development while improving quality of life for employees, local communities, and society. Businesses depend on society for infrastructure, workforce, consumers, and more, so they have a responsibility to give back. CSR can be implemented through adopting strong values, generating stakeholder intelligence, and responding positively to stakeholder issues. It provides benefits like improved reputation, sales, employee retention, and risk management. CSR addresses issues like community assistance, health/welfare, education, human rights, and the environment. Responsibilities include product quality, reasonable prices, ethical advertising, and supporting community programs.
Corporate social responsibility (CSR) explores businesses' responsibilities to society beyond legal and economic obligations. While having no set definition, CSR generally involves balancing economic, environmental, and social imperatives. It addresses how companies manage their relationships and impacts on stakeholders like employees, customers, investors, and local communities. Debate around CSR concerns whether businesses' sole purpose is maximizing shareholder value or if they have broader duties. The concept has evolved from early 20th century critiques of large corporations' power and influences to today's focus on sustainability and managing social and environmental risks for long-term success.
Corporate social responsibility: How economic is it to be socially responsible??kirmanialika
This document discusses corporate social responsibility (CSR). It defines CSR as companies managing business processes to have an overall positive social impact, and embracing responsibility for actions to encourage positive environmental, consumer, employee, community, and stakeholder impacts. CSR involves balancing economic, legal, ethical, and philanthropic responsibilities. The document outlines the historical development of CSR and key CSR issues. It discusses arguments for and against CSR, and provides an example of CSR practices at ITC Limited in India. In conclusion, it argues that while CSR limits profits, businesses impact many people and have a social responsibility to consider people and the planet, not just profits.
1) The document discusses the history and evolution of corporate social responsibility (CSR) in India, from ancient texts to modern laws.
2) It outlines the four phases of CSR in India and examines the Companies Act of 2013 which mandates that large companies spend 2% of profits on CSR activities.
3) While CSR spending has increased, challenges remain around a lack of transparency, clear guidelines, and ensuring activities benefit marginalized groups as intended by the law.
Corporate social responsibility (CSR) refers to business initiatives that benefit society. CSR aims to balance economic, social and environmental interests with shareholders. In India, the Companies Act of 2013 mandates that large companies spend 2% of their net profits on CSR activities. Some key CSR activities done by ITC Ltd include empowering small farmers through education, social and farm forestry projects, integrated watershed development, and programs to empower and educate rural women. While CSR can improve reputation and attract investors, it also risks shifting focus from profit objectives and damaging company reputation if not implemented continuously. Both economic development and CSR are important, with CSR needing to be deeply ingrained in an organization's culture.
Needs and importance of corporate social responsibilityAngelinDafni
Corporate social responsibility is important for several reasons:
1) It helps solve social problems by allowing organizations to allocate resources to issues. For example, companies addressed concerns about aerosol sprays or job satisfaction.
2) It improves a firm's public image and reputation, which can increase goodwill and profits. Initiatives like limiting political involvement or donating to charities reflect positively on brands.
3) Addressing social and environmental issues through CSR helps attract and retain customers, investors, and talented employees while strengthening communities. This benefits businesses in the long run.
This document discusses corporate social responsibility (CSR), including its definition, evolution over time, drivers, and examples in India. CSR is defined as how companies manage business processes to have an overall positive social impact. It has evolved from social stewardship in the 1950s-60s to global citizenship today. Key drivers of CSR include shrinking government roles, disclosure demands, investor pressure, and competitive markets. Major Indian companies like Tata, Infosys, and Mahindra have established CSR programs in areas like community health, education, and the environment. New legislation in India will require large companies to spend at least 2% of profits on social initiatives.
This document discusses CSR legislation in India according to Section 135 of the Companies Act 2013. It mandates that companies meeting certain profit thresholds must spend 2% of their average net profits of the previous three years on CSR activities focused on areas like poverty alleviation, education, gender equality, healthcare, environment sustainability and others. Companies are required to form a CSR committee to devise and monitor CSR strategies. While there are no penalties for failing to spend on CSR, companies can be fined for failing to report on CSR activities or explain why spending was not done. The top CSR performing companies in India are also mentioned.
The water area presents its annual report that reflects the activity of the company and its actions during 2014, both social and economic and environmental, within the framework of the organization's internal rules, the Global Compact principles (Abengoa is a member) and the laws of the countries in which Abengoa Water works.
Presentation 9Apr2010 at Lokey Graduate School of Business, Center For Socially Responsible Business conference "Three Ps: People, Planet, Profit." Suzanne Fallender, Director, CSR Strategy & Communications, Intel
View the video:http://vimeo.com/11330604
The document discusses Intel's corporate social responsibility initiative. It provides an overview of Intel's business and products. It then analyzes Intel's CSR policies and goals regarding environmental sustainability and international development. It discusses Intel's successes in areas like green building certification and investing in renewable energy. It also notes some failures to meet targets in reducing water and chemical waste. Suggestions are provided to improve transparency, accountability, and regular review of CSR progress. The summary concludes that Intel is working to meet its environmental sustainability goals by 2020.
Fujitsu's corporate social responsibility approach focuses on five pillars: environment, safety, inclusion, wellbeing, and social action. Through its Business Connector Programme, Fujitsu supports local communities and develops talent. As a Business Connector, Fujitsu works to establish sustainable partnerships in education, employment, and social cohesion in North Manchester by ensuring residents have skills needed by employers and engaging youth. Fujitsu has connected with organizations like Kelly Services and Manchester Communications Academy to support employability and education. Allowing employees to take time for social enterprise work provides unique learning opportunities and benefits Fujitsu through employee engagement and an extended network.
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.
Google engages in various corporate social responsibility initiatives in China and globally, such as providing funding for social innovation projects by Chinese college students, donating money and resources to earthquake relief efforts in China, and awarding grants to charitable organizations through its Google Grants program. Google also donates money to combat human trafficking and launches challenges to fund social entrepreneurs in India. It offers apprenticeship courses led by employees and works to make its operations more environmentally friendly through initiatives like Google Green.
Corporate Social Responsibility, or CSR, has received growing attention in the past decade. We’ll take a look at the roots of the concept, what it involves and some of the benefits which include lowered costs, improved employee satisfaction and a more positive impact on our world. We’ll also briefly discuss how many external vendors, from local energy auditors to FrontStream with our portfolio of tools, can help you accomplish CSR goals.
The document discusses corporate social responsibility (CSR) and provides definitions from various organizations. It outlines models of CSR including the classical economic model, socioeconomic model, Friedman model, Ackerman model, Carroll model, and others. The document discusses the CSR provisions in the Indian Companies Act of 2013, including applicability, requirements for CSR committees and expenditures. It lists eligible CSR activities and provides data on common CSR activities undertaken in India, with education and healthcare being major focuses.
This document outlines four types of corporate social responsibility: environmental, human rights, financial, and political. Environmental responsibility involves reducing a company's carbon footprint and pollution through sustainable practices. Human rights responsibility means ensuring fair treatment of workers and ethical sourcing. Financial responsibility pertains to preventing white collar crime and whistleblowing. Political responsibility concerns whether companies should trade with repressive regimes.
CSR is an increasingly important topic for business students. This revision presentation explains the basic theory behind CSR and outlines the main arguments for and against implementing CSR. Various case studies are also provided together with links to further research.
Challenges Of Corporate Social ResponsibilityElijah Ezendu
Issues in development of workable corporate social responsibility strategy and resolution of awe-inspiring stance for championing effective governance.
The document provides an outline for a lecture on corporate social responsibility (CSR). It discusses the types and nature of social responsibilities, CSR principles and strategies, models of CSR, best practices, the need for CSR, and arguments for and against CSR. Examples of CSR programs and initiatives from companies like Tesco, Vodafone, and HSBC are also summarized. The document aims to educate about the concept of CSR and how companies can integrate social and environmental concerns into their business operations and interactions with stakeholders.
The document provides an overview of topics related to corporate social responsibility (CSR) in India. It discusses the definition of CSR, laws around CSR in India, why CSR is important for businesses, the CSR process including defining strategies and programs, monitoring impact, and reporting. It also provides examples of CSR initiatives undertaken by major Indian companies like Tata Steel, Tata Power, and others. The key points covered include the legal requirements around CSR spending in India, benefits to businesses from CSR, and how leading companies structure and implement their CSR programs.
Corporate Social Responsibility (CSR) refers to a company's initiatives to assess and take responsibility for the company's effects on the environment and impact on social welfare. The key requirements for Indian companies include having a CSR committee and policy, spending at least 2% of the company's average net profits over the past three years on social projects outlined in Schedule VII of the Companies Act 2013, and reporting on CSR activities and expenditures. Companies must report reasons for any failure to meet the 2% spending threshold. Prescribed social activities include eradicating hunger, promoting education, healthcare, gender equality, and environmental sustainability.
Study tip 7 Corporate Social Responsibility by Dipti DhakulDipti Dhakul
COMPANY SECRETARY: COMPANY LAW
Corporate Social Responsibility
The functions of CSR Committee
• To formulate and recommend to the Board, a CSR Policy which would indicate the activities to be undertaken ïn areas or subject, specified in Schedule VII of the Act.
• To recommend the amount of the expenditure to be incurred on the activities undertaken in pursuance of the CSR policy.
• To institute a transparent monitoring mechanism for implementation of the CSR projects or programs or activities undertaken by the company.
• To monitor the CSR policy of the company time to time.
This document discusses corporate social responsibility (CSR). It defines CSR as companies voluntarily contributing to society through business activities and social investments. CSR involves integrating social, environmental and economic goals. The document outlines various models of CSR, including Carroll's model of economic, legal, ethical and philanthropic responsibilities. It discusses the need for CSR to reduce social costs, enhance employee performance and improve public image. The document also lists common CSR activities and responsibilities towards stakeholders like shareholders, employees, and society.
The net profit as per section 198 of the Companies Act, 2013 is calculated as follows:
Profit before Tax 4,000,000
Less: Directors' remuneration (300,000)
Interest on debentures & unsecured loan (100,000)
Bad debts (55,000)
Loss on sale of undertaking (80,000)
Add: Subsidy from government 10,000
Less: Profit on sale of machinery (40,000)
Net gain on fair value changes (80,000)
Net Profit as per Section 198 3,355,000
The document discusses the key aspects of corporate social responsibility (CSR) as outlined in the Companies Act 2013 in India. It defines CSR and explains that companies meeting certain profit, turnover or net worth criteria must spend 2% of their net profits on CSR activities related to issues like poverty, education, healthcare, environment and more. It provides details on CSR committees, eligible CSR activities and programs, spending requirements, and reporting formats. The legal obligations associated with CSR spending and a list of eligible CSR activities are also summarized.
Corporate Social Responsibility-Yashvanth G NayakYashavanth Nayak
This document defines corporate social responsibility and outlines its key types and arguments for and against it. CSR refers to businesses going above legal and profit obligations to benefit society. Types include environmental, community, and employee initiatives. Arguments for CSR are that it protects stakeholders, ensures long-term survival and avoids regulation by addressing social issues. However, critics argue CSR shifts focus from profits, increases costs, and may damage reputation if initiatives do not show quick results.
Article on Corporate Social Responsibility - an insightFCS BHAVIK GALA
This document provides an overview of Corporate Social Responsibility (CSR) in India. It discusses how CSR has evolved from traditional philanthropic activities to become more strategic and linked to business. The Companies Act of 2013 introduced mandatory CSR requirements for large companies in India. It outlines the activities considered eligible for CSR spending under Schedule VII of the Act, such as education, healthcare, environment, and more. The document also discusses the applicability of CSR requirements to companies, constitution of CSR committees, development of CSR policies and programs, and relevant tax benefits.
CSR -Corporate Social Resposibility- Companies Act 2013-SJCTNC.pptxAalbert Albert
This document discusses corporate social responsibility (CSR) requirements for companies in India according to the Companies Act of 2013. It defines CSR as initiatives that benefit society and explains that companies use public resources so CSR allows them to give back. The Companies Act of 2013 made CSR mandatory for companies meeting certain profit, revenue or size thresholds and requires 2% of average net profits over 3 years to be spent on CSR. Eligible companies must form a CSR committee and spend on activities listed in Schedule VII of the Act such as poverty alleviation, education, and healthcare. Non-permitted activities and penalties for non-compliance are also outlined.
India became the first country to mandate spend on CSR activities through a statutory provision after the President of India gave assent to the Companies Bill, 2013,.
The Provision of Corporate Social Responsibility (CSR) are effective from financial year 2014-15.
As per Section 135 of the Act, every company with a specified net worth or turnover or net profit are required to mandatorily spend 2 percent of its average net profit towards specified CSR activities.
Though many corporate houses in India have been doing CSR activities voluntarily, the new CSR provisions put formal and greater responsibility on companies to set out clear framework and process to ensure strict compliance.
The Board of Directors of the companies are responsible to ensure that the company spends the mandatory CSR spend on specified CSR activities in accordance with the CSR policy of the company and disclose the CSR policy and CSR activities of the company as specified in the provisions.
Each qualifying company should form a CSR committee which will formulate the CSR policy of the company and effectively monitor the CSR activities of the company.
The Ministry of Corporate Affairs (MCA) has issued draft rules on CSR for public discussion. The said draft CSR rules lay down the framework and guidance on the manner in which every eligible company is expected to undertake CSR initiatives.
The document discusses the concepts of corporate social responsibility and sustainable development. It provides definitions of CSR, outlines why businesses have a social responsibility, and describes models for implementing CSR. Key points include that CSR involves businesses balancing economic, legal, ethical and environmental responsibilities and pursuing policies that are desirable for society. The document also discusses laws in India mandating CSR for large companies and gives examples of CSR activities businesses undertake. It defines sustainable development and the UN's 17 sustainable development goals. The triple bottom line approach and 3 P's of CSR - profit, people, planet - are also summarized.
The document summarizes the key provisions around corporate social responsibility (CSR) in the Companies Act of 2013 in India. It outlines that companies meeting certain profit or turnover thresholds will need to constitute a CSR committee and spend at least 2% of their average net profits on qualifying social projects. It also analyzes some ambiguities and issues around political contributions qualifying as CSR, tax benefits for CSR spending, and potential loopholes like profit shifting to avoid the requirements. In conclusion, it argues that CSR should no longer be seen as just philanthropy but as a real responsibility of companies.
Corporate Social Responsibility (CSR) refers to companies integrating social and environmental concerns into their business operations and interactions with stakeholders. CSR goes beyond philanthropy and compliance to operating in a way that contributes to sustainable development. The document outlines the meaning and reasons for CSR, models of CSR, principles and strategies for CSR implementation, and the regulatory framework for CSR in India, including requirements for Indian companies to constitute a CSR committee and spend at least 2% of net profits on CSR activities.
Corporate Social Responsibility (CSR) refers to companies integrating social and environmental concerns in their business operations and interactions with stakeholders. The document outlines the key aspects of CSR as per the Companies Act 2013 in India, including:
- Companies meeting certain criteria must constitute a CSR committee and allocate at least 2% of their net profits in the previous 3 years to CSR activities.
- Eligible CSR activities include eradicating hunger, promoting education, gender equality, and environmental sustainability.
- Companies must develop a CSR policy and reporting mechanism. Non-compliance can attract fines up to 25 lakh rupees for the company and imprisonment of 3 years for responsible officers.
The document discusses corporate social responsibility (CSR) in India as mandated by the Companies Act 2013. Some key points:
- CSR refers to companies integrating social and environmental concerns into their business operations and interactions with stakeholders. It goes beyond charity to encompass how a company conducts business.
- The Companies Act requires companies meeting certain criteria to constitute a CSR committee and spend at least 2% of average net profits of the past three years on eligible CSR activities.
- Eligible activities include eradicating hunger, promoting education, gender equality, environmental sustainability etc. as specified in a schedule of the Act.
- Companies must formulate a CSR policy and reporting mechanisms to monitor spending and activities. Non
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.
Corporate Social Responsibility Details and ChallengesArunesh Kumar
John Elkington coined the term "Triple Bottom Line" in 1994, which refers to a business being responsible for profit, protecting the planet, and serving people's interests. Milton Friedman argued that a business's only social responsibility is to increase profits within legal bounds. The 2013 CSR Bill in India mandates that large companies spend 2% of their average net profits on social and environmental activities listed in Schedule VII, such as eradicating hunger and poverty, promoting education, healthcare, and environmental sustainability. While companies and activists have mixed views, proper implementation faces challenges such as unequal regional development and ensuring funds are properly spent and monitored.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
South Dakota State University degree offer diploma Transcriptynfqplhm
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The Universal Account Number (UAN) by EPFO centralizes multiple PF accounts, simplifying management for Indian employees. It streamlines PF transfers, withdrawals, and KYC updates, providing transparency and reducing employer dependency. Despite challenges like digital literacy and internet access, UAN is vital for financial empowerment and efficient provident fund management in today's digital age.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
6. Structure
1.
Dimensions of CSR2.
Historical perspective of CSR3.
Arguments for and Against CSR4.
Myths surrounding CSR5.
Benefits of CSR6.
CSR Management7.
CSR Implementation Framework8.
CSR under Companies Act 20139.
What is CSR
7. What is CSR
“Corporate Social Responsibility is a concept whereby
companies integrate social and environmental concerns in
their business operations and in their interactions with their
stakeholders on a voluntary basis”
Source:European Commission
“Corporate Social Responsibility is the continuing
commitment by business to behave ethically and contribute
to economic development while improving the quality of life
of the workforce and their families as well as of the local
community and society at large”
Source:World Business Council for Sustainable Development
8. What is CSR
FreidmanVersus Russell
Milton Friedman indicated that the one and only one social
responsibility of a business is to use its resources and engage
in activities designed to increase its profits, as long as it stays
with the rules of the game, which is to say, engages in open
and free competition without deception or fraud.
Kirk Russell insisted that every right is married to a duty,
every freedom owns a corresponding responsibility. Hence,
there cannot be genuine freedom unless there exists also
genuine order in the moral realm and in the social realm.
9. What is CSR
CSR is about buildingTrust
• Trust in the brand
• Trust in performance of the product
• Trust in the company to “do the right thing”
• Trust in you as an employer
10. Dimensions of CSR
• Internal Dimension: This focuses on
organisational practices with respect to
internal stakeholders that should be aligned to
corporate social responsibility standards.
• External Dimension: This focuses on an
organisations practices towards external
stakeholders which should be in accordance
with international standards of business
practices.
13. From the 1950’s to the present the concept of CSR has
gained considerable acceptance and the meaning has been
broadened to include additional components:
• Economic model – the invisible hand of the
marketplace protected societal interest
• Legal model – laws protected societal interests
• Modified the economic model
–Philanthropy
–Community obligations
–Paternalism
Historical Perspective of CSR
14. CSR encompasses the economic, legal, ethical and
discretionary (philanthropic) expectations that society
has of organizations at a given point in time
Responsibility Societal
Expectation
Examples
Economical Required
Be profitable. Maximize sales, minimize
costs, etc.
Legal Required Obey laws and regulations
Ethical Expected Do what is right, fair and just
Discretionary
(Philanthropic)
Desired /
Expected
Be a good corporate citizen
Historical Perspective of CSR
16. Business Responsibilities in the 21st Century
• Demonstrate a commitment to society’s values and
contribute to society’s social, environmental, and
economic goals through action.
• Insulate society from the negative impacts of company
operations, products and services.
• Share benefits of company activities with key
stakeholders as well as with shareholders.
• Demonstrate that the company can make more money
by doing the right thing.
Historical Perspective of CSR
17. Argument for and Against CSR
• Addresses social issues business caused and allows
business to be part of the solution
• Protects business self-interest
• Limits future government intervention
• Addresses issues by using business resources and
expertise
• Addresses issues by being proactive
Arguments For
18. Argument for and Against CSR
• Restricts the free market goal of profit maximization
• Business is not equipped to handle social activities
• Dilutes the primary aim of business
• Increase business power
• Limits the ability to compete in a global marketplace
Arguments Against
19. Myths surrounding CSR
CSR is not for small businesses
It is too complicated and technical
It is too expensive
It is a market gimmick
It is a separate corporate initiative
CSR
20. Benefits of CSR
Benefits
of CSR
Winning new
businesses
Attracting,
Retainingand
Maintainingahappy
workforce
Access to funding
opportunities
21. Plan
• Consult stakeholders
• Establish code of conduct
• Set targets
Do
• Establish management
systems and personnel
• Promote code compliance
Check
• Measure progress
• Audit
• Report
Act
• Corrective action
• Reform of systems
CSR Management: Plan, Do, Check, Act
method
24. Introduction
Corporate Social Responsibility is a new mandate introduced
by the Companies Act, 2013 and is aimed at ensuring that
corporate houses return some benefit to the society from
which they draw all their resources. It is aimed at maintaining
equilibrium between the corporate sector and the society in
general for the mutual development of both.
Provisions regarding Corporate Social Responsibility (CSR)
are contained in Section 135 of the Companies Act, 2013 read
with the Companies (Corporate Social Responsibility Policy)
Rules, 2014. This Section and the Rules have been notified
vide MCA circular dated 27.02.2014 to become applicable
from 01.04.2014
25. Meaning of CSR
Corporate Social Responsibility (CSR) means and includes
but not limited to:
i. Projects or programs relating to activities specified in
ScheduleVII to the Act; or
ii. Projects or programs relating to activities undertaken
by the Board of Directors of a Company (Board) in
pursuance of recommendations of the CSR committee
of the Board as per declared CSR policy of the
company subject to the condition that such policy will
cover subjects enumerated in ScheduleVII of the Act
26. Applicability of CSR
Every company including its Holding or Subsidiary
company and a Foreign company having branch or project
office in India which has in any of the three preceding
financial years:
NetWorth of Rs.
500 Crores of
More
Turnover of Rs.
1000 Crores of
More
Net Profit of Rs.
5 Crores of MoreOr Or
Every company which ceases to be covered by the above
criteria for 3 consecutive financial years shall not be
required to comply with the CSR provisions till such time
it again falls within the above threshold limits
27. • Add Share Capital
• Add Reserves created out of Profit and Securities Premium Account
• Subtract Accumulated Losses
• Subtract Deferred Expenditure
• Subtract Miscellaneous Expenditure not written off
• Reserves created out of Revaluation of Assets, write-back of
depreciation and amalgamation should not be included
All figures to be as per the Audited Balance Sheet
Calculation of Net Worth
Example: A company was incorporated ten years ago with a paid-up capital of Rs.
Two Lakhs. The company bought 50 acres of urban land at Rs. 3000 per acre. The
company did nothing else in the past fifty years. The land is valued now at about
Rs. 20 Crores per acre. The company has done revaluation of the land in its
balance sheet. For CSR purposes, the net worth of the company is about Rs. 1.5
Lakhs (2 Lakhs minus losses till date) and not Rs. 1000 Crores.
28. • Include realization from sale, supply or distribution
of goods
• Include realization on account of services
rendered
• Other income may not need to be included
• To be calculated for a financial year
Calculation of Turnover
29. "Net profit" means the net profit of a company as per its
financial statement prepared in accordance with the applicable
provisions of theAct, but shall not include the following, namely:
i. any profit arising from any overseas branch or branches of
the company, whether operated as a separate company or
otherwise; and
ii. Any dividend received from other companies in India, which
are covered under and complying with provisions of Section
135 of theAct
Average net profit shall be calculated in accordance with
provision of Section 198
Net Profit for the purpose of CSR
30. Section 198
1) In computing the net profits of a company in
any financial year for the purpose of section
197,—
a) credit shall be given for the sums specified in
sub-section (2), and credit shall not be given
for those specified in sub-section (3); and
b) the sums specified in sub-section (4) shall be
deducted, and those specified in sub-section
(5) shall not be deducted.
Calculation of Net Profit
31. Section 198 {Subsection (2)}
Subsection (2) : In making the computation
aforesaid, credit shall be given for the:
bounties and subsidies received from any
Government, or any public authority
constituted or authorised in this behalf, by any
Government, unless and except in so far as the
Central Government otherwise directs.
Calculation of Net Profit
32. Section 198 {Subsection (3)}
Subsection (3) : In making the computation aforesaid, credit shall
not be given for the following sums:
a) profits, by way of premium on shares or debentures of the
company, which are issued or sold by the company;
b) profits on sales by the company of forfeited shares;
c) profits of a capital nature including profits from the sale of
the undertaking or any of the undertakings of the company
or of any part thereof;
d) profits from the sale of any immovable property or fixed
assets of a capital nature comprised in the undertaking or
any of the undertakings of the company, unless the business
of the company consists, whether wholly or partly, of buying
and selling any such property or assets:
Calculation of Net Profit
33. Section 198 {Subsection (3)}
Provided that where the amount for which any fixed
asset is sold exceeds the written-down value thereof,
credit shall be given for so much of the excess as is
not higher than the difference between the original
cost of that fixed asset and its written down value;
e) any change in carrying amount of an asset or of a
liability recognised in equity reserves including surplus
in profit and loss account on measurement of the asset
or the liability at fair value.
Calculation of Net Profit
34. Section 198 {Subsection (4)}
Subsection (4) : In making the computation aforesaid, the
following sums shall be deducted:
a) all the usual working charges ;
b) director‘s remuneration ;
c) bonus or commission paid or payable to any member of the
company’s staff, or to any engineer, technician or person
employed or engaged by the company, whether on a whole-
time or on a part-time basis;
d) any tax notified by the Central Government as being in the
nature of a tax on excess or abnormal profits;
e) any tax on business profits imposed for special reasons or in
special circumstances and notified by the Central
Government in this behalf;
Calculation of Net Profit
35. Section 198 {Subsection (4)}
f) interest on debentures issued by the company;
g) interest on mortgages executed by the company and on loans
and advances secured by a charge on its fixed or floating
assets;
h) interest on unsecured loans and advances;
i) expenses on repairs, whether to immovable or to movable
property, provided the repairs are not of a capital nature;
j) outgoings inclusive of contributions made under section 181;
k) depreciation to the extent specified in section 123;
l) any compensation or damages to be paid in virtue of any legal
liability including a liability arising from a breach of contract;
Calculation of Net Profit
36. Section 198 {Subsection (4)}
m) the excess of expenditure over income, which had arisen
in computing the net profits in accordance with this
section in any year which begins at or after the
commencement of this Act, in so far as such excess has
not been deducted in any subsequent year preceding the
year in respect of which the net profits have to be
ascertained;
n) any sum paid by way of insurance against the risk of
meeting any liability such as is referred to in clause (l);
o) debts considered bad and written off or adjusted during
the year of account.
Calculation of Net Profit
37. Section 198 {Subsection (5)}
Subsection (5) : In making the computation aforesaid, the following sums
shall not be deducted:
a) income-tax and super-tax payable by the company under the Income-
tax Act, 1961, or any other tax on the income of the company not
falling under clauses (d) and (e) of sub-section (4);
b) any compensation, damages or payments made voluntarily, that is to
say, otherwise than in virtue of a liability such as is referred to in
clause (l) of sub-section (4);
c) loss of a capital nature including loss on sale of the undertaking or any
of the undertakings of the company or of any part thereof not
including any excess of the written-down value of any asset which is
sold, discarded, demolished or destroyed over its sale proceeds or its
scrap value; any change in carrying amount of an asset or of a liability
recognised in equity reserves including surplus in profit and loss
account on measurement of the asset or the liability at fair value.
Calculation of Net Profit
38. Calculation of Net Profit
Particulars* Amount
Profits as per Profit & LossAccount XXX
Credit to be provided for
Bounties and subsidies received from Government
Credit not to be provided for
Premium/ Profit on sale of shares
Profits of Capital Nature – including profits on sale of undertakings
Profits from sale of immovable property/ fixed assets – unless undertaken
Permissible Deductions:
UsualWorking Charges- revenue expenditures, bonus or commission
Abnormal or SpecialTax
Interest on debentures, loans or advances
Compensations/ damages in virtue of legal liability, bad debts written off…
(XXX)
(XXX)
(XXX)
(XXX)
Non Permissible Deductions:
Income tax paid under IncomeTax Act, 1961
Loss of Capital Nature
Compensations/ Damages paid voluntarily
(XXX)
(XXX)
(XXX)
Profits as per Section 198 XXX
* Illustrative list only
39. i. To constitute a CSR committee of the Board
ii. To approve the CSR policy framed by the CSR
committee after considering recommendations of the
Committee
iii. To ensure that activities included by a company in its
Corporate Social Responsibility Policy are related to
the activities included in ScheduleVII of the Act
iv. To ensure that at least 2% of the Average Net profits of
three immediately preceding financial year is spent
every financial year in pursuance of CSR policy.
Responsibility of the Company and Board
of Directors
40. v. To disclose CSR policy and initiatives in Board’s
Report and Company’s website.
vi. To ensure that activities reflected in CSR policy are
actually undertaken by the company.
vii. To include in the Board’s report, annual report on
CSR in the manner prescribed in the Rules.
viii.If the company doesn’t spend 2% of the net profits as
required, then Board has to report the reason for it in
Board’s report.
Responsibility of the Company and Board
of Directors
41. CSR Committee should consist of at least 3 directors out of which at least 1
director should be independent director
Explanations:
i. an unlisted public company or a private company covered under
subsection (1) of section 135 which is not required to appoint an
independent director pursuant to sub-section (4) of section 149 of the
Act, shall have its CSR Committee without such director.
ii. a private company having only two directors on its Board shall
constitute its CSR Committee with two such directors;
iii. with respect to a foreign company covered under CSR rules, the CSR
Committee shall comprise of at least two persons of which one person
shall be as specified under Section 380 (1) (d) of the Act and another
person shall be nominated by the foreign company.
iv. Board’s Report to disclose composition of CSR Committee.
Composition & Function of CSR Committee
42. CSR Committee Meeting:
• Law is silent w.r.t. number of CSR Committee meetings in a year.
So it is dependent on the requirement of the Company. However
there is no restriction if CSR Committee meeting conduct
business by circulation.
• For CSR Committee Quorum Law is silent again. It is
recommended to apply same quorum provisions as are applicable
to board meetings under section 174 of the Companies Act, 2013.
• No time limit prescribed for constitution of CSR Committee.
However keeping in view the fact that CSR Section and rules
become effective w.e.f. April 01, 2014, it is advisable to do it in
the first board meeting after April 01, 2014.
Composition & Function of CSR Committee
43. Functions of CSR Committee:
• Formulate & recommend to the Board, a Corporate Social
Responsibility Policy which shall indicate the activities to be
undertaken by company as specified in ScheduleVII of the Act.
• Recommend the amount of expenditure to be incurred on the
activities referred to in clause (a); and
• Monitor the Corporate Social Responsibility Policy of the
company from time to time.
• Prepare a transparent monitoring mechanism for ensuring
implementation of the projects / programmes / activities
proposed to be undertaken by the company.
Composition & Function of CSR Committee
44. 'CSR Policy" relates to the activities to be undertaken by
the company as specified in Schedule VII to the Act and
the expenditure thereon, excluding activities undertaken
in pursuance of normal course of business of a company.
The CSR Policy of the company shall, inter-alia, include
the following, namely:-
• a list of CSR projects or programs which a company
plans to undertake falling within the purview of the
Schedule VII of the Act, specifying modalities of
execution of such project or programs and
CSR Policy and Expenditure
45. • The CSR Policy of the company shall specify that the
surplus arising out of the CSR projects or programs or
activities shall not form part of the business profit of a
company.
• CSR expenditure shall include all expenditure
including contribution to corpus, or on projects or
programs relating to CSR activities approved by the
Board on the recommendation of its CSR Committee,
but does not include any expenditure on an item not in
conformity or not in line with activities which fall
within the purview of ScheduleVII of theAct.
CSR Policy and Expenditure
46. The Board of a company may decide to undertake its CSR activities
approved by the CSR Committee, through a registered trust or a
registered society or a company established by the company or its
holding or subsidiary or associate company under section 8 of the
Act or otherwise, provided that –
i. if such trust, society or company is not established by the
company or its holding or subsidiary or associate company, it
shall have an established track record of three years in
undertaking similar programs or projects;
ii. the company has specified the project or programs to be
undertaken through these entities, the modalities of utilization
of funds on such projects and programs and the monitoring and
reporting mechanism.
CSR Policy and Expenditure
47. • A company may also collaborate with other companies for
undertaking projects or programs or CSR activities in such a
manner that the CSR Committees of respective companies are
in a position to report separately on such projects or programs
in accordance with these rules.
• Only such CSR activities will be taken into consideration as are
undertaken within India.
• Only activities which are not exclusively for the benefit of
employees of the company and their family members shall be
considered as CSR activity.
• Company shall give preference to the local area and areas
around it where it operates, for spending the amount
CSR Policy and Expenditure
48. • A company may also collaborate with other companies for
undertaking projects or programs or CSR activities in such a
manner that the CSR Committees of respective companies are
in a position to report separately on such projects or programs
in accordance with these rules.
• Only such CSR activities will be taken into consideration as are
undertaken within India.
• Only activities which are not exclusively for the benefit of
employees of the company and their family members shall be
considered as CSR activity.
• Company shall give preference to the local area and areas
around it where it operates, for spending the amount
earmarked for Corporate Social Responsibility activities.
CSR Policy and Expenditure
49. • Companies may build CSR capacities of their own
personnel as well as those of their Implementing agencies
through Institutions with established track records of at
least three financial years but such expenditure shall not
exceed 5% of total CSR expenditure of the company in
one financial year.
• Contribution of any amount directly or indirectly to any
political party under section 182 of the Act, shall not be
considered as CSR activity.
• In case of a foreign company, the balance sheet filed under
sub-clause (b) of sub-section (1) of section 381 shall
contain an Annexure regarding report on CSR.
CSR Policy and Expenditure
50. Prescribed CSR Activities
Activities which may be included by companies in their CSR
Policies (Amended ScheduleVII)
i. Eradicating hunger and poverty and malnutrition, promoting
preventive healthcare and sanitation and making available safe
drinking water;
ii. Promoting education including special education and employment
enhancing vocational skills especially among children, women,
elderly, and the differently abled and livelihood enhancement
projects;
iii. 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 backward
groups.
51. Prescribed CSR Activities
iv. 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;
v. Protection of natural heritage, art and culture including
restoration of buildings and sites of historical importance and
works of art, setting up public libraries, promotion and
development of traditional arts and handicrafts
vi. Measures for the benefits of armed forces veterans, war
widows and their dependents
vii. Training to promote rural sports, nationally recognised
sports, para-olympic sports and Olympic sports;
52. Prescribed CSR Activities
viii.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; and
ix. Contributions or funds provided to technology
incubators located within academic institutions which
are approved by the Central Government.
x. Rural development projects.
xi. Slum area development.
53. CSR Reporting
Disclosures to be made in Board’s Report:
The Board’s report of the company covered under these rules
pertaining to a financial year commencing on or after the 1st day
of April, 2014 shall include an Annual Report on CSR containing
particulars as specified below:
• Composition of CSR committee
• CSR policy and Initiatives
• If the stated CSR expenditure is not made by the company, then
the reason for the same has to be disclosed
• In the case of foreign company, the Balance sheet filed under
section 381(1)(b) shall contain an Annexure regarding report
on CSR
54. Following disclosures to be made in Board’s Report:
1. Brief outline of the Company’s CSR policy, including overview
of projects or programs proposed to be undertaken and a
reference to the web-link to the CSR Policy and projects or
programs
2. The composition of CSR committee
3. Average net profit of the company for last three financial years
4. Prescribed CSR expenditure (2% of the amount as in Sl. No. 3)
5. Details of CSR spent during the financial year
1. Total amount to be spent for the financial year
2. Amount unspent, if any
3. Manner in which the amount spent during the financial year as per
template on next slide
Format of CSR Annual Reporting
55. Format of CSR Annual Reporting
(1) (2) (3) (4) (5) (6) (7) (8)
S.
No.
CSR
project
or
Activity
identifie
d
Sector in
which the
project is
covered
Projects or
Programs
1. Local area or
other
2. Specify the State
and District where
projects or
programs were
undertaken
Amount
outlay
(Budget)
– Project
wise /
Program
wise
Amount
spent on the
projects or
Programs
sub-heads
1. Direct
expenditure
on projects or
programs
Cumula
tive
expendi
ture up
to the
Reporti
ng date
Amount
spent –
whether
direct or
through
implemen
ting
agency *
1
2
3
4
Total
* Details of ImplementingAgency
56. Following disclosures to be made in Board’s Report:
6. In case the company has failed to spend the Prescribed CSR
expenditure (i.e. 2% of average net profit of last three financial
years), the company shall provide the reasons for not spending
the amount in its Directors Report
7. A responsibility statement of the CSR Committee that the
implementation and monitoring of CSR policy is in accordance
and compliance with CSR objectives and Policy of the company.
Format of CSR Annual Reporting
Sd/-
Chief Executive Officer or
Managing Director or
Manager
Sd/-
Chairman CSR Committee
Sd/-
Person specified under
Section 380(1)(d) of the Act
(Wherever applicable)
57. 1. Any Financial Year: This circular has clarified that “Any
Financial Year” referred under sub section (1) of Section 135
of the Act read with Rule 3(2) of Companies CSR Rule, 2014,
implies‘any of the three financial years prior to FY2014-15’.
2. Liberal interpretation’ means a wider range of
activities can now be taken up: The circular mentions
that companies developing programs as part of their CSR
efforts can interpret Schedule VII of the Companies Act 2013
liberally; while some activities being undertaken or currently
being planned may not exactly match with the wording of
Schedule VII, these could be taken up if they capture the
essence of the subjects mentioned.
Clarifications issued by MCA vide General
Circular 21 of 2014 Dated 18th June 14
58. MCA has explicitly mentioned that:
• Programs around road safety, creating consumer awareness,
support to technology incubators not located within academic
institutions (provided they are approved by the Department of Science
&Technology) can be considered as CSR programs
• Awareness programs such as financial literacy will be included as CSR
activities. For the safety awareness program that the MCA has illustrated,
expenditure on awareness building through print and AV electronic media
is included
• Expenses on research and studies on all areas covered under Schedule
VII will also be included as CSR expenditure
• Rural development has been defined as ‘any project meant for
development of rural India’. Hence, a wide range of projects could be
classified under this category.
Clarifications issued by MCA vide General
Circular 21 of 2014 Dated 18th June 14
59. Additional details, including cases where expenditure will not be
permitted to be accounted for as CSR spend, are provided in this
Circular by the Ministry of Corporate Affairs, Government of
India. Some notable exclusions are:
• Sustainable urban development and urban transport systems
• Capacity development of government officials and elected
representatives
• Professional exchange programs between countries
• Any development expenditure mandated by state/local
government regulations
Clarifications issued by MCA vide General
Circular 21 of 2014 Dated 18th June 14
60. 3. One-off events will not be considered as CSR activities: The
circular states that CSR activities have to be in the nature of
projects/programs rather than one-off events such as marathons, awards,
charitable contributions and advertisements and sponsorships given to
TV programs. Such events shall not qualify as CSR expenditure
4. CSR employees’ salaries and monetary value of employee
volunteering can be considered as CSR spend: The circular
mentions that the CSR expenditure will include the CSR employees’
salaries. Also, recognition of the monetary value of employee
volunteering as CSR expenditure is a welcome step for companies which
have a huge and/or high cost employee base and especially those that
have no identifiable local community as stakeholders (IT companies,
investment banks etc). This expenditure will be calculated in proportion
to employees’ time/ hours spent specifically on CSR activities
Clarifications issued by MCA vide General
Circular 21 of 2014 Dated 18th June 14
61. 5. A foreign holding company’s spend on CSR activities in
India can be counted as CSR spending of their Indian
subsidiary: This will be valid only if the CSR expenditure is
routed through the Indian subsidiary. This will be beneficial for
many Indian subsidiaries of foreign companies that are required to
undertake CSR expenditure according to the Act, since some large
global companies also directly fund social development programs
in India.
6. Corpus expenditure can be included as CSR
expenditure: The circular states that contribution to corpus of a
trust/society/section 8 company will qualify as CSR expenditure,
as long as it is created exclusively for a purpose that is directly
relatable to a cause covered in ScheduleVII of the Act.
Clarifications issued by MCA vide General
Circular 21 of 2014 Dated 18th June 14
62. 7. Registered Trust: Registered Trust as referred in Rule 4(2)
of Companies CSR Rule, 2014 would include Trusts
registered under Income Tax Act 1956, for those states where
registration of trust is not mandatory.
8. Expense incurred for fulfillment of any Act / Statute:
Expenses incurred by the company for the purpose of
fulfillment of any requirement of any Act or Statute of
Regulations such as Labour Laws, Land acquisition etc. would
not be counted as CSR expenditure under the Companies Act
Clarifications issued by MCA vide General
Circular 21 of 2014 Dated 18th June 14
64. Finance Bill, 2014 proposed that CSR expenditure shall not be
allowed as expenditure under section 37.
However, any CSR expenditure which is allowed as deduction
under other sections such as section 35 is permissible.
The Finance Bill, 2014 insert a new Explanation in sub-section (1)
of section 37 so as to clarify that any expenditure incurred by an
assessee on the activities relating to corporate social responsibility
referred to in section 135 of the Companies Act, 2013 shall not be
deemed to be an expenditure incurred by the assessee for the
purposes of the business or profession. This amendment will take
effect from 1st April, 2015 and will, accordingly, apply in relation
to the assessment year 2015-16 and subsequent years.
Tax implications
65. Amendments in Finance Bill, 2014 are as below:
"Explanation 2.—For the removal of doubts, it is hereby declared that for the
purposes of sub-section (1), any expenditure incurred by an assessee on the
activities relating to corporate social responsibility referred to in section 135 of
the Companies Act, 2013 shall not be deemed to be an expenditure incurred
by the assessee for the purposes of the business or profession.".
Implications:
A corporate can implement a CSR program by contributing to the various
development program. It can also comply with CSR provision by contributing
to funds like National Defence Funds or other funds where 100% tax
exemptions are available. After the proposed amendments the companies
would be motivated to spent CSR money only on those areas where tax
exemptions are available. In other words all other areas will virtually become
redundant. There is a strong need to revisit this provision and the companies
should be allowed to deduct CSR expenses under Section 37.
Tax implications
66. CSR laws permit expenditure on capacity building of employees &
on local area development. Such expenditures, could earlier be
directly claimed as CSR expenditures under section 37(1) of the
Income Tax Act. However, with the proposed amendments any
expenditure under CSR will not be allowed as deduction under
section 37.
There were many case laws where it was held that such expenditures
should be treated as admissible expenditure. Now all such judicial
precedence will be nullified from a CSR prospective. For instance a
company can claim expenditure towards local area development as
CSR expenditure. Now with the proposed amendments the
company will be motivated to claim such expenditure as normal
business expenditures and not CSR expenditures.
Tax implications
67. Case Laws which have become null now:
Afforestation expenses: In the case Orissa Forest Development Corp.
Ltd. v. Jt. CIT [2002] 80 ITD 300 (Cuttack), it was held that expenses
incurred by the corporation in plantation of new trees was a revenue
expenditure, even though there was no statutory obligation on the part
of the assessee to incur such an expenditure.
Donation can also be claimed under section 37(1): If the
contribution made by an assessee is in the form of donations of the
category specified under section 80G, but it could also be termed as an
expenditure of the category falling under section 37(1), then the right
of the assessee to claim the whole of it as allowance under section
37(1) cannot be denied - Mysore Kirloskar Ltd. v. CIT [1987] 166 ITR
836/30 taxman 467 (Kar.).
Tax implications
68. Case Laws which have become null now:
Drinking water facilities to local residents: In the case CIT v.
Madras Refineries Ltd. [2004], 266 ITR 170/138 Taxman 261 (Mad.) it was
held that development of local and establishing drinking water facility for
local area people was a valid expenditure. It was observed that the monies
spent for bringing drinking water, as also for establishing or improving the
schools meant for the residents of the locality in which the business is
situated cannot be regarded as actually outside the ambit of the business
concerns of the assessee, especially when the undertaking owned by the
assessee is one which is to some extent a polluting industry. Hence,
expenditure incurred by the assessee for establishing drinking water
facilities for the residents in the vicinity of its refinery and for providing
aid to the schools run for the benefit of the children of those residents was
allowable as deduction.
Tax implications
69. Case Laws which have become null now:
Admissibility of donation if proved as relatable to carrying on
of business : In the case CIT v. Industrial Development Corp of Orissa Ltd.
[2001] 249 ITR 401/115 Taxman 626 (Orissa) the Hon'ble Odisha High
Court held that even donation can be treated as business expenditures,
provided such donation can be related with the business of the assessee. In
this case the donation was disallowed as there was nothing on record to
establish that the donation made by the assessee to the Chief Minister's
Relief Fund was directly connected with and related to the carrying on of
the assessee's business. However, this case provides a landmark ratio of
allowing donation as business expenditure. In the case of mining
Companies as the funds are specifically for the local area development
under CSR, there is no reason why such expenditures should not be
allowed under section 37(1).
Tax implications
70. Concluding Remarks:
Overall the proposed Finance Bill, 2014 has created a fix with regard to
the admissibility of the CSR expenditures. It is the job of the
government to align various legislations. The Companies Act mandates
various types of CSR expenditures. As discussed above, giving grant to
Prime Minister Relief Fund, National Defence Fund is a CSR
expenditure at the same time there is a list of priority activities, which
the companies should do under CSR, however, differential tax treatment
of the legally permissible CSR expenditure will defeat the very purpose
of enacting CSR. Why should a company incur CSR expenditure on
priority areas without having any tax benefit, when it can incur the same
expenditure with 100% tax deductions. The Government should provide
a level playing ground for all kind of CSR expenditure.
Tax implications