This document discusses corporate social responsibility (CSR) in India. It defines CSR as corporations fulfilling their duty to care for society. It notes that the 2011 Companies Bill mandates that companies spend at least 2% of their average profits over the previous three years on CSR initiatives like eradicating hunger, promoting education, gender equality, and environmental sustainability. Only a few large companies like Tata Steel and ITC currently meet the 2% threshold. The document outlines pros of CSR like increased societal development and brand reputation, and cons like reduced profits and added burden on companies. It recommends making CSR mandatory while allowing tax deductions, and choosing between executive compensation and CSR spending.

1. CSR
(Corporate Social Responsibility)
“CSR is a concept which suggests that commercial corporations must
fulfill their duty of providing care to the society”

2. CSR Today

In 2011, Indian philanthropic donations were estimated at around $5-6
billion, or between 0.3 and 0.4 per cent of gross domestic product (GDP)

Four Indians are in Asian Heroes of Philanthropy

Thirty eight companies of the Nifty companies mentioned CSR initiatives.

Only two companies in the Nifty – Ambuja Cement and ITC which
currently spend 2% of net profit towards CSR.

Tata Steel‟s spend 4% of their net profit towards CSR.

Mahindra spend Rs 72 core, Vedanta Rs230 Crore on CSR

3. As per Companies Bill, 2011
Companies Bill of 2011 mandates that Companies spend at
least 2% of their average profits over the previous three years
to corporate social responsibility initiatives.

4. Scope Of CSR
These initiatives can include
1.
Eradicating hunger and poverty
2.
Promotion of education
3.
Promoting gender equality and empowering women
4.
Reducing child mortality
5.
Combating the human immunodeficiency Virus, AIDS, Malaria and other diseases
6.
Ensuring environmental sustainability
7.
Employment enhancing vocational skills
8.
Social business projects

5. Do all Companies have to do CSR?
Company having a net worth of Rs.500 crore or turnover of Rs.1000 crore or net profit of Rs5
crore has to constitute a “CSR Committee”
Duties of the Committee
• Formulate policy
• Recommend the quantum of expenditure

6. Where these CSR Initiatives have to be
mentioned?
The Bill has proposed that the disclosure of the financial statements
contain “the details about the policy developed and implemented by the
company on corporate social responsibility initiatives taken during the
year”

7. PROS
CONS
 Increase societal development

Reduced Company profits
 Enhanced Brand Image and
Reputation

Adding 1 more committee will increase burden
on companies

Government trying to „outsource‟ its
responsibility towards company

Shareholders getting less benefits

Manipulation of accounts

Become free by giving penalty
 Change from profitability to wealth
creation & sustainable development
 Increased ability to attract and retain
employees.
 Increase in Education institution
 Inception would lead to an inflow of
approx. Rs.8000 crore

8. Recommendations
 Should be mandatory
 Tax deduction should be
allowed
 Either EC or CSR

9. Thank You
By
Shivans Gupta