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.
India's ancient wisdom, which is still relevant today, inspires people to work for the larger objective of the well-being of all stakeholders. For example, our Rushees, Munees and Saints preached us to serve the society. The idea of CSR first came up in 1953 when it became an academic topic in HR Bowen’s “Social Responsibilities of the Business”. Since then, there has been continuous debate on the concept and its implementation. Although the idea has been around for more than half a century, there is still no clear consensus over its definition. Post 1991, there is increasingly a receding role of the state in the economic and social sphere. An increasing acceptance of CSR by large number of corporate, post liberalization can thus be seen in the context of the larger role being consciously carved for the private sector in an economy which was earlier largely controlled and managed by the State. The corporate world is keen to exploit the opportunities that are being provided by the new economic outlook of the State. Today, 93% of the world’s largest 250 companies now publish annual corporate responsibility reports, almost 60% of which are independently audited.
This brief ppt is based on the provisions of sec 135 of Indian companies act 2013 as applicable towards CSR Corporate Social Responsibility on Companies in India.
India's ancient wisdom, which is still relevant today, inspires people to work for the larger objective of the well-being of all stakeholders. For example, our Rushees, Munees and Saints preached us to serve the society. The idea of CSR first came up in 1953 when it became an academic topic in HR Bowen’s “Social Responsibilities of the Business”. Since then, there has been continuous debate on the concept and its implementation. Although the idea has been around for more than half a century, there is still no clear consensus over its definition. Post 1991, there is increasingly a receding role of the state in the economic and social sphere. An increasing acceptance of CSR by large number of corporate, post liberalization can thus be seen in the context of the larger role being consciously carved for the private sector in an economy which was earlier largely controlled and managed by the State. The corporate world is keen to exploit the opportunities that are being provided by the new economic outlook of the State. Today, 93% of the world’s largest 250 companies now publish annual corporate responsibility reports, almost 60% of which are independently audited.
This brief ppt is based on the provisions of sec 135 of Indian companies act 2013 as applicable towards CSR Corporate Social Responsibility on Companies in India.
Dear Seniors & Friends,
Sharing the updated PPT on "Provident Fund & MP Act 1952" of India. Kindly have a look on the Same & Share your valuable feedback & suggestion. If you found any mistake kindly update me for the modification the same.
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Human resource development – Definition
Introduction
Origin of HR – Phases ( early – eighth )
History about the term HR
History about the term HR in India
How different is personal management from HR management
Evolution of HRD in chronological sequence
HR functions in organisations from 1920-1970s
Later arrival of HRM in India
Problems with current HR practises in India
How come the current HR practises in India should be
Importance of HR development in India
Past, present and future
Conclusion
Bibliography
Organizational Strategies to Motivate Employees - Tata Motors, FlipkartAditya Deshpande
Two Companies are analyzed on their Strategies for Motivating Employees
Introduction
HR Policies
Implication of Motivational Theories to HR Policies
for Employee Engagement
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Dear Seniors & Friends,
Sharing the updated PPT on "Provident Fund & MP Act 1952" of India. Kindly have a look on the Same & Share your valuable feedback & suggestion. If you found any mistake kindly update me for the modification the same.
Regards,
Anshu Shekhar Singh
Mob: 9999 844 355
Dear Seniors & Friends,
Sharing the PPT on "Employee's State Insurance Act 1948" of India. Kindly have a look on the Same & Share your valuable feedback & suggestion. If you found any mistake kindly update me for the modification the same.
Regards,
Anshu Shekhar Singh
M: 9999 844 355
Human resource development – Definition
Introduction
Origin of HR – Phases ( early – eighth )
History about the term HR
History about the term HR in India
How different is personal management from HR management
Evolution of HRD in chronological sequence
HR functions in organisations from 1920-1970s
Later arrival of HRM in India
Problems with current HR practises in India
How come the current HR practises in India should be
Importance of HR development in India
Past, present and future
Conclusion
Bibliography
Organizational Strategies to Motivate Employees - Tata Motors, FlipkartAditya Deshpande
Two Companies are analyzed on their Strategies for Motivating Employees
Introduction
HR Policies
Implication of Motivational Theories to HR Policies
for Employee Engagement
FellowBuddy.com is an innovative platform that brings students together to share notes, exam papers, study guides, project reports and presentation for upcoming exams.
We connect Students who have an understanding of course material with Students who need help.
Benefits:-
# Students can catch up on notes they missed because of an absence.
# Underachievers can find peer developed notes that break down lecture and study material in a way that they can understand
# Students can earn better grades, save time and study effectively
Our Vision & Mission – Simplifying Students Life
Our Belief – “The great breakthrough in your life comes when you realize it, that you can learn anything you need to learn; to accomplish any goal that you have set for yourself. This means there are no limits on what you can be, have or do.”
Like Us - https://www.facebook.com/FellowBuddycom
Business & Industry - CSR - Industrial Policy - CSR Committee - Resposibilities of the Committee - Format of Reporting - CSR Policy - List of CSR Activities
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.
Corporate social responsibility | 2015 - Recent TrendsAadhit B
This paper predominantly enumerates the role of Corporate Social responsibilities in the present scenario, its evolution, impact of Clause 135 of Companies Act, 2013, Role of CSRs in SMEs and also its Global Impact.
|Clause 135, Companies Act, 2013 | Companies (CSR policies) Rules, 2014 |
Article on Corporate Social Responsibility - an insightFCS BHAVIK GALA
India is the first country in the world to have a regulatory framework for CSR by law. The Companies Act, 2013 has introduced the idea of CSR to the forefront and through its disclose-or-explain mandate, is promoting greater transparency and disclosure. Schedule VII of the Act, which lists out the CSR activities, suggests communities to be the focal point. On the other hand, by discussing a company’s relationship to its stakeholders and integrating CSR into its core operations, the rules suggest that CSR needs to go beyond communities and beyond the concept of philanthropy.This Article provides insight to the regulatory aspects of CSR in India
Assessment of CSR Law in Companies Act, 2013 – An Analysis of the Performance...inventionjournals
Introduction: The new law making CSR expenditure and reporting mandatory for certain companies is a new chapter in the Indian corporate world and has provided a necessary boost to the status of companies’ responsibility towards the stakeholders, and transparency and accountability of their actions. Need: The mandatory 2% spending of profits on CSR activities got mixed reaction from corporate executives. To ensure that the enforcement of the law isn’t limited to the term “cheque-book CSR”, regular exploration of the companies’ CSR expenditures and their consequent outcomes is absolutely essential. Objective: The paper aims to assess the outcome of Section 135 of the Companies Act, 2013, in the first year of its implementation among the BSE-SENSEX companies. Research methodology: Secondary sources were utilized for collecting profits and CSR expenditure figures of the selected 30 companies for conducting an ex-post analysis for the year 2014-15. Key findings of the study: Less than 15% of the BSE-SENSEX companies had spent on CSR activities an amount that is equal to or greater than the stipulated 2% of the average profits of the preceding 3 years as per Section 135 of Companies Act, 2013. Implications: Immediate attention of regulatory bodies is desired towards companies failing to dispense the funds earmarked for CSR as stipulated by the law to ensure compliance.
Corporate social responsibility - Aadhit B Balaji Aadhit B
This paper predominantly enumerates the role of Corporate Social responsibilities in the present scenario, its evolution, impact of Clause 135 of Companies Act, 2013, Role of CSRs in SMEs and also it’s Global Impact.
- Clause 135, Companies Act, 2013
- Companies (CSR Policy) Rules, 2014
The Companies Act, 2013 requires every eligible company in India to spend 2% of their profits on Corporate Social Responsibility (“CSR”) activities. The company’s Board is entrusted with the responsibility of ensuring proper compliance with the requirement. CSR activities, unlike traditional charity, should be carried out in ‘project mode’ in areas specified in the regulations. The regulations also require preparation of a CSR policy & an annual action plan for undertaking targeted CSR projects during the year.
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.
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.
Similar to Corporate Social Responsibility - Interpretation of Section 135 (20)
Corporate Social Responsibility - Interpretation of Section 135
1. Interpretation of Section 135 of the
Companies Act, 2013
Corporate Social Responsibility
PHD Chamber of Commerce & Industry
September 11, 2013
Ms. Anjuli Sivaramakrishnan
Partner
Kochhar & Co.
3. Background
• Concept of corporate social responsibility is not
new to India. Has found mention in ancient
literature.
• Practiced since time immemorial by individuals
in their personal capacity – Growth of
industrialization has made it structured and a
spurt was seen in corporate India in the 1990s.
4. Background
• World Business Council for Sustainable
Development defines
“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”.
5. INTRODUCTION
• Objective
– To encourage companies to integrate social and other
useful concerns in their business operations for the
betterment of its stakeholders and society in general.
– CSR is a way of conducting business, by which corporate
entities visibly contribute to the social good. Socially
responsible companies do not limit themselves to using
resources to engage in activities that increase only their
profits.
– India is one of the few countries that has provided for CSR
by legislations.
6. SECTION 135 COMPANIES ACT, 2013
• Applicable to Companies having either:
– Net worth of INR 500 Crore or more;
– Turnover of INR 1000 Crore or more;
– Net profit of INR 5 crores or more in the previous financial year.
• Constitution of a CSR Committee consisting of at
least 3 directors, of which at least 1 director is an
independent director.
• Functions of the Committee
– Formulate and recommend to the Board, a CSR Policy.
– Recommend the amount of expenditure.
– Monitor the CSR Policy.
7. • Functions of the Board
– The Board takes into account the recommendations of the CSR
Committee, approves the CSR Policy and displays the same on
the Company’s website.
– Ensures that the activities mentioned in the CSR Policy are
undertaken by the Company.
– Ensure that the Company spends, in every financial year, at
least 2% of its average net profits made during the 3 immediately
preceding financial years, in pursuance of its CSR Policy.
• Reporting
– The report of the Board required to be submitted at the AGM
shall include details about the CSR policy developed and
implemented by the company on CSR initiatives taken during the
year [Section 134(3)(o)].
SECTION 135 COMPANIES ACT, 2013
8. • Penalties for failure to report
– Company
• Fine which shall not be less than INR 50,000 but which
may extend to INR 25,00,000.
– Officer of the company
• Imprisonment for a term which may extend to 3 years
or with fine which shall not be less than INR 50,000 but
which may extend to INR 5,00,000 or both.
SECTION 135 COMPANIES ACT, 2013
9. SECTION 135 COMPANIES ACT, 2013
• Qualifying CSR spending
– Eradicating extreme hunger and poverty;
– Promoting education;
– Promoting gender equality and empowering women;
– Reducing child mortality and improving maternal health;
– Combating HIV, Malaria and other diseases;
– Environmental sustainability;
– Employment enhancing vocational skills;
– Social Business projects;
– Prime Minister National Relief fund or other government funds;
and
– Such other matters as may be prescribed.
10. DRAFT COMPANIES RULES, 2013
• Salient features
– The Draft Rules exclude “activities undertaken in
pursuance of the normal course of business of the
company” from qualifying as CSR.
– Only CSR spending within India would be recognized
under the Act.
– Activities which are solely for the benefit of employees or
their family members are excluded from the scope of CSR
activity.
11. DRAFT COMPANIES RULES, 2013
• Salient features
– The CSR Policy of the company shall include the
following:
• Specify the projects and programmes that are to be undertaken.
• Prepare a list of CSR projects/programmes which a company plans to
undertake during the implementation year, specifying modalities of
execution in the areas/sectors chosen and implementation schedules
for the same.
• CSR projects/programmes of a company may also focus on integrating
business models with social and environmental priorities and processes
in order to create shared value.
12. DRAFT COMPANIES RULES, 2013
• CSR Policy of the company should provide that surplus arising out of
the CSR activity will not be part of business profits of a company.
• CSR Policy would specify that the corpus would include the following:
a. 2% of the average net profits;
b. any income arising there from ; and
c. surplus arising out of CSR activities.
13. CRITICAL ANALYSIS
• Critical analysis
– The Act does not specifically define the term “Corporate
Social Responsibility”.
– Conflict between Sections 135 (relating to CSR), 181 and
182 (relating to political contributions)
• Whether socially driven, political contributions would be
eligible to qualify as CSR contributions.
• Whether political contributions can qualify as social business
projects as stated in Schedule VIII.
– Whether CSR contributions should qualify for tax benefits.
– Whether local area preference relating to CSR, would limit
its benefits to metropolitan cities in India.
14. CRITICAL ANALYSIS
• Critical analysis
– Lack of clarity on unspent CSR amounts, i.e. for how long
can the unspent amounts be accumulated.
– Whether mere explanation in directors report is reasonable
justification for deviation from the approved CSR plan.
– Whether contribution to promoters/directors, family trusts
or trust in which they are interested will satisfy compliance
to CSR obligations.
– Whether a stringent CSR compliance regime to give rise to
distribution of profits between group entities to avoid
prescribed thresholds for applicability of CSR requirements
15. CSR can no longer be equated or treated
as philanthropy…it is time we treated it as
a responsibility and discharged it with the
same zest and zeal as we discharge
several other business and personal
responsibilities.
Thank you
