2. WWW.UNIQUEPLACES.COM
CONTENT:
- Introduction To CSR
- Mandatory Provisions Of CSR Under Companies Act 2013
- CSR Initiatives by Different Companies In India
- So why CSR?
- Cases Related To CSR
- Conclusion
2
3. WWW.UNIQUEPLACES.COM
INDIA
• India is one of the largest economies of the world, and an increasingly important player
in the emerging global order.
• But it is still home to the largest number of people living in absolute poverty (even if the
proportion of poor people has decreased) and the largest number of undernourished
children.
• What emerges is a picture of uneven distribution of the benefits of growth which
many believe, is the root cause of social unrest.
3
4. WWW.UNIQUEPLACES.COM
INDIAN COMPANIES
• Companies too have been the target of those perturbed by this uneven development and
as a result, their contributions to society are under severe scrutiny.
• With increasing awareness of this gap between the haves and the have-nots, this
scrutiny will only increase over time and societal expectations will be on the rise.
• Many companies have been quick to sense this development, and have responded
proactively while others have done so only when pushed.
4
5. WWW.UNIQUEPLACES.COM
STEPS TAKEN
• Governments as well as regulators have responded to
this unrest.
• The National Voluntary Guidelines for Social,
Environmental and Economic Responsibilities of
Business or the NVGs (accompanied by the
Business Responsibility Reports mandated by the
SEBI for the top 100 companies) released by the
Ministry of Corporate Affairs.
• The CSR clause within the Companies Act, 2013.
5
6. WWW.UNIQUEPLACES.COM
CSR & INDIA
According to Indian Institute of Corporate Affairs:
• A minimum of 6,000 Indian companies will be required to undertake CSR projects in order
to comply with the provisions of the Companies Act, 2013 with many companies
undertaking these initiatives for the first time.
• Some estimates indicate that CSR commitments from companies can amount to as much
as â‚ą 20,000 crore.
6
8. WWW.UNIQUEPLACES.COM
MANDATORY PROVISIONS OF CSR UNDER COMPANIES ACT 2013
o MCA notified section 135 and schedule VII of Companies Act 2013 for Companies (CSR) rule 2014 came
into effect on April 1st, 2015.
o With effect from April 1, 2014, every company, private limited or public limited, which either has a net
worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social
responsibility activities.
o In determining CSR activities to be undertaken, preference would need to be given to local areas and
the areas around where the company operates.
Source: http://www.business-standard.com/article/companies/an-overview-of-
csr-rules-under-companies-act-2013-114031000385_1.html
8
9. WWW.UNIQUEPLACES.COM
o The activities that can be undertaken by a company to fulfil its CSR obligations are:
Providing food to hunger, poverty and malnutrition, promoting preventive healthcare,
promoting education and promoting gender equality, setting up homes for women,
orphans and the senior citizens, animal welfare, protection of national heritage,
development and relief and welfare of SC, ST, OBCs, minorities and women, contributions
or funds provided to technology within academic institutions approved by the Central
Government and rural development projects.
9
10. WWW.UNIQUEPLACES.COM
CONSEQUENCES OF CSR & PENALTIES:
- Following activities are not consider as a CSR activities in Section – 135 -
o Contribution to political parties.
o Opening schools for children's of employees
o Bonus to workers
o Providing technical skills or additional knowledge to workers.
o Running welfare services for employees, etc.
- Penalties for default:
Rs. 50,000/- fine or 3years imprisonment or both a company owner have to face for not filing
the CSR report to the MCA.
10
13. WWW.UNIQUEPLACES.COM
13
VASUNDHARA
• Tree Plantation Programmes
• Creating Environmental Awareness
• Soil and Water Conservation
• 1,64,000 trees were planted in 2013-14
SOURCE :
http://www.tatamotors.com
/investors/financials/69-ar-
html/csr.html
VIDYADHANAM
o Scholarship Programmes
o Special Coaching Classes
o School Infrastructure Improvement
o Co-Curricular activities
o More than 37,000 children were benefited
in 2013-14
AAROGYA
• Addressing Malnutrition
• Preventive and Curative Healthcare Services
• Creating health awareness
• More than 2,84,000 persons were benefited in
2013-14
KAUSHALYA
o Driver Training Programme
o Training in Automotive and Technical Trades
o Training in Agriculture and allied activities
o ITI adoption Programme- training 137 youth across
India
o More than 20,000 youth were benefited in 2013-14
14. WWW.UNIQUEPLACES.COM
ORCHID CHEMICALS
• Orchid chemicals and pharmaceuticals limited is an Indian company
based in Chennai founded on 1, July, 1992 by kailasam raghavendra
rao an alumnus of IIM Ahmedabad.
• There was a CSR conflict ,women workers protested for not having
equal rights as men in terms of salary, promotions and basic facilities.
15. WWW.UNIQUEPLACES.COM
CANON
CANON is a Japanese multinational corporation specialized in manufacture of imaging
and optical products. Canon has regional headquarters in japan America ,Asia ,Europe,
middle east ,Africa ,etc.
The csr conflict, the workers are not allowed to sit during working hours , then should
work all day long . The main moto only to make profit and increase efficiency of
company.
16. WWW.UNIQUEPLACES.COM
RELIANCE
Reliance industries limited is an Indian holding company headquartered in Mumbai
.the group is present in many business sectors across India including petrochemicals,
health care ,retail ,textiles, etc.
The csr conflicts
• Business with suppliers those using child labor.
• In may 2014, ONGC moved to Delhi court accusing RIL for disposing high amount of
toxic of its gas producing in Krishna Godavari basin.
17. WWW.UNIQUEPLACES.COM
ASIAN PAINTS
Asian paints limited is an Indian chemical company headquartered in Mumbai. It
manufacture paints for decorative and industrial use. It is India's largest and Asia's third
largest paint company.
The CSR conflict
• The toxic chemicals which are removed by the Asian paints industries caused the
death of thousand of fishes .
• Its chemical pollutes surrounding water more faster than any other company.
18. WWW.UNIQUEPLACES.COM
18
SATISFIED EMPLOYEES
Employees want to feel proud of the organization they work for. An employee with a positive attitude towards
the company, is less likely to look for a job elsewhere. It is also likely that you will receive more job
applications because people want to work for you.
SATISFIED CUSTOMERS
Research shows that a strong record of CSR improves customers’ attitude towards the company. If a customer
likes the company, he or she will buy more products or services and will be less willing to change to another
brand.
19. WWW.UNIQUEPLACES.COM
19
POSITIVE PR
CSR provides the opportunity to share positive stories online and
through traditional media. Companies no longer have to waste
money on expensive advertising campaigns. Instead they generate
free publicity and benefit from worth of mouth marketing.
LONG TERM FUTURE FOR YOUR BUSINESS
CSR is not something for the short term. It’s all about achieving long
term results and business continuity. Large businesses refer to:
“shaping a more sustainable society”
20. WWW.UNIQUEPLACES.COM
20
• Communities provide the license to operate.
• Attracting and retaining employees.
• A company’s ability to attract, retain and motivate employees with their CSR
commitments.
• Enhancing corporate reputation.
• Generating goodwill, creating a positive image.
• Corporate Social Responsibility attracts more investors.
• Customers are attracted towards Socially responsible companies.
Needs of CSR for a Company:
22. WWW.UNIQUEPLACES.COM
CONT…
3. Oil India Ltd.
Educational, health and infrastructural development.
4 Aditya Birla Group.
Social causes
Health care and family welfare
Infrastructure development
23. WWW.UNIQUEPLACES.COM
CONCLUSION
• CSR is the heart and soul of modern corporations and is an important stander for
corporate governance.
• CSR is mandatory for every company according to Indian Company Act 2013.
• It creates Goodwill of the company.
• Helps In Profit maximization.
• CSR goes beyond the charity.
23