SlideShare a Scribd company logo
Dr. K K Upadhyay
2 May 2020
Corporate Social Responsibility in India and
Role of Corporates During and Post Corona
Times
Outline
1. Spirit of Corporate Social
Responsibility
2. What is effect of covid on rural India?
3. Relationship between corporate and
civil society
4. After Corona
5. Q & A
The Evolution of CSR
 Nobel Laureate Milton Friedman said “the business of
business is business.” and “the only social responsibility
of business is maximizing profits”
 Gradually companies grew in size and clout
 Companies started playing ever increasing role in
society
 From shareholders to stakeholders
Customers
Vendors
Employees
government etc.
The Evolution of CSR
Profit Philanthropy
Community
Affairs
CSR
Mandatory
CSR
Company
exists for
short term
and for
profits of
shareholder
s
Donations
and
Charity
Giving
linked to
business
interests
Corporate
doing it
strategical
ly
Complian
ce as a
law
India: extreme inequality in numbers
Richest 1% own 53% of India’s wealth
7
A net worth of INR 500 crore
(USD 80 million) or more
1
Turnover of INR 1,000 crore
(USD 170 million) or more, or
Net profit of INR 5 crore
(USD 800,000) or more, or
2
3
CSR-mandated companies
5 years
50,000 cr
Section 135 of the 2013 Act: Schedule VII
Source: https://www.csr.gov.in
Section 135 of the 2013 Act
“COMPLY or EXPLAIN”
2019
“COMPLY or PAY PENALTY ”
Companies (CSR Policy) Draft Amendment Rules, 2020
Engage international organizations
CSR committee -> CSR policy-as per schedule VII
Unspent – unspent CSR account
>5 cr – impact assessment-> Annual report of CSR
Display on website CSR comm-CSR policy-Projects
National unspent CSR funds
Companies (CSR Policy) Draft Amendment Rules, 2020
Modes of implementing CSR activities
(1) The Board shall ensure that the CSR activities are undertaken by the company itself or through:
(2) (a) a company established under section 8 of the Act, or
(b) any entity established under an Act of Parliament or a State legislature.
Private
Sector
Civil
Society
Government
 Private sector/ Corporate – management skills
 NGOs – linkage at grassroots, understands local problems
 Government – Legislations to providing infrastructure
CSR and Novel Coronavirus: 2020 as on 2-May-2020
Series of
circulars
General Circular 23.03.2020
Covid 19 activities in Sche VII
Office memo 28.03.2020
PM care fund permitted
General Circular 10.04.2020
Ex-gratia, State disaster mgmt
Role of Corporates During and Post Corona times
CSR – BC Before Corona
CSR – AC After Corona
Role of Corporates During and Post Corona times
CSR – AC After Corona
•New Normal
•Innovations
•Start-ups
•MSME
•Contribution v/s Project
Thank you for your time
Dr. K.K.Upadhyay
Mobile: +91 9868248478
Email id : kkupadhyay@gmail.com

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CSR in India as on 2-May-2020

  • 1. Dr. K K Upadhyay 2 May 2020 Corporate Social Responsibility in India and Role of Corporates During and Post Corona Times
  • 2. Outline 1. Spirit of Corporate Social Responsibility 2. What is effect of covid on rural India? 3. Relationship between corporate and civil society 4. After Corona 5. Q & A
  • 3. The Evolution of CSR  Nobel Laureate Milton Friedman said “the business of business is business.” and “the only social responsibility of business is maximizing profits”  Gradually companies grew in size and clout  Companies started playing ever increasing role in society  From shareholders to stakeholders Customers Vendors Employees government etc.
  • 4. The Evolution of CSR Profit Philanthropy Community Affairs CSR Mandatory CSR Company exists for short term and for profits of shareholder s Donations and Charity Giving linked to business interests Corporate doing it strategical ly Complian ce as a law
  • 5. India: extreme inequality in numbers Richest 1% own 53% of India’s wealth
  • 6.
  • 7. 7
  • 8.
  • 9. A net worth of INR 500 crore (USD 80 million) or more 1 Turnover of INR 1,000 crore (USD 170 million) or more, or Net profit of INR 5 crore (USD 800,000) or more, or 2 3 CSR-mandated companies 5 years 50,000 cr Section 135 of the 2013 Act: Schedule VII Source: https://www.csr.gov.in
  • 10. Section 135 of the 2013 Act “COMPLY or EXPLAIN” 2019 “COMPLY or PAY PENALTY ”
  • 11. Companies (CSR Policy) Draft Amendment Rules, 2020 Engage international organizations CSR committee -> CSR policy-as per schedule VII Unspent – unspent CSR account >5 cr – impact assessment-> Annual report of CSR Display on website CSR comm-CSR policy-Projects National unspent CSR funds
  • 12. Companies (CSR Policy) Draft Amendment Rules, 2020 Modes of implementing CSR activities (1) The Board shall ensure that the CSR activities are undertaken by the company itself or through: (2) (a) a company established under section 8 of the Act, or (b) any entity established under an Act of Parliament or a State legislature. Private Sector Civil Society Government  Private sector/ Corporate – management skills  NGOs – linkage at grassroots, understands local problems  Government – Legislations to providing infrastructure
  • 13. CSR and Novel Coronavirus: 2020 as on 2-May-2020 Series of circulars General Circular 23.03.2020 Covid 19 activities in Sche VII Office memo 28.03.2020 PM care fund permitted General Circular 10.04.2020 Ex-gratia, State disaster mgmt
  • 14. Role of Corporates During and Post Corona times CSR – BC Before Corona CSR – AC After Corona
  • 15. Role of Corporates During and Post Corona times CSR – AC After Corona •New Normal •Innovations •Start-ups •MSME •Contribution v/s Project
  • 16. Thank you for your time Dr. K.K.Upadhyay Mobile: +91 9868248478 Email id : kkupadhyay@gmail.com