3. Corporate Social Responsibility
(C.S.R.)
• The totality of CSR can be best understood
by three words: ‘corporate,’ ‘social,’ and
‘responsibility’.
• In broad terms, CSR relates to
responsibilities corporations have towards
society within which they are based and
operate.
4. • Myth #1: Businesses invest the money,
therefore they decide the modus operandi of
the CSR initiative.
• Myth # 2: Financial resources alone can
meet CSR needs of an enterprise.
• Myth # 3: CSR is interchangeable with
corporate sponsorship, donation or other
philanthropic activities.
5. Trend of CSR
• From Charity to Responsibility.
• Conceptualisation.
• Implementation.
• Evaluation.
• Reporting.
6. Corporate Social Responsibility Rules
under Section 135 of the Companies Act, 2013
• CSR is the process by which an organization thinks about and
evolves its relationships with stakeholders for the common good,
and demonstrates its commitment in this regard by adoption of
appropriate business processes and strategies. Thus CSR is
not charity or mere donations.
• 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.
They use CSR to integrate economic, environmental and social
objectives with the company’s operations and growth.
7. Provision in CSR Rules
• 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.
• CSR projects/programmes of a company may also focus on
integrating business models with social and environmental priorities
and processes inorder to create shared value.
• 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 therefrom c.
surplus arising out of CSR activities.
8. SCHEDULE VII
• Eradicating extreme hunger and poverty.
• Promotion of education.
• Promoting gender equality and empowering women.
• Reducing child mortlity and improving maternal health.
• Combating human immunodeficiency virus, acquired immune deficiency
syndrome, malaria and other diseases.
• Ensuring environmental sustainability;
• Employment enhancing vocational skills;
• Social business projects.
• Contribution to the Prime Minister's National Relief Fund or any other
fund set up by the Central Government or the State Governments for
socio-economic development and relief funds.
