Concept of Corporate social responsibility 2. Types of CSR 3. Advantages 4. Concept of CSR under Indian law 5. Companies involved in CSR 6. Concept of CSR under English law 7. Conclusion

1. GLS BBA
LEGAL ASPECTS OF BUSINESS
PRACTICAL
ASSIGNMENT WORK 2019-20
ROLL NUMBER : – 91 - 100
SEMESTER - 5
SUBMITTED TO: - PROF. MINOUTI JANI

2. NAME OF STUDENTS
91. DHRUVI ADHVARYU
92. HUMA ANSARI
93. YOGITA ATTAL
94. LAKSHIT BOHRA
95. SAHIL CHANDARANA
96. VASANT CHAUDHARY
97. KHUSHI DAVE
98. MUSKAN DUGAL
99. CHANDNI GOPANI
100. KUSHANG GROVER

3. TOPIC
Concept of corporate social responsibility under
English law
And
Indian law

4. INDEX
1. Concept of Corporatesocial responsibility
2. Types of CSR
3. Advantages
4. Concept of CSR under Indian law
5. Companies involved in CSR
6. Concept of CSR under English law
7. Conclusion

5. Concept of CSR
Corporate Social Responsibility (CSR) is a concept that suggests that
it is the responsibility of the corporations operating within society to
contribute towards economic, social and environmental development
that creates positive impact on society at large.
However the concept revolves around that fact the corporations needs
to focus beyond earning just profits. The term became popular in the
1960s and now is formidable part of business operations.
What CSR basically means is that a business does more for the well
being of others than required in an economical (make a profit) and
legal (obey the law) sense.
Different types of CSR
 Environmental CSR: focuses on eco-issues such as climate
change.
 Community based CSR: businesses work with other
organizations to improve the quality of life of the people in the
local community.
 HR based CSR: projects that improve the wellbeing of the
staff.
 Philanthropy: businesses donate money to a good cause,
usually through a charity partner.

6. Advantages:
1. 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.
More choice means a better workforce. Because of the high positive
impact of CSR on employee wellbeing and motivation, the role of HR
in managing CSR projects is significant.
2. 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.

7. 3. 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.
4. Costs reductions
Yes, you read this correctly. A CSR program doesn’t have to cost
money. On the contrary. If conducted properly a company can reduce
costs through CSR.
Companies reduce costs by:
 More efficient staff hire and retention
 Managing potential risks and liabilities more effectively
 Less investment in traditional advertising
5. More business opportunities
A CSR program requires an open, outside oriented approach. The
business must be in a constant dialogue with customers, suppliers and
other parties that affect the organization. Because of continuous
interaction with other parties, your business will be the first to know
about new business opportunities.
6. 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” (Vodafone 2010 report):

8. Concept of CSR law in India
The Companies Act, 2013
As per as Corporate Social Responsibility is concerned, the
Companies Act, 2013 is a landmark legislation that made India the
first country to mandate and quantify CSR expenditure.
India is the first country in the world to make corporate social
responsibility (CSR) mandatory, following an amendment to the
Companies Act, 2013 in April 2014. Businesses can invest their
profits in areas such as education, poverty, gender equality, and
hunger as part of any CSR compliance
The details of on corporate social responsibility is mentioned in the
Section 135 of the Companies Act, 2013. The Act came into force
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.
The corporations are required to setup a CSR committee which
designs a CSR policy which is approved by the board and
encompasses the CSR activities the corporations is willing to
undertake. The act also has penal provisions for corporations and
individuals for failure to abide by the norms.

9. The responsibilities of the above-mentioned committee will be:
 Creation of an elaborate policy to implement its legally
mandator CSR activities. CSR acts should conform to Schedule
VII of the Companies Act, 2013.
 The committee will allocate and audit the money for different
CSR purposes.
 It will be responsible for overseeing the execution of different
CSR activities.
 The committee will issue an annual report on the various CSR
activities undertaken.
 CSR policies should be placed on the company’s official
website, in the form and format approved by the committee.
 The board of directors is bound to accept and follow any CSR
related suggestion put up by the aforementioned committee.
 The aforementioned committee must regularly assess the net
profits earned by the company and ensure that at least 2 percent
of the same is spent on CSR related activities.
 The committee must ensure that local issues and regions are
looked into first as part of CSR activities.
Needs of CSR for a company
 Communities provide the license to operate
 Attracting and retaining employees, motivate employees
 Enhancing corporate reputation
 Generating goodwill, creating a positive image
 CSR attracts more investors
 Customers are attracted towards socially responsible companies

10. Companies involved in CSR and some of them are :
 HUL
Project Shakti (empowering women)
Sanjivani (free mobile medical service camp)
 TATA
Employability and skill advancement
Environmental conservation
Healthcare
 Oil India LTD
Educational, health and infrastructure development

11. Concept of corporate social responsibility under English
law
The United Nations Industrial Development Organization defines
corporate social responsibility as “a management concept whereby
companies integrate social and environmental concerns in their
business operations and interactions with their stakeholders.”
All the countries use the LBG model to assess the real value and
impact of their community investment to both, the business and
society. Corporate Social Responsibility (CSR) is executed after a
lot of planning and strategizing.
Growing anxiety over such issues as pollution, climate change,
globalisation, terrorism, poverty and corporate malpractice has
resulted in CSR being catapulted onto policy-making agendas
Yet there is mounting pressure for legal intervention. This is explored
by examining the Company Law Review, the Operating and
Financial Review ("OFR") regulations and other attempts to enact
primary and explicit CSR legislation in the United Kingdom ("UK").
Events suggest that the legal scope of CSR is likely to broaden in the
future. The European Union ("EU") and UK policy framework The
EU made its first pledge on CSR at the Lisbon Summit in March
2000.

12. In July 2001 the European Commission published a Green Paper on
CSR. This was an important policy document outlining Europe's
objectives of raising awareness, CSR as a concept whereby
companies integrate social and environmental concerns in their
business operations and in their interaction with their
stakeholders on a voluntary basis.
The Commission then described a strategy aimed at increasing
knowledge of the positive impacts of CSR, exchanging experiences
and good practice, promoting and developing management skills.
The ED Multi-Stakeholder Forum was established in October 2002.
Its objective was to foster CSR and promote innovation, transparency
and convergence of practices and instruments. CSR is the voluntary
integration of environmental and social considerations into business
operations (over and above legal requirements and contractual
obligations).
More specifically, the Forum proclaimed that CSR:
(a) Requires the commitment of management
(b) Is about core business activities
(c) Is one of many ways of achieving economic, social and
environmental progress, and for integrating these concerns into
business practices
(d) Complements other ways of ensuring high environmental and
social performance
(e) Is an ongoing learning process, must impact up and down the
supply chain.

13. The Accounts Modernisation Directive (2003/51/EC), which
modifies the reporting requirements in directors' reports so that from
2005 certain companies will be required to report on non-financial
matters. The Directive states that, to the extent necessary for an
understanding of the company's development, performance and
position, the analysis shall include both financial and, where
appropriate, non-financial key performance indicators relevant to the
business.
In the UK, the Government appointed the world's first Minister for
CSR in March 2000. The Minister's early work focused on developing
the business case, encouraging good practice, promoting CSR
internationally and joining up action across Government.
Three related All-Party Parliamentary Groups were established on
 Corporate governance
 Corporate social responsibility
 Social responsible investment
The Group on CSR being established to promote debate, improve
understanding and encourage business interaction with wider society.
In 2001 the Government published its first CSR report, stressing its
responsibility for promoting the business case and in providing
leadership by helping to achieve consensus on vision and priorities for
action. In May 2004 the Government released a CSR update in which
the Minister said he remained convinced that the focus should be a
voluntary one although the "policy framework must use the right mix
of tools - including fiscal and regulatory measures where appropriate -
to boost socially and environmentally responsible performance".

14. The OFR Regulation
In March 1998 Margaret Beckett of the DTI launched a long-term
review of company law. This was carried out by an independent
Company Law Review Steering Group (CLRSG) and its aim was to
develop a simple, modem, efficient and cost-effective framework for
undertaking business activity. Its final report stated that there was a
"well-developed system of financial reporting, which is essentially
quantitative and historic", but that companies are "increasingly reliant
on qualitative and intangible assets such as the skills and knowledge
of their employees, their business relationships and their reputation".
Information on future plans, opportunities, risks and strategies should,
therefore, be considered as important as the historical review of
performance.
The CLRSG claimed that the requirement to produce an OFR would
improve the quality, usefulness and relevance of information available
to the markets and to everyone with an interest in the company. It
suggested that this was best achieved through the provision of
mandatory and discretionary information.
Firstly, it was recommended that there should be three mandatory
items:
(a) The company's business, strategy, and principal drivers of
performance
(b) A review of the development of the company's business over the
year
(c) The dynamics of the business, including events, trends and other
factors which may substantially affect future performance.

15. Secondly, the OFR should contain discretionary information on
important areas like corporate governance and reputation,
employee and community relationships, environmental and social
issues, and customers and ethical issues.
The CLRSG's OFR recommendations were adopted in the
Government's Company Law White Paper. Part Two recounts the
Government's position on the OFR and, as Goddard maintains, it is in
this context that the White Paper refers to CSR. On proposals for an
OFR, it is declared that companies should provide more qualitative
and forward looking reporting as well as information that is
quantitative, historical or about internal company matters.
The White Paper acknowledged that, in deciding in good faith what
would be most likely to promote the success of the company,
directors should take account of factors within and outside the
company, which are relevant to achieving its objectives. These
include relationships with employees, customers and suppliers, the
company's impact on the wider community and the company's impact
on the environment.

16. CONCLUSION
CSR in India was legislated with the hope that it would bring about a
change in the attitude of corporate institutions, who would give back
to the society in a big way as it was the society whose needs helped
them prosper in the first place. Similarly, it was also felt that the
society would also get help as the government has been found to be
wanting in its efforts to help local populace in several instances.
The CSR act, in spite of all its good intentions, has failed to cover a
lot of ground. It has given an impetus to companies to give back to the
society however, due to some policy and procedural inadequacies, it
has failed to set up a fool-proof method of imparting CSR.
Faulty criterions to determine the extent of money spent, fudging of
data, selective and self-serving CSR tasks or short-term money
spending are some of the core problems that India’s CSR laws and
policy suffer from.
 CSR is the heart and soul of modern corporations and is an
important standard for corporate governance
 It creates goodwill of the company
 Helps in profit maximization
 CSR goes beyond the charity
Therefore, the need of the hour is to change the CSR laws and amend
it to become long-term, simple and easier to monitor. CSR laws, with
some tweaks, will greatly help the society in the near future.