This document discusses socio-economic development and international trade. It covers topics such as economic development indicators in India, changes to the Companies Act in 2013 regarding corporate social responsibility, the meaning of socio-economic development, foreign investment and its impact on growth, and CSR requirements in India and globally. The document presents data on economic growth, poverty levels, education, and sanitation access in India. It outlines companies' new CSR responsibilities and spending requirements under the Companies Act. It also examines the effects of foreign investment on socio-economic development and considers both benefits and drawbacks.

1. Socio Economic
Development
&
International Trade
V Leeladhar
MBF

2. Economic Development
Companies Act, 2013 Changes
Meaning Socio – Eco Development
Foreign Investments and Socio – Eco Growth
CSR in India
CSR by International Financial Market
Agenda

3. Economic
Development
Companies
Act

4. Economic Growth Indicators
0
20
40
60
80
100
Rural Urban Rural Urban
Drinking Water Source Sanitation Facility
Percent
Proportion of Population Using an Improved Drinking
Water Source and Sanitation Facility, 2012
0
10
20
30
40
50
60
70
80
Rural Urban Rural Urban
National Poverty, 2012 $2-a-day at 2005 PPP$,
2010
Percent
Proportion of Population Living Below the National
Poverty Line and $2-a-day at 2005 PPP$, Latest Years
Economic Growth 1990 or Nearest Year 2012 or Latest Year
Annualized growth rate of GDP per capita at PPP (constant 2011 PPP$) 4.1(92–97) 5.9(07–12)
GDP per person engaged at constant 1990 PPP$ 3,531 9,200
School life expectancy (primary to tertiary) years 8.5(2000) 11.7(2011)
Pupil–teacher ratio (primary) 35(1999) 35(2011)
Proportion of population using an improved sanitation facility percent 18 36
Socio – Economical development - improvement of people’s education, incomes, skills
development and employment.
Process of economic and social transformation based on cultural & environmental factors.

5. Companies Act – 2013 - CSR
Sec. 135 of
Companies Act
• President Assent
on 29.08.13
• Applies from FY
14-15
2% Profits
• Avg. of last 3
years profits
• Profit –(PBT)
• Foreign branches
excluded
Process
• List of activities –
Schedule VII
• Excludes
• Outside India
• Marathons/TV
programmes
excluded
Commitment by Business to
- Behave ethically
- Contribute economic development
- Improving Quality of Life

6. CSR areas:

7. Board Role
To Create CSR
Committee
Approve CSR Policy
Ensure CSR
Implementation
CSR Committee
3 or More Directors with
1 Ind. Director
Formulate, Recommend
& Monitor CSR Policy
Recommend activities &
exp. to incur
Net Worth >
Rs. 500 Crores
Turnover > Rs.
1000 Crores
Net Profit > Rs.
5 Crores
Responsibilities casted by Companies ACT

8. Responsibilities casted by Companies ACT

9. CSR – Global Level

10. CSR – Gross Responsibility Initiative

11. When funds flow across national boundaries and the transfer is between parties
residing in different countries, there comes into existence the International
financial markets

12. 0
2
4
6
8
10
12
14
16
18
17.5
10.06
7.05
5.78
5.37
4.77
4.28 3.97
3.5 3.23
SECTOR-WISE FDI - Equity
Apr 2000 - Dec, 2014
0
5
10
15
20
25
30
35
40
35.38
12.47
9.13
7.42
5.79 5.62
3.32 3.05
1.87 1.23
COUNTRY-WISE FDI EQUITY
Apr 2000 - Dec, 2014

13. Effects of Foreign Investment & Socio Economic growth
Drawbacks
Decline of local Manufacture
Pollution heavens
Impact on Economic integrity
Impact of sovereignty
+ Aspects
Employment, P Power, GDP
Industry Growth
Open Market
Infrastructure Development

14. CSR – DIVERGENCY

15. CSR – DIVERGENCY