No table of contents entries found.

Contents
LESSON 1
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Introduction 4
Historical Background of CSR 5
Developments On Corporate Social Responsibility in India 6
Concept of Corporate Social Responsibility 7
Principles of CSR 7
CSR in Indian Legislation 8
Corporate Social Responsibility 9
CSR Implementation 12
CSR Committee 12
CSR Expenditure 14
CSR Reporting 14
CSR: An International Perspective 15
Sustainable Development Goals 15
United Nations Global Compact 16
International Organization for Standardization 16
Global Reporting Initiative 17
ASEAN CSR Network 20
The Egyptian Corporate Responsibly Center (ECRC) 22
Corporate Social Responsibility in South Africa 22
Corporate Social Responsibility in United Kingdom 24
Netherlands Enterprise Agency 25
Lesson Round-Up 26
Test Yourself 27
References 27

Lesson 2
CSR POLICY
Introduction 30
CSR & Permissible Activities 30
Development Sectors in CSR 36
Activities not considered as CSR 37
CSR Committee 39
Functions of CSR Committee 40
Board’s Responsibilities towards CSR 40
CSR Policy 42
Annual Action Plan 43
Model Corporate Social Responsibility Policy 44
Corporate Social Responsibility Policy of ITC Limited 48
Philosophy 48
CSR Policy 49
Implementation 50
Governance 50
CSR Expenditure 51
Extract of TATA MOTORS – Corporate Social Responsibility FY 22-23 51
Lesson Round-Up 52
Test Yourself 53
References 53

Lesson 3
CSR PROJECTS & IMPLEMENTATION AGENCY
Introduction 56
CSR Implementation 57
Identifying appropriate Implementing Agency 58
Implementation framework 60
CSR Spending 61
Minimum 2% spending requirement 61
Applicability of CSR provisions to newly incorporated companies 62
On-going project 62
Meaning of ‘Commencement’ 63
Unspent Amount 64
Surplus arising out of CSR projects 65
Administrative Overheads 66
Creation of Capital Assets 66
CSR Monitoring 67
CFO Certification 68
Delivery Mechanism 69
CSR Assessment 69
Monitoring & Evaluation 70
Display of CSR Activities on Website 72
Leveraging Technology & IT Tools 72
National CSR Data Portal 73
National CSR Exchange Portal 73
Lesson Round-Up 74
Test Yourself 75
References 75
LESSON 4
SOCIAL IMPACT ASSESSMENT & CSR AUDIT
Introduction 78
Social Impact Assessment 78
Social Impact Assessment and Indian Legislative Framework: 79
Importance of Social Impact Assessment 80
Process of Social Impact Assessment 81
Principles of Social Impact Assessment 81
Stages in Social Impact Assessment 84
Approaches & Methods 85
Tools of Social Impact Assessment 86
Format of Social Impact Assessment Report 91
CSR Audit 93
Responsibility of Auditors 94
CSR: Accounting and Taxation Aspects 96
CSR Accounting Aspects 97
General Recognition & Measurement Criteria of CSR 97
Treatment of Unspent CSR Amount 99
Treatment of Excess CSR Amount 99
Presentation & Disclosure Requirements 100
CSR: Taxation Aspects 100
Lesson Round-Up 102
Test Yourself 103
References 103

LESSON 5
GUIDELINES ON CSR
Introduction 106
Governing Provisions 106
Guidelines of CSR and Sustainability for Central Public Sector 107
Enterprises (CPSEs)
Guidelines for CSR Expenditure by CPSEs 111
CSR in Insurance Companies 111
Guidelines on Corporate Governance for insurance companies issued by 113
the Insurance Regulatory and Development Authority of India (IRDAI)
CSR Initiatives by Selected Private Sector Insurance Companies in India 114
CSR in Banking Companies 115
CSR Activities of Selected Private and Public Sector Banks in India 116
State Bank of India-Policy on Corporate Social Responsibility 122
Lesson Round-Up 130
Test Yourself 130
References 131

LESSON 6
CSR AND SUSTAINABLE DEVELOPMENT GOALS
Introduction 134
Need for Corporate Governance 135
Elements / Scope of Good Corporate Governance 135
Corporate Governance and CSR 138
CSR as Organizational Brand Building 139
Factors influencing CSR 140
Sustainable Development Goals and CSR 141
SDGs and CSR: Co-relation 143
NGBRC Principals & Its Core Elements 144
Mapping of SDGs with Schedule VII of the Companies Act 2013 147
CSR and Sustainability Reporting 147
Integrated Reporting 147
Lesson Round-Up 150
Test Yourself 151

LESSON 7
IMPACT OF CSR
Introduction 154
CSR and Its Types 155
Triple Bottom Line (TBL) Approach 156
CSR Impact Assessment 156
Advantages of CSR impact assessment 157
CSR Impact Assessment: Eligibility Criteria 159
CSR Impact Assessment: Models & Approaches 159
Principals of Impact Assessment 160
Methods & Types of Impact Assessment 160
CSR Impact Assessment Reporting 165
Structure of Impact Assessment Report 166
CSR Impact Assessment Report and Best Practices Followed by Top 167
Companies
Lesson Round-Up 173
Test Yourself 174
References 174

Part II – SOCIAL GOVERNANCE

LESSON 8
SOCIAL GOVERNANCE
Introduction 178
Examples of Social Governance 179
Evolution of Social Governance 180
Benefits of Social Governance 181
Limitations of Social Governance 182
Social Governance Framework – Components 183
Social Governance Framework - Formation And Implementation 183
Ways to Practice Social Governance in an Organization 184
Company’s behavior Regarding Social Issues 185
Employment Equality and Gender Diversity 186
Employee Health and Safety 189
Product Safety Concerns And Liability 193
Importance of product safety 194
Human Rights and its Development 197
Internationally Recognized Human Rights and Examples of How 198
Business Might Impact Them
Examples of Companies following Social Governance 206
Lesson Round-Up 207
GLOSSARY 207
Test Yourself 208
Further Readings and References 208

LESSON 9
SOCIAL STOCK EXCHANGE
Introduction 210
Background 210
Regulatory Framework 212
Social Stock Exchange 213
Access to Social Stock Exchange 213
Social Stock Exchange Governing Council 213
Eligibility Conditions for being Identified as a Social Enterprise 213
Requirements relating to Registration for a Not for Profit Organization 215
Fund Raising by Social Enterprises 215
Ineligibility for Raising of Funds 215
Ineligibility for Raising of Funds 216
Issuance of Zero Coupon Zero Principal Instruments 216
Eligibility for issuance of Zero Coupon Zero Principal Instruments 217
Procedure for public issuance of Zero Coupon Zero Principal 217
Instruments by a Not for Profit Organization
Procedure for private issuance of Zero Coupon Zero Principal 217
Instruments by a Not for Profit Organization
Contents of the Fund Raising document 218
Other conditions relating to issuance of Zero Coupon Zero Principal 218
Instruments
Deemed compliance with Securities Contracts (Regulation) Rules, 1957 218
Termination of listing of Zero Coupon Zero Principal Instruments from 218
the Social Stock Exchange
Obligations of Social Enterprises 219
Disclosures by a For Profit Social Enterprise 219
Disclosures by a Not for Profit Organization 219
Intimations and Disclosures by Social Enterprise of Events or 219
Information to Social Stock Exchange(s) or Stock Exchange(s)
Disclosures by a Social Enterprise in respect of Social Impact 220
Statement of Utilization of Funds 220
Framework on Social Stock Exchange 220
Minimum Requirements to be met by a Not for Profit Organization 220
(NPO) for registration with SSE in terms of Regulation 292F of the
ICDR Regulations
Minimum Initial Disclosure Requirement for NPOs Raising Funds 221
through the issuance of Zero Coupon Zero Principal Instruments in
terms of Regulation 292K(1) of the ICDR Regulations
Disclosure of Annual Impact Report by all Social Enterprises which 223
have Registered or Raised Funds using SSE in terms of Regulation
91E of the LODR Regulations
Statement of Utilisation of funds in terms of 91F of the LODR 224
Regulations
Guidance Notes for Listed/Registered NPOs on Disclosures of General, 224
Governance and Financial Aspects
General Disclosures 224
Governance Disclosures 226
Financial Disclosures 227
Guidance notes for all Social Enterprises (SEs) on Annual Impact 227
Report (AIR)
Strategic Intent and Planning 227
Approach 228
Impact Scoreboard 229
Social Audit 230
Objectives 231
Scope 232
ICSI Institute of Social Auditors (IISA) 233
SSEs in other jurisdictions 233
Brazil’s Socio-Environmental Impact Exchange (BVSA) 233
South Africa’s SASIX 233
UK Social Stock Exchange 233
Canada Social Venture Connexion 233
Singapore’s Impact Investment Exchange 233
The Jamaica Social Stock Exchange (JSSE) 233
Lesson Round-Up 234
Test yourself 235
References 236

LESSON 10
CONTRIBUTION OF NON-CORPORATE ENTITIES (NCE) IN SOCIAL
GOVERNANCE
Introduction 238
Non Corporate Entities 238
Sole Proprietorship 238
Characteristics and Ownership Structure 238
Advantages of Sole Proprietorship 239
Disadvantages of Sole Proprietorship 239
Registration Requirement 239
Taxation 239
Partnership 239
Characteristics of Partnership form of Business 240
Advantages of Partnership Firm 240
Disadvantages of Partnership Firm 241
Registration of a Partnership Firm 241
Taxation of a Partnership Firm 241
Some essential elements of Trust are: 241
Types of Trust 242
Features of a Trust 242
Regulatory framework / registration of Trust 242
Taxation of Trusts 242
Non-Profit / Non-Government Organizations (NGOs) 243
Need for Non-Governmental Organizations (NGOs) 244
Legislations regulating the finances of NGOs 244
Contribution of Non-Corporate Entities / NGOs 245
Towards National Development 245
Towards Social Welfare and Governance 247
Role of Non-Governmental Organisations (NGOs) 247
Good Governance Initiatives in local Government 250
Governance at Local Government Level 251
Local Government framework in India 251
Initiatives for Good Governance in India 252
Lesson Round-Up 253
Test Yourself 255
Further Readings and References 255

LESSON 11
SOCIETIES AND TRUSTS
Society 258
Introduction 258
Registration 258
Procedure for Registration 259
Rules & Regulations 260
Society may make bye-law 260
Members – Their Rights and Liabilities 261
When members treated as strangers? 262
Property of Society: Where it vests? 262
Working and Management of Society 263
Amendment or Alteration 264
Suits by and against Society 264
Enforcement of Judgement Against Society 265
Amalgamation or Division of the Society 265
Dissolution of Society 265
Consequences of Dissolution 267
Registrar of Societies – Powers & Duties 267
Offences and Penalties 267
Trusts 268
Introduction 268
Indian Trust Act 268
Scope 269
Definition of Trust 269
Trust and Contract 269
Difference Between Trust and Bailment, Trust and Agency 269
Difference between Trust and Agency 270
Classification of Trusts 270
Simple and Special Trust 270
Oral and Written Trusts 270
Charitable or Religious Trust 270
Express and Implied Trusts 270
Public and Private Trusts 271
Revocable and Irrevocable Trusts 271
Public-cum-Private Trust 271
Constructive Trust 271
Resulting Trust 271
Executed and Executory Trust 271
Creation of Trust 272
Creation of trusts for lawful purposes only 272
Trusts of Immovable Property 272
Creation of a Trust 272
Who can create a Trust? 273
Who may be a Trustee? 273
Who may be a Trustee? 273
Duties of Trustee 273
Liabilities of Trustees 275
Rights, Powers and Disabilities of Trustees 276
Powers of Trustee 276
Disabilities of Trustees (Chapter V) 276
Vacating the office of trusteeship 277
Meaning of a Beneficiary 277
Who may be a beneficiary 277
Doctrine of Cypres 278
Rights and Liabilities of Beneficiaries (Chapter VI) 278
Liabilities 278
Extinction of a Trust (Section 77) 278
Revocation of a Trust (Section 78) 279
Lesson Round-Up 279
Test Yourself 280

LESSON 12
PARTNERSHIP FIRMS
Introduction 282
Partnership 282
Partners, Firm and Firm Name 283
Essentials of a Partnership and True Test of Partnership 283
Sharing of Profits is not Conclusive 284
Formation of Partnership 285
Partnership Deed 285
Classification of Partnership 286
Co-ownership and Partnership 287
Hindu Joint Family Firm and Partnership 287
Company and Partnership 287
Partnership Property 288
Kinds of Partners 289
Rights of Minor 291
Liabilities of Minor 291
Election by Minor 291
Relation of Partners to one another 292
Rights of Partners 292
Duties of Partners 293
Relation of Partners to Third Parties 294
Partners as Agents 294
Implied Authority of a Partner 294
Acts beyond Implied Authority 295
Extent of Partners’ Liability 295
Liability of the Firm for Torts 295
Liability of an Incoming Partner 295
Liability of an Outgoing or Retiring Partner 295
Death or Insolvency 296
Dissolution 296
Dissolution of the Firm 296
Dissolution of the Firm through Court 297
Effect of Dissolution 298
Loss due to insolvency of partners 299
Goodwill 299
Registration of the Firm 299
Registration 300
Effects of Non-registration 300
Specific Performance of Partnership Agreement 301
Suit for Libel or Slander 301
Lesson Round-Up 301
Test Yourself 302

LESSON 13
MODEL CODE FOR MEETINGS OF NON-CORPORATE ENTITIES
Introduction 304
Definitions 304
Convening a Meeting 304
Authority 304
Time, Place and Serial Number of Meeting 305
Every Meeting shall be serially numbered for ease of reference. 305
Notice 305
Notice of an Adjourned Meeting 306
Agenda of the Meeting 306
Consideration of any other item of business 306
Frequency of Meeting 306
Quorum 307
Quorum for the Meeting of the Non-Corporate Entity 307
Disclosure of interest 307
Attendance at the Meeting 307
Attendance 307
Leave of Absence 308
Chairman 308
Adjournment of Meeting 308
Adjournment of the Meeting for want of quorum 308
Adjournment of the Meeting otherwise than for want of quorum 308
Passing of Resolution by Circulation 309
Authority 309
Procedure 309
Approval 309
Recording 309
Modification or Cancellation of Resolutions/Decisions 309
Minutes of the Meeting 309
Recording of Minutes 309
Maintenance of Minutes 310
Signing of Minutes 310
Inspection of Minutes 310
Preservation of Minutes 310
Specimen Notice for Meetings of Governing Council 310
Standard List of Agenda Item 311
Specimen Attendance Register of Members 311
Specimen Minutes Book of Non-corporate Entity Meeting 312
Lesson Round-Up 313
Test Yourself 314

LESSON 14
FINANCIAL AND NON-FINANCIAL REPORTING OF DIFFERENT NON-
CORPORATE ENTITIES
Introduction 316
Non-financial reporting by a Partnership Firm under the Partnership 316
Act, 1932
Application for Registration (Section 58) 316
Recording of Alterations in Firm-Name, Nature of Business and 316
Principal Place of Business
Noting of Closing and Opening of Branches 316
Noting of Changes in Names and Addresses of Partners 317
Noting of Changes in Names and Addresses of Partners 317
Recording of changes in and Dissolution of a firm 317
Mode of Giving Public Notice 317
Power to Make Rules 317
Reporting obligations of Society under the Societies Registration Act, 318
1860
Charitable or Public Benefit Status 318
Compliance under the FCRA 319
Public Charitable Trusts 320
Permissible Purposes 320
Reporting Obligations 321
Financial Reporting of Non-Corporate Entities & Applicability of 321
Accounting Standards
Applicability of Accounting Standards 322
ICAI-Technical Guide on Financial Statements of Non-Corporate 323
Entities
Lesson Round-Up 323
Test Yourself 324
References 324

LESSON 15
FOREIGN FUNDING TO NON-CORPORATE ENTITIES
Introduction 326
Registration and Prior Permission to accept Foreign Contribution 326
Eligibility Criteria for Grant of Prior Permission 327
Conditions to be Met for The Grant of Registration and Prior 328
Permission
Who cannot receive foreign contribution? 329
Application for Registration 329
Filing of Annual Returns 330
Renewal of Registration 331
For seeking FCRA services [Registration, Prior Permission and 331
Renewal)
Advisory for NGOs Accepting Foreign Contribution 332
Charter For Associations Who Have Been Granted Prior Permission or 332
Registration Under FCRA
Illustrative List of Activities Permitted to Be Carried Out by Associations 335
Having Different Nature
Lesson Round-Up 337
Test Yourself 338

LESSON 16
LOCAL SELF GOVERNANCE
Local Self Government 340
Model Governance Code for Meetings of the Gram Panchayats 341
Introduction 341
Definitions 342
Convening A Meeting 342
Frequency of Meeting 345
Quorum 345
Attendance of the Meeting 346
Reading of Agenda at the Meeting 347
Minutes of the Meeting 347
Functions of the Secretary 348
Notice for Meeting of Gram Panchayat 349
Standard List of Agenda Item 349
Attendance Register of Members 350
Minutes Book of Gram Panchayat Meeting 351
Governance of Municipalities 352
Lesson Round-Up 353
Test Yourself 354
TEST PAPER 355