Professional Documents
Culture Documents
CSR Initiative in Asian Paints 6
CSR Initiative in Asian Paints 6
2021-2023
SUBMITTED TO:
1
DECLARATION BY THE CANDIDATE
This is to certify project report entitled “CSR INITIATIVE IN ASIAN PAINTS” which is submitted by me
in partial fulfillment of the requirement for the award of Master of Management Studies, (University of
Mumbai) Dr. V.N. Bedekar Institute of Management Studies, comprises of my original work and due
acknowledgment has been made in the text to all other material used.
Wherever references have been made to intellectual properties of any individual / Institution / Government /
Private / Public Bodies / Universities, research paper, text books, reference books, research monographs,
archives of newspapers, corporate, individuals, business / Government and any other source of intellectual
properties viz., speeches, quotations, conference proceedings, extracts from the website, working paper, seminal
work et al, they have been clearly indicated, duly acknowledged and included in the Bibliography.
____________________________________
2
CERTIFICATE BY THE GUIDE
This is to certify that project report entitled “CSR INITIATIVE IN ASIAN PAINTS” which is submitted
by Mr Pranay Kamble in partial fulfillment of the requirement for the award of Master of Management
Studies,(University of Mumbai) Dr. V.N. Bedekar Institute of Management Studies, is a record of the
candidate's own work carried out by him under my guidance. The matter embodied in this report is original
and due acknowledgment has been made in the text to all other material used.
Authorized Signatory:
Date:
3
INDEX
Sr no Perticulars Page No
1 Introduction to Study
1.1 Introdution
1.2 Objective of the study
1.3 Research methodology
1.4 Scope of the study
1.5 Limitation of the study
2 Literature review
4
CHAPTER – 1
1.1 INTRODUCTION
Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially
accountable to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called
corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society,
including economic, social, and environmental.
To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance
society and the environment, instead of contributing negatively to them.
Corporate social responsibility is a broad concept that can take many forms depending on the company and
industry. Through CSR programs, philanthropy, and volunteer efforts, businesses can benefit society while
boosting their brands.
As important as CSR is for the community, it is equally valuable for a company. CSR activities can help forge
a stronger bond between employees and corporations; boost morale; and help both employees and employers
feel more connected with the world around them.
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. The inclusion of CSR is an attempt by
the government to engage the businesses with the national development agenda. 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 CSR activities
in India should not be undertaken in the normal course of business and must be with respect to any of the
activities mentioned in Schedule VII of the act.
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. The details of the same are
highlighted in the act.
5
The Indian companies in the last two years have invested majorly in education & skill development, healthcare
& sanitation, rural development projects and environment after being mandated to allocate a portion of their
profits towards community development.
Asian paints is a global leader in next-generation digital services and consulting. We enable clients in 46
countries to navigate their digital transformation.
With over three decades of experience in managing the systems and workings of global enterprises, we expertly
steer our clients through their digital journey. We do it by enabling the enterprise with an AI-powered core that
helps prioritize the execution of change. We also empower the business with agile digital at scale to deliver
unprecedented levels of performance and customer delight. Our always-on learning agenda drives their
continuous improvement through building and transferring digital skills, expertise, and ideas from our
innovation ecosystem.
Asian Paints Limited has been collaborating with various stakeholders like NGOs, district administrations, civil societies
across India to reach out to affected communities and help them to overcome on-ground challenges. From providing testing
kits, ration kits to essential protective materials, we have till date covered around 15000 families and 38000 individuals
through our initiatives. We have been working for many years through CSR in the sphere of health and hygiene and at times of
national health emergency have teamed up with our existing partners to deliver quick relief. We have focused on providing
relief to truckers, migrant workers and underserved community members by providing them ration kits to sustain themselves.
Truck drivers have been facing tremendous hardship because of COVID 19, with supply chain disruptions many have been
stranded long way from their home with no support. We distributed around 790 ration kits to truck drivers.
Our employees have been at the forefront along with the support of our NGO partners, district administrations to run the
distribution to stranded truckers, migrant workers, frontline and healthcare workers. We were able to overcome challenges
such as last-mile delivery of relief materials through local contacts of our employees.
The study is based on proper methodology which comprises wide discussion with the selected retailers,
industrialists, economists and academicians.
6
The study is based on the secondary data. The main objectives of the study are:
1. To study and understand the CSR initiatives being taken by ASIAN PAINTS for rural development.
2. To assess the impacts of CSR actions on socioeconomic development of rural population in India.
3. To study the concept of CSR
4. To review the CSR initiatives in Indian rural sector
1.3.1 Research Type: - A research method is a proper plan for conducting research.
In view of the objects of the study listed above an exploratory research design has been adopted. Exploratory
Research is one which is largely interprets and already available information and it lays particular emphasis on
analysis and interpretation of the existing and available information.
Data collection is one of the most important aspects of research. For the success of any project accurate data is
very important and necessary. The information collected through research methodology must be accurate and
relevant.
Primary Data: Data collected by a researcher is known as primary data. It is collected by a person for his own
use obtained from findings. This is considered as first-hand information. The data is also collected by internal
communication with the employees and other internal aspects of the organization.
Secondary Data: Secondary data means data that are already available i.e., they refer to data which has already
been collected and analysed by someone else. Secondary data may either be published data or unpublished data.
7
Wikipedia.com Investopedia.com
csrindia.com
1.3.3 Instruments
Magazines, Journals, Case Studies, News Articles etc.
The scope of the project is to Study of CSR linkage with Profitability of the Company in rural area.
Helps to understand the effect of carrying out CSR activities on Financial Sustainability of the company.
3. It will help to understand and evaluate the impact of CSR activities carried out by large organizations on
the citizens of country as well as on Indian Economy.
8
CHAPTER 2
LITERATURE REVIEW
This part provides a review of some notable, theoretical and empirical research works done by various
institutions and authors in evaluating the financial performance.
• Aarzoo Katyal
Corporate social responsibility (CSR) is a subject which has gained concern after many multinational
corporations formed the term stakeholders, meaning those on whom organization activities have an impact.
Firms are increasingly monitoring and evaluating outcomes that are not conventional financial measures
as a means to ensure positive public relations and strengthen stakeholders trust. This paper is an attempt
to highlight the fundamentals of CSR and specifically discuss a case of Asian Paints Ltd. With regard to
CSR compliances, Asian Paints Ltd. aims to be a forerunner of inspiring décor to actively empower
customers to create their dream home by painting it in different shades. Asian Paints, included in the list
of India’s super 50 companies by Forbes India continuous to be Asia’s 3rd largest paint firm. In country
like India, where there exist socio economic disparity and wide income gap among sections of people there
is a dire need that these giant sized corporations discharge their ethical duties towards country so as Asian
Paints
9
emerging as a new field in the management research. In India, many firms have taken the initiatives of
CSR practices which have met with varying needs of the society. The present study has made an attempt
to
understand the status and progress and initiatives made by large firms of India in context to CSR policy
framing and implementation. Data has been collected from the official websites of the firms, in-person
interviews and through structured questionnaire. The CSR initiatives in context to health, education and
environment sector to be rated by the interviewee were identified from the literature. Based on the
information and discussions mentioned a matrix of various policy factors has been prepared. All initiatives
factors have been rated on the scale of 1 to 5. Results of the study depicts that IT and Auto industry is more
going for taking up CSR initiatives while FMCG sector has focused yet not too much into the social
responsibility initiatives. Although India has entered or taken a transformational change by involving into
new CSR initiatives, but still a lot has to be done in this area.
Shreshthi Mehta
SAGE Business Cases, 2021
Asian Paints, a multinational Indian company that manufactures paint, has established Colour Academy,
an institute that trains in home repair and painting. By training individuals, the company wants to create a
large pool of house painters who would then increase the sale of paint. The program is also a corporate
social responsibility strategy to help people in the labor market develop skills. In India, the painter job was
stereotyped as only suitable for men. Asian Paints seeks to change gender stereotypes, engage women in
their value chain, grow
10
SAGE Business Cases, 2021
Asian Paints, a multinational Indian company that manufactures paint, has established Colour Academy, an
institute that trains in home repair and painting. By training individuals, the company wants to create a
large pool of house painters who would then increase the sale of paint. The program is also a corporate
social responsibility strategy to help people in the labor market develop skills. In India, the painter job was
stereotyped as only suitable for men. Asian Paints seeks to change gender stereotypes, engage women in
their value chain, grow …
Satya Ranjan Doley Vol. 9 No. 1 January-June 2019 9 (1), 37, 2019
CSR relates to the activities undertaken by the businessmen continuously which improves the quality of
life of not only the employees of the companies and their families but also the people in the society at
large and ultimately contribute to the economic development. The objective of the present paper is to
study the amount of spending on corporate social responsibility activities by the five manufacturing
companies in India. The present study is based on secondary sources from annual report of the five
companies for the year from 201415 to 2017-18. It has used percentage, descriptive statistics viz. mean,
standard deviation, coefficient of variation and spearman correlationcoefficient to analyze the data for
yielding the desired result of the study. It is observed that there is high correlation between prescribed
amount and spending amount on CSR initiatives in case of Hindustan Unilever Ltd, Bombay Dyeing
Ltd, Apollo Tyre Ltd and Asian Paint Ltd excepting for JSW Steel Ltd. The null hypothesis of Hindustan
Unilever Ltd and Apollo tyre
Ltd are declined for being nonstatistical significance and Bombay Dyeing Ltd, JSW Steel Ltd and
Asian Paint are accepted on the statistical significance basis
• Sarita Moharana (2013) shows Corporate Social Responsibility is the mechanism through which the
corporate organizations have executed their philanthropic visions for social welfare. It is a powerful way
of making sustainable competitive profit and achieving lasting values for stakeholder as well as
shareholder. “Corporate Social Responsibility is very popular in financial sector, which the financial crisis
did not damage as perceptible as in other countries of developed economies (Singer, 2009)”. The process
of Globalization creates competition among financial organizations to perform according to the
internationally compatible trade practices. So this instigated them to divert their available resources to do
11
more social activities. Nowadays, many nationalized banks in India have created their individual brand
image in the field of Corporate Social Responsibility (CSR) by taking various social initiatives in the era
of social welfare and community development. The catalytic contributions made by nationalized banks for
economic growth in India have created their separate entities towards financial growth. The main objective
of this study is to analyse the CSR activities carried out by selected nationalized banks of India. An attempt
has been made to analyse the existing CSR practices of five nationalized banks i.e., Allahabad Bank,
Andhra Bank, Bank of Baroda, State Bank of India, and Uco Bank. It has been found that the selected
banks are directly engaged in CSR activities mostly in the area of Rural Development, Education,
Community Welfare, Women and Children. The analysis shows that, these banks are making efforts for
the implementation of CSR, but are restricted within certain fields. There is a need for better CSR activities
by the banks, which is possible by adding more and more social development issues link with corporate
sector.
• Nanjunda (2015) shows Corporate Social Responsibility (CSR) has much bigger implications for
inclusive development of the any country. It reduces dependency on the government for social expenditure
and helps in speedy inclusive growth. The scale of CSR emerged significantly in the last decade in India.
Since business houses required doing business in the society it would be an obligation on their part to share
a small portion of their profit for the betterment of society. To relate fundamental business philosophy to
make CSR sharper, smarter, and focused is what really matters and is the core part of any business in the
21st century. However, critiques are emerging on the recent Government bill on CSR which makes
mandatory on the part of the companies to spend a small portion of their profit for the social causes. Many
companies have invested noted share of profits in various social development sectors. Also, there is
research evidence to show that CSR work of the companies have reached where government could not
reach so for. However, there are some reports showing most of the companies have not even have CSR
policies yet. All though various Indian corporate involved in CSR activities; it is not enough when contrast
to their actual financial strength. This paper gives a solid background for the discussion about the possible
role of CSR with respect to Social Inclusion.
• Sharma et al (1977:14)20 are convinced that Rural Development as a concept and a reality has suffered
intellectual importations, heavily biased by philosophical-methodological assumptions quite unrelated to
the actual configuration of problem-situation. Over the years, it has created ambivalence and equivocation
among those who regard rural reconstruction as a faith and a mission to the soil. It would be neither
charitable nor compatible to blame wholly the lack of policy emphasis or even its clear articulation to
account for the inadequate pace of rural development but the very nature of the process is extremely
12
complex, requiring multidimensional approach and interdisciplinary knowledge. The effort also suffered
owing both to paucity of resources and lack of commitment, not altogether unexpected in nation-building
activities of developing countries having traditional societies.
• Sinha (1986:823)24 in an official paper regarding IRDP, opines that things have gone wrong at a multitude
of levels. Firstly, the DRDA officials charged with plan formulation have neither the necessary skills nor
the planning experience. Secondly, the pressure for achieving quantitative targets, the related malpractices
and the consequent „policing‟ role thrust upon the DRDA leave little time for such
„theoretical‟ exercises as planning. Thirdly, detailed directives issued by the Centre and by State
governments have, in practice, left little room for maneuver on the basis of local conditions.
• Shekhar (1987:4)26 a journalist states that an evaluation study of the Integrated Rural Development
Programme (IRDP) in the district of Hamirpur, H.P. has revealed that 49 per cent of the families covered
under the programme have crossed the poverty line. The percentage of the scheduled castes families which
have crossed the poverty line is 49.1 and for others it is 48.92.
• Haque (1998)45 felt that historically, development of the non-farm sector follows automatically as a
consequence of the farm sector. This, however, has not happened in Punjab and Haryana where agriculture
has grown and continues to grow at a very high rate. The infrastructure is also highly developed. But no
such development of the non-farm sector has taken place. The reason for this as interpreted by Ramanujam
is that the cropping pattern in Punjab and Haryana are labour intensive. Because of this, labour is
withdrawn from the manufacturing sector resulting in a low growth of the nonfarm sector. He also
emphasized the need for developing composite skills in the rural labour. Another question raised was
regarding the quality of employment.
• In 1987, Khan and Atkinson conducted a study. It was a comparative study on the attitudes of social
responsibility management in India and Britain. The study shows that most India executives have initiated
CSR activities for companies because they feel that it is also company’s responsibilities that companies
should share their profits not only with their shareholders and employees but also the suppliers, society
and the state.
• A survey by TERI Europe and ORGMARG was conducted in 2001 in many cities. In India it was revealed
that more than 60% of people feel that the giant business families and corporations should take up these
13
issues and help in bridging the gap between the rich and the poor, reduction in the cases of violation human
rights, social problems to be resolved and increase in economic stability.
• Chauhan and Verma (2007) found that roads, pollution and power are the major concern for corporate
CSR activities in relation to the area in which they are least concern that is communication and education
• A survey conducted by CSM (2001), presented the various motives of the companies taking up various
parameters of CSR. The different dimensions of CSR, which companies value and are assessed upon are
national wealth, employment, environmental services social and health programs, including literacy.
• In a survey of CSR reporting in Asia Chapple and Moon (2005) found that nearly three quarters of
large companies in India have shown in their reports and brochures to have been following the policies and
practices of CSR.
• The EU Green Paper (2001) identifies two main dimensions of business implementation of CSR in an
internal dimension in-company and external dimension of stakeholder participation.
• Centre for Social Markets, conducted a study in 2003, in which it was found out that social
responsibility is to be seen as a significant business within the business irrespective of the firm size, age,
sector, location, primary object or status.
• Corporate Social Responsibility Survey, 2002, India presented jointly by the British Council, UNDP,
Confederation of Indian Industries and Price Water house Coopers have also highlighted the emerging
Indian participations in the CSR process. The findings of these surveys emphasized companies across India
reveal that philanthropy is the most significant driver of CSR, followed by image building, employee
morale and ethics respectively.
• Arora and Puranik (2004) reviewed contemporary CSR trends in India concluding that the corporate
sector in India benefitted immensely from liberalization and privatisation process, its transition from
philanthropic mindsets to CSR has been lagging behind its impressive financial growth.
14
CHAPTER 3
3.1 INTRODUCTION:
Undoubtedly, the vast majority of the poor in India, people living in villages and towns are in a state of neglect
and underdevelopment with the poor people. The problems of hunger, ignorance, poor health, high mortality
and illiteracy are more serious in rural areas than in urban areas. Not only due to lack of equipment resources
but also because of the defects in our planning investment process and model. India has the potential to meet
these challenges in rural areas. However, the government efforts may not be sufficient to provide basic services
to its citizens. It is increasingly recognized that progress and welfare of society is not only the responsibility of
government but many other stakeholders must be involved to achieve the development goal. The corporate
sector has a vital role to play in ensuring that the private investment flows in these rural areas that have been
left out of the development process till date and work for sustainable development of rural areas in general.
Companies are considered as part of society and therefore act in a socially responsible manner beyond economic
performance. As a result of this change in title from business of profit with social responsibility, many
companies are supporting the concept of CSR. It is essentially a concept whereby companies decide voluntarily
to contribute to society, making it better and cleaner in terms of environment (European Commission, 2001). In
general, CSR is considered "The commitment of businesses to contribute to sustainable development as well as
to economic development by working with employers, their families, local community and society as a whole
and improve their quality of life, so that it is good for business and for development. A widely cited definition
by the World Business Council for Sustainable Development the state of development that "Corporate Social
Responsibility is the continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of workers and their families and the local community and
society at large."
Therefore, the meaning of CSR is two folded. First, it presents an ethics an organization should practice for its
internal as well as external employees. On the other hand, it means that the responsibility of an organization for
the environment and the society in which it operates. CSR is considered as a mean or a medium by which
companies give something back to society. Its mission is to provide innovative solutions for the social and
environmental challenges. But the challenge for business and professional community is to identify priorities
and areas of CSR interventions that are important in the context of rural development sector.
Therefore, it is necessary to study and understand business, how companies are using their CSR initiatives or
what is the impact of social responsibility activities in the socioeconomic development of the rural population.
15
3.2 ABOUT CSR
CSR: definition, history, worldwide, issues and evolution of CSR. Discover everything there is to know about
CSR: from its definitions to the different contexts under which it is used.
Definitions Of CSR:
1. A Simple Definition Of CSR
What is CSR, or Corporate Social Responsibility? CSR encompasses all the practices put in place by companies
in order to uphold the principles of sustainable development. And what does it mean to be a sustainable or
responsible organization? It means that companies need to be economically viable, have a positive impact on
society, and respect and preserve the environment.
But other, more complex definitions may be given by some institutions.
2. European Union’s Official Definition Of CSR
The European Union, in an attempt to offer a framework for companies wishing to invest in sustainable
development, published in 2001 a Green Paper on Corporate Social Responsibility defining CSR as:
“The voluntary integration of companies’ social and ecological concerns into their business activities and their
relationships with their stakeholders. Being socially responsible means not only fully satisfying the applicable
legal obligations but also going beyond and investing ‘more’ in human capital, the environment, and stakeholder
relations.”
What is CSR?
Corporate Social Responsibility is a management concept whereby companies integrate social and
environmental concerns in their business operations and interactions with their stakeholders. CSR is generally
understood as being the way through which a company achieves a balance of economic, environmental and
social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of
shareholders and stakeholders. In this sense it is important to draw a distinction between CSR, which can be a
strategic business management concept, and charity, sponsorships or philanthropy. Even though the latter can
also make a valuable contribution to poverty reduction, will directly enhance the reputation of a company and
strengthen its brand, the concept of CSR clearly goes beyond that.
16
Company leaders should embrace the four types of corporate responsibility to not only benefit their business but
also for the sake of doing good for their communities. Corporate social responsibility typically falls into four
categories: environmental, human rights, philanthropic and economic.
Environmentally responsible companies need to analyze their processes and voluntarily do everything in their
power to reduce the environmental impact – especially when it comes to waste disposal and carbon footprints.
Global warming poses a real threat, and corporations bear a large part of the blame.
Consumers today see it as their responsibility to take actionable steps to address the problem.
Employees are the core of a company; many consumers maintain that it is on company leadership to make sure
they are treating their employees fairly.
In addition to their own employees, companies must ensure the companies they are doing business with are
taking human rights responsibility seriously, especially when it comes to child labour. Many companies are
beginning to end business relationships with companies that use child labour. Disney, Mattel and Walmart are
a few companies that came under intense scrutiny after it was revealed that the factory that produces their toys
uses child labour.
Companies that don't view the people in their communities as sources of revenue understand the role the
community plays in their success outside of the business. Consumers today want to know that companies care
about them outside of the money they spend.
Most corporations choose to donate money to causes that are meant to bring about social change. Some may
choose to attach their brand to the cause, while others may choose to remain entirely in the background and not
take any credit for the money or resources offered.
17
A good number of large corporations have in-house departments devoted to coordinating and managing the
company's philanthropic programs and efforts. These corporations will usually have a few causes that they attach
their brand to and commit their resources toward.
Economic responsibility for corporations also includes finding and implementing the most efficient practices
for minimizing wasted capital. This may come in the form of new manufacturing processes that improve
efficiency or investing in new equipment.
1) Environmental Responsibility
The concept of social responsibility can be broken down into a number of categories, each of which can be more
or less of a concern in different industries. Environmental responsibility refers to the ethical management of the
impacts that business operations have on water, air, earth, wild animals and nonrenewable natural resources.
Companies such as natural-resource refineries and chemical producers generally incur greater impacts on the
environment than other types of businesses, such as local retail shops, making this aspect of CSR especially
important in certain industries.
2) Economic Responsibility
A corporation can cause a wide range of external impacts on various stakeholder groups, sometimes with
economic consequences. The business models of large companies can impact local wage levels while
simultaneously impacting the local economy of a community. A corporation could unethically take advantage
of child labour in an Asian country while paying minimum wage in the U.S., for example, or it could pay a
living wage in the U.S. while sourcing from ethically certified international suppliers, either decimating or
strengthening the two local economies.
18
3) Public Health and Political Responsibility
Ethical behaviour in the area of public health and politics are equally important. Decisions made by corporations
selling food products, medicine, addictive recreational substances, and even entertainment can impact
consumers on a physical, emotional and psychological level, potential influencing deep cultural change. This
carries a weighty responsibility to market products that do not inherently cause harm to people who use them as
intended.
The ability of corporations to fund political campaigns gives them a great deal of power in the political process,
placing another huge ethical responsibility on their shoulders as they face decisions that seem to place social
responsibility and business sustainability at odds. When legislation proposing a ban on cigarette advertising was
introduced in the 20th century, for example, cigarette companies faced a choice to support or oppose a legal act
that could benefit society while threatening their own sustainability.
4) Business Sustainability
Sustainability is all about the ability to keep the doors open and continue to serve customers. Positive cash flow
is essential to sustainability, as it pays today's bills and expenses, but long-term investment and strategic
planning are just as important. More than simply ensuring cash on hand, business sustainability requires
entrepreneurs and managers to invest in production capacity, research and development, competitive labor, and
branding. Sustainability also requires thorough short-, medium- and long-term strategies for product
development, brand development and continued growth.
5) Correlation
Short-term corporate profits can sometimes grow through unethical and irresponsible means, but unscrupulous
business practices rarely build the foundation of long-term customer loyalty, legal compliance, and strong brand
reputation necessary for sustainability. Doing the right thing may cost a bit more than purely serving the bottom
line, but a commitment to social responsibility can build brand equity that stands the test of time. Balancing
profit considerations with ethical guidelines for impacting the environment, economies, public health and
politics can lead to win-win decisions that keep your company in the black while making positive contributions
in the world.
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.
19
Amid the COVID-19 (coronavirus) outbreak, the Ministry of Corporate Affairs has notified that companies’
expenditure to fight the pandemic will be considered valid under CSR activities. Funds may be spent on various
activities related to COVID-19 such as promotion of healthcare including preventive healthcare and sanitation,
and disaster management.
The amendment notified in the Companies Act, 2013 requires companies with a net worth of INR 5 billion
(US$70 million) or more, or an annual turnover of INR 10 billion (US$140 million) or more, or net profit of
INR 50 million (US$699,125) or more, to spend 2 percent of their average net profits of three years on CSR.
Prior to that, the CSR clause was voluntary for companies, though it was mandatory to disclose their CSR
spending to shareholders. CSR includes but is not limited to the following:
Businesses must note that the expenses towards CSR are not eligible for deduction in the computation of taxable
income. The government, however, is considering a re-evaluation of this provision, as well as other CSR
provisions recently introduced under the Companies (Amendment) Act, 2019 (“the Act”).
Until now, if a company was unable to fully spend its CSR funds in a given year, it could carry the amount
forward and spend it in the next fiscal, in addition to the money allotted for that year.
The CSR amendments introduced under the Act now require companies to deposit the unspent CSR funds into
a fund prescribed under Schedule VII of the Act within the end of the fiscal year. This amount must be utilized
within three years from the date of transfer, failing which the fund must be deposited in to one of the specified
funds.
The new law prescribes for a monetary penalty as well as imprisonment in case of non-compliance. The penalty
ranges from INR 50,000 (US$700) to INR 2.5 million (US$35,000) whereas the defaulting officer of the
company may be liable to imprisonment for up to three years, or a fine up to INR 500,000 (US $7,023), or both.
The government, however, is reviewing these rules after the industry objected to the strict provisions, especially
with respect to the jail terms for CSR violations, and is yet to operationalize them.
The methodology of CSR
20
CSR is the procedure for assessing an organization’s impact on society and evaluating their responsibilities. It
begins with an assessment of the following aspects of each business:
• Customers;
• Suppliers;
• Environment;
• Communities; Employees.
The most effective CSR plans ensure that while organizations comply with legislation, their investments also
respect the growth and development of marginalized communities and the environment. CSR should also be
sustainable – involving activities that an organization can uphold without negatively affecting their business
goals.
Organizations in India have been quite sensible in taking up CSR initiatives and integrating them into their
business processes.
It has become progressively projected in the Indian corporate setting because organizations have recognized that
besides growing their businesses, it is also important to shape responsible and supportable relationships with the
community at large.
Companies now have specific departments and teams that develop specific policies, strategies, and goals for
their CSR programs and set separate budgets to support them.
Most of the time, these programs are based on well-defined social beliefs or are carefully aligned with the
companies’ business domain.
Since the applicability of mandatory CSR provision in 2014, CSR spending by corporate India has increased
significantly. In 2018, companies spent 47 percent higher as compared to the amount in 2014-15, contributing
US$1 billion to CSR initiatives, according to a survey.
Listed companies in India spent INR 100 billion (US$1.4 billion) in various programs ranging from educational
programs, skill development, social welfare, healthcare, and environment conservation, while the Prime
Minister’s Relief Fund saw an increase of 139 percent in CSR contribution over last one year.
21
The education sector received the maximum funding (38 percent of the total) followed by hunger, poverty, and
healthcare (25 percent), environmental sustainability (12 percent), rural development (11 percent). Programs
such as technology incubators, sports, armed forces, reducing inequalities saw negligible spends.
Taking into account the recent amendments to CSR provisions, industry research estimates CSR compliance to
improve and range between 97 to 98 percent by FY 2019-20.
Introduction-
A Rural Area or countryside is a large geographical area with low population density that is located outside
towns and cities. Everything that is un-urban is considered as rural. Typical rural areas have small settlements.
Rural Development is the methodology which involves the Upgradation of the social, economic, and cultural
conditions of a village or small town.
Our economy is developing speedily, corporate sector is going globalized, liberalization is leading to tremendous
change in Industries, Information Technology & Service sector, but nobody is bothered to think about
accelerating the rural development and making it as fast as in these sectors.
Benefiting to 35% of the total population, already developed and above poverty line can’t be considered as an
important yardstick of development.
22
Problems Of Rural Areas
About 50-60% of rural population in India lives in primitive conditions. This abject state exists even after 70
years of independence. Thus Rural Development programs are critically required in the present condition also.
There are many hindrances in the rural development programs. Such as :
Till date many rural households are dependent on the primitive methods of cooking, living and farming.
Usage of primitive cook stoves, leads to deaths of more than 2 lakh people every year due to pollution.
54% of India’s population is below 25 years and most of them live in rural areas and are unemployed.
Rural people are ignored even by the policy makers and planners. Even if they make plans and policies
this aspect.
Poor understanding.
Poor awareness.
Division of land.
23
PROBLEMS RELATES INFRASTRUCTURAL
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs and lack of their implementation.
DDUGJY is a Government of India scheme designed to provide continuous power supply to rural India.
24
Funding by the Govt. – The government plans to invest ₹756 billion (US$12 billion) for rural
electrification under this scheme. The scheme replaces the Rajiv Gandhi Grameen Vidyutikaran Yojana
(RGGVY).
Aim – The DDUGJY scheme will enable to initiate much awaited reforms in the rural areas. It focuses
on feeder separation (rural households & agricultural) and strengthening of sub-transmission &
distribution infrastructure including metering at all levels in rural areas. This will help in providing round
the clock power to rural households and adequate power to agricultural consumers. The earlier scheme
for rural electrification viz. Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) has been subsumed
in the new scheme as its rural electrification component.
Role of CSR in DDUGJY– CSR can help the government in providing additional funds and proper
assistance in the implementation of the yojana as the deadline (May,2017) for this project was missed
and there are still 5150 villages yet to be electrified. CSR can also help in contributing to strengthen the
supply distribution network.
PMAGY is a rural development program launched by the Central government in India in the financial
year 2009–10 for the development of villages having a higher ratio (over 50%) of people belonging to
the scheduled castes through convergence of central and state schemes and allocating financial funding
on a per village basis.
Aim of the plan is to build an “Adarsh Gram” (Model village) which has adequate physical and
institutional infrastructure, in which minimum needs of all sections of the society are fully met. The
village which is progressive and dynamic and its residents live in harmony. All the facilities necessary
for dignified living should be available and the residents are enabled to utilize their potential to the
fullest.
Allocation of funds by Govt.- In the launching phase, the Centre had allocated a sum of ₹555.4 million
(US$8.7 million) to Assam, Bihar and Rajasthan. As a pilot project the program was implemented in
1,000 villages in Assam, Bihar, Himachal Pradesh, Rajasthan and Tamil Nadu with an allocation of ₹1
billion (US$16 million) with each village to get ₹1 million (US$16,000) per year.
In September 2011 the annual funding on the project was raised to ₹2 million (US$31,000) per village
and ₹1.94 billion (US$30 million) had been spent in these villages till then. In the 12 Five Year Plan the
government plans to cover 44,000 villages with an allocation of ₹5 million (US$78,000) to each village.
25
Role of CSR in PMAGY – Corporate houses can contribute in this by adopting a PMAGY villages as
per their financial ability and look after about every aspect of the infrastructural development in that
village.
3. Pradhan Mantri Gramin Awaas Yojana
PMGAY was previously Indira Awaas Yojana (IAY), is a social welfare flagship programme, created
by the Indian Government.
Aim is to provide housing for the rural poor in India. A similar scheme for urban poor was launched in
2015 as Housing for All by 2022. Indira Awaas Yojana was launched by Rajiv Gandhi, the then Prime
Minister of India, as one of the major flagship programs of the Ministry of Rural Development to
construct houses for BPL population in the villages.
Financial Assistance by Govt.- Under the scheme, financial assistance worth ₹70,000 (US$1,100) in
plain areas and ₹75,000 (US$1,200) in difficult areas (high land area) is provided for construction of
houses.
The houses are allotted in the name of the woman or jointly between husband and wife. The construction
of the houses is the sole responsibility of the beneficiary and engagement of contractors is strictly
prohibited.
Sanitary latrine and smokeless chullah are required to be constructed along with each IAY house for
which additional financial assistance is provided from “Total Sanitation Campaign” and “Rajiv Gandhi
Grameen Vidyutikaran Yojana” respectively. This scheme, operating since 1985, provides subsidies and
cash-assistance to people in villages to construct their houses, themselves.
Role of CSR in PMGAY- CSR can use its funds in Research & Development to create cost effective
and liveable houses adopting better infrastructural norms. Thus, including CSR in this Government
program decreases the burden on the Govt.
PMGSY is a nationwide plan in India to provide good all-weather road connectivity to unconnected
villages.
Funds – The PMGSY is under the authority of the Ministry of Rural Development and was begun
on 25 December 2000. It is fully funded by the central government. Recently it has been announced
that the project will be funded by both the central government (60%) and states (40%), after a
recommendation by state finance officials.
From 2004 to 2014, the average speed of road construction under the PMGSY was 98.5 kilometres
per day it’s a very good speed for Rural Development.
Aim was to provide roads to all villages
26
• With a population of 1000 persons and above by 2003.
• With a population of 500 persons and above by 2007.
• In hill states, tribal and desert area villages with a population of 500 persons and above by
2003.
• In hill states, tribal and desert area villages with a population of 250 persons and above by
2007.
Role of CSR in PMGSY-CSR can contribute in maintenance of the roads and providing assistance
to the welfare of the labour involved in the road construction.
Partnership of Corporate sector with Government in implementation of the rural development plans can be very
supporting in reducing the financial burden on the Government. Thus, CSR and Government initiatives can go
hand in hand in achieving the desired objective of ‘Holistic Rural Development’.
Corporate Social Responsibility (CSR) initiatives for India’s rural development are of immense significance and
contemporary relevance. With a large chunk of India’s total population, nearly 67% residing in rural villages of
the country, which lack most basic amenities and infrastructure, the CSR agenda and task for nation building
and development is mammoth.
Among the activities covered under the Schedule VII of Companies Act 2013, which may be included under the
companies CSR policies, rural development projects are enlisted as one major area of CSR programs. Efforts
for improving the lives of rural populace in terms of access to facilities like education, healthcare, sanitation,
livelihoods, water availability, agricultural improvement etc. are some key focus areas that require attention of
multi- stakeholders. The onus of scaling up the rural development interventions and initiatives at macro-level,
lies with the state undoubtedly.
However, the role of corporates in fulfilling their social responsibilities in the vicinity of their operational plants
and addressing to the needs of rural neighbouring communities is imminent, for being a good corporate citizen,
and acting beyond compliance. The value addition in rural development can be enhanced by corporates through
their resources and skills sharing, and employee volunteering in rural villages, through building partnerships
with implementing agencies/NGOs working in rural space.
27
Working with rural communities and partnering with them requires both, an indepth understanding of the
village-level issues and enabling solutions for the pertinent concerns, which can be facilitated through the rural
NGOs having relevant community connect and related competencies and strengths. Such organizations act as a
bridge between the communities and the stakeholders, helping the rural communities to empower themselves,
through their capacity building and facilitating them to get access to government rural programs/benefits.
Effective rural governance with active citizen participation is a vital tool in making the empowerment happen.
Together with varied stakeholders – government, NGOs and corporates through PPP (public, private and people)
partnerships, innovative, replicable and scalable models of CSR in rural development can be executed.
Through its work in rural development, since inception in 1999, S M Sehgal Foundation (SMSF), Gurugram, a
public, charitable trust registered in India, has been aiming to strengthen community-led development initiatives
to achieve positive social, economic, and environmental change across rural India. The Foundation envisions
every person across rural India empowered to lead a more secure, prosperous and dignified life.
With support from donors and partners, SMSF has worked along with the communities in rural India to address
the pressing challenges of water security, food security, and social justice. The core programs of the Foundation
encompassing water management, agriculture development and good rural governance are spread in various
villages of the six states where it is presently working in Haryana, Rajasthan, Bihar, Telangana, Andhra Pradesh
and Karnataka.
SMSF works with a range of multi-stakeholders – government, international organizations, NGOs and
corporates leveraging partners’ strengths for support to specific thematic projects and programs. Several rural
interventions have been done in many villages in the domains of integrated water management/rainwater
harvesting, safe drinking water, sanitation and water for schools, improving agriculture productivity and
livelihoods of small and marginal farmers, rural school renovations, community- led development for
empowering rural citizens and strengthening village institutions, life skills/digital literacy, awareness programs
through community radio broadcasts, etc., to name a few.
A commitment to rural development by empowering the rural masses, and led by its vision and mission, SMSF
is poised to scale to new heights, working together with partners in progress of rural India, and joining hands
with like-minded organizations having shared values and principles.
3.4 CHALLENGES
In today’s changing world, Corporate Social Responsibility (CSR) is a growing area of interest for academics,
practitioners and entrepreneurs, in terms of both theory and practice. Although the roots of CSR lie in activities
(such as donations, charity, relief work, etc.) of corporations, globally, the concept of CSR has evolved and now
28
encompasses the economic, legal, ethical, and discretionary responsibilities of organizations, business ethics
usually focuses on the moral judgments and behavior of individuals and groups within organizations. Generally
CSR means those activities taken by the business with the purpose of welfare of society. CSR is understood as
being the way through which corporate maintains equilibrium of economical, environment and social
imperatives. No doubts, India lives in it villages and country’s vast population is based on agriculture for living.
Agriculture covers almost one-fifth of the gross domestic product in India. The Government has planned several
programs pertaining to Rural Development in India to increase the growth of agriculture. Rural development
seeks to change the socio-economic structure of the rural community. As far as rural areas are concerned CSR
is considered very important. CSR in India, Indian companies are now expected to perform their stakeholder
responsibilities and societal obligations, along with their shareholder-wealth maximization goal. In India as in
the rest of the world there is a growing realization that business cannot succeed in a society which fails. An ideal
CSR has both ethical and philosophical dimensions, particularly in India where there exists a wide gap between
sections of people in terms of income and standards as well as socio-economic status. CSR is regarded as vehicle
through which companies give something back to the society.
The term CSR is very wide and complex and has different meanings. The EC defines CSR as “the responsibility
of enterprises for their impacts on society”. To completely meet their social responsibility, enterprises “should
have in place a process to integrate social, environmental, ethical human.
CHALLENGES OF CSR
The Government is applying thrust in rural India in number of fields which primarily includes literacy, health,
infrastructure etc to develop that particular area in a more inclusive way. But the real challenge arises when due
to one reason or the other this aim of government is not fully fulfilled.
Now when a corporate house sets up industrial hub in a particular area, a sense of social responsibility itself
develops towards the development of that area and its residents.
Major challenges in rural India mainly comprise of better education, pure drinking water, good health facilities,
and of strengthened road network in area. The CSR reform helps to eradicate problems in the area as well as to
take that area on path of development with the financial and social support of organizational base setup at that
location.
Today the investor and stakeholder also pose a question to the management of a corporate house to make sure
that the CSR initiative does not retard the profit of the organization as a whole. This pressure sometimes results
in negative way to the development of that particular area.
29
People have little knowledge about CSR activities so they don’t show enough interest in participation and
contribution towards it.
While Asian Paints Ltd. continues to expand its operations and align with its strategic goals, CSR strategy
of the company continues to effectively manage and reduce its environmental footprints. Being a paint
manufacturer, health and safety, products stewardship and environmental responsibility are other key areas
that are intrinsic to the company.
Introducing social responsibility in company's products and manufacturing sites “We view our
sustainability journey as a marathon; a journey of continuous improvement, wherein we work towards
bettering our own previous performance”
Asian Paints Ltd. has aligned to its commitment of making paint sustainable. ‘Green Assure’ is a commitment
of the company to develop and market green products. The benchmark of Green Assure is set on lines of GS-
11, the globally accepted standard for paint and coatings industry. Royale Aspira one of the company’s
advanced paint selected for GS- 11 certification is packed in containers made from combination of
and recycled polypropylene. Much before the government’s legislation in 2016 banning paints containing
lead concentration more than 90 ppm, the company had already started its journey to eliminate lead in its
30
products below the hazardous limits. The company also initiated Project NEW (natural resource
conservation; Energy and emissions reduction; waste reduction) at its six manufacturing locations focusing
on following theme -
• Water replenishment
31
Healthcare
andHygiene
(₹4.85crores)
Water
Management
Skill Development
(₹6.53crores)
(₹22.33 crores)
48%
Education (₹12.80
crores)
Amount in ₹ spent in each area for FY 2 ,Source: Asian Paints Ltd., Annual Report 2017-18
1. Education
In education the company aspires to improve and facilitate the literacy levels in various sections of the society
by not only limiting to developing infrastructure for educational centers but also conducting educational
programmes and livelihood enhancement projects. The company not only socializes the importance of
education among children and community leaders but also grants scholarship for higher education.
32
1.2 MAGIC BUS - from childhood to livelihood
In November 2015, Asian Paints entered in partnership with Magic bus, a national NGO that works towards
shaping the future of youth of the country. Magic Bus equips some of India’s poorest children and young
people with the skills and knowledge to grow up and to be successful, to move out of poverty and take control
of their future.
In FY 2014-15, the company extended support to over 15000 children through Magic Bus program in 7 cities
(Ankleshwar, Kasna, Patancheru, Sriperumbudur, Khandala, Rohtak and Mumbai) spread across six states
(Andhra Pradesh, Tamil Nadu, Maharashtra, Uttar Pradesh, Gujarat and Haryana). The company extended
infrastructural support to government schools at Garhi Bohar, Bohar, Garhi Majr and Janta Colony at Rohtak
under the Apex school initiative.
33
1.6 Project STEADY
This project was implemented by the company to provide career counselling, parent counselling and self-
defense classes for the girl child.
2 Skill Development
Asian paints Ltd. also works at enhancing employable skills and knowledge of workforce so as to enable the
youth to contribute to India’s economic growth. The company aims at building a talent pipeline that can be
fostered along its values. The company also provides great learning opportunities and career development
platforms to its employees. The organization taps talents from country’s best educational institutes and helps
the employees by nurturing a culture of commitment and development.
34
Paints Colour Academy and they are awarded NSDC certification. In the FY 2016-17, 340 women across the
country were trained and about 20,800 individuals were certified in 11 NSDC courses.
35
3.11 Mobile Medicare Units: Aarogya Initiative
Asian Paints Ltd. partnered with the NGO Help Age India to launch specialized MMU (Mobile Medicare
Units) and ambulances fully equipped with diagnostic tools to provide access to basic Healthcare facilities in
rural villages. These moving dispensaries are manned with qualified doctors, pharmacist and a social worker
diagnosing especially the senior citizens who suffer from age related ailments. Apart from the regular
healthcare services, special camps like diabetes screening and dengue awareness are also conducted. Eight
health camps were also conducted as a part of flood relief in Chennai, in the year 2015 providing treatment to
1,759 flood affected people. MMU’s were launched at Rohtak and Khandala in FY 2014-15 and now covers
all of the company’s plant locations across India.
36
3.15 Safar, healthcare for truck drivers
The programme ‘Safar’ aims at enhancing health awareness among truck drivers with focus on ergonomic
illness, AIDS and skin diseases among others. To spread awareness on hygienic living practices various
Nukkad Natak, games, movies, inter- personal communication sessions are conducted.
4 Water management
In a country like India, water scarcity continues to be a serious problem affecting the livelihoods, food security
and local socio-economic development. Asian Paints Ltd. being a paint manufacturing company is conscious
of scarcity of this precious resource and makes efforts to optimise water consumption. Company's approach
includes providing support and infrastructure at each stage of water conservation, preservation, water recharge
and waste water treatment.
37
4.13 Rooftop Rainwater Harvesting System
During the FY 2017-18, the company assisted in erecting 18 Rainwater Harvesting Structures with a recharge
potential of 13,000 KL per annum. Along with its NGO partner the company also desilted a pond near its
Rohtak plant. The Rainwater Harvesting Systems by the company help the communities near its plants to
consume rain water for irrigation and other uses.
38
3.6 ABOUT ASIAN PAINTS
Since their foundation in 1942, Asian Paints has come a long way to become India’s leading and
Asia’s fourth largest paint company, with a turnover of Rs. 158.5 billion. They operate in 19
countries and have 26 paint manufacturing facilities in the world, servicing consumers in over 65
countries. They have come a long way since their small beginnings in 1942. They were set up as a
partnership firm by four friends who were willing to take on the world's biggest, most famous paint
companies operating in India at that time. Over the course of 25 years, They became a corporate
force and India's leading paints company. Driven by their strong consumer-focus and innovative
spirit, they have been the market leader in paints since 1967. Today, they are double the size of any
other paint company in India. They manufacture a wide range of paints for decorative and industrial
use.v
Headquarter: Mumbai-Maharashtra
39
CHAPTER 4
Win new business, Increase customer retention. Develop and enhance relationships with customers, suppliers
and networks. Attract, retain and maintain a happy workforce and be an employer of choice. Save money on
energy and operating costs and managing risk. Differentiate yourself from your competitors. General innovation
and learning and enhance your influence. Improve your business reputation and standing. Provide access to
investment and funding opportunities.
CSR is a concept whereby companies decide voluntarily to contribute to a better society and a cleaner
environment. It is represented by the contributions undertaken by companies to society through its business
activities and its social investment. CSR has been making an increasingly prominent impact in the Indian social
system by supplementing development projects. But it is not a novel concept in India as its historical roots goes
till the Vedic age. Today Banking Sector growing larger and powerful than before. Various Non-government
organizations put pressure on Banks to act responsibly towards their stakeholders.
Thus pressure has given rise to the concept named Corporate Social Responsibility. CSR defined as “the
economic, legal, ethical, and philanthropic expectations placed on organizations by society at a given point in
40
time.” (Carrol and Buchholtz, 2000:35). Exactly what responsibility companies have towards society has been
discussed for some decades now. A fundamental model which could be argued to reflect the outcome of this
discussion is Carroll‟s (1991).
Economic Responsibilities: The first responsibility of the company towards society refers to running the
business as an economically healthy unit. It includes aspects such as return on investment for shareholders, fair
employee salaries, and quality products supplied to customers at fair prices; all required by the society. (Crane
&Matten, 2004)
Legal Responsibilities: Demands that companies act in accordance with existing legislation and regulatory
requirements. The legal framework consequentially fosters society‟s ethical view and all companies attempting
to be socially responsible are therefore required by society to follow the law. (Crane &Matten, 2004)
Ethical Responsibilities: It refers to corporation’s responsibilities which are not covered by legal or economical
requirements, but instead by what could be considered as right or fair in the eyes of society. Society therefore
expects corporations to act ethically towards their stakeholders. (Crane &Matten, 2004)
Philanthropic Responsibilities: This involves corporation’s willingness to enhance the quality of living for their
stakeholders (i.e. employees, local community, and society at large) through charitable donations and
organizational support. These corporate decisions are entirely voluntary, of less importance than the former three,
and (with regards to social responsibility) only seen as desired by society. (Crane &Matten, 2004)
A Rural Area or countryside is a large geographical area with low population density that is located outside
towns and cities. Everything that is un-urban is considered as rural. Typical rural areas have small settlements.
Rural Development is the methodology which involves the Upgradation of the social, economic, and cultural
conditions of a village or small town.
Our economy is developing speedily, corporate sector is going globalized, liberalization is leading to tremendous
change in Industries, Information Technology & Service sector, but nobody is bothered to think about
accelerating the rural development and making it as fast as in these sectors.
Benefiting to 35% of the total population, already developed and above poverty line can’t be considered as an
important yardstick of development.
41
Aims of Rural Development
About 50-60% of rural population in India lives in primitive conditions. This abject state exists even after 70
years of independence. Thus Rural Development programs are critically required in the present condition also.
There are many hindrances in the rural development programs. Such as :-
Privatization concept is useful for rural development but, government is not paying much attention to
this aspect.
42
• Small size of landholding.
• Division of land.
• Unwillingness to work and stay in rural areas.
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs and lack of their implementation.
43
Programs Initiated By Government Of India To Deal With These Problems: -
• DDUGJY is a Government of India scheme designed to provide continuous power supply to rural India.
It is one of the key initiatives of the NDA government 2014-2019.
• Funding by the Govt. – The government plans to invest ₹756 billion (US$12 billion) for rural
electrification under this scheme. The scheme replaces the Rajiv Gandhi Grameen Vidyutikaran Yojana
(RGGVY).
• Aim – The DDUGJY scheme will enable to initiate much awaited reforms in the rural areas. It focuses
on feeder separation (rural households & agricultural) and strengthening of sub-transmission &
distribution infrastructure including metering at all levels in rural areas. This will help in providing round
the clock power to rural households and adequate power to agricultural consumers. The earlier scheme
for rural electrification viz. Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) has been subsumed
in the new scheme as its rural electrification component.
Role of CSR in DDUGJY– CSR can help the government in providing additional funds and proper assistance
in the implementation of the yojana as the deadline (May,2017) for this project was missed and there are still
5150 villages yet to be electrified. CSR can also help in contributing to strengthen the supply distribution
network.
• PMAGY is a rural development program launched by the Central government in India in the financial
year 2009–10 for the development of villages having a higher ratio (over 50%) of people belonging to
the scheduled castes through convergence of central and state schemes and allocating financial funding
on a per village basis.
• Aim of the plan is to build an “Adarsh Gram” (Model village) which has adequate physical and
institutional infrastructure, in which minimum needs of all sections of the society are fully met. The
village which is progressive and dynamic and its residents live in harmony. All the facilities necessary
for dignified living should be available and the residents are enabled to utilize their potential to the fullest.
• Allocation of funds by Govt.- In the launching phase, the Centre had allocated a sum of ₹555.4 million
(US$8.7 million) to Assam, Bihar and Rajasthan. As a pilot project the program was implemented in
1,000 villages in Assam, Bihar, Himachal Pradesh, Rajasthan and Tamil Nadu with an allocation of ₹1
billion (US$16 million) with each village to get ₹1 million (US$16,000) per year.
44
In September 2011 the annual funding on the project was raised to ₹2 million (US$31,000) per village and ₹1.94
billion (US$30 million) had been spent in these villages till then. In the 12 Five Year Plan the government plans
to cover 44,000 villages with an allocation of ₹5 million (US$78,000) to each village.
Role of CSR in PMAGY – Corporate houses can contribute in this by adopting a PMAGY villages as per their
financial ability and look after about every aspect of the infrastructural development in that village.
• PMGAY was previously Indira Awaas Yojana (IAY), is a social welfare flagship programme, created by
the Indian Government.
• Aim is to provide housing for the rural poor in India. A similar scheme for urban poor was launched in
2015 as Housing for All by 2022. Indira Awaas Yojana was launched by Rajiv Gandhi, the then Prime
Minister of India, as one of the major flagship programs of the Ministry of Rural Development to
construct houses for BPL population in the villages.
• Financial Assistance by Govt.- Under the scheme, financial assistance worth ₹70,000 (US$1,100) in plain
areas and ₹75,000 (US$1,200) in difficult areas (high land area) is provided for construction of houses.
• The houses are allotted in the name of the woman or jointly between husband and wife. The construction
of the houses is the sole responsibility of the beneficiary and engagement of contractors is strictly
prohibited.
• Sanitary latrine and smokeless chullah are required to be constructed along with each IAY house for
which additional financial assistance is provided from “Total Sanitation Campaign” and “Rajiv Gandhi
Grameen Vidyutikaran Yojana” respectively. This scheme, operating since 1985, provides subsidies and
cash-assistance to people in villages to construct their houses, themselves.
Role of CSR in PMGAY- CSR can use its funds in Research & Development to create cost effective and liveable
houses adopting better infrastructural norms. Thus, including CSR in this Government program decreases the
burden on the Govt.
• PMGSY is a nationwide plan in India to provide good all-weather road connectivity to unconnected
villages.
• Funds – The PMGSY is under the authority of the Ministry of Rural Development and was begun on 25
December 2000. It is fully funded by the central government. Recently it has been announced that the
project will be funded by both the central government (60%) and states (40%), after a recommendation
by state finance officials.
45
• From 2004 to 2014, the average speed of road construction under the PMGSY was 98.5 kilometres per
day it’s a very good speed for Rural Development.
Role of CSR in PMGSY-CSR can contribute in maintenance of the roads and providing assistance to the welfare
of the labour involved in the road construction.
The Company has fully spent the required amount towards Corporate Social Responsibility (CSR) and there
are no unspent CSR amount for the year requiring a transfer to a Fund specified in Schedule VII to the
Companies Act or special account in compliance, the company informed in its Annual Report.
Its Corporate Social Responsibility (CSR) approach is designed to bring about the holistic development of
communities.
The company believes that CSR should not be a one-time engagement; rather, it has to bring about a social
transformation in the life of disadvantaged, vulnerable and marginalized stakeholders.
All CSR initiatives of Asian Paints are strategically designed and monitored for tangible progress and
achievement of targeted outcomes.
The Company’s manufacturing facilities engage in CSR initiatives and these projects primarily focus on health
& hygiene, enhancing vocational skills, water conservation and disaster management.
CSR in India
In India, Section 135 of the Companies Act, 2013 (‘Act’) mandates every company have a net worth of Rs. 500
crore or more, or a turnover of Rs. 1000 crore or more, or net profit of Rs. 5 crores or more during the
immediately preceding financial year to undertake Corporate Social Responsibility (CSR) activities.
46
CSR Spending for the last 6 years
Rs 47.84 Cr.
The Company has been engaged in focused initiatives aimed at uplifting the communities residing in the vicinity
of its facilities.
In line with the Company’s CSR philosophy, the Company undertook several initiatives during the year toward
building a sustainable CSR model.
The CSR initiatives of the Company were under the thrust area of health & hygiene, enhancing vocational skills,
water conservation and disaster management.
As a responsible corporate citizen, it has actively initiated projects or participated in projects that together
make the local lighthouse for the region which significantly improves the lives of the people where it operates
and is present.
“It is our constant endeavour to address critical social, environmental and economic needs of the communities
in the vicinity of our plants.”, the company’s annual report said.
“As a responsible, customer-centric organisation, we believe in giving back to society and bringing about
transformation in the lives of communities in the plant vicinity and people in the unorganized sector.”, it added.
The company runs dedicated training and upskilling courses for painters, carpenters, plumbers, and other
partners in the value chain.
It also contributes to inclusive development through initiatives in health & hygiene, water conservation, skill
development, and disascer management.
47
4.3 GRAPHICAL REPRESENTATION OF CSR ACTIVTIES
Totals= 284.69 Cr
Graph No : 1
Interpretation: After looking to the above trend of prescribed and Actual CSR, it can be said that on FY 201516
the actual CSR is little bit lower than Prescribed CSR, on FY 2016-17 Actual CSR drastically up as compare to
prescribed CSR, but from FY 2017-18 to FY 2019-20 Actual CSR amount are higher than the Prescribed CSR.
48
CSR Spending in 2020-21
At Asian Paints, the total amount transferred to the Unspent CSR Account as per Section 135(6) of the
Companies Act, 2013 was Rs. 14.78 Crores during the year 2020-21. Total CSR amount spent for the financial
year 2020-21 was Rs. 48.20 crores.
Total CSR obligation for the financial year was Rs. 62.95 Crores (2.1% of PAT), includes an amount of Rs.
14.78 crores earmarked for ongoing projects transferred to Unspent CSR Account in terms of Section 135(6) of
the Companies Act, 2013, for the Financial Year 2020-21, the company’s annual report said.
Unspent amounts pertaining to ongoing projects have been transferred to Separate CSR Unspent Bank A/c on
30th April, 2021. Excludes an amount of Rs. 14.78 crores earmarked for ongoing projects, out of which Rs.
5.28 crores are with related parties, the report said.
CSR Spending in 2019-20
Last year, an amount of Rs 74.64 crores, which was 2.8 % of PAT, was spent towards various CSR projects in
50 villages of Uttar Pradesh, Haryana, Gujarat, Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu.
CSR in India
In India, Section 135 of the Companies Act, 2013 (‘Act’) mandates every company having net worth of Rs.
500 crore or more, or turnover of Rs. 1000 crore or more, or net profit of Rs. 5 crore or more during the
immediately preceding financial year to undertake Corporate Social Responsibility (CSR) activities.
49
CSR Financial Details (INR Cr.)
Table No: 2
Year 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021-22
15 16 17 18 19 20 21
Actual CSR 19.01Cr 34.44Cr 47.84Cr 46.51Cr 52.70Cr 76.64Cr 48.19Cr 71.01CR
( Source : Secondar )
Interpretation –
From the above table no.2 the CSR financial details are showing that the 2014 to 2022 are in $crore . In the year
2014 actual CSR is 19.01cr and prescribed CSR is 29.01cr as compared the now 2021-22 the actual CSR is
increasing with 71.01cr and prescribed CSR is 70.77 .so the this asian paints csr is increasing
50
CHAPTER 5
5.1 FINDINGS
This chapter provides a conclusion, suggestions and findings on the Corporate Social Responsibility undertaken
by Asian paints and its overall impacts on society, environment, employees & company.
As business is an integral part of the social system it has to care for the varied needs of the society and
Asian paints is actually doing this by fulfilling the needs of the society. They are spending amount on
various CSR activities and the amount is also increasing year by year, and from the last 5 years the
Actual amount spend in CSR are higher than the prescribed amount for same .
Social involvement has created a better public image and goodwill for the company which has become
instrumental in attracting customers, efficient personnel and investors.
CSR of the company creates better image among stakeholders. Which helps company to attract more
customers.
There is a huge gap between the CSR budgeted amount and actual amount spend.
After looking to the above trend of prescribed and Actual CSR, it can be said that on FY 2015-16 the
actual CSR is little bit lower than Prescribed CSR, on FY 2016-17 Actual CSR drastically up as compare
to prescribed CSR, but from FY 2017-18 to FY 2019-20 Actual CSR amount are higher than the
Prescribed CSR.
From the above table no.2 the CSR financial details are showing that the 2014 to 2022 are in $crore . In
the year 2014 actual CSR is 19.01cr and prescribed CSR is 29.01cr as compared the now 2021-22 the
actual CSR is increasing with 71.01cr and prescribed CSR is 70.77 .so the this asian paints csr is
increasing
51
5.2 SUGGESTION :
On the basis of findings which are discussed earlier and the information gathered there are certainly suggested
are as follows:
The company must align the CSR goals with the national goals set up under the Millennium
Development Goals
Social audit should be conducted by an external agency to assess the CSR performance of the company.
A annual report on Corporate Social Responsibility should be prepared to highlight the company’s
commitment for sustainable community development.
The company should make sure that Actual CSR spent is as same as Budgeted CSR.
CSR programmes being implemented by Infosys companies should be based on the felt-need of the local
people so that their participation in the programme can be enhanced. Moreover, it is necessary to create
jobs and economic activity in rural community with a view to uplift the masses.
The company should have well trained CSR department with qualified and experienced professionals
for better planning, implementation and evaluation of CSR policies.
The company should have well trained CSR department with qualified and experienced professionals
for better planning, implementation and evaluation of CSR policies.
NGOs should be encouraged to act in collaboration for the CSR activities under different schemes and
projects as they play a crucial role in the upliftment of the masses.
52
5.3 CONCLUSION
Nowadays, business organizations across the world are responsive to the needs of the environment and the
society. There is a notable shift from accountability to shareholders to accountability to stakeholders for long
term success and development of the business. After the Company’s Act mandated CSR compliance by the
cooperations, the organizations started focusing on holistic development in the villages and communities
around their areas of operation. Asian Paints Ltd. also adopted varied strategies and undertook various
initiatives to enhance and improve life by contribution to communities residing in vicinity of its plant. CSR is
an area of continued improvement and action, the company remains steadfast in its efforts to provide better
access to basic amenities for life to the local communities. The company has also set 2020 as a year before
which it seeks to implement various environmental friendly practices at its manufacturing facilities. The
company has laid various road maps towards making its product greener and environment-friendly. The
company keeps on adding activities to enhance its CSR policy and to strengthen its performance but the efforts
put in by the company so far are commendable.
53
BIBILOGRAPHY
Carroll, A.B. (1983, July 15). Corporate social responsibility: Will industry respond to cut-backs in social program funding?
Vital Speeches of the Day 49, 604-608
• Kotler, Philip and Lee, Nancy. (2005) Corporate Social Responsibility: Doing the Most Good for Your Company and Your
Cause, John Wiley & Sons, Inc. Pub.
• Srivastava, Negi and Mishra, Corporate Social Responsibility: A Case Study of TATA Group. IOSR Journal of Business and
Management( IOSRJBM) ISSN:2278-487XVolume3, Issue 5 (Sep- Oct, 2012), PP17-27
http://www.wbcsd.org/DocRoot/hbdf19Txhmk3kDxBQDWW/CSRmeeting.pdf
https://www.asianpaints.com/more/about-us/corporate-citizenship.html
• https://www.asianpaints.com/more/about-us/corporate-information.html
• https://csrbox.org/India_Company_Asian-Paints-Ltd-Maharashtra_60
• http://indiacsr.in/asian-paints-spends-rs-34-44-cr-towards-csr-focus-on-skilldevelopment/
• https://www.asianpaints.com/more/sustainability.html\
54
Winter Internship Progress Report
55
Progress Report:
DR VN BRIMS/REC/PLC/IPR/16
56