PROF.

PURNIMA VENKAT

CORPORATE SOCIAL
RESPONSIBILITY
 HISTORY OF CSR – INDIA & GLOBAL
Sr. no Time period Economic currents State role (India) Corporate CSR
1 1800-1900s Industrialization – Adam Colonial Extraction Dynastic Charity
Smith & Marx
2 1914-1947 World Wars, Human Rights’ Trade barrier for new Support freedom struggle
Violations, Eco-system Industries
degradation, Wars of Colonial exploitation
Independence

3 1947-1960 State role as protectors – Welfare State established, Support new state; launch
LoN, UN Five Year Plans new rural initiatives
4 1961-1990 Focus still on charity not License raj Corporate trusts
RBA
5 1991-2013 Global markets & Liberalization, Shrinking in Family trust, Public- Private
Sustainability/ Climate production; expanding in partnership, NGO,
Change social provision Sponsorship
6 2013- present SDGs Globalization, Need to Introduction of mandatory
manage inequality; new CSR- 2%
reforms to liberalize further
 • INDUSTRIALIZATION • CORPORATE STATES
• FREE MARKETS • GLOBAL WARMING
• CAPITALISM • RESOURCE
• CHARITY – HIDDEN PROTECTION
TERMS TO POPULATIONS • CLIMATE CHANGE
BE •
•
SOCIALISM
STATE RESPONSIBILITY
• HUMAN CAPITAL
• STAKEHOLDERS vs
CONSIDER • HUMAN RIGHTS’ SHAREHOLDERS
• 3BL
ED •
VIOLATIONS
WORLD WARS • SUSTAINABILITY
• CORPORATE
RESPONSBILITY
TECHNICALITIES - CSR

CSR in India – 2% of
previous 3 years’ net Net worth is 500 cr.
profit if* –

Turnover is 1000 cr. Net Profit is 5 cr.

 CSR committee
Three or more directors with at least one independent
director.
2. CSR policy
Activity/ Programme
FUTURE OF 3. Spend 2%

CSR IN Of average net profit of last three years

4. Disclosure
INDIA Annual report and on website
New amendments (1st Aug, 2019)- Fine+
imprisonment
Fines for both the company and defaulting officers ranging
from Rs 50,000 to Rs 25 lakh and Officers also liable for
imprisonment of up to three years, as per the provisions in
the Companies Amendment Bill, 2019
 Activities must be in project or programme mode

Must be based on CSR policy & Schedule VII of Companies

Act

Preferably in local region of operation

CSR
MANDATE May undertake activities through a non-profit of
reputation or own foundation

IN INDIA Must have strong monitoring and reporting system

May invest, an amount not exceeding 5% of total CSR

expenditure on capacity building of CSR personnel

Salaries to regular CSR staff & volunteers can be included

in CSR expenditure
 Expenses on activities required for any
compliance
Activities benefiting only the
EXCLUSIO employees of the company & their
family
NS FROM
Expenses on activities in pursuance of
CSR normal course of business

On- off events such as advertisements/

awards/ sponsorship
 Source: https://life11.org/2014/03/24/corporate-social-
responsibility-in-india-transition-from-moral-imperative-to-
mandatory-expenditure/
 ACCENTURE – NARAYANA MAHINDRA PRIDE
INTERESTI MANPOWER
INVESTMENT
HRUDAYALAYA –
RETHINKING COLLECTIVE
GOOD – SOCIAL
SCHOOLS & NANHI KALI
PROJECTS

NG ENTERPRISE

EXAMPLES

ITC – E-CHOUPAL INDIVIDUAL DONORS

PROGRAM SUCH AS SUDHA
MURTHY, RATAN TATA &
AZIM PREMJI
 Johnson & Johnson - Leveraging the power of
the wind to providing safe water to
communities around the world, focus on
clean energy business (35%)

GLOBAL Google - Committed over $1 billion to

CSR renewable energy projects and enable other
businesses to reduce their environmental
INITIATIVE impact through services such as Gmail.

S Pfizer - Reduction in the price of their Pevenar

13 vaccines (for pneumonia, ear and blood
infections) for those in need and in situations
such as refugees and emergency settings
A New Model
for CSR Measurement
OpportunityDefining organizational
assessment
Governance –
– Impact assessments
purpose
in sustainability
Citizen
Creating levers for change engagement
and stakeholder
value– Capacity building

Source: https://ssir.org/articles/entry/a_new_model_for_csr
ADDITIONA • https://www.india-briefing.com/news/corporat
e-social-responsibility-india-5511.html/
L READING • https://digitalmarketinginstitute.com/en-us/blo
g/corporate-16-brands-doing-corporate-social-r
esponsibility-successfully