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Introduction To CSR - , & of CSR 2. Related To CSR in India (Sec 135) 3. CSR? 4. of CSR 5. CSR by Companies in India
Introduction To CSR - , & of CSR 2. Related To CSR in India (Sec 135) 3. CSR? 4. of CSR 5. CSR by Companies in India
3. Why
CSR?
4. Life Cycle of CSR
II. The CSR projects or programs or activities undertaken in India only shall amount to CSR expenditure.
CSR Committee
III. CSR Committee shall consist of 3 or more Directors, with at least 1 Independent Director.
IV. CSR committee of a private company having only two directors can have only two members
III. The Board's report is required to disclose the composition of the CSR Committee
CSR Policy
The policy shall indicate the activities to be undertaken by the company as specified in Schedule VII;
The CSR Committee shall recommend the amount of expenditure to be incurred on the activities referred in CSR
Policy
The CSR Policy of the company shall be monitored by CSR committee from time to time.
Contents of the policy to be disclosed in the Board’s Report and to be displayed on the company web site
“ Spending 2% on CSR is a lot, especially for the companies that are trying to
scale up in these difficult times. It must not be imposed.”
Companies face the same challenges they did in implementing CSR in year one.
Approach
3. CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor
and ensure
their adherence to law, ethical standards, and international norms.
2.Business would embrace responsibility for the impact of their activities on the environment, consumers,
employees, communities, stakeholders and all other members of the public sphere.
3. Furthermore, business would proactively promote the public interest by encouraging community
growth and
development, and voluntarily eliminating practices that harm the public sphere, regardless of legality.
General Idea
CSR is the deliberate inclusion of public interest into corporate decision making, and the honoring of People and
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Profit.
3.2 Why CSR is aggressively needed today?
1. Changing social expectations: Consumers and society in general expect more from the companies whose
products they buy.
2. Increasing affluence: This is true within developed nations, but also in comparison to developing nations.
Affluent consumers can afford to pick and choose the products they buy.
3.Globalization: Growing influence of the media sees any mistakes by companies brought immediately to the
attention of the public.
2. Risk management:
Managing risk is a central part of many corporate strategies. Reputation as take decades to build up can be ruined in hours
through incident such as corruption scandals or environmental accident.
These can draw unwanted attention from regulators, courts, governments & media. Building a genuine culture of doing the
right thing within a corporation can offset these risk.
3. Brand differentiation:
In crowded marketplaces, companies striving for a unique selling proposition. That can separate them from the
competition
in the minds of consumers.
CSR can play role in building customer loyalty based on distinctive ethical values.
4. License to operate:
Corporation are keen to avoid interference in their business through taxation.
By taking substantive voluntary steps, they can pursuit governments that they are taking issues such as health & safety,
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diversity, or the environment seriously as good MIMcitizen
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for positive impact on the environment.
4.1 CSR Life Cycle
8. Reporting on CSR
90% of the companies surveyed reported that either their senior management, such as the CEO, CFO,
COO or the board of directors, were the key drivers of the CSR policy.
More than 50% of the companies reported that their board of directors had been taking an active
interest
in CSR post the enactment of the CSR law.
Only a small proportion of companies consulted intermediaries (27%) or social organisations such as
NGOs (16%) when formulating their policies.
Here, the needs of the community or end-beneficiaries are central to all approaches, strategic CSR,
sustainability, and shared value encourage expanding the scope to other stakeholders such as employees,
vendors, suppliers, etc.
Some Stats:
In fact, almost 60% of them said that engaging communities is one of the main determinants of their
strategies.
Almost 75% said they followed a process for assessing the needs of the communities, through
internal
teams or by NGO partners, and small proportion also used external agencies.
Some tools and resources for assessing NGO credibility and performance
Malcolm Baldrige Model for not-for-profit organisations
MANGO Framework for financial and accounting standards
MCKINSEY OCAT Framework―a free online tool that helps non-profits assess their operational capacity and identify strengths and areas for improvement
• Customised Approach - Here, companies proactively worked with their implementation partners to create CSR
programmes , suited to their needs and locations.
A. Signature programmes
B. Location-specific programmes
The second approach consisted of supporting existing programmes run by NGOs with a view to replicate
them
and/or scale them up.
Or by Companies that did not have an immediate location preference or a clear beneficiary group, such as
banking, financial services, insurance or IT companies, or companies that were new to the CSR sector and
wanted to comply with the law.
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4.2.7 Monitoring and Evaluating Impact
As companies spend more on social development projects, there has been a unanimous demand for measuring
their effectiveness and impact.
While some companies and NGOs were content with counting the number of people, villages, and schools as the
impact of their programmes, others were keen on measuring the changes in the quality of lives of people
covered by them.
B. Social Return on Investment (SROI) is an analytic tool for measuring and accounting for a much broader
concept of value, taking into account social, economic, and environmental factors.
While the law has mandated some level of reporting on CSR, it is limited to the spending and the reason for
under-spending, if relevant. It does not require a lot of details on spend per sector, partners involved, nature of
activities undertaken, and so on.
Why Important?
It is absolutely critical that corporate India publishes detailed information on CSR regularly to ensure that this
data can be used to track progress, understand trends, establish benchmarks for performance in CSR, and aid
evidence-based decision making within the CSR space.
.
Health
1.Lifeline Express worlds first hospital on rails catering to inaccessible rural area of Bihar, Jharkhand, Odisha,
Chhatisgarh, West Bengal & Tamil Nadu
2.Maternal and New born Survival Initiative
3.Healthcare Services through Camps
4.Training Health Workers
5.Initiatives on HIV/ AIDS Awareness
6.Cleft Lip Treatment (http://www.tatasteelindia.com/corporate-citizen/health/curative-interventions.asp)
7.Eye Care Services
Education:
1. (In 2011-12, Deepika Kumari and Jayanta Talukdar, cadets of the Tata Archery Academy were selected to represent India at the
London 2012 Olympics. Academy coach Purnima Mahato was nominated as the coach of the Indian Archery Team.)
2. In FY-13, a total of 60 sports events (Football, Archery, Athletics, Cross Country Race, Cycling, and Volleyball) were organised engaging
nearly 23,000 youth across the Company’s operational areas
3. Premlata Agrawal, at the age of 48 years, became the first woman mountaineer - and one of the oldest internationally - to conquer all
Seven Summits in 2013.
Goodness is the only investment that never fails – Henry David Thoreau,
American writer.
Thank You
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