PROJECT REPORT

ON

MANDATORY CORPORATE SOCIAL RESPONSIBILITY

A NEED FOR HEALTHY CHANGE OR A FLAWED APPROACH

SCHOLAR:

Diwakar Saini

Bikas Kumar

Vandna verma

INTRODUCTION

• What is corporate social

responsibility(CSR) ?

“CSR is a process with the aim to embrace

responsibility for companies action and

encourage a positive impact through its

activities on the environment, consumers,

employees, communities and stakeholder.

”

CSR Return

Social ImpactEngagement and Communications

Sustainable Business Practices

RESEARCH OBJECTIVE

• CSR Approaches in India

• CSR spe nding in terms of percentage of PAT

• CSR activities practiced by Indian corporations

• Who are the targeted beneficiaries

• projected CSR spending in year 2014 with mandatory CSR

policies

REVIEW OF LITREATURES.No AUTHOR YEAR TOPIC RESULT REFERENCE

1. Sharma 2013 Making CSR mandatory in India : A

flawed approach

It is the duty of states and leaved to their hand only journal of social

science &

humanity

2. Singh and

Cherian

2013 CSR in India : Potential to contribute

towards inclusive social development

companies are need some model to implement CSR www.ey.com

3. Kloppers 2013 Driving CSR through the companies

act: an overview of the role of social &

ethics committee

There is need for well designed system for carrying

out CSR activity

http://dx.doi.org

4. Singh &

Aggarwal

2013 CSR for social impact: approach to

measure social impact using CSR

impact index

The company should try to develop scalable of CSR

that can be extended across nation

www.ssrn.com

5. Paterizia 2013 Social performance enhances financial

performance: benefit from CSR

CSR brings sustainable development & increase

consumer confidence

www.ssrn.com

6. Ioannou

&

Scrafeim

2012 The consequences of mandatory

corporate sustainability reporting

The law and regulations that we identify have

smaller impact compare to laws and regulation that

establish more specific requirements for all

companies

www.ssrn.com

7. Verghese 2013 CSR in india: Trends and implication

for internal communication

Rise of internal social activist.

Tracking the carbon footprint

Greater ownership for CSR functions

www.intraskope

.com

RESEACH DESIGN

1 Type of study Discriptive

2 Population Companies

3 Sampling unit Public listed companies in BSE

4 Sampling technique Judgmental sampling

5 Sampling size Around 35

6 Data collection Secondary

ANALYSIS

CSR Approaches in India

0

2

4

6

8

10

12

14

16

18

20

foundation NGO with govt. bodies direct company

involvement

health care/ tablet

donation

employee

involvement

ANALYSIS CONTD..

CSR spending in terms of percentage of PAT

0

2

4

6

8

10

12

0.5-1% 1-1.5% 1.5-2% >=2%

ANALYSIS CONTD..

CSR activities practiced by Indian corporations

0

5

10

15

20

25

30

ANALYSIS CONTD..

Who are the targeted beneficiaries

15

15.5

16

16.5

17

17.5

18

18.5

all people local

ANALYSIS CONTD..

planning and execution of mandatory CSR policies

By using the same model we carried out the proposed CSR spending of

34 companies the total of which is RS 4157..47 crore and total CSR

spending for year 2012 is Rs 3141.96 crore.

Firm’s CSR Policy

Formulated, and CSR

committee approves

CSR activities

Local

Communities/targeted

beneficiaries approves

the CSR activities

External/internal

Partnerships formed for

executing CSR activities

Spend at least 2%

Toward CSR activities

Take the average

Of last three

years

Take out the PAT

For last 3

Years

Sustainable Impact of

CSR activities

SUGGESTION

• The companies should try to develop scalable models of CSR that can

be extended across the nation.

• Scalable models will be helpful in expanding the socio-economic impact

of CSR activities of the corporate.

• Using local NGO’s in each geographical area, a very helpful resource

yet at a low cost.

• The companies should try to rise the internal social activities.

• The business strategy with mandate CSR strategy will help firms to

leverage their CSR expenditures.

• A directional change in perspective Indian corporates take in planning

and strategizing their CSR operations in India.