Corporate Social Responsibility in India Ahimsa Round Table
2015 June 23, 2015 Impact India Foundation
Slide 2
History of CSR in India Traditionally socially responsible
Concept of parting with a portion of surplus wealth for societys
good can be traced to around 300 BC - Chanakyas Arthashastra
Merchants were considered as assets to society Inactive
philanthropy to incorporation of stakeholders interest in business
model various methods for social responsibility:
Slide 3
History of CSR in India Stages of evolution: Trusteeship of
Wealth Corporate Philanthropy Corporate Citizenship Corporate
Social Responsibility (CSR)
Slide 4
Current status of CSR in India Government View: State and
non-State actors need to partner together to find and implement
innovative solutions for inclusion of the underprivileged in Nation
development. Corporate Practice: Basic objective is to maximize
Corporates overall impact on Society and Stakeholders. CSR
policies, practices and programmes being comprehensively integrated
throughout business operations and processes. Corporations consider
CSR important for protecting goodwill and reputation and enhancing
competitiveness.
Slide 5
Companies Act, 2013 Bill passed by the Lower House of Indian
Parliament (Lok Sabha) on 18.12.2012. Bill passed by the Upper
House of Indian Parliament (Rajya Sabha) on 8.8.2013. Received
consent of the President of India on 28.8.2013 for: The Companies
Act, 2013 (Act 18 of 2013)
Slide 6
Mandatory spend on CSR Applicability: Every company with income
in a financial year of: Net Worth of INR 5 billion (Euros 68.5 mn.)
or more OR Turnover of Rs. 10 billion (Euros 137 mn.) or more OR
Net Profit of Rs. 50 million (Euros 0.685 mn.) or more
Requirements: CSR Committee Disclose CSR policy Undertake CSR
activities in TEN specified areas Spend at least TWO percent of the
average net profits of previous 3 years on CSR Report reasons for
not spending and state in Annual Report
Slide 7
Specified CSR Activities under Schedule VII Eradicating extreme
hunger and poverty and malnutrition, promoting health care
including preventive health care and sanitation and making
available safe drinking water; Promotion of education including
special education and employment enhancing vocation skills
especially among children, women, elderly, and the differently
abled and livelihood enhancement projects; Promoting gender
equality and empowering women, setting up homes and hostels for
women and orphans; setting up old age homes, day care centres and
such other facilities for senior citizens and measures for reducing
inequalities faced by socially and economically backward groups;
Ensuring environmental sustainability, ecological balance,
protection of flora and fauna, animal welfare, agroforestry,
conservation of natural resources and maintaining quality of soil,
air and water;
Slide 8
Specified CSR Activities under Schedule VII Protection of
national heritage, art and culture including restoration of
buildings and sites of historical importance and works of art;
setting up public libraries; promotion and development of
traditional arts and handicrafts; Measures for the benefit of armed
forces veterans, war widows and their dependents; Training to
promote rural sports, nationally recognized sports, para- olympic
sports and olympic sports; Contribution to the Prime Ministers
Relief Fund or any other fund set up by the Central Government for
socio-economic development and relief and welfare of the Scheduled
Castes, the Scheduled Tribes, other backward classes, minorities
and women; Contributions or funds provided to technology incubators
located within academic institutions which are approved by the
Central Govt. Rural development projects.
Slide 9
Salient Features India is the first country in the World to
mandate CSR spending. Evoked mixed reactions. Additional
responsibilities on Companies Good opportunities for NPOs INR 200
billion expected into CSR mainstream Could not see much effect in
2014-15 May take a while to streamline