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1. Presented by :-
Naveen Kumar
Mcom (P)
Roll NO. 190101030011

2. Contents
 Introduction
 Four Dimensions of CSR
 Types of CSR
 Need of CSR
 Concepts of CSR
 The Company Act, 2013
 Business impact of CSR
 The Company ( Amendment) Act, 2019
 CSR trends in India
 Arguments against CSR activities
 Arguments of CSR activities
 CSR trends in India
 Examples of CSR activities
 Conclusion.

3. Introduction
 Corporate Social Responsibility is the
continuing commitment by business to
behave ethically and contribute to economic
development while improving the quality of
life of the workforce and their families as well
as of the local community and society at large
.
 India is the first country in the world to make
corporate.
 Business can invest their profits in areas such
as education, poverty, gender equality
hunger and environment protection.

4. Four Dimensions of CSR

5. Types of CSR
1. Responsibilities towards Society.
2. Responsibilities towards Government.
3. Responsibilities towards Shareholders.
4. Responsibilities towards Economics.
5. Responsibilities towards Environment.
6. Responsibilities towards Consumer.

6. Need for CSR
 To fulfill run self interest of the organisations.
 To establish a better public image.
 To avoid misuse of resources.
 To minimize environment damage.
 For economic and social welfare of the community.
 To reduce the social cost.
 It satisfies the stakeholders.

7. Concepts of CSR
 Economic Responsibility (Profit)
 Social Responsibility (People)
 Environment Responsibility
(Planet)

8. Social Responsibilities of
Corporations
 Abolish slavery, forced and child
labour, non-discrimination, equal
opportunities.
 Right to privacy and family life.
 Right to take part in political life.
 Freedom of expression, thought,
conscience and religion.
 Provide minimum wages, health &
safety.
 Protection against unjustified
dismissals, vocational training.

9. Economic Responsibilities of
Corporations
 Financial profit, economic growth and asset creation.
 Monetary support for NGOs.
 Economic regulation and tax incentives.
 Knowledge innovation.
 Intellectual property rights, patents, and trademarks
etc.

10. Environment Responsibilities of
Corporations
 Protection of forest resources.
 Recycling and reuse of material.
 Soil & water contamination.
 Treatment and reduction of waste
water
 Minimizing the greenhouse gas
emissions & Global warming.

11.  Indian government became the first to mandate CSR
under section of the Companies Act, 2013
 The Companies Act, 2013 introduced the idea of CSR
mandatory disclosure promoting greater transparency
and disclosure.
 Ministry of Corporate Affairs has notified Section 135
and Schedule VII of the Companies Act as well as
provisions of the Corporate Social Responsibility
Policy rules 2014 which has come into effect from 1
april 2014

12. Applicability
 Section 135 (1)of Company Act 2013 mandates the CSR
expenditure for following companies- every company
having
1) net worth of Rs.500 crore or more
2)turnover of Rs.1000 crore or more
3)or net profit of Rs.5 crore or more
Mandatory Expenditure :
Section 135 (5) mandates 2% of the average net profit
during the three immediately preceding financial
years.

13. Business Impact of CSR
 Shareholder value (Change in stock price and
dividend).
 Operational efficiency
 Customer attraction and retention
 Creation of brand value and reputation
 Risk Management
 License to operate
 Human capital
 Innovation

14. The Company(Amendment)Act,2019
 It Amends the Companies Act 2013.
 Under this act the companies were allowed to provide CSR
funds to technology incubators located within Centre-
approved academic institute.
 In Act has widened the scope of CSR activities and
companies can now contribute towards research across
various fields such as science ,technology ,medicine.
Besides, CSR fund can be spent on incubators funded by
the centre or state or any state owned companies.
 India`s spending on research & development activities has
been far less than 1% of GDP for years, with the private
sector chipping in less than half of investment.

15. Penalty for Non-Compliance
 Under the Act now require companies to deposit the
unspent CSR funds into a fund prescribed under
Schedule VII of the Act with in the end of the fiscal
years.
 Company will be liable to a penalty of an amount that
will be more than INR 50000 but less than INR 25
lakhs.
 Every officer of such non-complaint company will be
levied with a fine that is more than INR 50000 but less
than 5 lakhs ,or upto 3years of imprisonment as
punishment, or even both

16. Arguments against the CSR
 It is very expensive for business
houses.
 CSR project will not be successful.
 There are not the special areas of
any business.
 Lack of skills.
 Lack of broad public support.
 Violation of profit maximization.
 Dilutes the primary aim of business.

17. Arguments for the CSR
 Proper use of resources, capability &
competence.
 Te expenditure on CSR is a short of
investment.
 Company can avoid many legal complications.
 It create a better impression.
 Corporate should return a part of wealth.
 Risk management.
 Increased ability to attract and retain
employees.
 Improved financial performance.
 Enhanced brand image & reputation.

18. CSR trends in India
 The applicability of mandatory CSR provision in 2014,
CSR spending by corporate India has increased
significantly. In 2018, companies spent higher as
compared to the amount in 2014-15, contributing INR
7536 Crore to CSR initiatives.
 Listed companies in India spent INR 10000 Crore in
various programs ranking, while the Prime Minister`s
Relief Fund saw an increase of 139% in CSR
contribution over last one year.

19. 1. Education sector =38%
2. Hunger , Poverty and healthcare =25%
3. Environmental sustainability =12 %
4. Rural development =11%.
Such as technology incubators, sports , armed forces,
reducing inequalities saw negligible spends.
The recent amendments to CSR provisions , industry
research estimates CSR compliance to improve and
range between 97 to 98 % by FY 2019-20.

21. Examples of CSR in India
1) The Tata Group :-The Tata group
conglomerate in India carries out various CSR
projects. The group also engages in healthcare
projects, such as the facilitation of child education,
immunization, and creation of awareness of AIDS.
Other area include economic empowerment
through agriculture programs, environment
protection, providing sports scholarships, and such
as hospitals, research centers, education
institutions, sports academy, and cultural centers.
2) Ultratech Cement :-, India`s biggest cement
company is involved in social across 407 villages in
the country aiming to create sustainability and
self-reliance. The company has organised medical
camps, immunization programs, sanitization
programs, school enrollment, plantation drives,
water conservation programs, industrial training,
and organic farming programs.

22. 3) Mahindra & Mahindra :-Its CSR
programs invest in scholarships and grants,
livelihood training, healthcare for remote areas,
water conservation, and disaster relief programs.
M&M runs programs such as Nanhi Kali focusing
on education for girls, Mahindra Pride School for
industrial training, and Lifeline Express for
healthcare services in remote areas.
4) ITC Group :-, a conglomerate with business
interests across hotels, FMCG, agriculture, IT, and
packaging sectors has been focusing on creating
sustainable livelihood and environment protection
programs. Their e-Choupal program, which aims
to connect rural farmers through the internet for
procuring agriculture products, covers 40,000
villages and over four million farmers. Social
empowerment programs through micro-
enterprises or loans have created sustainable
livelihoods for over 40,000 rural women.

23. Conclusion
 CSR is the heart and soul of modern corporations and
is an important standard for corporate governance.
 CSR is an indispensible mechanism for both increased
corporate accountability, profitability and
environment sustainability.
 Corporate Responsibility is the best thing that was
implemented into business both larger and small, in
this was the environment and society can be treated
the way it supposed to, with respect. CSR is something
that everyone can benefit from , when business adopt
its policy.