CSR - A business tool, in this PPT you know about its history, Meaning, Pros & Cons, Tax effects, Challenges, Top Contributors and state wise contributors.

1. CORPORATE SOCIAL RESPONSIBILITY
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2.  History & Meaning ?
 Legal Compliances ?
 The Pros & Cons ?
 Tax Effects ?
 Financial Impact ?
 Top Contributors & Notable work ?
 Conclusion ?
Scope 2

3. History & Meaning
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4. History
 Ancient Hindu philosophy – Dharma , Artha, Kama and Moksha.
 Atharvana Veda – Procure wealth with 100 hands and distribute it with 1000 hands.
 CSR & Islam – Zakaat (One’s earning must shared with others).
 In Pre-Industrialized period – Shared a part of their wealth with society.
 After industrialized – Companies Act, 2013 mandates.
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5. Meaning
 CSR is about how company manage the business processes to
produce an overall positive impace on society.
 CSR is commitment by business to behave ethically & improving
the quality of life of the workforce as well as local community.
 Strategic CSR – Planned, Preconceived and Deliberate.
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6. Corporate = Company / Entity
Social = Society
Responsibility = Duty
Why it is needed
???
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7. Why it is needed
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8. Legal Compliance
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9. Turnover Net Worth Net Profit
=>1000 crore =>500 crore =>5 crore
Every company
Legal Compliances
 Mandatory to constitute A CSR COMMITTEE of the Board of 3 or more Directors of
which 1 should be INDEPENDENT DIRECTOR.
 Committee make a policy & spent as specified in schedule VII.
 Company should spend every year at least 2% of the average net profits.
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10. Schedule VII
 Eradicating extreme Hunger.
 Prompt Education.
 Prompt Gender equality.
 Reducing Child mortality.
 Employment enhancing vocational skills.
 Contribution to Prime Minister’s National Relief Fund.
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11. Do’s Don’t
 As per Schedule VII.
 Prefer local areas.
 Registered trust or society (3 yrs. record).
 Collaboration with other companies.
 Normal course of business.
 Political parties.
 Benefit for employees or their families.
 Foreign expenses.
Legal Compliances
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12. The Pros & Cons
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13. Pros
 Improve Company Reputation.
 Motivate Employees.
 Lower the burden of government and less corruption.
 Goes beyond the charity.
 Create Goodwill.
 Balance between Government & Private enterprises.
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14. Cons
 High Cost.
 Resistance by shareholders.
 Greenwashing.
 Collusion.
 Inflationary.
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15. Tax Effects
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16. Tax Effects
• CSR expenditure is not deductible under section 37(1) of the Income-tax Act, 1961
read with section 30 to 36 of same act.
• However, if the expenses are aligned with the other provisions then tax efficiency
can be brought in. as explained given below:
Contribution to Benefit
• PM Relief Fund
• PM Drought Relief Fund
• Others specified u/s 80G
100% or 50 %
Scientific Research 175 % or 125 %
Promoting social economical welfare 100%
Employment Enhancing Vocational Skills 1.5 times of sum
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17. Financial Impact
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18. Financial effect
Source - MCA
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0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2014-15 2015-16 2016-17
Chart Title
Perscribed Actual .

19. Top Contributors
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20. Top Contributors
0
100
200
300
400
500
600
700
800
Reliance ONGCL Infosys Ltd. ITC Ltd. TCS Ltd.
Rsincrores
Axis Title
Chart Title
2014-15 2015-16 2016-17
Source - MCA
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21. Fun bus in Chennai & Delhi. (day picnic)
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Notable Work
Ashok Leyland
Mahindra & Mahindra
Indian Oil Corporation
Axis Bank
Nanhi kali, Provide education to 75,000 girls.
Non-Profit Trust, works for Preservation &
Promotion of the country’s Heritage.
Balwadis, Learning place for children like driving,
welding, mobile repairing.

22. Top States
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23. 23

24. Conclusion
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25. Conclusion
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Education, Vocational
35%
Poverty, healthcare
25%
Rural Development
13%
Environment
sustainblitiy
10%
Protection of Heritage
& art
2%
others
15%
Expenses
Education, Vocational Poverty, healthcare Rural Development
Environment sustainblitiy Protection of Heritage & art others

26. 70%
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 Education
 Skill Development
 Healthcare
 Rural Development
Conclusion

27. 27
 No Specific provision for non-compliance.
 Somehow it is not Mandatory.
 Need to Build Local Capacities.
Challenges

28. Thank you
Questions are
welcomed
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