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CSR in India

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Vikash Gupta
Vikash Gupta

why csr..? Why it is made mandatory in india...? Benefits from csr activities..

Education
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Project Description Brief description of the project CORPORATE SOCIAL RESPONSIBILITY 1
WWW.UNIQUEPLACES.COM CONTENT: - Introduction To CSR - Mandatory Provisions Of CSR Under Companies Act 2013 - CSR Initiatives by Different Companies In India - So why CSR? - Cases Related To CSR - Conclusion 2
WWW.UNIQUEPLACES.COM INDIA • India is one of the largest economies of the world, and an increasingly important player in the emerging global order. • But it is still home to the largest number of people living in absolute poverty (even if the proportion of poor people has decreased) and the largest number of undernourished children. • What emerges is a picture of uneven distribution of the benefits of growth which many believe, is the root cause of social unrest. 3
WWW.UNIQUEPLACES.COM INDIAN COMPANIES • Companies too have been the target of those perturbed by this uneven development and as a result, their contributions to society are under severe scrutiny. • With increasing awareness of this gap between the haves and the have-nots, this scrutiny will only increase over time and societal expectations will be on the rise. • Many companies have been quick to sense this development, and have responded proactively while others have done so only when pushed. 4
WWW.UNIQUEPLACES.COM STEPS TAKEN • Governments as well as regulators have responded to this unrest. • The National Voluntary Guidelines for Social, Environmental and Economic Responsibilities of Business or the NVGs (accompanied by the Business Responsibility Reports mandated by the SEBI for the top 100 companies) released by the Ministry of Corporate Affairs. • The CSR clause within the Companies Act, 2013. 5
WWW.UNIQUEPLACES.COM CSR & INDIA According to Indian Institute of Corporate Affairs: • A minimum of 6,000 Indian companies will be required to undertake CSR projects in order to comply with the provisions of the Companies Act, 2013 with many companies undertaking these initiatives for the first time. • Some estimates indicate that CSR commitments from companies can amount to as much as ₹ 20,000 crore. 6
WWW.UNIQUEPLACES.COM Mandatory Provisions of Corporate Social Responsibility under Companies Act 2013 7
WWW.UNIQUEPLACES.COM MANDATORY PROVISIONS OF CSR UNDER COMPANIES ACT 2013 o MCA notified section 135 and schedule VII of Companies Act 2013 for Companies (CSR) rule 2014 came into effect on April 1st, 2015. o With effect from April 1, 2014, every company, private limited or public limited, which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility activities. o In determining CSR activities to be undertaken, preference would need to be given to local areas and the areas around where the company operates. Source: http://www.business-standard.com/article/companies/an-overview-of- csr-rules-under-companies-act-2013-114031000385_1.html 8
WWW.UNIQUEPLACES.COM o The activities that can be undertaken by a company to fulfil its CSR obligations are: Providing food to hunger, poverty and malnutrition, promoting preventive healthcare, promoting education and promoting gender equality, setting up homes for women, orphans and the senior citizens, animal welfare, protection of national heritage, development and relief and welfare of SC, ST, OBCs, minorities and women, contributions or funds provided to technology within academic institutions approved by the Central Government and rural development projects. 9
WWW.UNIQUEPLACES.COM CONSEQUENCES OF CSR & PENALTIES: - Following activities are not consider as a CSR activities in Section – 135 - o Contribution to political parties. o Opening schools for children's of employees o Bonus to workers o Providing technical skills or additional knowledge to workers. o Running welfare services for employees, etc. - Penalties for default: Rs. 50,000/- fine or 3years imprisonment or both a company owner have to face for not filing the CSR report to the MCA. 10
WWW.UNIQUEPLACES.COM 11 CSR INITIATIVE BY DIFFERENT COMPANIES IN INDIA
WWW.UNIQUEPLACES.COM 12 CSR INITIATIVE: SOLAR LAMPS SOURCE: https://www.youtube.com/watch?v=gt- ga9hdZ0w
WWW.UNIQUEPLACES.COM 13 VASUNDHARA • Tree Plantation Programmes • Creating Environmental Awareness • Soil and Water Conservation • 1,64,000 trees were planted in 2013-14 SOURCE : http://www.tatamotors.com /investors/financials/69-ar- html/csr.html VIDYADHANAM o Scholarship Programmes o Special Coaching Classes o School Infrastructure Improvement o Co-Curricular activities o More than 37,000 children were benefited in 2013-14 AAROGYA • Addressing Malnutrition • Preventive and Curative Healthcare Services • Creating health awareness • More than 2,84,000 persons were benefited in 2013-14 KAUSHALYA o Driver Training Programme o Training in Automotive and Technical Trades o Training in Agriculture and allied activities o ITI adoption Programme- training 137 youth across India o More than 20,000 youth were benefited in 2013-14
WWW.UNIQUEPLACES.COM ORCHID CHEMICALS • Orchid chemicals and pharmaceuticals limited is an Indian company based in Chennai founded on 1, July, 1992 by kailasam raghavendra rao an alumnus of IIM Ahmedabad. • There was a CSR conflict ,women workers protested for not having equal rights as men in terms of salary, promotions and basic facilities.
WWW.UNIQUEPLACES.COM CANON CANON is a Japanese multinational corporation specialized in manufacture of imaging and optical products. Canon has regional headquarters in japan America ,Asia ,Europe, middle east ,Africa ,etc. The csr conflict, the workers are not allowed to sit during working hours , then should work all day long . The main moto only to make profit and increase efficiency of company.
WWW.UNIQUEPLACES.COM RELIANCE Reliance industries limited is an Indian holding company headquartered in Mumbai .the group is present in many business sectors across India including petrochemicals, health care ,retail ,textiles, etc. The csr conflicts • Business with suppliers those using child labor. • In may 2014, ONGC moved to Delhi court accusing RIL for disposing high amount of toxic of its gas producing in Krishna Godavari basin.
WWW.UNIQUEPLACES.COM ASIAN PAINTS Asian paints limited is an Indian chemical company headquartered in Mumbai. It manufacture paints for decorative and industrial use. It is India's largest and Asia's third largest paint company. The CSR conflict • The toxic chemicals which are removed by the Asian paints industries caused the death of thousand of fishes . • Its chemical pollutes surrounding water more faster than any other company.
WWW.UNIQUEPLACES.COM 18 SATISFIED EMPLOYEES Employees want to feel proud of the organization they work for. An employee with a positive attitude towards the company, is less likely to look for a job elsewhere. It is also likely that you will receive more job applications because people want to work for you. SATISFIED CUSTOMERS Research shows that a strong record of CSR improves customers’ attitude towards the company. If a customer likes the company, he or she will buy more products or services and will be less willing to change to another brand.
WWW.UNIQUEPLACES.COM 19 POSITIVE PR CSR provides the opportunity to share positive stories online and through traditional media. Companies no longer have to waste money on expensive advertising campaigns. Instead they generate free publicity and benefit from worth of mouth marketing. LONG TERM FUTURE FOR YOUR BUSINESS CSR is not something for the short term. It’s all about achieving long term results and business continuity. Large businesses refer to: “shaping a more sustainable society”
WWW.UNIQUEPLACES.COM 20 • Communities provide the license to operate. • Attracting and retaining employees. • A company’s ability to attract, retain and motivate employees with their CSR commitments. • Enhancing corporate reputation. • Generating goodwill, creating a positive image. • Corporate Social Responsibility attracts more investors. • Customers are attracted towards Socially responsible companies. Needs of CSR for a Company:
WWW.UNIQUEPLACES.COM 21
WWW.UNIQUEPLACES.COM CONT… 3. Oil India Ltd. Educational, health and infrastructural development. 4 Aditya Birla Group. Social causes Health care and family welfare Infrastructure development
WWW.UNIQUEPLACES.COM CONCLUSION • CSR is the heart and soul of modern corporations and is an important stander for corporate governance. • CSR is mandatory for every company according to Indian Company Act 2013. • It creates Goodwill of the company. • Helps In Profit maximization. • CSR goes beyond the charity. 23
WWW.UNIQUEPLACES.COM SOURCE: • Wikipedia • Business Dictionary • MCA.gov.in • http://www.tatamotors.com/investors/financials/69-ar-html/csr.html • https://www.youtube.com/watch?v=gt-ga9hdZ0w • http://www.business-standard.com/article/companies/an-overview-of-csr-rules-under- companies-act-2013-114031000385_1.html • Slide Share • Casefinder.uk 24
WWW.UNIQUEPLACES.COM 25 QUESTION ARE WELCOME Created In: Microsoft Win 8.1: 2013 All Right Reserve THANKS

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CSR in India

  • 1. Project Description Brief description of the project CORPORATE SOCIAL RESPONSIBILITY 1
  • 2. WWW.UNIQUEPLACES.COM CONTENT: - Introduction To CSR - Mandatory Provisions Of CSR Under Companies Act 2013 - CSR Initiatives by Different Companies In India - So why CSR? - Cases Related To CSR - Conclusion 2
  • 3. WWW.UNIQUEPLACES.COM INDIA • India is one of the largest economies of the world, and an increasingly important player in the emerging global order. • But it is still home to the largest number of people living in absolute poverty (even if the proportion of poor people has decreased) and the largest number of undernourished children. • What emerges is a picture of uneven distribution of the benefits of growth which many believe, is the root cause of social unrest. 3
  • 4. WWW.UNIQUEPLACES.COM INDIAN COMPANIES • Companies too have been the target of those perturbed by this uneven development and as a result, their contributions to society are under severe scrutiny. • With increasing awareness of this gap between the haves and the have-nots, this scrutiny will only increase over time and societal expectations will be on the rise. • Many companies have been quick to sense this development, and have responded proactively while others have done so only when pushed. 4
  • 5. WWW.UNIQUEPLACES.COM STEPS TAKEN • Governments as well as regulators have responded to this unrest. • The National Voluntary Guidelines for Social, Environmental and Economic Responsibilities of Business or the NVGs (accompanied by the Business Responsibility Reports mandated by the SEBI for the top 100 companies) released by the Ministry of Corporate Affairs. • The CSR clause within the Companies Act, 2013. 5
  • 6. WWW.UNIQUEPLACES.COM CSR & INDIA According to Indian Institute of Corporate Affairs: • A minimum of 6,000 Indian companies will be required to undertake CSR projects in order to comply with the provisions of the Companies Act, 2013 with many companies undertaking these initiatives for the first time. • Some estimates indicate that CSR commitments from companies can amount to as much as ₹ 20,000 crore. 6
  • 7. WWW.UNIQUEPLACES.COM Mandatory Provisions of Corporate Social Responsibility under Companies Act 2013 7
  • 8. WWW.UNIQUEPLACES.COM MANDATORY PROVISIONS OF CSR UNDER COMPANIES ACT 2013 o MCA notified section 135 and schedule VII of Companies Act 2013 for Companies (CSR) rule 2014 came into effect on April 1st, 2015. o With effect from April 1, 2014, every company, private limited or public limited, which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility activities. o In determining CSR activities to be undertaken, preference would need to be given to local areas and the areas around where the company operates. Source: http://www.business-standard.com/article/companies/an-overview-of- csr-rules-under-companies-act-2013-114031000385_1.html 8
  • 9. WWW.UNIQUEPLACES.COM o The activities that can be undertaken by a company to fulfil its CSR obligations are: Providing food to hunger, poverty and malnutrition, promoting preventive healthcare, promoting education and promoting gender equality, setting up homes for women, orphans and the senior citizens, animal welfare, protection of national heritage, development and relief and welfare of SC, ST, OBCs, minorities and women, contributions or funds provided to technology within academic institutions approved by the Central Government and rural development projects. 9
  • 10. WWW.UNIQUEPLACES.COM CONSEQUENCES OF CSR & PENALTIES: - Following activities are not consider as a CSR activities in Section – 135 - o Contribution to political parties. o Opening schools for children's of employees o Bonus to workers o Providing technical skills or additional knowledge to workers. o Running welfare services for employees, etc. - Penalties for default: Rs. 50,000/- fine or 3years imprisonment or both a company owner have to face for not filing the CSR report to the MCA. 10
  • 11. WWW.UNIQUEPLACES.COM 11 CSR INITIATIVE BY DIFFERENT COMPANIES IN INDIA
  • 12. WWW.UNIQUEPLACES.COM 12 CSR INITIATIVE: SOLAR LAMPS SOURCE: https://www.youtube.com/watch?v=gt- ga9hdZ0w
  • 13. WWW.UNIQUEPLACES.COM 13 VASUNDHARA • Tree Plantation Programmes • Creating Environmental Awareness • Soil and Water Conservation • 1,64,000 trees were planted in 2013-14 SOURCE : http://www.tatamotors.com /investors/financials/69-ar- html/csr.html VIDYADHANAM o Scholarship Programmes o Special Coaching Classes o School Infrastructure Improvement o Co-Curricular activities o More than 37,000 children were benefited in 2013-14 AAROGYA • Addressing Malnutrition • Preventive and Curative Healthcare Services • Creating health awareness • More than 2,84,000 persons were benefited in 2013-14 KAUSHALYA o Driver Training Programme o Training in Automotive and Technical Trades o Training in Agriculture and allied activities o ITI adoption Programme- training 137 youth across India o More than 20,000 youth were benefited in 2013-14
  • 14. WWW.UNIQUEPLACES.COM ORCHID CHEMICALS • Orchid chemicals and pharmaceuticals limited is an Indian company based in Chennai founded on 1, July, 1992 by kailasam raghavendra rao an alumnus of IIM Ahmedabad. • There was a CSR conflict ,women workers protested for not having equal rights as men in terms of salary, promotions and basic facilities.
  • 15. WWW.UNIQUEPLACES.COM CANON CANON is a Japanese multinational corporation specialized in manufacture of imaging and optical products. Canon has regional headquarters in japan America ,Asia ,Europe, middle east ,Africa ,etc. The csr conflict, the workers are not allowed to sit during working hours , then should work all day long . The main moto only to make profit and increase efficiency of company.
  • 16. WWW.UNIQUEPLACES.COM RELIANCE Reliance industries limited is an Indian holding company headquartered in Mumbai .the group is present in many business sectors across India including petrochemicals, health care ,retail ,textiles, etc. The csr conflicts • Business with suppliers those using child labor. • In may 2014, ONGC moved to Delhi court accusing RIL for disposing high amount of toxic of its gas producing in Krishna Godavari basin.
  • 17. WWW.UNIQUEPLACES.COM ASIAN PAINTS Asian paints limited is an Indian chemical company headquartered in Mumbai. It manufacture paints for decorative and industrial use. It is India's largest and Asia's third largest paint company. The CSR conflict • The toxic chemicals which are removed by the Asian paints industries caused the death of thousand of fishes . • Its chemical pollutes surrounding water more faster than any other company.
  • 18. WWW.UNIQUEPLACES.COM 18 SATISFIED EMPLOYEES Employees want to feel proud of the organization they work for. An employee with a positive attitude towards the company, is less likely to look for a job elsewhere. It is also likely that you will receive more job applications because people want to work for you. SATISFIED CUSTOMERS Research shows that a strong record of CSR improves customers’ attitude towards the company. If a customer likes the company, he or she will buy more products or services and will be less willing to change to another brand.
  • 19. WWW.UNIQUEPLACES.COM 19 POSITIVE PR CSR provides the opportunity to share positive stories online and through traditional media. Companies no longer have to waste money on expensive advertising campaigns. Instead they generate free publicity and benefit from worth of mouth marketing. LONG TERM FUTURE FOR YOUR BUSINESS CSR is not something for the short term. It’s all about achieving long term results and business continuity. Large businesses refer to: “shaping a more sustainable society”
  • 20. WWW.UNIQUEPLACES.COM 20 • Communities provide the license to operate. • Attracting and retaining employees. • A company’s ability to attract, retain and motivate employees with their CSR commitments. • Enhancing corporate reputation. • Generating goodwill, creating a positive image. • Corporate Social Responsibility attracts more investors. • Customers are attracted towards Socially responsible companies. Needs of CSR for a Company:
  • 22. WWW.UNIQUEPLACES.COM CONT… 3. Oil India Ltd. Educational, health and infrastructural development. 4 Aditya Birla Group. Social causes Health care and family welfare Infrastructure development
  • 23. WWW.UNIQUEPLACES.COM CONCLUSION • CSR is the heart and soul of modern corporations and is an important stander for corporate governance. • CSR is mandatory for every company according to Indian Company Act 2013. • It creates Goodwill of the company. • Helps In Profit maximization. • CSR goes beyond the charity. 23
  • 24. WWW.UNIQUEPLACES.COM SOURCE: • Wikipedia • Business Dictionary • MCA.gov.in • http://www.tatamotors.com/investors/financials/69-ar-html/csr.html • https://www.youtube.com/watch?v=gt-ga9hdZ0w • http://www.business-standard.com/article/companies/an-overview-of-csr-rules-under- companies-act-2013-114031000385_1.html • Slide Share • Casefinder.uk 24
  • 25. WWW.UNIQUEPLACES.COM 25 QUESTION ARE WELCOME Created In: Microsoft Win 8.1: 2013 All Right Reserve THANKS