Corporate Social Responsibility (CSR) policy

1
Corporate Social Responsibility (CSR) policy

• B.V.S.Prakash
• B.Com, L.L.B. FCA.
• CEO, Nhance CSR
• HYDERABAD 4th July,
  2014.

2
In India GIVING has been a part of our culture
3
Corporate Philanthropy also called CSR was a
voluntary gesture on part of companies and their
management.
It is for the first time Indian Companies have
been driven into CSR through a legislation. INDIA
LEADS THE WORLD ONCE AGAIN
4
CSR Our Understanding

• Demonstration of
• - a commitment to societys values,
• - contribution to societys social goals
• - environmental goals and
• - economic goals
• -- through action

5
The Law SECTION 135
6
Ringing in the new

• Against this backdrop, on 27 February, 2014, the
  Ministry of Corporate Affairs has notified the
  Companies (Corporate Social Responsibility
  Policy) Rules, 2014, which came into force on 1st
  day of April 2014.

7
Who is applicable?
8
How to implement
9
Dos Donts

• Has to be in India
• Not to political parties
• Not for the exclusive benefit of Employees
  their families
• Not to be Business as usual

10
Readying for CSR

• Companies are permitted to spend on building
  capabilities or training of its personnel or
  their implementation agencies ( with 3 year track
  record )
• Such expenditure not to exceed 5 of the CSR
  spend.

11
Approved activities for CSR

• The following activities are approved U/S 135 of
  the Companies Act 2013 for CSR spend
• Eradicating hunger, poverty, malnutrition and
  promoting preventive healthcare and sanitation
  and making available safe drinking water
• Promoting education, including special education
  and employment enhancing vocational skills
  especially among children, women, elderly, and
  the differently-abled and livelihood enhancement
  projects

12
Approved activities for CSR

• Promoting gender equality, empowering women,
  setting up homes and hostels for women and
  orphans setting up old age homes, day care
  centers, and such other facilities for senior
  citizens and measures for reducing inequalities
  faced by socially and economically backward
  groups. There has been a clarification from the
  ministry that the company can take up any
  activity so long as it is approved by the board

13
Approved activities for CSR

• Ensuring environmental sustainability, ecological
  balance, protection of flora and fauna, animal
  welfare, agro forestry, conservation of natural
  resources and maintaining quality of soil, air
  and water
• Protection of national heritage, art and culture
  including restoration of buildings and sites of
  historical importance and works of art setting
  up libraries promotion and development of
  traditional arts and handicrafts