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    CSR Mandate India "Era of Command and Control"

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    JagrityTalwar
    This document discusses India's CSR mandate under the Companies Bill of 2013. It requires qualifying companies to spend at least 2% of their average net profits over the past three years on CSR activities. This mandate is aimed at encouraging businesses to contribute to equitable and sustainable development, though some companies may treat it as merely a compliance exercise. The document also provides an overview of CSR evolution in India and compares actual CSR spending of major companies to the 2% threshold. It concludes with presenting a framework for effective CSR that is aligned with business objectives and results-oriented.

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    CSR Mandate India "Era of Command and Control"

    Uploaded by

    JagrityTalwar
    28 views15 pages
    This document discusses India's CSR mandate under the Companies Bill of 2013. It requires qualifying companies to spend at least 2% of their average net profits over the past three years on CSR activities. This mandate is aimed at encouraging businesses to contribute to equitable and sustainable development, though some companies may treat it as merely a compliance exercise. The document also provides an overview of CSR evolution in India and compares actual CSR spending of major companies to the 2% threshold. It concludes with presenting a framework for effective CSR that is aligned with business objectives and results-oriented.

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    excellent concept regarding CSR mandate in India.

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    Csr Mandat 3

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    This document discusses India's CSR mandate under the Companies Bill of 2013. It requires qualifying companies to spend at least 2% of their average net profits over the past three years on CSR activities. This mandate is aimed at encouraging businesses to contribute to equitable and sustainable development, though some companies may treat it as merely a compliance exercise. The document also provides an overview of CSR evolution in India and compares actual CSR spending of major companies to the 2% threshold. It concludes with presenting a framework for effective CSR that is aligned with business objectives and results-oriented.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views15 pages

    CSR Mandate India "Era of Command and Control"

    Uploaded by

    JagrityTalwar
    This document discusses India's CSR mandate under the Companies Bill of 2013. It requires qualifying companies to spend at least 2% of their average net profits over the past three years on CSR activities. This mandate is aimed at encouraging businesses to contribute to equitable and sustainable development, though some companies may treat it as merely a compliance exercise. The document also provides an overview of CSR evolution in India and compares actual CSR spending of major companies to the 2% threshold. It concludes with presenting a framework for effective CSR that is aligned with business objectives and results-oriented.

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    CSR Mandate

    India
    Era of Command and Control"

    5/23/16

    PRESENTATION FLOW

    CSR- EVOLUTION AND


    UNDERSTANDING

    CSR MANDATE

    CSR FRAMEWORK

    CSR- EVOLUTION
    AND
    UNDERSTANDING

    CSR EVOLUTION IN INDIA


    First Phase
    Till 1850s

    Culture, religion,
    family values and
    tradition

    Second Phase
    1900s to
    1980s

    Industrialization
    had an influential
    effect on CSR
    Era of Command and Control"

    Third Phase
    Present

    Integrated CSR
    into a sustainable
    business strategy

    CSR is a way of conducting business, by which corporate


    entities visibly contribute

    CSR - UNDERSTANDING

    Three Different
    Understanding of CSR
    Innovation,
    Sustainable
    business models

    Compliance with
    legislations

    Contribute with
    money and
    knowledge

    CSR AS
    VALUE
    CREATION
    CSR AS
    RISK
    MANAGEMENT

    CSR AS
    PHILANTHROP
    Y

    Fundamental
    strategic and
    operational impact

    Medium to High
    Operational Cost

    Little Strategic or
    Operational Effect

    CSR
    MANDATE

    CSR MANDATE COMPANY BILL 2013

    Clause 135

    of the Companies Bill (the CSR Clause)


    requires a qualifying corporation to spend on CSR at

    least

    2 percent

    of its average net profits made in the


    preceding three financial years..

    Bill is applicable to any company with...

    A net worth of
    rupees
    500crore

    A turnover of rupees
    1000crore

    A net profit of
    rupees 5crore
    or more in any fiscal
    year

    WHAT ACCOUNTS AS CSR?

    Eradicating Hunger

    Ensuring
    Environmental
    Sustainability

    Promotion of
    Education

    Employment
    Enhancing Vocational
    Skills

    Gender Equality and


    Empowering Women

    Social Business
    Projects

    Reducing child
    mortality and
    improving maternal
    health

    Contribution to the
    Prime Ministers
    National Relief Fund

    Combating human
    (IMV)immunodeficien
    cy virus, other
    diseases

    Such other Matters as


    may be prescribed

    CSR MANDATE POSITIVE IMPACT


    Business can contribute to equitable and
    sustainable economicdevelopment..

    ONE-THIRD
    of the population is
    illiterate

    TWO-THIRD
    lack access to proper
    sanitation

    MILLIONS OF
    PEOPLE
    still live on less than RS
    100 a day.

    CSR MANDATE NEGATIVE IMPACT

    Indian companies still


    equate CSR with

    CORPORATE
    PHILANTHROP
    Y

    Companies may treat

    CHECK
    THE BOX

    it as a

    exercise rather than


    looking at ways to
    doing social and
    environmental good.

    Companies will
    comply by

    CHANNELING
    FUNDS to
    community
    organizations.

    Effort to meet the spending obligations,


    companies may not do the right

    WHERE INDIAN COMPANY STANDS?


    Comparative Analysis on how much Indian firms are spending
    on CSR currently.
    Company

    Revenu
    e

    Avg
    Profit
    after
    Tax

    Actual
    Spent - CSR

    2% of
    PAT

    Indian Oil

    442,459

    7,783

    83

    156

    Reliance
    Industries

    368,571

    21,138

    288

    423

    Tata Steel

    135,978

    3,895

    146

    78

    TCS

    48,894

    8,935

    51

    179

    Grasim
    Industries

    27,899

    3,395

    16

    68

    Cairn India

    11,861

    5,108

    NA

    102

    HDFC Bank

    27,606

    4,108

    NA

    82

    Oil India

    17,215

    2,988

    50

    60

    Source: Forbes India magazine of 22 March, 20

    INDIAS TOP 100


    COMPANIES

    5611 Crores
    Actual Spent 1765 Crores
    2% of PAT

    CSR
    FRAMEWORK

    FRAMEWORK CSR
    Aligned
    with
    Busines
    s
    Objecti
    ves

    Sustain
    able

    Complia
    nce
    with
    Compa
    ny Bill
    Act

    Result
    Oriente
    d

    Scalabl
    e

    Effective
    CSR

    Brand
    Visibility

    Social
    Capital

    Partnership
    s&
    Relationship
    s

    Business
    Opportuniti
    es

    Nation
    Building

    PROCEDURE TO COMPANY
    Create
    CSR Committee

    Allocate
    Two percent of
    net profit

    Develop

    Corporate Social
    Responsibility
    Policy

    Report
    CSR Initiatives to
    be Reported

    *The two percent CSR spending needs to be computed as two percent of the average net profits made
    by the company during every block of three years.

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