CSR for Development

Module-2
In this Module we will discuss on:-

#What is considered CSR?

# What CSR is not?
#CSR under Companies Act 2013
# CSR Examples
# Challenges in implementing CSR
#Career Opportunity in CSR
Contextualising CSR
 CSR as Profit or Purpose
• https://www.youtube.com/watch?v=Z5KZhm1
9EO0
(The social responsibility of business | Alex
Edmans | TEDx London Business School) 17.25
mts
 Let’s Ponder on the video
• Why Simon introduced Nutritious meal for
workers?
• Is Profit a Goal?
• Whether Profit is first or the purpose?
• How does one enhance the performances of
the Company?
• How is the CSR defined in the video?
 Key Drivers and Significance of CSR

1. Care for all Stakeholders :-

 Company should respect the interest and be
responsible for all Stakeholders which includes
Shareholders & Investors, Employers, Employees,
Customers, Suppliers/Vendors, Project Affected
People (PAP) and Society at large.
 Create value for all Stakeholders.
 Actively engage with all Stakeholders and inform
them of inherent risks, if any , and mitigate them
whenever these occur.
 Key Drivers and Significance of CSR
(Contd…)
2. Ethical Functioning
 Conducting business with adherence to high standard
of Corporate Governance with transparency and
accountability.
 Should not engage in business practices that are
unlawful, abusive, unfair , corrupt or anti-competitive
3. Respect for Human Rights
 Company should respect human rights for all and avoid
complicity with human rights abuses not only by them
but also by third party.
 Key Drivers and Significance of CSR
(Contd….)
4. Respect for Workers’ Rights and Welfare
 Provide workplace environment that is safe and hygienic .
 Upholds dignity of employees
 Provide all employees access to training and skill
development.
 Equal opportunities to all without discrimination
5.Undertake Activities for Social and Inclusive
Development
 Company to take up activities for economic and social
development of communities and geographical area
particularly in the vicinity of its operation
 Key Drivers and Significance of CSR
(Contd….)
6. Respect for Environment
 Check and prevent pollution of air, water ,noise , soil,
etc.
 Recycle and Waste management
 Management of natural resources in a sustainable
manner
 Water and energy conservation
 Proactively respond to Climate Change
 Efficient use of energy and environment friendly
technology
 CSR is based on the concept of
Interdependence

11
Where should the Companies be spending
their CSR Resources ?
 Positive outcomes when Corporates adopt
policy of CSR
Benefits to Company :-
 Enhanced brand image and reputation.
 Generating goodwill and creating positive image in society.
 Attracting, retaining and motivating employees with their
CSR commitments.
 Greater productivity and quality.
 Increased sales and customer loyalty.
 CSR attracts more investors.
 CSR enhances stakeholder value and satisfaction.
 Improved financial performance.
Satisfied Employees, Satisfied Customers, Satisfied Society

13
 Positive outcomes when Corporates adopt policy of
CSR and Sustainability
Benefits to Employees Benefits to Investors

 Better work environment  Maximise social impact of their

investment
 Better occupational health  Reducing nonfinancial risks
and safety standards
 Better welfare facilities

 Higher motivation and

productivity

14
 Positive outcomes when Corporates adopt policy of
CSR and Sustainability
Benefits to Benefits to Environment
Community/Society and
Public at large
 Charitable Contributions  Greater use of renewable
 Corporate involvement in resources
employment generation,  Greater material recyclability
skilling, community  Better product durability and
infrastructure on healthcare, functionality
education , rural  Wastage reduction
development ,etc.  Waste management
 Product safety and Quality  Integration of environmental
 Improved quality of life. management tools into business
plans
 Environmental management
 Eco friendly products

15
 Drops of Water
Create Ocean
03/10/2025 16
 CSR –Legal Framework
(Companies Act 2013)
 Under Section 135 of the Companies Act,2013, it is mandatory
for Companies to undertake CSR activities if:
 It has turnover of Rs 1000 Cr or more or,
 It has net worth of assets Rs 500 Cr or more or,
 It has net profit of Rs 5 Cr or more
 during any financial year
 CSR expenditure should be at least 2 % of the average net profit
of the last three financial years
 Company should have a CSR policy and a CSR Committee of the
Board consisting of at least 3 Directors with at least one
Independent Director who should be the Chairman.
 Company to give preference to local area and the areas around
its operation for its CSR activities
 Failure to spend at least 2 % of average net profits reasons to be
reported in the Annual Report 17
 Activities not considered as CSR as per
Section 135 of Companies Act , 2013
 Contribution to political parties
 Operating schools for children of employees
 Bonus to employees
 Providing Technical training and skill
upgradation of employees
 Running welfare activities for employees

18
CSR activities under CA 2013 (Rule-14)
• Eradicating hunger, poverty & malnutrition, promoting
preventive health care & sanitation & making available safe
drinking water;
• Promoting education, including special education &
employment enhancing vocational skills especially among
children, women, elderly & the differently unable & livelihood
enhancement projects;
• Promoting gender equality, empowering women, setting up
homes & hostels for women & orphans, setting up old age
homes, day care centers & such other facilities for senior
citizens & measures for reducing inequalities faced by socially
& economically backward groups;
• Reducing child mortality and improving maternal health by
providing good hospital facilities and low-cost medicines;
 CSR activities under CA 2013 (Rule-14)
Cont…
• Providing with hospital and dispensary facilities with
more focus on clean and good sanitation to combat
human immunodeficiency virus, acquired immune
deficiency syndrome, malaria and other diseases
(COVID-2019);
• Ensuring environmental sustainability, ecological
balance, protection of flora & fauna, animal welfare,
agro forestry, conservation of natural resources &
maintaining quality of soil, air & water;
• Employment enhancing vocational skills.
 CSR activities under CA 2013 (Rule-14)
Cont…
• Protection of national heritage, art & culture
including restoration of buildings & sites of
historical importance & works of art; setting
up public libraries; promotion & development
of traditional arts & handicrafts;
• Measures for the benefit of armed forces
veterans, war widows & their dependents;
• Training to promote rural sports, nationally
recognized sports & Olympic sports;
 CSR activities under CA 2013 (Rule-14)
Cont…
• Contribution to the Prime Minister‘s National Relief Fund
or any other fund set up by the Central Government
(COVID Care Fund) for socio-economic development &
relief & welfare of the Scheduled Castes, the Scheduled
Tribes, other backward classes, minorities & women;
• Contributions or funds provided to technology
incubators located within academic institutions, which
are approved by the Central Government;
• Rural development projects, etc.
• Slum area development. etc……….
 CSR Examples
• https://www.youtube.com/watch?v=BkqCHlC6He4
(Corporate Social Responsibility: A Strategy for
Peace and Hope. | Mayuri Misra | TEDxMITID)
23.56 mts
• https://www.youtube.com/watch?v=2fIrfyxe2IU
( CSR by Chepgemini) 10.03 mts.
• https://www.youtube.com/watch?v=wkYrej9rHQ0
(What is unique about Corporate
Social Responsibility at The Tata
Group?) 5.13 mts.
 CSR Example:-
Bharat Electronic Limited (BEL)
• Bharat electronics limited (BEL) is owned by
the Indian Government and primarily
manufactures advanced electronic products
for the Indian Armed Forces.
• BEL is one of nine PSUs under the Ministry of
Defense of India.
• It has been accorded Navratna status by
the Government of India.
 CSR Example:-
Bharat Electronic Limited (BEL) cont..
• BEL is involved in various community development
initiatives wherever it is present across India.
• The BEL has its own educational institutions
among them one is special school for the mentally
challenged students.
• It has set up hospital, crèche and other welfare
measures for its employees and their dependents.
• Approximately ₹40 million was spent on society
related initiatives.
 CSR Example:-
Hindustan Unilever’s Project Shakti
CSR Example:- Nestle
 CSR Example:-
National Seeds Corporation(NSC)
 NSC, a PSU under the Ministry of Agriculture and Farmers’ Welfare is
engaged in production and distribution of quality seeds of a large no
crops to the farmers.
 During 2006-2007, NSC introduced its CSR scheme in the following
areas:-
 Facilitating soil testing for Seed Growers
 Organising free veterinary camps in the seed villages for check up of
health of farm animals
 Training to Seed Growers on seed production and distribution of
metallic seed bins for safe storage of seeds and foodgrains
 Creation of rainwater harvesting structures in community buildings,
rehabilitation of ponds/water bodies in seed villages
 Supply of seeds at subsidized rates to tribal farmers or where crop
productivity is low.
All these resulted in loyalty among Seed Growers and increased 28
 CSR Example:-
Central Warehousing Corporation (CWC)
Some of the CSR activities undertaken in the
recent years are:
 Distribution of Metallic storage bins to farmers after training on farm
level storage techniques
 Providing Delivery Vans to Akshya Patra / ISCON FRF for transport of
Mid Day Meals from their kitchens to Schools
 Creation of Toilet facilities in Govt Girls’ schools
 Setting up of Computer labs in village schools
 Support for Skill development programs for rural youth
 Support for Artificial limbs and wheelchairs for PH children
 Market yard infrastructure in village daily/weekly hats
 Creation of Rainwater Harvesting structures in community buildings
 Funding for Solar Panels in community buildings
 Bus shelters 29
https://www.youtube.com/watch?v=N8dXNzCIV
xg
(The Era of Corporate Social Responsibility is
Ending | Rachel Hutchisson | TEDxWilmington)
8.19 mts.
 CSR: Issues & Challenges
• Lack of community participation in CSR activities
• Need to build local capacities
• Issues of transparency
• Non-availability of well organised non-
governmental organisations
• Visibility factor
• Narrow perception towards CSR initiatives
• Non-availability of clear CSR guidelines
• Lack of consensus on implementing CSR
“Corporate Social Responsibility
Practices in India sets a realistic agenda
of grassroots development through
alliances and partnerships with
sustainable development approaches. At
the heart of solution lies intrinsic coming
together of all stakeholders in shaping
up a distinct route for an equitable and
just social order....“ Indu Jain, Times of
India Group