DEPARTMENT SEMINAR

CORPORATE SOCIAL RESPONSIBILITY

CHAIRED BY:

SIDDARAMU B.PRESENTED BY:

ANKUR MISHRA

EVERY YEAR A MILLION CHILDREN NEED TO BE SAVED BEFORE THEY ARE A MONTH OLD AND ANOTHER MILLION BEFORE THEY ARE 5 YEARS OLD.

4 OUT OF 10 NEED TO BE GIVEN FOOD

INDIA IS THE HOME FOR LARGEST NUMBER OF ILLITERATE AND POOR

A QUARTER OF POPULATION NEEDS TO BE TAKEN OUT OF DARK

BY 2020 INDIA WILL BE 3RD LARGEST ECONOMY IN THE WORLD. (OECD)

THIS WILL PUT EXTRAORDINARY PRESSURE ON OUR INFRASTRUCTURE AND NATURAL RESOURCES.

“It takes 20 years to build a reputation and only 5 minutes to

ruin it” (WARREN BUFFET)

INTRODUCTION

Corporate Social Responsibility(CSR) is a concept which has become dominant in business reporting. Every corporation has a policy concerning CSR and produces a report annually detailing its activity.

DEFINATIONCSR is a concept whereby companies integrate social and environmental concern in their business operation and their interaction with their stakeholder on voluntary basis. (European Commission)

CSR refers to transparent business practice that are based on ethical values, compliance, with legal requirements, and respect for the people, communities and the environment.

TYPES OF CSR

1. ETHICAL CSR

2. ALTRUISTIC CSR

3. STRATEGIC CSR

PRINCIPLES OF CSR Legal Compliance Principle

Adherence to Customary International Laws Principle

Respecting Related Stakeholders lefts Principle

Transparency Principle

Respect for Human lefts Principle

RELEVANCE OF CSR

1. CHANGING SOCIAL EXPECTATIONS

2. INCREASING AFFLUENCE

3. GLOBALIZATION

EVOLUTION OF CSR IN INDIA

The term came into existence in 1953, in HR Bowen’s “Social Responsibilities of the Business”.

The First PhasePre Industrialization –Till 1850

The Second PhaseDuring the independence movement

The Third PhaseThe third phase of CSR (1960–80) had its relation to the element of "mixed economy"

The Fourth Phase1980 until the present

MOTHER OF CSR

CSR has been part of the Tata Group ever since the days of Jamshedji Tata.

What the group has done for all employees and society.. Granted scholarships for further studies abroad in 1892.

Established welfare department in 1917 and many more..

In 2008,Tata steel spend Rs 200 crore a year on CSR and the TATA group as a whole spent Rs 800-1000 crore on that per annum.

First company to start Social Audit.

MILLENIUM DEVELOPMENT GOALS AT THE HEART OF CSR (Source: United Nation Millenium Project)

Eradicate extreme poverty and hunger.

Achieve universal Primary education.

Promote gender equality and promote women.

Reduce child mortality.

Conti…

Improve maternal health.

Combat HIV/AIDS, Malaria and other Fatal Diseases

Ensure environmental sustainability.

Develop a global relationship

BENEFITS OF CSR

Increased employee loyalty and retention.

Increased quality of products and services

Increased customer loyalty.

Increased reputation and brand image.

Product safety and decreased liability.

DIMENSIONS OF CSR

ETHICAL RESPONSIBILITY

LEGAL RESPONSIBILITY

ECONOMIC RESPONSIBILITY

DISCRETIONARY RESPONSIBILITY

CHALLENGES IN CSR

The Shrinking Role of Government

Demand for Greater Disclosure

Increased Customer Interest

Growing Investor Pressure

Competitive Labor Market

Supplier Relation

WHY DO COMPANIES DECIDE TO GET ENVOLVED IN CSR AND HOW THEY ARE BENEFIT?

In order to stay productive, competitive and relevant in a rapidly changing business world, they have to become socially responsible.

Companies want to increase their ability to manage their profits, risks and to protect the reputation of their brands.

COMPANIES WITH CSR ACTIVITIES

AXIS BANK

BHARAT PETROLEUM CORPORATION

INFOSYS

TATA CONSULTANCY

MAHINDRA &MAHINDRA

DATA and FIGURETop PSU’s Spending on CSR (Source:Lok Sabha unstarred question)

S. No. Name of the PSU’s Year Total funds allocated for CSR (in crores)

Fund Utilized for CSR (in crore)

1. Coal India Limited 2010-112011-12

262.28553.33

152.3377.33

2 Indian Oil corporation Limited

2010-112011-12

131.1195360

128.4182.73

3 GAIL (India) Limited

2010-112011-12

69.5482.77

63.9154.43

4 Bharat Electronics Limited

2010-112011-12

2.742.25

2.082.36

COMPANIES BILL ACT, 2013, Clause 135

The first Companies Act was passed in 1956

The companies bill act, 2013 was approved by Rajya Sabha on 8th August, 2013

The Bill has 29characters, 400 clauses as against 658 sections in the existing Companies Act, 1956 & 7 schedules.

CLAUSES FOR CSR UNDER COMPANIES BILL ACT,2013

Every company having net worth of Rs500crore or more, or turnover of Rs1000crore or more or a net profit of Rs5crore or more during any financial year is required to constitute a corporate social responsibility committee.

2% of the average net profit of 3 preceding financial year to be spent towards CSR activities.

Disclosure of CSR policy on company’s website.

The remuneration of a director of a company, not more than 5% of the net profit.

CORPORATE SOCIAL RESPONSIBILITY MUST NOT BE DEFINED BY TAX PLANNING STRATEGIES ALONE ,RATHER IT SHOULD BE DEFINED WITH FRAME OF A CORPORATE PHILOSPHY, WHICH FACTORS NEEDS COMMUNITY AND THE REGION IN WHICH CORPORATE ENTITY FUNCTION-

FORMER PRIME MINISTER DR. MANMOHAN SINGH

CONCLUSIONThe concept of corporate social responsibility is now firmly rooted on the global business agenda. But in order to move from theory to concrete action, many obstacles need to be overcome.

CSR is the heart and soul of modern corporations and is an important standard fot corporate governance.

THANKYOU

For more details: ankur1989@yahoo.com