INTEGRATION OF CORPORATE SOCIAL …internationalseminar.org/XVII_AIS/TS1_PDF/7.Hitesh Borana.pdf ·...

XVII Annual International Seminar Proceedings; January, 2016

ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM 05

INTEGRATION OF CORPORATE SOCIAL RESPONSIBILITY AND

SUSTAINABLE DEVELOPMENT: STEP TOWARDS REAL

INFRASTRUCTURE AND ECONOMIC DEVELOPMENT

Mr. Hitesh Borana

Student

DES Navalmal Firodia Law College

Fergusson College Campus, Pune – 411004

Abstract

Purpose – Theoretically, much have been done to make Indian corporate aware of social

responsibility, sustainable development and Governance as an important segment of their

business activity and ultimately economic development but very little has been achieved as yet.

The main aim of this research paper is to analyze how the corporate social responsibility

activities and sustainable development can be integrate with each other in the overall

development of infrastructure and economy and ultimately the social upliftment. The research

paper elucidate practical complications and implementation of CSR and Sustainable

development from legislations like companies act, income tax and accounting treatment point of

view.

Design/methodology/approach – A survey instrument comprising CSR and sustainable

development term was developed which is based on concept of overall developmental approach.

Through personal survey and interactions, data was collected from corporate, academicians,

consultants and other professionals and experts, which is randomly selected.

Findings – The research proposes to use qualitative research tools to empirically support the

arguments of this research paper that successful companies in India do value social responsibility

and Sustainable development.

Research limitations/implications – The accuracy of the analysis is dependent upon the

availability and accessibility of information and data collected from selected sources.

Practical implications – The results of this study would help corporate, government authorities

and ultimately society at large to understand the integrated terms of CSR and sustainable

development, to facilitate its adoption and implementations.


ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM Page 106

Originality/value – This study is probably considered as one of the most important and

systematic to determine the environment of CSR and Sustainable Development approach in

Indian Corporate scenario. It offers a significant and beneficial source of information to

Corporate, Government Authorities and other stakeholders.

Keywords – Corporate Social Responsibility, Sustainable Development, Governance,

Infrastructure and Economic Development

Paper type – Research Paper

INTRODUCTION

In recent years, the discussion about corporate social responsibility and sustainable development

has been main focus of corporations around the world. In context of change and globalization,

business enterprises are increasingly asked to pursue their objective paying attention to the needs

of the stakeholders whose well-being depends on the way enterprises manage their core

activities. In the competitive world, corporate are struggling with a new responsibility, which is

to meet the needs of the present generation without compromising the ability of the next

generations to meet their own needs. Organizations are being called upon to take responsibility

for the ways their operations impact on the societies at large. Even the organizations worldwide

are adopting vision and mission statements and their governance activities related to corporate

social responsibility (CSR) and sustainable development

Generally, the conception of CSR involves several matters related to a company‟s behavior in its

social environment beyond the exclusively economic realm with which companies are

traditionally associated with the social responsibility concept. CSR involves addressing the legal,

ethical, commercial and other society‟s expectations and making decisions that fairly balance the

claims of all key stakeholders. It is understood to be the key way a company achieves an

integration of economic, environmental and social imperatives while at the same time addressing

shareholder and stakeholder expectations, on a voluntary basis. Sustainable Development is

considered as broad concept that balances the need for economic growth with environment

protection and social equity. Sustainable development when incorporated by the organization is

called corporate sustainability and it contains, like sustainable development, all three pillars:



economic, ecological and social which is similar to CSR concept of today‟s time. Section 135 of

Companies Act, 2013 and Schedule VII of the Act and Companies (Corporate Social

Responsibility) Rules 2014 deals with the provisions of Corporate Social Responsibility. The

government has mandated the CSR provisions for companies who fall under the CSR

applicability criteria under the Act. That is the reason many corporate spread across India are

now deeply involved in CSR which is now mandatory. Companies have to spend the amount

towards CSR activities provided in the Schedule VII of the Act. It implies some kind of

commitment, through corporate policies and action.

Over the last decades, Sustainability has become very popular in modern economies at the

corporate level. In today‟s scenario, the sustainability has strengthened the relationship between

the Sustainable Development and CSR. After a long deliberations and researches on the CSR and

Sustainable Development, today it can be said that the CSR and Sustainable Development are

side of same coin. The role of both the concept is pivotal in current scenario which has a core

impact on the social development, environment sustainability, infrastructure development and

economic growth through various dimensions of both the terms.

OBJECTIVES OF THE STUDY

The objectives of the study are as under:

To study the importance of today‟s Corporate Social Responsibility and Sustainable

Development

To enumerate the various approaches for the promotion and adoption of CSR in various

business sectors and its implementation

To elucidate the impact of the activities of CSR from different legislations point of view

To summarize and to give suggestions for smooth and proper implementations of elements of

integrated CSR and Sustainable Development in India

RESEARCH METHODOLOGY



The researcher has adopted the doctrinal method in order to study the integration of CSR with

Sustainable Development in Indian context. The research paper is based on the primary data

from personal survey and interactions with academicians, consultants and other professional and

secondary data sourced from journals, magazines, articles and media reports. Looking into

requirements of the objectives of the study the research design employed for the study is of

descriptive type. Available data was extensively used for the study.

CONCEPT OF SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL

RESPONSIBILITY

In today‟s time, Sustainable Development and Corporate Social Responsibility are considered as

the sides of same coin. In contemporary socio-economic scenario the concept of Sustainable

Development and Corporate Social Responsibility has become widely integrated with

competitive business world. The rationale for Sustainable Development and CSR in the business

enterprises has been articulated in a number of ways. In essence, it‟s about building sustainable

business climate with healthy economies, markets and communities. The Conception of

Sustainable Development and CSR play an important role in today‟s competitive corporate

world.

SUSTAINABLE DEVELOPMENT

The concept of 'Sustainable Development' can be traced back as early as in 1972 in the

Stockholm Conference. Actually before that in 1987, the World Commission on Environment

and Development defined „Sustainable Development‟ as an ethical concept and has become the

major definition of 'Sustainable Development' which is a development that meets the needs of

the present without compromising the ability of future generations to meet their own needs. It

basically contains two key concepts; the concepts of “needs”, in particular the essential needs of

the world‟s poor, to which overriding priority should be given; and the idea of limitations

imposed by the state of technology and social organization of the environments ability to meet

present and future needs.

The goals of economic and social development must be defined in terms of sustainability in all

countries developed or developing, market-oriented or centrally planned.” cited in “Our



Common Future” (World Commission on Environment and Development, 1987). Whereas

Elkington goes more into detail when arguing that companies should not only focus on

enhancing its value through maximizing profit and outcome but concentrate on environmental

and social issues equally. In 1972, United Nations Conference on the Human Environment in

Stockholm in gave birth to the first true notion of sustainable development, which was called

„eco development‟ in those days. It leads to the establishment of many national environmental

protection agencies and the United Nations Environment Programme (UNEP) Further, in the

United Nations Conference on Environment and Development in Rio de Janeiro 1992 and the

World Summit on Sustainable Development, Johannesburg on Sustainable Development 2002

and United Nations Conference on Sustainable Development also known as Rio+20 in Rio de

Janeiro has developed Sustainable Development concept more deeply. Historically, there are

many initiatives in favor of sustainable development. Today, the concept of sustainable

development has been accepted all over the world.

CORPORATE SOCIAL RESPONSIBILITY

Defining corporate social responsibility is one of the major challenges to the field for both the

corporate and academic worlds. Corporate Social Responsibility (CSR) is a management concept

whereby companies integrate social and environmental concerns in their business operations and

interactions with their stakeholders. Traditionally, CSR in India has traditionally been seen as a

philanthropic activity, but latter it goes on developing and was considered as the objective of

Sustainable Development. Corporate Social Responsibility as a concept has existed in India since

ages and plays an important role in a developing country like ours. The organizations have

realized that besides profit making, a corporate must involve in trust building by working upon

its societal relationships and environmental issues. Also, companies which genuinely adopt the

principles of socially responsible behavior are preferred and favored by the society at large, of

which the company forms an integral part i.e. Society. Hence, one can say that CSR is basically

an act of moral, social and business responsibility with the aim to protect, preserve and nurture

human values and promote socio-economic welfare in the society. It is evolved over a period of

time when in the 19th

century, the industrial families like Tata, Birla, Godrej, etc. had an

inclination towards such activities for societies. These giant corporate involved themselves in a



variety of CSR activities without any legal requirements and view it in the context of building

goodwill, reputation and brand building.

Today, in the global context, CSR is more developed in par with the Sustainable Development.

CSR is generally understood as being the way through which a company achieves a balance of

economic, environmental and social imperatives while at the same time addressing the

expectations of shareholders and stakeholders. It aims to embrace responsibility for corporate

actions and to encourage a positive impact on the environment and stakeholders including

consumers, employees, investors, communities, and others.

In India, Section 135 of the Companies Act, 2013 and Schedule VII of the Act and rules made

thereunder mandate the provisions for CSR for companies registered under the said Act. The

introduction of CSR provision in the Companies Act is a welcome step and all companies which

satisfy the CSR criteria will have to undertake CSR activities under the new CSR regime. This

step will boost much required social projects with some professional management of the private

sector.

DIMENSIONS OF CSR AND SUSTAINABLE DEVELOPMENT

CSR and Sustainable Development have been integrated on the basis of eleven distinct

dimensions and responsibilities of corporate is based this dimensions which will have a core

impact on the real infrastructure and economy. These include Stakeholders, Society, Legal

Compliance, Governance, Economics, Environmental, Practices and Value, Skill development,

Education, Quality Standard/ Assurance, Voluntary.

STAKEHOLDERS

Without Stakeholders, organization cannot be exist. Stakeholders are considered as the core of

any organizations. In a business context, customers, investors and shareholders, employees,

suppliers, government agencies, communities, and many others who have a „stake‟ or claim in



some aspect of the company‟s products, operations, markets, industry and outcomes are known

as Stakeholders. They provide resources that are more or less critical to firm‟s long term success.

The organizations have the responsibility towards the stakeholders which includes ensuring

protections of their interests, building strong stakeholder-organizations relationship, etc.

Stakeholders play an important role in improving the economic and social conditions of the

companies and ultimately contribute towards the economy of the nation.

SOCIETY

Society is again is the core for the existence of the Organizations. Every broad step of the

organization and society impact on each other whether directly or indirectly. Under Corporate

Social responsibility also, Social means everything dealing with the people of society. Every

organization has very wide scope and responsibility towards the society. The major activities of

the organization include protecting the rights of the people in the society, providing quality

product or service, protection of environment where the society exists, providing the

employment opportunity, strengthening the weaker sections o the society or social unpliftment,

etc.

LEGAL COMPLIANCE

Legal compliance is basically where an organization ensures that it observes and complies with

the applicable external statutory laws and regulations. And it also includes the compliance of the

internal policies, procedures and codes o conduct of the organization. Compliance must become

part of the overall business strategy of any organization, no matter how big or small it is. Proper

compliance helps in smooth run of the organizations and ensures the sustainability of the

originations.

GOVERNANCE

Governance is very general concepts that can be refer to all type of organizations. Governance is

the action and processes by which stable practices are followed by the originations. Following of

Good Governance by the organization will have a positive impact on it in terms of corporate

sustainably, profit maximizations, valuation and reputations, etc. Some of the important



characteristics of the good governance are accountability, transparency, following of rule of law,

responsive, responsibility, effective and efficient, etc.

ECONOMICS

In every nation, organizations play a crucial role in the development of the economy. Corporate

have strong responsibilities towards the contribution and development of the economy of the

country, to ensure best utilization of national resources taking consideration the future need of

the society, working in accordance with the national legal statues, etc. The economic dimension

is strongly connected with the social and environmental dimensions.

ENVIRONMENTAL

Organizations have the strong responsibilities towards the environment in which it exist.

Environment should be centre focus of any organizations. It is the duty of organizations to work

on the keeping healthy environment. Environment can be protected by the organizations by

establishing industries and factories in far away from the urban and semi-urban areas,

establishing the sewage treatment plant for removal of industrial waste in any water body,

reduction of noise through using of latest machineries which are efficient and effective, using

eco friendly production system, etc.

PRACTICES AND VALUE

Practices and Value are correlated term which makes the corporate sustainable. Regular practices

of the organizations in the positive manner like good governance practices, ethical practices,

decision making practices, effective and efficient strategic practices and such other will have

positive impact in enhancing the strong values of the corporate

SKILL DEVELOPMENT

Currently, Skill development is a global concern and it is considered in important factor in the

development of the society and economy. Corporate are playing a more active role in meeting

the need of Skill development in the country. Skill development is basically the development of

the young human resources which will ultimately help in the growth of the economy



EDUCATION

Corporate play a significant role in the development of the education sector of the nations which

solve the problem of illiteracy and raise the standards of the society and which ultimately

contribute the development of the nation from the social and economic perspective. There are

many institutions and organizations like Infosys, Azim Premji foundation, Indian oil, etc who

came forward for CSR programs towards education development in the nation

QUALITY STANDARD/ ASSURANCE

Quality Standard and Assurance is the utmost important term in the today‟s commercial world.

Organizations should carry out quality process and maintains the standards without

compromising with the society and environment and provide the assurance of the quality to the

people who consume their products or services.

VOLUNTARY

Companies should be voluntarily involved in the CSR activities even if they not bound by the

CSR provisions under the Companies Act 2013. They should act beyond legal obligations such

as spending on CSR activities, following of ethical and moral values, making contribution to the

need of the society in anyway, assisting in the rehabilitation of disasters victims, etc.

INTEGRATION OF CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABLE

DEVELOPMENT

Today, Corporate Social Responsibility is a global and popular thought in parallel with the

Sustainable development. Basically, there is a nexus between ultimately objective of the CSR

and Sustainable development. Earlier, Sustainable Development was considered as the universal

set and CSR was a sub-set of this universal set, but in the modern corporate era of new



governance system, the CSR and Sustainable Development is considered as par in terms of its

broadness and scope. To achieve the objective for the real infrastructure and economic

development, the CSR and Sustainable development should be integrated in such a way that it

fulfills the objective.

Based on the analysis and need of the modern era of corporate and society, this research has

advanced a new model beyond the concept of CSR and Sustainable Development which will be

called as „Integration Model of Corporate Social Responsibility and Sustainable Development.‟

This model has taken into considered eleven distinct dimensions or elements such as

Stakeholders, Society, Legal Compliance, Governance, Economics, Environmental, Practices

and Value, Skill development, Education and Quality Standard/ Assurance, Voluntary, to

evolved the new advanced model. If all these dimensions or elements are integrated into each

other then it will give overall impact on the four crucial factors i.e. Infrastructure development,

Economic Development, Social development and Environmental Sustainability. The new model

has been presented below in the diagrammatic form as to get the clarity about the model.


ISBN no. 978-81-923211-8-9 http://www.internationalseminar.in/XVII_AIS/INDEX.HTM 5

Integration Model of Corporate Social Responsibility and Sustainable Development

INTER-RELATIONSHIP OF THESE FOUR FACTORS

The above model make strong impact on the four factors i.e. Infrastructure development,

Economic Development, Social development and Environmental Sustainability, which are inter-

related with each other.



SOCIAL DEVELOPMENT

Social basically means everything dealing with the people of the society. Society is one of the

most crucial parts of any business organizations. Any action of the organization makes direct or

indirect impact on the society and vice versa. If the elements of the model are properly

integration in best manner then it will have positive and strong impact on the development of the

society. This development requires resources such as capital, technology, and the supporting

infrastructure. Social Development will help the society to better realize its aims and objectives.

Through this factor it is basically engaging with the community and exemplifying corporate

responsibility. The social development will include the improvement in the safety and health of

the people, consideration of human rights, labor relations, rising of standard of the people and of

course overall upiftment of the society.

ENVIRONMENTAL SUSTAINABILITY

Environment is an again a strong center focus for any organizations. Environmental

sustainability involves making decisions and taking action that are in the interests of protecting

the natural world, with particular emphasis on preserving the capability of the environment to

support human life and of course living being of the environment. Today, Corporate are realizing

the full impact that businesses and individuals can have on the environment. Any activities and

action of the corporate directly or indirectly impact on the environment in which it exists.

Therefore, environmental sustainability is considered as one of the most important factors of the

integrated model.

REAL INFRASTRUCTURE DEVELOPMENT

Today, Real Infrastructure Development is one essential and core requirement of any economy

of the nation. Here, real infrastructure development basically means the development of the

infrastructure alongwith the development of the society and environment as well and not

harming them while focusing only on the development of the economic development. If all the

dimensions of the model are properly integrated then it will lead to the development of the

infrastructure development which is not only the development of infrastructure but also the



development of the other factors in the model like social development and environmental

development

ECONOMIC DEVELOPMENT

Economic development, achieved largely through productivity growth, is very important to both

developed and developing nations. Concerning the path of development the appropriate strategy

for any country depends not only on its objective economic situation but also on its government

policies and national views regarding the appropriate role of the state. The role of the state in

economic development began to change dramatically with the advent of the Industrial

Revolution. Corporate assumed a significant role in the development of the economy. The active

and dominant participation by the Corporate in economic activities resulted in the creation of a

protected, highly-regulated economic environment. Today, Corporate are playing crucial role in

the development of the economy internally and externally. Practically, Corporate has contributed

a lot to the development of the economy and still contributing and that is the basic that today

Indian economy is one of the fastest growing economies in the World. Again, if all the

dimensions of the new model are properly integrated then it will lead to the economic

development which is today it is utmost objective of any economy of the country.

CSR IN INDIA

The new era for corporate had began in India after the enactment of Companies Act, 2013 which

replaced the old law. The Act aims to improve the governance, transparency and accountability

in Indian Corporate. First time in the history of Indian Corporate law, the new act provides the

mandatory provisions for the Corporate Social Responsibility in India, previously CSR has been

voluntary contribution. In India, before the enactment of new Companies Act, 2013 the Ministry

of Corporate Affairs has notified Corporate Social Responsibility Voluntary Guidelines, 2009

which recognizes that CSR is not philanthropy and CSR activities are purely voluntary that

companies would like to do beyond any statutory requirement or obligation. The voluntary

guidelines provides that each business entity should formulate a CSR policy to guide its strategic

planning and provide a roadmap for its CSR initiatives, which should be an integral part of

overall business policy and aligned with its business goals and objectives. It recognized world

over that the integrating social, environmental and ethical responsibilities into the governance of



businesses ensure their long term success, competitiveness and sustainability. CSR should be

accepted as an organizational objective. The concept of CSR is much more than the philanthropy

approach. CSR becomes an integral part of its business process. CSR is a much more holistic

approach to business, which is designed to enhance corporate success because of its relevance,

rather than represent something unconnected to an organization‟s core business. There are

various companies in India, engaged in CSR activities which focused the areas like upliftment of

society like TATA group, Infosys, etc.

CSR IN STATUE

India is the first country to have Corporate Responsibility in Statute. The new Indian Companies

Act 2013 has introduced several new provisions which change the face of Indian corporate

business. One of such new provisions is Corporate Social Responsibility (CSR). The concept of

CSR rests on the ideology of give and take. Companies take several resources in the form of raw

materials, human resources, etc., from the society. By performing the task of CSR activities, the

companies are giving something back to the society. Section 135 of Companies Act 2013 and

Companies (Corporate Social Responsibility) Rules 2014 deals with the CSR provisions for the

companies registered under the Act, which has come into effect from 1st April 2014. India is the

first country to have corporate social responsibility legislation, mandating that companies give

2% of their net profits to charitable causes. Schedule VII of the Act law has listed out a wide

spectrum of activities under CSR, which cover activities such as promotion of education, gender

equity and women‟s empowerment, combating HIV/AIDS, malaria and other diseases,

eradication of extreme poverty, contribution to the Prime Minister‟s National Relief Fund and

other central funds, social business projects, reduction in child mortality, improving maternal

health, environmental sustainability and employment enhancing vocational skills among others.

Further for spending on the CSR activities, the companies can carry out these activities by

collaborating either with a NGO, or through their own foundations and trusts or by pooling their

resources with another company. The new law also entails setting up of a CSR committee which

shall be responsible for decisions on CSR expenditure and type of activities to be undertaken.

CSR committee shall consist of three or more directors, with at least one independent director

whose presence will ensure a certain amount of democracy and diversity in the decision-making



process. Through this provision for the CSR in the Statue, it can be said that the Corporate are

agent of the transformation of the society. The law is very significant, because India is at the

threshold of demographic dividend, and there is an urgent need for the creation of human and

physical capital to reap its rewards. Investment in education, health, skill development and social

infrastructure will enhance capabilities of the youth by improving their nutritional, skill and

educational level, which in turn will better their employment prospects and over all development

of the society and economy of the country.

REPORTING

Under Section 134 of the Companies Act, 2013 and rules made therunder the companies who are

attracted with the CSR provisions is required to disclose in the board‟s report their annual

expenditure on the CSR activities. If the companies have not spend any amount on the CSR

activities during the financial year then the company is bound to provide the reason for not

spending on the CSR activities in the board‟s report. However there is no such penalty or

prosecution for not spending on the CSR activities even if they are following under the

applicability criteria of CSR provisions and this can be considered as one of the loophole where

the corporate can take the advantage.

CSR UNDER INCOME TAX

Under the Income Tax, 1961 special provisions should be there for deductions and exemptions

for spending on CSR activities. If special provisions under Income Tax Act are provided then

CSR can be more effectively and efficiently implemented in letter and spirit. Under Income Tax,

spending on some of the activities provided under Schedule VII of the Companies Act, 2013,

deductions are provided which are normal provisions of the Income Tax and not special

provisions. Foe CSR activities like Ganga Fund and Swachh Bharat kosh 100 percent deduction

is allowed under the Income Tax Act. But till date Ministry of Corporate Affairs (MCA) and

Central Board of Direct Tax (CBDT) has not issued any special tax treatment for the CSR

expenditures.

If the government provides tax deductions and tax exemptions on the CSR expenditures then it

will considered as the revenue loss to the government but if we considered the same from



different angle then it will definitely contribute the society and economy more than the revenue

loss to the government. If the government come out with clarity of the tax treatment on the CSR

expenditure then it will definitely increased the CSR spending on the CSR activities as provided

in the Schedule and ultimately it will contributed to the real infrastructure development and

economic development.

KNOWLEDGE MANAGEMENT

Knowledge management is basically organizing an organization‟s information and knowledge

holistically in a particular database for the overall use of it. Many companies still does not know

what exactly Corporate Social Responsibility, what is the objective of CSR and what is

happening in the CSR. And even if they know what is CSR then some companies are there who

does not know what is happening in CSR insider their own organizations. There is no proper data

or information regarding the projects under the CSR at the nation level. If proper database is

available then it can be easily identify that which organization is working on which projects

under the CSR. Many companies carried out CSR activities on the particular areas only but

majority of the left with the other areas specified under Schedule VII of the Companies Act

2013. Regarding the Non-Profit Organizations there is no data available in the Ministry of

Corporate Affairs (MCA) regarding their objective, specialty and activities of these

organizations. Unless the proper database is available on organizations in which area of CSR

activities it is engaged, till then the core objective of the CSR cannot be achieved fully. In align

with the database system awareness of the CSR and its importance should be provided through

the database system

Indian regulations are still weak on evidence generation as well as sensing mechanisms of CSR.

Current time is full of opportunity for the real infrastructure and economic development through

the CSR activities of the companies at the nation level and for the same, if proper data is

available in the centered database then objective of CSR can also be achieved in letter and spirit.



SUGGESTIONS

Today globally, CSR concept has became very wide in par with Sustainable Development and

previously it was considered as an objective of Sustainable Development. Now, both the CSR

and Sustainable Development should be integrated in such a way, which is mentioned above in

this paper, that it should achieve the objective of modern CSR with the overall development of

infrastructure and economy and ultimately the social upliftment. Through CSR an opportunity

comes into picture whereby India can make a positive impact on every community of the society.

Under the Companies Act 2013, it was an honest attempt by the legislature to meet the India‟s

social need. As already mentioned that theoretically much have been achieved but in practicable

little has been achieved. While implementation of CSR activities, practical complications also

arise and due to which real objective of CSR cannot be achieved. So based on this research paper

and analysis of the author, some important suggestions noted are;

Corporate Social Responsibility should be considered in par with the Sustainable

Development and it should be integrated with each other to achieve the overall purpose of the

CSR.

Irrelevant of applicability criteria provided under the Companies Act 2013 and rules made

thereunder, every organization should spend minimum amount of annual expenditure for the

CSR activities in order to achieve the real aim of the CSR in letter and spirit.

There should be amendment in sub-section (1) of Section 135 in terms of applicability

criteria for constitution of CSR committee, where the networth of rupees five hundred crore

and turnover of rupees one thousand crore, should be reduced as to include more companies

in the ambit of Corporate Social Responsibility provisions under the Act.

For CSR, public & private partnership can also be a better tool for effective implementation

of CSR activities and the guidelines for the same can be notified by the government

For effective implementation of CSR and to come out with the complications of CSR scheme

there should separate monitoring authority is required to be created under the MCA

government of India who will monitor (but not limited to) the activities of CSR in letter and

spirit



For spending on CSR activities provisions for exemption and deduction under Income Act

should be provided

There should be special provision should for accounting treatment be there under the

companies (Indian Accounting Standards) 2015

Last but not the not the least, CSR should be not be applicable only to companies, it should

be also applicable to other body corporate like Limited Liability Partnership (LLP) with

certain applicability criteria and it may also extend to large partnership firm, like how the

Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT) provision is applicable

under the Income Act 1961.

CONCLUSIONS

Sustainable Development and Corporate Social Responsibility are sometimes are considered as

synonyms of each other, but they are not. In reality they can be considered as one and other sides

of the Coin. Through the integration of the Sustainable development and CSR it lead to the

growth of real infrastructure and economic development and simultaneously it will also impact

on the other factors of the integrated model i.e. Social development and Environmental

sustainability. Under the law, the CSR provision in the new Companies Act has the potential to

bring novelty in the corporate field and institutional philanthropy in India. Through the above

mentioned integrated model and suggestions CSR can be practically implemented in India and

ultimately the core objective of the CSR will also achieved. However the dimensions of the

integrated model must be given broader meaning in context with the activities mentioned in the

Schedule VII of the Act. Through this integrated model CSR will bring an sustainable changes

around a company‟s eco-system and CSR should be seen as a mix of good governance and

corporate philanthropy for a company but with a business and financial side to it as well.

Therefore, it can be said that the integration of the CSR and Sustainable Development will escort

to the overall development of infrastructure and economy and ultimately the social development.



REFERENCES

1. Sustainable Development In India: Perspectives, available at

http://www.moef.nic.in/divisions/ic/wssd/doc4/consul_book_persp.pdf

2. Indian Council for Sustainable Development (http://www.icsusdev.org/)

3. 5 Keys to Sustainable Development in India, available at

http://www.wri.org/blog/2013/04/5-keys-sustainable-development-indian-cities

4. Economic Aspects of Sustainable Development in India, available at

http://www.un.org/esa/agenda21/natlinfo/countr/india/eco.htm

5. India: Corporate Social Responsibility - Indian Companies Act 2013, available at

http://www.mondaq.com/india/x/366528/Corporate+Governance/Corporate+Social+Resp

onsibility+Indian+Companies+Act+2013

6. India and Sustainable Development Goals – TERI, available at

http://www.teriin.org/policybrief/docs/sdg2013.pdf

7. Handbook on Corporate Social Responsibility in India, available at

http://www.pwc.in/assets/pdfs/publications/2013/handbook-on-corporate-social-

responsibility-in-india.pdf

8. http://economictimes.indiatimes.com/topic/corporate-social-responsibility

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