Approved activities for CSR
• Measures for the benefit of armed forces
veterans, war widows and their dependents
• Training to promote rural sports, nationally
recognized sports, Paralympic sports and
Olympic sports
• Contribution to Prime Minister’s National Relief
Fund or any other fund set up by the Central
Government for socio-economic development
and relief and welfare of the SC/ST, other
backward classes, minorities and women.
Approved activities for CSR
• Contributions or funds provided to technology
incubators located within academic institutions
which are approved by the Central Government
• Rural development projects
• Contribution to any political party (directly/
indirectly) will not be considered as a CSR
activity
Disclosure
• The company shall disclose contents of the CSR
policy, overview of projects undertaken with
particular emphasis on local area development,
in the web-site if any, and compulsorily in the
annual report.
• The company shall also disclose any amount
due and unspent and the reasons for the same
in its Board report.
Non - Compliance
• Failure to constitute CSR committee - an
offence
• Failure to spend 2% not an offence – has to be
reported with reasons
• Unspent money carried forward.
Exit CSR
• Once in – no escape for 3 years !
• Company not satisfying criteria for 3
consecutive financial years goes out of 135
purview.
• Meaning unless you miss the mile stones for 3
years in a row you are mandated.
CRITICS say
• Government shifting their obligation to private
parties.
• It is like another tax
• These acts have to be voluntary and not forced
upon.
• However some feel it is a timely reminder to
give back some thing to the society.
Trouble Spots
• Companies can spend their CSR funds by
themselves or through a registered trust /
society / Sec 8 company established by itself or
its holding or subsidiary or associate company.
NO TRACK RECORD NEEDED.
• Third Party Trusts / Society / Sec 8 company has
to have 3 years experience in similar activity.
• Funds transferred to trusts but not spend ? No
questions !
Trouble Spots
• Environment Protection – includes solar power
generation as it reduces carbon emissions and
aides environment protection.
• Company can set up a solar power plant for captive
consumption or for sale.
• Feeding your own self and family and call it ANNA
DANAM ? ( FREE FOOD DISTRIBUTION )
• Can not supply to employee quarters free or at
subsidized price.
• Solar companies expanding capacities – NOT
considered : Business as Usual
Good guys don’t need laws
Source: Indian Companies in CSR activity voluntarily
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Adani Enterprises 5.28%
Jindal Steel and power 5.26%
Adani power 4.89%
Reliance Power 3.75%
National Aluminium Company 3.40%
Ambuja Cements 3.22%
Tata Motors 1.09%
Partners in change (www.picindia.org)
HUMAN SOCIAL RESPONSIBILTY
• At the end of the day ,it is all about how
responsible we all feel about our planet, our
country, our stakeholders, our community of
well wishers and ourselves.
• Which brings us to the ancient Indian way of
doing business ,
YOU WIN, I WIN ,
as opposed to the 20th century paradigm of I
WIN , YOU LOSE.
Emptying the ocean with a spoon
• Prof Wayne Dunn, a Professor of Practice in CSR
with more than 30 years experience in CSR in
McGill University, Canada says
“CSR is a complex, evolving and exciting area that
is finding new ways to create and distribute
value. The language and frameworks are
evolving rapidly and helping executives,
professionals, and academics with practice and
understanding . We are all learning and none of
us is an “expert”.
Thank You
B.V.S.Prakash
prakash@nhanceindia.com
CEO, Nhance CSR , a Division of Nhance India Solutions
www.nhancecsr.com