Blog Details

Author - Associate Runa Jasia

CSR stands for Corporate social responsibility. It is a type of international private business self-regulation. In general terms, it is a business model that helps a company contribute to society and their community. 

While at one point it could have been called an internal organizational policy, with the new international laws in place that has changed. It is a form of corporate self-regulation but it has also moved towards a mandatory scheme. 

Few names of the company who have successfully done CSR initiatives are:

• Infosys: They provide IT education and skills. They use natural resources very wisely.
• ITC (India Tobacco Company): They have focused on social aspects and values as their primary mission. It has created balance with their stakeholders and their social sustainability very well.
• Tata Motors: They have taken initiative on the topics of social and environmental welfare like primary education, women empowerment Etc. 

CSR incorporates sustainable development into a business model. CSR helps in creating a positive image within the society. Any company can provide employment. But it matters what the primary mission of the company towards the society apart from gaining profits.

It is very important to have a good social conscious image. Clients, customers, investors or employees have started to give importance to the CSR efforts made by a company. 

The more a company contributes towards the social, economic and/or environmental issues, the better CSR model they sustain. 

For a consumer it is not only about buying a product but also how much good service that brand provides to their issues. People can buy any product but they also choose the most trusted names from the list only because they believe that those companies will provide support if they will feel any challenge or problem with their products. According to a survey nearly 90% of the customers or consumers purchase a product from a company because of the fact that they cared about their issues.

For a client it is important to get the quality of work they are looking for. But it is also important for them to know what CSR initiative that company has taken for society as it displays that they care about the society and community. They want to know about their business practices, beliefs, and ethics. The way people communicates with a client also matters a lot. It reflects the cultural and social values of an organization. Loyalty, timely delivery Etc. are plays important role in maintaining relationship with the clients.

For any employee it is important how a company responds to their problems. 

CSR is a way to achieve balance in economic, social and environmental sectors. CSR includes labor standards, working conditions Etc. CSR differs from company to company. 

In the official website of the Indian government: http://www.mca.gov.in/

The Companies Act, 2013

This Policy shall be read in line with Section 135 of the Companies Act 2013, Companies (Corporate Social Responsibility Policy) Rules, 2014 and such other rules, regulations, circulars, and notifications (collectively referred hereinafter as Regulations‘) as may be applicable and as amended from time to time and will, inter-alia, provide for the following:

• Establishing a guideline for compliance with the provisions of Regulations to dedicate a

percentage of Company‘s profits for social projects.

• Ensuring the implementation of CSR initiatives in letter and spirit through appropriate procedures and reporting

• Creating opportunities for employees to participate in socially responsible initiatives.

"Corporate Social Responsibility (CSR)" means and includes but is not limited to

(i) Projects or programs relating to activities specified in Schedule VII to the Act or

(ii) Projects or programs relating to activities undertaken by the board of directors of a company (Board) in pursuance of recommendations of the CSR Committee of the Board as per declared CSR Policy of the company subject to the condition that such policy will cover subjects enumerated in Schedule Vll of the Act.

(d) "CSR Committee" means the Corporate Social Responsibility Committee of the Board referred to in section 135 of the Act

G) "CSR Policy" relates to the activities to be undertaken by the company as specified in Schedule VII to the Act and the expenditure thereon, excluding activities undertaken in pursuance of the normal course of business of a company

CSR Activities 

The Policy recognizes that corporate social responsibility is not merely compliance; it is a commitment to support initiatives that measurably improve the lives of underprivileged by one or more of the following focus areas as notified under Section 135 of the Companies Act

2013 and Companies (Corporate Social Responsibility Policy) Rules 2014:

i. Eradicating hunger, poverty & malnutrition, promoting preventive health care & sanitation & making available safe drinking water;

ii. Promoting education, including special education & employment enhancing vocation skills especially among children, women, elderly & the differently unable & livelihood enhancement projects;

iii. 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; Etc.