Corporate Social Responsibility

CSR

Prepared By: Ms. Ritika Bora

 Introduction
• Corporate social responsibility refers to a sustainable business model
where the company is accountable and responsible towards the
social, cultural, environmental and economic aspects of the society.
• India is the first country in the world to make CSR mandatory,
following an amendment to the Companies ‘Act 2013, in April
2014.
• Corporate can invest a part of their profits in areas such as
education, poverty, gender equality, hunger, healthcare,
environment, etc.
• . In India Maharashtra, Uttar Pradesh, Tamil Nadu, Karnataka, and
Odisha are the top five states when it comes to the number of CSR
projects being implemented.
• In 2017, education and healthcare accounted for over 56
percent of the total CSR spends in India.
• Public sector companies executed 22 percent of all CSR
projects in 2017 accounting for 31 percent of the total CSR
expenditure.
• Non-Public sector units, on the other hand, implemented 78
percent of the projects.
 Definitions
• According to International Labour Organization “CSR as a way in
which enterprises give consideration to the their operations on society
and affirm their principles and values both in their own internal
methods and processes and in their interaction with other actors.”
• According to World Bank “Corporate Social Responsibilities is
commitments of business to contribute to sustainable economic
development, working with employees, their families, the local
community and society at large to improve quality of life in ways that
are both good for business and good for development.”
• According to The World Business Council of Sustainable
Development “Corporate Social Responsibility is the continuing
commitment by business to behave ethically and contribute to
economic development while improving the quality of life of the
workforce and their families as well as local communities and society
at large.”
 CSR Can be Understood As

• Corporate Social Responsibility (CSR) is considered as a

continuing commitment by business to behave ethically and
contribute to economic development while improving the
quality of life, in ways that are both good for the business and
good for the society thereby creating an atmosphere of
sustainable development.
 CSR Helps a company

• Reputation and brad

• Ethical considerations
• Employee motivation
• Innovation and learning
• Risk management or risk reduction
• Market position improvement
• Improved relationship with Government
authorities
 Legal Considerations and CSR

• India is the first country in the world to make CSR mandatory,

following an amendment to the Companies Act 2013, in April
2014.
• The Companies Act, 2013 has introduced several provisions
that would change the way Indian corporates do business and
one such provision is spending on Corporate Social
Responsibility (CSR) activities.
• Section 135 of the 2013 Act states that every company having: - net worth
of Rs 500 crore or more, or - turnover of Rs 1000 crore or more, or - net
profit of Rs 5 crore or more during any financial year shall constitute a
Corporate Social Responsibility.
• The Act also specifies that there shall be a Committee of the Board.
• The main features of the board being
• The board would comprise of three or more directors, out of which at least
one director shall be independent
• The mandate of the said CSR committee shall be: - to formulate and
recommend to the Board, a Corporate Social Responsibility Policy, which
shall indicate the activities to be undertaken by the company as specified in
• Schedule VII; - to recommend the amount of expenditure to be incurred on
the activities referred to above; - to monitor the Corporate Social
Responsibility Policy of the company from time to time be calculated under
the provisions of section 198 of the 2013 Act.
Some top CSR Companies
 Case Study on ‘Havells India Limited’

•Havells India Limited, a leading manufacturer of FMEG and

power distribution equipment, is a globally renowned Indian
brand today.
•The owner of the company, Qimat Rai Gupta, acquired a
small electrical goods company named Havells in the year
1971 under the QRG Group.
•He had a vision of converting this small business into a
superior electrical goods manufacturing plant in India.
•The brand, since then, saw several mergers and acquisitions
to become a global FMEG leader. In the year 2015, Havells
successfully acquired a place in the world’s top five lighting
companies.
• The brand is presently valued at USD 1.4 billion, which shows
the success and growth of the company from a local brand to
becoming a global entity.
• Havells India’s Mid-Day Meal Program:
• In the year 2004, Havells researched to find out the logic behind
unavailability of sufficient human resource for its Alwar Plant.
• It encountered the problems of poverty, malnutrition and
illiteracy in the region.
• The study showed that children work in the farms instead of
going to school, to earn a living.
• It was a challenging task for the families of Alwar, Rajasthan to
get sufficient meals twice a day, which made them starve and
malnourished.
• The most affected of all were the children of this region.
• Havells decided to deal with this situation by aiming at ‘Zero
Hunger’ in the Alwar region.
• The brand joined hands with the Rajasthan government to initiate
a mid-day meal program in various government schools of the
district.
• The food is prepared in the company’s state-of-the-art kitchen
spread across 4 acres of area, engaging a workforce of 160 people.
• Havells made sure to give its best by ensuring proper control over
procurement of grocery, food preparation, raw material storage
and supply of prepared meals to schools.
• Havells initially served 1500 students of 5 schools, and later the
number increased to 60000 children studying in 693 schools in the
Alwar district.
 Infosys India Limited
• Infosys Limited, an digital services and consulting
conglomerate has spent Rs. 342 crore as against its prescribed
CSR expenditure of Rs. 340 crore (2% of the net profit of Rs.
17, 018 crore) towards various schemes of Corporate Social
Responsibility during the year 2018-19.
• The major works of the Foundation’s works included the
introduction of Aarohan Social Innovation Awards, restoration
of water bodies in Karnataka, supporting the construction of a
metro station in partnership with Bangalore Metro Rail
Corporation Limited, enabling the pursuit of access and
excellence in sports through the Go Sports Foundation and
relief efforts in Tamil Nadu, Karnataka and Kerala.
 Ultratech Cement
• Ultratech Cement, India’s biggest cement company is involved
in social work across 407 villages in the country aiming to
create sustainability and self-reliance.
• Its CSR activities focus on healthcare and family welfare
programs, education, infrastructure, environment, social welfare
and sustainable livelihood.
• The company has organized medical camps, immunization
programs, sanitization programs, school enrollment, plantation
drives, water conservation programs, industrial training and
organic farming programs.
 Mahindra & Mahindra

• Indian automobile manufacturer Mahindra & Mahindra

primarily focuses on education programs to assist
economically and socially disadvantaged communities
• . Its CSR programs invest in scholarships and grants,
livelihood training, healthcare for remote areas., water
conservation and disaster relief programs.
• M&M runs programs such as Nanhi Kali focusing on
education for girls, Mahindra Pride Schools for industrial
training and Lifeline Express for healthcare services in remote
areas.
 Maruti Suzuki

• Maruti Suzuki India Limited has achieved yet another

important milestone under its CSR program.
• The Company has successfully trained 15000 tribal youth in
driving training, making them employable.
• These students were trained at its All Gujarat Institute of
Driving, Technical Training and Research situated in
Waghodia, Gujarat.
• Of the candidates trained, 70% have secured employment or
have taken up the role of an entrepreneur.
 References

•https://www.irjmets.com/uploadedfiles/paper//issue_7_july_
2022/27890/final/fin_irjmets1657648292.pdf
•https://www.gibsbschool.edu.in/downloads/research-
publications/3-Tanuja-Mam-publications/CSR-in-the-Indian-
Scenario-2720-by-ms-tanuja-nair.pdf
•https://www.youtube.com/watch?v=3r6bOFDILKw
•https://www.youtube.com/watch?v=sfCxaRCy1Y8
THANK YOU