Corporate social responsibility (CSR) in India – BMS Notes

With the April 2014 modification to The Company Act, 2013, India became the first nation in the world to mandate corporate social responsibility (CSR). Companies may use their revenues to fund initiatives addressing issues like hunger, poverty, gender equality, and education. Business owning:

• A minimum of 500 crore rupees in net wealth.
• Revenue reaching “1000 Crore”
• generating a minimum “5 crore” in net profit
• are protected by this clause for the duration of any fiscal year.

The following is how the company should set up a committee for corporate social responsibility:

The Committee must have a minimum of three members, one of whom must be an Independent Director. However, a committee for a foreign company or a private company may only have two directors if none of these parties is obligated to designate an Independent Director to the committee.

The CSR Committee will be in charge of drafting the policy, deciding how much money will be allocated to CSR, and overseeing and carrying out the plan. The CSR Policy will be developed in compliance with Schedule VII.

The corporation is exempt from compliance requirements until it meets the qualifying criteria once again if it stops meeting the requirements for three years in a row.

Current Indian Firms’ CSR Practices

A synopsis of CSR initiatives as outlined in Schedule VII of the Companies Act of 2013

Aim to eradicate the aspects of everyday life that contribute to poverty, hunger, and malnutrition while raising living standards and advancing the causes of improved sanitation and health care.

introducing a range of rural development initiatives

initiative to support many educational fields, such as special education, and programmes to improve the vocational skills of people of all ages, including women, children, and the elderly, in addition to carrying out other livelihood-enhancement initiatives.

In order to advance gender equality and other amenities for senior citizens, as well as the development of hostels for women and orphans and the taking of initiative to empower women and lessen the disparities that socially and economically disadvantaged groups must contend with, strive to bring uniformity to the various segments of society.

Increase the amount of flora and animals to preserve the quality of the air, water, and soil while bringing about ecological balance and environmental sustainability with regard to animal welfare, resource conservation, and old-growth forestry.

improvement of craftsmanship along with preservation of the arts and culture, actions to repair historically significant locations and the nation’s cultural assets, promotion of artistic creations, and establishment of public libraries.

actions to include veterans of the armed forces and their agencies in the war windows.

Training sessions and sports programmes aimed at raising the bar for Olympic, Paralympic, national, and rural competition.

supporting the Prime Minister’s National Relief Fund and other funds established by the national government to help women, minorities, and the economically disadvantaged as well as to advance socioeconomic development and the welfare of Schedule Castes and Schedule Tribes.

to advance the technology of incubators that are part of academic institutions and have Central Government approval.

Example

The Tata Group

Most of the corporate social responsibility (CSR) initiatives carried out by the Indian conglomerate Tata Group are focused on improving communities and reducing poverty. It is involved in women’s empowerment, income creation, rural community development, and other social welfare projects via self-help organisations. The Tata Group supports several educational institutions with endowments and scholarships.

High-Tech Cement

The largest cement firm in India, Ultratech Cement, is actively engaged in social activity in 407 villages with the goal of fostering sustainability and independence. Its CSR initiatives are concentrated on the areas of education, infrastructure, environment, social welfare, healthcare, and family welfare programmes, as well as sustainable livelihood. The organisation has coordinated school enrollment, plantation drives, medical camps, vaccination campaigns, sanitization initiatives, industrial training, water conservation initiatives, and organic agricultural initiatives.

Mahindra and Company

In order to further education, Indian automaker Mahindra & Mahindra (M&M) founded the K. C. Mahindra Education Trust in 1954 and the Mahindra Foundation in 1969. The company’s primary emphasis is on educational initiatives to support underprivileged areas on both an economic and social level. CSR initiatives fund disaster relief efforts, livelihood training, healthcare for isolated communities, water conservation, and scholarships and grants. M&M operates initiatives including Lifeline Express, which provides healthcare services in distant places, Mahindra Pride Schools, which focuses on industrial training, and Nanhi Kali, which emphasises education for girls