3. Economic development in India
• India’s GDP stood at Rs 5,86,212 crores in 1991.
• The liberalization efforts boosted our economy and it stands at
Rs 1,35,76,086 crores
• The growth is up to 2216 percent.
• Further in 2030, It will be double the amount of our economy.
• The faster economic development requires inclusiveness and
resilience against the global competitiveness and sustainability.
• Hence, one of the possibility by triggering the economy through
good Corporate social responsibilities
4. The 60 percent of rural agrarian families depends
on 16 % GDP contribution only.
5. Sustainable Development Issues in India
• Though economic growth is there. But, inclusiveness is not
there.
• It is possible by empower the primary sector of Agriculture and
allied sectors and promotion of alternate livelihood opportunities
in one side.
• The Development of services like, Health, education and
Infrastructure, etc also important in the large section of BPL
Families.
• Hence, sustainable development initiatives are needed through
CSR.
6. What is CSR?
• According to the UNIDO , “Corporate social responsibility is a
management concept whereby companies integrate social and
environmental concerns in their business operations and interactions
with their stakeholders.
• CSR as “the responsibility of enterprises for their impacts on society”
by Demonstration of
- a commitment to society’s values,
- contribute to society’s social goals
- environmental goals and
- economic goals
• -- through action
7. Components of CSR
• The CSR approach is holistic and integrated with the core
business strategy for addressing social and environmental
impacts of businesses.
• CSR needs to address the well-being of all stakeholders and
not just the company’s shareholders.
• Philanthropic activities are only a part of CSR, which otherwise
constitutes a much larger set of activities entailing strategic
business benefits.
8. CSR: Companies Act 2013-Section 135
Companies Mandated to constitute a CSR Committee
• Net worth of Rs 500 Crore or more
• Turnover of Rs 1000 Crore or more
• Net profit of Rs 5 Crore or more
CSR Committee to have
• Three or more directors
• At least one is to be an independent director
Board’s Report shall disclose the constitution of CSR Committee
CSR Committee will
• Formulate CSR policy and recommend to board indicating the activities to be undertaken as specified in
schedule vii
• Recommend the amount of expenditure to be incurred
• Monitor CSR Policy from time to time
9. CSR: Companies Act,2013
Board of Directors will approve CSR Policy, ensure
implementation of CSR policy, disclose the contents of CSR
policy in the board report and place the same on company’s
website.
Finally, ensure CSR spending amounting to at least 2% of the
average net profit of the preceding three financial years
Board’s Report shall specify the reasons for not spending the
specified amount
There is no penalty for failure to spend 2% of net profit on
CSR
10. Schedule VII Activities
• Eradicatingextreme hunger & poverty
• Promotion of education
• Promoting gender equality and empowering women
• Reducing child mortalityand improving maternalhealth
• Combating human immunodeficiencyvirus, acquired immune deficiency
syndrome, malariaand other diseases
• Ensuring environment sustainability
• Employment enhancing vocational skills
• Social business projects
• Contributionsto Prime MinisterFund or any other fund set up by the
CentralGovernment or the State Governments for socio-economic
development and relief and funds for the welfareof the Scheduled Caste
and Schedule Tribe
• such other mattersas may be prescribed
11. CSR Management:
Plan, Do, Check, Act method
Plan
• Consult stakeholders
• Establish code of conduct
• Set targets
Do
• Establish management
systems and personnel
• Promote code compliance
Check
• Measure progress
• Audit
• Report
Act
• Corrective action
• Reform of systems
12. What is Sustainable Development
“Sustainable development is development that meets the
needs of the present without compromising the ability of
future generations to meet their own needs”. Timeforce change
13. Why is the CSR clause of the new Companies
Act, 2013 so critical for SMEs?
• By requiring companies, with a minimum net profit of 5 crore INR, to
spend on CSR activities, the Companies Act, 2013 is likely to bring in
many SMEs into the CSR fold. This will usher in a fresh set of
challenges to a sector that is increasingly being asked by its B2B
customers to comply with environmental and social standards, while
remaining competitive in terms of price and quality. Thus, SMEs will
have to quickly learn to be compliant with these diverse set of
requirements and it is hoped that this handbook will facilitate their
ability to comply with the CSR clause of the Companies Act, 2013
14. Problems in Indian Agriculture sector
• One of the world's highest food spoilage rates: India lacks cold storage, food
packaging as well as efficient rural transport system. Almost non existent effective
retail channel structure at Rural level.
• Largely Traditional Farming: In some parts of India, traditional use of cattle to
plough remains in use. Traditional farming lead to one of the lowest per capita
productivities and farmer incomes.
• Infrastructure: India has very poor rural roads affecting timely supply of inputs
and transfer of outputs. Irrigation systems are inadequate, leading to frequent
crop failures.
• Small Farm Holding: The average size of land holdings is very small (less than 2
hectares) and is subject to fragmentation due to land ceiling acts, and in some
cases, family disputes. Adoption of modern agricultural practices and use of
technology is inadequate.
• Socio Economic factor: Agriculture is basically taken up by Rural workforce.
Illiteracy, general socio-economic backwardness.
• Disguised Unemployment: Agriculture sector is characterized by chronic
(disguised) unemployment because of which more people are employed than
what is required.
