2. Executive Summary
Bangalore based CSR consulting and implementation start up, leveraging
technology to resolve the pain points of the CSR life cycle and ecosystem by
designing a collaborative platform for effective strategy formulation and efficient
implementation
End to end cloud based digital marketplace platform to enable and empower
corporate CSR players to “Discover, Fulfil and Engage” with NGOs
3. CSR Government mandate
Governed by clause 135 of the Companies Act, 2013
Applicable to companies with
1. An annual turnover of Rs 1,000 crore and more, or
2. A net worth of Rs 500 crore and more, or
3. A net profit of Rs 5 crore and more
CSR committee consisting of their board members, including at least one
independent director
Spend at least 2% of their average net profit in the previous three years on CSR
activities
4. Penalty
Though the current policy is “comply or explain”, it is expected to become an enforcement with
penalty within 2-3 years, similar to other MCA rules and SEBI mandates like BRR,etc due to the
Central Government aligning itself with UNSDG ( United Nation Sustainable Development Goals)
and setting high standards of adherence and commitment to the 17 goals outlined in SDG.
Penalise firms not spending 2% of profits on CSR: Parliamentary Panel Report ,2015
6. Rationale: Triple bottom line
Present Scenario
Business increasingly has been viewed as a major cause of social, environmental,
and economic problems
Prospering at the expense of the broader community
Social and economic goals are not inherently conflicting, but integrally
connected
Competitiveness depends on how productively companies use labour, capital
and natural resources
7. Rationale: Triple bottom line
Solution
Principle of shared value, involving creating economic value in a way that also
creates value for society
Do not treat corporate success and social welfare as a zero-sum game.
A win-win situation for both
Identify both positive and negative effects a company can have on society,
determine which ones to address, and suggest effective ways to do so
Strategically, CSR can become a source of competitive advantage, as the
business applies its considerable resources, expertise, and insights to activities
that benefit society
8. Challenges Encountered
Time consuming selection of NGO
Inability to find proper NGOs to execute CSR activities
Possibility of misuse of funds
Tactless CSR consulting
Inability to track performance status of the project
Working simultaneously with more than two NGOs
Impracticality in conducting CSR activities despite meeting criteria
10. Benefits/Value
Proper formulation of policies and guidelines
Tracking of recent activities and emerging trends in CSR peripherals
Depicts the uses of funds, track suppliers’ performance and quality
Blueprint for future course of activities
Assurance of proper utilization of CSR funds
Better reputation, visibility, branding in society, SCA
Agility and flexibility
Why CSR is an opportunity and not burden?
-Competitiveness
-License to Operate
Investment Opportunities
Last point: For those companies who have just met the criteria and 2% of the funds is not a significant amount
Virtually every activity in a company’s value chain touches on the communities in which the firm operates, creating either positive or negative social consequences
Possible linkages
Phase 1: Identifying the points of intersection a company impinges upon society through its operations in the normal course of business: These are inside-out linkages
Phase 2: Not only does corporate activity affect society, but external social conditions also influence corporations, for better and for worse. These are outside-in linkages
First, the quantity and quality of available business inputs– human resources, for example, or transportation infrastructure
Second, the rules and incentives that govern competition–such as policies that protect intellectual property, ensure transparency, safeguard against corruption and encourage investment
Third, the size and sophistication of local demand, influenced by such things as standards for product quality and safety, consumer rights, and fairness in government purchasing
Fourth, the local availability of supporting industries, such as service providers and machinery producers.