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DEPARTMENT SEMINAR
CORPORATE SOCIAL RESPONSIBILITY
CHAIRED BY:
SIDDARAMU B.
PRESENTED BY:
ANKUR MISHRA
EVERY YEAR A MILLION CHILDREN
NEED TO BE SAVED BEFORE THEY
ARE A MONTH OLD AND ANOTHER
MILLION BEFORE THEY ARE 5
YEARS OLD.
4 OUT OF 10 NEED TO BE GIVEN FOOD
INDIA IS THE HOME FOR LARGEST
NUMBER OF ILLITERATE AND POOR
A QUARTER OF POPULATION NEEDS TO BE
TAKEN OUT OF DARK
BY 2020 INDIA WILL BE 3RD
LARGEST ECONOMY IN THE
WORLD. (OECD)
THIS WILL PUT
EXTRAORDINARY PRESSURE
ON OUR INFRASTRUCTURE
AND NATURAL RESOURCES.
“It takes 20 years to build a
reputation and only 5 minutes to
ruin it” (WARREN BUFFET)
INTRODUCTION
Corporate Social Responsibility(CSR) is a
concept which has become dominant in
business reporting. Every corporation has a
policy concerning CSR and produces a report
annually detailing its activity.
DEFINATION
CSR is a concept whereby companies
integrate social and environmental concern
in their business operation and their
interaction with their stakeholder on
voluntary basis. (European Commission)
CSR refers to transparent business
practice that are based on ethical values,
compliance, with legal requirements, and
respect for the people, communities and the
environment.
TYPES OF CSR
1. ETHICAL CSR
2. ALTRUISTIC CSR
3. STRATEGIC CSR
PRINCIPLES OF CSR
 Legal Compliance Principle
 Adherence to Customary International
Laws Principle
 Respecting Related Stakeholders lefts
Principle
 Transparency Principle
 Respect for Human lefts Principle
RELEVANCE OF CSR
1. CHANGING SOCIAL
EXPECTATIONS
2. INCREASING AFFLUENCE
3. GLOBALIZATION
EVOLUTION OF CSR IN INDIA
The term came into existence in 1953, in HR
Bowen’s “Social Responsibilities of the Business”.
The First Phase
Pre Industrialization –Till 1850
The Second Phase
During the independence movement
The Third Phase
The third phase of CSR (1960–80) had its relation to the element
of "mixed economy"
The Fourth Phase
1980 until the present
MOTHER OF CSR
 CSR has been part of the Tata Group ever since the
days of Jamshedji Tata.
 What the group has done for all employees and society..
 Granted scholarships for further studies abroad in 1892.
 Established welfare department in 1917 and many more..
 In 2008,Tata steel spend Rs 200 crore a year on CSR
and the TATA group as a whole spent Rs 800-1000
crore on that per annum.
 First company to start Social Audit.
MILLENIUM DEVELOPMENT GOALS AT
THE HEART OF CSR (Source: United Nation Millenium Project)
 Eradicate extreme poverty and hunger.
 Achieve universal Primary education.
 Promote gender equality and promote
women.
 Reduce child mortality.
Conti…
 Improve maternal health.
 Combat HIV/AIDS, Malaria and other
Fatal Diseases
 Ensure environmental sustainability.
 Develop a global relationship
BENEFITS OF CSR
 Increased employee loyalty and
retention.
 Increased quality of products and
services
 Increased customer loyalty.
 Increased reputation and brand image.
 Product safety and decreased liability.
DIMENSIONS OF CSR
ETHICAL RESPONSIBILITY
LEGAL RESPONSIBILITY
ECONOMIC RESPONSIBILITY
DISCRETIONARY RESPONSIBILITY
CHALLENGES IN CSR
 The Shrinking Role of Government
 Demand for Greater Disclosure
 Increased Customer Interest
 Growing Investor Pressure
 Competitive Labor Market
 Supplier Relation
WHY DO COMPANIES DECIDE TO GET
ENVOLVED IN CSR AND HOW THEY
ARE BENEFIT?
In order to stay productive, competitive and relevant
in a rapidly changing business world, they have to
become socially responsible.
Companies want to increase their ability to manage
their profits, risks and to protect the reputation of
their brands.
COMPANIES WITH CSR ACTIVITIES
 AXIS BANK
 BHARAT PETROLEUM CORPORATION
 INFOSYS
 TATA CONSULTANCY
 MAHINDRA &MAHINDRA
DATA and FIGURE
Top PSU’s Spending on CSR (Source:Lok Sabha unstarred question)
S. No. Name of the PSU’s Year Total funds allocated
for CSR (in crores)
Fund Utilized
for CSR (in
crore)
1. Coal India Limited 2010-11
2011-12
262.28
553.33
152.33
77.33
2 Indian Oil
corporation
Limited
2010-11
2011-12
131.11
95360
128.41
82.73
3 GAIL (India)
Limited
2010-11
2011-12
69.54
82.77
63.91
54.43
4 Bharat Electronics
Limited
2010-11
2011-12
2.74
2.25
2.08
2.36
COMPANIES BILLACT, 2013, Clause 135
The first Companies Act was passed in 1956
The companies bill act, 2013 was approved by
Rajya Sabha on 8th August, 2013
The Bill has 29characters, 400 clauses as
against 658 sections in the existing Companies
Act, 1956 & 7 schedules.
CLAUSES FOR CSR UNDER
COMPANIES BILLACT,2013
 Every company having net worth of Rs500crore or
more, or turnover of Rs1000crore or more or a net profit
of Rs5crore or more during any financial year is required
to constitute a corporate social responsibility committee.
 2% of the average net profit of 3 preceding financial
year to be spent towards CSR activities.
 Disclosure of CSR policy on company’s website.
 The remuneration of a director of a company, not more
than 5% of the net profit.
CORPORATE SOCIAL RESPONSIBILITY
MUST NOT BE DEFINED BY TAX PLANNING
STRATEGIES ALONE ,RATHER IT SHOULD
BE DEFINED WITH FRAME OF A
CORPORATE PHILOSPHY, WHICH FACTORS
NEEDS COMMUNITY AND THE REGION IN
WHICH CORPORATE ENTITY FUNCTION-
FORMER PRIME MINISTER
DR. MANMOHAN SINGH
CONCLUSION
The concept of corporate social
responsibility is now firmly rooted on the
global business agenda. But in order to move
from theory to concrete action, many
obstacles need to be overcome.
CSR is the heart and soul of modern
corporations and is an important standard fot
corporate governance.
THANKYOU
For more details:
ankur1989@yahoo.com

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Corporate Social Responsibility

  • 1. DEPARTMENT SEMINAR CORPORATE SOCIAL RESPONSIBILITY CHAIRED BY: SIDDARAMU B. PRESENTED BY: ANKUR MISHRA
  • 2. EVERY YEAR A MILLION CHILDREN NEED TO BE SAVED BEFORE THEY ARE A MONTH OLD AND ANOTHER MILLION BEFORE THEY ARE 5 YEARS OLD.
  • 3. 4 OUT OF 10 NEED TO BE GIVEN FOOD
  • 4. INDIA IS THE HOME FOR LARGEST NUMBER OF ILLITERATE AND POOR
  • 5. A QUARTER OF POPULATION NEEDS TO BE TAKEN OUT OF DARK
  • 6. BY 2020 INDIA WILL BE 3RD LARGEST ECONOMY IN THE WORLD. (OECD)
  • 7. THIS WILL PUT EXTRAORDINARY PRESSURE ON OUR INFRASTRUCTURE AND NATURAL RESOURCES.
  • 8. “It takes 20 years to build a reputation and only 5 minutes to ruin it” (WARREN BUFFET)
  • 9. INTRODUCTION Corporate Social Responsibility(CSR) is a concept which has become dominant in business reporting. Every corporation has a policy concerning CSR and produces a report annually detailing its activity.
  • 10. DEFINATION CSR is a concept whereby companies integrate social and environmental concern in their business operation and their interaction with their stakeholder on voluntary basis. (European Commission) CSR refers to transparent business practice that are based on ethical values, compliance, with legal requirements, and respect for the people, communities and the environment.
  • 11. TYPES OF CSR 1. ETHICAL CSR 2. ALTRUISTIC CSR 3. STRATEGIC CSR
  • 12. PRINCIPLES OF CSR  Legal Compliance Principle  Adherence to Customary International Laws Principle  Respecting Related Stakeholders lefts Principle  Transparency Principle  Respect for Human lefts Principle
  • 13. RELEVANCE OF CSR 1. CHANGING SOCIAL EXPECTATIONS 2. INCREASING AFFLUENCE 3. GLOBALIZATION
  • 14. EVOLUTION OF CSR IN INDIA The term came into existence in 1953, in HR Bowen’s “Social Responsibilities of the Business”. The First Phase Pre Industrialization –Till 1850 The Second Phase During the independence movement The Third Phase The third phase of CSR (1960–80) had its relation to the element of "mixed economy" The Fourth Phase 1980 until the present
  • 15. MOTHER OF CSR  CSR has been part of the Tata Group ever since the days of Jamshedji Tata.  What the group has done for all employees and society..  Granted scholarships for further studies abroad in 1892.  Established welfare department in 1917 and many more..  In 2008,Tata steel spend Rs 200 crore a year on CSR and the TATA group as a whole spent Rs 800-1000 crore on that per annum.  First company to start Social Audit.
  • 16. MILLENIUM DEVELOPMENT GOALS AT THE HEART OF CSR (Source: United Nation Millenium Project)  Eradicate extreme poverty and hunger.  Achieve universal Primary education.  Promote gender equality and promote women.  Reduce child mortality.
  • 17. Conti…  Improve maternal health.  Combat HIV/AIDS, Malaria and other Fatal Diseases  Ensure environmental sustainability.  Develop a global relationship
  • 18. BENEFITS OF CSR  Increased employee loyalty and retention.  Increased quality of products and services  Increased customer loyalty.  Increased reputation and brand image.  Product safety and decreased liability.
  • 19. DIMENSIONS OF CSR ETHICAL RESPONSIBILITY LEGAL RESPONSIBILITY ECONOMIC RESPONSIBILITY DISCRETIONARY RESPONSIBILITY
  • 20. CHALLENGES IN CSR  The Shrinking Role of Government  Demand for Greater Disclosure  Increased Customer Interest  Growing Investor Pressure  Competitive Labor Market  Supplier Relation
  • 21. WHY DO COMPANIES DECIDE TO GET ENVOLVED IN CSR AND HOW THEY ARE BENEFIT? In order to stay productive, competitive and relevant in a rapidly changing business world, they have to become socially responsible. Companies want to increase their ability to manage their profits, risks and to protect the reputation of their brands.
  • 22. COMPANIES WITH CSR ACTIVITIES  AXIS BANK  BHARAT PETROLEUM CORPORATION  INFOSYS  TATA CONSULTANCY  MAHINDRA &MAHINDRA
  • 23. DATA and FIGURE Top PSU’s Spending on CSR (Source:Lok Sabha unstarred question) S. No. Name of the PSU’s Year Total funds allocated for CSR (in crores) Fund Utilized for CSR (in crore) 1. Coal India Limited 2010-11 2011-12 262.28 553.33 152.33 77.33 2 Indian Oil corporation Limited 2010-11 2011-12 131.11 95360 128.41 82.73 3 GAIL (India) Limited 2010-11 2011-12 69.54 82.77 63.91 54.43 4 Bharat Electronics Limited 2010-11 2011-12 2.74 2.25 2.08 2.36
  • 24. COMPANIES BILLACT, 2013, Clause 135 The first Companies Act was passed in 1956 The companies bill act, 2013 was approved by Rajya Sabha on 8th August, 2013 The Bill has 29characters, 400 clauses as against 658 sections in the existing Companies Act, 1956 & 7 schedules.
  • 25. CLAUSES FOR CSR UNDER COMPANIES BILLACT,2013  Every company having net worth of Rs500crore or more, or turnover of Rs1000crore or more or a net profit of Rs5crore or more during any financial year is required to constitute a corporate social responsibility committee.  2% of the average net profit of 3 preceding financial year to be spent towards CSR activities.  Disclosure of CSR policy on company’s website.  The remuneration of a director of a company, not more than 5% of the net profit.
  • 26. CORPORATE SOCIAL RESPONSIBILITY MUST NOT BE DEFINED BY TAX PLANNING STRATEGIES ALONE ,RATHER IT SHOULD BE DEFINED WITH FRAME OF A CORPORATE PHILOSPHY, WHICH FACTORS NEEDS COMMUNITY AND THE REGION IN WHICH CORPORATE ENTITY FUNCTION- FORMER PRIME MINISTER DR. MANMOHAN SINGH
  • 27. CONCLUSION The concept of corporate social responsibility is now firmly rooted on the global business agenda. But in order to move from theory to concrete action, many obstacles need to be overcome. CSR is the heart and soul of modern corporations and is an important standard fot corporate governance.