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.
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.
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.