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Corporate Social Responsibility - Coggle Diagram
Corporate Social Responsibility
what is CSR
management concept
integrate social & envir. concerns business operations
Companies Act 2013
Section 135 on CSR obligations
India first legislate CSR activities
spending at least 2% average net profit (Profit before taxes)
immediately preceding 3 financial years
Companies applicable to
annual turnover
=1,000 crore
net worth
Rs. 500 crore
net profit
Rs. 5 crore
applicable
branch and project project offices
foreign company
CSR activities
eradicating extreme hunger & poverty
promotion education
education
gender equality
empow. women
child mortality
improving maternal health
environmental sustainability
employment enhancing vocational skills
social business projects
Contributions -
PM CARES Fund
other fund
socio-economic devl.mnt
relief and welfare
schedule caste
tribes,
backward classes
minorities
women
2019, amendments
deposit
unspent CSR funds
fund prescribed
under Act
Benefits
Company
+ve bussine. reputation & organiz.al growth
better financial performance-operational costs savings
employee retention & satisfaction
avoiding governmental regulations
society
better employment opportunities
improved standard living
gender & socio-economic parity
natural & environment protection
government
reduced fiscal expen.
effective corporate governance
increased public trust
Newly amended rules
Exclusion from CSR activities
pursuance of normal course of business
engaged in R&D
undertake activities Covid 19 financial year 2021, 2021-22 & 2022-23
drugs
medical devices
new vaccine
Activities undertaken
outside India
Contribution
political party
Activities benefitting employees
Code on Wages, 2019
sponsorship basis
deriving marketing benefits
fulfilment
statutory obligations
Mandatory registration
register itself with the Central Government
fill the CSR-1 Form electronically
Engagement of external organizations-CSR projects permitted
design
evaluation
capacity building
monitoring
Annual Action plan
CSR committees
formulate
annual action plan recommend
Administrative overheads
Board of company
ensures administrative overheads
exceed 5%
expenses
general management
administration of CSR functions
Surplus cannot
utilised
other purposes
business profits
reinvested
same CSR project
transferred into fund
Impact assessment
CSR obligation
=Rs 10 Cr-3 preceding yrs
hire independent agency conduct impact assessment
Mandatory disclosure CSR projects
Challenges and criticism of Corporate Social Responsibility (CSR)
Tool to tax
corporates
face high taxation
India unattractive
business.
Skewed pattern spending
65% CSR spending
education healthcare
eradication of hunger, rural development, environmental protection
Regional disparity
undertake CSR activities
work can be done
hardship
resulting
aspirational districts North-east region poor infrastructure & development level
no foucus
Non-compliance
50% unable mandated amount past five years act
70% strategy implement CSR activities
Cheating and favoured donations
donations
charitable trusts
well known
received them back deduction minor commision
way forward
Community & employ participation
improving community relations
involving employees motivate them
encourage their personal & professional development inculcating social ethical values
collaboration 4 efficiency
between NGOs
agencies environmental & social work
Evaluation & Monitoring
monitored periodically
prevent fraudulent activities
complete project - fixed time
Fair & balanced expenditure
encouraging corporates
spend neglected areas
north east region & aspirational districts
regioanal parity
Relaxation & incentives
corporate tax - corpo. complying CSR regu.
Sources
Visionias feb 2021