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THE DEAL

THE DEAL. Business. Mankind. CORPORATE SOCIAL RESPONSIBILITY. Mahavir International Delhi 6550, Main Qutab Road, Nabi Karim , Near Hanuman Mandir , New Delhi - 110 055 [INDIA] (T) +91 - 11 -2351 0770, 2352 6502 | (M) +91 9910435554

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THE DEAL

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  1. THE DEAL Business Mankind CORPORATE SOCIAL RESPONSIBILITY Mahavir International Delhi 6550, Main Qutab Road, NabiKarim, Near Hanuman Mandir, New Delhi - 110 055 [INDIA] (T) +91 - 11 -2351 0770, 2352 6502 | (M) +91 9910435554 (E) info@mahavirinternational.com, ceo@mahavirinternational.com

  2. Corporate Social Responsibility This is what it is • ‘Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large’. • – World Business Council For Sustainable Development Interpretation (Expectation that business should) CSR- Business owes this to the society

  3. Corporate Social Responsibility Need of the Hour Developed countries like Sweden, Norway, Netherland, Denmark, Australia, France has already espouse such practices. Developed Nation INDIA Developing Nations India on the path to be a developed nation should also adopt itself with the same.

  4. Objectives of a business • Existing • Profit Maximization • Maximizing shareholders wealth • Reinvesting in the Business • Desired • Profit Optimization • Optimizing shareholders wealth • Reinvesting for growth of Business • 4) Corporate Social Responsibility CSR requires to be embedded in any business’s major objective and hence have defined plan and timelines

  5. Corporate Social Responsibility CSR-Talk of the Town Mandatory under Law Globalization Factors Increased Expectations of stakeholders Awareness of the limits of Government legislative Awareness of Social and Environmental care Sudden rise of CSR

  6. Corporate Social Responsibility CSR – Everything that needs to be known Benefits Myths • Too complicated and Technical • Too expensive • Mostly a market gimmick • Separate corporate initiative • Whatever being done is enough • Being preventive is enough • CSR is like charity • Just a Piece of Legislation • Winning new businesses • Enhanced relationship with Stakeholders • Attracting, Retaining & Maintaining strong workforce • Image Building • Access to funding opportunities • Increased customer retention • Opportunity CSR initiatives may comprise • Develop people’s confidence in your company • Strong point of differentiation from competitors • Gain foothold in the industry • Recognition and support from customers • Employee Focused Initiative • Market Focused • Product Focused • Environmentally Focused • Society Focused There’s much more to it than we knew !

  7. Companies Bill -2013 Section 135 of the 2013 Act Applicability from 1stApril Net profit of Rs 5 Crore or more Net worth of Rs 500 Crore or more Turnover of Rs 1000 Crore or more OR OR Shall constitute a CSR Committee Through the mandatory provision expected 3000 companies would be covered & Rs.12000 Crore induced through CSR expenditure activities

  8. Constitution & Function of Committee Committee would comprise of three or more directors, out of which at least one director shall be an independent director. Functions of Committee • Formulate and recommend to the Board, a CSR Policy, about the activities to be undertaken as specified in Schedule VII • To recommend the amount of expenditure to be incurred • To monitor the CSR Policy of the company from time to time

  9. Corporate Social Responsibility Responsibility of the Board Ensure that the activities are undertaken by the company Approve the CSR Policy & disclose contents in its report & also place it on the company’s website Ensure that company spends, in every financial year, at least 2% of the average net profits made over 3 preceding years

  10. Schedule VII (Activities Covered)

  11. (Activities Not Covered) Funds given to political parties directly or indirectly Money spent for the benefit of the company’s employee (and their families) [As they would be considered as perquisites.] Surplus arising from the CSR programmes /activities shall not form part of business profits. The CSR Activities must be within India and also apply on foreign companies registered here Expenditures which will not be included in 2% criteria

  12. Penal Provision Failing to spend on CSR under the 2 Percent Formula, a company and its officers are subject to liability for not explaining such a failure in the report of the board of directors. Discretionary Power in the hands of bureaucracy Draconian Law

  13. Flaws in Laws If the 2 percent allocation is not made in a given fiscal year, the CSR committee has to submit an explanation to avoid being penalized CSR  in  India  is dominated  by  the philanthropic  approach  rather  than a collaborative  approach 

  14. Now a Million dollar Question How to spent money?

  15. Various arrangements are available Corporate Directinvolvement in CSR project Collaboration with NGO/Registered trust/Society If Project cost is higher, then one or more companies can join hand.

  16. Companies may collaborate with other companies for CSR activities, provided they have to separately report about spending on such project’s programmes • The activities shall be undertaken as per its stated CSR policy, as project or programmes or activities, excluding activities undertaken in pursuance of its normal course of business. • When it comes to having manpower for CSR works, the government has said the companies can spend only up to 5% of total CSR expenditure for them in a single financial year. • This would be applicable for own personnel as well as those of their implementing agencies.

  17. Now the question is Why NGO

  18. Benefits of collaboration with NGO NGO Corporate • Experience and exposure • Requisite infrastructure and resources • Suitable Manpower • Work Culture • Dedication (Main Stream)

  19. MAHAVIR INTERNATIONAL A Voluntary Charitable, Non Religious, Non Government Organization

  20. MAHAVIR INTERNATIONAL A Voluntary Charitable, Non Religious, Non Government Organization Health Care Facilities Eye Care Eye pledge and eye donation Doctor at Door Step MRI & CT Scan Facilities

  21. Why Mahavir International • Experience and exposure • Requisite infrastructure and resources • Suitable Manpower • Work Culture • Dedication (Main Stream) • Trust & Credibility • Transparency • Proven Track Record • Highly Professional Think Tank having passion to serve • Moto : ” Serve All Love All ” • Service with Smile • Approach to Deliver Comprising Bureaucrats, IAS, IPS, IRS, IC&CES, DANICS, Doctors, Professionals, Industrialists, Social Workers, Administrators.

  22. Infrastructure & Strength Facts & Figures • 2.57 Million patients benefitted by free medical services • 17,445 Cataract Surgeries with IOL implants • 1,145 Health & Eye Checkup Camps • 4,06,305 patients examined in camps • 32,872 people have pledged their eyes and 148 persons donated eyes after death • 350 Centers all over the World • 6 Hospitals , with 3 ultra modern eye operation Theaters • 3 fully Equipped vans or ‘Doctor at Door Step’ project • 1.5 Tesla whole body MRI & CT Scan testing facility • 2 Vans for pick and drop back facility of camp patients

  23. By Anil Kr. Jain Vice Chairman (E) anil@asap.net.in Mahavir International Delhi

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