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India may become the first country to mandate corporate social responsibility (CSR) under a new bill. The bill would require companies with over 500 crore rupees in net worth or 1,000 crore rupees in annual turnover to spend 2% of profits on CSR activities. Several large Indian companies like Tata Group, Infosys, and Mahindra & Mahindra undertake extensive CSR programs in areas like healthcare, education, disaster relief, and the environment. France was the first country to mandate public company reporting on social and environmental impacts.

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92 views3 pages

New Microsoft Office WordDocument

India may become the first country to mandate corporate social responsibility (CSR) under a new bill. The bill would require companies with over 500 crore rupees in net worth or 1,000 crore rupees in annual turnover to spend 2% of profits on CSR activities. Several large Indian companies like Tata Group, Infosys, and Mahindra & Mahindra undertake extensive CSR programs in areas like healthcare, education, disaster relief, and the environment. France was the first country to mandate public company reporting on social and environmental impacts.

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Pranav Panchal
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Corporate Social Responsibility in India

Posted on July 10, 2012 by India Briefing


India may become the worlds first country to make corporate social responsibility mandatory
Jul. 10 Paths have been cleared for reintroduction of the Companies Bill, 2011, in the monsoon session. If the
bill is passed after endorsing all the propositions made by the Parliamentary Standing Committee on Finance,
corporate social responsibility (CSR) would become mandatory for the first time in the world in any country.
The statement advocates that those companies with net worth above Rs. 500 crore, or an annual turnover of
over Rs. 1,000 crore, shall earmark 2 percent of average net profits of three years towards CSR. In the draft
Companies Bill, 2009, the CSR clause was voluntary, though it was mandatory for companies to disclose their
CSR spending to shareholders. It also suggested that company boards should have at least one female member.
Examples of Corporate Social Responsibility in India
Tata Group
Tata Group in India has a range of CSR projects, most of which are community improvement programs. For
example, it is a leading provider of maternal and child health services, family planning, and has provided 98
percent immunization in Jamshedpur. The company also endorses sports as a way of life. It has established a
football academy, archery academy, and promotes sports among employees. It offers healthcare services all over
the country with programs like rural health development.
Tata Group also has an organized relief program in case of natural disasters, including long-term treatment and
rebuilding efforts. It did laudable work during the Gujarat earthquakes and Orissa floods. It also supports
education, with over 500 schools, and also is a benefactor of the arts and culture. It has done abundant work in
improving the environment and local populations around its industries.
Aptech
Aptech a leading education player with a global presence that has played a broad and continued role in
encouraging and nurturing education throughout the country since its inception. As a global player with complete
solutions-providing capabilities, Aptech has a long history of participating in community activities. It has, in
association with leading NGOs, provided computers at schools, education to the deprived, and training and
awareness-camps.
Infosys
Infosys is aggressively involved in a variety of community growth programs. In 1996, the company created the
Infosys Foundation as a not-for-profit trust to which it contributes up to 1 percent of profits after tax every year.
Moreover, the Education and Research Department at Infosys also works with employee volunteers on
community development projects.
The management team at Infosys continues to set examples in the area of corporate citizenship and has involved
itself vigorously in key national bodies. They have taken initiatives to work in the areas of research and
education, community service, rural outreach programs, employment, healthcare for the poor, education, arts and
culture, and welfare activities undertaken by the Infosys Foundation.
Mahindra & Mahindra
At Mahindra & Mahindra, The K. C. Mahindra Education Trust was established in 1953 with the purpose of
promoting education. Its vision is to renovate the lives of people in India through education and financial
assistance across age groups and across income strata. The K. C. Mahindra Education Trust undertakes a
number of education plans, which make a difference to the lives of worthy students. The Trust has provided more
than Rs. 7.5 crore in the form of grants, scholarships and loans. It promotes education mostly by the way of
scholarships. The Nanhi Kali (children) project has over 3,300 children under it and the company aims to
increase the number to 10,000 in the next two years by reaching out to the underprivileged children, especially in
rural areas.

Methodology of Corporate Social Responsibility


CSR is the procedure of assessing an organizations impact on society and evaluating their responsibilities. It
begins with an assessment of the following aspects of each business:

Customers

Suppliers

Environment

Communities

Employees

Triumphant CSR plans take organizations ahead of compliance with legislation and lead them to respect moral
values and respect people, communities and the natural environment. Corporate social responsibility is
sustainable involving activities that an organization can uphold without negatively affecting the business goals
CSR is not only about ecological accountability or having a recycling policy. It is about considering the whole
representation of the company, from internal processes to your clients, taking in every step that a business takes
during day-to-day operations. Rising economies such as India have also observed a number of companies
enthusiastically engaged in CSR activities.
Organizations in India have been quite sensible in taking up CSR initiatives and integrating them in their business
processes. It has become progressively projected in the Indian corporate setting because organizations have
recognized that besides growing their businesses, it is also important to shape responsible and supportable
relationships with the community at large. Companies now have specific departments and teams that develop
specific policies, strategies and goals for their CSR programs and set separate budgets to support them. Most of
the time, these programs are based on well-defined social beliefs or are carefully aligned with the companies
business domain.
Corporate Social Responsibility The French Way
France was the first nation to make public company reporting compulsory. The rules require public companies to
comprise information on a series of topics in their yearly report, such as:

Status of employees

Mobility of staff

Work hours

Social relations

Health and safety

Training

Health policy

Profits distribution

Outsourcing

They must also illustrate their manners when it comes to communities who are concerned by their activities in the
countries where they have offices. They must explain the ways in which their sub-contractors respect
International Labor Organization agreements. They must also report on ecological issues such as the measure of
progress in terms of energy effectiveness and dipping environmental impacts; conditions on use of land, air and
water; and documentation obtained in the area of environmental safety.
Alstom
At Alstom, people, sustainability, and the environment are positioned at the heart of corporate strategy. Alstom
offers rail transport, power generation and transmission solutions that defend the environment while ensuring
financial expansion and social progress, providing a major contribution to global sustainable development. Alstom
expects to further its cooperation with the local communities and people in the countries they are operating in.
Indo-French Chambers of Commerce and Industry Event
The Indo-French Chambers of Commerce and Industry (IFCCI) Mumbai is organizing an event on CSR on July
14, 2012 at Sofitel in Mumbai. The event emphasizes the best practices in CSR and will be attended by the
president of IFCCI, the Honorable French Consul of Mumbai, and many corporate leaders.
Presently in India, it is hard for one sole entity to bring about change, as the gauge is vast. Organizations have
the know-how, strategic thinking, manpower, and financial strength to enable widespread social transformation.
Operative partnerships between corporations, NGOs and the government will place Indias social development
on a developing mode.
A concern for social and environmental development should be made a part of every corporate entity through its
inclusion in the annual agenda backed by strong and genuine programs. Its up to the lobbying groups and
governmental agencies to convince the corporate power houses to come forward and take up the challenge by
making them aware of the associated advantages that these companies stand to gain from effective CSR
campaigns.

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