A PROJECT REPORT

ON
A Comprehensive Study of Corporate Social Responsibility (CSR)

SUBMITTED BY; SUBMITTED TO;

SANDHYA RANI SANJAY KUMAR CHAUDHARY

School of Law and Governance Deputy Legal Advisor

Central University of South Bihar

Session- 2015-2020

Oil Natural Gas Corporation (O.N.G.C)

Salt Lake Sector- 5 Technopolis, Kolkata

 Acknowledgements
At the outset, I would like to express my heartfelt gratitude and thank my mentor, for instilling
confidence in me and entrusting the task to carry out a project on the topic the Corporate Social
Responsibility. I am indeed privileged having being groomed in a prestigious institution like
Central University of South Bihar, Gaya. I would also like to express my gratitude to my friends
for their support and help. My gratitude also goes out to the staff and administration of O.N.G.C
infrastructure that was a source of great help for the completion of this project.

SANDHYA RANI
BSc.LLB (H)
Semester-8th
Enroll. No- CUSB1513115012
CUSB, GAYA
 Introduction:

Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing
to do or because people are forcing us to do it... because it is good for our business"
Niall Fitzerald, Former CEO, Unilever

As the corporations exist in a symbiotic relation with their environments1 (the term environment
here refers to all components of the external environment and not to ecological environment
alone) where their exchange with the larger environment determines to a larger extent how well
they do in their profit symbiotic endeavors.

The concept of Corporate Social Responsibility (CSR) makes it possible to establish a symbiotic
relation between the corporation and its environment as the environment meaning defined above.
When we approaches to define it we found that in present day in 21st century it is no longer just
fashionable but a business requirement to be socially responsible.

Corporate Social Responsibility can be simply and broadly defined as the ethical role of
corporation in the society. The main aim of corporate social responsibility is to increase long
term profit and shareholder trust through positive public relation and high ethical standards to

1
https://www.managementstudyguide.com/corporate-social-responsibility.htm
2
https://www.fiverr.com/eudiusriri/create-a-good-csr-project-for-you
reduce business and legal risk by taking responsibility of corporate actions. It is not enough for
companies to generate mere profits and meet merely the letter of law in their business operations.
Corporate social responsibility strategies encourage the company to make positive impact on
environment and stakeholders that is all the parties who have a stake in the performance and
output of the corporation. Stakeholders include the company's employees, unions, investors,
suppliers, customers, local and national governments, and communities that may be affected by
corporate activities such as construction, manufacturing, and pollution.3 For some companies,
CSR means manufacturing their products in a way that doesn't harm the environment and
protects the consumer from potentially hazardous materials. Corporate Social Responsibility
(CSR)can be defined as a Company’s sense of responsibility towards the community and
environment (both ecological and social) in which it operates.4 Companies can fulfill this
responsibility through waste and pollution reduction processes, by contributing educational and
social programs, by being environmentally friendly and by undertaking activities of similar
nature. CSR is not charity or mere donations. CSR is a way of conducting business, by which
corporate entities visibly contribute to the social good. Socially responsible companies do not
limit themselves to using resources to engage in activities that increase only their profits. They
use CSR to integrate economic, environmental and social objectives with the company’s
operations and growth. CSR is said to increase reputation of a company’s brand among its
customers and society.

Some definition from Global institution

OECD- Corporate responsibility involves the search for an effective ‘fit’ between businesses and
the societies in which they operate.

UN- A management concept whereby companies integrate social and environmental concerns in
their business operations and interactions with their stakeholders.

EU - The responsibility of enterprises for their impacts on society.

3
https://courses.lumenlearning.com/boundless-business/chapter/social-responsibility/
4
http://www.businessdictionary.com/definition/corporate-social-responsibility.html
Thus in lay man sense we can say that, Corporate Social Responsibility (CSR) is a well emerging
concept that acknowledges us about the responsibility of the corporations operating within
society to contribute towards social, economic and environmental development. It will helps in
maintaining a balance in between Corporation and Society and at the same times it creates a
positive impact on society at large5.

History and evolution of Corporate Social Responsibility:-

In the time of 1920s the American President said that " the chief business of the American people
is business." It was a popular observation in a time of economic prosperity, when issues such as
energy security and climate change were practically nonexistent.6

Almost a century later, things are very different. Now the private enterprise also called upon
exercise social responsibility, especially when it comes to environment. This trend reflects the
view that companies ought to do more than simply meet the letter of law and bare minimum
ethical business behavior. Now a days we know it as the "Corporate Social Responsibility." After
that period even the president Coolidge, like many American presidents before and since, kept
government out of affairs of business as much as possible. But in the starting of 1960s and
1970s, the environmental impact of an ever expanding economy was generating more or more
protests from citizens. The result was a wave of legislation designed to reduce the pollution
produced by business activity. Those laws had positive effects and are now vital parts of
American regulatory framework. But despite these regulation, controlling pollution continues to
be a challenge. And now there are even larger problems on the horizon. Even though business
today are more efficient and use fewer resources to make goods but still many ecosystems
continue to suffer. Starting a few years ago, many citizens in the U.S and around the world began
call for more action from private enterprise on these social issues-beyond compliance with

5
http://www.fiinovation.co.in/corporate-social-responsibility/
6
Philip Levine Reads “What Work Is” at the Library of Congress, Corporate Social Responsibility in America
,by the U.S. Department of State's Bureau of International Information Programs.
regulations and traditional charity related work. The result was a new movement known as
corporate social responsibility, or CSR7.

Governing Provisions regarding Corporate Social Responsibility:-

Section 135 of the Companies Act 2013, incorporates the provisions regarding the said concept
and Schedule VII provides the appendix that ensures the areas where the CSR fund will be use.

Section 135:- Corporate Social Responsibility:-

(1) Every company having net worth of rupees five hundred crore or more, or turnover of rupees
one thousand crore or more or a net profit of rupees five crore or more during any financial year
shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or
more directors, out of which at least one director shall be an independent director.

(2) The Board’s report under sub-section (3) of section 134 shall disclose the composition of the
Corporate Social Responsibility Committee.
(3) The Corporate Social Responsibility Committee shall,—
(a) formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall
indicate the activities to be undertaken by the company as specified in
Schedule VII;
(b) recommend the amount of expenditure to be incurred on the activities referred to in clause (a)
(c) monitor the Corporate Social Responsibility Policy of the company from time to time.
(4) The Board of every company referred to in sub-section (1)shall,—
(a) after taking into account the recommendations made by the Corporate Social Responsibility
Committee, approve the Corporate Social Responsibility Policy for the company and disclose
contents of such Policy in its report and also place it on the company’s website, if any, in such
manner as may be prescribed; and
(b) ensure that the activities as are included in Corporate Social Responsibility Policy of the
company are undertaken by the company.
(5) The Board of every company referred to in sub-section (1),shall ensure that the company
spends, in every financial year, at least two per cent of the average net profits of the company

7
Philip Levine Reads “What Work Is” at the Library of Congress, Corporate Social Responsibility in America
,by the U.S. Department of State's Bureau of International Information Programs.
 made during the three immediately preceding financial years, in pursuance of its Corporate
Social Responsibility Policy: Provided that the company shall give preference to the local area
and areas around it where it operates, for spending the amount earmarked for Corporate Social
Responsibility activities: Provided further that if the company fails to spend such amount,
the Board shall, in its report made under clause (o) of sub-section(3) of section 134, specify the
reasons for not spending the amount.8

Applicability of CSR Provisions:

On every Company including its holding or subsidiary having:

 Net worth of Rs. 500 Crore or more, or

 Turnover of Rs. 1000 crore or more, or
 Net Profit of Rs. 5 crore or more
 during the immediately preceding financial year
A foreign company having its branch office or project office in India, which fulfills the criteria
specified above. However, if a company ceases to meet the above criteria for 3 consecutive
financial years then it is not required to comply with CSR Provisions till such time it meets the
specified criteria.

How Corporate Social Responsibility operated in Company

Every Company on which CSR is applicable is required to constitute a CSR Committee of the
Board:

 Consisting of 3 or more directors, out of which at least one director shall be an independent
director. However, if a company is not required to appoint an independent director, then it shall
have in 2 or more directors in the Committee.
 Consisting of 2 directors in case of a private company having only two directors on its Board
 Consisting of at least 2 persons in case of a foreign Company of which one person shall be its
authorised person resident in India and another nominated by the foreign company

8
section 135 of Companies Act, 2013.
 Responsibility of Board of Directors (BOD):
The BOD of every company on which CSR is applicable shall:

 after considering the recommendations made by the CSR Committee, approve the CSR Policy
for the Company and disclose contents of such Policy in Board report.
 ensure that the activities as are included in CSR Policy of the company are undertaken by the
Company
 shall disclose the composition of the CSR Committee in Board Report
 ensure that the company spends, in every financial year, at least 2% of the average net profits of
the company made during the 3 immediately preceding financial years, in pursuance of its CSR
Policy. The CSR projects/programs/activities undertaken in India only shall amount to CSR
Expenditure.9
CSR Policy

The CSR Policy of the company shall, inter-alia, include the following namely :-

 A list of CSR projects or programs which a company plans to undertake specifying modalities of
execution of such project or programs and implementation schedules for the same
 Monitoring process of such projects or programs
 A clause specifying that the surplus arising out of the CSR projects or programs or activities
shall not form part of the business profit of the company.

CSR Activities

 The CSR activities shall be undertaken by the company, as per its CSR Policy, excluding
activities undertaken in pursuance of its normal course of business.
 The BOD may decide to undertake its CSR activities approved by the CSR Committee, through
 a section 8 company or a registered trust or a registered society, established by the company,
either singly or along with any other company, or
 a section 8 company or a registered trust or a registered society, established by the Central
Government or State Government or any entity established under an Act of Parliament or a State
legislature

9
https://www.nseprimeir.com/z_BlueDart/files/BlueDart_Roles_and_Responsibility_of_the_Board_committees.
 a section 8 company or a registered trust or a registered society, other than those specified in
clauses (a) and (b) above, having an established track record of 3 years in undertaking similar
programs or projects;
 collaboration with other companies, for undertaking projects or programs or CSR activities in
such a manner that the CSR Committees of respective companies are in a position to report
separately on such projects or programs.
 The CSR projects or programs or activities not to be considered as CSR Activities:
 Expenses for the benefit of only the employees of the company and their families
 Contribution of any amount directly or indirectly to any political party.

Display of CSR Activities on its Website

The BOD shall disclose contents of CSR policy in its report and the same shall be displayed on
the company’s website, if any.

Other Important Points:

 The balance sheet of a foreign company to be filed under section 381(1)(b) of the Act shall
contain an Annexure regarding report on CSR.
 The Board of Directors shall ensure that activities included by a company in its CSR Policy are
related to the areas or subjects specified in Schedule VII (given below) of the Act.
Schedule 7

Activities which may be included by companies in their Corporate Social Responsibility Policies
relating to:

 Eradicating hunger, poverty and malnutrition, promoting health care including preventive health
care and sanitation including contribution to the Swacch Bharat Kosh set-up by the Central
Government for the promotion of sanitation and making available safe drinking water.
 Promoting education, including special education and employment enhancing vocation skills
especially among children, women, elderly and the differently abled and livelihood enhancement
projects.
 Promoting proper gender equality, empowering women, setting up homes and hostels for women
and orphans; setting up old age homes, day care centers and such other facilities for senior
 citizens and measures for reducing inequalities faced by socially and economically backward
groups.
 Ensuring environmental sustainability, ecological balance protection of flora and fauna, animal
welfare, agroforestry, conservation of natural resources and maintaining quality of soil air and
water including contribution to clean Ganga fund set-up by the Central Government for
rejuvenation of river Ganga.
 Protection of national heritage, art and culture including restoration of buildings and sites of
historical importance and works of art setting up public libraries, promotion and development of
traditional art and handicrafts.
 measures for profit of armed forces veterans war windows and their dependents.
 Training to promote rural sports nationally recognized sports Paralympic sports and Olympic
sports.
 Contribution to the prime minister's national relief funds of any other fund set up by the central
government for socio economic development and relief and welfare of the schedule caste and
tribes and other backward classes minorities and women.
 Contributions or funds provided to technology incubators located within academic institutions
which are approved by the central government.
 Rural development projects.
 Slum area development. 10

10
http://ebook.mca.gov.in/Childwindow1.aspx?pageid=17923&type=CA&ChildTitle=Schedules&SearchText=
 Model of CSR Implementation

CSR implementation in INDIA as mandated by the law and how it affects the national
developmental agenda as shown below:-

11

11
Bhaskar chatterjee and Narayan Mitra,CSR should contribute to the national agenda in emerging economies - the
‘Chatterjee Model’,1 Feb.2017
Presentation of Data, Analysis and Funding:
Indian companies are expanding their activities which fall under the umbrella of Corporate
Social Responsibility (CSR). Government regulations mandate companies having at least
Rs.1000 crore turnover to spend 2% of their three-year average annual net profit on CSR
activities during each financial year. The focus on CSR in recent years has increased so much
that India is on its way to cross the Rs.500 billion mark in CSR spending by 2019. Not only
are India’s top companies spending lavishly on CSR activities but they are also concerned
about the programs’ impact. India is expected to spend INR 8700 Crore to INR 20,000 Crore
on leveraging the potential of analytics in the coming years to optimize CSR outcomes.
Here I have listed various famous company which works on this policy with helps of these I
want to show the last year CSR funding and working Areas of the company and its ongoing
project also by taking the top three Company in this research.

The top companies which have incorporated CSR initiatives in their policies successfully in
2018:-
 Reliance Industries ltd.
 Tata Consultancy services ltd.
 Oil and Natural Gas Corporation ltd.
 HDFC Bank ltd.
 Indian Oil Corporation Ltd.
 Infosys Ltd.
 Tata chemicals
 Ambuja Cement
 Infosys
 Mahindra and Mahindra
 ITC
 Tata Motors
 Hindustan Zinc ltd.
 Hindustan Petroleum Corporation ltd.
 Coca Cola multinational
 Ultra Tech Cement ltd.
Reliance Industries Limited.

Reliance Industries is an Indian company headquartered in Mumbai, Maharashtra, India. The

company operates in five major segments: exploration and production, refining and marketing,
petrochemicals, retail and telecommunications. The group is present in many business sectors
across India including petrochemicals, construction, communications, energy, health care,
science and technology, natural resources, retail, textiles, and logistics. RIL is the second-largest
publicly traded company in India by market capitalisation and is the second largest company in
India by revenue after the state-run Indian Oil Corporation. The company is ranked No. 99 on the
Fortune Global 500 list of the world's biggest corporations, as of 2013 and contributes
approximately 14% of India's total exports.

Working Areas:-

Eradication Hunger, Poverty, Malnutrition

Preventive Healthcare, Water and Sanitation

Education, Employability and Livelihoods Enhancement

Environmental Sustainability

Heritage conservation, Promoting Art, Craft and Culture, Public Libraries

Promoting national and rural sports, Paralympic, Olympic sports

CSR Financial Details (INR Cr.):-

12

12
https://csrbox.org/India_Company_Reliance-Industries-Ltd-Maharashtra_20
Financial Insights:-

Estimated Prescribed CSR Budget FY 2018-19: INR 816.78 Cr13

The Company always dedicated towards the CSR activities and spent more that the prescribed
budget in the last three financial year.

Reliance Industries Ltd. through Reliance Foundation has significantly contributes towards the
CSR activities.

Some works through Reliance Foundation:-

Reliance Industries Ltd. through Reliance Foundation has significantly contributes towards the
CSR activities. Moving well beyond its business activities, the RIL Group contributes to a
positive societal impact through diverse community engagement initiatives. Led by Smt. Nita M
Ambani, Reliance Foundation was set up in 2010 to provide impetus to various philanthropic
initiatives of RIL. The efforts of the group have already touched the lives of more than 12
million people across India in more than 10,500 villages and 50 urban locations. The Foundation
has a comprehensive development approach.

Its prime objective is to create and support meaningful activities through innovative institutions
to address some of India’s most pressing developmental challenges.

Ongoing project:- Arts, Heritage and Culture (Ongoing)

Project Sector : Heritage conservation, Promoting Art, Craft and Culture, Public Libraries

Implementing Partners: Reliance Foundation

Project Location: Maharashtra,

13
Ibid
 TATA Consultancy Services ltd.

Tata Group, Tata Chemicals ltd. is a global company with interests in business that focus on
essentials for life:- living, industry and farm essentials. The story of Tata begins in Mithapur,
Gujarat in western India in 1939, with a small plant that would raise a wealthy of marine
chemicals from the ocean. From these humble beginnings, Tata Chemicals has evolved into a
market-leading international business, with operations across four continents, and businesses that
touch the lives of millions across the globe. Company's Innovation Centre, today, is home to
world-class R&D capabilities in nanotechnology and biotechnology. Sustainability as a practice
is at the core of all of Tata Chemicals' activities, including their corporate social responsibility
initiatives, and is intricately woven into all business functions.

Working Areas:-

 Eradication Hunger, Poverty, Malnutrition

 Preventive Healthcare, Water and Sanitation
 Education, Employability and Livelihoods Enhancement
 Gender, Equality and Women Empowerment, Senior Citizens Care
 Environmental Sustainability
 Heritage conservation, Promoting Art, Craft and Culture, Public Libraries
 Rural Development
 Contribution to Central Government Fund
 Other
CSR Financial Details (INR Cr.)

14

Estimated Prescribed CSR Budget FY 2018-19: INR 24.52 Cr

Company’s Statement for unspent in FY 2017-18: Funds have been allocated to ongoing
projects that are being implemented over 2-3 years. Expenditure is being done based on
implementation status of the projects.15

CSR Foundation Description

 Tata Chemicals Society for Rural Development:-

Improving the quality of life and fostering sustainable and integrated development in the
communities where it operates is central to Tata Chemicals’ corporate philosophy. In
order to do so Tata Chemicals established Tata Chemicals Society for Rural Development
(TCSRD) in 1980 as a society and trust. The principle aim and objective as written in the
memorandum of association, of which Tata Chemicals is a principle promoter is to
undertake, carry out, promote, sponsor, assist or aid directly or in other manner, any
activity.

 Prime Ministers National Relief Fund:-

Project Description:-Tata Chemicals continues its support to any disaster, which hits our
country. This year relief support was provided in flood affected areas of Gujarat.

Project Budget: INR 0.75 Cr

14
https://csrbox.org/India_Company_Tata-Chemicals-Ltd.-Maharashtra_5427
15
https://crossbarriers.org/wp-content/uploads/2018/11/CSR-initiatives.jpg
  Inclusive Growth $ Empowerment(2017-18):-

CSR Project By:- Tata Chemicals Ltd.

Project Budget: INR 1.15 Cr

Project Sector : Gender, Equality and Women Empowerment, Senior Citizens Care

Project description:-TCL is reaching out to the socially backward population of the community
specially the women, scheduled caste and the scheduled tribe through its empowerment program.
The objective of the empowerment program is to mainstream them by including them in all the
developmental programs.16

Oil And Natural Gas Corporation Ltd (ONGC) 17

Sector : Oil Drill Allied

International Origin : No

Company Type: PSU, Exchange Listed

ONGC, Indian multinational oil and gas company headquartered in Dehradun, India is a Public
Sector Undertaking (PSU) of the Government of India, under the administrative control of
the Ministry of Petroleum and Natural Gas. It is India's largest oil and gas exploration and
production company. It produces around 69% of India's crude oil (equivalent to around 30% of

16
https://www.tcs.com/corporate-sustainability
17
https://csrbox.org/India_Company_Oil-and-Natural-Gas-Corporation-Ltd-(ONGC)-Uttarakhand_27
the country's total demand) and around 62% of its natural gas. ONGC was founded on 14 August
1956 by Government of India, which currently holds a 68.94% equity stake. It is involved in
exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and owns and
operates over 11,000 kilometers of pipelines in the country. Its international subsidiary ONGC
Videsh currently has projects in 15 countries. ONGC has discovered 6 of the 7 commercially-
producing Indian Basins, in the last 50 years, adding over 7.1 billion tonnes of In-place Oil &
Gas volume of hydrocarbons in Indian basins.18

CSR Financial Details (INR Cr.)

19

Working Areas

Eradication Hunger, Poverty, Malnutrition

Preventive Healthcare, Water and Sanitation

Education, Employability and Livelihoods Enhancement

Gender, Equality and Women Empowerment, Senior Citizens Care

Environmental Sustainability
18
https://www.ongcindia.com/wps/wcm/connect/en/about-ongc/ongc-at-a-glance/corporate-profile/
19
https://csrbox.org/India_Company_Oil-and-Natural-Gas-Corporation-Ltd-(ONGC)-Uttarakhand_27
Heritage conservation, Promoting Art, Craft and Culture, Public Libraries

Armed Forces Veteran Welfare

Promoting national and rural sports, Paralympic, Olympic sports

Rural Development

Contribution to Central Government Fund

Slum Area Development, Housing for poor

CSR projects of ONGC in detail:-

 Swacch Bharat - A CSR initiative by ONGC

The Swacch Bharat Campaign is implemented across ONGC by conducting regular cleanliness
drives in office premises, installations and in and around operational areas of ONGC. The
historic Jantar Mantar adopted by ONGC witness's regular cleanliness drive on weekly basis to
retain its magnificent glory. Under Swachh Smarak, ONGC would incorporate up gradation,
beautification, cleanliness and maintenance of monuments including construction,
restoration/refurbishment, illumination, landscaping etc based on a Comprehensive Conservation
and Development Plan as developed by ASI. For SwachhVidhyalaya campaign, the project of
providing sanitation facilities to 8500 schools across India is through NGOs and Sulabh
Sauchalaya. ONGC aims to create 50,000 individuals household latrines per year at various
operational areas by financially supporting the state government sanitation missions there. 500
events per annum such as Quiz competition, drawing competitions, poster competition, etc. are
also to be conducted to implement the campaigns on real time basis and to bring greater
awareness among the employees and school children.

 Project Utkarsh- Livelihood Project in Sibsagar (Ongoing)

20

Project Sector: Eradication Hunger, Poverty, Malnutrition, Education, Employability and

Livelihoods Enhancement, Gender, Equality and Women Empowerment, Senior Citizens Care.

Project Description:-

This project seeks to expand livelihood opportunities for 400 households in one year through
training of women in skills like tailoring, soft toy making etc. with linkages for income
generation as well as training the elderly in vocations like goatery, piggery, mushroom
cultivation etc, while establishing adequate forward and backward linkages.

20
https://csrbox.org/India_CSR_Project_Oil-and-Natural-Gas-Corporation-Ltd-(ONGC)-Project-Utkarsh--
Livelihood
Some recent reformation of Society by the help of Corporate Social
Responsibility.

1. In Cyclone Fanny state Orissa

The Union ministry of corporate affairs has allowed contributions made by corporates to the
Odisha State Disaster Management Authority (OSDMA) for Cyclone Fani relief and restoration
works to be covered under corporate social responsibility (CSR) activity.

It will set up a benchmark in this corporate world that whenever we need to restore the society
we have to keep in mind this CSR, which includes relief, rehabilitation and reconstruction works
as part of disaster management in terms of liberal interpretation.

This new concept would push corporate organizations to release funds and other support to
victims of the cyclone, which has affected 14 districts in Odisha. Corporate bodies can also help
in restoring public infrastructure like power, telephone, water supply and public utility buildings
that have been damaged by the calamity. Thus we can say that this hand of Corporate helps in
developing a new dimension towards development of organization and as well as society21.

2. In Kerala Flood

The state Kerala is the victim of impenetrable rains and unprecedented floods during this
monsoon season have taken more than 400 lives. Northward of 3 lakh people are still sheltered in
relief centres. In this regards companies are willing to provide medical aid and can account those
as expenses towards promoting health care, including preventive health care. Food supply can be
covered under eradicating hunger, poverty and malnutrition and supply of clean water can be
covered under sanitation and making available safe drinking water. Companies directly donating
to the chief minister’s relief fund are already getting covered under the CSR provision of the
Companies Act22.

21
https://indiacsr.in/cyclone-fani-corporate-donations
22
https://www.news18.com/news/india/kerala-floods-centre-agrees-to-divert-csr-collections-to-cm-relief-fund-
1862193.html
In the light of above example, I would like to quote one new notification of government in this
row that Indian companies will now be able to count all expenditure done towards disaster relief
activities as part of their required annual Corporate Social Responsibility (CSR) spend.

In 7th June 2019 the corporate affairs ministry has included “disaster management consisting
relief, rehabilitation and reconstruction activities” in a list of activities that companies are
permitted to count towards their CSR spend through an official notification. This steps of
government comes after reformation of societies in Kerala by the help of CSR which was badly
destroyed by Flood in the last year23. Through this notification our government also listed some
activities in this row like as hunger and poverty alleviation activities, promotion of education and
vocational training, and promotion of gender equality. Thus we can say that concept of CSR
seems to be a dynamic in nature and in later point of time helps in development of the Nation.

Importance of Corporate Social Responsibility

It is extremely important that an organization or a company operates in a way that demonstrate

social responsibility. Although it is not a legal requirement, it is seen as a good practice for
company to take into account social and environment issue. Social responsibility and ethical
practices are vital to a company success. The 2015 Cone Communications Global CSR study
found that a staggering 91% of global consumers expect companies to do more than make a
profit, but also operate responsibly to address social and environmental issues,84% say they seek
out responsible products whenever possible,90% would boycott a company if they learned of
irresponsible or unreal business practices . The said data shows that, consumers are increasingly
aware of about the importance of social responsibility and actively seek products from business
that operates ethically. CSR demonstrate that a business that takes an interest in wider social
issues, rather than just those that impact only company's margin profit, which will attract the
customers who share the same values. Therefore, it makes a good business sense to operate
sustainably. Thus the CSR concept is important for the satisfaction of both customers and the
company itself24.

Criticism

As every coin has two face one is positive face and another is negative face, like a coin the CSR
policy have also two face one is the positive side and the another is negative side. The very first
criticism from my side regarding the CSR is that, companies are work with the CSR policy as per
the Companies Act, 2013 and donate 2 percent of the profit of last three precedent year. I think it
is just a part of fashion of the company to establish a name in the market nothing else.
Companies are donating a huge amount of its profit in on the name of social responsibility but a
reality about that companies is that a huge number of employees are appointed in these company
on contract basis they are compel to get an unsatisfied and unreasonable amount on the name of
salary. As per a data a prestigious company "Suzuki " have 32% contractual worker in 2013-14
and this data increase upto 42% contractual workers in 2015-16 this shows that data increases
day by day. Another surprising data shows that Coal India have 55% contract workers. As these
contractual workers are not satisfy with their payment and yes from their payment gap between
the regular employees and the contractual employees. A company will get succeed and will able
to more and more profit if all the employees of the companies will satisfy in each manner. So I
think a company should work in the area to satisfy the workers instead of to donate in CSR fund.
A company should make sure that all the employees of the company will get a reasonable and
equal payment for equal work. In a company if an employee get different salary for the same
work it will also the infringement of the article 14, 16 and 39(d) of the Constitution. That's why a
company should work towards to establish a level playing field between all the employees
instead of encourages these CSR type schemes.

24
https://www.highspeedtraining.co.uk/.../importance-of-corporate-social-responsibility
 CONCLUSION
After completing this project I am on the conclusion that the corporate social responsibility is to
boost the economic growth of any country. In our country India, INFOSYS, ITC, TATA and
ONGC are playing an anchor role to contribute a part of their substantial profit to the
stakeholders. No company in this world want to donate a share of profit towards a social work by
itself unless a strict provision compel it to take part in it. When a company contributes a part of
their profit towards the society, it will also create a brand value of their own name. In India, Tata
sons (JRD Tata) in the mid1800s started the initiative to boost up financial inclusion. But there
are some criticism also connected with it which I have discussed above like as the companies
paying tax to the government for the economy growth of the country then why government
imposes an extra burden on the companies. Another critics regarding that is the company should
make sure to its own employees in each and every way instead of donating a fund in CSR.
Companies should try to decrease the contract workers by giving a equal wage to all of its
employees at the same level.
 Bibliography

 Internet Websites Referred

 https://www.managementstudyguide.com/corporate-social-responsibility.htm

 https://www.fiverr.com/eudiusriri/create-a-good-csr-project-for-you
 https://courses.lumenlearning.com/boundless-business/chapter/social-responsibility/
 http://www.businessdictionary.com/definition/corporate-social-responsibility.html
 http://www.fiinovation.co.in/corporate-social-responsibility/
 https://www.nseprimeir.com/z_BlueDart/files/BlueDart_Roles_and_Responsibility_of_th
e_Board_committees.
 http://book.mca.gov.in/Childwindow1.aspx?pageid=17923&type=CA&ChildTitle=Sched
ules&SearchText=
 https://csrbox.org/India_Company_Reliance-Industries-Ltd-Maharashtra_20
 https://csrbox.org/India_Company_Tata-Chemicals-Ltd.-Maharashtra_5427
 https://crossbarriers.org/wp-content/uploads/2018/11/CSR-initiatives.jpg
 https://www.tcs.com/corporate-sustainability
 https://csrbox.org/India_Company_Oil-and-Natural-Gas-Corporation-Ltd-(ONGC)-
Uttarakhand_27
 https://www.ongcindia.com/wps/wcm/connect/en/about-ongc/ongc-at-a-glance/corporate-
profile/
 https://csrbox.org/India_Company_Oil-and-Natural-Gas-Corporation-Ltd-(ONGC)-
Uttarakhand_27
 https://csrbox.org/India_CSR_Project_Oil-and-Natural-Gas-Corporation-Ltd-(ONGC)-
Project-Utkarsh--Livelihood
 https://indiacsr.in/cyclone-fani-corporate-donations
 https://www.news18.com/news/india/kerala-floods-centre-agrees-to-divert-csr-
collections-to-cm-relief-fund-1862193.html
 https://www.highspeedtraining.co.uk/.
 Article Referred-
 CSR should contribute to the national agenda in emerging economies - the
‘Chatterjee Model’,1 Feb.2017, Bhaskarchattergy and Narayan Mitra,U.S.
Department of State's Bureau of International Information Programs.
 Philip Levine Reads “What Work Is” at the Library of Congress, Corporate Social
Responsibility in Americaby the U.S. Department of State's Bureau of
International Information Programs.
 Act Used-
 The Company Act 2013