PRESENTATION

Corporate Social Responsibility

and Sustainable Development

Presented By – Shaloni Singh

 DEFINITION OF CORPORATE SOCIAL
RESPONSIBILITY

Corporate Social Responsibility (CSR) is the idea that a company should play a positive
role in the community and consider the environmental and social impact of business
decisions.
Corporate Social Responsibility is a concept whereby organization consider the impact
of their activities on customers, employees, shareholders, communities and the
environment, for all the aspects of their operation.
CSR is about how companies manage the business processes to produce an overall
positive impact on society.
CSR helps both improves various aspects of society as well as promote a positive brand
image of company.
 TYPES OF CORPORATE SOCIAL
RESPONSIBILITY

In general, there are four main types of corporate social responsibility.

1. Environmental responsibility
 Environmental responsibility refers to the an organization’s commitment to
sustainability and environmentally friendly operations. Reduce pollution and the
sustainable use of natural resources.
2. Ethical/Human rights responsibility
 It include setting a higher minimum wage and ensuring that all employees
receive competitive pay and comprehensive benefits as well as treated with respect.
 TYPES OF CORPORATE SOCIAL
RESPONSIBILITY

Philanthropic responsibility
It means company activities to improve society by choice. This usually means helping
the society through donations.
Companies help the underdeveloped areas of their society where they operate with the
only goal of improving their living standards for them.
4. Economic responsibility
 It involve improving the firm’s business operation while participating in sustainable
practices – for example, using a new manufacturing process to minimize wastage.
 APPLICABILITY

In India, the concept of CSR is governed by clause 135 of the companies Act, 2013.
According to Section 135(1), To all companies that have either of the following in any
financial year:
►Net worth of INR 500 crore or more
►Turnover of INR 1000 crore or more
►Net profit of INR 5 crore or more

* All Companies means every Company including its holding or subsidiary and
foreign company having its branch office or project office in India.
 CORPORATE SOCIAL RESPONSIBILITY

• The new rules, which are applicable from the fiscal year 2014-15 onwards, also require
companies to setup a CSR committee consist of their board members, including at least
one independent director.
• The Act encourages companies to spend at 2 % of their average net profit in the
previous three years on CSR activities.
• The indicative activities, which can be undertaken by a company under CSR, has
specified under Schedule VII of the Act.
• Only CSR activities undertaken in India will be taken into consideration.
• Activities meant exclusively for employees and their families will not qualify under
CSR.
 CSR COMMITTEE

 Every company to which CSR criteria are applicable shall constitute a Corporate Social
Responsibility (CSR) Committee.
 The CSR Committee should consist of 3 or more directors, out of which at least 1
director must be an independent director.
 An unlisted public company or a private company shall have its CSR Committee
without any independent director if an independent director is not required.
 A private company having only two directors on its Board shall constitute its CSR
Committee with two directors.
 In the case of a foreign company, the CSR Committee shall comprise of at least 2
persons of which one person shall be a person resident in India authorized to accept on
behalf of the foreign company – the services of notices and other documents. Also, the
other person shall be nominated by the foreign company.
 CSR ACTIVITIES UNDER SCHEDULE VII
OF THE COMPANIES ACT 2013

The following are the types of CSR activities in India that the qualifying listed
companies under the Companies Act 2013 can contribute to:
 Eliminate extreme hunger and poverty;
 Promotion of education;
 Promotion of gender equality and empowering women;
 Reducing child morality and improving maternal health;
 Ensuring environmental sustainability
 CSR ACTIVITIES UNDER SCHEDULE VII
OF THE COMPANIES ACT 2013

 Employment enhancing vocational skills;

 Social business projects;
 Contribution to the Prime Minister's National Relief Fund or any other fund setup by
the Central Government or the State Governments for socio-economic development
and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes,
other backward classes, minorities and women.
 BENEFITS OF CORPORATE SOCIAL
RESPONSIBILITY

 Increased employee loyalty and retention.

 Increased quality of products and services.
 Increased customer loyalty.
 Increased reputation and brand image.
 Easier access to funding
 Operational costs savings.
 Better financial performance.
 Organizational growth.
 SUSTAINABLE DEVELOPMENT

Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.

Sustainable development can be defined as an approach to the economic development of a

country without compromising with the quality of the environment for future generations.

Sustainable development can be defined as an approach to the economic development of a

country without compromising with the quality of the environment for future generations.
In the name of economic development, the price of environmental damage is paid in the
form of land degradation, soil erosion, air and water pollution, deforestation, etc. This
damage may surpass the advantages of having more quality output of goods and services.
 SUSTAINABLE DEVELOPMENT GOALS

 To promote the kind of development that minimizes environmental problems.

 To meet the needs of the existing generation without compromising with the quality of
the environment for future generations.
 To minimize the expenditure of natural resources while creating new developments.
 To provide a method for rebuilding existing developments to make them eco-friendly
facilities and projects.
 ELEMENT OF SUSTAINABLE DEVELOPMENT

The three core elements of sustainable development are:

 Environmental Conservation:
The primary focus of sustainable development is to protect the environment so that the
resources provided by it do not get destroyed.
 Social Development:
It aims to attain the well-being of an individual and society at large. It entails the
availability of necessary resources, proper healthcare, and good quality of life for
people.
 Economic Progress:
It encourages people to invest in sustainable efforts by persuading them through its
long-term benefits and supporting both the environmental and social elements of the
cause.
 ACHIEVING SUSTAINABLE DEVELOPMENT

 Sustainable development can be achieved if we follow the following points:

 It can be achieved by restricting human activities.
 Technological development should be input effective and not input utilizing.
 The rate of consumption should not surpass the rate of salvation.
 For renewable resources, the rate of consumption should not surpass the rate of
production of renewable substitutes.
 All types of pollution should be minimized.
 It can be achieved by sensible use of natural resources.
 CONCLUSION

One factor integral to both sustainable development and CSR is the

environment. The goal of CSR is to voluntarily incorporate economic,
social and environmental responsibilities into business operations to
build sustainable growth of business and show positive impact to the
environment, employees, consumers, shareholders and communities. In
short, development is sustainable when current and future generation’s
needs are fulfilled with the available resources. Corporations have
learned that CSR is one of the strongest tools for them to improve their
relationship as well as add value to society.
 …

THANK YOU