The evolving role of CSR in funding NGO

The evolving role of CSR in funding NGO

Here the article is speaking about the corporate social responsibility it's feather take
the view point that the corporate social responsibility that is according to all this
company which are mandatory provision given under the company act 2013 is
where these companies co-ordinate with NGOs so that ultimate outcome of the
program is successful and efficient.
1 It speaks about the corporate social responsibility.
2 It speaks about corporation between the companies and the NGOs so that the
outcome of the entire program become efficient.

What is corporate Social Responsibility?

We all people living in the society and company are also part of the society. When
the company Run their organization, these company, what they do? They sell out
their product to the people in the society, so they expect some profit from the
society. They are taking something from the people, so the Corporate social
responsibility Basically believe they are taking something from the society these
companies have to give back something to the society.

In India corporate social responsibility has been made mandatory through

provisions under act 135 of the company act 2013. According to the law a
company needs to spend it at least 2% of their average net profit and during the
third and immediately providing financial year for CSR activities.

Who is eligible for CSR?

1) Having a net worth of rupees 500crore or more, or

2) Having a turnover of rupees 1000 crore or more, or
3) have a net profit of rupees 5 crore or more, during a financial year.

If the particular company meets any of each criterion, not all the three criteria but
any single criteria. In such a case such a company will have to engage that is call as
cooperative responsibility. Should they have to take out certain percentage of the
profit and make sure that this money is Provision for the certain Social sector
development.

What are the areas where they would be able to provision certain amount of
Money in the social sector?

This includes

1. Eradicating Hunger, Poverty and Malnutrition.

2. Promoting education.
3. Promoting Gender equality.
4. CSR initiatives related to the environment.
5. Protection of national heritage, arts and culture.
6. Measures can be taken for benefits and support for of armed forces veterans, war
widows and families.
7. Contributions to the prime minister’s National Relief funds or any other fund
setup by the central government, for Welfare, development and relief of the
scheduled caste, tribes, other backward classes, women and minorities.
8. Contributions or fund provided to the development of the technology located
within the central government approved academic Institutions.
9. Contributions can be made towards rural development projects and slum area
development.

So the money they have provision under Corporate social responsibility can be

Spend on any social sector scheme and programs.

How CSR work in India?

When we speak about the CSR What we required is one of body which will have
Vigilant Eyes and overview is to how it to be Implemented. So what we have a
company Let's see for the example Infosys, Wipro or any other company. This
particular company will have what is called CSR committee.

Contribution of the CSR committee

1. Every company to which CSR criteria is applicable shall contribute a corporate
social responsibility of the board (I.e. CSR Committee.
2. Minimum 3 or more directors must for CSR committee.
3. Among those three directors, at least one director must be independent director.

What happened if the company fails to Spend CSR amount with a 1 year?

In that case they have to transfer The unutilized CSR funds to a "CSR ESCROW
Account”. And Insure that it's utilization happen in next 3 years. If the company
Fail to do even that it has to Transfer the Balance CSR amount to that is called
"National CSR fund".

Duties of CSR committee

1. The CSR committee shall formulate and recommend a CSR policy to the Board.
2. CSR Committee Shall Recommend amount of expenditure to be incurred on the
CSR activities to be undertaken by the company.
3. CSR Committee shall monitor the CSR policy of the Company for time to time.

What is not count as CSR?

Expenses incurred by companies for the fulfillment of any Act/ Statute of

regulations (such as Labor Laws, Land Acquisition Act etc.) would not count as
CSR expenditure under the Companies Act. • Contribution of any amount directly
or indirectly to any political party shall not be considered as a CSR activity. So any
activities which is not in the form of project cannot be Qualified as the CSR for
that company.

Now the most important question is

Why did the Corporation Social Responsibility come in the picture, why it is
important for the company as well?

That is because it will create positive image for the company let's say If I ask Most
trustable company you are aware of.
Most of all will say is TATA. In fact, there was also a web series as well called
"Scam 1992". In which the question was asked Which is the best share he would
like Suggest to him. In reply he said invest in Tata it will give you all the dividend
and profit Possible.

As important as CSR is for the community, it is equally valuable for a company.

CSR activities can help forge a stronger bond between employees and
corporations, boost morale, and aid both employees and employers in feeling more
connected to the world around them. Aside from the positive impacts to the planet,
here are some additional reasons businesses pursue corporate social responsibility.

Brand Recognition

According to a study published in the Journal of Consumer Psychology, consumers

are more likely to act favorably towards a company that has acted to benefit its
customers as opposed to companies that have demonstrated an ability to deliver
quality products.
Customers are increasingly becoming more aware of the impacts companies can
have on their community, and many now base purchasing decisions on the CSR
aspect of a business. As a company engages more in CSR, they are more likely to
receive favorable brand recognition.

In Conclusion.

Corporate social responsibility is more than just a business trend or fad. Businesses
that want to stay relevant to new generations and who want to help people in need
around the world while increasing their own revenue and efficiency will benefit
from embracing CSR.
BY – GROUP 3

Apurva Dwivedi
Gaurav Yadav
Aditya Singh
Anjali Kumari
Avantika Gupta