Corporate Social

Responsibility
Prepared By :-
Name : Fagun Soni
Roll No : 22154
MBA (Evening 2021-2024) Sem-1
Corporate Social Responsibility (“CSR”)
• Corporate Social Responsibility is what an organization does to influence the Society in
which it exists. such as through volunteer assistance programs. Corporate Social
Responsibility is a part of business and professional ethics of companies. Different tasks
and activities are performed under CSR for Betterment of the society in which business
exists and it is also known as Corporate Citizenship and Corporate Sustainability.

United Nations Industrial Development Organization use following Definition for CSR:
“CSR ‘is generally understood as being the way through which company achieves a balance
of economic, environmental and social Imperatives (“ Triple Bottom line approach”), while
addressing the expectations of stake holders.”

The European model is much ore focused on operating the core business in socially
responsible way, complemented by investment in communities for solid business case
reasons.
In different countries there are different priorities ans Values that will shape how the
business act.
Phases of CSR in India
1st Phase (1850 - 1914)
The First phase of the CSR was mainly driven by noble deeds of philanthropists and charity.
In the times of famines, they open their warehouses and graininess for poor and hungry
people. Rich businessmen share their riches with society by setting up temples, religious
trust influenced by their family values and culture. In preindependece era, the industrialist
families like TATAs, Birlas, Modis, Godrejs, Bajajs, Singhanias, promoted the Concept by
setting up the Charitable institutes, Healthcare institutes, Trusts for community
development. However it is observed that their efforts toward social development was
influenced by caste group and political objectives.

2nd Phase (1914-1960)

During the second phase, During the independence movement Indian Industrialists
pressurized to show their Dedication towards progress of the society. During this era
Mahatma Gandhi introduced the notion “ Trusteeship” according to which the industry
leaders had to manage their wealth so as to benefit the Common-man. He influenced the
industrialists and business houses to build trusts for colleges, research and training
institutes. These trusts also worked to enhance social reforms like rural development,
women empowerment and education.
Phases of CSR in India (Contd...)
3rd Phase (1960-1990)
During this phase CSR was influenced by public sector undertakings for equal distribution
of wealth. The policy of industrial licensing, high taxes and restrictions on the private sector
resulted in corporate malpractices. This led to enactment of legislation regarding corporate
governance, labor and environmental issues. Still the PSUs were not very successful.
Therefore there was a natural shift of expectation from the public to the private sector and
their active involvement in the socio-economic growth.

4th Phase ( 1990 Onwards)

In the fourth phase Indian companies integrated CSR into a sustainable business strategy.
In 1990s Liberalization there was a boom in economic growth of the country and increased
momentum of Industrial growth making it more possible for companies to contribute
towards social responsibility. what started with charity now understood and accepted as
Responsibility.
Gandhiji’s Concept of “Trusteeship”
Mahatma Gandhi introduced the notion of "trusteeship", according to which the
industry leaders had to manage their wealth so as to benefit the common man. "I
desire to end capitalism almost, if not quite, as much as the most advanced
socialist. But our methods differ. My theory of trusteeship is no make-shift,
certainly no hide. I am confident that it will survive all other theories."This was
Gandhi's words which highlights his argument towards his concept of
"trusteeship". Gandhi's influence put pressure on various Industrialists to act
towards building the nation and its socio-economic development. The founder of
the Tata group, J.R.D. Tata was influenced by Gandhi's idea of trusteeship. He
developed his personal and professional life based on this idea.
Legal Provision for CSR in India
• Legal Provisions
Section 135 of the Companies Act 2013, Companies (Corporate Social
Responsibility) Rules 2014 and Schedule VII (Collectively “Provisions”) Prescribes
mandatory provision for Companies to Comply with CSR.

• Applicability of CSR.
Provisions of CSR applicable to
- Every Company including its holding or Subsidiary and Foreign company having
1. Netwoth of Rs. 500 Crore or more
2. Turnover of Rs. 1000 Crore or more
3. Net Profit of Rs. 5 Crore or more
During Immediate preceding financial year.
Legal Provision for CSR in India (Contd..)
• CSR Committee
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 authorized person resident in India and another nominated by
the foreign company
Legal Provision for CSR in India (Contd..)

•Schedule 7
Activities which may be included by companies in their Corporate Social
Responsibility Policies relating to:
1.Eradicating hunger, poverty and malnutrition,promoting health care including
preventive health care and sanitation including contribution to the Swach
Bharat Kosh set-up by the Central Government for the promotion of sanitation
and making available safe drinking water.
2.Promoting education, including special education and employment enhancing
vocation skills especially among children, women, elderly and the differently
abled and livelihood enhancement projects.
3.Promoting gender equality, empowering women, setting up homes and hostels
for women and orphans; setting up old age homes, day care centres and such
other facilities for senior citizens and measures for reducing inequalities faced
by socially and economically backward groups.
4.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 the Clean
Ganga Fund set-up by the Central Government for rejuvenation of river
Ganga.
Legal Provision for CSR in India (Contd..)

5. 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;
6. Measures for the benefit of armed forces veterans, war widows and their
dependents;
7. Training to promote rural sports, nationally recognised sports, paralympic
sports and olympic sports
8. Contribution to the Prime Minister’s national relief fund or any other fund set
up by the central govt. for socio economic development and relief and welfare
of the schedule caste, tribes, other backward classes, minorities and women;
9. Contributions or funds provided to technology incubators located within
academic institutions which are approved by the central govt.
10.Rural development projects
11.Slum area development.
CSR Activity of Prudent Corporate Advisory
Services Limited

LakshMe is a CSR initiative by Prudent Group. The founding idea of LakshMe is to

impart the much-needed financial knowledge to women so that they know how to
make their money work. We believe that money matters are not only the responsibility
of men but women too. But women often shy away from this responsibility. Thus,
gaining financial knowledge is the first step towards breaking other barriers which
would empower them with belief and confidence in order to manage their finances.
Our belief is simple – an educated woman is a powerful ally. So, we want to educate
women about finance so that they can shoulder their family’s financial responsibilities
with their head held high. Lakshme works on the concept that you will truly never be
free until you are financially independent. “If I am financially able, my life will stable”
 “Women make better investors, they are more consistent
and also are better at letting it go. They know when to cut
their losses and can hold the portfolio for the long-term.
Women should acknowledge these strengths and start
working towards being financially independent.”
Sanjay Shah
(Founder & Director of Prudent)
A properly implemented CSR concept can bring along a variety of competitive
advantages, such as enhanced access to capital and markets, increased sales and
profits, operational cost savings, improved productivity and quality, efficient
human resource base, improved brand image and reputation, enhanced customer
loyalty, better decision making and risk management processes.

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