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CORPORATE SOCIAL RESPONSIBILITY

CORPORATE SOCIAL RESPONSIBILITY – NEW COMPANY BILL – 2013

SCOPE

  • Identifying Area
  • Under Privileged Welfare
  • Service to Society
  • Vocational Training / Skill Development
  • Employability
  • Senior Citizen
  • Basic Education Module
  • Medical service

CORPORATE SOCIAL RESPONSIBILITY (CSR)

An Example of Initiative to take – Skill development

  • The Company Act, 2013, which came into effect on 1st April 2014, lists Corporate Social Responsibility (CSR) mandate for Indian companies.

Corporate Social Responsibility Provisions applicable to every company having:

  • Net worth of  5 billion or more; or
  • Turnover of  10 billion or more; or
  • Net profit of 50 million or more during any FY.
  1. BOD of such companies is mandated to spend, in every FY, minimum 2% of the average net profits of the company made during the 3 immediately preceding FYs, in pursuance of its the CSR Policy.
  2. Such companies to constitute CSR committee of its BOD consisting of minimum 3 directors including 1 Independent Director.
  3. CSR committee shall formulate and recommend to the BOD, CSR Policy on the lines specified.
  4. BOD of such companies shall mandatorily spend, in every FY, minimum 2% of the average net profits of the company made during the 3 immediately preceding FYs, in pursuance of its CSR Policy. If the company fails to spend such amount, BOD shall specify the reasons for not spending the amount in the BOD report.
  5. The company is required to give preference to local area and areas where it operates for spending the amount earmarked for CSR.
  6. If the company fails to spend such amount, BOD is required to specify the reasons for not spending the amount in the Director’s report.
  • Over the past year, NSDC has evolved a robust framework to solicit funds for skill development projects in line with these guidelines. While many private and public sector enterprises have supported vocational training programs in the past, the Act provides an opportunity to tap into these funds in a structured manner. Today, NSDC can assist any entity to design structure and manage skill development projects due to its nation-wide presence through its training organizations.
  • NSDC works with Corporate, Foundations, Government, and community-based organizations in structuring high impact collaborative projects.
  • The Project can be structured through a direct bipartite agreement, or a tripartite agreement with contributions to the National Skill Development Fund, a Government of India fund under the Ministry of Skill Development & Entrepreneurship. All projects are implemented through approved training partners of NSDC, with monitoring and reporting of project outcomes provided centrally by NSDC.
  • NSDC actively participates in CSR discussions to advocate for skill development through outreach events, industry forums, one-on-one consultations and other ways.
  • NSDC is a not-for-profit company set up by the Ministry of Finance, under Section 25 of the Companies Act. It has an equity base of Rs. 10 crore, of which the Government of India holds for 49%, while the private sector has the balance 51%.
  • The National Skill Development Corporation, (NSDC) is a one of its kind, Public Private Partnership in India, under the Ministry of Skill Development & Entrepreneurship. It aims to promote skill development by catalyzing creation of large, quality, for-profit vocational institutions.
  • There are 34  Sector Skill Councils , which have great potential of Placement after certification. There is a great opportunity to be part of Govt of India Skill development Mission & to connect with Make in India .

CSR  Planning & Feasibility

  • Goal, Objective Setting for Board of Director
  • In line with Company Mission, Vision & area of operation
  • Perspective Planning
  • Area profiling, baseline survey, gap analysis, target setting
  • Sector Synchronization
  • Own, Govt. program. & other CSR initiatives, target group selection
  • Budget Setting
  • Training, manpower, material, monitoring, dissemination & workshop
  • Implementation
  • CSR Committee Support
  • Involvement of top mgt., periodic reporting, knowledge mgt
  • Partnership Formation
  • Partner profiling, evaluation, orientation & training
  • CSR Area Planning
  • Mapping, participatory planning, budgeting, prioritization & phasing
  • Area Resource Mobilization
  • Dovetailing existing initiatives, community mobilization, training & facilitation
  • Monitoring & Reporting
  • Monitoring & Evaluation
  • MIS, Framework dev. periodic evaluation, impact assessment
  • Reporting & Documentation
  • Companies Act format, Photo documentation
  • Knowledge Management
  • CSR Support Desk
  • Data compilation, sector and area reviews, manpower support