The World Business Council for

Sustainable Development
defines the CSR as a business'
commitment to contribute to sustainable
economic development, working with
employees, their families, the local
community, and society at large to
improve their quality of life. Under this
point of view, the CSR rests on the
fundamental pillars of both the economic
growth and the quality of life as an
engine for sustainable development.

Models of CSR
1. Economic: to satisfy economic needs of
society.
2. Legal: a company is bound to obey the
law of the land.
3. Ethical: norms which the society expects
the business to observe though they may
not be mandated by law.
4. Philanthrophic : voluntary contribution of
the business to the social cause of
community development.

Corporate /Business Groups have been

traditionally engaging in C S R.

Greater responsibility to set out clear frame

work to ensure strict compliance.

As per Section 135 (Section) of the

Companies Bill, the following companies will
have to abide by this
requirement:

Companies having a net worth of rupees 500

crore or more.

Companies having a turnover of rupees 1000

crore or more.

Companies having a net profit of rupees 5 crore

or more.

How to fulfill
obligations?

Each qualifying company to form a CSR

committee,
consisting of 3 & more directors.

Which will formulate CSR policy & effectively

monitor the
CSR activities.

Unspent amount of the specified CSR spent to

the rolled over to the accordingly financial year.

Who is responsible?

Board of Directors are responsible to ensure

that company spends the mandate CSR
disclose.

Mandate of the CSR committee:

To formulate and recommend a CSR policy to

the board.

To recommend the amount of expenditure to be

increased on CSR activities.

To monitor the CSR policy of the company from

time to time.

How?

The company can set-up a not-for-profit organisation in the form

of trust,
society or non-profit company to facilitate
implementations of its CSR activity.

The company me also implement its CSR program through notfor-profit organizations that are not set up by the company itself.

Such origanizations have an established track record of at least

3 years in carrying on activities in related areas.

Companies may also collaborate or pool resources to undertake

CSR activity.

Only CSR activities undertaken in India would be considered as

eligible CSR
activities.

CSR programs may also focus on integrating business models

with social and
environmental priorities and processes in order to
create shared value.

What constitutes eligible CSR

spend
Activities which may be considered as eligible CSR spend are
provided in Schedule VII of the Act. The specified activities are as
under:

Education

Environment sustainability

Empowering women and promoting gender equality

What constitutes eligible CSR

spend
Activities which may be considered as eligible CSR spend are
provided in Schedule VII of the Act. The specified activities are as
under:

Poverty reduction and eradication hunger

Social business projects

Reducing child mortality & improving maternal health

What constitutes eligible CSR

spend
Activities which may be considered as eligible CSR spend are
provided in Schedule VII of the Act. The specified activities are as
under:

Improvement of health

Imparting of vocational skills

What constitutes eligible CSR

spend

Activities which may be considered as eligible

CSR spend are
provided in Schedule VII of the Act.
The specified activities are as under:

Contribution towards Central & State Government

funds for
socio-economic development and relief.