With the introduction of companies’ act 2013, India has become first
country to mandate CSR. The fact that CSR initiatives are taken voluntarily, has
been ignored and the act has provided for compulsory spending on CSR.
As
per section 135 of the new act, Every company having net worth of rupees five
hundred crore or more, or turnover of rupees one thousand crore or more or a
net profit of rupees five crore or more during any financial year shall
constitute a CSR committee of the board consisting of three or more directors
(at least one shall be independent director). The committee shall
1. Formulate
and recommend to the board a CSR policy
2. Recommend
the amount of expenditure, and
3. Monitor
the CSR policy.
The
Companies Act 2013 encourages companies to spend at least 2% of their average
net profit in the previous three years on CSR activities. The ministry’s draft
rules, that have been put up for public comment, define net profit as the
profit before tax as per the books of accounts, excluding profits arising from
branches outside India
Applicability: Every
company having net worth of rupees five hundred crore or more, or turnover of
rupees one thousand crore or more or a net profit of rupees five crore or more
during any financial year shall constitute a Corporate Social Responsibility
Committee of the Board consisting of three or more directors, out of which at
least one director shall be an independent director.
•The
Board's report under sub-section (3) of section 134 shall disclose the
composition of the Corporate Social Responsibility Committee.
The
Corporate Social Responsibility Committee shall,—
•Formulate
and recommend to the Board, a Corporate Social Responsibility Policy which
shall indicate the activities to be undertaken by the company as specified in
Schedule VII;
•Recommend
the amount of expenditure to be incurred on the activities referred to in
clause (a)
•Monitor
the Corporate Social Responsibility Policy of the company from time to time.
SOCIAL RESPONSIBILITY AND RELATED DISCLOSURE:
1) Means
of Communication
2) Various
Social Responsibilities fulfilled by Company
3) Customer
care Grievance
4) Financial
Risk Management
5) Business
Environmental Responsibility
Economic
growth is possible only through consumption of inputs available in the
environment and society. The harnessing of natural resources has a direct
impact on the economy, the environment and society at large. Corporate Social
Responsibility (CSR) is a concept whereby organizations serve the interests of
society by taking responsibility for the impact of their activities on
customers, employees, shareholders, communities and the environment in all
aspects of their operations. Corporate social responsibility is not about just
giving randomly but about bringing benefits to all the stakeholders, including
customers, employees and community at large.
•Respect
for Worker’s Right and Welfare: The companies should provide the workplace
environment that is safe, hygienic and humane to work. They should be taken
care of the heath issues arising out of the work of the organization. It should
conduct the training and development program within the organization for the
people of the organization.
•Woman
Empowerment: Empowering women and achieving gender equality – the goals of the
Women’s Empowerment Principles - requires intentional actions and deliberate
policies. The WEPs are based on concrete business practices and have inspired
companies around the world to tailor existing policies and programmes – or
establish needed new ones – to realize women’s empowerment.
Corporate
Social Responsibility Dimensions
•Sport
Promotion: These include CSR initiatives and investments in the sector by
leading corporate houses, and non-profit foundations. These foundations are
chiefly involved in providing opportunities to children from the
under-privileged sections to take up sports, supporting promising sportspersons
in accessing world class training facilities and developing sporting
infrastructure.
•Employment
Generated: Jobs continue to be created, needing an educated workforce and many
in sunrise sub-sectors. We need to recognize new opportunities and prepare the
supply side.
•Educational
Employee Training: Employee training and development is a broad term covering
multiple kinds of employee learning. Training is a program that helps employees
learn specific knowledge or skills to improve performance in their current
roles.
•Employee Grievance:
refers to the dissatisfaction of an employee
with what he expects from the company and
its management. A company has to provide an employee
with a safe working environment, realistic job
preview, adequate compensation, respect
etc.
•Benefits
of Employee Welfare: They provide better physical and mental health to workers
and thus promote a healthy work environment. Facilities like housing schemes,
medical benefits, and education and recreation facilities for worker's families
help in raising their standards of living. This makes workers to pay more
attention towards work and thus increases their productivity. Employers get
stable labor force by providing welfare facilities. Workers take active
interest in their jobs and work with a feeling of involvement and participation.
•Increased
Sales and Customer Loyalty: The customers also recognize those companies which
are socially responsible. This results in increased sales and content
customers.
•Complaint
Received During the year: A customer complaint highlights problems with
employees or internal processes and you can fix them before further problems
arise and cause a bad customer experience. One of the advantages of CRM is that
you can keep a record of customer feedback, both positive and negative.
•Complaint
Resolved: The complaint is closed as Resolved because the provider has met the
member's request for resolution to the complaint (as outlined on the Complaint
Resolution Process complaint form).
•Complaint
Pending: The complaint is currently in process. No final outcome has been
determined.
•Investor
Education and Protection Fund (IEPF): is for promotion of investors’ awareness
and protection of the interests of investors. This website is an information
providing platform to promote awareness, and it does not offer any investment
advice or evaluation.
•Financial
Risk
Management
Financial
Risk Management
is the
practice of economic value in a firm by using financial instruments to
manage exposure to risk, particularly credit risk and
market risk. Other types include Foreign exchange risk, Shape risk, Volatility
risk, Sector risk, Liquidity risk, Inflation risk, etc. Similar to general risk
management, financial risk management requires identifying its sources,
measuring it, and plans to address them. Profit Risk is a risk management tool
that focuses on understanding concentrations within the income statement and
assessing the risk associated with those concentrations from a net income
perspective.
•Legal
Risk Management
Legal
Risk Management refers to the process of evaluating alternative regulatory and
non-regulatory responses to risk and selecting among them. Even with the legal
realm, this process requires knowledge of the legal, economic and social
factors, as well as knowledge of the business world in which legal teams
operate. In an organizational setting, risk management refers to the process,
by which an organization sets the risk tolerance, identifies potential risks
and prioritizes the tolerance for risk based on the organization’s business
objectives, and manages and mitigates risks throughout the organization.
•Risk
Management
Risk
Management and Internal Control help organizations understand the risks they
are exposed to, put controls in place to counter threats, and effectively
pursue their objectives. They are therefore an important aspect of an
organization’s governance, management, and operations. Professional accountants
can and should play a leading role in helping their organizations achieve an
integrated, organization-wide approach to risk management and internal
control—which ultimately helps create, enhance, and protect stakeholder value.
Business
Environmental Responsibility
The
companies are required to utilize the Planet i.e., Natural Capital in a well manner
so that it cannot be wasted, excess utilized which is also required for the
other states or countries and also requires to be preserve for the future
generation.
Environmental
management system that offers a framework that companies and organizations can
follow in order to set up an effective environmental management program. Its
certificate means that the company or organization is measuring and reducing
its environmental impacts. Sustainability Report is used by companies to
communicate their economic, environmental and social activities to depict
transparency and compliance to rules and regulations.
•Audit
of Environment: There are three main types of audits which are environmental
compliance audits, environmental management audits to verify whether an
organization meets its stated objectives, and, functional environmental audits
such as for water and electricity.
•Pollution
Control: Pollution prevention is a major global concern because of the harmful
effects of pollution on a person’s health and on the environment. Environmental
pollution comes in various forms, such as: air pollution, water pollution, soil
pollution, etc.
•Project
Location and Development: Project management is the discipline of initiating,
planning, executing, controlling, and closing the work of a team to achieve
specific goals and meet specific success criteria.
•Forest
and Plantation of Tress: Industrial plantations are actively managed for the
commercial production of forest products. Industrial plantations are usually
large-scale. Individual blocks are usually even-aged and often consist of just
one or two species. These species can be exotic or indigenous. The plants used
for the plantation are often genetically altered for desired traits such as
growth and resistance to pests and diseases in general and specific traits.
•Plants
having Child Labour: The social scenario, however, changed radically with the
advent of industrialization and urbanization under the impact of the newly
generated centrifugal and centripetal forces; there was an unbroken stream of
the rural poor migrating to urban center in search of livelihood. The child had
to work as an individual person either under an employer or independently. His
work environment endangered his physical health and mental growth and led to
his exploitation. The protection and welfare of these children, therefore,
become an issue of paramount social significance.
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