WHAT IS CSR?
The term "Corporate Social Responsibility (CSR)" can be referred as corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to companies efforts that go beyond what may be required by regulators or environmental protection groups.
Moreover, while proposing the Corporate Social Responsibility Rules under Section
135 of the Companies Act, 2013, the Chairman of the Board mentioned the Guiding
Principle as follows:
"CSR is the process by which an organization thinks about and evolves its
relationships with stakeholders for the common good, and demonstrates its
commitment in this regard by adoption of appropriate business processes and
strategies. Thus CSR is not charity or mere donations. CSR is a way of conducting
business, by which corporate entities visibly contribute to the social good. Socially
responsible companies do not limit themselves to using resources to engage in
activities that increase only their profits. They use CSR to integrate economic,
environmental and social objectives with the company's operations and growth."
THE OBJECTIVITY OF THE POLICY
This Policy shall be read in line with Section 135 of the Companies Act 2013,
Companies (Corporate Social Responsibility Policy) Rules, 2014 and such other
rules, regulations, circulars, and notifications as may be applicable and as amended
from time to time and will, inter-alia, provide for the following:
- Establishing a guideline for compliance with the provisions of Regulations to
dedicate a percentage of Company‘s profits for social projects.
- Ensuring the implementation of CSR initiatives in letter and spirit through
appropriate procedures and reporting
- Creating opportunities for employees to participate in socially responsible
CSR POLICY: GOVERNANCE STRUCTURE AND APPROACH
The Board of Directors
In line with the provisions of Section 135 of the Act, the Board of Directors of the
Company will be responsible for the following:
- To approve the CSR policy
- Make sure the company spends, in every financial year, at least 2% of its average
net profit during the three preceding financial years, in pursuance of this policy
- Approve the CSR action plan and budget in accordance with Schedule VII of the
Companies Act, 2013
- Make disclosures in the Board report as per clause (o) of sub-section (3) of section
134 including particulars specified in Annexure to the CSR rules.
Board Roles and powers:
- Formulate CSR policy and seek approval from the Board of Directors of the
company. Review the policy on a yearly basis.
- Formulate and share the CSR action plan with budget for the year with the Board
of Directors and seek approval. Implement the activities either through the
Implementation Partner or directly through its own team.
- Spend the allocated amount on CSR activities once approved by the Board of
Directors and create a transparent monitoring mechanism of CSR initiatives.
- Submit periodic reports to the Board for the activities undertaken.
- Towards our communities, we will involve communities surrounding our
operations to bring about a positive change in their lives through holistic,
sustainable and integrated development.
- Towards our Customers, we will build gainful partnerships with the customers
to understand their needs and provide right product and service solutions. We will
adopt and actively encourage the best and fair business practices and shall
endeavour to build solid bonds with them.
- Towards our Business Partners, we will support our suppliers to cultivate ethical
and fair business practices and give preference over other to those who
- As a Corporate Citizen We reaffirm our commitment to conduct our business
with environmental accountability. We will endeavour to adopt environment-
friendly technologies and energy efficiency in our operations while continuously
monitoring and reducing emissions.
The Policy recognizes that corporate social responsibility is not merely compliance;
it is a commitment to support initiatives that measurably improve the lives of
underprivileged and the board of directors of the company plans to undertake the
upliftment of the society and cultivate the ethical activity by taking following
initiatives and activities which may be included in their Corporate Social
(i) Eradicating hunger, poverty and malnutrition, “promoting health care including
preventinve health care” and sanitation 4[including contribution to the Swach
Bharat Kosh set-up by the Central Government for the promotion of sanitation] and
making available safe drinking water.
(ii) Promoting education, including special education and employment enhancing
vocation skills especially among children, women, elderly and the differently abled
and livelihood enhancement projects.
(iii) 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.
(iv) 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 4[including contribution to the Clean
Ganga Fund set-up by the Central Government for rejuvenation of river Ganga].
(v) 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.
(vi) Measures for the benefit of armed forces veterans, war widows and their
dependents, 9[ Central Armed Police Forces (CAPF) and Central Para Military Forces
(CPMF) veterans, and their dependents including widows].
(vii) Training to promote rural sports, nationally recognised sports, paralympic
sports and olympic sports.
(viii) Contribution to the prime minister’s national relief fund 8[or Prime Minister’s
Citizen Assistance and Relief in Emergency Situations Fund (PM CARES 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
(ix) (a) Contribution to incubators or research and development projects in the field
of science, technology, engineering and medicine, funded by the Central
Government or State Government or Public Sector Undertaking or any agency of
the Central Government or State Government; and
(ix) (b) Contributions to public funded Universities; Indian Institute of Technology
(IITs); National Laboratories and autonomous bodies established under
Department of Atomic Energy (DAE); Department of Biotechnology (DBT);
Department of Science and Technology (DST); Department of Pharmaceuticals;
Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy
(AYUSH); Ministry of Electronics and Information Technology and other bodies,
namely Defense Research and Development Organisation (DRDO); Indian Council
of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and
Council of Scientific and Industrial Research (CSIR), engaged in conducting research
in science, technology, engineering and medicine aimed at promoting Sustainable
Development Goals (SDGs).
(x) Rural development projects
(xi) Slum area development.
Explanation.- For the purposes of this item, the term `slum area' shall mean any
area declared as such by the Central Government or any State Government or any
other competent authority under any law for the time being in force.
(xii) Disaster management, including relief, rehabilitation and reconstruction