Social Responsibility as per the companies act,2013

1. Presented by
S.Nitheesh kumar
M21MB007
Corporate Social
Responsibility –
Evolution
KAKATIYA INSTITUTE OF TECHNOLOGY AND SCIENCE
WARANGAL
DEPARTMENT OF MANAGEMENT
COURSE
RESEARCH
PAPER - II

2. Introduction &
Defination
01
Table of contents
Indian Scenario
02
Legal Framework of
CSR
03
Conclusion
04

3. Introduction
The concept of Corporate Social Responsibility (CSR) is not new in India. It emerged
from the 'Vedic period' when history was not recorded in India. In that period. Kings
had an obligation towards society and merchants displayed their own business
responsibility by building places of worship, education, inns and wells. Corporate
Social Responsibility has been defined and conceptualized in several ways during
the past four centuries following a process of analysis, debate and scholarly
confrontation around the theme. The concept 'Corporate Social Responsibility'
(CSR) refers to 'soft', voluntary self regulation adopted by firms to improve aspects
of the company, this can relate to labour, environmental and human rights issues.

4. Corporate Social Responsibility is about companies
having responsibilities and taking actions beyond their
legal obligations and economic/business aims. These
wider responsibilities cover a range of areas but are
frequently summed up as social and environmental -
where social means society broadly defined, rather
than simply social policy issues. This can be summed
up as the triple bottom line approach: i.e. economic,
social and environmental.
Definition

5. “Corporate decision making
and policy making is linked to
ethical values, compliance
with legal requirements and
respect for people,
communities and the
environment around the
world.”
—A.P.J. Abdul Kalam

6. Indian Scenario
The First Phase
(1850-1910)
The Second Phase
(During Independence
Movement)
The Third Phase
(1960-1980)
The Fourth Phase
(1980-2015)

7. The First Phase
In the first phase charity and philanthropy were the main drivers of CSR. Culture,
religion, family values and tradition and industrialization had an influential effect
on CSR. In the preindustrialization period, which lasted till 1850, wealthy
merchants shared a part of their wealth with the wider society in getting over
phases of famine and epidemics by providing food from their godowns and money
and thus securing an integral position in the society.
The Second Phase
In the second phase, during the independence movement, there was increased
stress on Indian Industrialists to demonstrate their dedication towards the progress
of the society. This was when 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.

8. The Third Phase
The third phase of CSR (1960–80) had its relation to the element of "mixed
economy", emergence of Public Sector Undertakings (PSUs) and laws relating
labour and environmental standards. The public sector was seen as the prime mover
of development. Because of the stringent legal rules and regulations surrounding the
activities of the private sector, the period was described as an "era of command and
control". The policy of industrial licensing, high taxes and restrictions on the private
sector led to corporate malpractices. This led to enactment of legislation regarding
corporate governance, labour and environmental issues.
The Fourth Phase
In the fourth phase (1980 - 2015) Indian companies started abandoning their
traditional engagement with CSR and integrated it into a sustainable business
strategy. In the 1990s the first initiation towards globalization and economic
liberalization were undertaken. Controls and licensing system were partly done
away with which gave a boost to the economy the signs of which are very evident
today. Increased growth momentum of the economy helped Indian companies grow
rapidly and this made them more willing and able to contribute towards social
cause.

9. Legal Framework of CSR
The first formal attempt by the Government of India to put the CSR issue on the
table was in the issuance of Corporate Social Responsibility Voluntary
Guidelines in 2009 by the Ministry of Corporate Affairs (MCA, 2009). Prior to
this, the importance of CSR was discussed in the context of corporate
governance reforms, such as in the Report of the Task Force on Corporate
Excellence by the Ministry of Corporate Affairs (MCA, 2000). It is in the
Voluntary Guidelines of 2009 that the core elements of a CSR policy was spelt
out that included care for all stakeholders, ethical functioning, respect for
workers‘ rights and welfare, respect for human rights, respect for the
environment and activities to promote social and inclusive development.

10. Conclusion
CSR policy would function as a built-in, self-regulating
mechanism whereby business would monitor and ensure its
support to law, ethical standards, and international norms.
Consequently, business should embrace responsibility for the
impact of its activities on the environment, consumers, employees,
communities, stakeholders and all other members of the public
sphere. CSR-focused businesses should proactively promote the
public interest by encouraging community growth and
development, and voluntarily eliminating practices that harm the
public, regardless of legality.

11. Important shloka (quote) from the Rigveda
“A businessman should
benefit from business like
a honey-bee which
suckles honey from the
flower without affecting its
charm and beauty”

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Thanks!