India has had a long history of corporate social responsibility (CSR). In the 1950s, primary focus was on businesses' responsibilities to society and doing good deeds for society. In the 1960s, key events, people and ideas were instrumental in characterizing the social changes ushered in during this decade. From the 1970s, business managers began applying traditional management functions when dealing with CSR issues. As business and social interest came closer in the 1980s and 1990s, firms became more responsive to their stakeholders and CSR became almost universally approved. CSR was coupled with strategy literature and in the first decade of this century, CSR has definitively become an important strategic issue for most and large corporate and multinationals.
The new Companies Act 2013 provides an opportunity for companies to demonstrate new standards of corporate citizenship, within which Corporate Social Responsibility (CSR) can become a vehicle for investment in social and human development of an inclusive society where business can find a supportive eco-system for its long-term growth in India.
The new Companies Act 2013 mandates:
That a Company has to undertake CSR if
Its annual turnover is Rs10 00 crores or more, or
Its net worth is Rs 500 crores or more, or
It earns profits of Rs 5 crores or more during a financial year
That such a Company sets up a Board CSR Committee
with a Chair and at least one independent director as member
which prepares a CSR Policy for the Company
recommends use of mandatory 2% of net profits for CSR projects
The projects supported by CSR funds
Should be focused congruent themes mentioned in Schedule VII of the Act
Should not be meant for employees of the Company or their families
Should be implemented by a partner agency which has atleast 3 years past experience
Should be monitored regularly
The Company will report annually
Projects and expenditures supported
Results and impacts achieved
Responsibility statement of the Board
PRIA and Venn Consulting Group (VCG) (www.venncg.com), a boutique consulting company in the area of strategy and finance, have teamed up to provide Indian companies professional support to make their CSR programmes responsive, effective and sustainable in:
Formulation of CSR policy and guidelines for Board CSR Committee
Development of projects in identified thematic and geographic priorities
Identification of partners for implementation of projects with due diligence
Preparation of project plans
Development of monitoring and reporting systems and procedures
Building capacity in the company and partners for effective delivery of CSR projects
Documentation of best practices and dissemination of impacts
The unique association of PRIA and VCG provides a platform to identify and implement CSR programs which fit the requirements of companies to move from short-term initiatives to long term sustainable CSR models and also provides valuable inputs in the area of regulation and compliance. VCG has worked with MNC and domestic companies in development of strategy, risk analysis, compliance and regulation. In addition, VCG has had the unique opportunity to be part of development of CSR initiatives for corporates using development organizations to build programs which met the global objectives of the companies. The initiatives undertaken were development of soft skills through a second chance school, educating young adults on harmful effects of alcohol consumption and supporting social entrepreneurship.