*

19PT003 Ashish Vig

19PT017 Vivek Kr. Upadhyay
19PT014 Shankha Chaudhuri
19PT011Rakesh Pangtey
19PT001 Aanchal Sharma
 *WHAT IS CSR?
CSR is about meeting the growing
social and environmental
expectations for improving
business performance and
sustaining it.
In simple terms, CSR describes the
company’s efforts to improve the
society in some way.

“Every Company has a special continuing responsibility

towards the people of the area in which it is located and
in which its employees and their families live.”

~ JRD Tata
 *WHY CSR?
 Improved Ecologically Sustainable Financial Performance

 Market Differentiation

 Enhanced Brand Image & Customer Loyalty

 Increased Ability to Attract and Retain Employees

 Reduced Regulatory Oversight

 Access to Capital

 Harmonious Relationship between Different stakeholder

 Improved Opportunities For New Products/Services

 Help to manage risk

*HISTORICAL PERSPECTIVE OF CSR
LEGISLATION
*CURRENT SCENARIO
According to a survey, CSR
spending in India increased by 47
per cent in 2017-18 as compared
to 2014-15.
“It is a matter of conscience versus action,
heart versus mind and numbers versus results.”
~Harsh Goenka
Chairman, RPG Enterprises
 *CHALLENGES
Triple taxation
Kills competitive spirit
Multiplier effect of CSR
Company as a legal citizen
Deviation from the basic principles of CSR
Shifting of Govt. responsibilities to companies
Corporate houses are not charities
Clustering of funds
Issue of geographic equality: Preferred Geographies
Law does not even discuss, let alone define, an enforcement mechanism or penalties for non-
compliance
 *WAYS TO MAKE IT MORE EFFECTIVE
Government as a major stake holder.

The companies need to spend time drafting the CSR policy plan annually, making sure that,
they work within the ambit of the law.

Social Auditing (Government intervention in monitoring and evaluation to ensure CSR funds
are directed in proper channels).

Well defined penalties for non-compliance.

Government to ensure that CSR spending is diversified into different sectors and
geographies.
*Effective CSR needs three actors
 *CONCLUSION
Given the current situation in India, mandatory CSR seems to
be the way forward.

However, without a coercive enforcement mechanism on part

of all stakeholders, it is unlikely that the law will result in
widespread compliance and real effectiveness.