With effect from April 1, 2014, every company, private limited or public limited, which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility activities. The CSR activities should not be undertaken in the normal course of business and must be with respect to any of the activities mentioned in Schedule VII of the 2013 Act. Contribution to any political party is not considered to be a CSR activity and only activities in India would be considered for computing CSR expenditure.
The activities that can be undertaken by a company to fulfil its CSR obligations include eradicating hunger, poverty and malnutrition, promoting preventive healthcare, promoting education and promoting gender equality, setting up homes for women, orphans and the senior citizens, measures for reducing inequalities faced by socially and economically backward groups, ensuring environmental sustainability and ecological balance, animal welfare, protection of national heritage and art and culture, measures for the benefit of armed forces veterans, war widows and their dependents, training to promote rural, nationally recognised, Paralympic or Olympic sports, contribution to the prime minister’s national relief fund or any other fund set up by the Central Government for socio economic development and relief and welfare of SC, ST, OBCs, minorities and women, contributions or funds provided to technology incubators located within academic institutions approved by the Central Government and rural development projects.
CSEI observation is that while there exists opportunities for the companies to provide equitable opportunities to excluded and marginalised communities through their CSR programs there is little interest to execute it. Very few companies have initiated any kind of engagements under CSR and many have even faltered to put in the mandated basic structures in place for this obligation. Quite a few companies have been Planning their CSR work in closed board rooms and have not engaged with communities to find out what could be their priorities in terms of immediate requirements & needs for development. There is no process to engage and gauge needs on the ground for the community upliftment. The companies have not been able to show real outcome for the community welfare-ism their positive engagements in the 4Es i.e. entrepreneur, employment, employability, education of affirmative action.
To fill up the above gaps in the CSR processes CSEI would like to invite the CLO community Partners through the National Equity Working Forum to engage in the following processes:
Community Youth Need Assessment,
Community Need Assessment Processes
The above are done with scientifically designed Equity mapping Tools by CSEI.
To build an understanding on the above we invite you on 5th May 2015 at National Foundation for India, India Habitat Centre, Core 4A, Upper Ground Floor, Lodi Road, New Delhi 110003, INDIA for an interactive consultation