The Parliament approved new Companies Bill, which mandates that
companies of a certain size spend 2% of their three - year average annual profit
towards corporate social responsibility (CSR), is a landmark one as it makes India
among the first nations to have social welfare spending as part of company statute
Around 8,000 companies would fall under the Bill's ambit and this mandate would
translate into an estimated CSR spending of Rs. 12,000 - 15,000 crore annually.
In order to maximise the impact of their CSR, Indian corporate houses need to look
beyond the traditional lens of "charity" and develop succinct CSR strategies with
potential for large - scale social and economic impact. Private philanthropies set
up by India's business leaders can be looked at as models for CSR. The first step
towards developing a CSR strategy is to define a maximum of 2 - 3 social issues.
Making the most of corporate social responsibility: Smart partnering can provide
a practical way forward.
CSR is a creative opportunity to fundamentally strengthen business
while contributing to society at the same time. The big challenge for companies
and NGOs is how to develop an approach that can truly deliver for both.
Smart partnering is emerging as a way to create value for both
the business and society simultaneously. Smart partnering focuses on key areas of
impact between business and society and develops creative solutions that draw on
the complementary capabilities of both to address major challenges that affect each
Read the handbook launched by PricewaterhouseCoopers for an understanding of CSR
The handbook builds a common understanding of the concept of CSR, based on global
practices, Indian tradition, and the intent and provisions of the Companies Act,
2013. It highlights important aspects of Clause 135 of the Companies Act, 2013 and
its implications on companies. A major part of the handbook focuses on the 'what'
and 'how' of strategising, planning, executing and monitoring these CSR activities.
You can download a copy of the handbook from their website:
For other articles on Corporate Social Responsibility you
can also visit www.samhita.org
The World Giving Index, which is the most comprehensive report on global charitable
behaviour, includes data from 135 countries across the globe that was collected
throughout the calendar year of 2012. The aim of the World Giving Index is to provide
insight into the scope and nature of giving around the world.
here to download the report.