The World Business Council for Sustainable Development

defines the CSR as a “business' commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large to improve their quality of life”. Under this point of view, the CSR rests on the fundamental pillars of both the economic growth and the quality of life as an engine for “sustainable” development.

Models of CSR

1. Economic: to satisfy economic needs of society.2. Legal: a company is bound to obey the law of the

land.3. Ethical: norms which the society expects the

business to observe though they may not be mandated by law.

4. Philanthrophic : voluntary contribution of the business to the social cause of community development.

Corporate /Business Groups have been traditionally engaging in C S R.

Greater responsibility to set out clear frame work to ensure strict compliance.

As per Section 135 (Section) of the Companies Bill, the following companies will have to abide by this

requirement:

Companies having a net worth of rupees 500 crore or more.

Companies having a turnover of rupees 1000 crore or more.

Companies having a net profit of rupees 5 crore or more.

How to fulfill obligations?

Each qualifying company to form a CSR committee, consisting of 3 & more directors.

Which will formulate CSR policy & effectively monitor the CSR activities.

Unspent amount of the specified CSR spent to the rolled over to the accordingly financial year.

Who is responsible?

Board of Directors are responsible to ensure that company spends the mandate CSR disclose.

Mandate of the CSR committee:

To formulate and recommend a CSR policy to the board.

To recommend the amount of expenditure to be increased on CSR activities.

To monitor the CSR policy of the company from time to time.

How? The company can set-up a not-for-profit organisation in the form of trust,

society or non-profit company to facilitate implementations of its CSR activity.

The company me also implement its CSR program through not-for-profit organizations that are not set up by the company itself.

Such origanizations have an established track record of at least 3 years in carrying on activities in related areas.

Companies may also collaborate or pool resources to undertake CSR activity.

Only CSR activities undertaken in India would be considered as eligible CSR activities.

CSR programs may also focus on integrating business models with social and environmental priorities and processes in order to create shared

value.

CSR activities shall not include activities exclusively for the benefit of employees and their family members.

What constitutes eligible CSR spend Activities which may be considered as eligible CSR spend are provided in

Schedule VII of the Act. The specified activities are as under:

Education

Environment sustainability

Empowering women and promoting gender equality

What constitutes eligible CSR spend Activities which may be considered as eligible CSR spend are provided in

Schedule VII of the Act. The specified activities are as under:

Poverty reduction and eradication hunger

Social business projects

Reducing child mortality & improving maternal health

What constitutes eligible CSR spend Activities which may be considered as eligible CSR spend are provided in

Schedule VII of the Act. The specified activities are as under:

Improvement of health

Imparting of vocational skills

What constitutes eligible CSR spend Activities which may be considered as eligible CSR spend

are provided in Schedule VII of the Act. The specified activities are as under:

Contribution towards Central & State Government funds for socio-economic development and relief.