Corporate Social Responsibility (CSR) has acquired new dimensions in the recent years. Today, companies are proactively taking up this good hearted investment and giving a social value to all their business endeavors.
In India, though corporate have a strong will to dedicate their resources for a social cause, they find it difficult to reach the right people considering the demography and diverse social problems of the country.
New Vision is one such organization that works towards the needs of development while helping corporate in investing in social initiatives. With multiple modes of partnerships like Payroll Giving, Cause Related Marketing (CRM), Child Sponsorship, Project support etc and helps corporate in strengthening their CSR programmes by letting them adopt, initiate or partner development projects.
The basis of partnering with NEW VISION is that our social ventures are sustainable, scalable, accountable, transparent and effective with credibility. We manage and monitor our projects stringently to ensure efficient utilization of funds. Projects are also regularly assessed to measure progress against plans. Meetings with project staff, parents, children and community groups help us gauge progress. We focus on mobilisation and empowerment of communities. Our approach gets to the root cause of these developmental issues that keeps beneficiaries away from their rights - and enables change that can sustain itself.
India, however, is setting itself apart from other Asian countries by codifying corporate social responsibility (CSR) spending for targeted companies. Clause 135 of the Companies Bill, 2012 (the “CSR Clause”) requires targeted companies to spend a prescribed formula-based amount on CSR for the applicable fiscal year, report on these activities, or explain why they failed to spend, in the annual board report. Specifically, the CSR Clause applies to any company, during any fiscal year, with (1) a net worth of rupees 500 crore or more (2) a turnover of rupees 1,000 crore or more; or (3) a net profit of rupees 5 crore or more.
The company must spend at least two percent of its average net profits made in the preceding three financial years (the “Two Percent Formula”) on government approved categories of CSR. The CSR Clause states that companies must give preference to local areas where the company operates. Further, CSR activities developed and implemented during the year by the company must be detailed in its board report. On the other hand, if the company is unable to spend the required two percent on CSR, it must explain why in the board report.
The term “CSR” itself is not defined in the Companies Bill. However, Schedule VII of the Companies Bill, quoted below, requires the CSR policy created by the CSR Committee to involve at least one of the following focus areas:
1. Eradicating extreme hunger and poverty
2. Promotion of education
3. Promoting gender equality and empowering women
4. Reducing child mortality and improving maternal health
5. Combating HIV, AIDS, malaria and other diseases
6. Ensuring environmental sustainability
7. Employment-enhancing vocational skills
8. Social business projects
9. Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government or the state governments for socioeconomic development, and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women; and
10. Such other matters as may be prescribed
