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 A PROJECT REPORT
ON
A Comprehensive Study of Corporate Social Responsibility (CSR)

Session- 2018-2020

SUBMITTED BY; SUBMITTED TO;

Jaspreet Singh DR; Harpreet Singh

Roll no: 18421158

Section ; A

PUNJABI UNIVERSTY PATIALA

Introduction:
Corporate social responsibility is a hard-edged business decision. Not because it is a nice
thing to do or because people are forcing us to do it... because it is good for our business"
Niall Fitzerald, Former CEO, Unilever

As the corporations exist in a symbiotic relation with their environments 1 (the term environment
here refers to all components of the external environment and not to ecological environment
alone) where their exchange with the larger environment determines to a larger extent how well
they do in their profit symbiotic endeavors.

The concept of Corporate Social Responsibility (CSR) makes it possible to establish a symbiotic
relation between the corporation and its environment as the environment meaning defined above.
When we approaches to define it we found that in present day in 21st century it is no longer just
fashionable but a business requirement to be socially responsible.

Corporate Social Responsibility can be simply and broadly defined as the ethical role of
corporation in the society. The main aim of corporate social responsibility is to increase long
term profit and shareholder trust through positive public relation and high ethical standards to
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reduce business and legal risk by taking responsibility of corporate actions. It is not enough for
companies to generate mere profits and meet merely the letter of law in their business operations.
Corporate social responsibility strategies encourage the company to make positive impact on
environment and stakeholders that is all the parties who have a stake in the performance and
output of the corporation. Stakeholders include the company's employees, unions, investors,
suppliers, customers, local and national governments, and communities that may be affected by
corporate activities such as construction, manufacturing, and pollution. 3 For some companies,
CSR means manufacturing their products in a way that doesn't harm the environment and
protects the consumer from potentially hazardous materials. Corporate Social Responsibility
(CSR)can be defined as a Company’s sense of responsibility towards the community and
environment (both ecological and social) in which it operates.4 Companies can fulfill this
responsibility through waste and pollution reduction processes, by contributing educational and
social programs, by being environmentally friendly and by undertaking activities of similar
nature. CSR is not charity or mere donations. CSR is a way of conducting business, by which
corporate entities visibly contribute to the social good. Socially responsible companies do not
limit themselves to using resources to engage in activities that increase only their profits. They
use CSR to integrate economic, environmental and social objectives with the company’s
operations and growth. CSR is said to increase reputation of a company’s brand among its
customers and society.

Some definition from Global institution

OECD- Corporate responsibility involves the search for an effective ‘fit’ between businesses and
the societies in which they operate.

UN- A management concept whereby companies integrate social and environmental concerns in
their business operations and interactions with their stakeholders.

EU - The responsibility of enterprises for their impacts on society.

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Thus in lay man sense we can say that, Corporate Social Responsibility (CSR) is a well emerging
concept that acknowledges us about the responsibility of the corporations operating within
society to contribute towards social, economicand environmental development.It will helps in
maintaining a balance in between Corporation and Society and at the same times it createsa
positive impact on society at large5.

History and evolution of Corporate Social Responsibility:-

In the time of 1920s the American President said that " the chief business of the American people
is business." It was a popular observation in a time of economic prosperity, when issues such as
energy security and climate change were practically nonexistent.6

Almost a century later, things are very different. Now the private enterprise also called upon
exercise social responsibility, especially when it comes to environment. This trend reflects the
view that companies ought to do more than simply meet the letter of law and bare minimum
ethical business behavior. Now a days we know it as the "Corporate Social Responsibility." After
that period even the president Coolidge, like many American presidents before and since, kept
government out of affairs of business as much as possible. But in the starting of 1960s and
1970s, the environmental impact of an ever expanding economy was generating more or more
protests from citizens. The result was a wave of legislation designed to reduce the pollution
produced by business activity. Those laws had positive effects and are now vital parts of
American regulatory framework. But despite these regulation, controlling pollution continues to
be a challenge. And now there are even larger problems on the horizon. Even though business
today are more efficient and use fewer resources to make goods but still many ecosystems
continue to suffer. Starting a few years ago, many citizens in the U.S and around the world began
call for more action from private enterprise on these social issues-beyond compliance with
regulations and traditional charity related work. The result was a new movement known as
corporate social responsibility, or CSR7.

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Governing Provisionsregarding Corporate Social Responsibility:-

Section 135 of the Companies Act 2013, incorporates the provisions regarding the said concept
and Schedule VII provides the appendix that ensures the areas where the CSR fund will be use.

Section 135:- Corporate Social Responsibility:-

(1) Every company having net worth of rupees fivehundred crore or more, or turnover of rupees
one thousandcrore or more or a net profit of rupees five crore or moreduring any financial year
shall constitute a Corporate Social ResponsibilityCommittee of the Board consisting of three or
moredirectors, out of which at least one director shall be an independentdirector.

(2) The Board’s report under sub-section (3) of section 134 shall disclose the composition of the
Corporate Social Responsibility Committee.
(3) The Corporate Social Responsibility Committee shall,—
(a) formulate and recommend to the Board, a CorporateSocial Responsibility Policy which shall
indicate the activitiesto be undertaken by the company as specified in
Schedule VII;
(b) recommend the amount of expenditure to be incurred onthe activities referred to in clause (a)
(c) monitor the Corporate Social Responsibility Policy of thecompany from time to time.
(4) The Board of every company referred to in sub-section (1)shall,—
(a) after taking into account the recommendations made bythe Corporate Social Responsibility
Committee, approvethe Corporate Social Responsibility Policy for the companyand disclose
contents of such Policy in its report and alsoplace it on the company’s website, if any, in such
manner asmay be prescribed; and
(b) ensure that the activities as are included in CorporateSocial Responsibility Policy of the
company are undertakenby the company.
(5) The Board of every company referred to in sub-section (1),shall ensure that the company
spends, in every financial year, at least two per cent of the average net profits of the company
madeduring the three immediately preceding financial years, in pursuanceof its Corporate Social
Responsibility Policy:Provided that the company shall give preference to the local areaand areas
around it where it operates, for spending the amountearmarked for Corporate Social
Responsibility activities:Provided furtherthat if the company fails to spend such amount,
 the Board shall, in its report made under clause (o) of sub-section(3) of section 134, specify the
reasons for not spending the amount.8

Applicability of CSR Provisions: 

On every Company including its holding or subsidiary having:

 Net worth of Rs. 500 Crore or more, or

 Turnover of Rs. 1000 crore or more, or
 Net Profit of Rs. 5 crore or more
 during the immediately preceding financial year
A foreign company having its branch office or project office in India, which fulfills the criteria
specified above.However, if a company ceases to meet the above criteria for 3 consecutive
financial years then it is not required to comply with CSR Provisions till such time it meets the
specified criteria.

How Corporate Social Responsibility operated in Company

Every Company on which CSR is applicable is required to constitute a CSR Committee of the
Board:

 Consisting of 3 or more directors, out of which at least one director shall be an

independent director. However, if a company is not required to appoint an independent director,
then it shall have in 2 or more directors in the Committee.
 Consisting of 2 directors in case of a private company having only two directors on its
Board
 Consisting of at least 2 persons in case of a foreign Company of which one person shall
be its authorised person resident in India and another nominated by the foreign company

Responsibility of Board of Directors (BOD):  

The BOD of every company on which CSR is applicable shall:

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 after considering the recommendations made by the CSR Committee, approve the CSR
Policy for the Company and disclose contents of such Policy in Board report.
 ensure that the activities as are included in CSR Policy of the company are undertaken by
the Company
 shall disclose the composition of the CSR Committee in Board Report
 ensure that the company spends, in every financial year, at least 2% of the average net
profits of the company made during the 3 immediately preceding financial years, in pursuance of
its CSR Policy. The CSR projects/programs/activities undertaken in India only shall amount to
CSR Expenditure.9
CSR Policy 

The CSR Policy of the company shall, inter-alia, include the following namely :-

 A list of CSR projects or programs which a company plans to undertake specifying

modalities of execution of such project or programs and implementation schedules for the same
 Monitoring process of such projects or programs
 A clause specifying that the surplus arising out of the CSR projects or programs or
activities shall not form part of the business profit of the company.

CSR Activities 

 The CSR activities shall be undertaken by the company, as per its CSR Policy, excluding
activities undertaken in pursuance of its normal course of business.
 The BOD may decide to undertake its CSR activities approved by the CSR Committee,
through
 a section 8 company or a registered trust or a registered society, established by the
company, either singly or alongwith any other company, or
 a section 8 company or a registered trust or a registered society, established by the
Central Government or State Government or any entity established under an Act of Parliament or
a State legislature

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 a section 8 company or a registered trust or a registered society, other than those specified
in clauses (a) and (b) above, having an established track record of 3 years in undertaking similar
programs or projects;
 collaboration with other companies,for undertaking projects or programs or CSR
activities in such a manner that the CSR Committees of respective companies are in a position to
report separately on such projects or programs.
 The CSR projects or programs or activities not to be considered as CSR Activities:
 Expenses for the benefit of only the employees of the company and their families
 Contribution of any amount directly or indirectly to any political party.

Display of CSR Activities on its Website

The BOD shall disclose contents of CSR policy in its report and the same shall be displayed on
the company’s website, if any.

Other Important Points: 

 The balance sheet of a foreign company to be filed under section 381(1)(b) of the Act
shall contain an Annexure regarding report on CSR.
 The Board of Directors shall ensure that activities included by a company in its CSR
Policy are related to the areas or subjects specified in Schedule VII (given below) of the Act.
Schedule 7

Activities which may be included by companies in their Corporate Social Responsibility Policies
relating to:

 Eradicating hunger, poverty and malnutrition,promoting health care including preventive

health care and sanitation including contribution to the Swacch Bharat Kosh set-up by the
Central Government for the promotion of sanitation and making available safe drinking water.
 Promoting education, including special education and employment enhancing vocation
skills especially among children, women, elderly and the differently abled and livelihood
enhancement projects.
 Promoting proper gender equality, empowering women, setting up homes and hostels for
women and orphans; setting up old age homes, day care centers and such other facilities for
 senior citizens and measures for reducing inequalities faced by socially and economically
backward groups.
 Ensuring environmental sustainability, ecological balance protection of flora and fauna,
animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil air
and water including contribution to clean Ganga fund set-up by the Central Government for
rejuvenation of river Ganga.
 Protection of national heritage, art and culture including restoration of buildings and sites
of historical importance and works of art setting up public libraries, promotion and development
of traditional art and handicrafts.
 measures for profit of armed forces veterans war windows and their dependents.
 Training to promote rural sports nationally recognized sports Paralympic sports and
Olympic sports.
 Contribution to the prime minister's national relief funds of any other fund set up by the
central government for socio economic development and relief and welfare of the schedule caste
and tribes and other backward classes minorities and women.
 Contributions or funds provided to technology incubators located within academic
institutions which are approved by the central government.
 Rural development projects.
 Slum area development. 10

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 Model of CSR Implementation

CSR implementation in INDIA as mandated by the law and how it affects the national
developmental agenda as shown below:-

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Oil And Natural Gas Corporation Ltd (ONGC)

Sector : Oil Drill Allied

International Origin : No

Company Type: PSU, Exchange Listed

ONGC, Indian multinational oil and gas company headquartered in Dehradun, India is a Public

Sector Undertaking (PSU) of the Government of India, under the administrative control of
the Ministry of Petroleum and Natural Gas. It is India's largest oil and gas exploration and
production company. It produces around 69% of India's crude oil (equivalent to around 30% of
the country's total demand) and around 62% of its natural gas. ONGC was founded on 14 August
1956 by Government of India, which currently holds a 68.94% equity stake. It is involved in
exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and owns and
operates over 11,000 kilometers of pipelines in the country. Its international subsidiary ONGC
Videsh currently has projects in 15 countries. ONGC has discovered 6 of the 7 commercially-
producing Indian Basins, in the last 50 years, adding over 7.1 billion tonnes of In-place Oil &
Gas volume of hydrocarbons in Indian basins.13

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CSR Financial Details (INR Cr.)

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Working Areas

Eradication Hunger, Poverty, Malnutrition

Preventive Healthcare, Water and Sanitation

Education, Employability and Livelihoods Enhancement

Gender, Equality and Women Empowerment, Senior Citizens Care

Environmental Sustainability

Heritage conservation, Promoting Art, Craft and Culture, Public Libraries

Armed Forces Veteran Welfare

Promoting national and rural sports, Paralympic, Olympic sports

Rural Development

Contribution to Central Government Fund

Slum Area Development, Housing for poor

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CSR projects of ONGC in detail:-

 Swacch Bharat - A CSR initiative by ONGC

The Swacch Bharat Campaign is implemented across ONGC by conducting regular cleanliness
drives in office premises, installations and in and around operational areas of ONGC. The
historic JantarMantar adopted by ONGC witness's regular cleanliness drive on weekly basis to
retain its magnificent glory. Under Swachh Smarak, ONGC would incorporate up gradation,
beautification, cleanliness and maintenance of monuments including construction,
restoration/refurbishment, illumination, landscaping etc based on a Comprehensive Conservation
and Development Plan as developed by ASI. For SwachhVidhyalaya campaign, the project of
providing sanitation facilities to 8500 schools across India is through NGOs and
SulabhSauchalaya. ONGC aims to create 50,000 individuals household latrines per year at
various operational areas by financially supporting the state government sanitation missions
there. 500 events per annum such as Quiz competition, drawing competitions, poster
competition, etc. are also to be conducted to implement the campaigns on real time basis and to
bring greater awareness among the employees and school children.
  Project Utkarsh- Livelihood Project in Sibsagar   (Ongoing)

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Project Sector: Eradication Hunger, Poverty, Malnutrition, Education, Employability and

Livelihoods Enhancement, Gender, Equality and Women Empowerment, Senior Citizens Care.

Project Description:-

This project seeks to expand livelihood opportunities for 400 households in one year through
training of women in skills like tailoring, soft toy making etc. with linkages for income
generation as well as training the elderly in vocations like goatery, piggery, mushroom
cultivation etc, while establishing adequate forward and backward linkages.

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Some recent reformation of Society by the help of Corporate Social
Responsibility.

1. In Cyclone Fanny state Orissa

The Union ministry of corporate affairs has allowed contributions made by corporates to the
Odisha State Disaster Management Authority (OSDMA) for Cyclone Fani relief and restoration
works to be covered under corporate social responsibility (CSR) activity.

It will set up a benchmark in this corporate world that whenever we need to restore the society
we have to keep in mind this CSR, which includes relief, rehabilitation and reconstruction works
as part of disaster management in terms of liberal interpretation.

This new concept would push corporate organizations to release funds and other support to
victims of the cyclone, which has affected 14 districts in Odisha. Corporate bodies can also help
in restoring public infrastructure like power, telephone, water supply and public utility buildings
that have been damaged by the calamity.Thuswe can say that this hand of Corporate helps in
developing a new dimension towards development of organization and as well as society16.

2. In Kerala Flood

The state Kerala is the victim of impenetrable rains and unprecedented floods during this
monsoon season have taken more than 400 lives. Northward of 3 lakh people are still sheltered in
relief centres. In this regardscompanies are willing to provide medical aid and can account those
as expenses towards promoting health care, including preventive health care. Food supply can be
covered under eradicating hunger, poverty and malnutrition and supply of clean water can be
covered under sanitation and making available safe drinking water.Companies directly donating
to the chief minister’s relief fund are already getting covered under the CSR provision of the
Companies Act17.

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In the light of above example, I would like to quote one new notification of government in this
row that Indian companies will now be able to count all expenditure done towards disaster relief
activities as part of their required annual Corporate Social Responsibility (CSR) spend.

 In 7th June 2019 the corporate affairs ministry has included “disaster management consisting
relief, rehabilitation and reconstruction activities” in a list of activities that companies are
permitted to count towards their CSR spend through an official notification. This steps of
government comes after reformation of societies in Kerala by the help of CSR which was badly
destroyed by Flood in the last year 18. Through this notification our government also listed some
activities in this row like as hunger and poverty alleviation activities, promotion of education and
vocational training, and promotion of gender equality. Thus we can say that concept of CSR
seems to be a dynamic in nature and in later point of time helps in development of the Nation.

Importance of Corporate Social Responsibility

It is extremely important that an organization or a company operates in a way that demonstrate

social responsibility. Although it is not a legal requirement, it is seen as a good practice for
company to take into account social and environment issue. Social responsibility and ethical
practices are vital to a company success. The 2015 Cone Communications Global CSR study
found that a staggering 91% of global consumers expect companies to do more than make a
profit, but also operate responsibly to address social and environmental issues,84% say they seek
out responsible products whenever possible,90% would boycott a company if they learned of
irresponsible or unreal business practices . The said data shows that, consumers are increasingly
aware of about the importance of social responsibility and actively seek products from business
that operates ethically. CSR demonstrate that a business that takes an interest in wider social
issues, rather than just those that impact only company's margin profit, which will attract the
customers who share the same values. Therefore, it makes a good business sense to
operatesustainably. Thus the CSR concept is important for the satisfaction of both customers
and the company itself19.

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Criticism

As every coin has two face one is positive face and another is negative face, like a coin the CSR
policy have also two face one is the positive side and the another is negative side. The very first
criticism from my side regarding the CSR is that, companies are work with the CSR policy as per
the Companies Act, 2013 and donate 2 percent of the profit of last three precedent year. I think it
is just a part of fashion of the company to establish a name in the market nothing else.
Companies are donating a huge amount of its profit in on the name of social responsibility but a
reality about that companies is that a huge number of employees are appointed in these company
on contract basis they are compel to get an unsatisfied and unreasonable amount on the name of
salary. As per a data a prestigious company "Suzuki " have 32% contractual worker in 2013-14
and this data increase upto 42% contractual workers in 2015-16 this shows that data increases
day by day. Another surprising data shows that Coal India have 55% contract workers. As these
contractual workers are not satisfy with their payment and yes from their payment gap between
the regular employees and the contractual employees. A company will get succeed and will able
to more and more profit if all the employees of the companies will satisfy in each manner. So I
think a company should work in the area to satisfy the workers instead of to donate in CSR fund.
A company should make sure that all the employees of the company will get a reasonable and
equal payment for equal work. In a company if an employee get different salary for the same
work it will also the infringement of the article 14, 16 and 39(d) of the Constitution. That's why a
company should work towards to establish a level playing field between all the employees
instead of encourages these CSR type schemes.
 CONCLUSION
After completing this project I am on the conclusion that the corporate social responsibility is to
boost the economic growth of any country. In our country India, ONGC are playing an anchor
role to contribute a part of their substantial profit to the stakeholders. No company in this world
want to donate a share of profit towards a social work byitself unless a strict provision compel it
to take part in it. When a company contributes a part of their profit towards the society, it will
also create a brand value of their own name. In Indiain started the initiative to boost up financial
inclusion. But there are some criticism also connected with it which I have discussed above like
as the companies paying tax to the government for the economy growth of the country then why
government imposes an extra burden on the companies. Another critics regarding that is the
company should make sure to its own employees in each and every way instead of donating a
fund in CSR. Companies should try to decrease the contract workers by giving a equal wage to
all of its employees at the same level.
 Bibliography

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 https://csrbox.org/India_CSR_Project_Oil-and-Natural-Gas-Corporation-Ltd-(ONGC)-
Project-Utkarsh--Livelihood
 https://indiacsr.in/cyclone-fani-corporate-donations
 https://www.news18.com/news/india/kerala-floods-centre-agrees-to-divert-csr-
collections-to-cm-relief-fund-1862193.html
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