In earlier times, CSR was described as an internal organizational framework or a corporate ethics technique. In my personal view, the MCA needs to relook at this deletion before passing the amendmentii. GENERIC POLICY - FOR USE, IF REQUIRED BY ECTA MEMBERS Corporate and Social Responsibility Policy CSR is defined as the integration of business operations and values, whereby the interests of all stakeholders including investors, customers, employees, the community and the environment are reflected in the company's policies and actions. In order to operationalize the Companies (Amendment) Act, 2019, the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020 has been drafted for carrying out amendments in the Companies (CSR Policy) Rules, 2014. And with that establish the leadership, trusted relationships and positioning needed for successful future growth. PK ! "f.Rule 9 Display of CSR activities on Website. Maintaining less than twenty five percent employees as beneficiary is not a big deal.In my personal view, if the rule gets passed as it is without any tweaks, then there is a fair possibility of misuse (left to right pocket) at least by some companies/organizations & it will not be an easy task to prove any kind of violation. Company has provided the safe and clean environment in its theatre. Draft the CSR policy and recommend the same to the Board for approval which shall indicate the activities to be undertaken by the company. Henceforth CSR Board will have to go beyond directional role to be strategic in planning and executing activities listed … The MCA has invited public comments on the draft Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020 at http://feedapp.mca.gov.in/csr/till the end of business hours on 10th April, 2020... 1. "A company having the obligation of spending average CSR amount of Rs 5. Corporate Social Responsibility, or CSR, refers to the way in which businesses regulate themselves in order to ensure that all of their activities positively affect society as a whole. The Draft Rules define CSR Policy as under: “CSR Policy” means a statement containing the approach and direction given by the board of a company, as per recommendations of its CSR Committee, for selection, implementation and monitoring of activities to be undertaken in areas or subjects specified in Schedule VII of the Act Tiny Opera Company operates in a rural NSW Town. Inferences from the draft CSR Rules Amendments 2020: The Ministry has clearly indicated that they are bringing a central monitoring system for CSR spent, and each implementing agency will have to get themselves validated through filling up of CSR-1 form. ��#S D word/_rels/document.xml.rels �(� ���N�0E�H�C�=qS���-�p��C��Ȟ�{�TM��&�\+s���3_~�6y����҉H ��r�~���'�Z�! v CONTENTS Page Introduction 1 Historical Background of CSR 5 Developments on Corporate Social Responsibility in India 6 Corporate Social Responsibility and Companies Act, 2013 11 Applicability 11 Corporate Social Responsibility Committee 12 Corporate Social Responsibility Policy 13 CSR Expenditure 14 CSR Activities 15 Board’s Responsibility towards CSR 17 Comply or Explain 17  The Board may review the policy from time to time based on changing needs and aspirations of the target beneficiaries and make suitable modifications, as may be necessary. Provided that in case of any activity having less than twenty five percent employees as their beneficiaries, then such activity shall be deemed to be CSR activity under these rules. Some of the salient changes proposed are:a. CSR definition has been altered to state that CSR shall not include the following, namelyi) Activities undertaken in pursuance of normal course of business of the company.ii) Any activity undertaken by the company outside India. ";Author's personal view: The mandate of 2% CSR when it was introduced as a concept & later enshrined in Section 135 was to ensure that money does not go from the left pocket to the right pocket. We believe that a commitment to the principles of corporate social responsibility (CSR) not only makes good business sense but also complements our core business strategy and corporate values. • Embrace responsibility for the Company’s actions and encourage a positive impact through its activities on hunger, poverty, malnutrition, environment, communities, stakeholders and the society. Unspent balance, if any, towards fulfilment of CSR obligation at the time of commencement of the Amended Rules shall be transferred within a period of thirty days from the end of Financial Year 2020-21 to special account viz., 'Unspent Corporate Social Responsibility Account' opened by the company and such amount shall be spent by the company in pursuance of its obligation towards the Corporate Social Responsibility Policy within a period of three financial years from the date of such transfer, failing which, the company shall transfer the same to a Fund specified in Schedule VII, within a period of thirty days from the date of completion of the third financial year. The draft also includes some of the earlier provided MCA guidance on CSR under Section 135 of Companies Act 2013. Recommend the amount of expenditure to be incurred on the activities mentioned in point no. Our Corporate Social Responsibility (CSR) company policy refers to our responsibility toward our environment. The social responsibility of a business is to give back to the world just as it gives to us. Here is some guidance on what to include in your corporate social responsibility policy: Introduction. A company may also engage an international organization for implementation of a CSR project subject to prior approval of the central government. The main objective of CSR policy is to make CSR a key business process for sustainable development of the society by: Driving measurable change in our communities and Inspiring our actions as societal change makers and contribute to societal needs by applying our skills and expertise. Hence it would be better if this clause is tweaked to place in some checks and balances before approval else sooner or later, the MCA will have to come out with another Amendment/Policy FAQ on this.b. This is with the aim to display social and environmental awareness alongside expansion, which is in line with our principles and programmes. ��`S__�_x �C��CR�ť (i). This has caused a lot of heart burn amongst the affected NGOs who have been duly serving in this sector for quite some time now and really making a difference to their End Beneficiaries. Definition of CSR Policy “CSR Policy” means a statement containing the approach and direction given by the board of a company, as per recommendations of its CSR Committee, for selection, implementation and monitoring of activities to be undertaken … Any Sustainability or Corporate Responsibility policy should begin with the organisation. However, there are some simple steps you can follow. Thus, Registered Trusts or Registered Societies cannot be used for channeling the CSR Expenditure by the Companies in the revised Rules unless they have been established under an Act of Parliament.Author's personal view: Under the proposed change, only Section 8 Companies and any entity established under an Act of Parliament or a State Legislature, which are duly registered with the Central Government can be used for CSR implementation. As regards Rule 4 on CSR Implementation, the prominent changes are:i. ��� \ [Content_Types].xml �(� �V�n�0��;����a��ö��@��D���i��e'�$v������D{q�����+q[�E^c���V�Ϣ@Rި&x��P�/?~X����j����/R�ނSX����!9E|�62*�[m@��矤��ӌ2�X.~��d O*ѣr�#_B2��| ���D��ԕP16V+b��ٛ�Y�k���sLUf���D�暲����r����5T|em];�ߜ�Z�M���+4xR2��И�+[/��4 7���bC�~ü��=�S��_��wn �'���C��@�7SD���o&��yH��)����y� �f�G,B"}�/F ��0��>"�ɾ�!wu:���۫��n6HC���J��A���E�0��5��Z70�����X��,z�� The earlier Rule 4(5) clearly stated "CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities in accordance with Section 135 of the Act". 4. s�h��#���s��%N�C�V-�n��q��M�6�{��̓Ӿ��E�u /&O��V�[m ="�c�)���3�ٮ�{qX��;��O ���ӃZ�]k;���@L����W!��?xC�l�������t-��v In response to a call for public suggestions issued vide the Circular of the Ministry of Corporate Affairs, Government of India on the draft Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020, ("Amendment Rules") we have provided our comments and suggestions below. It’s part of a bigger system of people, values, other organizations and nature. This will create a policy statement that is unique. Assets created prior to the commencement of the Amendment, shall within a period of One hundred and eighty days from such commencement comply with the above changes, which period may be extended by a further period of not more than ninety days with the approval of the board based on reasonable justification.iv. Provided that until such fund is created the unspent CSR amount in terms of provisions of sub-section (5) and (6) of section 135 of the Act shall be transferred by the company to any fund as specified in schedule VII of the Act.5. However, the proposed amendment states that "any activity having less than twenty five percent employees as beneficiary, then such activity shall be deemed to be CSR activity under these rules".In the absence of any clearly defined limits or check points, this addendum, if approved and passed finally, can provide ample opportunities for companies/organizations to validly and legally fund the learning and development of their employees under Education and Skills building aspect in Schedule 7, which can possibly even consume a big chunk of their mandatory 2% CSR expenditure funds. The draft format of Independent Practitioner’s Report on Utilization of CSR Funds is attached. Businesses, regardless of size, have large carbon footprints. It should consider your purpose and core operations, values and culture. Comments, if any, may be submitted online at http://feedapp.mca.gov.in/csr/by end of business hours on 10th April, 2020. The Companies (Amendment) Act, 2019 amended section 135 dealing with Corporate Social Responsibility. Draft mid- and low-level employees to your internal CSR engagement team, and tap into their ideas, enthusiasm and feedback to build a sound strategy. Corporate Social Responsibility (CSR) for companies has been mandated through the Companies Act, 2013 (the Act), which came into effect since 01.04.2014. Our company’s existence is not lonely. Encl: Draft format of Independent Practitioner’s Report on Utilization of CSR Funds. New Rule 10 on National Unspent Corporate Social Responsibility Fund. CSR amount may be spent by a company for creation or acquisition of assets which shall only be held by a company established under Section 8 of the Act having charitable objects or a public authority. The Company vision is to create a theatre accessible to community. 3. This CSR policy sets out the principles we follow and the programmes we have developed to focus on the areas where we have significant impact or influence. Recognizing how important socially responsible efforts are to their customers, employees and stakeholders, many companies now focus on a few broad CSR categories: 1. However, existing NGOs that were either registered Trusts or Societies with track record of more than three years, but not established under an Act of Parliament or State Legislature now do not find their way into the list of entities authorized to undertake CSR under Section 135 of the Companies Act 2013. Three additional definitions have been added for Net profit, Ongoing Projects and Public Authority. This proviso has been totally deleted in the new amendment. CSR policy has to list a clear approach and direction given by the board of the company. As per proposed Rule 4(1) CSR activities can now be only undertaken by the company itself or through a company established under section 8 of the Act, or any entity established under an Act of Parliament or a State legislature and such Section 8 company/entity should be duly registered with the central government undertaking any CSR activity. Corporate Social Responsibility Policy. In case of ongoing projects, the Board of a company shall monitor the implementation of the project with reference to the approved timelines and year wise allocation and shall be competent to make modifications, if any, for smooth implementation of the project within the overall permissible time period.iii. The most important amongst these three is that of Ongoing Projects which means a multi-year project undertaken by a Company in fulfillment of its CSR obligation having timelines not exceeding three years excluding the financial year in which it was commenced which shall also include such projects that were initially not approved as a multi-year project but whose duration has been extended beyond a year by the Board based on reasonable justification.c. New Rule 8(3) on Impact Assessment. ق2�������8~�r������`� �� PK ! As per the legislative requirements there are various acts such as environment protection act, 1999 and other legislation protecting o… Before designing a CSR strategy it is often helpful to assess your current CSR activities, looking at the whole picture what CSR policies, programs, and structures are already in place and where the “gaps” are. :����tǖR�����hI�3�H�Q˸*�;��=�y��� n� ����yo������[vrf�A�6�3[�>_��-K���\NH!��?�|�h0Gt�v���?i�>��3�4�H8���' �� PK ! Company has also installed dishwater in its room which is a major step of Company to the sustainability business. G��y6�P�^~�9�{zp��Dd}��u0�}��?��-��&J���\=����G��U9����OcJv��k/�Z��.  CSR Policy is subject to revision/amendment in accordance with the guidelines as may be issued by the Government, from time to time. Download policy template. All these were notified on 27th February 2014 and came into effect since 01.04.2014. The Central Government shall establish a fund called the "National Unspent Corporate Social Responsibility Fund" (herein after referred as "the Fund") for the purposes of sub-section (5) and (6) of section 135 of the Act. Disclaimer – All views expressed are purely personal, Senior Corporate Counsel, Cisco Systems India Pvt Ltd. Begin the policy by acknowledging that the way your business is run affects society. Our policy is based on the following principles: Our Corporate Social Responsibility policy conforms to the Section 135 of the Companies Act, 2013 on Corporate Social Responsibility as spelt out by the Ministry of Corporate Affairs, Government of India and Implementation and monitoring of CSR Policy is in compliance with CSR objectives and Policy … CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY STATEMENT At Datrose, the way we lead, work and behave is driven by our core values. The Draft Rules define CSR Policy as under: 'CSR Policy' means a statement containing the approach and direction given by the board of a company, as per recommendations of its CSR Committee, for selection, implementation, and monitoring of activities to be undertaken in areas or subjects specified in Schedule VII of the Act The draft also defines CSR Policy in the context of the amendment. “ (e) “CSR Policy” means a statement containing the approach and direction given by the board of a company, as per recommendations of its CSR Committee, for selection, implementation and monitoring of activities to be undertaken in areas or subjects specified in Schedule VII of the Act.” Rule 7i. Monitor the Corporate Social Responsibility Policy of the company from time to time. }q��Y, ax word/document.xml�}�n�H�����/v� g�β�cdI��l��}IQ!���&);]W�{;��������A1hR���D+�@�%1H��?��߿������K�N0v��Ӄ���xwt`E��m/������������?�b&���#���W�q��!r�bfG�qq�3;�������-��`6�cw�zn��Q�u�c�ӃE蟨G���ND�$�[N���u����7y��s���o� Corporate Social Responsibility Policy of EzeSoftware India Private Limited (the “Company”) In accordance with Section 135 of the Companies Act, 2013 and the rules promulgated thereunder (collectively, the “CSR Requirements”), the Board of Directors of the Company One of the salient amendments in Section 135 is the addition of Sub Section (6) which mandates every company to transfer unspent CSR amount within thirty days from the end of the financial year to a special account to be opened by the company on its behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account, and such amount shall be spent by the company in pursuance of its obligation towards the Corporate Social Responsibility Policy within a period of three financial years from the date of such transfer, failing which, the company shall transfer the same to a Fund specified in Schedule VII, within a period of thirty days from the date of completion of the third financial year.3. 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