CSR POLICY
AS RECOMMENDED AND ADPOTED BY THE CONSENT OF ALL THE DIRECTORS IN BOARD OF
DIRECTORS OF “COMPANY NAME” AT ITS REGISTERED OFFICE “ADDRESS” ON DATE, TIME IN
ITS ____ BOARD MEETING.
Abbreviations:
- Company
(H) = Holding Company
- Company
= includes its Holding and all Subsidiaries Company
- CSR =
Corporate Social Responsibilities
- R &
D = Research and Development
- DOP =
Delegation of Powers
I. PREAMBLE
The concept of Corporate Social
Responsibility has gained prominence from all avenues. Organizations have
realized that Govt. alone will not be able to get success in its endeavor to
uplift the downtrodden of Society. With the rapidly changing corporate
environment, more functional
autonomy, operational freedom etc. Company has adopted CSR as a strategic tool
for sustainable growth. For Company in the present context, CSR means not only
investment of funds for Social Activity but also Integration of Business
processes with Social processes.
Even much before the issue of CSR became
global concern; Company was aware of its Corporate Social Responsibility and
was fulfilling the aspiration of the Society through well-defined “Community
Development Policy” within the periphery of 8 Kms. of the Project sites. This
has resulted into a harmonious relationship between
COMPANY
NAME and the peripheral Communities.
II.
INTRODUCTION
The Business of Company and its subsidiaries
are located in different parts of the country spread in ________ States, and
relatively in isolated areas with little contact to the outside society. Company
business has profound impact on the people living in and around the areas where
the Company (H) and its subsidiaries are established. The obvious impact of the
introduction of any production activity in such areas change the traditional
lifestyle of the original inhabitants and indigenous communities and also
change the socio-economic profile of the Area. Hence, the primary beneficiaries
of CSR should be land oustees and those staying within the radius of 25 Kms of
the Project. Poor and needy section of the society living in different parts of
India should be second beneficiaries.
In the aforesaid backdrop, policy on
Corporate Social Responsibility of Company is broadly framed taking into
account the following measures: -
a)
Welfare
measures for the community at large including employees and their families, so
as to ensure the poorer section of the Society derived the maximum benefits.
b)
It will take
care of land less and project affected persons. Proper rehabilitation of the
land oustees/displaced persons based on R&R policy separately formulated
and the expenditure on R & D issues would be included in the Project Cost.
c)
Contribution
to the society at large by way of social and cultural development, imparting
education, training and social awareness specially with regard to the
economically backward class for their development and generation of income to
avoid any liability of employment.
d)
Protection
and safeguard of environment and maintaining ecological balance.
III.
OBJECTIVE
The main objective of CSR policy is to lay
down guidelines for the companies to make CSR a key business process for
sustainable development for the Society. It aims at supplementing the role of
the Government in enhancing welfare measures of the society based on the
immediate and long term social and environmental consequences of their
activities. Company will act as a good Corporate Citizen, subscribing to the
principles of Global Compact for implementation.
IV. AREAS TO
BE COVERED
The poor and needy Section of the Society
living in different parts of India would normally be covered. The CSR Programme
will also cover the existing components of Special Corporate Plan (SCP) and
Tribal Sub Plan (TSP) for development of the SC and ST population besides
development components for the entire population.
For carrying out CSR activities, 80% of the
budgeted amount should be spent within the radius of 25 Km of the Company (H)
and 20% of the budget would be spent on CSR activities within the State/States
in which the subsidiary companies are operating. Chairman/Managing Directors of
the subsidiary companies shall exercise their DOP for according approval for
the project within the ceiling limit of said 20% budget.
CSR should be broadly executed by Company (H)
in the areas, which are beyond the jurisdiction of subsidiary companies.
Further CSR for the loss making companies should be undertaken by Company (H).
Besides, Board of Company (H) may extend to initiate specific projects abroad,
under special circumstances.
V. SCOPE
i.
Education
ii.
Water Supply
including drinking water.
iii.
Health care
by providing Indoor medical facilities and medicines
iv.
Environment
v.
Social
Empowerment
vi. Infrastructure
for Village Electricity/Solar Light/Pawan Chaki etc. Recurring expenditure
should be borne by the beneficiaries.
vii.
Sports and
culture.
viii.
Generation
of employment & setting up Co-operative Society.
ix.
Infrastructure
Support
x.
Grant/donation/financial
assistance/sponsorship to reputed NGOs of the Society/locality doing/involve in
up-liftment of the standard of the society.
xi.
Heritage
sites in the CSR purview ensuring involvement of employee’s representatives in
this Project.
xii.
Empowerment
of women for education/health & self employment
xiii.
Relief of
victims and Natural Calamities like Earth Quake, Cyclone, Draught and Flood
situation in any part of the country.
xiv.
Disaster Management
Activities including those related to amelioration/ Mitigation.
xv.
Collection
of old cloths from the employees and distribution in the nearby village by
utilizing the platform of Mahila Sabha of the Company, Club (Executives &
Non-executives) and Women in Public Sector.
xvi.
Development
of smokeless fuel out of coal and also arrangement for distribution of
efficient Chula to the villagers.
xvii.
Adoption of
village for carrying out the activities like infrastructural development e.g.
Road, water supply, electricity and community center etc.
Ø
The above
list is illustrative and not exhaustive. CMDs shall be authorized to consider
CSR activities not falling in this list.
Ø
The
activities will be specific to the village depending on the need assessed for
the people. As far as possible efforts will be made to co-ordinate with similar
CSR activities that are taken up by the Central or State Government in the
areas of COMPANY NAME.
Ø
All
activities under the CSR activities should be environment friendly and socially
acceptable to the local people and Society.
A.
Education
ü
Support t o
Technical/Vocational Institutions for their self- development.
ü
Academic
education by way of financial assistance to Primary, Middle and Higher
Secondary Schools.
ü
Adult
literacy especially amongst those belonging to BPL.
ü
Awareness
programmes on girl education.
ü
Counseling
of parents
ü
Special
attention on education, training and rehabilitation of mentally &
physically challenged children/persons.
ü
Spreading
legal awareness amongst people and disadvantageous sections of the society
about their rights & remedies available.
ü
Promotion of
Professional Education by setting up educational institutions offering courses in Engineering, Nursing,
Management, Medicine and in Technical subjects etc. Company will ask for
reservation of seats for Company’s nominated students considering their
different aspects.
ü
Provide fees
for a period of one year or more to the poor and meritorious, preferably girl
students of the school in the operational area of the Company to enable them to
get uninterrupted education.
ü
Provide
cycle to needy girl students who are attending school in remote and distant
areas.
ü
Payment of
100 nos. of COMPANY Scholarship to the Students belonging to BPL Category
and 25 nos. of COMPANY Scholarship to the wards of Land Oustees’/displaced
persons’ every year who are pursuing degree course (Graduation course) in IITs,
NITs and other Engineering Degree Course (Graduation Course) in other
Government Colleges where Company (H) is conducting recruitment through Campus
Selection and Government Medical Colleges (MBBS Course) for meeting the
reimbursement of tuition fees, Hostels fees (Accommodation charges) and
Incidental Fee of Rs. ______ /- (Rupees Ten thousand) only as Mess charge or
actual Mess charge whichever is less per academic session from the academic
session 20XX-XX and onward.
The above Scholarships will be operated
centrally by Company (H) through respective Government Engineering Colleges,
Technical Institutes and Government Medical Colleges.
B.
Water Supply
including Drinking Water
ü
Installation/Repair
of Hand Pumps/Tube Wells.
ü
Digging/Renovation
of Wells.
ü
Gainful
utilization of waste water from Under -ground Mines for cultivation or any
other purpose.
ü
Development/construction
of Water Tank/Ponds.
ü
Rain
water-harvesting scheme.
ü
Formation of
a Task Force of Volunteers to educate people regarding proper use of drinking
water.
ü
Empowerment
to the villagers for maintenance o f the above facilities for availability of
water.
C.
Health Care
Organizing health awareness Camps on
ü
AIDS TB and
Leprosy
ü
Social evils
like alcohol, smoking, drug abuse etc.
ü
Child and
Mother care
ü
Diet and
Nutrition.
ü
Operation
Jyoti – Vision 2020 to help the people of the peripheral area for necessary
assistance.
ü
Blood
donation camps.
ü
Diabetics
detection & Hypertension Camps
ü
Family
Welfare.
ü
Senior Citizen
Health Care Wellness Clinics.
ü
Fully
equipped Mobile Medical Vans.
ü
Tele
medicine
ü
To
supplement the different programme o f Local/State Authorities.
D.
Environment
ü
Organizing
sensitizing programmes on Environment Management and Pollution Control.
ü
Green belt
Development
ü
Afforestation,
Social Forestry, Check Dams, Park.
ü
Restoration
of mined out lands.
ü
Development
of jobs related to agro product i.e., Dairy/Poultry/farming and others.
ü
Plantation
of saplings producing fruit.
ü
Animal care.
E.
Social Empowerment.
ü
Self
/Gainful Employment Opportunities – Training of Rural Youth for Self Employment
(TRYSEM) on Welding, Fabrication, and other Electronic appliances.
ü
To provide
assistance to villagers having small patch of land to develop mushroom farming,
medicinal plants, farming & other cash crops to make them economically
dependent on their available land resources. Training may be provided by
agricultural experts for above farming.
ü
Organizing
training programmes for women on tailoring Embroidery designs, Home Foods/Fast
Foods, Pickles, Painting and Interior Decoration and other Vocational Courses.
ü
Care for
senior citizens.
ü
Adoption/construction
of Hostels (specially those for SC/ST & Girls)
F.
Village
Electricity/Solar Light
ü
To develop
infrastructural facilities for providing electricity through Solar Lights or
alternative renewal energy to the nearby villages. Recurring expenditure should
be borne by the beneficiaries.
ü
Pawan Chakki
as alternative for providing electricity in villages.
G.
Sports and
Culture
ü
Promotion of
Sports and Cultural Activities for participation in State and National level.
ü
Promotion/Development
of sports activities in nearby villages by conducting tournaments like
Football, Kabaddi and Khokho and others etc.
ü
Providing
sports materials for Football, Volleyball, Hockey sticks etc. to the young and
talented villagers.
ü
Promotion of
National level teams. Sponsorship of National Sports events.
ü
Sponsorship
of Cultural event to restore Indian Cultural Traditions and Values.
ü
Possibility
of providing facilities for physically handicapped persons may be explored.
ü
Medias for
preparing of documentary films.
Guide-lines to be followed to promote sports
activities by way of granting financial assistance/donation/sponsorship etc.
Registered Clubs/Institutions
which promote Sports activities may be granted financial
assistance/donations/sponsorship based on the following norms:-
1)
Sports
talent development programme by Clubs/Institutions may be encouraged provided
the proposal is routed through the respective Block Development
Office/Sub-Divisional Office/District Office/State Associations/ local people
representatives i.e. Panchayat, Pradhan/Mukhiya/MLA/MP/ Minister etc., to
ascertain bonafide objective, status of activities and contribution to the
society.
2) While
sanctioning financial assistance/donation/sponsorship for State/
National/International events, Company (H)/Subsidiary Companies could send its
representatives to ensure proper utilization of fund for the specific purpose,
as well as, to ensure publicity/coverage for corporate image building.
3)
While sanctioning
financial assistance /donation/ sponsorship for encouraging talent search &
nurturing by Club & Institution, Company/Subsidiary Companies would also
ensure participation of its employees and their wards to avail benefits.
4)
As per Company
Policy for payment of financial assistance/donation/ sponsorship Registered
Clubs/Institution will furnish details as required by Holding/Subsidiary
Companies i.e. their Registration, PAN No. etc. to establish their
authenticity.
H.
Generation
of employment & setting up Co-operative Society.
Employment facilities should be
provided to the community people especially to the backward section by
providing education and training thereby developing their skill for suitable
Employment.
Further opportunities for self-employment
should be provided by constructing Shopping Complex in and around the projects.
Besides, Co-operative Societies should be formed by active participation of
local people for setting up Dairies, Poultries and Piggery etc, which will also
help to generate self-employment.
I.
Infrastructure
Support – construction, repair, extension etc.
ü
Auditorium,
ü
Educational
Institutions
ü
Rural
Dispensaries initiated by reputed NGOs.
ü
Mobile
Creches.
ü
Bridges,
Culverts & Roads,
ü
Check Dam
ü
Shopping
Complex to facilitate business/self employment for
ü
local people
ü
Community
Centre,
ü
Sulabh
Souchalaya,
ü
Yatri Shed
in Bus Stand,
ü
Burning
Ghat/Crematorium
ü
Development
of Park
ü
Play
ground/Sports complex/Good Coaches.
ü
Old Age
Home.
VI.
IMPLEMENTATION
a) The investment in CSR should
be project based and for every project time framed periodic mile
stones should be finalized at the outset.
b) Project activities identified
under CSR are to be implemented by Specialized Agencies and generally NOT by
staff of the organization. Specialized Agencies could be made to work singly or
in tandem with other agencies.
c) Such specialized agencies
would include:
i.
Community
based organization whether formal or informal.
ii.
Elected
local bodies such as Panchayats
iii.
Voluntary
Agencies (NGOs)
iv.
Institutes/Academic
Organizations
v.
Trusts,
Mission etc.
vi.
Self-help
groups
vii.
Government,
Semi Government and autonomous Organizations.
viii.
Standing
Conference of Public Enterprises (SCOPE)
ix.
Mahila
Mondals/Samitis and the like
x.
Contracted
agencies for civil works
xi.
Professional
Consultancy Organization etc.
(d)
Activities related to Sustainable Development will form a significant element
of the total initiatives of CSR. Such activities should come under the 3 UN
Global Compact Principles pertaining to the Environment Business are asked to
a)
Support a
precautionary approach to environmental challenges
b)
Undertake
initiatives to promote greater environmental responsibility and
c)
Encourage
the development and diffusion of environmentally friendly technologies.
VII.
INSTITUTIONAL ARRANGEMENT
a) All proposals under CSR
activity would be referred to _________________, who will evaluate the Project
Report and submit its report to the Committee constituted for the purpose for
their examination/submission of report with necessary recommendation to _________________,
as the case may be and thereafter based on the recommendation of _______________In-charge
of CSR, Competent Approval shall be accorded.
b) Project proposal for any CSR
activity shall be examined by the Standing Committee consisting of executives
of different disciplines/HODs with strength of 6 (six) members and submit
report/recommendations to the respective __________________In-Charge of CSR.
c) _______________, Company for
proposals related to company and ___________ of each subsidiary company
for proposals related to subsidiary company, shall recommend the above report
of the Committee for Competent approval.
d) The activities of the CSR
Committee will also involve the following:
1)
Interact
with the concerned _________________________ to confirm the areas for
undertaking activities under CSR and ensure to avoid duplicity of the job.
2)
To decide
the priority of the activities to be undertaken under CSR.
3)
To interact
with the CSR Implementing agencies for determining the activities to be
undertaken.
4)
The
Committee will monitor and review the progress of activities Undertaken/completed.
e) DOP for according approval of any project
proposal would be as under:
i.
Project
Proposal up to Rs. _______ lakhs shall be approved by CMD of subsidiary
company. Proposals beyond Rs. _______ lakhs shall be approved by respective
Board.
ii.
Project
proposal related to Company (H) up to Rs. _______ crore shall be approved by
Chairman/MD of the Company.
iii.
Project
proposal related to Company (H) exceeding Rs. ______ crore shall be approved by
Board of Directors of the Company.
The committee at Company (H) level would be
headed by _____________, Board and would include:
a)
b)
c)
d)
e)
f)
Company
Secretary will be the Member Secretary
C.S.R. Department of Company would act as
“NODAL” under the guidance of __________________ would put up all cases to the
Committee for consideration and the recommendation of the Committee to the __________
/Head of the Committee and there after the proposals up to Rs. _________ crore
shall be placed before Chairman/MD of the company for approval and the
proposals beyond Rs. __________ crore shall be placed before Board of Directors
in the meeting.
VIII.
MONITORING
a)
At Company level
and subsidiary level full time CSR Cell should be constituted headed by a _____________
who will prepare the Annual Report on CSR Activities. Monthly Report on CSR
should be sent by each subsidiary to
Company (H) highlighting the cumulative outlays and outcomes of the program in
specific details.
b)
In every six
months Board of Directors of Company (H) as well as subsidiaries should review
the implementation of CSR
c)
Company (H)
as well as subsidiaries shall include a separate/chapter in the Annual Report
on the implementation of CSR activities/project including the facts relating to
physical and financial progress.
d)
Cost benefit
and justification includes the amount of financial involvement, detailed
project Report for which Project Appraisal have to be carried out by External
Agencies/Third party Agency.
e)
Utilization
Certificate with statement of expenditure duly certified by an Authorized
Auditor will be submitted by the Organization/ Institution to whom CSR fund is
allocated.
IX. SOURCE
OF FUND
The fund for the CSR should be allocated
based on ____% of the retained earnings of previous year subject to minimum of
Rs. _____/- per _______________ of previous year. Out of above, 80% of the
budget allocated for CSR activities is to be carried out within the radius of
25 Kms of the project site and balance 20% would be allocated for carrying out
CSR activities by Subsidiary Companies in the State to which the Subsidiary
Company belongs.
For funding against CSR to be executed by Company
(H), 2.5% of retained profit of last year of Company (H) shall be allocated for
execution of CSR activities, out of which 1.5% should
be allocated for the activities in the States which are not covered by
subsidiary companies and also supporting the loss making subsidiaries and 1%
should be allocated for carrying out the activities at local level. Appropriate
authority for CSR expenditure shall be Chairman/MD of the Company for proposals
up to Rs. ______ crore and Board for proposals beyond Rs. _____ Crores duly
recommended by the CSR Committee and approved by ___________.
Out of Total CSR Budget, ___% and ____% would
be allocated separately and exclusively in the Annual Plan as the case may be
for undertaking Welfare Activities under
CSR for development of Scheduled Caste and Scheduled Tribes populations
respectively.
The CSR Project should be fixed for each
financial year. This funding will not lapse. It
will be transferred to CSR Fund which will accumulate on year to year basis.
X. BASE LINE
SURVEY & DOCUMENTATION
(a) The CSR activities where Community
Development Programme is involved, base line survey is essentially to be
carried out and cost benefit has to be seen in the proposed scheme through the
above survey.
The CSR activities for providing
infrastructural facilities like medical college, institution, where social
benefit is involved, baseline survey is not required. However, cost benefit and
justification for any project has to be ascertained.
(b) Meticulous documentation
relating to CSR approaches policies, programmes, expenditures, procurement etc.
should be prepared and put in the
Public Domain, (particularly through the internet) and made available to the
National CSR Hub.
XI. UPKEEP
AND MAINTENANCE OF ASSETS CREATED
Maintenance of Assets created under CSR would
be the Responsibility of the concerned
__________________ and local representative of the Society. Before any Capital
investment is made, an undertaking would be taken from the representatives of
local community that they would be responsible for maintenance of the Assets.
XII. REFLECTION
OF CSR ACTIVITIES
Annual audit of all activities undertaken by
the company would be done by local Authorized auditor. The CSR activities will
be reflected in the Annual Report and Accounts of COMPANY NAME under Social
Overhead (CSR). The Committee constituted in the area will inspect all sites
and reflect the same to CSR Cell for their information, record and further
action.
XIII.
CONCLUSION
The above guidelines would form the framework
around which the CSR activities would be undertaken. Every subsidiary Company
should have specific activities to adopt mostly in their close vicinity of the
projects extendable up to the affairs of the State to which it is belonging. In
case of Company (H), it should cover the CSR policy at national level.
CSR activities in any State should be
preferably done through the subsidiary(s) located in the State, whether funded
by subsidiary or supplemented by Company (H). For States without any
subsidiary, CSR activities, if any, shall be done by Company (H).
Since CSR Policy of Company includes all the
Community Development activities in a broader perspective, the CSR Policy of Company
will supersede earlier policies relating to CSR, if any.
Company (H) will 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.
