CORPORATE SOCIAL RESPONSIBILITY www facebook comjackysethia CORPORATE SOCIAL

CORPORATE SOCIAL RESPONSIBILITY www. facebook. com/jackysethia

CORPORATE SOCIAL RESPOSIBILITY Corporate social responsibility is basically a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. Corporate social responsibility is represented by the contributions undertaken by companies to society through its business activities and its social investment. This is also to connect the Concept of sustainable development to the company’s level. www. facebook. com/jackysethia

CSR RELATES TO: www. facebook. com/jackysethia

CSR INCLUDES: Philanthropic Responsibilities (Be a good corporate citizen) Ethical Responsibilities (Be ethical) Legal Responsibilities (Obey the law) Economic Responsibilities (Be profitable) www. facebook. com/jackysethia

WHY CSR ? q Consumers & Investors: Growing expectation for organisations to behave responsibly q Consumer awareness: Green and Ethical consumerism q Legislation: Sustainability , Codes of practice q Globalization: Adoption of Best Practice , Consumer & Legal Acceptance www. facebook. com/jackysethia

BUSINESS ADVANTAGES q Human Resources v. Recruitment, retention and morale of staff q Risk Management v. Investment in “Ethical Brand Equity” v. Greenwash Effest q Brand Differentiation v. As USP v. Build brand loyalty v. Reputation & brand attractiveness v. Addresses issues by being proactive www. facebook. com/jackysethia

BUSINESS ADVANTAGES q Business Development v. New markets, products & services v. Addresses social issues business caused and allows business to be part of the solution v. Protects business self-interest q Resources Management v. Better management & conservation of strategic assets v. Addresses issues by using business resources & expertise q Stakeholder Management v. Better internal & external relationships v. Freedom of operation: reduce govt. , public, NGO intervention in organization www. facebook. com/jackysethia

Companies Act, 2013 Provisions (CSR) The Companies Act mandates companies having a net worth of Rs 500 crore or more; or a turnover of Rs 1000 crore or more; or a net profit of Rs 5 crore or more to have a CSR spend of at least 2% of their average net profit of past three years. www. facebook. com/jackysethia

WHAT IS NGO ? A non-governmental organization (NGO) is any non-profit, voluntary citizens' group which is organized on a local, national or international level. Task-oriented and driven by people with a common interest, NGOs perform a variety of service and humanitarian functions, bring citizen concerns to Governments, advocate and monitor policies and encourage political participation through provision of information. Some are organized around specific issues, such as human rights, environment or health. www. facebook. com/jackysethia

REGISTRATION OF NGO In India non-profit, non governmental / public charitable organizations can be registered under NGO registration system as trusts, societies, or a private limited non profit company, under section-25 companies. Registered Non-profit organizations in India: (1) operate independently of the state; (2) Are self-governed by a board/group of trustees or ‘managing committee’/ governing council, comprising people who generally serve in a fiduciary limit; (3) Create benefits for others, basically outside the membership of the organization; and (4) Are ‘non-profit making’, in as much as they are prohibited from distributing a monetary leftover to their own organization members. www. facebook. com/jackysethia

COMPARISON AMONG TRUST, SOCIETY AND NON PROFIT COMPANY Trust Society Section-25 Comapny Statute/Legislation Relevant State Trust Act or Bombay Public Trusts Act, 1950 Societies Registration Act, 1860 Indian Companies Act, 1956 Jurisdiction Deputy Registrar/Charity commissioner Registrar of societies (charity Registrar of companies commissioner in Maharashtra). Registration As trust As Society In Maharashtra, both as a society and as a trust Registration Document Trust deed Memorandum of association Memorandum and articles and rules and regulations of association. and regulations Stamp Duty Trust deed to be executed on non-judicial stamp paper, vary from state to state No stamp paper required for memorandum of association memorandum and articles and rules and regulations. of association. Members Required Minimum – two trustees. No Minimum – seven managing Minimum three trustees. No upper limit. committee members. No upper limit. Board of Management Trustees / Board of Trustees Governing body or council/managing or executive committee Mode of Succession on Appointment or Election www. facebook. com/jackysethia Appointment or Election by As a company u/s 25 of the Indian Companies Act. Board of directors/ Managing committee Election by members of the

SPECIAL LICENSING In addition to registration, a non-profit engaged in certain activities might also require special license/permission. Some of these include (but are not limited to): q. A place of work in a restricted area (like a tribal area or a border area requires a special permit – the Inner Line Permit – usually issues either by the Ministry of Home Affairs or by the relevant local authority (i. e. , district magistrate). q. To open an office and employ people, the NGO should be registered under the Shop and Establishment Act. q. To employ foreign staff, an Indian non-profit needs to be registered as a trust/society/company, have FCRA registration and also obtain a No Objection Certificate. The intended employee also needs a work visa. q. A foreign non-profit setting up an office in India and wanting staff from abroad needs to be registered as a trust/society/company, needs permission from the Reserve Bank of India and also a No Objection Certificate from the Ministry of External Affairs. www. facebook. com/jackysethia

TAX BENEFITS FOR DONATIONS TO NGO’s Most charities should be able to give you a receipt with an 80 G registration number that is currently valid (check the validity of the 80 G certificate). This entitles you to deduct 50 per cent of your donation from your taxable income. Some charities offer higher deductions. With a 100 per cent deduction, you can afford to donate one-third more to the charity with the same net outgo from your pocket. www. facebook. com/jackysethia

Prepared By: Jayant Sethia Whatsapp: 91 -8505854213 Facebook: www. facebook. com/jackysethia