Given that the purpose of a CSR committee is to expressly define and approve CSR activities, money utilisation, and so on, the rules may be significantly eased such that the Board of Directors is not required to examine and approve them. The CSR committee may be tasked with CSR implementation, and the CSR committee may then provide a report to the Board of Directors
Indians Corporates are remarkably contributing meeting their Social Responsibility by contributing to the CSR objectives. Both Public Sector Enterprise as well as private sector entities are notably contributing to the Nations Objective.
Power Finance Corporation Ltd. (PFC) received the Corporate Social Responsibility award in the NF (Non-Fossil Fuel) business category at the Outlook Planet Sustainability Summit & Awards 2024, held in Goa.
According to SBI’s Annual Report Annual Report, Rs 502.32 crore has been set aside for CSR initiatives in FY2024. An sum of Rs 301.24 crore has been allotted to the SBI Foundation for project-based CSR initiatives. SBI carried out 173 CSR activities in 80 Aspirational Districts during FY2024.
Healthcare, Education, Livelihood, Rural & Slum Area Development, Skill Development, Environment, Protection of National Heritage, Empowerment of Women and Senior Citizens, Animal Welfare, and Sports are among the focus areas of SBI CSR activities for FY2024, which have been carried out through 17 circles of SBI covering all states and UTs.
The SBI Foundation was founded to ensure the seamless implementation of big CSR projects/programmes that need significant financial and time investment. The SBI Foundation’s mission is to carry out socially oriented projects directly through strategic alliances and in conjunction with third parties.
The SBI Board’s Corporate Social Responsibility Committee (CSRC) provides a transparent monitoring system for the execution of CSR programmes, programmes, and activities. The Board’s CSRC directs actions in accordance with the established CSR policy and analyses progress quarterly.
However It’s the time when Government can look at how CSR rules can be made more conducive for the Corporations. Given that the purpose of a CSR committee is to expressly define and approve CSR activities, money utilisation, and so on, the rules may be significantly eased such that the Board of Directors is not required to examine and approve them. The CSR committee may be tasked with CSR implementation, and the CSR committee may then provide a report to the Board of Directors on a regular basis, including the important highlights. Obligation on the board may result in micromanagement of CSR operations by the Board of Directors, defeating the purpose of having a CSR committee. As a result, MCA may choose to explore allowing CSR project clearance on a regular and routine basis, with approval from the CSR Committee.
The present guidelines for ongoing project timelines of three years can be extended to five years, particularly for organisations with a large CSR budget. Due to a 3-year time limit, many organisations end up picking several smaller initiatives rather than a few large CSR projects that require more than three years.
Clarification may be offered on whether to categorise expenses directly incurred for the design, monitoring, and assessment of a specific CSR initiative or programme as project costs (because they will not be included in administrative overheads).
Supporting Indian artists for the promotion of Indian art and culture overseas may be included to the same list as promoting Indian athletes abroad. This type of CSR investment will promote national heritage internationally.
Government CSR rules have been successful in meeting its objective in doing the social good and with slight modifications its impact can be further strengthened.
Galactik Views