e Social

Responsi
bility
Presented by:
Sneha Manandhar
(19121) Here is where your
presentation begins
Shahil Shrestha (19134)
 TABLE OF CONTENTS

01. 02. 03. 04.

Concept Of History of CSR IN CSR in
CSR
What is CSR?
CSR
Prevailing International
trends and how did it Nepal
What does IEA and BAFIA
say? Are they India
What does India’s
Company Act Say?
come by appropriate?
01.
Concept of CS
INTRODUCTION
Corporate Social Responsibility is a management
concept whereby  companies integrate social and
environmental concerns in their business
 operations and interactions with their
stakeholders.
CSR is generally  understood as being the way
through which a company achieves a balance  of
economic, environmental and social imperatives
(“Triple-Bottom-Line-  Approach”), while at the
same time addressing the expectations of
 shareholders and stakeholders. In this sense it is
important to draw a  distinction between CSR,
which can be a strategic business management
 concept, and charity, sponsorships or
philanthropy. Even though the  latter can also
make a valuable contribution to poverty reduction,
will  directly enhance the reputation of a company
02.
History of Csr
 Wealthy businessman and philanthropist Andrew Carnegie challenged
wealthy people to support social causes, following his belief in the 
1800’s Gospel of Wealth. In the late 1800s, John D. Rockefeller, taking
inspiration from Carnegie, followed suit in donating more than 
half a billion dollars.

In the 1940s, with the fallout of World War II, companies like Hormel,
known for producing Spam, did their part for social good by working
1940’s
closely with the government through the Lend-Lease program, which
provided much-needed food supplies for those affected by the war.

Howard Bowen, an American economist and Grinnell College president,

is often cited as the “father of CSR.” He connected the responsibility of
1953 corporations to society and published a book in 1953, which advocated
for business ethics and responsiveness to societal stakeholders called 
Social Responsibilities of the Businessman.
 the concept of the “social contract” between business and society was declared
by the Committee for Economic Development in 1971. The social contract is
1970s based on the idea that business functions because of public “consent,” therefore
business has an obligation to constructively serve the needs of society.
Contribute more to society than solely their products for sale.

Carroll’s definition of CSR was understood as a 3-pronged approach:

• companies adopted principles (or ethics),
1980’s
• created and executed formal processes (how they would respond),
• and developed policies (managing specific issues).

Professor Wood published Corporate Social Performance Revisited.

This paper added an important facet: program outcomes and impacts.
1990’s Aside from perhaps an early version of the impact measurement
systems we know today, Wood also provided a model for assessing
CSR at the institutional, organizational, and individual levels.
 International Trends

Starbucks Lego Netflix

 52 weeks of paid
Diversify their Lego will invest $150 million
parental leave,
workforce and provide  over the next 15 years with a
which can be
opportunities for focus on addressing climate
taken at any time
certain cohorts, hire  change and reducing waste. It
whether it is the
25,000 veterans by has reduced their packaging
first year of the
2025 and hire more as well as investing in an
child's life or
young people to help alternative energy source and
another time
jump start career plans to source 100%
renewable energy by 2020. 
 EXAMPLES of CSR
Anthropos Yeti
every 10 glassese Airlines
Cartaract Surgery for Plant trees; Donation of
sold NPR 4.00 collected from
each passenger ticket to
four social organizations

Bottlers
Surya
Nepal
Rainwater Harvesting and
SNPL Asha, SNPL
Ground Water Recharge
System in Kathmandu NepalSNPL
Suswasthya;
Prakriti; SNPL
through different
Khelparyatan
partnerships

CE Standard
Use bricks produced by Seeing is believing,
Constructi
Vertical Shaft Brick Kiln Chartered
positive living,
(VSBK) technology, one of financial educaion
on
the cleanest methods of
brick production around the
world
03.
Csr In Nepal
 Practice In NEPAL
 Widespread misconception in Nepal that CSR is limited to
charity and CSR activities are possible only with hefty
spending and sizable funding
 Mandatory for industries and BFIs, as governed by
Industrial Enterprise Act (IEA) and Nepal Rastra Bank’s
circular respectively, but not mandatory for insurance
corporations and other non-industrial sectors
 Industrial Enterprise act (IEA)
Section 48 (1) 2016, chapter 9
 The mandatory CSR requirement is applicable only to
certain industries on the basis of fixed capital investment
and annual turnover, explained in the table below:

Industry Type Fixed Capital Annual Turnover CSR Fund to be

Investment Requirement allocated
Small Scale Less than NPR Greater than NPR At least 1% of
Industry 100,000,000 150,000,000 annual profit
Medium Scale NPR 100,000,000 No minimum At least 1% of
Industry – 250,000,000 turnover annual profit
requirement
Large Scale Greater than NPR No minimum At least 1% of
Industry 250,000,000 turnover annual profit
requirement
 Industrial Enterprise act (IEA)
 Sector specification: Prior approval from the government
authorities is2016,
not requiredchapter 9plans and
for the annual
programs prepared for the utilization of the amount of the
CSR

 Reporting requirement: The transaction amount for a

financial year and progress report of the utilization of the
fund collected for the CSR is required to be submitted to
the relevant authorities registered within three months
from the end of the financial year

 Sanction for non-compliance: The IEA penalizes the

industries at the rate of 0.75% of the annual revenue for
the failure to comply with the CSR obligation
 Banks and financial institutions
(BFIs)
 According to the circular for Bank and Financial
Institutions (BFIs) issued by Nepal Rastra Bank, BFIs
should deposit at least 1% of their net profit in their CSR
fund and to be utilized in the subsequent fiscal year
 Unlike IEA, this circular has categorized sectors where the
fund should be utilized, sectors such as social projects,
direct grant expenses, sustainable development goals and
setting up a Child Day Care Center for employees
 For non compliance to the NRB circulars, both fine and
imprisonment sanctions are defined according to Nepal
Rastra Bank Act 2002 (2058)
 IS CSR LAW APPROPRIATE?
 CSR law seems to be a good start to grow the CSR culture
in Nepal, but it can’t guarantee that the obligatory CSR
activities will be genuinely carried out

 Companies should feel their responsibility themselves and

carry out CSR activities in the best interests of the
stakeholders voluntarily
04.
Csr in India
 Section 135- Corporate Social
Responsibility
(1) Every company having net worth of rupees five hundred
crore or more, or turnover of rupees one thousand crore or
more or a net profit of rupees five crore or more during any
financial year shall constitute a Corporate Social
Responsibility Committee of the Board consisting of three or
more directors, out of which at least one director shall be an
independent director.
(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 Corporate
Social Responsibility Policy which shall indicate the activities
to be undertaken by the company as specified in Schedule
VII;
 (b) recommend the amount of
expenditure to be incurred on the activities
referred to in clause (a); and
(c) monitor the Corporate Social
Responsibility Policy of the company 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 by the Corporate
Social Responsibility Committee, approve
the Corporate Social Responsibility Policy for
the company and disclose contents of such
Policy in its report and also place it on the
company's website, if any, in such manner
 (b) ensure that the activities as are included in Corporate Social
Responsibility Policy of the company are undertaken by 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
made during the three immediately preceding financial years, in
pursuance of its Corporate Social Responsibility Policy:
Provided that the company shall give preference to the local area
and areas around it where it operates, for spending the amount
earmarked for Corporate Social Responsibility activities:
Provided further that 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.
Explanation.—For the purposes of this section ―average net
profit shall be calculated in accordance with the provisions of
section 198
 Schedule VII
Activities which may be included by companies in their
Corporate Social Responsibility Policies Activities relating
to:—
(i) eradicating extreme hunger and poverty;
(ii) promotion of education;
(iii) promoting gender equality and empowering women;
(iv) reducing child mortality and improving maternal
health;
(v) combating human immunodeficiency virus, acquired
immune deficiency syndrome, malaria and other
diseases;
(vi) ensuring environmental sustainability;
 (vii) employment enhancing vocational skills;
(viii) social business projects;
(ix) contribution to the Prime Minister's National Relief Fund
or any other fund set up by the Central Government or the
State Governments for socio-economic development and
relief and funds for the welfare of the Scheduled Castes, the
Scheduled Tribes, other backward classes, minorities and
women; and
(x) such other matters as may be prescribed.
 CSR In Labour Law
Key CSR issues: environmental management, eco-efficiency,
responsible sourcing, stakeholder engagement, labor standards and
working conditions, employee and community relations, social
equity, gender balance, human rights, good governance, and anti-
corruption
Labor Act measures.
2017 talks about working hours
(chapter 7, Section 28-33), insurance for the
employees, leaves provided for the
employees (chapter 9), minimum
wages(Nepal Gazette Vol. 20), health and
safety committee and arrangements
(Chapter12).
 REfrences
●United Nations Industrail Development Organization
●Industrial Enterprise Act, 2016
●Bank and Financial Institution Act
●Company Act India 2013
●https://www.accprof.org/ACCP/ACCP/About_the_Field/Blo
gs/Blog_Pages/Corporate-Social-Responsibility-Brief-
History.aspx
 THANKS!
Does anyone have any questions?

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