Fiinovation CSR is a self-moving business characteristic that helps organizations socially liable. With CSR training, companies can be aware of the kind of influence they have on different sections of the society - economic, social & environmental. To employ CSR in the business means that the company is contributing to society in a beneficial way rather than in a negative manner.
The aim of CSR is to give back to society and bring positive social values. Companies can show CSR in the form of donations to charities, employee volunteering, eco-friendly production process, ethical labour practices and more. It aims at the protection of the local and global environment. It ensures respect for human rights. It results in avoiding bribery and corruption. It promotes adherence to labour standards by companies and their business partners.
CSR may be based within the human resources, business development or public relations departments of an organisation, or maybe a separate unit reporting to the CEO or the board of directors.
Importance of CSR :
1. Brand Image - A well-managed CSR program can help increase brand equity, awareness and resonate with strong values.
2. Increase in Sales - Companies that lead with a purpose are perceived positively by the customers.
3. Employee Empowerment - CSR initiatives incorporate volunteering programs which foster values such as empathy and loyalty
4. Cost Reduction - Responsible companies have found new technologies that have reduced the operating costs.
In April 2014, India became the first nation in the world to make CSR mandatory, following an amendment to the Companies Act, 2013. Companies can spend their profits in areas such as education, poverty and hunger, as a part of CSR assent. With the ongoing CoVID-19 global pandemic, the Ministry of Corporate Affairs has suggested that the businesses' contribution against the pandemic will be considered credible under the CSR rules. As per the regulations the company will set aside, for annual CSR activities, an amount equal to 2% of the average net profits of the Company made during the three immediately preceding financial years
The amendment notified in the Companies Act, 2013 requires companies with a net worth of INR 5 billion (US$70 million) or more, or an annual turnover of INR 10 billion (US$140 million) or more, or net profit of INR 50 million (US$699,125) or more, to spend 2 per cent of their average net profits of three years on CSR. Businesses must note that the expenses towards CSR are not eligible for deduction in the computation of taxable income. If a company was unable to fully spend its CSR funds in a given year, it could carry the amount forward and spend it in the next fiscal, in addition to the money allotted for that year. Every company should set up a CSR committee which would formulate the CSR policy. Organizations shall go for areas around where it functions.
If the company fails to follow the provisions of the Companies Act, 2013, then according to Section 134 of the Companies Act ;
• The company shall be punished with a fine of Rs 50,000 to Rs 25,00,000.
• Officers who are defrauded can be imprisoned for 3 years and pay a hefty amount of fine.
• Companies will have to give details about the spending of money and they have been given a three-year window to adhere.
In order to show compliance towards CSR, the Ministry of Corporate Affairs has taken the following initiatives :
• National CSR data portal which will ensure transparency towards CSR activities of businesses.
• Show cause notices to the companies.
•Unspent CSR amount to be transferred to designated Central Government Funds
The current government has tightened the laws for CSR as several companies and NGOs were caught violating the policies. Responsibility should be imparted as fundamental behaviour for any progressive society. And hence the CSR law. It has done so that businesses don't take undue advantage of the environment, improve customer satisfaction, and help better investor's morale.
Innovative Financial Advisors Pvt. Ltd. (Fiinovation) is a global consulting firm operating in multiple disciplines of the social development sector with emphasis on Corporate Social Responsibility (CSR) and Sustainability. Fiinovation offers end to end CSR consulting services and simplified solutions that has helped various corporations channelize their resources for the upliftment of community on societal, economic and ecological aspects in accordance to their CSR charter. Since 2008, Fiinovation has grown phenomenally and has made a benchmark in the sector through its service quality. It has been able to bridge the gap between businesses and communities through value-based CSR programmes in association with credible civil society organizations on pan India basis in the field of health, environment, education, and livelihood
Fiinovation CEO: Dr Soumitro Chakraborty, Chief Executive Officer of Innovative Financial Advisors Pvt. Ltd. (Fiinovation), was conferred with ‘CEO of the year’ award at the 8th World CSR Congress held in Mumbai on February 18.
The World CSR Congress this year focused on the integration of Sustainable Development Goals (SDGs) in corporate strategies, innovation, and strategic alliances. The award recognizes fiinovation projects exemplary work in the social development sector and noteworthy CSR and sustainability programmes.
Fiinovation Delhi NGO address - 24/30, Ground Floor, Okhla Industrial Estate Phase 3 Rd, New Delhi- 110020.
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