The concept of Corporate Social Responsibility ("CSR") has gained prominence from
all avenues. Organizations have realized that Government alone will not be able to
get success in its endeavour to uplift the downtrodden in the society. For the
Company in the present context, CSR means not only investment of funds for social
activity but also integration of business processes with social processes.
The Company believes that an organisation's true worth lies beyond its business, and
is best reflected by the service it renders to the community and the society. An
organisation has a responsibility to sub-serve larger societal goals as they have the
ability to contribute for the welfare of the society. Social welfare and community
development is therefore at the core of the Company's Corporate Social
Corporate Social Responsibility is strongly connected with the principles of
sustainability; an organization should make decisions based not only on financial
factors, but also on the social and environmental consequences. Therefore, it is the
responsibility of the Company to practice its corporate values through its
commitment to grow in a socially and environmentally responsible way, while
meeting the interests of its stakeholders.
The Company recognizes that its business activities have wide impact on the
societies in which it operates, and therefore an effective practice is required giving
due consideration to the interests of its stakeholders including shareholders,
customers, employees, suppliers, business partners, local communities and other
organizations. The company endeavours to make CSR a key business process for
sustainable development. The Company is committed towards aligning with nature;
and has adopted eco-friendly practices..
The main objective of this 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.
In undertaking CSR Activities, the Company shall give preference to the local areas
wherein the Company operates or has its offices i.e. areas in the vicinity of its factory
/plant and offices.
The Company shall undertake only such CSR Activities:
A) as are identified as Focus Areas under this Policy and
B) as are permitted under the Applicable Laws.
The Company shall also consider international, national, or state level priorities/
objectives, while identifying CSR Activities.
The Company shall endeavour utmost transparency in selection, implementation,
monitoring and reporting of CSR Activities.
Every year the Company shall spend atleast 2% of its average Net profit as defined
under the Rules during the three immediately preceding financial years, on the CSR
Activities as per approved Annual Action Plan, authorised by the Board on the
recommendation of the CSR Committee.
The Annual Action Plan shall, inter alia, contain the following information with
respect to the CSR Activity proposed to be undertaken by the Company:
i) list of CSR Activities to be undertaken in the relevant financial year;
ii) local area where the CSR Activities are to be undertaken;
iii) manner of execution;
iv) modalities of utilisation of funds;
v) implementation schedule;
vi) monitoring and reporting mechanism; and
vii) details of need and impact assessment, if any.
The Board on the recommendation of the CSR Committee shall be the absolute
authority to update, alter, modify, amend, withdraw and replace the Annual Action
Plan for justified reasons.
The Company shall constantly strive to ensure strong corporate culture which
emphasizes on integrating CSR values with business objective. It shall also
pursue initiatives related to quality management, environment preservation and
social awareness, in the areas as detailed below:
- (i)Promoting health care including preventive healthcare and sanitation and
making available safe drinking water;
- (ii) Promoting education, including special education and employment enhancing
vocational skills especially among children, women, elderly and the differently
abled and livelihood enhancement projects;
- (iii) Ensuring environmental sustainability, ecological balance, protection of flora
and fauna, animal welfare, agroforestry, conservation of natural resources and
maintaining of soil, air and water;
- (iv) Contribution to the Prime Minister's National Relief Fund or any other fund set
up by the Central Government for socio–economic development and relief and
welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes,
minorities and women;
- (v) Rural development projects;
- (vi) Promote and participate in projects for cleanliness of Narmada river;.
- (vii) Promote education of girl child and the underprivileged by providing
academic support, assistance to schools, sponsorships for eradicating
- (viii) Emphasise on regular health checks and medical aid/ health care facilities with
special focus for the mother and child as well as the old aged persons of
surroundings and making available of safe drinking water;
- (ix) Promote and sponsor various sports activities and games organized by local
- (x) Promote and support local religious and cultural programmes.
- (xi) Other areas as may be notified by the Government from time to time.
- (xii) any activities or subjects specified in Schedule VII of the Act.
a) The Company shall have a Committee of Directors, which will recommend to the
Board for approval of the amount of expenditure to be incurred on the Corporate
Social Responsibility (CSR) activities to be undertaken during a particular financial
b) The investment in CSR activity should be project-based and for every project, the
time frame and periodic milestones should be finalized at the outset.
c) Project activities identified under CSR may be implemented by the Company or
by Implementing Agency . Implementing Agency could be made to work singly
or in tandem with other agencies. The Company shall either undertake the
project directly or preferably through Principal Implementation Agency and shall
to its best of its ability also ensure that the partners or vendors selected by the
Company or the Implementation Agency, satisfy the criterion specified by the
d) In case the Company undertakes any CSR Activity through any Implementation
Agency other than the Principal Implementation Agency, such Implementation
Agency shall satisfy the requirements prescribed under the Applicable Laws and
shall be approved by the Board.
e) Such specialized implementing agencies would include:
- Community based organization whether formal or informal.
- Elected local bodies such as Panchayats
- Voluntary Agencies (NGOs)
- Institutes/Academic Organizations
- Trusts, Missions, etc.
- Self-help groups
- Government, Semi Government and autonomous Organizations.
- Mahila Mandals/Samitis and the like
- Professional consultancy organizations
a) To ensure effective implementation of the CSR programmes approved and
undertaken by the company, progress on the CSR activities shall be reported
to the CSR Committee on a quarterly basis.
b) CSR initiatives of the company will also be reported in the Annual Report as
per the requirement of CSR Rules.
The Board of Directors of the Company shall mandatorily disclose the composition of
the CSR Committee, and CSR Policy and Projects approved by the Board on their
website, if any, for public access.