CSR Concise Notes (Chapter-wise)
Chapter 1: Evolution and Concept of CSR
• CSR evolved from philanthropy to a strategic business responsibility.
• 1953: Howard Bowen introduced the term CSR.
• 1990s: Carroll’s Pyramid framework gained popularity.
• Modern CSR focuses on sustainability and environmental responsibility.
• Carroll’s Pyramid: Economic, Legal, Ethical, and Philanthropic responsibilities.
• Triple Bottom Line (John Elkington): People, Planet, Profit.
Chapter 2: CSR Rules and Regulations in India
• CSR made mandatory under Section 135 of the Companies Act, 2013.
• Companies must spend 2% of average net profit if they meet eligibility thresholds.
• Eligibility: Net worth ≥ ■500 crore, Turnover ≥ ■1000 crore, Net profit ≥ ■5 crore.
• Schedule VII includes activities like education, healthcare, poverty reduction, environment
protection.
• Non■CSR: political donations, employee-only benefits, normal business activities.
• CSR Committee recommends policy, monitors activities, and prepares action plans.
Chapter 3: Stakeholder Approach
• Stakeholder Theory by R. Edward Freeman (1984).
• Firms must create value for stakeholders, not just shareholders.
• Stakeholders include employees, customers, investors, suppliers, government, communities.
• Benefits: trust building, legitimacy, long■term sustainability.
• Poor stakeholder engagement may lead to protests, project failure, reputation damage.
Chapter 4: CSR and Sustainable Development Goals (SDGs)
• SDGs introduced in 2015 with target year 2030.
• Framework includes 17 goals, 169 targets, and 230+ indicators.
• Sustainable development: meeting present needs without compromising future generations.
• Three pillars: economic, social, environmental.
• CSR initiatives often align with SDGs to improve sustainability impact.
Chapter 5: CSR Implementation Framework
• CSR implementation depends on industry, culture, and risk profile.
• PDCI Model: Plan → Do → Check → Improve.
• Plan: assess CSR needs and identify stakeholders.
• Do: implement CSR initiatives and train employees.
• Check: measure performance and report progress.
• Improve: evaluate results and refine strategies.
Chapter 6: NGOs and CSR
• NGOs provide expertise and grassroots community connections.
• Benefits: improved credibility, community relations, measurable impact.
• CSR■1: mandatory NGO registration to receive CSR funds.
• CSR■2: annual CSR reporting filed by companies.
• Successful partnerships include initiatives like Nanhi Kali for girls’ education.