Page 45 - Banking Finance September 2019

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sections or underprivileged sectors. The focus areas notified under CSR activities. However the company CSR committee
under the section 135 of the companies act 2013 and may identify areas other than the stated above. Company
companies corporate social responsibility policy rules 2014 has to give preference to the local area and areas around
are as under: where it operates for spending the amount under CSR
1. Eradicating extreme hunger, malnutrition and poverty activity.
2. Promoting education, special education, employment
enhancing skills among children, women, etc. The company can meet the CSR obligations by implementing
activities on its own or through a third party, such as a
3. Improving mental health
society, trust, charitable foundations etc. as per purposes
4. Promoting gender equality, empowering women, defined under company act.
setting up old age homes, Day care centers etc.
5. Reducing child mortality Benefits of CSR activities:
6. Promotions of road safety, Driver's training
Benefits to Company
7. Training to enforcement personnel
1. Enhanced Brand and Reputation - CSR improves the
8. Promoting health care including preventive health care
image of the organization. When an organization
9. Vocational skills livelihood enhancement projects carries out CSR activities, it is telling the community
10. Consumer education and awareness program members that it is a friend of the community. This
11. Conservation and renovation of school building and improves the impression people have about the
classrooms as promoting education corporate existence of the organization.
12. Disaster relief i.e. medical aid for promoting health, 2. Increased sales and customer retention - Company
food supply for eradicating hunger ,poverty or products and services are perceived by the society. The
malnutrition, supply of clean water, sanitation etc in company product and business first satisfy customer's
case of any disaster key buying criteria such as price, quality, taste, safety
and convenience which create trust between the
13. Any assist in ensuring environmental sustainability,
ecological balance, protection of flora & fauna, animal company and clients. It fosters strong working
welfare, agro forestry, conservation of natural relationships with both existing and new clients because
resources and maintaining quality of soil air and water they understand that the company is a partner not only
for the profit of the organization but also to support
14. Employment enhancing vocational skills
their public value.
15. Relief and funds for the welfare of the Scheduled caste,
3. Enhanced employee acquisition and retention -
the Scheduled Tribes, other backwards classes,
Robust CSR framework helps the company to attract
minorities and woman and such other matters as may
the potential future employees. There is a common
be prescribed.
perception of the public that if company is working well
16. Contribution of funds provided to technology incubators for the society so it can be good for employee also Viz.
located within academic institutions which are Tata, Wipro, Infosys, Private and public sector banks etc.
approved by the central government It also helps the company to attract or retain the talent
17. Contribution to the Prime Minister's National Relief employees by offering work life balance, positive
Fund or any other fund set by the Central Government working conditions, culture and flexibility to work.
or State government for socio -economic development
4. Improved relation with the investment community
18. Rural Developments projects and better access to Capital - The companies that
19. Contribution to the Swachh Bharat Kosh embrace the essential qualities of CSR outperform their
20. Contribution to the Clean Ganga Fund counterpart that do not use features of CSR. Thus CSR
activity of the company addressing the ethical, social
All these activities are a few examples of CSR activities. It and environmental responsibilities helps the company's
means that all those activities which are environment perspective in raising the capital in comparison with
friendly, socially acceptable by the people and society comes others.

BANKING FINANCE | SEPTEMBER | 2019 | 45