The concept of Corporate Social Responsibility is not novel. Influential businesses and stalwarts have given back to the society in the form of philanthropic endowments.

Charitable philanthropy gave way to mandatory allocation for good when the Companies Act was amended to include a clause on compulsory Corporate Social Responsibility.  Under this, companies earning profits of Rs. 5 crore or more or those having an overall turnover of over Rs. 1000 Crores, must allocate at least 2% of their net profits to fund projects aimed at social development.

Indian Institute of Corporate Affairs has estimated that around 6000 companies will be taking up CSR work as mandated by the law. Many of these have no prior experience in working with social sector initiatives. Around 20,000 crore rupees is expected to be available for social sector spending as part of the mandatory ‘2% law’.

PricewaterhouseCoopers (PwC) has come out with a ready-reckoner of sorts for the Confederation of Indian Industry (CII) - ‘Handbook on Corporate Social Responsibility in India’. Introducing the concept of CSR, the handbook provides details about guidelines framed at the global level and also clarifies the current scenario in India.

The handbook serves as a guide to help companies plan, execute and monitor their CSR projects, explaining in detail the purpose and processes involved. A separate section has been dedicated for Small and medium enterprises (SMEs) to tailor the design in accordance to their limitations and needs.

Please click on the attachment below to download the Handbook.