www.pwc.in

Focal areas for CSR under section 135• Eligiblecompaniesarenowrequiredtoreportontheir2%spendorexplainthereasonsintheeventofnon-spending

• Establishesaccountabilityfortheboard(theCSRcommittee)

• Requirescorporatestoplan,structureanddocumenttheirCSRpolicy

Points to ponder

Is your CSR aligned with the Companies Act, 2013?

Do you need partners in executing your enhanced CSR commitments?

How will you scale up your CSR efforts?

Will your current CSR structure and processes enable you to be effective?

What is your long-term strategy towards CSR? How will it create societal and business value?

How will you measure the impact of your CSR spend?

Above and beyond CSR compliance

A new paradigm for social engagementThe Companies Act, 2013, requires corporates to strategise, capacitate, implement and monitor their social investments from a closer lens.

TheCompaniesAct,2013,makesCSRspendingmandatoryformidtobig-sizedcorporates,andhasnowdefinedtheregulatoryboundariesgoverningCSRactivities,bybringinginmoretransparencyandaccountability,rightfromtheboardlevelThisnecessitatesanewerlevelofalacrityandflexibilityonpartofthecorporatestogearupandrespondtothechallengesposedbysection135oftheAct.

WiththereleaseofthefinalrulesinFebruary2014,mandatedcorporatesnownecessarilyhavetoformaCSRcommittee,structuretheirCSRpolicy,andshareitonpubliclyaccessibledomains,definetheirCSRprogrammes,spend,monitorandthenreportonthesame.

How we can assist

Wecanhelpyouprepare,implementandmonitorasection135compliantandcohesiveCSRpolicythatisneed-based,strategic,integratedwithyourvaluechain,iterativeandgearedtowardsbusinessresponsibilityreporting.Basedonourexperienceandresearch,wecanoffersignificantvaluetoourclients(atdifferentstagesoftheCSRlifecycle),withcustomisedservicesforplanning,assessment,implementationandevaluation,etc.

www.pwc.in© 2014 PricewaterhouseCoopers Private Limited. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Private Limited (a limited liability company in India having Corporate Identity Number or CIN : U74140WB1983PTC036093), which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which is a separate legal entity.

AK 192 - April 2014 Above and beyond CSR compliance.inddDesigned by Brand and Communication, India

Contact

Sudhir Singh DungarpurExecutiveDirector,CSRComplianceEmail:sudhir.singh@in.pwc.comPhone:+911243306006

Neeraj GuptaExecutiveDirector,RiskAdvisoryServicesEmail:p.neeraj.gupta@in.pwc.comPhone:+911243306010

Prashant Vikram SinghExecutiveDirector,SustainabilityEmail:prashant.vikram.singh@in.pwc.comPhone:+911244620814

• Process documentation• Provide assistance for the preparation

of the following: − Director’s report − Business responsibility reporting, etc

• Disseminate learning experiences (knowledge management)

• Obtain statutory and regulatory clearances for the new CSR entity

• Identify and conduct due diligence on potential implementing partners

• Provide capacity building support to CSR teams and NGO partners

• Monitor and report on CSR expenditures• Track and evaluate mid-term progress or

end of term impact (‘evaluative’ SROI, etc)

• Define a governance framework, that lays down milestones for a result-based management approach to CSR planning and management (the to-be design)

• Develop annual operating CSR plans and budgets, along with detailed implementation plans and strategies

• Prepare need-based capacity building modules

• Constitute the CSR committee• Benchmark and review the best

practices (from programme as well as functional perspective)

• Help formulate and draft the CSR policy• Formulate systems and protocols for

CSR preparedness (including MIS, standard operating procedures, etc)

• Advise in light of the Companies Act, 2013 and applicable CSR rules

• Conduct a need assessment to identify local priorities (as-is analysis)

• Help assess the overlap of business goals and CSR goals

• Define the optimal CSR investment mix [through ‘forecastive’ social return on investment (SROI), cost benefit analysis (CBA) etc]

PreparePerform

Publish

Plan

Policyand

Process

Our approach to CSR planning and management