Need for CSR
It is apparent, of course, that any action, which an organisation undertakes, will have an effect not just upon itself but also the external environment within which that organisation resides. In considering the effect of the organisation upon its external environment it must be recognised that this environment includes both the business environment in which the firm is operating, the local social environment in which the organisation is located & the wider global environment. This effect of the organisation can take many forms, such as,
• The utilization of natural resources as a part of its production process.
• The enrichment of local community through the creation or employment opportunity.
• Transformation of the landscape due to raw material extraction or waste product storage.
• And more recently the greatest concern has been with climate change & the way in which the emission of greenhouse gases are exacerbating this.
It can be seen therefore from these examples that an organisation can have a very significant effect upon its external environment & can actually change that environment through its activities.
Any organisation operates in a Social Environment & the Corporate Social Responsibility (CSR) is the way & means through which the Corporate can repay the obligations which the society has made to it by contributing the resources in its various forms as required for the efficient operation of the business.
Corporate Social Responsibility is strongly connected with the principles of Sustainability; an organisation should make decisions based not only on financial factors, but also on the social & environmental consequences. Therefore, it is the core corporate responsibility of SMI Coated Products Private Limited to practice its corporate values through its commitment to grow in a socially & environmentally responsible way, while meeting the interests of its stakeholders.
“CSR is a concept whereby companies integrate social & economical concerns in their business operations & in their interaction with their stakeholders on a voluntary basis.”
SMI Coated Products Private Limited is vigilant in its enforcement towards corporate principles, which the Government of India has mandated through Companies (Corporate Social Responsibility) Policy, 2014 & is committed towards sustainable development & inclusive growth. The company endeavors to make CSR a key business process for sustainable development. It constantly strives to ensure strong corporate culture, which emphasizes on integrating CSR values with business objective. It also pursues initiatives related to quality management, environment preservation & social awareness.
The Board of Directors of SMI Coated Products Private Limited has constituted a CSR Committee consisting requisite number of directors. The committee shall carryout the legacy of the Company in promoting education & philanthropy, by establishing a transparent monitoring mechanism for implementing the CSR activities & projects, to be undertaken by the Company.
The Committee has decided that it shall, to achieve its objective,
• Formulate a CSR policy of the Company, indicating the activities it would undertake, in line with the prevailing rules/ laws, etc.
• Indicate the amount it would like to spend in the above stated activities & recommend to the Board.
• Monitor the mechanism of CSR activities in transparent manner & review it from time to time
Considerations of CSR Policy
The CSR policy is broadly framed keeping in view the following considerations -
• Scholarship to brilliant students
• Relief for any natural disasters & calamities
• Conservation of natural resources including soil, air, water, animals etc.
• The Company reserves the right to modify, cancel, add, or amend any of the above rules/guidelines.
• Any or all provisions of the CSR policy shall be subject to revision/amendment in accordance with the guidelines on the subject as may be issued from Government of India, from time to time.