CSR IN India
CSR in India has traditionally been seen as a philanthropic activity. While the Tupperware has been traditionally engaged in doing CSR activities voluntarily, the new CSR provisions put formal and greater responsibility on companies to set out a clear framework and process to ensure strict compliance.
The new Companies Act 2013 (hereinafter referred to as ‘the Act’), has introduced the idea of CSR to the forefront and through its “Comply-or-Explain” mandate. It mandates qualifying companies to constitute Corporate Social Responsibility Committee to effectively monitor CSR activities of the Company. Further the Companies (Corporate Social Responsibility Policy) Rules, 2014 (hereinafter referred to as “CSR Rules”) lays down the framework and modalities of carrying out CSR activities which are specified in Schedule VII of the Act.
OBJECTIVE & SCOPE
The main objective of the CSR Policy is to lay down guidelines for Tupperware India Private Limited (hereinafter referred to as ‘the Company’) to make CSR as one of the key focus areas to adhere to TUPPERWARE Global strategy that focuses on making a positive contribution to society through high impact, sustainable programs.
This Policy covers current as well as proposed CSR activities to be undertaken by the Company and through other organizations/ NGO’s (duly authorized by the Company to this purpose) and examining their alignment with Schedule VII of the Act as amended from time to time. It covers the CSR activities which are being carried out in India only and includes a strategy that defines plans for future CSR activities.
The Company proposes to implement its CSR activities in various sectors stated hereunder:
- Eradicating extreme hunger and poverty
- Promotion of education
- Promoting gender equality and empowering women.
- Reducing child mortality and improving maternal health.
- Employment enhancing vocational skills.
- Promotion of health care programs and other activities/ contributions focusing on women’s health.
- Contribution to the Prime Minister’s National Relief Fund or any other fund set by the Central Government or the State Governments for socio- economic development and relief and funds for the welfare of the Scheduled Caste, the Scheduled Tribes, other backward classes, minorities and women, and
- Other areas as prescribed by Schedule VII amended from time to time.
- Employment Opportunities
- Entrepreneurship Skills
- Environment Protection
- Medical Aid
- Special Employment Opportunities for Women
- Vocational Skills.
The Company will review the sectors from time to time and make additions/deletions/clarifications to the above sectors.
Constitution of the Committee
Pursuant to the provisions of Section 135 of the Act, the Board of Directors has constituted the Corporate Social Responsibility (CSR) Committee. The Members of CSR Committee shall comprise of two members of the Board of Directors duly appointed by the Board vide resolution dated 05th June 2015 as under:
- Ms. Sugata Ghosh : Director
The membership of CSR Committee shall remain in force till the cessation of directorship from the Board or any express resolution to that effect.
Also following two other executive members shall constitute members of CSR Committee to assist in CSR Compliances:-
- Mr. Amit Jain: Head IT
- Ms. Noopur Jain: Head HR
Powers of the Committee
Following are the Powers of the CSR Committee:
- Formulate CSR Policy and recommend the same to the Board of Directors of the Company for approval
- Recommend CSR activities as stated under Schedule VII of the Act
- Approve to undertake CSR activities in collaboration with TUPPERWARE Group companies/NGOs, etc. and to separately report the same in accordance with the CSR Rules
- Recommend the CSR Budget
- Spend the allocated CSR amount on the CSR activities once it is approved by the Board of Directors of the Company in accordance with the Act and the CSR Rules
- Create transparent monitoring mechanism for implementation of CSR Initiatives in India
- Submit the Reports to the Board in respect of the CSR activities undertaken by the Company
- Monitor CSR Policy from time to time
- Monitor activities/charter of the Joint Working Group (JWG) who are authorized to ensure that the CSR activities of the Company are implemented effectively
- Authorize executives of the Company to attend the CSR Committee Meetings.
Frequency of the Meetings of the CSR Committee
The CSR Committee shall meet at least once in a quarter. The Quorum for the meeting should be two. Members of the CSR Committee can agree upon mutually regarding the time and place for the said meetings. The Members of the Committee may participate in the meeting either in person or through video conferencing or other audio visual means in accordance with the provisions of the Companies Act, 2013 and rules made there under from time to time. Minutes of the CSR Committee shall be placed before the Board for noting.
CSR BUDGET/CSR SPEND/ CORPUS
The Act mandates companies meeting the qualification criteria to allocate, in every financial year, at least two percent of the average net profits (before tax) of the company made during the three immediately preceding financial years, to be spent on CSR Activities that fall under purview of Schedule VII of the Act.
Net profit means profit more fully described under Rule 2(f) of the CSR Rules. The CSR expenditure shall include all expenditure including contribution to the corpus or on projects or programs relating to CSR activities approved by the Board of Directors on the recommendation of its CSR Committee but does not include any expenditure on an item not in conformity or not in line with activities stated under Schedule VII of the Act.
Failure to spend the CSR Money:
In case the Company fails to spend the above targeted amount in that particular financial year,
the Committee shall submit a report in writing to the Board of Directors specifying the reasons
for not spending the amount which in turn shall be reported by the Board of Directors in their
Directors’ Report for that particular Financial Year. Surplus arising out of the CSR initiatives
shall not form part of the business profits of the Company.
The corpus of CSR activity will include 2% of the average net profits, any income arising there from and surplus arising out of CSR activities.
In line with Schedule VII of the Act and the CSR Rules, the Company shall undertake CSR activities included in its Annual CSR Plan, as recommended by the CSR Committee at the beginning of each year. The Committee is authorized to approve any modification to the existing Annual CSR Plan or to propose any new program during the financial year under review.
Annual CSR Plan
The Annual CSR Plan is a yearly plan of CSR activities that would be placed before the Board of Directors of the Company based on the recommendation of its CSR Committee which outlines the following aspects of CSR initiatives of the Company:
- Tailor-made CSR projects depending upon allocated spend and geographical presence
- Partnering agencies/companies/firms
- Process Owners
- Project Proposals
- Targeted Beneficiaries & their key needs
- Alignment with Schedule VII
- Project Goals and milestones
- Activities and Timelines, including expected closure dates
- CSR Budget with projections
- Monitoring mechanism
- Progress reporting and frequency of reports
- Risks and mitigation strategies
- Any other information as may be required by the CSR Committee
Disqualifying Activities for CSR
- The CSR Rules prohibit the CSR projects and programs that are implemented by the Company to benefit of the employees of the Company and their families.
- The CSR activities implemented outside India also fall outside the purview of the Rules and hence CSR expenditure on such activities will not be considered for inclusion in the CSR Report.
- Any amount directly or indirectly contributed towards any political party under Section 182 of the Act shall not be considered as CSR Spend.
- Activities that are undertaken by the Company in pursuance of its normal course of business will not be considered as CSR activities.
- CSR Committee to prepare reports that are required to be placed before the Board.
Publication of the CSR Policy
As per the CSR Rules, the contents of the CSR Policy shall be included in the Directors’ Report and the same shall be displayed on the Company’s website, if any. Accordingly, the CSR Policy of Tupperware India is uploaded to its official website i.e. www.tupperware.co.in
POLICY REVIEW & FUTURE AMENDMENT
The Committee shall annually review its CSR Policy from time to time and make suitable changes as may be required and submit the same for the approval of the Board.