The Corporate Social Responsibility (CSR) is a Company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. As per the Companies Act 2013, as formulated section 135, companies (Corporate Social Responsibility) rules, 2014 and schedule VII, which prescribes the mandatory provisions for companies to fulfill their CSR.
The Board of Directors of every Company on which CSR is applicable shall ensure that the company spends in every financial year at least 2% of the average net profits of the company made during the 3 immediately preceding financial years and also CSR activities shall have to be displayed inthe company’s website.
The Government of A.P. desires to streamline the mobilization and utilization of CSR funds in an organized way making it mandatory to account for and be responsible for spending the funds to the earmarked utilitarian asset creation in Human development i.e., Education and Health sectors of local felt needs.
The Government constitutes two Committees, Apex cum Executive Committee headed by the Chairman by the Hon’ble Chief Minister, Hon’ble Minister for Finance & Planning, Chief Secretary and 3 Dignitaries as members and E.O Secretary, Planning Department as Member-Convenor.
Second at District Level Committee headed by the District Collector with District Officers of ZP CEO , Industry, Education, Medical & Health, Municipal Commissioner, Labour Commissioner as members and CPO as member convenor including a nominated local industry CEO as representative to advise, supervise, monitor and review the CSR activities and mobilization and utilisation of funds in identified sectors.
The Government has also decided to establish a separate wing to be headed by the Deputy Secretary /Joint Secretary/Special Secretary to Government under Planning Department as C.E.O, ‘Connect to Andhra’ to coordinate the CSR funds mobilization and ensure effective monitoring of the flow of CSR funds from the Industries/Companies in the State. The Department will also ensure utilisation of funds in Navaratnalu, Education & Health sectors.
The Apex Committee chaired by the Hon’ble Chief Minster shall make policies for ‘Connect to Andhra’ which will work under over all supervision and Guidance of the Planning Department.
The following are the details of the two committees along with respective terms and references (TOR).
1) Apex cum Executive Committee:
Apex cumExecutive Committee
Hon’ble Chief Minister Chairman
Hon’ble Minister for Finance & Planning Member
Chief Secretary Member
Principal Secretary, Industries Member
Dignitary 1 Member
Dignitary 2 Member
Dignitary 3 Member
E.O Secretary, Planning Member-Convener
TERMS OF REFERENCE (TOR)
Standard-setting through the provision of policy frameworks,
Regulate the corporate engagement with social responsibility.
Protecting and promoting social objectives in Corporate Sector.
Guiding the District Level committee.
2) District Level Committee:
Sl.No. Designation of the Officer Chairman/Member
1 District Collector Chairman
2 Chief Planning Officer (CPO) Member -Convener
3 Chief Executive Officer, ZP Member
4 District Education Officer (DEO) Member
5 District Medical & Health Officer (DMHO) Member
6 District Headquarters Municipal Commissioner (Nodal Officer) Member
7 General Manager, Industries Member
8 Asst. Commissioner, Labour Member
TERMS OF REFERENCE (TOR)
Identification of companies and Industries in the District.
Identification of eligible works as per local needs in the District.
Mobilisation and receipt of Funds from companies concerned.
Monitoring sanction and releasing of funds and proper utilisation.
Monitoring of timely and qualitative grounding of works in the district.
Monitoring the execution of works periodically.
Ensure to cover the SC, ST and Minority area or othervulnerable area (community) while recommending and sanctioning the worksby the CSR Funds.
Proper periodical reporting the Statues of CSR implementation to govt., • Review the statues of implementation of CSR implementation every Quarter.
Overall responsibility for supervision, monitoring and coordination for smooth CSR implementation.
The agency will mobilize resources from Corporates, NRTs and Individual donors for development of the state in three implementation modes:
i. Contribution to ‘Pool fund’ created for funding Navaratnalu’s flagship programmes.
ii. Contributions to specific Navaratnalu and related projects by company/ individuals, execution to be done by ‘Connect to Andhra’ or Government agencies with the approval of the Secretary of concerned Department.
iii. Contributions to specific Navaratnalu and related projects by Company/individuals, along with its execution through their CSR foundations or Partner NGOs.
The nature and organization structure of such special purpose agency considering the following objectives:
Creating a Non-profit society ‘Connect to Andhra’ by subsuming Smart Andhra Pradesh Foundation.
i. Duly modifying the objectives and Memorandum of Association to suit the vision of the Government to achieve the goals of Navaratnalu;
ii. The organization can take advantage of the 3-year prior experience in implementing projects while applying for CSR grants and is government by AP Societies act without any reporting obligations to central government agencies/departments.
The State/District Level Committees constituted at para (6) above shall be responsible for overall supervision monitoring and coordination of CSR implementation in the District in achieve the goals of Navaratnalu, Education & Health sectors.
Planning Department – Corporate Social Responsibility (CSR) – Creating a Non-profit society ‘Connect to Andhra’- Orders – Issued. G.O.RT.No. 405 Dated: 31-12-2019 Read the following: