With companies gearing up to spend on social welfare initiatives, the Indian Institute of Corporate Affairs plans to offer certificate programme on CSR activities for working executives.
IICA, set up by the Corporate Affairs Ministry, is currently working on various aspects of the proposed CSR programme.
The proposal comes at a time when the new Companies Act, 2013, mandates spending on social welfare activities.
Considered as first of its kind, certain class of companies are required to shell out at least two% of their three-year annual average profit towards Corporate Social Responsibility (CSR) works.
The institute is planning to launch a certificate programme on CSR, which would help in providing a better understanding about the concept, an IICA official said.
The programme, spread over a period of nine months, is expected to be launched by the middle of next year.
According to the official, the course would target individuals who would be programme managers for CSR activities at companies.
The course would touch upon everything about CSR including sectoral issues and case studies, he added.
Under the new companies law, CSR spending would be applicable to companies having either net worth of Rs 500 crore or more; turnover of Rs 1,000 crore or more; or net profit of Rs 5 crore or more.
Going by the new norms, the two% spending on CSR is not mandatory but reporting about it is mandatory. In case, a company is unable to spend the required amount, then it has to give an explanation for the same.
Companies, for whom these norms are applicable, should set up a CSR Committee, comprising three or more directors and among them, at least one person should be an independent director.
A clearer picture on what constitutes CSR activity would emerge after the rules for the new Companies Act are finalised. The draft rules are expected to be made public tomorrow.