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CS Professional · CSR and Social Governance · Contribution of Non-Corporate Entities in Social Governance

A company wishes to channel part of its CSR spend to strengthen a federation of women SHGs in a district by funding skill training and a common processing unit, with the federation as the implementing partner. Which consideration is most relevant for the company's CSR compliance?

Skill training and livelihood support through an SHG federation are eligible CSR activities, but the company must check that the implementing agency meets the CSR Rules' eligibility requirements and must monitor how funds are used. Unconditional cash gifts or a blanket bar on such partners are incorrect.

  1. ATraining and livelihood projects are eligible activities, but the company must verify the implementing agency's eligibility and monitor utilisationCorrect
  2. BOnly direct company employees may implement CSR, so SHG federations are barred
  3. CCSR funds to SHGs are valid only if given as unconditional personal cash to members
  4. DLivelihood enhancement is excluded from CSR activities altogether

Explanation

Livelihood enhancement and skills training are within Schedule VII activities. Where an external entity implements, the company must ensure it meets the prescribed eligibility and registration conditions under the CSR Rules and monitor utilisation. Personal cash handouts or a blanket bar on SHG partners are incorrect.

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