Corporate Social Responsibility NMIMS Apr 18

Corporate Social Responsibility

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Caselet:

Biobeauty Ltd‘s idea of responsible business is to use only natural ingredients sourced from all over the country, it believes that this will help protect the planet and the people depending on it. It is especially recognised for not testing its products on animals, other brand values are support community, defend human rights and activate self esteem. Last year it donated Rs. 50 lac to support various human rights and women empowerment organization across India.

According to its annual report of 2015-16 it now needs to comply with section 135 of the Companies Act 2013 and spend 2 % of its net profit on CSR. Hence this year Biobeauty will have to spend Rs 10 crore on CSR as per the mandate.

Biobeauty is deeply entrenched in working with the community through its supply chain as it sources majority of its raw material through self help groups (SHG) run and managed by women from rural and tribal areas. It has partnered with multiple NGO’s to help organize these rural/tribal women set up SHG’s and co-operative societies for growing and trading in herbs / flowers/ fruits / berries etc for which it is the captive buyer.

Q1. As CSR Manager you have been asked to come up with three new initiatives/projects from those listed under schedule VII of the Companies Act 2013 that the company can spend its CSR budget on. Design and develop a business plan around these 3 areas that you have selected covering the objectives (impacts expected), goals (target set), target stakeholder, geographical area where it will be implemented, time frame. Please be very specific and relevant to the company and section 135 requirements. (10 Marks)

Q2. The CEO at Biobeauty Ltd wants your opinion on whether to partner with an NGO or should Biobeauty work directly with the target stakeholders for the 3 new CSR initiatives /projects selected by you. Prepare a document of approx 1000 words for your CEO giving the advantages and disadvantages for Biobeauty in both the scenarios. (10 Marks)

Q3A. Companies Act 2013 requires Biobeauty Ltd to disclose its CSR Policy on its website as well as Annual Report of the company. Based on what you know so far about Biobeauty, frame a relevant and suitable CSR Policy, what is the key purpose of the policy and what are the CSR focus areas of Biobeauty Ltd. (5 Marks)

Q3B. As part of CSR Team you have been asked to write a report of approx 500 words, which will be published on the company’s website under “CSR at Biobeauty”, detailing the 3 new CSR initiatives/projects that Biobeauty has implemented in 2016-17. You must use the ones you shortlisted in Ans1. (5 Marks)