👉🏻Understanding how to calculate your CSR mandate is crucial for businesses to align their efforts with regulatory requirements and company values. Let’s explore the steps to navigate this journey:
1.Know Your Applicability:
Determine if your company falls under the CSR mandate. Section 135 of the Companies Act, 2013, mandates CSR for certain companies meeting specific financial criteria.
2.Calculate Your CSR Budget:
Allocate a minimum of 2% of your average net profits made during the preceding three financial years for CSR activities. This 2% law sets a benchmark for businesses to invest in social and environmental causes aligning with their values.
3.Define Your CSR Objectives:
Identify the social and environmental issues that resonate with your company’s mission and values. Set specific and measurable CSR objectives to guide your initiatives effectively.
4.Conduct a Materiality Assessment:
Conduct a materiality assessment to identify the most significant issues where your CSR efforts can create a lasting impact.
5.Allocate Resources Wisely:
Allocate resources wisely to different initiatives, considering potential impact and alignment with your CSR objectives.
6.Set Clear KPIs:
Set clear Key Performance Indicators (KPIs) to measure the success of your CSR initiatives and track progress effectively.
7.Engage and Collaborate:
Engage employees, customers, suppliers, and local communities to actively participate in your CSR journey. Collaboration enhances the social value of your initiatives.
8.Monitor, Report, and Communicate:
Regularly monitor your CSR activities, measure them against established KPIs, and communicate transparently to showcase progress.
9.Embrace Continuous Improvement:
Continuously assess and improve your CSR initiatives to maximize their impact and create meaningful change.
📚 Making an Impact through CSR
By adhering to the 2% law, companies can drive positive change in education, healthcare, environmental sustainability, poverty alleviation, and more.
🤝 Partnering with Right Dots
For guidance on effective CSR strategies, Right Dots can support you. Let’s come together and embrace the power of CSR to shape a better future for everyone.