Corporate Social Responsibility (CSR) is an effective way to build trust and strategic relationship with public and local bodies. It is primarily to support society by contributing to the socio-economic progress and to ensure co-operation in the neighborhood community.
The objective of CSR initiative by FCI OEN is to impact the lives of the disadvantaged people residing near the factories and offices of the Company and engaging them in activities that improve their wellbeing. FCI OEN is also dedicated to support initiatives for protection of environment and ecological balance.
FCI OEN CSR Committee consists three directors. The Committee shall monitor the implementation of the CSR activities undertaken by FCI OEN periodically and ensure these activities are related to the Schedule VII of the Companies Act 2013 and amendments thereof.
GUIDELINES FOR SELECTION OF PROJECTS
- FCI OEN shall identify CSR projects or programs or activities to benefit people residing near its factories and offices. Apart from the projects identified by the Company, FCI OEN shall contribute to the projects/ activities of national interest which are specified the Schedule VII of the Companies Act 2013.
- The CSR projects or activities that benefit only the employees of the company and their families shall not be considered as CSR activities.
- FCI OEN shall collaborate with other companies for undertaking projects or programs or CSR activities in such a manner that the CSR Committee is in a position to report separately on such projects or programs.
- FCI OEN shall build CSR capacities of their own personnel as well as those of their implementing agencies through Institutions with established track record of at least three financial years but such expenditure, including expenditure on administrative overheads, shall not exceed 5% of total CSR expenditure of the company in one financial year.
- Contribution of any amount directly or indirectly to any political party shall not be considered as CSR activity.
- The CSR activities shall not include the activities undertaken in pursuance of normal course of business of the company, i.e. it has to be ensured that the activities included in the CSR Policy of the Company are related to the activities included in the Schedule VII of the Companies Act, 2013.
- The surplus arising out of the CSR Projects or programs or activities shall not form part of the business profit of the Company.
- The CSR expenditure shall include all expenditure including contribution to corpus, for projects or programs relating to the CSR activities.
- Expenditure incurred for the fulfillment of any Act/Statute or regulations (such as Labour Laws, Land Acquisition Act etc.) would not be considered as CSR activity.
FCI OEN shall identify, encourage and support projects which are focused on development of people, neighborhood community and environment on following areas:
- Promoting health care including preventive health care and sanitation and making available safe drinking water.
- Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and differently abled and livelihood enhancement projects.
- Setting up homes and hostels for women and orphans; setting up old age homes and day care centers.
- Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water.
- Training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports.
- Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Schedules castes, Schedules tribes, other backward classes, minorities and women.
- Contribution or funds provided to technology incubators located within academic institutions which are approved by Central Government.
- Rural development projects
- Any other programme that is listed in Schedule VII of the Companies Act 2013.
IDENTIFICATION OF PROJECTS
FCI OEN shall identify suitable projects in co-ordination with Local Self Governments (LSG) such as Panchayath, Municipality, Corporation and the District Administration.Suitable projects beneficial to public or community proposed by Non-Governmental Organization (NGO), National Bodies, Registered Charitable Trusts, Hospitals and Educational Institutions also shall be considered.
EVALUATION/ APPROVAL PROCEDURE OF PROJECTS
The projects proposed, based on the locations, shall be evaluated jointly by Plant Manager & HR Manager for the respective factories and Manager & Company Secretary for offices. Then the project would be re-evaluated by Manager and Company Secretary. After detailed evaluation, the project shall be forwarded to CSR Committee for approval.
Upon obtaining approval, Local Self Governments, District Administration and/ or other Agencies shall be intimated to commence the implementation of the project.
IMPLEMENTATION OF PROJECT
The project shall be implemented by the respective Local Self Governments through a Development Committee consisting of elected members from LSG. The Development Committee shall be headed by the President/ Chair Person or Ex Officio Secretary. FCI OEN shall interact with the Development Committee regularly till the full implementation of the project.
Whenever a proposal from an Agency other than Local Self Governments is accepted, FCI OEN shall request the Agency to nominate a Competent Person/ Team to interact with FCI OEN for effective co-ordination. FCI OEN shall interact with the Competent Person/ Team nominated by Agency regularly till the full implementation of the project.
The release of payment by FCI OEN for projects shall be done stage-wise. Stages of payment of each item shall be jointly decided between FCI OEN and the respective Development Committee or Competent Person/Team. The Local Self Government or Agency shall forward bills to FCI OEN duly certified by the Competent Authority. FCI OEN shall release payment after physical verification and ensuring progress of implementation of the project.
FCI OEN shall spend, in every financial year, 2% of the average net profit of the Company made during the three immediately preceding financial years.
Status Report of all CSR projects shall be submitted to the Board quarterly.