Table of Contents
SCOPE OF CORPORATE SOCIAL RESPONSIBILITY POLICY
Undertaking CSR Activities
Location of CSR efforts
Composition of the Corporate Social Responsibility Committee
Responsibilities of CSR Committee:
CSR through registered trust, society otherwise
Monitoring and Reporting
Surplus of CSR Projects
“Corporate Social Responsibility” (CSR) is a way of conducting business, by which corporate entities visibly contribute to the social good. The essence of CSR is to integrate economic, environmental and social objectives with the company’s operations and growth. CSR is the process by which an organization thinks about and evolves its relationships with society for the common good and demonstrates its commitment by giving back to the society for the resources it used to flourish by adoption of appropriate business processes and strategies.
The main objective of CSR policy is to make CSR a key business process for sustainable development of society. In its endeavors to mutually achieve the said objective, the Act stipulates the provisions regarding mandatory adherence to the Corporate Social Responsibility practices by the prescribed classes of companies.
Haier CSR Policy intends to:
2.1 To establish a guideline for compliance with the provisions of Regulations to dedicate a percentage of Company‘s profits for social projects and for Corporate Social Responsibility (CSR) Activities of Haier Appliances India Private Limited.
2.2 To lay down the guidelines for the company to evolve its relationship with society by way of social and economic contribution and by giving back to the society for the resources it used to flourish by adoption of appropriate business processes and strategies.
2.3 To prepare list of activities, programmers and projects to be undertaken during the implementation year, specifying modalities of execution and implementation schedules for the same.
The policy would pertain to all activities undertaken by the Company towards fulfilling its corporate social responsibility objectives. The policy would also ensure compliance with section 135 of the Companies Act, 2013 (“The Act”) and would include the activities as covered under Schedule VII to the Act and the Companies (Corporate Social Responsibility Policy) Rules, 2014 and as amended from time to time.
The Company will support programs and activities as mentioned under Schedule VII of the Companies Act, 2013 and also such other activities including but not limited to the following:
4.1 Eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water;
4.2 Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently-abled and livelihood enhancement projects;
4.3 Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centers and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
4.4 Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water [including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga;
4.5 Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional art and handicrafts;
4.6 Measures for the benefit of armed forces veterans, war widows and their dependents;
4.7 Training to promote rural sports, nationally recognised sports, paralympic sports and olympic sports;
4.8 Contribution to the prime minister's national relief fund or any other fund set up by the central govt. for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women;
4.9 Contributions or funds provided to technology incubators located within academic institutions which are approved by the central govt;
4.10 Rural development projects;
4.11 Slum area development.
Haier will undertake its CSR Activities, approved by CSR Committee and as per Authorization Matrix of the Policy.
The CSR Committee will decide on the locations for CSR Activities.
Composition of the Corporate Social Responsibility Committee
CSR Committee shall consist of following members;
Mr. Liang Haishan , Member [ Director]
Mr. Song Yujun, Chairman [MD]
Mr. Eric Braganza, Member [Whole Time Director]
Mr. Somesh Agrawal. Secretary [Company Secretary]
The responsibility of CSR Committee includes:
8.1 Formulating and recommending to the Board of Directors the CSR Policy and indicating activities to be undertaken.
8.2 Recommending the amount of expenditure for the CSR activities.
8.3 Monitoring CSR activities from time to time.
The Board of Directors of the company may decide to undertake CSR activities approved by CSR committee through a registered trust, registered society or a company established by the company of its holding or subsidiary or associate company under section 8 of the Act or otherwise. Provide that:
· If such trust, society or company is not established by the company or its holding or subsidiary or associate company, it shall have an established track record of three years in undertaking similar projects or programs;
· The company has specified the projects or programs to be undertaken through these entities, the modalities of utilization of funds on such projects and programs, and the monitoring and reporting mechanism.
The Company’s CSR projects and programs shall be overseen and monitored by separately CSR committee members and Marketing Head.
11.1Under the direction of the Committee, the Company shall implement a monitoring mechanism over the Company’s CSR projects and programmes. Such monitoring mechanism shall, among other things, make transparent the manner and details of the implementation of all CSR projects and programmes undertaken by the Company.
11.2 The Board shall receive yearly reports from the Committee with the assistance of Legal and Marketing HOD on the status of the Company’s implementation of specific CSR projects and programmes.
The Company shall seek to spend, in every financial year, at least 2 per cent of the average net profits of the Company made during the three immediately preceding financial years in accordance with the requirement of section 135 of the companies act 2013 and shall be such sum as may be prescribed by the Companies Act 2013 or rules made thereunder from time to time
As per section 135 of the Companies Act, the Company will report reasons for under spending of the allocated CSR budget of the current financial year in the template provided by the Ministry of Corporate Affairs. This reporting will be done Annual Report and signed off by the Board of Directors.
The surplus, if any, arising out of CSR projects or programmes or activities shall not form a part of the business profit of the company and will be ploughed back into CSR activities.
Note: Further, any or all provisions of the CSR Policy would be subject to revision/amendment by the Board of Directors of the Company based on the recommendation of CSR Committee or else in accordance with the guidelines on the subject as may be issued, from time to time.