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The Ministry of Corporate Affairs, Government of India has launched the National CSR Exchange Portal as part of its aim to create an interactive platform for CSR stakeholders. The National CSR Exchange Portal would act as an online marketplace for PAN-India social welfare initiatives to enable stakeholders such as implementing agencies to list their active projects and businesses to select programs for CSR spending based on their preferences. Let us have a look at the National CSR Exchange Portal – Brief History, Requirements & FAQs.
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Origin of National CSR Exchange Portal
The 2018 recommendations of the High-Level Committee on Social Responsibility served as the basis for the development of the stock exchange portal. The creation of the portal required the creation of an advisory and technical committee. Various CSR stakeholders were represented on the committee, including CSR practitioners, technical experts, and civil society organizations. The High-Level committee intimated to the public about BSE Sammaan. It is a project of the MCA think tank and included the Indian Institute of Corporate Affairs, the Confederation of Indian Industry, and the Bombay Stock Exchange. It included features similar to those planned for the CSR National Stock Exchange Portal.
History of CSR in India
Corporate Social Responsibility (CSR) has been a buzzword in India since the enactment of the Companies Act of 2013 (the “Act”). The law required private firms to contribute to welfare for the first time in the country’s history. However, have you ever wondered how the phrase “CSR” came to be? In 1953, the phrase “Corporate Social Responsibility” was used first. It was first used by the American economist Howard Bowen in his book “Social Responsibilities of the Businessman” and is often referred to as the father of CSR.
Although there are centuries-old reports of shops giving to charity. Corporate and philanthropic leaders felt they had a unique duty to society because they benefited from it, but it wasn’t like “CSR” like it is now; most donations were made through religious organizations to help the poor. There is enough anecdotal information about corporates setting up universities, hospitals, etc. in India to give us an idea of what is going on.
Requirements for National CSR Exchange Portal
Most corporates do not have a core area of competence in social development, so they usually hire an implementing agency to carry out projects. The need to find suitable implementing agencies for CSR operations is one of the ongoing challenges for businesses (IA). This exchange portal will save companies transaction costs by helping them find the best implementing agencies for the successful implementation of their CSR projects.
The National CSR Exchange Portal will also help to solve the problem of the “inability to discover relevant projects”, which is often cited by companies as the reason why they cannot fulfill their CSR obligations. This problem is addressed by the CSR Exchange Portal, which offers a platform for browsing the proposals of various implementing agencies (or “IAs”). The portal allows us to list their CSR initiatives to raise funds from various corporate donors.
Many non-governmental organizations (or “NGOs”) seek funding for their initiatives, which may fall under the CSR category. The National CSR Exchange Portal will facilitate collaboration between businesses and implementing agencies to advance national improvement.
Why the CSR National Stock Exchange Portal?
Social development is not the main expertise for most companies, most companies choose an implementation agency for project implementation. One of the recurring problems for companies in carrying out CSR activities has been the identification of suitable implementing agencies (IAs). This Exchange Portal will help companies identify suitable implementing agencies for the successful implementation of their CSR projects, which will reduce their transaction costs.
The National CSR Exchange Portal also helps to overcome a common challenge cited by companies in not meeting their CSR commitments, the “inability to find suitable projects” based on their CSR policy. The CSR Exchange portal addresses this issue by providing a platform to view projects proposed by various Implementing Agencies (IAs). It will enable them to list their CSR projects for corporate fundraising.
There are a large number of non-governmental agencies (NGOs) looking for funding for their projects that could fit into the CSR field. The National CSR Exchange Portal will help connect corporates and implementing agencies to work for the betterment of the country.
Provisions for CSR in India
The concept of Corporate Social Responsibility in India is governed by Section 135 of the Companies Act, 2013 (‘the Act’), Schedule VII of the Act and the Companies (CSR Principles) 2014, which lays down the criteria for assessing CSR eligibility of a company, Implementation, and reporting of their CSR policies.
How to register on the National CSR Exchange Portal as a corporation?
- Enter a valid Company Identification Number (CIN) and click search.
- Confirm the details shown on the screen.
- You will receive a Time Password (OTP) on your registered email ID.
- Enter the OTP in the field.
- Create a username and password.
- Confirm your password.
- Click Submit.
Final words
The enactment of the Companies Act 2013 by India’s Ministry of Corporate Affairs was one of the world’s biggest experiments in making CSR a mandatory provision by making it a legal obligation for companies to engage in CSR projects aimed at social welfare activities. This makes India the only country to regulate and mandate CSR for some select categories of companies registered under the Act. This CSR initiative will push the nation towards sustainable development goals and public-private partnerships in transforming India.
FAQ’s
- What is the National CSR Exchange Portal?
The National CSR Exchange Portal is an initiative of the Ministry of Corporate Affairs to connect businesses, beneficiaries, and implementing agencies. This Exchange Portal will help in building a more robust system for implementing Corporate Social Responsibility. - Who can register on the National CSR Exchange portal?
Registered companies and registered implementing agencies can register on the portal. - Who are the registered implementing agencies?
Registered Implementing Agencies are those implementing agencies that are registered on the MCA21 portal and have a valid CSR Registration Number (CRN). - Who are registered companies?
Registered corporations are those corporations that are registered on the MCA21 portal and have a valid Corporate Identification Number (CIN).
- I am not a company or an implementation agency. Can I register?
No. Only corporations and implementing agencies can register on the portal.
- What is a Request for Proposal (RFP)?
A Request for Proposal (RFP) is a process where a registered company creates a request for free funding for a project on this portal.
- What is a Request for Funds (RFF)?
Request for Funds (RFF) is a process where the Implementing Agency creates a request for funding for a project on this portal.
- What are the registration fees on this portal?
There is no fee to register on the National CSR Exchange Portal. - Do I have to provide any documents when creating a profile?
Yes, you need to upload the CSR policy document which should include the following details:- Contact person detail
- CSR budget for the year
- Award details (if any)
- How can I edit my profile information like address and email id?
Basic company information like company address, email id, etc. cannot be edited on the portal. Changes to master information can only be made via MCA21.
