National Scheduled Castes Finance and Development Corporation - Corporate Social Responsibility & Sustainability Policy
The National Scheduled Castes Finance & Development Corporation (NSFDC) was incorporated on 8th February 1989 as a Company 'not for profit' under the Companies Act, 1956 (now under Section-8 of Companies Act, 2013). NSFDC’s vision is “to be the leading catalyst in systematic reduction of poverty through socio-economic development of Scheduled Castes living below double the poverty line, working in an efficient, responsive and collaborative manner with channelizing agencies and other development partners”. NSFDC has been providing concessional loans to its target group for income generating activities through State Channelising Agencies (SCAs) and other Channelising Agencies with an objective to eradicate poverty and promote prosperity. Thus, the major activity of the Corporation falls under Schedule-VII of the Companies Act, 2013.
The corporation has been sponsoring other activities from its “Excess of Income over Expenditure” for the welfare of its target group that include Skill Development Training, Awareness campaign and Marketing Assistance. NSFDC has also been making concerted efforts to leverage CSR funds from profit making CPSEs for organising Skill Development Training for the target group primarily in the operational areas of the donor CPSE.
- CSR&SD Objectives
In alignment with vision of the corporation, NSFDC, through its CSR&SD initiatives, shall continue to undertake projects for systematic reduction of poverty through socio-economic development of Scheduled Castes living below double the poverty line. This Policy shall be called the NSFDC - Corporate Social Responsibility & Sustainability Policy and shall come into force w.e.f. the 1st April, 2016.
The aim of the Policy is to ensure that the Corporation becomes a socially responsible corporate entity by contributing towards promoting sustainable livelihoods and improving the quality of life of socio-economically backward communities and society at large.
Being a Socially responsible Corporate entity, NSFDC would take initiative to:
- Promote inclusive growth and equitable development in society while assigning importance to regional and gender disparity through development programmes and other innovative initiatives for socio-economically backward communities and society at large.
- Assign high priority to environmental sustainability and climate change issues while assisting the target group to reduce poverty by promoting green business initiatives; and
- Promote organizational integrity and ethical business practices through transparency in disclosure and reporting procedures.
- Strategic Focus
Reducing and ultimately eliminating poverty among target group is a fundamental aspiration of the NSFDC. NSFDC shall provide assistance to CSR&SD projects that promotes sustainable economic growth of the Scheduled Castes living below double the poverty line. NSFDC shall promote economic growth that focuses on addressing income, gender and regional disparities along with environmental sustainability. NSFDC shall use innovative approaches and partnerships for realising these objectives. In addition, measures will be adopted towards improving internal capacities and efficiencies for the delivery of services and enhancing development effectiveness of the NSFDC and its CSR partners. NSFDC shall join hands and the resources for undertaking joint ventures for greater social impact. NSFDC shall make efforts to take up long gestation high impact projects in areas with high concentration of Scheduled Castes from the budget allocated for the CSR&SD activities. NSFDC will continue to leverage CSR funds from profit making CPSEs fore CSR&SD activities.
- CSR&SD Committee of Directors
The CSR&SD projects will have a multi-tiered governance mechanism. The Corporate Social Responsibility Committee shall- (a) Formulate and recommend to the Board, a Corporate Social Responsibility & Sustainability Policy which shall indicate the activities to be undertaken by NSFDC (b) Recommend the amount of expenditure to be incurred on the activities; and (c) Monitor the Corporate Social Responsibility Policy & Sustainability of NSFDC from time to time. The CSR&SD Committee shall institute a transparent monitoring mechanism for implementation of the CSR&SD projects or programs or activities undertaken by NSFDC
The plans shall be identified and formulated in collaboration with the partner organisations of the NSFDC that include State Channelising Agencies, Channelising Agencies, Training Partners and other development partners.
The CSR&SD activities proposed in the Annual plan shall also be prepared in line with the relevant notification/circulars issued by the concerned Ministries. Any project / program which benefit the employees or their families shall not be considered as CSR&SD activities.
All proposal for CSR&SD activities shall be first examined by the Internal Committee for CSR&SD constituted by the CMD, NSFDC and only after they are found suitable, proposals shall be put up to CSR&SD committee of Directors for their consideration following the due approval process in NSFDC.
Activities carried out under the NSFDC’s Corporate Social Responsibility shall be related to activities included in the Schedule VII of the Companies Act.
- Budget Allocation
The Board of Directors shall ensure that NSFDC spends, in every financial year, at least two per cent of the average net profits of the company made during the three immediately preceding financial years. For the purposes of ascertaining the CSR Budget “average net profit” shall be calculated in accordance with the provisions of section 198 of the Companies Act, 2013. If NSFDC fails to spend the earmarked amount, the Board shall, in its report, specify the reasons for not spending the said amount. CSR Budget will not lapse and unutilized funds shall be transferred to a CSR Reserve which shall be utilized in subsequent years.
In case of Unspent balance , it will not lapse and the same will be suitably disclosed and will be spent on CSR activities in the subsequent years.
The CSR & Sustainability activities will be coordinated at Corporate Office by the Internal Committee for CSR&SD. This Committee shall be accountable to the CSR&SD Committee constituted by the Board which shall oversee the Corporate Social Responsibility & Sustainability Activities.
The Board would be apprised of the status of CSR & Sustainability projects every six months.
- NSFDC shall highlight the overall achievements of its CSR&SD initiatives in the Annual Report.
- NSFDC shall display its CSR&SD activities on its homepage.
- There shall be attached to statements laid by the company in its annual general meeting, a report by the Board of Directors having details about the policy developed and implemented on corporate social responsibility & sustainability and the initiatives taken during the year.
- In case of any doubt with regard to any provision of the policy and also in respect of matters not covered herein, the interpretation & decision of the CMD shall be final.
- Any or all provisions of the CSR&SD Policy would be subject to revision/amendment in accordance with the guidelines on CSR&SD issued by the DPE from time to time on the subject.