NHDC CSR and Sustainability Policy 2014
1.1.SHORT TITLE AND APPLICABILITY:
i.This policy, which encompasses the company's philosophy for delineating its responsibility asa corporate citizenand lays down the guidelines and mechanism for undertaking socially useful programmes for welfare and sustainable development of the community at large, is titled as the ‘NHDC CSR and Sustainability Policy 2014'.
ii.This policy shall apply to all CSR initiatives and activities taken up at the various centres and locations under the Regional/ Zonal offices of NHDC, for the benefit of different segments of the society including Handloom Weavers.
iii.The entire CSR activity beco-ordinatedby a Nodal Officer (CSR) at head office level. For this purpose, the Company Secretary shall act as Nodal Officer (CSR).
1.2.CSR VISION STATEMENT AND OBJECTIVE:
i.In alignment withvisionof the corporation, NHDC, through its CSR initiatives, will continue to enhance value creation in the society and in the community in which it operates with thrust on Handloom sector, through its services, conduct & initiatives, so as to promote sustained growth for the society and community, in fulfillment of its role as aSocially Responsible Corporate.
ii.The objective of theNHDC CSR and Sustainability Policyis:
iii.To ensure an increased commitment at all levels in the organisation, to operate its business in an economically and socially sustainable manner, while recognising the interests of all its stakeholders.
iv.To directly or indirectly take up programmes that benefit the communities in and around its areas of operation/ handloom weavers and results, over a period of time, in enhancing the quality of life and economic well being of the local population there.
v.To generate, through its CSR initiatives, a community goodwill for NHDC and help reinforce a positive and socially responsible image of NHDC as a corporate entity.
2.1. Funding and Activities:
i.For achieving its CSR objectives through implementation of meaningful and sustainable CSR programmes, NHDC shall spend, in every financial year, at least two percent of its average net profits made during the three immediately preceding financial years, in pursuance of its CSR Policy:
Provided that the NHDC shall give preference to the local area and areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility activities: Provided further that if NHDC fails to spend such amount, the Board shall, in its report made under clause (o) ofsub-section(3) of section 134, specify the reasons for not spending the amount. Further as per DPE guidelines, if CPSE has made profit in a particular year it shall spend atleast 2% of net profit made in the previous year, even though it is not coming under the threshold limit of net worth or turnover or net profit as per Section 135(1) of Companies Act' 2013. NHDC shall also comply with the same. NHDC CSR and Sustainability Policy including funding shall be subject to the provisions of Section 135 of Companies Act' 2013, CSR Rules, DPE guidelines and any amendment thereto from time to time.
ii. NHDC may spend the amount mentioned as above, on the following CSR activities, on a year on year basis:
(a)Distribution of Handlooms and/ or add on equipments/ accessories or Solar Battery Linked Inverter Lighting Unit (BLILU) to Below Poverty Line (BPL) Individual Handloom Weavers.
(b)Distribution of start up Raw Material (Yarn) alongwith Handlooms as above to Below Poverty Line (BPL) Individual Handloom Weavers:
In order to ensure that the Handlooms distributed do not remain idle for want of raw material, the start up raw material in the form of yarn etc. be also provided to them, so that they can produce some articles there from and sell them in market and rotate those funds as their working capital, enabling them to carry on the activity on sustainable basis.
(c)Scholarship to the children of BPL Individual Handloom Weavers and/ or meritorious students (pursuing handlooms/ textiles course).
(d)Any other CSR activity as per Schedule VII of the Companies Act' 2013 and amendment thereto from time to time and any other guidelines issued on the subject by DPE/ Government from time to time. Also any activity advised by MoU Task Force set up by DPE will also be covered. For undertaking any new CSR activity, the Board approval shall be obtained.
(e)While selecting the CSR activities/ projects as listed in the Schedule VII of the Act, priority be given to the issues pertaining to national development agenda like safe drinking water for all, toilets specially for girls, health, sanitation, education etc. The main focus shall be to address the basic needs ofunder-privilegedand weaker sections of society, which comprise of SC, ST, OBC, minorities, BPL family, old & aged, woman/ girls, physically challenged etc.
iii.Any unspent/ unutilised CSR amount of a particular year may be carried forward to the next year with the approval of Board of Directors.
The CSR activity to be undertaken during the year will be decided at head office and communicated to the Regional/ Zonal offices for timely implementation. The Nodal Officer (CSR) willco-ordinatethe entire CSR activity at head office level.
4.1.CSR programmes will be undertaken by various Regional/ Zonal offices of NHDC to the best possible extent within the defined ambit of the identified activity for the year. Thrust will be given to Handloom Sector.
4.2.The time period/ duration over which a particular programme will be spread, will depend on its nature, extent of coverage and the intended impact of the programme. However the same will be communicated to the Regional/ Zonal Incharges by the head office soon after the Board approval.
4.3.By and large, it may be ensured that the CSR programmes are executed in and around the handloom areas of states under the Regional/ Zonal offices of NHDC.
4.4.Initiatives of State Governments, District Administration, Local Administration, Gram Panchayats as well as Central Government Departments/ Agencies, Self Help Groups, etc., would be dovetailed and synergized with the initiatives taken by NHDC.
4.5.Project activities identified under CSR are to be implemented through specialized agencies, which could include Voluntary Organizations (VOs) formal or informal Elected local bodies such as Panchayats, Institutes/ Academic Institutions, Trusts, Self Help Groups, Govt/ Semi Govt./ Autonomous organisations, Mahila Mandals, Professional Consultancy organization, State Director (Handlooms), DIC, WSC etc.
4.6.The process for implementation of CSR programmes will involve the following steps:
i.Identification of programmeswill be done at Head office level
ii.Area of CSR activities: CSR activities shall be focused mainly in or around the ‘local area' of handloom weavers in the states falling under the Regional/ Zonal offices of NHDC concerned.
‘Local area'for the purpose of undertaking CSR activity by NHDC will mean all areas in the country where handlooms are working and nearby areas.
After giving due preference to the local area, NHDC may also undertake CSR activity anywhere in the country.
For the project on Handloom/ accessories distribution or any other activity mentioned above, the regional/ zonal offices of the corporation shall identify the BPL Handloom Weavers or other beneficiaries under their area of operation through Gram Panchayats/ WSC/ State Government involving State Director (Handlooms)/ DIC.
The Handlooms/ accessories shall generally be procured from the nearest area where the weavers are located, by following the proper procedure and the same be got installed at weaver's place free of cost.
iii. Project based approach: NHDC Regional/ Zonal offices will follow a project based accountability approach to stress on the sustainability of CSR projects.
4.7 Powers for approval
i.CSR programmes as identified by the Head office shall be put up to the Board of Directors at the beginning of each financial year.
ii.For meeting the requirements arising out of immediate and urgent situations, the Managing Director is authorised to approve the proposals.4.7.3.Once the budget for a particular year is approved by the Board, the corporation will undertake the activity within those limits.
4.8 Executing agency/ Partners:NHDC will seek to identify suitable programmes for implementation in line with the CSR objectives of the Corporation for benefit the stakeholders and the community for which those programmes are intended. These CSR activities/ programmes would be executed by identifying the beneficiaries through/ involving:
i)Community based organizations whether formal or informal
ii)Elected local bodies such as Panchayats
iii)Voluntary Agencies (NGOs)
iv)Institutes/ Academic Organizations
vi)Self Help Groups (SLGs)
vii)Government, Semi Government and autonomous Organizations
viii)Standing Conference of Public Enterprises (SCOPE)
ix)Mahila Mandals/ Samitis
x)Contracted agencies for civil works
xi)Professional Consultancy Organizations
xii)State Government viz. State Director (Handlooms), DIC etc.
xiii)Weaver Service Centre.
NHDC may also take up CSR activities/ projects in collaboration with other CPSEs for greater social, economic and environmental impact of their CSR activities/ projects.
4.9 Criterion for identifying Executing agency: While identifying programmes the concerned work centre will also identify the external agency who would identify the beneficiaries for the said programme. In case where such agency is NGOs/ Voluntary organizations, the following minimum criteria need to be ensured:
i)The NGO/ Agency has a permanent office/ address in India;
ii)The NGO is a registered society under Societies' Registration Act;
iii)Possesses a valid Income tax Exemption Certificate;
iv)The antecedents of the NGO/ Agency are verifiable/ subject to confirmation.
4.10Agreement between NHDC and Executing agency:In cases where the NGOs/ Voluntary organizations are the Executing/ Implementing Agency, an agreement shall be executed with such agency as per theStandard Model Agreement,after the programmes approved by the Board of Directors.
5. MONITORING AND FEEDBACK
5.1.To ensure effective implementation of the CSR programmes undertaken at each Regional/ Zonal office, a monitoring mechanism will be put in place by the Regional/ Zonal Incharge. The progress of CSR programmes under implementation at Regional/ Zonal office will be reported to the Nodal Officer (CSR) at head office on a monthly basis and on completion of the project for a particular year, the complete report with photographs and expenditure details etc. be sent.
5.2The head office may conductimpact studies, through independent professional third parties/ professional institutions, especially on the strategic and high value programmes. Expenditure for the same be met out of the CSR budget.
5.3.Regional/ Zonal office will also try to obtain feedback from beneficiaries about the programmes.
5.4.Appropriate documentation of the NHDC CSR and Sustainability Policy, annual CSR activities, executing partners and expenditure entailed will be undertaken on a regular basis and the same will be available in the public domain.
5.5.CSR initiatives of the Corporation will also be reported in the Annual Report of the Company.
6.1.In case of any doubt with regard to any provision of the policy and also in respect of matters not covered herein, a reference to be made to the
Managing Director. In all such matters, the interpretation and decision of the Managing Director shall be final.
6.2.Any or all provisions of the CSR and Sustainability Policy would be subject to the provisions of Companies Act 2013 (including schedule VII), CSR Rules and any amendment thereto and any other guidelines on the subject as may be issued by DPE/ Government, from time to time. The same shall be deemed to be incorporated, in the NHDC CSR and Sustainability Policy, as and when issued.
6.3.The Company reserves the right to modify, cancel, add, or amend any of these Rules.