Policy on Corporate Social Responsibility
POLICY ON CORPORATE SOCIAL RESPONSIBILITY
This policy, encompasses the company’s philosophy for delineating its responsibility as a Corporate Citizen and lays down the guidelines and mechanism for carrying out socially useful activities / projects and programmes for welfare and sustainability, development of community at large and is titled “ESAB’s CSR Policy”.
ESAB India recognising its social and statutory responsibilities has adopted a policy to make a positive difference to the society. The Company recognises that it cannot be present at all places and hence the fewer projects under the CSR which could have impact on the society at large and tradesmen in particular.
The Concept of CSR has gained prominence and ESAB has adopted a CSR policy as a strategic tool for sustainable growth not with just and intent to invest funds in social activity but to integrate the business processes with the social processes.
To commit for enhanced value-creation for the Society, to compete for our shareholders, stakeholders and the communities we live in, by taking up activities and initiatives for sustainable growth for the society, the safety and well being of workers being deeply committed to socio economic development in its areas of operation.
To mobilise core competencies of ESAB and resources of business to facilitate working in partnership on projects that benefit ommunities and workers.Our focus is safety, skill development of workers along with working with communities in our vicinity.
The main objective of this CSR policy is to lay down guidelines to make CSR a key business process for sustainable development of the society, while complying with the statutory requirements of the Companies Act, 2013.
This policy would ensure increased commitment at all levels in the organisation to operate its business in an economically, socially and environmentally sustainable manner, while recognising the interests of all its stakeholders.
The CSR activities and initiatives would enable the company to get the good will of the community and help reinforce a positive and socially responsible image for the Company.
Funding & Allocation
For achieving the CSR objectives, ESAB will allocate 2% of its average net profits arrived at for the three preceding years as provided under Section 135 of the Companies Act, 2013.
The Internal Committee, called the CSR sub-committee, consisting of the MD / ED, CFO, CS and VP-HR would consider the various options and put up the projects for approval of the CSR committee. The areas of CSR spend would be:
a. Promoting Education, vocations skills
b. Safety, Right Usage for external Workers.
c. Environment Management
d. Any other areas as may be decided by the Internal Committee
Any unspent / unutilised CSR allocation in a particular years, will be carried forward to the following year’s CSR budget.
CSR programmes will be undertaken by the Corporate Office / various plants to the best possible extent within the defined ambit of the above identified heads. By and large it may be ensured that at least 50% of the CSR programmes are executed in and around the areas adjoining ESAB Offices / Plants.
ESAB may employ the assistance of voluntary organisations (NGOs), Education Institutions, Trusts, Missions, Self-help groups, overnment and semi government organisations, professional consultancy organisation and others.
- Identification of the programmes by CSR Committee - Put up to CSR Board Committee for approval - Allocate funds and monitor usage of the funds
- To identify the CSR volunteers in Corporate Office and the plants for implementation of the project and to report to CSR sub-committee on a monthly basis the progress of the projects.
- Report to the CSR Board Committee on a quarterly basis on the progress made on CSR front - Report to the CSR Board Committee on the usage of the funds allocated and the balance available for spend.
- CSR sub-committee to inform CSR Board committee on the reasons for not spending the entire CSR allocation.
- Appropriate documentation of the CSR policy and CSR activities, executing partners and expenditure to be undertaken on a regular basis.
- CSR initiatives of the Company will also be reported in the Annual Report of the Company.
The above guidelines would form the framework around which the CSR activities would be undertaken. ESAB will review the policy from time to time based on changing needs and aspirations of the target beneficiaries, statutory needs and make suitable modifications as may be necessary