Debates on Development and Development Processes; State and Provision of Services; State and Market; Involvement of Civil Society-Community Based Organizations (CBOs) and NGOs; Self-help Groups, (SHGs), Charities and Stakeholders, Public-Private Partnerships (PPP); Corporate Social Responsibility.
Number of questions- Mains: 02, Prelims – 10
Mains Questions of the day-
1.Explain the associated challenges to the Corporate Social Responsibility (CSR) in India?
Introduction: –
Write briefly about the CSR in India.
Body: –
Write briefly about challenges associated to the CSR
Conclusion: –
- Community and employee participation:
Improving community relations, involving employees in CSR can help motivate them and encourage their personal and professional development by inculcating social and ethical values.
- Collaboration for efficiency:
Facilitating collaboration between NGOs, agencies involved in environmental and social work will enable better utilization of CSR funds.
- Evaluation and monitoring:
CSR activities and projects needs to be monitored periodically to prevent fraudulent activities and complete project within stipulated time.
- Fair and balanced expenditure:
Encouraging corporates to spend in neglected areas such as aspirational districts and North east region to have regional parity in socio-economic development.
- Relaxation and incentives:
Government should further provide relaxation and incentives in corporate tax to corporates complying with CSR regulations.
Content: –
Corporate Social Responsibility (CSR): –
- Primary objective of CSR: To promote responsible and sustainable business philosophy at a broad level and encourage companies to come up with innovative ideas and robust management systems.
- CSR is the responsibility of the corporations operating within society to contribute towards economic, social and environmental development that creates positive impact on society at large.
- The Companies Act, 2013 was made India the first country to mandate and quantify CSR expenditure.
- The inclusion of CSR is an attempt by the government to engage the businesses with the national development agenda.
- Section 135(1) of the Act prescribes thresholds to identify companies which are required to constitute a CSR Committee –
- Net worth is Rs500 Crore or more; or.
- Turnover is Rs1000 Crore or more; or.
- Net profit amounts to Rs5 Crore or more.
- As per the Companies (Amendment) Act, 2019, CSR is applicable to companies before completion of 3 financial years.
- Companies are required to spend in a financial year at least 2% of their average net profits generated during the 3 immediately preceding financial years.
Challenges associated to the Corporate Social Responsibility (CSR): –
- Tool to tax:
CSR is criticized as a tool to tax corporates which already face high taxation which makes India unattractive for business.
- Skewed pattern of spending:
About 65% of CSR spending was incurred on education and healthcare while eradication of hunger, rural development and environmental protection are at lower side of expenditure.
- Regional disparity:
- Companies usually undertake CSR activities in areas where work can be done without any hardship.
- This may be the reason that aspirational districts and North-east region with their poor infrastructure and development level are not in the focus of companies
- Non-compliance:
- It is found that 50% of the companies were unable to spend the mandated amount on CSR.
- In past five years after the act was enforced 70% of the companies still do not have a strategy to implement CSR activities.
- Cheating and favoured donations:
It is found out that companies made donations to charitable trusts which are well known and then received them back after deduction of minor commissions.
2.Explain the salient features of PM Gati Shakti scheme (Public-Private Partnership)?
Introduction: –
Write on the importance of infrastructure to Indian Economy and the objectives behind introduction of the scheme
Body: –
Discuss the salient features of the scheme.
Conclusion: –
- The Gati Shakti will boost economic growth, attract foreign investments and enhance the country’s global competitiveness thereby enabling smooth transportation of goods, people and services and creating employment opportunities.
- The PM Gati Shakti will help India to realise its dream of becoming the “business capital” of the world. But all the challenges must be addressed on priority in order for the project to be a success.
Content: –
Features of PM Gati Shakti scheme: –
- It is a national master plan for multi-modal connectivity aims to develop infrastructure on road, railway, civil aviation among others to reduce logistic costs and boost the economy.
- As per reports, studies estimate the logistics costs in India is about 13-14% of GDP as against about 7-8% in developed economies. With this high logistic cost, the competitiveness of India’s exports is greatly reduced.
- It aims to coordinate the development of infrastructure with a view to lower logistic costs in line with developed countries.
- Public-Private Partnership (PPP) would be the key driver of the Rs.100 lakh crore ambitious PM Gati Shakti initiative.
- It will increase economic activities and create employment on a large scale due to the creation of quality infrastructure for sustainable development.
- The government is promoting Make in India by giving preference to domestic players so that there is job creation.
- The government has included the Government e-Marketplace (GeM) to improve efficiency.
- The global procurement has been hit due to pandemic, the government should deal with it.
- Due to land acquisition delays and litigation issues, the rate of implementation of projects is very slow.
Prelims Questions of the day: –
1.Corporate Social responsibility affects which of the following sectors of the society?
- Promotion of education
- Promotion of gender equality
- Ensuring environmental sustainability
- All of the above
Answer: D
Explanation: –
The term corporate social responsibility (CSR) refers to practices and policies undertaken by corporations that are intended to have a positive influence on the world. The activities which can be undertaken by a company under CSR have been specified under Schedule VII of the Act. The activities include:
- Eradicating extreme hunger and poverty,
- Promotion of education, gender equality and empowering women,
- Combating Human Immunodeficiency Virus, Acquired Immune Deficiency Syndrome and other diseases,
- Ensuring environmental sustainability;
- Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women etc.
2. Which of the following ministry is responsible for implementing the Corporate Social Responsibility Act?
- Ministry of Finance
- Ministry of Corporate Affairs
- Ministry of Personnel, Public Grievances and Pensions
- Ministry of health and family welfare
Answer: B
Explanation:
- Under the CSR Act, certain categories of profitable companies are required to spend at least 2 percent of their three-year annual average net profit towards CSR activities in a particular financial year.
- The corporate affairs ministry, which is implementing the Act.
3. Which of the following is the main characteristic of a Public-Private Partnership?
- Long term service provisions
- Transfer of risks to the private sector
- Different forms of long-term contracts drawn up between legal entities and public authorities
- All of the above
Answer: D
Explanation:
- Public-private partnerships are defined as “long-term contractual arrangements between the government and a private partner in which the latter delivers and funds public services with the use of a capital asset.”
- It entails the public sector and its partners sharing and transferring risks and rewards.
4.National highway projects contracted out by the NHAI under which of the following PPP mode?
- LOT
- BOOT
- BOT
- DBFO
Answer: C
Explanation:
The National Highways Authority of India (NHAI) is now planning to award around 450 km of highway stretch through the build-operate-transfer (BOT) model in public-private-partnership (PPP) projects.
5.Curb on Foreign funding of NGOs, is discouraging which of the following article in the Constitution?
- Article 30
- Article 19
- Article 29
- Article 21
Answer: B
Explanation:
Curbing of foreign funds of NGO: –
- These moves will have a discouraging effect on the constitutionally guaranteed rights to freedom of association, expression and assembly (Article 19).
- The government has expanded governmental discretion, bureaucratic control and oversight with respect to the day-to-day functioning of NGOs in India.
6. Which of the following ministries is/are regulating the Functions of NGO?
- Ministry of Finance
- Ministry of Home Affairs
- Minister of External Affairs
- Both A and B
Answer: D
Explanation:
Foreign Contribution (Regulation) Act (FCRA), 2010
- Foreign funding of voluntary organizations in India is regulated under FCRA act and is implemented by Ministry of Home Affairs.
- The acts ensure that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
- Under the act organisations require to register themselves every five years.
Foreign Exchange Management Act, 1999
- Foreign Exchange Management Act (1999) aims to consolidate and amend the law relating to foreign exchange with objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
- A transaction under FEMA is called a fee or a salary while the same under FCRA is called a grant or a contribution.
- In 2016, the powers of Ministry of Finance to monitor NGOs were placed under the FEMA. The idea was to bring all NGOs, which receive foreign contributions, under one umbrella for better monitoring and regulations. The step was taken to that ensure only one custodian monitors flow of foreign funds to these organisations.
7. Which of the following Constitutional Provisions related to the NGOs in India?
- Article 19
- Article 43
- Concurrent List (Entry 28)
- All the above
Answer: D
Explanation: –
Constitutional Provisions for NGOs in India: –
- Article 19(1)(c) on the right to form associations;
- Article 43 which highlights the State’s having an endeavor to promote cooperatives in rural areas;
- Concurrent List in Entry 28 mentions about – Charities and charitable institutions, charitable and religious endowments and religious institutions”.
8. “Right to form co-operative societies” in India comes under which of the following Rights?
- Legal Right
- Constitutional Right
- Natural Right
- Fundamental Right
Answer: D
Explanation:
- The 97th Constitutional Amendment Act of 2011 by giving constitutional status and protection to co-operative societies, it made the right to form co-operative societies a Fundamental Right under the Article 19 of the Indian Constitution.
- The Fundamental Rights and Constitutional Rights are different from each other. A constitutional right is a supreme right guaranteed by our constitution and if any law contradicts the constitutional rights it will be declared null and void. But unlike Fundamental Rights, these rights are not basic and not applicable to everyone.
- For example, the Right to vote under Article 326 is a Constitutional Right whereas the Right to Propagate one’s religion under Article 25 is a Fundamental Right.
- A legal right is an interest accepted and protected by law. Also, any debasement of any legal right is punishable by law.
- Human right is a right that is available to one because of being human.
9. To which of the following authorities, the co-operative societies need to send their annual working reports?
- Comptroller and Auditor General of India
- Governor of the state
- Union Ministry of Finance
- Authority decided by the concerned state legislature
Answer: D
Explanation:
Every co-operative society shall file returns, within six months of the close of every financial year, to the authority designated by the State Government. These returns shall include the following matters:
- Annual report of its activities
- Its audited statement of accounts.
- Plan for surplus disposal as approved by the general body of the co-operative society
- List of amendments to the by-laws of the co-operative society
- Declaration regarding date of holding of its general body meeting and conduct of elections when due
- Any other information required by the Registrar in pursuance of any of the provisions of the State Act.
10. Which of the following is the authority that conducts the elections to Co-operative societies in India?
- Election Commission of India
- State Election Commission
- District Magistrate
- Authority decided by the concerned state legislature.
Answer: D
Explanation: –
- A cooperative society is a voluntary association that started with the aim of the service of its members. It is a form of business where individuals belonging to the same class join their hands for the promotion of their common goals.
- The election of a board shall be conducted before the expiry of the term of the board so as to ensure that the newly elected members assume office immediately on the expiry of the term of the office of members of the outgoing board.
- The superintendence, direction and control of the preparation of electoral rolls and the conduct of elections to a co-operative society shall vest in such body, as may be provided by the state legislature.