Responsible care
India's CSR laws should encourage corporate investment in animal welfare, which is a sign of moral progress and strengthens compassion by integrating stray animals into communities rather than leaving them neglected
Proudly, India is a country that has formalised Corporate Social Responsibility through its legislative promulgations. Interestingly, the provisions even extend to animals, a subject close to the hearts of many. If innocence had a synonym, it would be animals. Execution of these legal provisions concerning stray animals, in letter and spirit, will exemplify the moral progress of the country apart from enhancing the reputation of corporates worldwide.
The CSR concept in India is governed by Section 135 of the Companies Act, 2013, Schedule VII of the Act, and the Companies (CSR Policy) Rules, 2014. Section 135, inter alia, stipulates that every company having a net worth of rupees five hundred crore or more, a turnover of rupees one thousand crore or more, or a net profit of rupees five crore or more during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee of the Board. The same shall consist of three or more directors, out of which at least one director shall be an independent director. Where a company is not required to appoint an independent director under sub-section (4) of Section 149, it shall have in its Corporate Social Responsibility Committee two or more directors. The provisions, inter alia, stipulate that the Board must ensure spending, in every financial year, at least two percent of the average net profits of the company made during the three immediately preceding financial years in pursuance of its Corporate Social Responsibility Policy. Where the company has not completed three financial years since its incorporation, the obligation applies to such immediately preceding financial years.
The CSR Committee is required to formulate and recommend to the Board a policy indicating the activities to be undertaken by the company as specified in Schedule VII of the Act, recommend the amount of expenditure to be incurred, and monitor the policy from time to time. Various other obligations are laid down, such as the Board approving the policy for the company, disclosing its contents in its report, placing it on the company’s website (if any), and ensuring that the activities included in the Corporate Social Responsibility Policy of the company are undertaken.
Schedule VII of the Act, inter alia, includes animal welfare, environmental sustainability, ecological balance, protection of flora and fauna, agroforestry, conservation of natural resources, and maintaining the quality of soil, air, and water, etc., as activities that may be included by companies in their Corporate Social Responsibility Policies.
Stray animals are a domain requiring serious attention. Poor animals suffer even more as they cannot speak or express themselves, making this an area that requires investment not only in terms of money but also time, resources, and dedicated manpower. Though in the last couple of years they have become a subject of interest, attention, and care, much more is still needed. CSR is meant to be the bridge between companies and the community. Animals are the most pious and purest part of our community. Essentially, animal welfare gives a facelift to the communities we live in, bringing positivity, a sense of compassion, and overall well-being. In fact, connecting CSR funds and resources to this much-needed area can, apart from serving the helpless, also enhance the global reputation of Indian corporates.
Even the Indian Constitution refers to animals. The Directive Principles of State Policy and Fundamental Duties emphasise the responsibility to care for animals. For instance, Article 48A, a Directive Principle, refers to improving the environment and safeguarding and protecting forests and wildlife. The provision states that the State shall endeavour to protect and improve the environment and safeguard the forests and wildlife. Article 51A(g), a Fundamental Duty, enumerates it as the duty of citizens to protect and improve the natural environment, including forests, lakes, rivers, and wildlife, and to have compassion for living creatures. In the context of animal rights, the Apex Court has included animal rights under the ambit of the right to life in the celebrated judgment Animal Welfare Board of India vs. V.A. Nagaraja & Ors., 2014.
There have been many positive developments in the last couple of years. Once voiceless animals are amply cared for by corporates and individuals as a shared social responsibility, it will inspire others to follow suit, leading to a rise in the nation's moral values and goodwill. As we know, India has always been influenced by the bandwagon effect. Hopefully, cohesive efforts in this direction will become so extensive that words like “stray” become inexistent, replaced with “family” or “community.”
The writer is a practising Advocate in Supreme Court and High Court of Delhi. Views expressed are personal
