CORPORATE SOCIAL RESPONSIBILITY
 

Guidelines On Corporate Social Responsibility
 
1.0 Objectives
2.0 Definition of Corporate Social Responsibility
3.0 Legal Obligation
3.1 Approved Programme
3.2 Areas of Intervention
3.3 Non-Qualifiable Activities
4.0 Approved Corporate Programme
5.0 Vehicles eligible for use in the implementation of a CSR Programme
5.1 Non-Government Organisation (NGO)
5.2 Special Purpose Vehicle (SPV)
5.3 Corporate Partners
6.0 Non-Qualifiable Activities

Guidelines on Corporate Social Responsibility by Private Companies and NGOs


1.0 Objectives

The Government of Mauritius has established a policy with the overall objective of mandating registered companies to pay 2% of their book profit towards programmes that contribute to the social and environmental development of the country. Specific objectives of this fund are to:
  • Encourage companies to manage their own programmes, impacting the intersection of economic with social and environmental development
  • Facilitate the contribution of companies to support existing Approved National Programmes implemented by Companies, national agencies or NGOs
  • Promote a functional community on NGOs with complementary workplans that are relevant to the national development programme

2.0 Definition of Corporate Social Responsibility

Corporate Social Responsibility (CSR) is the concept whereby companies act to balance their own economic growth with the sustainable social and environmental development of their areas of operation. A company performing highly in CSR is one that goes beyond compliance with the legal framework to actively pursue positive impacts on local communities and its environmental footprint.

3.0 Legal Obligation

Any company making profit is required as per Section 50K and 50L of Income Tax Act to contribute 2% of their book profit after income tax, in compliance with prevailing legislation, to set up a CSR Fund to finance CSR activities.

Companies which are excluded from the payment of CSR are as follows:
  1. Company holding a Global Business Licence Category 1 under the Financial Services Act.
  2. Incomes of banks derived from transactions with non-residents and corporation holding a Global Business Licence.
  3. An IRS Company
  4. A non-resident societe, a trust or a trustee of a unit trust scheme.

3.1 Approved Programme

Any profitable company may use its CSR Fund to finance programmes under any of the following options:
  1. Approved Corporate Programme as described at paragraph 4.
  2. Approved NGOs as described at paragraph 5.
  3. Approved National Programme as described in paragraph 6.
3.2 Areas of Intervention

CSR activities must focus on the following Areas of Intervention:
  • Socio Economic Development (including gender and human rights)
  • Health
  • Education & Training
  • Leisure and Sports
  • Environment
  • Catastrophic Interventions & support.

A list of sub areas is submitted at Annex I for guidance of companies and NGOs. All other new areas will be subject to approval by the CSR Committee.

3.3 Non-Qualifiable Activities

The following activities do not fall under the definition of CSR:
  1. Contribution for religious activities
  2. Contribution to activities discriminating on the basis of race, place of origin, political opinion, colour or creed.
  3. Contribution to Trade Unions
  4. Sponsorship for marketing purposes
  5. Contribution for political parties
  6. Shareholders and Senior Staff benefits (schemes benefiting staff and/ or their family members and shareholders holding more than 5% of shareholding)
  7. Staff welfare cost (including e.g. current and future staff training costs),
  8. Activities which are against public safety and national interest.
4.0 Approved Corporate Programme

Companies with CSR Fund will be divided into two categories, namely:
  1. CSR Programme for Companies with CSR Fund contributions of Rs. 2 million and above (i.e. 2% of Profit equals or is greater than Rs 2 million).; and
  2. CSR Programme for Companies with CSR value less than Rs. 2 million (i.e. 2% of Profit is less than Rs. 2 million).
Companies with CSR Value of Rs 2 m and, not using SPVs, may seek approval of their Corporate Programme from the CSR Committee using Corporate Programme Proposal Form.

The CSR Committee will approve the application subject to receipt of all necessary documentation.

The Committee is presently finalising monitoring and reporting mechanism. This will shortly be communicated to the different stakeholders.

5.0 Vehicles eligible for use in the implementation of a CSR Programme
A company can implement a CSR Programme through its own organization or use any of the following vehicles:
  1. Approved NGOs - Eligibility criteria are detailed at Paragraph 5.1
  2. Special Purpose Vehicle - Eligibility criteria are detailed at Paragraph 5.2.
  3. Corporate Partners - Eligibility criteria are detailed at Paragraph 5.3.
5.1 Non Government Organisation (NGO)

An Approved NGO must meet the criteria below:
  1. NGOs should have a legal locus standi.
  2. NGOs should run on non-profit making basis.
  3. NGOs should have a proven track record of activities in one or more of the Areas of Intervention for a minimum of TWO years.
  4. NGOs should operate on either a national, regional or local basis and should be on a NON-SECTARIAN basis/ should not discriminate on the basis of race, place of origin political opinion, colour or creed.
  5. The administrative costs of NGOs should not exceed 15% of the total expenditure of the budget of a project.
  6. NGOs should keep proper books and records and should submit certified/ audited financial statements.
  7. NGO should not be involved in any Non- Qualifiable activities, detailed at para 3.3.

An NGO seeking approval for ‘Approved NGO Status’ must submit an application to the CSR Committee using Application Form for Accreditation of NGO.

The CSR Committee will approve the application subject to receipt of all necessary documentation.

Organisations that achieve this status will be required to report to the CSR Committee six monthly using NGO, SPV and National Programme Reporting on Actual CSR Programme Implementation (This form is presently being finalised and will be communicated shortly).

5.2 Special Purpose Vehicle (SPV)

A Company with a CSR Programme of above Rs 2 million annually can also use a Special Vehicle for the implementation of its programme.

A Special Purpose Vehicle should satisfy the following criteria:
  1. should have a legal status;
  2. Should be run on non-profit making basis;
  3. The administrative costs of Special Vehicle should not exceed 15% of the total expenditure of the budget of a project. 
  4. Should keep proper books and records; and
  5. should implement an approved programme and not involved in any Non- Qualifiable activities, detailed at Paragraph 3.3.
SPVs must seek approval, using Application Form for Accreditation of Special Purpose Vehicle from the CSR Committee and must report in the same way as NGOs (using NGO, SPV and National Programme Reporting on Actual CSR Programme Implementation (This form is presently being finalised and will be communicated shortly).

The CSR Committee will approve the application subject to receipt of all necessary documentation.

A company using a Special Vehicle for CSR Programme will be allowed to carry forward a maximum of 20% the total CSR programme value for up to one year.

5.3 Corporate Partners

These are organizations which have been delivering CSR activities on behalf of a company for the last 2 years. These Corporate Partners will need to satisfy the following criteria:
  1. Should operate on non-profit making basis;
  2. Should keep proper books and records;
  3. The administrative costs of the Corporate Partner should not exceed 15% of the total expenditure of the budget of a project.
  4. Should implement an approved corporate programme; and
  5. A company with a CSR Budget of less than Rs. 2 million, using a Corporate Partner to implement its CSR Programme will be allowed to spend only an amount not exceeding 25% of the 2% value of the CSR budget.
6.0 Approved National Programme
Private, Non-Profit and Public organizations should apply to the CSR Committee for approval of an ‘Approved National Programme’ status, using Application to Accredit a CSR Programme as an Approved National Programme.

Reporting on implementation must be submitted six monthly to the CSR Committee using NGO, SPV and National Programme Reporting on Actual CSR Programme Implementation (This form is presently being finalised and will be communicated shortly).

The list of Approved National Programme.