What is CSR?

In India, Corporate Social Responsibility (CSR) refers to the ongoing commitment of businesses to contribute to the development of the society and environment in which they operate. It's not just about philanthropy; it's about integrating social and environmental concerns into core business operations and taking responsibility for a company's broader impact.

Why is CSR important in India?

India faces various social and environmental challenges, including poverty, hunger, illiteracy, inequality, and pollution. CSR offers a crucial opportunity for corporations to leverage their resources and expertise to address these issues, creating a more sustainable and equitable future for all.

Laws Related to CSR in India:

India holds the unique distinction of being the first country to mandate CSR through the Companies Act, 2013. Section 135 of the Act requires certain companies to spend at least 2% of their average net profit for the preceding three financial years on CSR activities.

Which Companies Have to Do CSR?

The CSR mandate applies to companies that meet any one of the following criteria:

• Net worth of Rs. 500 crore or more
• Turnover of Rs. 1000 crore or more
• Net profit of Rs. 5 crore or more in the preceding financial year

Areas of CSR in India:

Schedule VII of the Companies Act outlines the areas where companies can undertake their CSR activities. These include:

• Eradicating hunger, poverty, and malnutrition
• Promoting education and literacy
• Promoting gender equality and empowering women
• Building healthy communities
• Protecting the environment
• Promoting rural development
• Skill development