CORPORATE SOCIAL RESPONSIBILITY (CSR) IN INDIA
WHAT IS CSR?
Corporate social responsibility means the moral responsibility that a company or business
have to the society and to serve the needs and benefits of the society. This policy came from
the view that a business who use the resources of the society and depends on it for their
functioning in a way or other should discharge their responsibilities to enhance the welfare of
society. This policy indicates that a company should not only be profit motive but should also
be socially oriented. It’s also known as corporate citizenship.
CSR IN INDIA
National Voluntary Guidelines on Social, Environmental and Economic responsibilities
announced by the Government and Companies Act 2013 make CSR compelling in India. By
the Companies Act 2013 which replaced companies Act 1956, India become on of the first
countries to make CSR mandatory .CSR was adopted in India by the provisions in
Companies Act 2013.Companies Act formulated Sec 135 and Schedule VII and
Companies (Corporate Social Responsibility Policy) Rules 2014 altogether authorize
mandatory provisions for the Companies to fulfil their corporate social responsibilities.
CIRCUMSTANCES WHEN CSR APPLIES:
According to Clause 135 of the Act, Every Company:
Having net worth of 500 crore or more or;
Having turnover of 1000 crore or more or;
Net profit of 5 Crore or more.
during a financial year must constitute a CSR committee and formulate CSR policy.
A foreign company having its branch office in India if fulfilling the criteria as mentioned
above will also be applicable to fulfil their CSR.
CSR COMMITTEE
Every Company who qualifies the required criteria needs to constitute a CSR Committee of
Board consisting of:-
3 or more directors, out of which at least 1 director shall be an independent director.
