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Corporate Social Responsibility and Its Activities

Corporate Social Responsibility and Its Activities


Corporate social responsibility is the mechanism where the corporate indulge the social and environmental concerns into their business operation.  The intention to introduce the Corporate social responsibility is as the corporate work in the environment and use the resources therefore it is their responsibility to contribute towards the social and environmental developments.    


As per the provisions of Section 135 of the Companies Act 2013, the corporate Social Responsibility is applicable on companies falling in any of the below:

  1. Having net worth of  Rupees five hundred crore or more; OR
  2. Turnover of rupees one thousand crore or more; OR
  3. Net profit of rupees five crore or more

The above criteria will be checked in the immediately preceding Financial Year

The committee shall consist of three or more directors, of which atleast one director shall be an independent director, whereas if the company is not falling in the criteria to appoint an independent director, then the committee should be constituted with two or more directors.  


The committee will recommend to the board which activity from Schedule VII has to be taken and the amount to be incurred on the CSR. The committee will monitor the activities with the object and the confirmation that the board is taking care of all the provisions and is in compliance with the rules of Companies Act, 2013.


The board will ensure that in each financial year, the expenditure should be atleast  2% of the average net profit made during the immediate three preceding financial year.


Schedule VII of the companies Act, 2013 has defined the activities which will be considered as CSR are as follows:

1.  Eradication of hunger, poverty, malnutrition and sanitation (Swach Bharat abhiyan) and providing safe drinking water (recently activities related to COVID-19 has been included)

2. Promoting education which includes special education and vocational skills for employment generation among children, women, elder and physically challenged.

3.  Promotion of gender equality, women empowerment, setting up homes, hostels, orphanage, old age home, day care centres and the step involved in reducing the inequality faced by socially and economically backward groups

4. Ensure natural manageability, biological equalization, widely varied vegetation assurance, creature government assistance, agroforestry, protection of normal assets and upkeep of soil, air and water quality

5. Protection of national heritage, art and culture which includes restoration of buildings and sites of historical importance and works of art; public libraries set ups; promotion and development of traditional art and handicrafts 

6. Steps for the benefit of armed forces veterans, war widows and their dependents

7. Training for the promotion of rural sports, nationally recognised sports, paralympic sports and olympic sports

8. Contribution to the prime minister's national relief fund (PMNRF) or any other fund set up by the central govt. to develop socio economic and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women.

9. Contribution in various research organisation and others as described in schedule VII of the companies Act, 2013.

10. Rural development projects

11. Development of slum area

12. Disaster management, including relief, rehabilitation and reconstruction activities, (recently activities related to COVID-19 has been included).

Pls Note:

In view of the COVID-19 pandemic the government has include the activities related to COVID -19 in the CSR in point (1) and (12).


The detailed expenditure on the CSR activities shall be disclosed in the board report and if the company fails to spent then also it should be specified in the board report along with the reasons of such failure. 

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