CORPORATE SOCIAL RESPONSIBILITY

CSR – RATIONALE & CONCEPT

• Section 135 and Schedule VII of New Companies Act, 2013 & provisions of the MCA (CSR Policy) Rules – legal reference points (wef 01/04/14)

• CSR is the process by which a business organization, consciously and proactively, evolves relationships with its stakeholders for the common good and demonstrates this commitment by adopting socially responsible business processes and strategies.

• Essentially CSR is deeper and more comprehensive than philantrophy.

CSR APPLICABILITY

Mandatory to spend on CSR activities at least 2% of the average net profitfor the immediately preceding 3 financial years. This should not beundertaken in normal course of business and must be with respect to theactivities mentioned in Schedule VII of New Companies Act, 2013

• Contribution to any political party cannot be considered to be CSR

• Only activities in India would be considered for computing CSR expenditure.

• To formulate & monitor CSR policy of the company, a CSR committee of the Board needs to be constituted.

• This committee should consist of at least 3 Directors, including 1 independent Director.

• All details of CSR activities and expenditure to be made public on co. website as well as in annual report.

CSR – Do s and Don’t s

CSR – Do s and Don’t s

WHICH ACTIVITIES ARE STIPULATED FOR CSR SPEND?