SF_3 Unit 1 CSR
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Transcript of SF_3 Unit 1 CSR
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?