Corporate Social Responsibility under Companies Act
Corporate Social Responsibility (CSR) assumes significance as it permits companies to engage in projects or programs related to activities related to social welfare and improvement enlisted under the terms of Companies Act, 2013. There is an element of flexibility in company activities by allowing them to select their preferred CSR engagements that are in agreement with the overall CSR policy of the company.
Definition of Corporate Social Responsibility (CSR)
The term Corporate Social Responsibility or CSR has been defined as under, but is not limited to:
- Projects or programs with reference to activities that are specified in the Schedule; or
- Projects or programs related to activities undertaken by the Board in pursuance of recommendations of the CSR Committee according to the declared CSR policy subject to the condition that such policy covers subjects explained in the Schedule.
Applicability of Corporate Social Responsibility to Companies
Corporate Social Responsibility is required for all companies viz. private limited company, limited company. The following companies are necessary to constitute a CSR committee:
- Companies with a net worth of Rs. 500 crores or greater, or
- Companies with a turnover of Rs. 1000 crores or greater, or
- Companies with a net profit of Rs. 5 crores or greater.
If any of the above financial strength criteria are met, the Corporate Social Responsibility (CSR) provisions and related rules will be applicable to the company. These companies are required to form a CSR committee consisting of its directors. This committee oversees the entire CSR activities of the Company.
Activities permitted under Corporate Social Responsibility (CSR)
The following activities can be performed by a company to accomplish its CSR obligations:
- Eradicating extreme hunger and poverty
- Promotion of education
- Promoting gender equality and empowering women
- Reducing child mortality
- Improving maternal health
- Combating human immunodeficiency virus, acquired, immune deficiency syndrome, malaria and other diseases
- Ensuring environmental sustainability,
- Employment enhancing vocational skills, social business projects
- Contribution to the Prime Minister’s National Relief Fund or an Central Government or the State Governments for socio-economic development, and
- Relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women and such other matters as may be prescribed.
Role Of NGOs in CSR
The corporate social responsibility blends the objective of social development and environmental protection thorough ethical effort. Many non-governmental organizations in India are engaged in social development and environmental development activities. These organizations are good enough to support the industrial development by ensuring community participation the developmental process. The concept of corporate social responsibility is underpinned by the idea that corporations can no longer act as isolated economic entities operating in detachment from broader society. Corporate Social Responsibility to be looked upon as mutual support programs that ensure development of community near by the industrial area with the expansion and development of the industrial organizations.
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Role Of NGOs in CSR
1. Qualification Proof as per course Requirement
2. Identity Proof
3. Residence Proof
4. Assessment Fee As per Guidelines by CSR Providing NGO/Company/Norms for Training
Primary Training Center Setup requirements: -
1. 2 Class room with at least 30 students seating capacity of each.
2. 10-15 Computer with 512Mbps Internet Connection
3. 2 Faculties as per courses
4. Library or Study Material as per Course
5. Well Equipped lab as per Trade