The document summarizes recent changes to India's corporate social responsibility (CSR) policy and rules. Key changes include more detailed definitions of CSR activities and administrative expenses. Companies can now implement CSR through partner organizations. They must also publish CSR committee composition, policies, and project details online. The new rules aim to structure and strengthen India's CSR regime by promoting transparency and accountability of companies' social activities.

1. -KANCHAN KUMARI
(Roll No-13)
DEPARTMENT OF COMMERCE AND
BUSINESS STUDIES
Submitted to-
Dr RACHNA VISHWAKARMA
(Assistant Professor)

2.  CSR-(Corporate social responsibility) is a self
regulating business model that helps a company
be socially accountable.
 By practicing this company can be conscious
about the impact that they are having on all
aspects of society, including economic, social,
and environmental.
 Benefits of CSR –
-Organizational growth
-Better Brand recognition
-Identify new Business opportunities
-increased sales and customer loyalties

3.  Corporate social responsibility was introduced first
time as a statutory obligation for companies in
2014 under (section-135) .
 Recently on 22nd January 2021, the Ministry of
corporate affairs issued CSR policy Amendment
rule .
 Key changes introduced in 2021 Amendment –
 1.Changes in definition clause-
-a) Definition of Administrative overheads- Under
section 2(b) refers to expenses incurred by the for
general management and adm in relation to CSR
function , do not exceed 5 %of company’s total CSR
expenses.

4. -b)Definition of CSR – u/s-2(d) refers to activities
undertaken by a company for meeting CSR
obligation.
-R&D in relation to covid-19, CSR obligation for three
financial year.
-Contribution to any political party not qualify as
CSR.
-c)Definition of CSR Policy- recommendation of CSR
Committee, includes guiding principles,
implementation and monitoring of activities.
-d) Definition of International organization
-e) Definition of ongoing project
-f) Definition of public authority

5. -2) Changes in Rule 4- CSR Implementation
-Under new rule, company is allowed to undertake
its CSR implementation either by itself or through
another company established u/s8 , of the
companies act.
-3.)Changes in Rule 5- CSR Committee
-Given task to formulating and recommending to
board .
-4.) Changes in Rule 7- CSR Expenditure
-Administrative overhead in relation to CSR does not
exceed 5% of total CSR expenditure of the
company.
-Set off any excess amount spent by it for CSR upto
immediate succeeding three finacial year.

6. -5) Changes in Rule 8- CSR Reporting
-companies having average CSR obligation of 10 cr, or
more in 3 immediate financial years are required to
undertake impact assessment through an
Independent agency of their CSR project.
--6)Changes in Rule 9- Display of CSR activities on
website
-Disclose the composition of CSR Committee, CSR
Policy, and projects on their website for public
access.
-Investors becomes aware .

7.  Conclusion-
 The New CSR Policy 2021, has greatly changed the
CSR regime.
 New rules have defined the concept in detailed and
structured way.
 Considering the overall scheme and the underlying
intention the New Rule paints a promising picture for
India’s CSR regime .
END

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