The document outlines the key points of corporate social responsibility (CSR) in India based on the new Companies Act of 2013. It mandates that companies spend at least 2% of their average net profits from the past three years on CSR activities focused on areas like poverty alleviation, education, and rural development. CSR goes beyond mere philanthropy to involve proactive stakeholder engagement. Companies must form a CSR committee, publicly disclose CSR activities and spending, and ensure contributions do not support political parties or activities outside of India.

1. CORPORATE SOCIAL RESPONSIBILITY

2. 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.

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

4. CSR – Do s and Don’t s
• 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.

5. CSR – Do s and Don’t s

6. WHICH ACTIVITIES ARE STIPULATED FOR
CSR SPEND?