CORPORATE SOCIAL RESPONSIBILITY NORMS IN INDIA
        CORPORATE SOCIAL RESPONSIBILITY NORMS IN INDIA
                        Corporate Social Responsibility is a model or form of 
                        corporate self-regulation whereby a company is 
                        responsible to itself, its stakeholders and to the 
                        community. According to CSR a business needs to 
                       incorporate various social, legal and environmental 
                       concerns in its operations and culture and be ‘socially 
                       responsible’. Mahatma Gandhi said that “Wealth created 
                        by the society has to be ploughed back into the society”.
                      India is the first country in the world to make corporate 
                       social responsibility (CSR) mandatory, following an 
                       amendment to the Companies Act, 2013 in April 2014. 
                       Businesses can invest their profits in areas such as 
                      education, poverty, gender equality, and hunger as part 
                             of any CSR compliance.
                   APPLICABILITY: COMPANIES COVERED UNDER 
                   APPLICABILITY: COMPANIES COVERED UNDER 
                                                CSR
                                                CSR
                                               Applicability 
                                               Applicability 
                                                  as per 
                                                  as per 
                                               Section 135 
                                               Section 135 
                                                    of 
                                                    of 
                                                Companies 
                                                Companies 
                                                Act, 2013
                                                Act, 2013
                              Networth of      Turnover of 
                              Networth of      Turnover of      Net Profit of 
                                Rs 500           Rs 1000        Net Profit of 
                                Rs 500           Rs 1000        Rs 5 Crores 
                               Crores or        Crores or       Rs 5 Crores 
                               Crores or        Crores or         or more
                                 more             more            or more
                                 more             more
                   Note: *Net Profit Before Tax is considered while checking 
                   the applicability of CSR*
                               WHAT TO DO WHEN CSR IS 
                               WHAT TO DO WHEN CSR IS 
                                              APPLICABLE?
                                              APPLICABLE?
                                    Constitute 
                                       a CSR 
                                    Committee
                                              Formulate 
                                                a CSR 
                                                Policy
                                                         Spending at 
                                                          least 2% of 
                                                         the average 
                                                         net profits of 
                                                        last 3 years on 
                                                        CSR activities       Disclose 
                                                                          composition of 
                                                                         CSR Committee 
                                                                          and CSR policy 
                                                                              and its 
                                                                         implementation 
                                                                        in Board’s Report
            ACTIVITIES WHICH MAY BE INCLUDED BY COMPANIES IN THEIR 
            ACTIVITIES WHICH MAY BE INCLUDED BY COMPANIES IN THEIR 
                                                                          Promoting 
                                                                 CSR POLICIES
                                                                 CSR POLICIES
                                                                            gender 
                                                                           equality, 
                                                     Eradication         empowering 
                                                      of Hunger,            women.
                                                     Poverty and                             Slump Area 
                                                      Malnutritio                             Developme
                                                           n                                       nt
                                             Contribution to             Schedule VII 
                                                 Prime                   (Includes the 
                                               Minister’s                 activities                Protection 
                                             National Relief           relating to CSR)             of national 
                                              Fund or any                                          heritage, art 
                                             other fund set                                        and culture
                                                up by the 
                                              Central Govt.
                                                                                        Ensuring 
                                                               Promotion             environmental 
                                                                   of                 sustainability, 
                                                               Education                biological 
                                                                                         balance
               Ways to discharge CSR Funding 
               Ways to discharge CSR Funding 
        The funds provided under Corporate Social Responsibility are for social 
        development issues and make a positive impact on the living standards of 
        the economically poor and disadvantaged people of the Society as they can 
        live a productive and dignified life. The different ways of CSR funding are 
        as follows:
        1) Set up a Foundation
        2) Work through Non-Profit Organisation or Trusts
        3) Implement its Schemes directly 
        All these options are open to Companies but an increasingly large number 
        of them are choosing to set up their own foundations to carry out CSR.