(Companies Act 2013)

By
Sibani Swain
Economic Advisor
Ministry Of Corporate Affairs

What is CSR
CSR in Companies Act-2013
CSR Committee
Mandatory Disclosure(Boards Report)
Schedule VII
Educating Voters
CSR Rules

Corporate Social Responsibility is the continuing

commitment by business to behave ethically and
contribute to economic development while
improving the quality of life of the workforce and
their families as well as of the local community and
society at large
Lord Holme
and Richard Watts

Corporate social responsibility encompasses not

only what companies do with their profits, but also
how they make them. It goes beyond philanthropy
and compliance and addresses how companies
manage their economic, social, and environmental
impacts, as well as their relationships in all key
spheres of influence: the workplace, the
marketplace, the supply chain, the community,
and the public policy realm.
Harvard University

Companies Mandated to constitute a CSR Committee

Networth of Rs 500 Crore or more
Turnover of Rs 1000 Crore or more
Net profit of Rs 5 Crore or more

CSR Committee to have

Three or more directors

At least one is to be an independent director

Boards Report shall disclose the constitution of CSR Committee

CSR Committee will

Formulate CSR policy and recommend to board indicating the

activities
to be undertaken as specified in schedule vii
Recommend the amount of expenditure to be incurred
Monitor CSR Policy from time to time

 Board

of Directors will

Approve CSR Policy

Ensure implementation of CSR policy
Disclose the contents of CSR policy in the Board report
Place the same on companys website, if any

Ensure CSR spending amounting to at least 2% of the average

net profit of the preceding three financial
years

Boards

Report shall specify the reasons for not spending the

specified amount

There

is no penalty for failure to spend 2% of net profit on CSR

Eradicating extreme hunger & poverty

Promotion of education

Promoting gender equality and empowering women

Reducing child mortality and improving maternal health

Combating human immunodeficiency virus, acquired immune deficiency syndrome,

malaria and other diseases

Ensuring environment sustainability

Employment enhancing vocational skills

Social business projects

Contributions to Prime Minister Fund or any other fund set up by the Central
Government or the State Governments for socio-economic development and relief and
funds for the welfare of the Scheduled Caste and Schedule Tribe

such other matters as may be prescribed

 Thrust

is on Womens participation in Electoral Process

Activities

included in schedule VII of the Act covers Gender

equality and Womens empowerment

Corporates

are free to formulate CSR policy including

projects/programme to be undertaken, amount to be spent,

community/geographical area to be covered etc.
The

Act provides that the company shall give preference to

the local areas

Specifies operational provisions of the CSR policy

Hosted on MCAs Website on 9th September,2013 for inviting Public

Comments

Includes provisions for implementing agencies, pooling of resources by two

or more corporates, CSR coverage etc. as well as format for reporting
Feedback Received on Number of issues including
Activities covered under schedule VII
Tax exemption on CSR spending
Composition of CSR Committee
CSR

rules are being finalized after taking into account stakeholders

comments.