Corporate Social Responsibility (CSR) – All You Need to Know

Corporate Social Responsibility (CSR) is a concept under which there is an initiative taken by the corporate entity which is contributing toward the welfare of the economy, environment, and society. This is a concept where the Enterprise voluntarily decides to take action which aligns with the betterment of the society and its environment, they do that by combining such activities with business activities.

Corporate Social Responsibility denotes and comprises but is not limited:

• As described in Schedule VII, key projects or programs associated with such activities

• Furthermore, those such activities have been proceeded by the BOD (Board of Directors) of the enterprise by emanating the recommendation of the CSR Committee, as declared by the CSR Policy of the business concern.

Checked Out 👉- Company Law with Practical Examples Course

The Rules, Regulations, or provisions of Corporate Socials Responsibility (CSR) Would Apply to Every Company, any Holding company of the such company, any Subsidiary of such Company, and a Foreign Company having:

• Net worth exceeding 500 crores in the previous financial year
• Turnover exceeding 1000 crores in the previous financial year
• Net profit exceeding 5 crores in the Previous Financial Year

Importance of Corporate Society Responsibility (CSR) Committee:

CSR is vast terminology that explains the efforts of a company undertaking in the direction of the betterment of society. Some of the few major advantages are as follows:

• CSR enhances the Brand value of the corporate by promoting the efforts made by the company for the Society
• The media coverage gets increased as the visibility of the good deeds of the organization is displayed in the media.
• It affects the public image of the company positively
• Helps with the competition with other organizations as the association with the CSR community makes the company stands out in comparison to others

Also, Read 👉 Notice of Annual General Meeting (AGM) under Companies Act, 2013

What falls under the duties to be held by CSR Committee?

First and foremost, CSR Committee is required to map out the Policies regarding CSR to the Board of Directors of the company. The policies must spell out the activities that are to be undertaken by the company specified in Schedule VII and it is the duty of the committee as well to monitor such policies as well.

They are also to set the budget that is needed for the expenses relating to CSR policies. There must be Transparency in the implementation of CSR policies, Projects, and Activities.