Corporate Social Responsibility (CSR) is the strategic approach towards sustainable community development and the key to inclusive growth, a concept whereby the companies integrate social and other useful concerns in their business operations for the betterment of their stakeholders and society in general in a voluntary way.
April 1, 2014, India became the first country to legally mandate corporate social responsibility. The rules in Section 135 of India’s Companies Act make it mandatory for companies of a certain turnover and profitability to spend 2% of their average net profit for the past three years on CSR or where the company has not completed the period of three financial years since its incorporation, during such immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy. And with the motive to evolve with this CSR initiative, India is Continuously evolving to grow through various other rules and guidelines related to CSR including but not limited to given below rules and guidelines:
- Companies Act, 2013
- Companies CSR policy Rules, 2014
- CSR Amendment Rules, 2021
- Schedule VII of Companies Act, 2013