CS Executive CORPORATE SOCIAL RESPONSIBILITY (SEC – 135)
Corporate Social Responsibility is a regulation that obliges companies to take an active part in complying with the legal spirit of the ethical norm and international norm. CSR activities help the organization to have a better impact on society, consumers, and our stakeholders. It gives the edge to CSR-following business over others.
APPLICABILITY OF CSR ON BUSINESS
As per section 135 of the Act 2013 of the Company,
Every company that lies in these conditions must spend the prescribed amount on CSR activities:-
- Company with a net value of 500crore rupees or more
- Company with a turnover of rupees 1000crore or more
- Company with a net profit of 5crore or more
Upon compliance with any of the above conditions, the company shall establish a CSR committee, which shall establish policies related to CSR expenditure and shall be disclosed in the report of the board of directors. The company shall make the expenditure of at least 2 percent of the average net profit made by the company during the three immediate financial years in accordance with the activities of corporate social responsibility.
SOCIAL RESPONSIBILITY BENEFITS OF CORPORATE
- It will help retain the employee in the organization
- It will increase the goodwill and corporate image of our organization
- Benefit our society for the sake of greater good
- Increase the trust of stakeholders such as investors and financial analysts
- It is going to increase our sales
CSR COMMITTEE CONSTITUTION
Each committee to which section 135 of the Company Act 2013 applies is required to set up a CSR committee.
- The Committee shall consist of three or more directors
- 1 director out of 3 directors should be an independent director.
- A private company and unlisted company not required to appoint an independent director shall not be required to appoint an independent director to the CSR Committee.
- A private company with 2 directors may constitute a CSR committee with only 2 directors.
DISCLOSURE RELATED TO CSR ACTIVITIES
- Briefing about company CSR policy
- The composition of the CSR committee
- Our average profit in the preceding 3year
- Expenditure on CSR
- Areas where money is being spent
- If a company has failed to spend the required amount on CSR, we will state the reason for not spending the required amount
- Responsibility statement regarding that our compliance is duly dealt with
LIST OF CSR ACTIVITIES
IN OUR SCHEDULE VII, there are various activities that a company can spend on:-
- Eradication poverty, hunger, and malnutrition
- Promote education by providing enhancing vocation skills especially children and women
- Empowering women and creating equality among genders
- Protection of our culture and heritage
- Rural development projects
- Contributing to PM relief fund
- Development of our slum area
- Providing a benefit to our armed forces and veteran
ACTIVITIES NOT AMOUNTING TO CSR
- Projects done outside India
- Programs done only for the benefit of the company’s employee and worker
- Contribution done to a political party
Read More About CSR Committee Constitution HERE
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