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. Business can invest their profits
areas such as education, poverty, gender equality, and hunger as part of any CSR compliance.
The amendment notified in the Companies Act, 2013 requires companies with a net worth of INR 500
(US $70 million) or more, or an annual turnover of INR 1000 crore (US $ 140 million) or more, or net
profit of INR 5 crore (US $ 699,125) or more, to spend 2 percent of their average net profit of
years on CSR.
Prior to that, the CSR clause was voluntary for companies, though it was voluntary for companies, though it was mandatory to disclose their CSR spending to shareholders. CSR includes but is not limited to the following :