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Corporate Social Responsibility(CSR)

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 in 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 crore (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 three 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 :

  • Projects related to activities specified in the Companies Act;
  • Projects related to activities taken by the company board as recommended by the CSR Committee, provided those activities cover items listed in the Companies Act.