As important as CSR is for the community, it is equally valuable for a company.
- Eradicating extreme hunger and poverty
- Promotion of education
- Promoting gender equality and empowering women
- Improving maternal health
- Ensuring environmental sustainability,
- Employment enhancing vocational skills, social business projects
- Scholarship for higher studies
- School infrastructure development
- Trees plantation
- Promoting sports
- Benefits Armed Forces Veterans & war widows
- Education & employment enhancing vocational skills
- Setting up facilities for senior citizens
- Rural and slum development
Corporate Social Responsibility (CSR) assumes significance as it permits companies to engage in projects or programs related to activities related to social welfare and improvement enlisted under the terms of Companies Act, 2013. There is an element of flexibility in company activities by allowing them to select their preferred CSR engagements that are in agreement with the overall CSR policy of the company. In this article, we review the applicability of CSR, policy of CSR, role of Board of Directors and activities of CSR.
Importance to Local Areas and Neighborhoods:
Under the terms of Companies Act, preference must be given by companies in its CSR activities to local areas and the areas where the company operates. Company may possibly also choose to link with 2 or more companies for fulfilling the CSR activities provided that they are competent to report individually. The CSR Committee will also prepare the CSR Policy in which it includes the projects and programmes which is to be undertaken, organize a list of projects and programmes which a company plans to embark on during the execution year and also focus on integrating business models with social and environmental priorities and process for the reason of creating share value. The company can, in addition, make the annual report of CSR activities in which they declare the average net profit for the 3 financial years and also approved CSR expenditure but if the company is not capable to spend the minimum required expenditure the company has to provide the reasons in the Board Report for non-compliance so that there are no related penal provisions.