Policies Relating To Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is defined in section 135 of the Companies Act 2013. The mere concept of CSR is that every company has some social responsibilities and duty towards the state, So it is the responsibility of every company to work for the welfare of the state and society. Company is the part of society and it plays an important role in the development of society For example – Mobile phone company plays an important role in the development of society with new features and technology.

There are certain guidelines/provisions given in section 135 of companies act 2013,

(1) Section 135(1) of companies act 2013 talks about that every company having –

  1. The net worth of Rs 500 crore or more,
  2. Turnover of 1000 crore or more,
  3. Net profit of 5 crores or more,

During the immediately preceding financial year should have a corporate social responsibility committee.

  • The board’s CSR committee should be composed of three or more directors, one of whom should be an independent director.
  • Section 135(2) of companies act 2013 talks about the boards report under sub-section (3) of section 134 which should be disclosed under the social responsiveness committee.
  • Every company have to make policies for CSR under schedule 7, and every company have to perform acts which is given in schedule 7 of section 135 of companies act 2013.
  • There are many activities which the company can perform under CSR given in this schedule like –

(I) Eradicating hunger and extreme poverty;

(ii) Fostering education;

(iii) Promoting and empowering women and gender equality;

(iv) Reducing mortality amongst children and improving maternal health;

(V) Fighting human immunodeficiency virus, immune deficiency gained

Syndrome, malaria, and other conditions;

(vi) Ensuring sustainability for the environment;

(vii) Employment to improve skiing at work

A. The role of CSR is to FORMULATE the company that how should they work.

B. The role of CSR is to RECOMMEND the company which activity should you perform.

C. The role of CSR is to MONITOR the company whether they are performing their duty or not

Section 135(5)

  • The Board should ensure that every company should spend at least 2 %of its average net profit made during the three immediately preceding financial years.
  1. The company should spend this net profit in any sector which is mention in schedule 7 of the companies act 2013. But in my opinion, the company should spend this net amount in local areas or urban area for their developments.
  2. They can use this money to make schools or hospitals in local areas for their benefit.
  3. They can also give this money in PM CARES FUND but this method is not beneficiary for local peoples.
  4. According to section 135(5), the company should give preference to local areas because local areas are the backbone of our country.

Usually, CSR strategy will include the following core elements:

1. Care for all interested parties – The companies should consider, and honour, the interests of all stakeholders, including shareholders, are responsive; Employees, clients, suppliers, the people affected by the project, Company at large, and so on, and build value for everyone.

2. The ethical workings – Ethics will support their governance systems, Being open and accountable. They do not get involved in Commercial activities which are unethical, unreasonable, illegal or anti-competitive.

3. Respect for the rights and welfare of workers. – Companies should have an area of work which is clean, hygienic and humane, and in accordance with the integrity of workers. They will make available to all employees. Training and development of needed career skills. Progress, on equal and non-discriminatory grounds. We will maintain the connection between democracy and the successful

4. Aversion of human rights – Companies should respect human rights for all and prevent that. Complicity with human rights violations on their part or by third parties

5. Environmental Consideration – Companies should take measures to track and avoid pollution; the waste should be recycled, handled and sustainable natural resources and maintaining the best use of capital, such as land and water, will be Reply proactively to climate challenges, change through Adopting healthier production practices and encouraging better use Frieze energy and climate.

6. Social and inclusive development activities – Depending on their core competencies and business priorities, The enterprises will conduct economic and social activities Group and Geographical Growth, Especially in the vicinity of its operations.


The Indian CSR concept translates into the philanthropic activity. It’s More about donating, and getting the poor uplifted. CSR, Nevertheless it has a bigger manifesto and folds. This is all about mutual relationships value, and wealth distribution.

The idea before was about after making some of this and then giving it away, CSR also relates to “How” to make that money. There are currently a few companies that might have what is needed is programs and initiatives going and going here and there create a comprehensive strategy on CSR.

In Bhagavad-Gita (3-13) Lord Sri Krishna says: “All sorrows … It would be removed from society if socially conscious members of a society were Community enjoyment of the remnants of its work performed in a spirit of yagna (selfless welfare of others).’ Briefly: Indian business philosophy is to inculcate enterprise social responsibility: Social responsibility.

This article is authored by Kartikeya Misra, Second-Year, B.A.LL.B student at JIMS Engineering Management Technical Campus (JEMTEC)

Also Read – What Are the Benefits of Corporate Social Responsibility (CSR) Policy?

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