CORPORATE SOCIALCORPORATE SOCIALRESPONSIBILITYRESPONSIBILITY

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Corporate Social Responsibility (CSR) is amanagement concept through which acompany achieves a balance of economic,environmental and social imperatives(“Triple-Bottom-Line- Approach”).

Any company that has a net worth of at least Rs. 500crore, a turnover of Rs. 1,000 crore or a net profit ofRs. 5 crore is obliged to spend 2% of its averageprofits over the last three years on CSR.

ABOUT CSRABOUT CSR

India is the first country in the world to makeCSR mandatory, following an amendment toThe Company Act, 2013.

Businesses can invest their profits in areas such aseducation, poverty, gender equality, and hunger.

In 2019, the High Level

Committee on Corporate

Social Responsibility

headed by Injeti

Srinivas presented its

report to Finance

Minister Nirmala

Sitharaman.

WHY IN NEWS?WHY IN NEWS?

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Schedule 7 of the Companies Act, 2013 (whichoutlines the kinds of activities that qualify asCSR) should be aligned with the UnitedNations Sustainable Development Goals toinclude sports promotion, senior citizens’welfare, welfare of differently abled persons,disaster management, and heritage protection.

Compliance violations should be treatedas a civil offence that attracts penalties.

KEY RECOMMENDATIONSKEY RECOMMENDATIONSThe committee has recommended makingCSR expenditure tax deductible.

Deductible expenses are those that canbe subtracted from a company's incomebefore it is subject to taxation. It reducesthe company's tax liability.