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Corporate Social Responsibility (CSR) has become a vital aspect of corporate governance in India, especially after the enactment of the Companies Act, 2013. The Act introduced Section 135, which mandates certain companies to spend a specified portion of their profits on socially beneficial activities, marking a significant shift from voluntary CSR to a more structured legal framework. The primary objective of these CSR rules is to ensure that businesses actively contribute to social development and address issues such as education, health, poverty alleviation, environmental sustainability, and empowerment of marginalized communities. Under Section 135 of the Companies Act, 2013, companies that meet any of the following criteria are required to constitute a CSR policy and spend on CSR activities: a net worth of Rs. 500 crore or more, an annual turnover of Rs. 1,000 crore or more, or a net profit of Rs. 5 crore or more during any financial year. The responsibility for implementing CSR lies with the Board of Directors, and companies must form a CSR Committee if they meet these thresholds. This committee typically comprises three or more directors, including at least one independent director, to ensure transparency and accountability in decision-making. The CSR rules also specify the content and responsibilities of the CSR Committee. It is tasked with formulating and recommending a CSR policy, recommending the amount of expenditure to be incurred, monitoring the implementation of the CSR policy, and submitting regular reports to the Board. The Board, in turn, must approve the CSR policy and disclose it in the company’s annual report along with the details of CSR activities undertaken and the amount spent. _______ ______ ______ ___ ___ ______ _____ _________ ______ __________.
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