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# Corporate Social Responsibility under the Companies Act, 2013 Corporate Social Responsibility (CSR) refers to the responsibility of a business organisation towards society and the environment in which it operates. It goes beyond the traditional objective of earning profits and recognises that companies use social, economic and natural resources and therefore have responsibilities towards various stakeholders. CSR involves undertaking activities that contribute to social welfare, environmental sustainability, economic development and improvement in the quality of life of communities. In India, CSR has acquired a statutory character through the Companies Act, 2013, making India one of the first countries to establish a legal framework requiring certain companies to undertake CSR activities. The basic purpose of CSR is to encourage companies to contribute to inclusive and sustainable development. It seeks to establish a balance between economic objectives and social and environmental responsibilities. CSR projects may include activities relating to education, healthcare, sanitation, poverty reduction, environmental protection, rural development, skill development, gender equality and support for vulnerable sections of society. Section 135 of the Companies Act, 2013 provides the principal legal framework for CSR in India. The provisions apply to every company, including its holding or subsidiary company and a foreign company having a branch office or project office in India, which satisfies any of the prescribed financial criteria during the immediately preceding financial year. The criteria include a net worth of ₹500 crore or more, turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more. Companies falling within the applicability of Section 135 are required to constitute a CSR Committee of the Board, subject to the statutory conditions and exemptions provided under the Act and rules. The CSR Committee is responsible for formulating and recommending the CSR policy and the amount of expenditure to be incurred on CSR activities. It also recommends the activities to be undertaken and monitors the implementation of CSR projects ______ ____ ____ ________ _________ ________ ______ ____ ___ __________ ___.
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