Perspectives on Globalization Globalization has shrunk the boundaries of operating or doing businesses across the globe. With the rapid growth in business ventures, there is a significant enhancement in global...
Every organization or business owe to the society they operate which is known as Corporate Social Responsibility.
What is Corporate Social Responsibility u/s 135 of companies Act 2013?
Companies Act 2013 has introduced a new concept called Corporate Social Responsibility (CSR). CSR is merely moral obligation that the corporate world owes to the society. The act has mandated certain classified companies to contribute towards society.
The corporates use the valuable resources provided by the Society for its operations, hence the corporates should act as trustees towards the society and ensure the welfare of the society.
CSR is not any donation or charity rather it is an obligation of the corporate towards the good of society.
CSR should be used to integrate social, environmental and economic objectives with the business operations and goals.
Who are the eligible Companies?
The provisions of the CSR applies to both Public and private limited company including their holding and subsidiary companies and foreign companies who have offices in India and satisfy any of the following limits:
- Company having net worth of Rs 500 crore or more; or
- The company having a turnover of Rs. 1,000 crore or more; or
- The company has a net profit of Rs. 5 crores.
The CSR provisions apply to a company on year to year basis.
What are the Compliances required?
Every Company who satisfy the stated limit shall constituting a Corporate Social Responsibility Committee of the Board of Directors; and
Such Company shall have CSR Policy indicating the activities to be undertaken by the company; and
Such Company shall contribute in every financial year, at least two percent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of the CSR Policy.
What is the Advantage of the CSR?
Society gives the License to Operate:
Society is also considered as one of the stakeholders in recent time. Engaging in strong CSR activities will meet the aspirations of the society and will provide the companies with a license to operate socially.
Communities as Suppliers:
Many companies have started engaging in such CSR activities; wherein the companies are increasing the livelihood in the community by making them a part of the supply chain.
Attracting and Retaining Employees:
CSR encourage the employees and also helps corporate to retain employee which in return helps to increase the morale of the company.
Enhances the Reputation of the Enterprise:
Companies who engage in CSR activities, reap the traditional benefits of generating goodwill for themselves and creating a positive image in the eyes of the community. This allows the enterprise to present itself as a responsible body corporate.
Service provided by us:
The Companies Act 2013 mandated to comply with the provisions of the corporate social responsibly. The company shall have CSR committee inboard and CSR policy in accordance with the Act.
We provide the following services with respect to CSR:
- Planning for CSR activities
- Drafting of CSR Policy
- Finalise the CSR investments
- Policy with the tax-efficient mechanism
- CSR implementation in the organization and progress report.