Corporate Social Responsibility : In News
India, the first country to mandate Corporate Social Responsibility (CSR), has seen over ₹1.84 lakh crore invested through CSR from 2014 to 2023. With agriculture employing nearly half of the workforce and contributing 16.73% to GDP, interest in directing CSR funds toward agricultural sustainability is rising.
- CSR involves corporate initiatives focused on societal, environmental, and economic development, enabling companies to positively impact communities.
- Governed by Section 135 and Schedule VII of the Companies Act, 2013, and Companies (CSR Policy) Rules, 2014, which outline eligibility criteria, implementation, and reporting requirements for CSR activities.
- Mandatory for companies meeting any of the following:
- Net worth of ₹500 crore or more,
- Annual turnover of ₹1,000 crore or more,
- Net profit of ₹5 crore or more.
- Such companies are required to allocate 2% of their average net profits from the past three years toward CSR.
- If a company fails to meet CSR obligations, it faces fines ranging from ₹50,000 to ₹25 lakh. Responsible officers may face imprisonment (up to three years), fines between ₹50,000-₹5 lakh, or both.
- Prior to 2019, unspent CSR funds could be carried forward to the next fiscal.
- Post-amendment, unspent funds must be transferred to a specified Schedule VII fund by the end of the fiscal year and utilized within three years, failing which, they must be deposited in a government-specified fund
