Corporate Social Responsibility(CSR) | Section 135 of Companies Act |CSR notes
https://things-for-students.blogspot.com/2020/02/corporate-social-responsibilitycsr.html
Every person in the society has some role or more
specifically the responsibility towards other persons. Company being a juristic
person has also some responsibility which is known as Corporate Social
Responsibility(CSR). Here I shall discuss this topic in question and answer
format. If you still have any doubt, please ask your query in the comment
section.
Q. Which companies fall under Corporate Social
Responsibility?
Ans:
(i) Every company whose net worth is rupees 500 crore
or more in a financial year or
(ii) Every company whose turnover is rupees one thousand
crore or more in a financial year or
(iii) Every company whose net profit of rupees five crore or
more during any financial year
Shall constitute a Corporate Social Responsibility committee
of the Board consisting of three or more Directors. Among the Directors on of
them shall be an independent Director.
Q. What are the functions of the Corporate Social
Responsibility committee?
Ans: According to companies amendment Act 2013 the Corporate
Social Responsibility(CSR) committee shall have the following functions-
(1) Formulate policy which shall include the activities
performed by the companies which are mentioned in the schedule VII.
(2) Recommend to the Board , the amount of fund required for
such activities as mentioned in the schedule VII.
(3) The Corporate Social Responsibility(CSR) committee shall
monitor the CSR policy of the company from time to time.
Q. What are the functions of the Board in Corporate Social
Responsibility?
Ans:
(i) The primary
function of the board in Corporate Social Responsibility(CSR) is to approve the
policy as recommended by the Corporate Social Responsibility committee and
disclose such policy in company’s official website.
(ii) Another responsibility of the board is to ensure that
the policy which is recommended by the Corporate Social Responsibility
committee is actually performed by the company.
Q. What are the activities which fall under Corporate Social
Responsibility?
Ans: According to schedule VII of Companies Act the
following activities may be adopted by a company in its Corporate Social
Responsibility.
(1) Eradicating hunger and poverty from the society as far as
the company is capable.
(2) Promotion of quality education
(3) Providing of employment oriented vocational training
(4) maintaining environmental sustainability
(5) To contribute to the Prime Minister’s National Relief
fund or other governmental relief fund or provide fund for the development of
SC, ST and other backward classes in the society.
(6) Promote social business projects
(7) Combating HIV and other severe diseases
(8) Improving the health condition of the new born child and
mother to reduce child mortality rate
(9) Such other activity as may be prescribed from time to
time
