Corporate Social Responsibility has been saved
Corporate Social Responsibility
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The concept of Corporate Social Responsibility (CSR) is governed by section 135 of The Companies Act, 2013, which encourages companies to spend two percent of their average net profits in the previous three years on CSR activities. For CSR activities, the company should give preference to the local area and areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility activities.
To manage CSR activities, the Board of the Company is required to form a CSR committee. The composition of the committee will be disclosed in the board’s report as per sub-section (3) of section 134. The CSR committee will also be required to ensure that all the income accrued to the company by way of CSR activities is credited back to the CSR corpus.