GG International School

Grade X Geography SEA (Term 2)

Topic: Corporate Social Responsibility
Academic Session 2021-22

On April 1, 2014, India became the first country to legally mandate corporate social
responsibility.
What is CSR?
The term corporate social responsibility (CSR) refers to practices and policies undertaken by
corporations that are intended to have a positive influence on the world. The key idea behind
CSR is for corporations to pursue other pro-social objectives, in addition to maximizing profits.
Examples of common CSR objectives include minimizing environmental externalities,
promoting volunteerism among company employees, donating to charity, social welfare,
contributing towards various funds, etc.
Applicability:

 According to the provisions of section 135 (1) of the Companies Act, 2013 Corporate Social
Responsibility provisions shall be applicable to every company having: Net worth of Rs. 500
Crore or more, or; Turnover / sales of Rs. 1000 Crore or more, or; Net profit of Rs. 5 Crore.
 The Company shall ensure that the company spends, in every financial year, at least two percent
of the average net profits of the company made during the three previous years in pursuance
of its Corporate Social Responsibility.
 The Company shall give preference to the local areas and areas around it where it operates.
 If the company fails to spend such amount, the Board in its report should specify the reasons for
not spending the amount.
For further details: Please visit the website- csr.gov.in