What is corporate social responsibility

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28 April 2015 what is social corporate responsibility, please reply in brief.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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28 April 2015 In brief, CSR (Corporate Social Responsibility) is company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates.

For example- Conducting free health camps, Slum area development, making available safe drinking water, providing various facilities in schools etc.

With the enactment of the Companies Act, 2013, India has become the forerunner to mandate spend on Corporate Social Responsibility (CSR) activities through a statutory provision.

Section 135(1) of Company Act 2013 mandates the CSR expenditure for the following companies– Every company having a) net worth of Rs.500 crore, b) turnover of Rs.1000 crore c) or net profit of Rs.5.00 crore Where net profit excludes income from overseas branch & divided distributed by company on which this section apply. – If any company on which CSR provisions were applicable cease to come in above criteria for consecutive three years , they are not required to follow the provision of CSR.

Mandatory Expenditure:

Section 135(5) mandates 2 percent of the Average net profit during the three immediately preceding financial years.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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29 April 2015 http://www.pwc.in/assets/pdfs/publications/2013/handbook-on-corporate-social-responsibility-in-india.pdf

https://www.caclubindia.com/articles/corporate-social-responsibility-csr--20094.asp#.VUBQxtKqqko