Write notes on Corporate social responsibility.

Corporate Social Responsibility (CSR) Corporate Social Responsibility (CSR) refers to a company's commitment to operate in an ethical and sustainable manner, contributing to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. In India, CSR is mandated for certain companies under the Companies Act, 2013. Provisions under the Companies Act, 2013: Section 135 of the Companies Act, 2013, read with the Companies (CSR Policy) Rules, 2014, governs CSR in India. 1. Applicability: CSR provisions apply to every company (including its holding or subsidiary company, and a foreign company having a branch office or project office in India) during any financial year if it meets any of the following criteria: Net worth of ₹500 crore or more; OR Turnover of ₹1,000 crore or more; OR Net profit of ₹5 crore or more. 2. CSR Committee: Companies meeting the applicability criteria must constitute a Corporate Social Responsibility Committee (CSR Committee) of the Board. The committee shall consist of: Three or more directors, out of which at least one director shall be an independent director (if applicable). For private companies with fewer than three directors, the committee can consist of all the directors. 3. Duties of CSR Committee: The CSR Committee is responsible for: Formulating and recommending a CSR Policy to the Board. Recommending the amount of expenditure to be incurred on CSR activities. Monitoring the CSR Policy from time to time. 4. Board's Responsibilities: The Board of Directors, after considering the recommendations of the CSR Committee, shall: Approve the CSR Policy for the company. Disclose the contents of the Policy in its report and on the company's website. 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 immediately preceding financial years. If the company fails to spend the amount, the Board shall specify the reasons for not spending the amount in the Board's Report. 5. CSR Activities: The CSR activities to be undertaken by companies are specified in Schedule VII of the Act, which includes activities like eradicating hunger and poverty, promoting education, healthcare, environmental sustainability, etc. CSR in India aims to integrate social and environmental concerns into business operations, making companies accountable for their impact on society and the environment.