Can undertaking Corporate Social Responsibility (CSR) in India

In India, in the early 90s, Mahatma Gandhi introduced the concept of corporate social responsibility. During those time, CSR was based on the concept of trusteeship which would help in achieving the socio-economic growth. Sometimes, CSR was also based on family traditions, culture, and religious values.

India made history in the year 2014 by becoming the first country to legally mandate CSR. By undertaking CSR, a company can determine its impact on the environment, and on the society, and be conscious of their activities, rather than just focusing on making profit.

Even though the compulsory legal mandate for CSR was put out in 2014, traces of it can be found in the 1956 Companies Act. The Act under Section 293(1)(e) states that the Board of Directors of a public, or a private company shall ‘contribute to charitable, or other funds not directly relating to the business of the company, or that relating to the welfare of its employees’.

This provision of law was later shifted into the new legislation via an amendment. Now mandated under the 2013 Companies Act, Section 135 of the Act puts forth the eligibility criteria for the companies that has to undertake the various CSR activities mentioned under Schedule VII of the Act, how to establish the CSR Committee, and also how to determine the fund for undertaking a particular CSR activity.

Glancing through the numerous CSR activities mentioned under Schedule VII of the 2013 Act, it becomes very clear how an activity can help the nation achieve the various Sustainable Development Goals (SDGs).

Originally Published at https://www.latestlaws.com here: https://www.latestlaws.com/articles/can-undertaking-corporate-social-responsibility-csr-in-india-help-achieve-the-various-sustainable-development-goals-sdgs/