Corporate Social Responsibility in India
The Companies Act of 1956 has been replaced by The Companies Act of 2013, and “corporate social responsibility (CSR)” has been made required for a specific class of businesses. With the rise of businesses, there must be an all-inclusive growth of society. Perhaps with this in mind, Indian legislators enacted this legislation. According to a Mercer report, India became the first country in the world to make it mandatory for companies with a net worth of more than Rs 500 crore, yearly sales of more than Rs 1,000 crore, or net profit of more than Rs 5 crore to devote at least 2% of their profits to CSR beginning in April 2014. Report by Mercer From April 2014, enterprises with a net worth of more than Rs 500 crore, yearly sales of more than Rs 1,000 crore, or a net profit of more than Rs 5 crore must devote at least 2% of their profits to Corporate Social Responsibilities
(CSR). The Companies Act of 1956 was repealed in favour of the nearly revised Companies Act of 2013. CSR is addressed in Section 135 of the Act. Every such firm must form a Corporate Social Responsibility Committee of the Board of Directors, which must include three or more directors, at least one of whom must be an independent director.
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