CSR RULES AND PERMISSIBLE ACTIVITIES
In this article we will discuss in depth about CSR rules and permissible activities ,Corporate social responsibility (CSR) is a proactive and synergistic business philosophy, while attention is paid to broader economic, environmental, and social issues in a balanced way. Profit maximization is no longer the purpose for corporations, and they are responsible for good corporate governance and follow compliances for the betterment of society and the environment.
Organizations use resources for the purpose of giving contribution to society, and they have to operate in a sustainable manner and contribute some amounts for the preservation and sustainability of resources that belong to society CSR increase the growth of corporates and positive effect on reputation also. The global economy has experienced significant economic growth and integration in every part of the last 20 years that give solution there is several changes in the way businesses operate. Governments have amended the law, changed aspects of corporate operations, and implemented various regulatory measures to improve corporate behaviour so as to promote increased accountability, disclosures, and transparency.
CSR means the activities undertaken by a company in pursuance of its statutory obligations that are laid down in Section 135 of the Company Act 2013 in accordance with the CSR rules, but shall not include such activities for contribution to CSR:
- Activities that are covered in the normal course of business of the company
- Any activity undertaken by the company outside India except for the training of Indian sports
- Providing contributions to any political party
- Activities benefiting employees of the company
- Sponsorship activities
- Activities that are carried out for the fulfilment of statutory obligations
Only Schedule VII, which is applicable to the company, provides the activities for contribution.
There are certain activities that are included by companies in their CSR policies relating to:
• Activities that are covered include eliminating hunger, poverty, and malnutrition; promoting health care, including preventive health care; and sanitation, including contributions to the Swach Bharat Kosh for the promotion of sanitation and making safe drinking water available.
For example, in the area of healthcare activities to promote good health and prevent diseases, health camps, sanitation activities, water facilities, check dams, etc.
- Encourage education, including special education, employment-enhancing vocation skills, especially among children, women, the elderly, and the differently abled, and livelihood enhancement projects.
For example: areas of education activities, providing coaching, improving learning levels, training youth, vocational training, livelihood enhancement activities, etc.
- Encourage gender equality by empowering women, building homes and hostels for women and orphans, establishing old people’s homes, day care centres, and other facilities for the elderly, and taking measures to reduce the inequalities faced by socially and economically backward groups. For example, On condition that providing training to women, providing assets for old age homes, and reducing inequalities.
- Make sure environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources, and maintenance of soil, air, and water quality, including contribution to the Clean Ganga Fund established by the Central Government for rejuvenation of the Ganga.
- Protection of national heritage, art, and culture, including the restoration of buildings and sites of historical importance and works of art; establishment of public libraries; and promotion and development of traditional art and handicrafts.
- Action was taken for the benefit of armed forces veterans, war widows and their dependents, Central Armed Police Forces (CAPF) and Central Paramilitary Forces (CPMF) veterans, and their dependents, including widows.
- Providing education to promote rural sports that are nationally recognized sports, Paralympic sports, and Olympic sports.
- Development of Slum area
- Development of Rural projects
- Disaster management, including relief, rehabilitation, and reconstruction activities.
Development sectors in CSR
As per amendments to Schedule VII of the Companies Act, 2013, the following activities may qualify as CSR:
- Encouraging education, including special education and employment-enhancing vocation skills, mostly among children, women, the elderly, and the differently abled, and livelihood enhancement projects
- Provide training to promote rural sports, nationally recognized sports, Paralympic sports, and Olympic sports.
- Make sure of Eco friendly, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources, and maintenance of soil, air, and water quality.
- Encourage gender equality, Empowering women, build homes and hostels for women and orphans, establishment of old age people’s homes, day-care centres, and other facilities for elderly people, and taking action to reduce the inequalities faced by socially and economically backward groups.
- To eliminate hunger, poverty, and malnutrition, encourage health care, prevent health care, promote sanitation, and increase the availability of drinking water, they contribute to swatch Baharat Kosh.
- Preservation of national heritage, art, and culture, including reconstruction of buildings and sites of historical importance and works of art; setting up public libraries; and promotion and development of traditional art and handicrafts.
- Give contributions to incubators or research and development (R&D) projects in the fields of science, technology, engineering, and medicine, funded by the central government or state government; and
- Take action for the benefit of armed forces veterans, war widows and their dependents, Central Armed Police Forces (CAPF) and Central Paramilitary Forces (CPMF) veterans, and their dependents, including widows.
- Give a contribution to the prime minister’s national relief fund, the prime minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund), or any other fund set up by the central government. For socioeconomic development, relief, and welfare of the schedule caste, tribes, other backward classes, minorities, and women. Rural development projects
- Slum Area Development Projects
- Contribution towards Swachh Bharat Kosh
- Contribution to the Clean Ganga Fund set up by the Central Government for the revival of the river Ganga as well as relief, rehabilitation, and reconstruction activities Contributions to public-funded universities, Indian Institutes of Technology (IITs), and other bodies.
Conclusion: For most businesses, it is important to come together and develop guidelines for social responsibility initiatives. They can operate in a consistent and responsible manner through this approach. They have to contribute the money according to Schedule VII of the Companies Act, 2013 in the development sector only for the benefit of society.
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