The Companies Act, 2013 In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013, which was passed by both Houses of the Parliament, and had received the assent of the President of India on 29 August 2013. The CSR provisions within the Act is applicable to companies with an annual turnover of 1,000 crore INR and more, or a net worth of 500 crore INR and more, or a net profit of 5 crore INR and more. The new rules, which will be applicable from the Act lists out a set of activities eligible under CSR. Companies may implement these activities taking into account the local conditions after seeking board approval. The indicative activities which can be undertaken by a company under CSR have been specified under Schedule VII of the Act. . A central idea behind the act is each eligible company has to spend 2 % against CSR activities.
‘Key to social issues’
“About half the companies (70) interviewed have spent more than 70 per cent of their CSR in education and employable skills initiatives,” said the report titled ‘Catalyzing Change Through CSR’ – released during a CSR Leadership Conference.
“Education and employable skills are the key to most of India’s social problems. An industry which has grown solely by investing into knowledge and key skills, realizes the difference a skilled knowledge society can make and therefore, a major chunk of the CSR funds has been dedicated to education and employable skills,” Ganesh Natarajan, Chairman, NASSCOM Foundation, said in a statement.
As per the report, 53 per cent of the surveyed companies based in Karnataka, Tamil Nadu, Maharashtra, Telangana as well as the National Capital Region, said they were now also investing considerably in non-headquarter geographies.
“Companies have become increasingly aware of outcome assessment and close monitoring implementing agencies, as evidenced by the growing frequency of report submissions from partner organizations, and greater on-ground frequency of their Corporate Social Responsibility teams,” the report added.
Among the roadblocks cited by a large number of companies was identification, selection and due diligence on non-government organizations and the absence of robust tracking process.
We are working very closely to bridge the gaps of organizations in implementing their CSR vision on Ground and improving society for a empowered India.