Corporate Social Responsibility (CSR) is an ongoing and persistent commitment by businesses to integrate and achieve a balance of economic, social and environmental imperatives, while meeting the expectations of shareholders and stakeholders. Prior to the enactment of the Companies Act 2013, by the Ministry of Corporate Affairs, Government of India, CSR in India had solely been a philanthropic activity.
The Ministry of Corporate Affairs amended the Companies Corporate Social Responsibility Policy (CSR) Rules 2014, through a notification on 22 January. While changes have been made to provide a framework for implementation of new provisions of the Companies (Amendment) Act 2019 and 2020, the focus is on the CSR definition and its consequences.
The amended rules have brought significant changes in implementation of the CSR initiatives and also introduced new concepts that include mandatory impact assessment and registration by NGOs undertaking CSR activities.
While it is crucial for companies to review and align their existing CSR activities to the amended rules under the Companies law, this report explains the impact that these changes would have on an organisation.