What are CSR (Company Social Responsibility) Policy and Its applicability?

“CSR Policy” is a statement which containing the approach and direction given by the board of a company, for doing the activities in areas or subjects specified in Schedule VII of the Act. Activities which may be included by companies in their Corporate Social Responsibility Policies Activities relating to:—

(i) eradicating extreme hunger and poverty;

(ii) promotion of education;

(iii) promoting gender equality and empowering women;

(iv) reducing child mortlity and improving maternal health;

(v) combating human immunodeficiency virus, acquired immune deficiency

syndrome, malaria and other diseases;

(vi) ensuring environmental sustainability;

(vii) employment enhancing vocational skills;

(viii) social business projects;

(ix) contribution to the Prime Minister’s National Relief Fund or any other

fund set up by the Central Government or the State Governments for

socio-economic development and relief and funds for the welfare of the Scheduled

Castes, the Scheduled Tribes, other backward classes, minorities and women; and

(x) such other matters as may be prescribed.

Applicability of CSR (Corporate Social Responsibility)

Every company having

  1. Net worth of Rs. 500 crore or more

2. Turnover of Rs. 1000 crore or more

3. Net profit of Rs. 5 crore or more during any financial year