By: Eduvisors Research Team
The New Companies Bill was passed in Rajya Sabha in August 2013, and has also been granted presidential assent. The bill was passed in the lower house of Parliament, Lok Sabha, in December 2012. With around 193 recommendations made in the Bill, the New Companies Bill will replace the Companies Act of 1956.
One of the key recommendations that has been made in the New Companies Bill is the mandatory requirement for certain class of companies to spend a minimum of 2% of their average profits in the preceding three years on Corporate Social Responsibility (CSR) related activities. With the passing of the Bill, India will be one of the few nations in the world which has a clause for mandatory spend on CSR.
While there are corporations in India, which are actively involved in implementing CSR initiatives; the number of such firms is limited. With the passing of the New Companies Bill, it will be imperative for corporations in India to focus on building the capability to formulate and implement a strong CSR Policy.
This document is for corporates, CSR professionals, NGOs and any other stakeholders who would be interested in understanding the current status of CSR in India. The following areas have been covered in this document:
1. What is Corporate Social Responsibility?
2. Understanding the Companies Bill, 2012
3. Current status of CSR in India
4. CSR in education