Corporate Social Responsibility (CSR) is a concept whereby organizations consider the interest of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities, and other stakeholders as well as the environment.

Nowadays’ companies adopt CSR for various benefits like:

1) Securing strong relationship with stakeholders,

2) To increase attractiveness to investors,

3) Create a better & stimulating work environment,

4) To improve organization effectiveness,

5) Create & maintain high reputation

Companies Act 2013

  • Companies responsibility towards the community and environment in which it operates.
  • CSR is not charity or mere donation . CSR is a way of conducting business , by which corporate entities visibly contribute to the social good.
  • The Companies Act, 2013 has formulated section 135, Companies (Corporate Social Responsibility) Rules , 2014 and Schedule VII which prescribes mandatory provisions for companies to fulfil their CSR .

Corporate social responsibility

Companies Required to constitute CSR Committee

Net worth__


3. Net Profit:

Exclusion of Companies:

Composition of CSR Committee:

Companies (CSR Policy) Rules, 2014
Boards’ Report is required to disclose the composition of CSR Committee
S.NO Type of company CSR Committee member
1 Companies which does not fall under below categories (S.No 2-4) 3 or more director, out of which one shall be Independent director
2 Company not required to appoint an Independent Director as per section 149 (1) Two director
3 Private Company having only 2 Director in it’s board Two director
4 Foreign Company covered under this rules Two person (one resident of India and the other shall be nominated by the foreign company)

Duties of the CSR Committee:

Content of CSR Policy:

Proviso relating to Content of CSR Policy:

Duties of the Board in relation to CSR:

Contribution towards  CSR


CSR Activity:

CSR activity Through Trust/ Society/ Section 8 company:

Projects or Programs not considered as CSR Activities:


Some of the Activities specified under Schedule VII:

Schedule VII Being Continued:

Penal Provisions:

MCA: General Circular 21/2014


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Qualification: Student - CA/CS/CMA
Company: Varma & Varma
Location: Chennai, Tamil Nadu, India
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June 2021