| CSR Framework It applies to companies, including foreign companies with a branch or project office in India, meeting specific thresholds: ₹500 crore net worth or ₹1,000 crore turnover or ₹5 crore net profit They must spend 2% of average net profits on activities like education, poverty eradication, and sustainability. |
- India became the first country to mandate CSR under Section 135 of the Companies Act, 2013.
- According to the National CSR Portal, from 2014 to 2023, ₹1.84 lakh crore was disbursed in CSR funds.
- According to an outlook report prepared by a CSR platform last year, 23% of companies surveyed had “environment and sustainability” as their CSR priority area.
- Key contributions of CSR activities include grain banks and farmer schools, water conservation and energy-efficient irrigation projects, livelihood projects and agro-based initiatives.
- Agriculture employs 47% of the population and contributes 16.73% to GDP.
- Agriculture-related activities span 11 of the 29 sectors in Schedule VII of the Companies Act, making it difficult to assess agriculture-specific funding.
- No dedicated framework to track agriculture-focused CSR initiatives.
- There is a need to identify agriculture as a distinct sector in CSR reporting to enhance transparency and impact.
| Corporate social responsibility (CSR) It is a self-regulating business model that helps a company to be socially accountable. By practising CSR, companies can be conscious of the impact they are having on economic, social, and environmental factors. Engaging in CSR means that a company is operating in ways that enhance society and the environment. |
Dig Deeper: Read about reforms in CSR norms in recent times.
