"Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large"
On April 1, 2014, India became the first country to legally mandate corporate social responsibility. The new rules in Section 135 of The Indian Companies Act 2013, make it mandatory for companies of a certain turnover and profitability to spend two percent of their average net profit for the past three years on CSR. Businesses can invest their profits in areas such as education, environment, healthcare, gender equality, poverty, sanitization, skill development and women empowerment mentioned in Schedule VII of the act, as part of CSR compliance.
Entities covered under the CSR Act:
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