Corporate Social Responsibility (CSR) in India is governed by the Companies Act, 2013. According to this act, companies with a net worth of at least INR 500 crore, turnover of at least INR 1,000 crore, or net profit of at least INR 5 crore in a financial year are required to spend at least 2% of their average net profits from the preceding three years on CSR activities.
The activities that qualify as CSR include promoting education, eradicating hunger and poverty, promoting gender equality, environmental sustainability, and more. The law also requires companies to form a CSR committee consisting of at least three directors, one of whom must be an independent director.
The CSR activities undertaken by companies are monitored by the Ministry of Corporate Affairs, and companies are required to report their CSR activities in their annual reports. Non-compliance with CSR obligations can result in penalties, including fines and legal action.
Overall, the CSR law in India is aimed at encouraging companies to take responsibility for their impact on society and to promote sustainable development.