CSR – A Compliance Responsibility of Implementing and Reporting

1. Introduction

Good Corporate Governance and Corporate Responsibility are inter-woven. Adherence to the compliance of various provisions of the law creates a brand image of a company. A successful organisation recognizes its responsibility, and duty towards its various stakeholders. Corporate Social Responsibility (CSR) is the way companies manage their businesses to produce an overall positive impact on society through economic, environmental and social actions. CSR covers wide range of areas such as community investment, workplace diversity and inclusivity, human rights and supply chain management, health and safety, environmental management and climate change, ethics, morality and integrity.

1.1. Meaning of CSR

CSR means the activities undertaken by a Company in pursuance of its statutory obligation laid down in section 135 of the Companies Act , 2013 in accordance with the provisions contained in these rules.

Any company engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business may undertake research and development activity of new vaccine, drugs, and medical devices related to COVID-19 for financial years 2020-21, 2021-22, 2022-23 subject to the conditions that-

such research and development activities shall be carried out in collaboration with any of the institutes or organisations mentioned in item (ix) of Schedule VII to the Act ;

details of such activity shall be disclosed separately in the Annual report on CSR included in the Board’s Report;

1.2. The following activities shall not be part of the CSR activities:

Activities are undertaken in pursuance of the normal course of business of the company.

Any activity undertaken by the company outside India except for training of Indian sports personnel representing any State or Union territory at national level or India at international level;

Contribution of any amount directly or indirectly to any political party under section 182 of the Act ;

Activities benefitting employees of the company as defined in clause (k) of section 2 of the Code on Wages, 2019 (29 of 2019);

Activities supported by the companies on a sponsorship basis for deriving marketing benefits for its products or services;

Activities carried out for the fulfillment of any other statutory obligations under any law in force in India;

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