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State the meaning of Corporate Social Responsibility as per the Companies Act 2013.

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Question

State the meaning of Corporate Social Responsibility as per the Companies Act 2013.

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Solution

Corporate social responsibility in general refers to the responsibilities and duties of the businesses towards the society. The Corporate Social Responsibility in India as governed by the Companies Act, 2013 (under Clause 135) applies to those companies which have an annual turnover of Rs. 1,000 crore and more, or those having a net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crore and more. The meaning of CSR as per Companies Act, 2013 can be understood with the help of the activities that can be undertaken by the companies as per the Schedule under the Companies Act which include eradicating extreme hunger and poverty, promoting gender inequality and empowering women, ensuring environmental sustainability, etc.

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Chapter 6: Social Responsibilities of Business and Business Ethics - Short Answer Questions [Page 159]

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NCERT Business Studies [English] Class 11
Chapter 6 Social Responsibilities of Business and Business Ethics
Short Answer Questions | Q 6 | Page 159

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