April 2014, The Ministry of Corporate Affairs notified Section 135 and Schedule VII of the Companies Act 2013 and the companies (CSR Policy) Rules, 2014 came into an effect.
Company Act 2013 made CSR (Corporate Social Responsibility) a mandate for the corporates with a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore.
They are required to set up a CSR board committee and ensure at least 2 percent of the average net profits of the company from three immediate financial years is spent for the altruistic purpose. For upliftment of society. Changing lives. Showing care and compassion. Sans any expectations.Maybe goodwill for brand and trust in it. A great ROI that would be!
This means close to Rs. 150 billion rupees is available, to be spent annually on the altruistic purposes. How does one ascertain if the mandate has been followed with the intent it was established with? Here was an opportunity to explore.
How does one ascertain the mandate has been followed with the intent it was established with? There is an opportunity to explore it further.
I was intrigued.
Thus began the journey, to understand the CSR initiatives of corporates actively supporting causes like education, health, environment, sustainability etc. NGOs that act as the catalyst in the process. And the story of transformation, from the ones who gained from the vision behind this dream.
Watch this space for more!