Knowledge quest magazine

knowledge questions magazine Published this article page no 92 Applicability A company satisfying any of the following criteria during the immediately preceding financial year is required to comply with CSR provisions o Net worth of rupees five hundred crore or more or o Turnover of rupees one thousand crore or more or o Net profit of rupees five crore or more. These companies are required to spend a minimum 2% of its average net profit for its preceding three financial years’ amount on CSR activities. These companies are also required to form a CSR committee to oversee the entire CSR activities of the Company. o Role of CSR committee Formulate CSR policy recommend the amount of expenditure to be incurred and monitor CSR policy of the company from time to time. They must also oversee the systematic development of a set of processes Key Facts related to CSR spending in FY 21 Companies spent a total of8828 crores in FY21 on CSR roughly a third of what they had spent in the prepandemic year of FY20 at24689 crores. Number of companies engaged in CSR activities dropped by about 93% on an annualised basis in 2020 21 compared to a year ago. The combined expenditure of staterun firms in 2020 21 was a mere 6% of the total amount spent on CSR activities while private firms contributed 94%. 32 Suggested Areas of Activities (as per Schedule VII of the act) include inter alia Eradicating hunger poverty and malnutrition promoting education promoting gender equality ensuring environmental sustainability protection of national heritage art and culture Rural development projects and Slum area development. Challenges in CSR Failure to Consider Holistic View Companies still have a narrow perception of CSR. They fail to understand that CSR has impact on mostly all of the stakeholders of the company and it impacts both society and the environment as a whole. o The business should embrace CSR in their business operations and should clearly identify the areas of priority and investment. o Due to a lack of strategic planning proper experimentation innovation and engagement companies aren't able to make a meaningful impact on their CSR efforts. Lack of Community Participation There is a lack of interest of the local community in participating and contributing to CSR activities which is largely attributable to little or no knowledge about CSR within the local communities. o The situation is further aggravated by a lack of communication between the company and the community at the grassroots knowledge questions in english buy.

Knowledge quest magazine