CORPORATE SOCIAL RESPONSIBILITY (CSR)

Corporate Social Responsibility (also known as Corporate Citizenship) means the responsibility taken by
the companies or the corporates towards the betterment of society as a whole. Companies undertake
these activities for upgradation in the lives of the people.

A large number of activities are undertaken by the companies under the umbrella of CSR. Few of these
activities are:

 To promote education in society.

 To organize programs designed to enhance the vocational skills among people.
 To promote health care and sanitation.
 To organize seminars and programs in order to educate people about the environment and
sustainable development.
 Setting up of orphanages, old age homes and daycare centres.
 Promote training for sports
 To contribute during the times of natural calamities like earthquakes, droughts and floods.
 To promote programmes and schemes for poverty alleviation, eradication of hunger, providing
safe drinking water, health care measures, rural development programs.
 To promote infrastructure development for building schools, hospitals, sports training
complexes, etc.

CSR Committee: As per the CSR Rules, each and every Company on which CSR provisions are applicable
needs to form a CSR committee of the Board which,

Shall constitute 3 or more Directors, out of which at least one of the Directors shall be an Independent
Director.

 In case of a foreign company at least two persons should be there in the committee of which one
person shall be an authorized person, resident in India and the second one should be nominated by the
Company itself.

In the case of Private Company having only two directors, the committee shall also be constituted having
2 Directors.

Roles Played By the CSR Committee:To plan and approve CSR strategies.To allocate the budget for CSR
activities.To access the performance of the CSR policy of the Company.Monitor the implementation of
CSR projects in a more transparent manner and a better way.To ensure that at least 2% of the average
profits of the Company, made during the three immediately preceding financial years are spent in CSR
Activities, in every financial year.

The CSR Rules also states that the Board of Directors of the Company shall disclose the contents of the
CSR policy in its report, and it shall also be displayed on the website of the Company.