New Corporate Social Rsponsibility (CSR) rules #UPSC

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CSR stands for Corporate Social Responsibility and almost every country has its own CSR. Government said to big industries that it is good that you are paying taxes but, from now onwards you have some responsibility towards our society and you should do something for its improvement like making Hospitals, Building Schools as social responsibility. We only expect such things from Big companies.
In India, CSR is mandatory now and big companies should donate in making our society better. The Indian Companies Act 2013, clearly states that companies should do something for our society and become as a major responsibility for big companies. Other countries only expect these responsibilities from big companies but in India, CSR is mandatory now.

Now the question arises that in which area companies should donate so the government of India has given the list in which Companies can invest-
  • Donation in the field of Education like donation for building schools,
  • Hunger or Poverty
  • Donating Medicine,
  • Gender Equality Promotion,
  • Helping slum areas people
  • Rural areas development like construction of roads,
  • Helping war widows and their dependents,
  • Contribution towards technology, 
  • Promoting sports,
  • Environmental.

CSR(Corporate Social Responsibility) are mandatory for any big industry in India. Companies whose turnover is more than or equal to 1000 crore or Profit of 5 crore or at least they should donate 2% of their net profit towards our society. These changes were mentioned in Indian Companies Act,2013.
As we are getting relief from Corporate Tax so, our Finance Minister Nirmala Sitharaman changed some rules of CSR(Corporate Social Responsibility). Spending norms has amended a pave way for greater investment into research. India's spending in R&D(Research and Development) is very less. 1% or less than 1% portion of GDP(Gross Domestic Product) is invested in R&D(Research and Development) sector. From now onwards big companies have to invest in R&D sector but it has a link with government sector.

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