COMPANY LAW
ASSIGNMENT
NAME-PREM KUMAR
ROLL NO.-24BC311
SEM-2
SECTION-F
TUTE-F2
SUMBITTED TO-ABHAY
JAIN SIR
CORPORATE SOCIAL
RESPONSIBILITY
Corporate social responsibility or corporate social impact is a form of international private
business self-regulation which aims to contribute to societal goals of a philanthropic, activist,
or charitable nature by engaging in, with, or supporting professional service volunteering
through pro bono programs, community development, administering monetary grants to non-
profit organizations for the public benefit, or to conduct ethically oriented business and
investment practices.
Businesses may engage in CSR for strategic or ethical purposes. From a strategic perspective,
CSR can contribute to firm profits, particularly if brands voluntarily self-report both the
positive and negative outcomes of their endeavors. CSR strategies encourage the company to
make a positive impact on the environment and stakeholders including consumers,
employees, investors, communities, and others. for example, the CEO of outdoor-apparel
company Patagonia, Inc. Argues that harming the environment is ethically objectionable.
Legal Provisions for CSR – Section 135, Companies
Act 2013
Under Section 135 of the Companies Act, 2013, CSR compliance becomes mandatory for
companies that meet certain financial thresholds. These conditions ensure that only
companies with significant financial capacity are required to spend on CSR.
CSR becomes applicable to a company if it meets any one of the following conditions in a
financial year:
1. Net Profit is ₹5 crores or more,
2. Net Worth is ₹500 crores or more, or
3. Annual Turnover is ₹1,000 crores or more.
Once any of these thresholds are crossed, CSR becomes compulsory for the next three
financial years, even if the company doesn’t meet the threshold in the following years. This
ensures companies don’t escape CSR obligations due to short-term financial changes.
CSR Spending Requirements
Once a company is covered under CSR obligations, it must spend a minimum of 2% of its
average net profits made during the three immediately preceding financial years. This rule
ensures that CSR spending is consistent and not just a one-time effort.
For companies that are less than 3 years old, the average of last 1 or 2 years is used for
calculating CSR expenditure.
If the CSR amount to be spent exceeds ₹50 lakhs (₹5 million) in a financial year, then it is
mandatory for the company to form a CSR Committee.
This committee must include at least 3 directors, and at least 1 director must be independent
(i.e., someone who is not part of the company’s management).
Exceptions:
Some companies are exempt from the independent director rule:
Private companies with only 2 directors
Foreign companies (they can follow different governance structures)
Companies that are not required to appoint independent directors under other provisions of
the Act
Duties of the Company’s Board (Directors)
The Board of Directors has the ultimate responsibility to make sure CSR is actually done, not
just planned. Their duties include:
1. Approving the CSR Policy proposed by the CSR Committee
2. Disclosing the CSR policy and the amount spent in the company’s annual report
3. Publishing the details of CSR projects and policy on the company’s website
4. Ensuring the CSR activities are executed properly and money is spent as planned
5. Monitoring progress and being transparent about any deviations
Other Important Points
Spending on CSR at Local Levels:
These activities must be undertaken in or around the location of the registered office of an
organization. This is helpful in the development of the area and more closely ties the
company with locals.
Cap on Admin Expenses (5% Rule):
An organization cannot spend more than 5% of the total CSR cost for administrative
expenses, such as CSR staff salaries, office expenses, and tracking expenses. This is to ensure
that majority are directly implemented into CSR projects that are beneficial to society.
Surplus CSR Spending:
If in a particular year, the company spends more than the required CSR amount, then they can
set off such excess amount in the next 3 years of finance. However, this excess amount
cannot be an excess or profit earned on the CSR project. Moreover, the said plan must be
approved by the board of directors of the company.
If Company Fails to Spend CSR:
If the funds cannot be spent by the company, reasons for the same must be shown
satisfactorily. When unspent funds pertain to an ongoing or long-term project, they are to be
transferred into a special government fund (see Schedule VII) within six months.
Allowed CSR Activities (Schedule VII)
These are the types of projects companies can support as part of their CSR:
1. Hunger & Health:
Initiatives designed to combat hunger alongside malnutrition and poverty. The provision of
clean drinking water along with sanitation initiatives such as Swachh Bharat and healthcare
services form essential components.
2. Education:
The creation of educational institutions together with the distribution of scholarships and the
enhancement of both education systems and learning environments.
3. The Intersection of Gender Parity with Senior Care Systems:
Initiatives that strengthen women's rights while supporting elder residences and offering
orphan hostels alongside senior citizen day-care facilities.
4. Environment:
The Clean Ganga mission along with eco-friendly habit promotion and animal protection
work combine with tree planting activities.
5. National Heritage & Culture:
The activities of museum support combined with historic building preservation and arts and
cultural event promotion.
6. Armed Forces Support:
The provision of financial support and welfare programs to assist army veterans along with
war widows and their families.
7. Sports Promotion:
Through athlete training and sponsorship programs, sports development occurs across rural
areas and national platforms including the Olympics and Paralympics.
8. National Relief Funds:
Participation in financial support programs such as the Prime Minister’s National Relief Fund
and sanctioned disaster relief initiatives.
9. Research & Education (Science Focus):
Allocating financial resources to research institutions and scientific initiatives while
providing support to leading public universities such as the IITs.
10. Rural Development:
The construction of transportation networks alongside healthcare facilities combined with
employment opportunities in rural regions aims to enhance living standards.
11. Slum Area Development:
The enhancement of living conditions in slum areas emerges through the development of
housing and sanitation facilities.
12. Disaster Management:
The administration of relief and rehabilitation efforts occurs during floods, earthquakes, and
other natural disasters.
BAJAJ AUTO
Bajaj Auto, a leading Indian automotive manufacturer, has demonstrated
a strong commitment to CSR through various initiatives:
- Bajaj Engineering Skills Training (BEST): In collaboration with top
universities, Bajaj Auto has established state-of-the-art centers to provide
hands-on training in engineering and manufacturing skills.
- Bajaj Manufacturing Systems (BMS) Certification Program: This program
imparts industry knowledge to ITI and polytechnic students through a
user-friendly Learning Management System.
- Lighthouse Communities Foundation: Focused on building inclusive
communities, this initiative enhances employment opportunities through
vocational skilling and training for setting up mini enterprises.
- Scholarships for Higher Education: The ‘Rupa Rahul Bajaj Scholarship
Program’ aids students from underprivileged backgrounds in pursuing
higher education at esteemed universities and colleges.
- Bharatiya Yuva Shakti Trust (BYST): This program assists underprivileged
young entrepreneurs by providing supplementary financing and
personalized guidance from mentors.
- Youth Organization for Joining Action and Knowledge (YOJAK): YOJAK
offers a platform tailored to the needs of disadvantaged students,
particularly girls, empowering them with essential skills for pursuing
careers in STEM fields.
- Foundation of Advancing Science and Technology (FAST): FAST engages
and inspires Indian youth with the wonders of scientific exploration,
focusing on cultivating a vibrant science culture.
ITC Limited is a big Indian company based in Kolkata. It runs different businesses in six
areas: FMCG, agribusiness, IT, paper products, packaging, and hotels. This company is
India’s second-largest FMCG firm and the world’s third-biggest tobacco company. It gets
most of its money from selling tobacco products.
ITC started in 1910 and now has over 36,000 workers. Its products are in 6 million shops
across India and go to 90 countries. The company made ₹795.68 billion (about US$9.4
billion) in revenue and ₹207.51 billion (about US$2.5 billion) in net income for FY2024.
ITC’s efforts in sustainability have gained recognition due to its approach to carbon and water
management as well as its recycling of solid waste. The company helps over 6 million people
in rural India, to make a living in a sustainable way. ITC’s business includes well-known
FMCG brands, along with paperboards, specialty papers, packaging solutions, agribusiness,
IT services, and a large hotel chain. This chain has 140 hotels in 80 different places.
Years
Year Amount Amount Spent Extra information
allocated(2% of NP)
2019-2020 306 crore 308 crore Excess spent-2 crore
2020-2021 342 crore 345 crore Excess spent-3 crore
2021-2022 374 crore 378 crore Excess spent-4 crore
2022-2023 392 crore 395 crore Excess spent-3 crore
2023-2024 407.43 crore 404.05 crore Excess spent-0.58
crore
Activities-wise Spending
Sr no. CSR Activity 2019- 2020- 2021- 2022- 2023-
2020 2021 2022 2023 2024
1 Eradicating Hunger 1 1 1 1 1
2 Education, Vocational 1 1 1 1 1
Training, and Livelihood
3 Gender Equality & 1 1 1 1 1
Women Empowerment
4 Environmental 1 1 1 1 1
Sustainability
5 Protection of National 0 0 1 1 1
Heritage, Art & Culture
6 Measures for Armed 0 0 0 0 0
Forces Veterans
7 Promoting Sports 0 1 0 1 0
8 Contributions to PMNRF / 1 1 0 0 1
PM CARES Fund
9(a) Contributions to Public 0 0 0 0 0
Universities
9(b) Contributions in 0 1 1 1 1
Incubators or R&D
Projects
10 Rural Development 1 1 1 1 1
Projects
11 Slum Area Development 0 0 0 0 0
12 Disaster Management 1 1 1 0 0
Analysis
ITC Ltd. Demonstrated a significant and comprehensive commitment to Corporate Social
Responsibility (CSR) with its investments averaging ₹350 to ₹400 crores each year from
2019-20 to 2023-24, fulfilling the 2% net profit criteria set out under Section 135 of the
Companies Act, 2013. During this period, ITC’s CSR initiatives were established in high-
impact areas including: rural development; education; sanitation; health; and environmental
sustainability. The company continued to invest in its flagship initiatives like e-Choupal,
which empowers over 4 million farmers in 35,000 rural locations through digital platforms,
and Mission Sunehra Kal, which focuses on water stewardship, sustainable livelihoods and
market-based economic inclusion. In addition, ITC’s Health and Sanitation Initiative
functioned as an essential tool for building awareness around hygiene, and refurbishing toilet
facilities within underserved population locations to ensure positive measurable action that
could bring visible change to local communities.
ITC’s CSR response during national emergencies was especially impressive. In FY 2020–21
(in the height of the pandemic) ITC made a big donation to the PM CARES Fund and also
donated very large amounts of medical relief like ventilators, PPE kits and created mobile
sanitization units during a time of great need to many in the arts community. Each year
continued to bring new areas for consideration such as assistance for armed forces veterans
and various forms of slum area development, and evidence of a consciousness of the
continuing marginalization within communities. By FY 2023–24, ITC’s CSR reported on
every one of the 12 activity heads encompassed under Schedule VII, demonstrating both
depth and scale of execution. With other notable highlights including over 42,000 acres of
land reforested and afforested under its Social Forestry Programme and tens of thousands of
students assisted through its Primary Education Programme, ITC has evidenced its CSR both
as a statutory compliance aspect of reporting but also a vital component of a sustainability-
driven growth strategy.
GODREJ GROUP
Godrej Group has been actively involved in various CSR initiatives aimed
at community development and sustainability:
- Godrej DISHA: This initiative focuses on vocational training aligned with
the company’s business needs, encompassing areas from sales through
technical aspects, including digital skills.
- Education Initiatives: Godrej has worked on improving school
infrastructure, providing scholarships to underprivileged engineering
students, and enhancing learning outcomes through e-learning facilities
and teacher capacity building.
- Environmental Sustainability: The company has undertaken projects
related to water recharge, water body rejuvenation, wastewater
management, and afforestation activities.
- Health & Sanitation: Godrej has supported preventive healthcare for
women, access to safe drinking water, and community-based solid waste
management.
- Livelihood Programs: The company has assisted in creating new small-
scale enterprises for youth and women-led enterprises, ensuring
continued support for small-scale enterprises created in the past.
The Aditya Birla Group stands as India’s biggest and most esteemed multinational conglomerate, with
deep connections in more than 36 countries spanning six continents. Based in Mumbai, the group
operates in various sectors including metals cement (leading the Indian market), textiles, carbon
black, telecom financial services, and retail. Seth Shiv Narayan Birla started the company in the
1850s, and Aditya Vikram Birla later expanded it . Today, the group represents reliability
groundbreaking ideas, and long-term growth.
Led by Chairman Kumar Mangalam Birla’s vision, the group has set the bar for business excellence
while remaining dedicated to inclusive growth. Its CSR arm—Aditya Birla Centre for Community
Initiatives and Rural Development, with Mrs. Rajashree Birla as chair—oversees hundreds of non-
profit ventures in education, healthcare sustainable livelihoods, and women’s empowerment. These
actions align with the group’s belief that profits should go hand in hand with purpose making it both a
business giant and a positive influence in society.
Year Amount allocated Amount Spent Extra information
(2% of NP)
2019-2020 300 crores 305 crores 5 crores
2020-2021 325 crores 330 crores 5 crores
2021-2022 340 crores 340 crores Fully utilised
2022-2023 355 crores 352 crores Surplus 3 crore carried
forward
2023-2024 370 crores 368 crores Minor under spending
Activities-wise Spending
S no. CSR Activity 2019- 2020- 2021- 2022- 2023-
2020 2021 2022 2023 2024
1 Eradicating Hunger 1 1 1 1 1
2 Education, Vocational 1 1 1 1 1
Training, and Livelihood
3 Gender Equality & 1 1 1 1 1
Women Empowerment
4 Environmental 1 1 1 1 1
Sustainability
5 Protection of National 0 0 1 1 1
Heritage, Art & Culture
6 Measures for Armed 0 0 0 1 1
Forces Veterans
7 Promoting Sports 1 1 1 1 1
8 Contributions to PMNRF / 1 1 0 1 0
PM CARES Fund
9(a) Contributions to Public 0 0 1 1 1
Universities
9(b) Contributions in 0 1 1 1 1
Incubators or R&D
Projects
10 Rural Development 1 1 1 1 1
Projects
11 Slum Area Development 0 0 1 1 1
12 Disaster Management 1 1 1 1 1
Analysis
The Aditya Birla Group depicted fine-tuned CSR initiatives aligning persistently with Section
135 of the Companies Act, 2013, throughout the five-year term from 2019–20 to 2023–24.
The primary areas such as hunger, education, eco-sustainability, women, rural development,
and disaster reduction, have been getting the center stage attention and the Group has been
following them at the same proportions year by year. Consider that large-scale programs like
the Aditya Birla Rural Health Programme and Nand Ghars (for women and child welfare) had
been continuous over these five years. These programs only express the real commitment of
the Group in trusting the public and making them self-sustainable. In financial compliance,
the company has been giving approximately ₹300–₹370 crores every year, which means that
it has always been putting at least 2% of its net profit in the direction of CSR every year.
The Group’s agility in responding to new challenges is reflected in its focused interventions
during the COVID-19 situation. In 2020–21 and further in 2022–23, the Group supported the
national response by contributing to the PM CARES Fund and also initiated support for
health infrastructure using mobile clinics and isolation centers. The adoption of newer
categories of CSR in a systematic way, including support to armed forces, and slum area
development, during these later years, demonstrates a flexible and inclusive CSR model.
These transitions demonstrate the commitment of the Group to not only statutory compliance,
but also to achieve legitimate partnerships for social impact. Through high-impact initiatives
like Project Udaan (for youth skill development) and Sashakt Gaon (for rural transformation),
Aditya Birla Group has further re-iterated its leadership in social responsibility as a corporate
entity with a strong feel of India’s development journey.
CONCLUSION
The CSR initiatives of the Aditya Birla Group and ITC Limited show just how seriously
those companies take their responsibility to the community and the environment. Both have
gone above and beyond what the law requires-they've woven CSR into the very fabric of their
philosophy and operations.
That's thanks in large part to the Aditya Birla Centre for Community Initiatives and Rural
Development, where they've made real progress in areas like rural development, healthcare,
education and women's empowerment. That commitment is more than just charity-it's a
strategic decision to create thriving communities around their operations. That way, they can
drive inclusive growth and social stability.
ITC Limited has shown the same kind of unwavering commitment to sustainability and
environmental conservation. Its work in afforestation, climate-smart agriculture, waste
management and vocational training is impressive-and scalable. ITC's CSR initiatives line up
perfectly with its vision of "nation building"-using its business strengths to empower
underprivileged communities while tackling environmental concerns.
What you see in these two companies is what CSR can really achieve when done with
sincerity and purpose. By investing in people, the planet and partnerships, they're not just
industry leaders-they're also models of responsible corporate citizenship in India.
Sources:
https://www.cms.adityabirla.com/uploads/ESG_performance_report_7ce0f6974f.pdf
https://www.adityabirlacapital.com/investor-relations/sustainability-reports
https://www.adityabirla.com/en/community/our-strategy/
https://en.wikipedia.org/wiki/Aditya_Birla_Group
https://www.itcportal.com/sustainability/itc-sustainability-report-2024/
https://www.itcportal.com/sustainability/sustainability-integrated-report-2023/
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