2019 – Posted in: Daily News – Tags: Companies Act

CORPORATE SOCIAL RESPONSIBILITY

For: Mains

Topics covered: Recommendations of the High-level committee

The High-Level Committee on Corporate Social Responsibility (CSR) has recommended:

Make Corporate Social Responsibility expenditure tax-deductible.
Violation of CSR compliance may be treated as a civil offence that attracts penalties.

The other recommendations include allowing the carry-forward of unspent balance for a period of 3-5 years and aligning Schedule 7 of the Companies Act (which outlines the kinds of activities that qualify as CSR) with the United Nations Sustainable Development Goals.
The Committee has also recommended that companies having CSR-prescribed amounts below ₹50 lakh may be exempted from constituting a CSR Committee.
The report also recommends balancing local area preferences with national priorities when it comes to CSR.
It also recommended the introduction of impact assessment studies for CSR obligations of ₹5 crore or more.
It also recommends the registration of implementation agencies on the Ministry of Corporate Affairs portal.
The other recommendations include developing a CSR exchange portal to connect contributors, beneficiaries and agencies, allowing CSR in social benefit bonds, promoting social impact companies, and third-party assessment of major CSR projects.

The High-Level Committee on CSR was constituted in October, 2018 under the Chairmanship of Secretary (Corporate Affairs).
It assigned with a task to review the existing CSR framework and make recommendations on strengthening the CSR ecosystem, including monitoring implementation and evaluation of outcomes.

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