Corporate Stricter Responsibility

In the year 2014, Corporate Social Responsibility (CSR) was, for the first time, introduced as an obligation for Indian companies. This was done with the objective that the companies do not restrict themselves from utilizing their resources to increase revenue and profits, but are also socially responsible toward stakeholders, consumers, employees, and the society at large. With such introduction, reportedly, India also became the first country to legislate and mandate CSR programs for certain companies.

As per the statutory requirement, CSR-related provisions are applicable to companies with a net worth of Rs.500 crores or more or turnover of Rs.1000 crores or more, or a net profit of Rs.5 crores or more during the immediately preceding financial year.