Towards A Stronger Indian CSR Regime: Key Changes Effected By The CSR Amendment Rules 2022

The Companies Act, 2013 (Companies Act) was the first legislation to require eligible companies (a) to form board level committees to focus on corporate social responsibility (CSR Committee); (b) to formulate a corporate social responsibility policy; and (c) to spend 2% of average net profits of the company on corporate social responsibility (CSR). Introduced as a "comply or explain" model, it was soon morphed into a mandatory obligation. What constitutes the discharge of social responsibility and what does not, has been debated and discussed over past few years. The government's endeavour, based on empirical evidence and ground realities, has been to balance the societal expectations and compliance.