Bvokal gave an insight into CSR policies and amendments in India. The spokesperson of the company provided in-depth details about CSR policy in India.
With the pivotal amendment to the Companies Act in April 2014, India became the world's first country to mandate Corporate Social Responsibility (CSR). This transformative legislation empowers companies to allocate profits toward vital societal issues such as education, poverty alleviation, gender equality, and hunger.
COVID-19 Response:
In a proactive move, the Ministry of Corporate Affairs recognizes COVID-19 expenses as valid CSR activities, encompassing healthcare promotion, sanitation, preventive healthcare, and disaster management.
Mandatory CSR Regulations:
The Companies Act's 2013 amendment mandates companies meeting specific financial thresholds to allocate 2 percent of their average net profits over three years to CSR.
Before this transformation, CSR participation was voluntary but required CSR spending disclosure. CSR encompasses a variety of projects aligned with the Companies Act or recommended by the CSR Committee.
Companies (Amendment) Act, 2019:
The 2019 amendment introduced refinements to CSR regulations. It mandates companies to deposit unspent CSR funds into a designated fund by the fiscal year's end, with a three-year utilization window. The Act prescribes penalties for non-compliance, including fines and potential imprisonment for defaulting officers.
CSR evaluates an organization's impact on society, and its responsibilities to customers, suppliers, the environment, communities, and employees. Successful CSR initiatives prioritize sustainable investments that uplift marginalized communities and protect the environment while ensuring regulatory compliance.
In India organizations have proactively embraced CSR, establishing dedicated departments, strategies, and budgets for responsible and sustainable community engagement.
Since mandatory CSR provisions were introduced in 2014, corporate India has witnessed substantial growth in CSR spending.
Listed Indian companies allocated huge funds to diverse programs, CSR, and foundations including education, skill development, social welfare, healthcare, and environmental conservation. Notably, the Prime Minister's Relief Fund recorded a remarkable 139 percent increase in CSR contributions within a year.
Educational initiatives received the highest funding at 38 percent of the total, followed by hunger, poverty, and healthcare at 25 percent, environmental sustainability at 12 percent, and rural development at 11 percent. Initiatives like technology incubators, sports, support for the armed forces, and reducing inequalities received nominal contributions.
As the industry adapts to evolving CSR regulations, industry research estimates a significant surge in CSR compliance in the coming years.
CSR is today a very important aspect of Indian organizations. Companies are focusing on CSR activities and for this, they require a platform where they can connect with people with similar visions and Bvokal happens to be this platform.
About the company:
Bovkal is a social network for social work. It connects organizations, NGOs, volunteers, and beneficiaries. For more information check https://www.bvokal.com/