Context:
The Ministry of Ports, Shipping & Waterways launched ‘Sagar Samajik Sahyog’ – the new guidelines of Corporate Social Responsibility (CSR).
About the News Guidelines:
- Objectives
- To empower ports to undertake CSR activities directly
- To allow ports to initiate, undertake and expedite projects for community welfare through a framework where local communities can also become partners of development & change.
- CSR Committee:
- For the purpose of planning and implementing CSR projects, a Corporate Social Responsibility Committee shall be constituted in each major port.
- The Committee shall be headed by the Dy. Chairperson of the Major Port and shall have 2 other Members.
- CSR Plan: Each major port shall prepare a Corporate Social Responsibility Plan for every financial year, and integrate its CSR in the Business Plan with the social and environmental concerns related to the business of the entity.
- CSR Budget will be mandatorily created through a Board Resolution as a percentage of net profit.
- Expenditure :
- 20% of CSR expenses must be earmarked to Sainik Kalyan Board at district level, National Maritime Heritage Complex and National Youth Development Fund.
- 78% of funds should be released for the social & environmental welfare of the community in areas like drinking water, education, vocational training, skill development, electricity through non-conventional & renewable sources, health & family welfare, promotion of livelihood for economically weaker sections of society, community centres, hostels etc.
- A sum of 2% total CSR expense has been earmarked for monitoring of the projects under the CSR programmes by the Ports.
| Additional Information
About Corporate Social Responsibility:
- CSR is a concept that suggests that it is the responsibility of the corporations operating within society to contribute towards economic, social and environmental development that creates a positive impact on society at large.
- The Companies Act, 2013 is a landmark legislation that made India the first country to mandate and quantify CSR expenditure.
- The inclusion of CSR is an attempt by the government to engage the businesses with the national development agenda.
- Section 135(1) of the Act prescribes thresholds to identify companies which are required to constitute a CSR Committee – those, in the immediately preceding financial year of which:
- Net worth is Rs 500 Crore or more; or
- Turnover is Rs 1000 Crore or more; or
- Net profit amounts to Rs 5 Crore or more.
- As per the Companies (Amendment) Act, 2019,CSR is applicable to companies before completion of 3 financial years.
- Companies are required to spend, in every financial year, at least 2% of their average net profits generated during the 3 immediately preceding financial years.
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News Source: pib
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June 28, 2023